2024
2024
Annual Report
Annual Report
At ANZ, our purpose is to
shape a world where people
and communities thrive.
We bring our purpose to life through our
strategy: to improve the financial wellbeing
and sustainability of customers with
excellent services, tools and insights
In particular, we want to help customers:
Save for, buy and
own a liveable home
Start or buy and sustainably
grow their business
Move capital and goods around
the region and sustainably grow
their business
Contents
Overview
Our 2024 reporting suite
2024 performance snapshot
Chairman’s message
CEO’s message
2
3
4
6
Operating environment
8
Our operating environment
10
Our purpose and strategy
12
How we create value
14
About our business
16
Our approach to ESG
Our approach to climate change 17
Governance
Governance
Directors’ qualifications, experience
and special responsibilities
Company secretaries
qualifications and experience
Executive Committee
Risk management
Five year summary
Performance overview
Remuneration report
18
19
24
25
26
32
34
48
Directors’ report
Financial report
Shareholder information
Shareholder information -
unaudited
Important dates for
shareholders 2025
Contacts
Glossary
90
93
221
223
223
224
With a global presence across 29 markets,
ANZ helps Australian businesses big and
small succeed on the world stage.
Bulla, founded in 1910 and still owned by the same three founding
families, has been a long-standing corporate customer of ANZ, with a
relationship spanning over 40 years. ANZ is currently supporting Bulla’s
new manufacturing site in regional Victoria, from concept to execution,
helping the company meet the increasing demand for high-quality
dairy products both locally and across Asia.
Learn more about ANZ’s long-standing support of Bulla by
visiting anz.com.au/newsroom/news/2024/august/anz-
news-bulla-dairy-tony-fato/
2
Our 2024
reporting
suite
ANZ Group
Holdings Limited
ABN 16 659 510 791
2024 Full Year Results
Announcement
anz.com/results
2024 ANZGHL Annual Report
anz.com/annualreport
2024 Corporate
Governance Statement
anz.com/corporategovernance
2024 Climate-Related
Financial Disclosures
anz.com/annualreport
2024 Environment, Social and
Governance (ESG) Supplement
anz.com/annualreport
Australia and New Zealand
Banking Group Limited
ABN 11 005 357 522
2024 ANZBGL Annual Report
anz.com/annualreport
2024 September Quarter
APS 330 Pillar III Disclosure
anz.com/results
2024 United Kingdom
Disclosure and Transparency
Rules Submission (when released)
anz.com/results
Annual Report structure
The various elements of the Directors’ Report,
including the Operating and Financial Review,
are covered on pages 1 to 47. Commentary on
our performance overview contained on pages
34 to 47 references information reported in the
Financial Report pages 93 to 220.
The Remuneration Report on pages 48 to 89
and the Financial Report on pages 93 to 220
have been audited by KPMG.
This report covers all of ANZ Group Holdings
Limited’s operations worldwide over which,
unless otherwise stated, we had control
during the financial year 1 October 2023 to
30 September 2024. Monetary amounts in this
document are reported in Australian dollars,
unless otherwise stated.
Additional information
We produce a suite of reports to meet the
needs and requirements of a wide range of
stakeholders including shareholders,
customers, employees, regulators, non-
government organisations and the community.
We continue to evolve our disclosures, taking
into consideration stakeholder feedback,
legislation, guidelines and frameworks.
Our 2024 Corporate Governance Statement
discloses how we have complied with the ASX
Corporate Governance Council’s ‘Corporate
Governance Principles and Recommendations
– 4th edition’ and is available at anz.com/
corporategovernance.
Our 2024 ESG Supplement provides
stakeholders with detailed ESG disclosures,
including performance against our ESG
targets and our management of material
ESG issues.
Our 2024 ESG Data and Frameworks Pack,
supplements the above reports, including a
summary of our progress on key ESG metrics,
comparative performance data and how we
have reported against international ESG
standards and frameworks.
Our 2024 Climate-related Financial
Disclosures describes progress towards
implementing our Climate Change
Commitment and how we have been
supporting our customers to date. This lays
the foundation for us to deliver on our five-year
Climate and Environment Strategy approved in
October 2024 to support an effective and
orderly transition in coming years.
See pages 16-17 for more on our approach
to ESG and climate change.
We are continually seeking to improve our
reporting suite and welcome feedback on
this report. Please address any questions,
comments or suggestions to
investor.relations@anz.com.
Disclaimer & important notices
The material in this report contains general
background information about the Group’s
activities current as at 7th November 2024.
It is information given in summary form and
does not purport to be complete. It is not
intended to be and should not be relied upon
as advice to investors or potential investors,
and does not take into account the investment
objectives, financial situation or needs of any
particular investor. These should be
considered, with or without professional advice,
when deciding if an investment is appropriate.
Forward-looking statements
This report may contain forward-looking
statements or opinions including statements
regarding our intent, belief or current
expectations with respect to the Group’s
business operations, market conditions,
results of operations and financial condition,
capital adequacy, sustainability objectives or
targets, specific provisions and risk
management practices. Those matters are
subject to risks and uncertainties that could
cause the actual results and financial position
of the Group to differ materially from the
information presented herein. When used in
the report, the words ‘forecast’, ‘estimate’,
‘goal’, ‘target’, ‘indicator’, ‘plan’, ‘pathway’,
‘ambition’, ‘modelling’, ‘project’, ‘intend’,
‘anticipate’, ‘believe’, ‘expect’, ‘may’,
‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’,
‘should’ and similar expressions, as they relate
to the Group and its management, are
intended to identify forward-looking
statements or opinions. There can be no
assurance that actual outcomes will not
differ materially from any forward-looking
statements or opinions contained herein. Also
see the Risk management section on pages
26-31 in relation to risks that may affect
forward-looking statements, and the `Key
Judgements and Estimates’ identified in
various places in the Annual Report.
Those statements are usually predictive in
character; or may be affected by inaccurate
assumptions or unknown risks and
uncertainties or may differ materially from
results ultimately achieved. As such, these
statements should not be relied upon when
making investment decisions. These
statements only speak as at the date of
publication and no representation is made as
to their correctness on or after this date. No
member of the Group undertakes any
obligation to publicly release the result of any
revisions to these forward-looking statements
to reflect events or circumstances after the
date hereof to reflect the occurrence of
unanticipated events.
Climate-related information
This report also contains climate-related
statements. Those statements should be read
with the important notices in relation to the
uncertainties, challenges and risks associated
with climate-related information in our 2024
Climate-related Financial Disclosures available
at anz.com/annualreport.
ANZ 2024 Annual Report Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
3
2024 performance snapshot
Financial performance highlights
$6,535m
Statutory profit¹,
-8%)
(
$6,725m
Cash profit2,
-9%)
(
9.7%
224.3c
Cash return on equity2,
-131bps)
(
Cash earnings per share
(Basic)2, (
-23c)
166c
$21.60
12.2%
Total dividend per share
for 2024, (
-5%)
Net tangible assets
per share3, (
-0.8%)
Common Equity Tier 1
Capital4, (
-114bps)
Our stakeholders
500k
Shareholders
42.4k
Employees (FTE)5
38.8%
Women in leadership7
>10m
Customers
~$38.9b
Funded and facilitated in
social and environmental
activities8
$715b
Customer deposits
84%
Staff engagement
score6
$807b
Gross loans and
advances
27%
1 Year total
shareholder return
More than
$134m
In community investments
More than
122k
participants in our financial
education programs9
1. Statutory profit attributable to shareholders of the Company. 2. On a cash profit basis. Excludes non-core items included in statutory profit and is provided to assist readers in
understanding the result of the ongoing business activities of the Group. For further information on adjustments between statutory and cash profit refer to page 35. 3. Equals
total shareholders’ equity less total non-controlling interests, goodwill and other intangible assets divided by the number of ordinary shares. 4. APRA Level 2. 5. Number of
employees (Full Time Equivalent). 6. Includes employees and contingent workers. 7. Measures proportion of women out of the entire Senior Manager, Executive, Senior Executive
and Group Executive Committee populations (roles within ANZ designated as Groups 3, 2 and 1 respectively). Includes all employees regardless of leave status but not
contractors (which are included in FTE). 8. Target to fund and facilitate at least $100 billion by end 2030 in social and environmental through customer transactions and direct
investments by ANZ, commenced 1 April 2023. 9. Includes individuals who have participated in more than one program (for example, people who have participated in
MoneyMinded as part of Saver Plus are counted twice as they are included in both the MoneyMinded and Saver Plus totals).
4
ANZ 2024 Annual Report
Chairman’s
message
Paul O’Sullivan
Chairman
In a year of global uncertainty and
challenging conditions for Australia
there was significant downward
pressure on industry profitability.
Despite these challenges, our full-year
statutory profit of $6.5 billion was 8%
less than last year’s record financial
performance and the second strongest
revenue outcome on record. Along with
financial risk being well managed, this
year’s cash profit was the next highest for
ANZ since 2017. We also achieved a total
shareholder return of 27% this financial
year, resulting in a return of approximately
50% across the last two financial years.
Our performance was driven by a solid
performance in our core banking
businesses, reinforcing the benefits of
our diversified portfolio. Furthermore, our
strong capital position, along with the
successful sale of our stake in AmBank,
enabled us to reduce our share count by
over 30 million through $883 million of
our ongoing $2 billion share buyback.
The significance of the year was
highlighted by our successful acquisition
of Suncorp Bank. This acquisition
reshapes our presence and scale in the
fast-growing Queensland market, and
along with the progress of our new
banking platform in Australia, ANZ Plus,
the bank is well positioned for the future.
As a result of our performance, your
Board was pleased to declare a total
dividend of 166 cents per share, which
was down 5% on 2023, meaning
more than $4.9 billion will be returned
to you, our shareholders.
The final dividend was partially franked
which reflects the shape of our portfolio
and percentage of ANZ’s profit generated
outside of Australia.
While we are pleased with the returns
provided to shareholders, we have also
made a meaningful contribution
throughout the year to customers and
the community. We are proud of this work,
which is covered in our Chief Executive’s
letter on the following pages.
Capital
The global economy passed through
the most sustained cycle of rising interest
rates in decades. While deep recessions
have not been apparent, inflation
challenges persist with many customers
and businesses confronting higher costs.
Against this backdrop, ANZ is well
prepared with sound levels of credit
provision, capital, liquidity and funding.
While the number of customers in
hardship remains relatively low, our
financial position allows us to stand
ready to help customers in need.
In the first half of the year, the Board
approved an on-market share buyback
of up to $2 billion – one of our largest ever
capital management exercises – reflecting
our strong capital position.
We continued to protect and strengthen
the balance sheet with your bank
remaining among the best capitalised
banks in the world. ANZ’s Common Equity
Tier 1 Ratio was 12.2%.
Non-financial Risk
While the bank has a track record
of prudently managing financial risk,
we are still building capability in the
management of non-financial risk (NFR).
This has been emphasised by the
Australian Prudential Regulation
Authority (APRA) requiring ANZ to hold
an additional operational risk capital
overlay, due to concerns about our
progress in this space, including issues
within our Markets business.
We have made progress in the delivery
of our NFR program, I.AM Amplified,
however it is clear there is more to do
and ongoing vigilance is required.
This will continue to be a significant
focus in 2025. The actions we are taking
on NFR are outlined in Box 1, while the
Board’s response on the specific matters
arising within the Markets business is
covered in Box 2.
As shareholders would expect, the Board
has also taken these matters into account
when assessing the performance of our
Chief Executive Officer, Shayne Elliott,
and the executive team this year.
While there has been no finding of any
direct accountability for members of the
Executive Committee, as CEO, Shayne is
ultimately responsible for all aspects of
the Bank’s performance.
This is why the Board applied its
discretion and assessed Shayne’s
performance to be below target and
determined the appropriate 2024 Short
Term Variable Remuneration (STVR)
outcome was 65% of target opportunity
(52% of maximum opportunity).
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
5
In addition, the Board considered it
appropriate to hold the Executive
Committee collectively accountable for
the issues relating to NFR and this has
been reflected in their final outcomes.
More details of the Board’s actions are
outlined in the Remuneration Report.
Board Renewal
There has been ongoing renewal of
our Board in recent times with a particular
focus on appointing Non-Executive
Directors with experience in financial
services. This has been particularly
beneficial as we have managed the
NFR and Markets issues.
In February, Richard Gibb joined the
Group Board, while John Cincotta was
appointed a Non-Executive Director of
the Banking Group.
Before joining ANZ’s board, Richard was
Chief Executive of Credit Suisse Australia
and previously held senior global roles at
Deutsche Bank and Merrill Lynch. John,
who was one of the founders of Barrenjoey
Capital Partners had a long career at
Deutsche Bank Australia and New Zealand.
Then in March we welcomed the Chair
of ANZ New Zealand, Scott St John, to the
Group Board as a Non-Executive Director.
Scott has served on our New Zealand
Board since 2021. Scott currently chairs
Mercury NZ Limited and was formerly the
CEO of First NZ Capital (now Jarden) and
Chair of Fisher and Paykel Healthcare.
This year Sir John Key retired from
ANZ having served as both a Non-
Executive Director for the Group and
Chairman of ANZ New Zealand since
2018. Sir John made an enormous
contribution with his unparalleled
international business and political
experience playing a critical role in our
ongoing success. As a Board, we will miss
his wise counsel and global insights and
we wish him the very best for the future.
In closing, I would like to acknowledge the
many thousands of ANZ employees who
come to work every day to do their best
for their customers and colleagues as we
continue to build a bank that benefits all
our stakeholders.
Paul O’Sullivan
Chairman
Box 1: Non-Financial Risk Management at ANZ
Following the Royal Commission, ANZ commenced a major program to
strengthen NFR management across the Bank, including greater
standardisation of risk tolerance, processes and reporting. In practice,
NFR refers to the risks that we face from managing our operations, our
processes and systems as well as how we conduct ourselves.
In 2022 the ANZ Board elevated its review of progress and accountability
for the NFR program. At the time, steps included reinforcing the Executive
Committee’s accountability and upgrading the technology platform
underpinning the new program. The Board also appointed an independent
external expert to monitor and report on progress.
As of late 2023-24, the program was making good progress and meeting
key milestones, while staff using the new systems were reporting an improved
NFR capability.
However, events associated with the Markets business in the Institutional
Division (see box 2) highlighted the need for an ongoing uplift in ANZ’s NFR
processes and drew a response from APRA including a risk capital overlay.
In addition to ensuring delivery of the existing NFR program, the Board is also
requiring further focus from Management on strengthening risk culture and
embedding the new NFR processes across the bank.
The Board considers the final delivery of the NFR program, combined with the
additional focus on embedding NFR controls, will provide the required outcome.
We will continue to report on our progress to shareholders and regulators.
Box 2: Institutional Division, Markets Issues
During the year, concerns were raised regarding an Australian Government
bond issuance in 2023 where ANZ was the Duration Manager and a Joint Lead
Manager. There were also conduct and data issues identified within our
Markets business.
The Board has direct oversight of the issue and taken a number of actions,
including:
• Assessing reports from independent experts in financial markets appointed
to analyse trading activity.
• Engaging external legal advisors, independent of Management, to ensure
rigorous and thorough outcomes from the expert reviews.
• Establishing a sub-committee of directors with relevant experience, chaired
by me, to evaluate and test technical issues on ongoing basis.
• Commissioning Oliver Wyman, in consultation with APRA, to undertake
a thorough independent review of culture and controls within the
Markets business.
While some of these reviews remain ongoing, the Board has ensured
accountability and consequences are enforced where relevant, particularly
for the conduct and data matters. Consequences for the Executive Committee
are detailed in the Remuneration Report and include:
• A reduction in the Risk Modifier which reduced the outcome of the Group
Scorecard and impacted variable remuneration for all employees.
• Collective accountability for the entire Executive Committee regarding NFR
matters, resulting in a reduction in 2024 STVR and a reduction in 2025 Long
Term Variable Remuneration (LTVR) restricted rights to be granted in
November/December 2024.
• An additional STVR impact for Executives with greater overall accountability
for the Markets and NFR matters.
Given the Australian Securities and Investments Commission’s (ASIC) review of
these matters is ongoing, the Board has the discretion to freeze or reduce future
vesting of equity to accountable Executives and is satisfied that the quantum of
outstanding equity is sufficient.
6
CEO’s
message
Shayne Elliott
Chief Executive Officer
Our focus now is to drive value from
the acquisition, combining the best of
ANZ and Suncorp Bank to create one
bank that’s better together for
customers, colleagues, shareholders
and the community.
The Bank we’re Building
Throughout the year, we continued
to deliver propositions to support
our customers built on resilient, agile
platforms which can innovate at pace.
These platforms provide the
underlying technology infrastructure
that drives the business.
This was possible due to the
investment of about $2.5 billion over
the past five years to improve our
technical capabilities and capacity
to speed up delivery. This provides
more seamless and secure banking
experiences that deliver better
customer outcomes and ultimately
grow market share and profitability.
This includes ANZ Plus, which we
believe is the most engaging,
contemporary and easy to use retail
banking platform in Australia. ANZ
Plus customer numbers grew 85%
through the year to nearly 850,000,
and deposits grew 70% to almost
$16 billion.
Nearly one in five of our active retail
customers now call ANZ Plus home.
We continue to acquire around 30,000
customers onto the ANZ Plus platform
every month and pleasingly, 48% of
customers who joined ANZ Plus in
FY24 were new to ANZ.
After a record performance in 2023,
this year was another pivotal year for
our company.
The Bank We Bought –
Suncorp Bank
We completed the successful acquisition
of Suncorp Bank, setting us up for future
success. We also achieved strong results
from our core banking business and saw
emerging benefits from our investments in
key customer platforms – ANZ Plus and
Transactive Global.
Our results demonstrate the benefits
of multiple years of simplification,
strengthening of the balance sheet and
targeted investment into market-leading
platforms which better support our
customers, while producing sustainable
returns for our shareholders and
positioning us well for the future.
As the Chairman has covered extensively,
this year issues arose in our Markets
business, which have been extremely
disappointing as they are contrary to our
requirements and the standards we have
set for ourselves.
This has reinforced how critical it is
to ensure we have an engaged and
purpose-led culture across ANZ. While our
employee engagement score remained
industry leading in 2024, I acknowledge
there is always more to be done to embed
a strong speak-up culture with a deep
understanding of non-financial risk.
As CEO of ANZ, this is a key priority.
On 1 August 2024, we welcomed
approximately 3,000 Suncorp Bank
employees, 1.2 million customers and
$54.6 billion of deposits into the ANZ family.
The quality of the business is already
exceeding our expectations.
In the two years since announcing the
acquisition, Suncorp Bank’s customer
numbers, home lending and deposits
have all grown.
As we learn more about the quality of
Suncorp Bank’s business, people and
assets, we are increasingly confident
that we are well placed to deliver more
synergies than expected, faster than
initially planned. We will share more
detail of our aspirations at our first half
results in 2025.
We have always positioned our
acquisition of Suncorp Bank as a platform
for growth in Queensland and that is why
we were happy to make commitments
to the Queensland Government with
regards to lending and jobs.
We have already demonstrated
momentum in meeting these
commitments, with recent
announcements including financing
for Queensland’s largest affordable
housing project for seniors and people
with disability.
We are establishing a new technology
hub in Brisbane focused on digital,
cloud and data capability, which will
employ more than 700 people over the
next five years.
ANZ 2024 Annual Report Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
7
In line with our strategy to improve
the financial wellbeing of customers,
almost half of all ANZ Plus customers
are using a financial wellbeing feature
such as round-ups, and more than a
third have set and are actively working
towards a savings goal.
Another great example of how the
technology ANZ Plus is built on allows
us to launch market-first features
safely, quickly and at low cost, was the
launch of MyAccounts. This was the
first time a major Australian bank has
leveraged open banking technology to
give customers a consolidated view of
their eligible accounts across different
Australian financial institutions.
Other recent new ANZ Plus features
include the introduction of joint
accounts, home loan offsets and the
ability to import billers and payees
from our existing ANZ app.
We also integrated more partnerships
into the ANZ Plus app: Qantas
Frequent Flyer points, which was an
Australian first, and Cashrewards,
our 100%-owned, leading cashback
provider in Australia. This comes at
a time when many customers are
looking to make their dollar go further.
These features enhance our customers’
experience while also helping lay the
foundations to make it easier and safer
to migrate our existing customers to
ANZ Plus, starting in 2025.
We have also invested significantly
in the Institutional business, in
particular our payments and cash
management platform, Transactive
Global, which supports institutional
and commercial customers with
advanced transaction banking
services, including to help them
manage and move money globally.
This positioned us to be at the
forefront of innovation including PayTo
real-time payments services, while
also piloting real-time cross-border
payments into Australia.
As a result, Coalition Greenwich
ranked ANZ #1 in Transaction Banking
product development and innovation
in Australia this year, and we were
named Best Bank for Payments
globally by Global Finance Magazine.
Our Institutional Division now
generates much of its income from
low-risk processing businesses, and in
2024 achieved record revenue, record
profit before provisions, and record
return on equity.
Supporting our customers
Our platforms, ANZ Plus and Transactive
Global, not only improve our customers’
experience and reduce costs, they also
help protect our customers from scams
and fraud.
ANZ Plus has introduced a raft of scam
safe features including screen share
protection from scammers, location-
based security, risky-app detection,
crypto limits and the use of technology
to help detect if customers are being
coached from scammers.
In addition, we have increased
personalised internet banking warning
messages when activity is considered
high risk and introduced a new Scam
Scoring model which uses Artificial
Intelligence to complement our security
systems and boost scam detection.
Combined with increased education
and resources – including a new team of
dedicated fraud and scam specialists –
these measures are having an impact. In
2024, our people and systems stopped
more than $140 million being sent to
criminals.
Helping customers who may be facing
financial difficulty as early as possible is
another key priority.
In Australia, while customers can reach
out to us if they need help, we also
proactively check in via SMS with
hundreds of customers a month who
are potentially facing financial hardship.
In line with the broader economic
environment, the number of Australian
home loan and small business customers
in hardship has risen over the past year.
However, this is off an historically low
base and the overall data suggests that
in aggregate, customers are holding up
better than originally expected. That said,
where customers are in difficulty we will
work with them to find a solution tailored
to their situation.
Supporting the community
Supporting our communities is core to our
purpose, which is to shape a world where
people and communities thrive.
Our financial education and matched
savings program, Saver Plus, celebrated
its 21st birthday this year, making it the
largest and longest running program of
its kind in the world. The program was
developed alongside Brotherhood of
St Laurence and is delivered in partnership
with Berry Street and The Smith Family,
with funding support from the Australian
Government and ANZ.
In that time, more than 62,000 participants
have built lifelong savings habits while
saving more than $31 million. Over the
same period, ANZ has provided more than
$26 million in matched funds.
This program has been life changing
for many, with the vast majority of those
taking part still saving more than seven
years after completion, while their total
assets have increased.
Likewise, our flagship financial education
program MoneyMinded, which supports
adults on lower incomes to build their
financial skills, knowledge and confidence,
also continues to flourish. Over a million
people have taken part since 2002
across Australia, Asia, the Pacific and
New Zealand.
Our outlook and priorities
Looking ahead, we will remain focused
on running the bank well. This will be
driven by our purpose and focused on
delivering good customer outcomes, as
well as strengthening risk management
and providing consistent financial returns
to shareholders.
We will continue to simplify our business
to focus on two key platforms, ANZ Plus
and Transactive Global. This will help us
better serve our customers, manage
costs, improve productivity and unlock
further benefits of simplification.
We will also leverage Generative AI to
increase productivity and deliver better
tools to support our people and
customers, including through our new
AI Immersion Centre launched in
partnership with Microsoft earlier this year.
As I look ahead, I am confident our
diversified portfolio, unique global
network, and fortress balance sheet
mean we are well positioned to continue
to deliver for our shareholders, our
people and our community.
Finally, I thank the team at ANZ for
their commitment to supporting our
customers, which has helped drive
these positive results.
Shayne Elliott
Chief Executive Officer
z
8
Our operating environment
A range of influences
characterise the
current operating
environment.
Economies have coped relatively
well with the sharp increases in
interest rates over 2022 and 2023.
Economic activity has slowed, but
recessions have been rare and
shallow. Unemployment in Australia
and New Zealand has only
modestly increased.
The cumulative impact of rising prices and
higher interest rates is sustaining cost of
living pressures for consumers, but
household balance sheets, in aggregate,
are sturdy. Investment plans are generally
robust, but resource availability is a
challenge, not least because of similar
wants across economies. Industrial policy
has become more common, including in
Australia, and is likely to reshape the
structure of economic activity over time
as governments address perceived
supply chain vulnerabilities and prioritise
domestic resilience.
China’s economy is operating on a
different cycle. Growth has moderated
as the economy adjusts to an ageing
demographic and the demand mix
changes. Trade is still growing despite
geopolitical complexities. High commodity
prices are sustaining exports from
Australia and New Zealand. Asian exports
have had a particularly strong year, backed
by renewed strength in technology trade.
The climate transition remains a subtext
to many of these developments. Resource
access challenges feature here as well,
as many economies strive to invest in
renewable energy, building retrofits and
more climate-friendly transport.
ANZ 2024 Annual Report Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
99
z
Economic outlook
Growth has slowed, but many central
banks have begun to reduce interest rates.
Inflation has proven to be slightly stickier
in Australia than elsewhere. Australia,
therefore, is likely to follow with a modest
easing cycle of its own, but not until 2025.
Easing cycles are likely to only partially
reverse the sharp interest rate rises of
recent years.
Private sector balance sheets, in general,
are in solid shape, suggesting lower
interest rates are likely to generate
economic traction without needing to be
too vigorous. The supply side of many
economies remains challenged by
influences including ageing workforces,
housing constraints, and the influence of
geopolitics and industry policy on supply
chains. This is also encouraging more
sustained government spending than has
been the case in previous cycles.
Policy in China has been gradually
responding to reduce the risks of a
sharper slowdown. Excessively low
inflation has been the primary
macroeconomic challenge. Further
easing is likely as China adjusts to softer
structural drivers of demand. An ageing
demographic suggests a shift in the mix
of activity over time, including in the
commodity sector. These shifts are likely
to have some permanence.
Challenges
Examples of how we’re responding
Inflationary pressures
and higher interest rates
Public and regulatory scrutiny
Competitive
banking industry
Cybersecurity threats
Geopolitical tension
Climate change and nature1
• Assessing borrowers’ resilience to
rising interest rates
• Focusing on cost management and
delivering ongoing productivity
benefits, including from technology
simplification
• Being transparent about how we
are addressing regulatory and
political concerns
• Working cooperatively with
regulators, government and non-
governmental organisations (NGOs)
• Operating a diverse business,
continuing to invest and prioritise
resources across Retail, Commercial
and Institutional segments
• Deploying new and improved digital
services, products and processes to
help meet customer needs for
efficient and accessible banking
• Dealing appropriately with customers
experiencing financial hardship or in
need of extra care
• Adjusting our staff salaries appropriately
• Continuing to evolve our ESG policies
and processes, seek to implement them
effectively and transparently disclose
our progress
• Investing in underlying technology and
systems to establish more flexible and
responsive platforms (including ANZ Plus
and Institutional Payments and Cash
Management Platforms)
• Ongoing investment in cybersecurity,
fraud and scams detection capabilities
• Increasing customer awareness and
education as to the relevant risks
• Contingency plans for our medium-to-
higher risk jurisdictions with trigger
events identified and monitored
• Continuing to review our international
network and operations
• Elevating climate to a Material Risk
• Supporting our customers’ transition
in November 2023
• Our Board approving our Group wide
Climate and Environment Strategy in
October 2024
through banking and finance products
and services, such as sustainability-
linked loans and ESG-format bonds,
that help drive the transition to a low
carbon economy
1. Refer to our 2024 Climate-related disclosures report for more information and for glossary of terms available at anz.com/esgreport.
10
Our purpose and strategy
Our purpose is to shape
a world where people and
communities thrive. It
explains ‘why’ we exist and
drives everything we do at
ANZ, including the choices
we make each day about
those we serve and how
we operate.
Through our purpose we have elevated three areas facing significant
societal challenges aligned with our strategy and our reach, which
include commitments to:
Improving the financial wellbeing of our people, customers and
communities by helping them make the most of their money
throughout their lives;
Supporting household, business and financial practices that improve
environmental sustainability; and
Improving the availability of suitable and affordable housing options
for all Australians and New Zealanders.
We bring our purpose to life through our strategy: to improve the financial wellbeing and
sustainability of customers through excellent services, tools and insights that engage and retain
them, and help positively change their behaviour.
In particular, we want to help customers:
Save for, buy and
own a liveable home
Start or buy and sustainably
grow their business
Move capital and goods around
the region and sustainably grow
their business
Our aspiration is to build a simpler, better, more purpose-driven
bank, through:
purpose-led propositions and
partnerships that improve financial
wellbeing, access to housing and
sustainability for our target segments
automated business-services
supported by modern, cloud-
based technology that is more
open, efficient, resilient and
compliant
an agile operating model that
encourages innovation and makes it
easier for our people to deliver value
for our customers quickly
disciplined allocation of resources,
enhanced delivery capabilities,
and an alignment of systems
and incentives.
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1111
Our values
Our values are: I.C.A.R.E
Our values shape how we deliver our
purpose-led strategy. They are the
foundation of ‘how’ we work – living
our values every day enables us to
deliver on our strategy and purpose,
strengthen stakeholder relationships
and earn the community’s trust. All
employees and contractors must
comply with our Code of Conduct,
which sets down the expected
standards of professional behaviour
and guides us in applying our values.
Integrity
We are honest and fair by speaking openly
and transparently, making thoughtful and
balanced decisions, doing what’s right and
acting with courage.
Collaboration
We work together for the customer, by getting
the right people together to get the job done
and helping each other.
Accountability
We take ownership and get things done – we do
what we say we will do – find the solutions by
testing and learning and act with determination.
Respect
Excellence
We care for all those we serve. We value
difference and encourage everyone to have a
voice, think and act with consideration for our
customers, community and the environment.
We challenge ourselves to be better. This is done
by making things simple, finding ways to work
differently, using data to improve and asking for
as well as acting on feedback.
12
How we create value
We create value for our stakeholders
through the ‘Bank We’re Building’,
developing propositions our customers
love, with easy-to-use products and
services that evolve to meet their
changing needs.
We differentiate through our global
network, thought leadership, and
diversified retail, commercial and
institutional customer businesses.
Our customer propositions are
enabled through our people and
our technology, data and risk
management:
Purpose and values-led people who drive value by caring about our customers
and the outcomes we create.
Flexible and resilient digital banking platforms powering our customers and made
available for others to power the industry.
Risk management framework and culture, establishing, overseeing and
influencing how risk is considered in decision making.
Supported by our balance sheet
strength, our partnerships and
reputation:
Partnerships that unlock new value with ecosystems that help customers further
improve their financial wellbeing and sustainability.
Strong balance sheet positions with access to capital, funding and liquidity to protect
and grow our business.
Reputation underpinned by trusted relationships with customers we choose to bank,
our business partners and the community to strengthen our brand and reputation.
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Strategy &
business
model
Better access
to capital and talent,
driving greater
capacity to
invest well
Better customer
propositions that
are purposeful,
engaging, efficient
and safe
Better financial
outcomes for
shareholders
and staff
Better acquisition
and retention
rates, and higher
share of target
customers
Our customers will have
relatively better financial
wellbeing, more sustainable
practices and generate
higher average
lifetime value
Better financial
wellbeing and
sustainability
outcomes for
customers and
the community
Better reputation
among customers
and the community,
and higher workforce
engagement
Better data,
insights, risk
decisions
and pricing
Better customer
engagement, and
greater use of our
products and
services
Aiming to create value for our stakeholders
Transformation outcomes
More targeted
We support more of our chosen customers to achieve
their goals, by using data to understand their needs.
More engaged
We improve our customers’ financial wellbeing and
sustainability by connecting with them and providing
valued solutions that meet their needs.
More efficient
We serve our customers more efficiently to save
them money and time by simplifying and automating
our processes.
Better protected
We reduce the risk of doing business for our customers
and for the bank, with systems that are less complex,
less prone to error and more secure.
More dynamic
We respond more rapidly to the evolving environment,
with adaptable people, systems and processes.
Our customers
will have relatively better financial
wellbeing.
Our employees
will be more engaged and with better
tools to support customers.
Our shareholders
will be rewarded with stronger long-term
financial results (in terms of sustainable
economic profits).
Our community
will benefit from our financial contribution
(including taxes), practices and services,
contributing to positive economic
development.
14
About our business
We operate across a diverse business structure
Australia Retail
Provides a full range of banking services to Australian consumers. This includes Home Loans, Deposits,
Credit Cards and Personal Loans. Products and services are provided via the branch network, home loan
specialists, contact centres, a variety of self-service channels (digital and internet banking, website,
ATMs and phone banking) and third-party brokers.
Australia
Commercial
Institutional
Provides a full range of banking products and financial services, including asset financing, across
the following customer segments: SME Banking (small business owners and medium commercial
customers), and Diversified & Specialist Businesses (large commercial customers, and high net worth
individuals and family groups).
The Institutional division services global institutional and corporate customers, and governments
across Australia, New Zealand and International (including Papua New Guinea (PNG)) via the following
business units:
• Transaction Banking provides customers with working capital and liquidity solutions including
documentary trade, supply chain financing, commodity financing as well as cash management
solutions, deposits, payments and clearing.
• Corporate Finance provides customers with loan products, loan syndication, specialised loan
structuring and execution, project and export finance, debt structuring and acquisition finance, and
sustainable finance solutions.
• Markets provides customers with risk management services in foreign exchange, interest rates, credit,
commodities, and debt capital markets in addition to managing the Group’s interest rate exposure and
liquidity position.
New Zealand
The New Zealand division comprises the following business units:
• Personal provides a full range of banking and wealth management services to consumer and private
banking customers. We deliver our services via our internet and app-based digital solutions and a
network of branches, mortgage specialists, private bankers and contact centres.
• Business & Agri provides a full range of banking services through our digital, branch and contact
centre channels, and traditional relationship banking and sophisticated financial solutions through
dedicated managers. These cover privately owned small, medium and large enterprises, the
agricultural business segment, government and government-related entities.
Suncorp
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding
company of Suncorp Bank. The transaction was undertaken to accelerate the growth of the Group’s
retail and commercial businesses while also improving the geographic balance of its business
in Australia.
The 2024 reported results include two months’ results for Suncorp Bank from the date of acquisition,
presented as Suncorp Bank division.
The Suncorp Bank division provides banking and related services to retail, commercial, small and
medium enterprises and agribusiness customers in Australia.
Pacific
The Pacific division provides products and services to retail and commercial customers (including
multi-nationals) and to governments located in the Pacific region, excluding PNG which forms part of
the Institutional division.
Group Centre
Provides support to the operating divisions, including technology, property, risk management, financial
management, treasury, strategy, marketing, human resources, corporate affairs, and shareholder
functions. It also includes minority investments in Asia and interests in the ANZ Non-Bank Group.
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1515
50 years in Singapore
Singapore is Australia’s largest
two-way trading partner and investor
in Southeast Asia. It is Australia’s fifth
largest trading partner ($52.9 billion in
recent years) and fifth largest source
of foreign direct investment ($148.6
billion in 2022). As we mark 50 years
in Singapore, it will not only underline
the country’s importance to our
strategy – but also as a crucial
investment and trading partner for
the whole country.
Read the full story at bluenotes.anz.
com/posts/2024/may/anz-news-
shayne-elliott-singapore-champion
Our international presence and profit composition by geography1
International
$1,082 million
Australia
$3,536 million
New Zealand
$2,107 million
International
Asia
China
Hong Kong
India
Indonesia
Japan
Laos
Malaysia
Pacific
Cook Islands
Fiji
Kiribati
Papua New Guinea
Samoa
Europe
Middle East
Solomon Islands
Timor–Leste
Tonga
Vanuatu
France
Germany
United Kingdom
United Arab
Emirates (Dubai)
United States
of America
The Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
1. On a cash profit basis. Excludes non-core items included in statutory profit. It is provided to assist readers in understanding the result of the ongoing business activities of the Group.
For further information on adjustments between statutory and cash profit refer to page 35.
16
Our approach to ESG
Each year we conduct a materiality assessment where we engage with internal and
external stakeholders to identify and assess our most material ESG issues. The results
help inform our business practices – including Group Performance Framework – ESG
targets and the coverage given to key topics in our external reporting.
What matters most to our stakeholders
We’re continuing to bring our purpose to life through our focus on complex issues that are important
to society and our business strategy.
Environmental sustainability remains
one of the highest priority issues
identified by our stakeholders, in
terms of both risks and opportunities.
Financial wellbeing continues to
be a key issue in light of current
economic conditions.
Housing was also identified by many
of our stakeholders as of particular
importance, noting the challenges
associated with the cost of living and
housing affordability and availability
in Australia and New Zealand.
Our materiality assessment this year also highlighted the ongoing importance of three other issues:
Ethics, conduct and culture
was again raised in stakeholder
discussions this year. It includes
meeting expected standards
of behaviour.
Information security, encompassing
cyber security and financial crime,
remains a top order issue, including
due to continuing customer losses
to scams.
Responsible customer engagement
covering the need for ANZ, in
particular in challenging economic
conditions, to provide fair, accessible
and affordable products, as well as
customer support, including for those
in financial hardship.
Detailed information on our approach to ESG governance and risk management, our
approach to the identification and prioritisation of our material ESG issues, and
performance against our ESG targets, can be found in our 2024 ESG Supplement. Our
2024 ESG Data and Frameworks Pack also provides a summary of our progress on key
ESG metrics, comparative performance data and how we have reported against
international ESG standards and frameworks during the year.
Our ESG reporting suite, which
includes our 2024 Climate-related
Financial Disclosures, is available at
anz.com/esgreport
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17
Our approach to climate change
Our five-year Climate and
Environment Strategy was
approved by the Board in October
2024. It sets out our objective to
be a trusted partner for our
customers, supporting them to
adapt and become more resilient,
to a changing environment and
economy. In particular, we aim to
be a leading bank in supporting an
effective and orderly transition for
our large business customers.
To achieve our Climate and Environment
Strategy we have established three core
ambitions:
• Building our capability to help
customers understand climate and
nature risks;
• Transitioning our lending portfolio to
net zero financed emissions; and
• Supporting our customers’ transition
and resilience.
These ambitions will be supported by
each division having specific focus areas,
and prioritised divisional action plans that
we plan to implement commencing 2025.
In this year’s Climate-related Financial
Disclosures we set out how we have been
supporting our customers to date. This
lays the foundation for us to deliver on our
objective and support an effective and
orderly transition in coming years.
Our Climate Change Commitment
supports our ambition and will be
available at anz.com.au/climate-change
prior to our AGM.
Our 2024 Climate-related Financial
Disclosures, prepared in accordance
with the Task Force on Climate-related
Financial Disclosures recommendations
2021 (TCFD), is available at
anz.com/annualreport.
The report also contains important notices
about the uncertainties, challenges and
risks with climate-related statements that
may affect their usefulness, accuracy and
completeness. Those notices should be
taken into account when considering the
climate-related information in this report.
Climate and Environment Strategy
Purpose
Supporting household, business and financial practices that improve environmental sustainability
Objective
Vision
Ambition
Divisional
focus
areas
Action
pillars
Core
enablers
To be a trusted partner for our customers, supporting them to adapt and become more resilient,
to a changing environment and economy. In particular, we aim to be a leading bank in supporting
an effective and orderly transition for our large business customers
Financing a sustainable transition
Building our capability
to help customers understand
climate and nature risks
Transitioning our lending
portfolio to net zero financed
emissions
Supporting our customers’
transition and resilience
Institutional
Being a leading bank in
supporting customers to
transition, and growing
our low-emissions and
nature related
opportunities
Commercial
Delivering insights
and propositions to
support customers
to understand and
navigate the transition
Retail
Delivering targeted
education and
propositions to support
customers to adapt to
climate impacts
New Zealand
Supporting Aotearoa
New Zealand’s transition
to a low-emissions,
climate resilient
economy
Understanding risks
and opportunities
Building capability
and capacity
Driving customer
engagement
and propositions
Collaborating with
stakeholders to support
an economy wide
transition
Governance and Reporting
Data and Systems
People and Culture
18
Governance
Our strong governance framework provides
a solid structure for effective and responsible
decision-making within the organisation.
Information on the Group’s Board,
Board Committees, 2024 Board areas
of focus and governance framework
is contained in the 2024 Corporate
Governance Statement, available at
anz.com/corporategovernance
Directors’ meetings
The number of Board and Board Committee meetings held during the year and each Director’s attendance at those meetings
are set out below:
Board
A
B
Paul O’Sullivan
13
13
Ilana Atlas, AO2
5
5
Shayne Elliott
13
13
Risk
Committee
Audit
Committee
People &
Culture
Committee
A
8
B
8
A
7
2
B
7
2
A
6
2
B
6
2
7
7
6
6
5
5
Richard Gibb3
Jane Halton, AO
PSM
RT Hon Sir John Key,
GNZM AC4
Holly Kramer
13
13
7
7
13
13
John Macfarlane2
5
5
Christine O’Reilly
13
13
Jeff Smith
13
13
Scott St John5
6
6
3
6
2
8
8
4
2
5
2
8
8
4
6
6
4
4
6
6
6
6
2
7
2
7
Ethics,
Environment,
Social and
Governance
Committee
Digital
Business
and
Technology
Committee
Special
Committee
of the Board
Committee
of the
Board1
Nomination
and Board
Operations
Shares
Committee1
A
B
A
1
1
1
B
1
1
1
A
5
1
5
2
4
B
5
1
5
2
4
A
5
3
5
2
B
5
3
5
2
1
1
5
5
A
3
2
1
B
3
2
1
A
2
2
2
B
2
1
2
2
2
2
2
2
2
2
2
2
2
2
2
Column A Indicates the number of meetings the Director was eligible to attend as a member. Column B Indicates the number of meetings attended. With respect to Committee
meetings, the table above records attendance of Committee members. 1. The meetings of the Committee of the Board and Shares Committee as referred to in the table above include
those conducted by written resolution. 2. Ilana Atlas, AO and John Macfarlane ceased as Non-Executive Directors on 21 December 2023. 3. Richard Gibb commenced as a
Non-Executive Director on 15 February 2024. 4. RT Hon Sir John Key, GNZM AC ceased as a Non-Executive Director on 14 March 2024. 5. Scott St John commenced as a Non-
Executive Director on 25 March 2024.
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19
Directors’ qualifications, experience
and special responsibilities
As at the date of this report,
the Board comprises seven
Non-Executive Directors and
one Executive Director, the Chief
Executive Officer. The names of
the current Directors, together
with details of their qualifications,
experience and special
responsibilities are set out below.
Richard Gibb joined the Board on
15 February 2024 as a Non-Executive
Director and Scott St John joined the
Board on 25 March 2024 – Richard and
Scott will stand for election as a Director at
the Group’s AGM on 19 December 2024.
Ilana Atlas, AO and John Macfarlane each
ceased as a Director on 21 December
2023, both having served on the Board
since 2014. RT Hon Sir John Key, GNZM
AC ceased as a Director on 14 March
2024 having served on the Board since
2018. Each Director is also a member
of the Board of ANZBGL.
Each current Director became a
Director on 20 December 2022 (with the
exception of Holly Kramer, Richard Gibb
and Scott St John who joined the Board
after this date). Given ANZBGL was the
listed head entity of the Group until
January 2023, information is included
below on the date each Director became
a member of the Board of the listed head
entity of the Group.
Audit
Committee
Ethics, Environment,
Social and Governance
Committee
Risk
Committee
Digital Business
and Technology
Committee
Nomination and
Board Operations
Committee
People
& Culture
Committee
20
Paul O’Sullivan
Chairman, Independent
Non-Executive Director
Age 64 years
Residence Sydney, Australia
Chair
Member
Shayne Elliott
Chief Executive Officer and
Executive Director
Age 60 years
Residence Melbourne, Australia
QualificationsBA (Mod) Economics, Advanced Management Program of HarvardResponsibilitiesChairman since October 2020 and a Non-Executive Director since November 2019.Paul is an ex-officio member of all Board Committees and Chair of the Nomination and Board Operations Committee.CareerPaul has experience in the telecommunications and oil and gas sectors, both in Australia and overseas. He has held senior executive roles with Singapore Telecommunications (Singtel) and was previously the CEO of Optus. He has also held management roles with the Colonial Group and the Royal Dutch Shell Group in Canada, the Middle East, Australia and United Kingdom.Relevant other directorshipsChairman: Singtel Optus Pty Limited (from 2014, Director from 2004) and Western Sydney Airport Corporation (from 2017).Deputy Chairman: St Vincent’s Health Australia (from 2024, Director from 2019).Relevant former directorships held in last three years includeFormer Director: Coca-Cola Amatil (2017–2021) and Indara Digital Infrastructure (formerly Australian Tower Network Pty Ltd) (2021–2023).QualificationsBComResponsibilitiesChief Executive Officer and Executive Director since 1 January 2016.CareerShayne has over 30 years’ experience in banking in Australia and overseas, in all aspects of the industry. Shayne joined the Group as CEO Institutional in June 2009, and was appointed Chief Financial Officer in 2012.Prior to joining the Group, Shayne held senior executive roles at EFG Hermes, the largest investment bank in the Middle East, which included Chief Operating Officer.He started his career with Citibank New Zealand and worked with Citibank/ Citigroup for 20 years, holding various senior positions across the UK, USA, Egypt, Australia and Hong Kong.Shayne is a Director of the Financial Markets Foundation for Children and a member of the Australian Banking Association, the Business Council of Australia and the Australian Customs Advisory Board.Relevant other directorshipsDirector: ANZ Bank New Zealand Limited (from 2009), Norfina Limited (Suncorp Bank) (from 2024), the Financial Markets Foundation for Children (from 2016) and the Sydney Marae Alliance (from 2023).Member: Business Council of Australia (from 2016), the Australian Banking Association (from 2016, Chairman 2017–2019) and the Australian Customs Advisory Board (from 2020).ANZ 2024 Annual Report Overview
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Richard Gibb
Independent Non-Executive Director
Age 57 years
Residence Sydney, Australia
Chair
Member
Jane Halton, AO PSM
Independent Non-Executive Director
Age 64 years
Residence Canberra, Australia
Chair
Member
QualificationsBA (Hons) Psychology, FIPAA, Hon. FAAHMS, Hon. FACHSE, Hon. DLitt, FAIM, FAICD, FAIIAResponsibilitiesNon-Executive Director since October 2016. Jane is Chair of the Ethics, Environment, Social and Governance Committee and is a member of the People & Culture Committee, Digital Business and Technology Committee and Nomination and Board Operations Committee.CareerJane’s 33-year career in the public service includes the positions of Secretary of the Australian Department of Finance, Secretary of the Australian Department of Health, Secretary for the Department of Health and Ageing, and Executive Co-ordinator (Deputy Secretary) of the Department of the Prime Minister and Cabinet. She brings to the Board extensive experience in finance, insurance, risk management, information technology, human resources, health and ageing and public policy. She also has significant international experience.Jane has contributed extensively to community health through local and international organisations including the World Health Organisation and as co-chair of the COVAX coordination mechanism.Relevant other directorshipsChairman: Norfina Limited (Suncorp Bank) (from 2024), Executive Board of the Institute of Health Metrics and Evaluation at the University of Washington (from 2024, Member from 2007) and Coalition for Epidemic Preparedness Innovations (Norway) (from 2018, Member from 2016).Director: Clayton Utz (from 2017).Honorary Professor: Australian National University Research School of Psychology.Adjunct Professor: University of Sydney and University of Canberra.Relevant former directorships held in last three years includeFormer Chairman: Vault Systems (2017–2022) and Council on the Ageing Australia (2017–2024).Former Director: Crown Resorts Limited (2018–2022) and Naval Group Australia Pty Ltd (2021–2022).Former Member: National COVID-19 Commission Advisory Board (2020–2021).Former Council Member: Australian Strategic Policy Institute (2016–2023).QualificationsMcom, BEcResponsibilitiesNon-Executive Director since February 2024. Richard is Chair of the Risk Committee and a member of the Audit Committee, Digital Business and Technology Committee and Nomination and Board Operations Committee.CareerRichard has had a long and distinguished career in the financial services industry working for several major global banks.Richard’s most recent role was Chief Executive of Credit Suisse Australia from 2019 to 2024. Prior to that he held business leadership roles at Deutsche Bank in New York, London and Hong Kong. Previously he worked at Merrill Lynch for over a decade advising financial institution and financial sponsor clients.Relevant other directorshipsN/ARelevant former directorships held in last three years includeFormer Director: Credit Suisse (Australia) Limited (2019–2024). 22
Holly Kramer
Independent Non-Executive Director
Age 60 years
Residence Sydney, Australia
Chair
Member
Christine O’Reilly
Independent Non-Executive Director
Age 63 years
Residence Melbourne, Australia
Chair
Member
QualificationsBBusResponsibilitiesNon-Executive Director since November 2021. Christine is Chair of the Audit Committee and a member of the Risk Committee, People & Culture Committee and Nomination and Board Operations Committee.CareerChristine is a highly experienced non-executive director, having served on the board of a number of Australia’s leading companies. She has also held executive roles in the infrastructure and financial services industries. This includes as CEO of GasNet Australia and Co-Head of Unlisted Infrastructure Investments at Colonial First State Global Asset Management and follows an early career including investment banking and audit experience at Price Waterhouse.Relevant other directorshipsChairman: Australia Pacific Airports Corporation (from 2024).Director: Norfina Limited (Suncorp Bank) (from 2024), BHP Group Limited (from 2020) and Infrastructure Victoria (from 2023).Relevant former directorships held in last three years includeFormer Director: Medibank Private Limited (2014–2021), The Baker Heart & Diabetes Institute (2013–2023) and Stockland (2018–2024).QualificationsBA (Hons), MBAResponsibilitiesNon-Executive Director since August 2023. Holly is Chair of the People & Culture Committee and a member of the Ethics, Environment, Social and Governance Committee, Risk Committee and Nomination and Board Operations Committee.CareerHolly has extensive experience as a board director, having served on a wide range of major listed and unlisted boards in Australia and New Zealand and having chaired remuneration, sustainability and audit and risk committees. In her executive career, Holly was Chief Executive Officer of retailer Best & Less and served in a range of senior customer facing roles at Telstra, Ford and Pacific Brands.Holly brings a strong focus on people, customers and culture, as well as extensive experience in retail and digital channels.Relevant other directorshipsChairman: Susan McKinnon Foundation Advisory Board (from 2024).President: Federal Remuneration Tribunal (from 2024).Director: Woolworths Group Limited (from 2016) and Fonterra Co-operative Group Limited (from 2020).Member: Board Advisory Group, Bain & Company (from 2021).Senior Advisor: Pollination (from 2023).Relevant former directorships held in last three years includeFormer Chairman: Lendi Group (2020–2021).Former Director: Abacus Group Holdings (2018–2022) and Endeavour Group Limited (2021–2023).Former Pro Chancellor: Western Sydney University (2018–2024).ANZ 2024 Annual Report Overview
Operating
environment
Governance
Performance
overview
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23
Jeff Smith
Independent Non-Executive Director
Age 62 years
Residence USA
Chair
Member
Scott St John
Independent Non-Executive Director
Age 60 years
Residence New Zealand
Member
QualificationsBComResponsibilitiesNon-Executive Director since March 2024. Scott is a member of the Audit Committee, Risk Committee, Ethics, Environment, Social and Governance Committee and Nomination and Board Operations Committee.CareerScott has deep business experience, particularly in financial markets. Scott is a former long-term CEO of First NZ Capital (now Jarden), and is the Chair of Mercury NZ Limited and serves on the Board of the NEXT Foundation. He was Chancellor of the University of Auckland from 2017 to June 2021, having also been a member of the University Council from 2009. Scott was also a member of the Capital Markets Development Taskforce, the Financial Markets Authority Establishment Board and the Security Industry Association, which he chaired.Relevant other directorshipsChairman: ANZ Bank New Zealand Limited (from 2024, Director from 2021) and Mercury NZ Limited (from 2024, Director from 2017).Director: the NEXT Foundation (from 2017).Relevant former directorships held in last three years includeFormer Chairman: Fisher & Paykel Healthcare Corporation Limited (2020–2024, Director from 2015).Former Director: Fonterra Co-operative Group Limited (2016–2024).QualificationsBAppSc, MBAResponsibilitiesNon-Executive Director since August 2022. Jeff is Chair of the Digital Business and Technology Committee and a member of the Risk Committee, People & Culture Committee and Nomination and Board Operations Committee.CareerJeff is an experienced global business and technology executive, with over 30 years corporate experience which includes senior executive roles in a number of companies including Telstra, Honeywell and Toyota.Jeff was previously Chief Information Officer at IBM Corporation where he was globally responsible for IT strategy, resources, systems and infrastructure and also led the company’s Agile transformation.Jeff was also CEO of Suncorp Business Services and Suncorp Chief Information Officer, and Chief Operating Officer of World Fuel Services Corporation.Jeff also served on the Australian Fulbright Commission awarding Australian post- graduate scholarships to US universities.He was previously a member of ANZ’s International Technology and Digital Business Advisory Panel until 2019.Relevant other directorshipsDirector: ANZ Group Services Pty Ltd (from 2022), Sonrai Security Inc (from 2021) and Pexa Australia Limited (from 2023).Advisor: Zoom Video Communications, Inc (from 2018), Box, Inc. (from 2018) and World Fuel Services (from 2023). 24
ANZ 2024 Annual Report
Company Secretaries
qualifications and experience
Currently there are two people appointed as Company
Secretaries of the Company. Details of their roles are
contained in the Corporate Governance Statement.
Their qualifications and experience are as follows.
Ken AdamsPositionGroup General CounselQualificationsBA, LLB, LLMSimon PordagePositionCompany SecretaryQualificationsLLB (Hons), FGIA, FCG (CS, CGP)Ken joined the Group as Group General Counsel in August 2019, having assisted the Group with major legal issues for over 10 years. Previously, Ken was a Partner of Freehills and later Herbert Smith Freehills for 21 years, and for six years was a member of the Herbert Smith Freehills Global Board. Ken is one of Australia’s leading commercial lawyers with significant experience in class actions and other complex legal issues. He holds a Master of Laws from the University of Melbourne and is a co-author of Class Actions in Australia.Simon joined the Group in May 2016. He is a Chartered Secretary and Chartered Governance Practitioner and has extensive company secretarial and corporate governance experience. From 2009 to 2016 he was Company Secretary for Australian Foundation Investment Company Limited and a number of other listed investment companies. Other former roles include being Deputy Company Secretary for the Group and Head of Board Support for Barclays PLC in the United Kingdom.He is a formal brand ambassador for, and is a former National President and Chairman of, Governance Institute of Australia. He is also a member of the Chartered Governance Institute’s Global Thought Leadership Committee. Simon is committed to the promotion and practice of good corporate governance, and regularly presents on governance issues. Overview
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25
Executive Committee
Shayne Elliott
Chief Executive Officer
(appointed CEO on
1 January 2016)
Joined the Executive
Committee on 1 June 2009
Maile Carnegie
Group Executive
Australia Retail
Joined the Executive
Committee on
27 June 2016
Elisa Clements
Group Executive Talent
& Culture
Joined the Executive
Committee on
9 October 2023
Kevin Corbally
Group Chief Risk Officer
Joined the Executive
Committee on
19 March 2018
Farhan Faruqui
Chief Financial Officer
(appointed CFO on
11 October 2021)
Joined the Executive
Committee on 1 February 2016
Gerard Florian
Group Executive Technology
& Group Services
Clare Morgan
Group Executive
Australia Commercial
Antony Strong
Group Executive Strategy
& Transformation
Joined the Executive
Committee on
30 January 2017
Joined the Executive
Committee on
6 March 2023
Joined the Executive
Committee on
1 November 2022
Antonia Watson
Group Executive and CEO
New Zealand
Joined the Executive
Committee on
17 June 2019
Mark Whelan
Group Executive Institutional
Joined the Executive
Committee on
20 October 2014
Full biography details can
be found on our website
at anz.com/exco
26
Risk management
• Climate risk: In November 2023, the
Board Risk Committee approved climate
risk as a material risk within ANZ’s risk
management framework. Climate risk is
also considered to be a driver of other
risks within our risk management
framework. Work is progressing to
integrate and embed climate risk into
the Group’s risk management
framework through existing policies,
processes and governance frameworks.
It is anticipated that this will be a
multi-year journey, recognising the
complexities and challenges that arise
from an evolving regulatory landscape,
limitations on the availability of and
access to reliable and consistent data,
and the need to uplift systems, tools,
and capability across the Group. For
details on our approach to managing
climate risk and actions we are taking
as part of our Net-Zero Banking Alliance
commitment, refer to our 2024
Climate-related Financial Disclosures
available at anz.com/annualreport.
Our Climate Change Commitment is
available at anz.com/esgreport.
• Technology Disruption and Change:
ANZ serves a diverse customer base,
including retail, small business,
corporates, multinational institutions,
and other financial institutions. We tailor
our digital channels and products to
meet their varying needs. Our payments
services process payments in
29 markets and annually we serve more
than 10 million customers, facilitating
over seven billion payments and capital
flows. The pace of change continues
to accelerate driven by the dynamic
regulatory landscape, increased
technology disruption from both
traditional and non-traditional
competitors and industry-driven
changes (such as decommission in
legacy clearing streams (BECS &
Cheques); Confirmation of Payee, faster
payment adoption through Asia–Pacific,
ISO20022). This level of change and
disruption necessitates ongoing
vigilance regarding our enhanced
operational resilience, innovation and
compliance capabilities. We are
continually adapting our processes and
systems to meet these evolving
requirements, ensuring that we remain
agile and responsive to the evolving
regulatory, competitive, customer and
technological demands.
Constant changes and
uncertainties in the
macroeconomic environment,
climate change and evolving
geopolitical tensions continue to
pose challenges to our operating
conditions. We understand that
our customers are similarly
affected by these as well as
additional challenges such as
experiencing increasing fraud
and scams activities. We
continue to strengthen our risk
management framework and
practices to meet such
challenges.
External environment
The Group’s financial performance is
closely linked to the political, economic
and financial conditions in the countries
and regions in which ANZ, its customers
and its counterparties carry on business.
The current external environment is
shaped by significant global events
particularly geopolitical conditions and
climate change that impact economic
stability, regulatory environments and
financial markets.
• Geopolitical risk: Elections, conflicts,
and increasing US – China competition
have dominated the geopolitical
environment this year. Conflict in the
Middle East and Europe continue to
impact regional security and supply
chains and have increased market
volatility. Meanwhile, economic security
policymaking has accelerated as large
economies vie for influence, resources,
and industrial expansion. These
dynamics are reshaping trade and
investment flows, yet the swift
adaptation of these flows underscores
the resilience of the international
system. ANZ established a Geopolitical
Risk function in 2021, which provides
quarterly updates to key risk
committees, works with country teams
to monitor and manage regional risks,
and this year expanded to provide more
analysis and advice to management on
fast-moving developments.
ANZ 2024 Annual Report Overview
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report
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information
27
In addition, economic instability including
elevated interest rates, inflationary
pressures and higher cost of living
continue to increase financial stress for
some customers. While households and
businesses have been largely resilient to
date, the Board and management
continually monitor these developing
conditions to set appropriate risk criteria
for a range of potential scenarios. We will
continue to carefully manage our capital
and risk appetite settings so we can
continue to support our customers.
Suncorp Bank integration
On 1st August 2024, we welcomed
~3000 Suncorp Bank employees and 1.2
million customers into the ANZ Group. We
believe this acquisition will bring significant
public benefits and create a stronger,
more competitive bank that will better
serve our customers. Suncorp Bank has
a comprehensive risk management
framework and policies that operate
effectively. Through the establishment of
the Suncorp Bank Board, and in line with
commitments made, Suncorp Bank has its
own dedicated Management and Board
Risk Committees. Work is in progress to
ensure a smooth transition of risk
management frameworks and policies,
and effective integration into the ANZ risk
management operating model.
Non-financial risk
During the year APRA required ANZ to
hold an additional operational risk capital
overlay of $250 million (total $750 million)
from 30th September 2024. This increase
was a result of APRA viewing ANZ as
having made insufficient progress in
addressing weaknesses in non-financial
risk management. These concerns were
heightened following a number of recent
issues relating to our Markets business.
While there has been a lot of work already
completed in uplifting our approach to
non-financial risk management, there is
still more to do, and ANZ remains
committed to getting that work done as
soon as possible. This includes the
adoption of a consistent, simplified,
bank-wide methodology and framework,
from a technology, reporting, and culture
perspective.
Financial crime
We maintain a financial crime risk
management program that anticipates
and navigates criminal threats. The
Financial Crime portfolio continues to be
responsible for ensuring that ANZ meets
its regulatory obligations through its
Anti-Fraud Policy, Anti-Money Laundering/
Counter Terrorism Finance and Sanction
Programs for delivering detection,
investigative and intelligence capability
focused on identifying, mitigating, and
managing financial crime risk to help
protect the community. We also maintain
our partnership with the Australian
Transaction Report and Analysis Centre
(AUSTRAC)-led Fintel Alliance to increase
the resilience of the financial sector to
prevent exploitation by criminals, and
support investigations into serious crime
and national security.
Scams
ANZ continues to invest significantly as
part of its fight to help protect customers
and the community from scams and other
financial crimes. In 2024, ANZ has
prevented more than $140 million of
customer funds going to cybercriminals
and total ANZ customer scam losses
decreased compared to the previous year.
This is partly due to increased friction we
have put in place to slow down the
payment process for high-risk payments.
We also rely on our enhanced Falcon
technology to detect more suspicious
transactions.
Our latest measures for ANZ Classic
customers include the introduction of a
dedicated team of specialists who handle
calls about fraud and scams, a new Scam
Scoring model that uses AI to boost our
scam detection, and a Mule Detection
model to detect mule accounts and restrict
the movement of scam proceeds. We also
increased personalised warning messages
on Internet Banking when a transaction or
activity is considered high risk. For ANZ Plus
customers, we introduced a suite of scam
safe features including screen share
protection from scammers, location-based
security, risky-app detection, crypto limits
and active call status to detect coaching
from scammers.
We delivered various education initiatives
to improve scam confidence and service
capability for our bankers and customers.
This included for example, new and
enhanced content on ANZ’s security hub
on anz.com, messages and alerts in ANZ’s
digital channels, and the creation of new
mandated security content for frontline
employees to support customer
engagement on security.
We also added a new scams education
module to ANZ’s flagship financial
education program, MoneyMinded, which
equips community professionals with
resources to support their clients identify
and protect themselves from scams.
Emerging risks
ANZ manages and monitors risks in
accordance with our Risk Management
Framework (RMF). In addition to our material
risks – see below – two emerging risks that
we are paying particular attention to are:
Nature: We consider that our most material
nature risks can arise from lending to
customers that have material impacts and/
or dependencies on nature. These risks
can also arise from legal and regulatory
changes, which may impact ANZ directly or
indirectly through our customers. Failure to
manage these risks may lead to financial
and non-financial risks to ANZ.
We acknowledge the need to protect and
restore nature and mitigate biodiversity loss
including as a result of species extinction or
decline, ecosystem degradation and nature
loss. We are seeking to understand the
impacts and dependencies nature can
have on our customers, including how
customers are managing and mitigating
material risks and impacts.
For details on our approach to managing
nature risk refer to our 2024 Climate–
related Financial Disclosures available at
anz.com/annualreport. Our Climate
Change Commitment is available at
anz.com/esgreport.
Artificial Intelligence (AI): At ANZ, we
recognise the opportunity of using AI to
help shape a better world where
communities thrive. AI has the potential to
drive significant innovation and efficiency
in our operations, leading to enhanced
customer experiences and business
growth. With this opportunity comes the
need to act responsibly to mitigate the
potential risks associated with use of AI.
ANZ is adapting our governance and risk
management frameworks to ensure that
AI is adopted safely, in pace with evolving
regulatory standards and the expectations
of our customers.
28
Risk culture
Risk culture is an important component
of our organisational culture and
underpins the shared values, behaviours
and practices that influence how risk is
considered in decision making.
ANZ remains committed to strengthening
risk culture, supporting the Group to
meet the evolving expectations of our
customers, the community and
regulators. Having achieved the target
state in 2023, the enterprise’s risk culture
has not met expectations of continuous
improvement in 2024. Notwithstanding
the strength in managing the Group’s
financial risks across credit, market,
capital, and liquidity, regulatory concerns
around our Markets business and
non-financial risk management are
earnestly under review, ensuring learnings
are captured to support improvement of
risk management behaviours and
practices where appropriate.
Risk culture is actively monitored
and driven across the Group through
completion of risk culture plans,
enterprise-wide awareness activities and
the continued focus on delivery of the
Group wide non-financial risk framework.
Risk culture is embedded in annual
performance and remuneration, and
recognition programs such as Risk
Role Models (see section 6 of the
Remuneration Report).
Our Risk Management
Framework (RMF)
The Board is ultimately responsible for
establishing and overseeing the ANZ
Group’s RMF which is supported by the
Group’s underlying systems, structures,
policies, procedures, processes and
people. The Board has delegated authority
to the Board Risk Committee (BRC) to
develop and monitor compliance with
the Group’s risk management policies.
The Committee reports regularly to the
Board on its activities. The key pillars of
our Group RMF include:
• The Risk Management Strategy (RMS)
which is a critical element of the Group’s
RMF. The RMS includes: how the risk
function is structured to support the
Group’s purpose and strategy, and the
execution of the Group Chief Risk
Officer’s prescribed responsibilities as
an Accountable Person under the
Financial Accountability Regime; the
values, attitudes and behaviours that
support risk decision-making in
delivering on strategic priorities and a
Board approved target risk culture; a
description of each material risk; and an
overview of how the RMS addresses
each material risk, with reference to the
relevant policies, standards and
procedures. It also includes information
on how the Group identifies, measures,
evaluates, monitors, reports and
controls or mitigates the material risks
and the oversight mechanism and/or
committees in place.
• The Risk Appetite Statement (RAS),
conveys, for each material risk, the
maximum level of risk the Group is
willing to accept in pursuing its strategic
objectives and its operating plans
considering its shareholders’,
depositors’ and customers’ interests.
• Risk Principles support the RMF and
outline the behaviours and practices
that are expected to be applied to
guide risk management and help to
instil an appropriate risk culture across
the Group.
The Group operates under the Three
Lines-of-Defence Model. Each line of
defence has clearly defined roles,
responsibilities and escalation paths to
support effective risk management at
ANZ. The three lines of defence model
embeds a culture where risk is
everyone’s responsibility.
The business and enablement functions
form the first lines-of-defence and are
responsible for the implementation and
ongoing maintenance of the RMF
including day-to-day ownership of
risks and controls.
The Risk function forms the second line
of defence, providing independent
oversight of the Group’s risk profile and
RMF, including effective challenge to
activities and decisions that materially
affect the Group’s risk profile and working
with the first line, in developing and
maintaining the RMF.
Internal Audit is the third line of defence,
providing independent evaluation
and objective assurance on the
appropriateness, effectiveness and
adequacy of the Group’s RMF.
The governance and oversight of risk
management, while embedded in
day-to-day activities, is also the focus of
committees and regular forums across
the bank (see diagram next page). The
committees and forums discuss and
monitor known and emerging risks, review
management plans and monitor progress
to address known issues.
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29
Board of Directors
Audit
Committee
Ethics,
Environment,
Social and
Governance
Committee
Risk
Committee
Digital Business
and Technology
Committee
Nomination and
Board Operations
Committee
People
and Culture
Committee
Key Management Committees
Executive CommitteeANZ’s most senior executives meet regularly to discuss performance and review shared initiatives.Enterprise Accountability GroupGroup Performance Execution CommitteeANZ’s key Management Committee charged with oversight of the Group’s overall operational performance and position and execution of the operating plan.Principal Board CommitteesGroupDivisionCountryCredit Ratings System Oversight CommitteeCapital and Stress Testing Oversight CommitteeFinancial Crime OREC Sub-CommitteeRegional or Country Risk Management CommitteesCountry Assets and Liability CommitteesCredit and Market Risk CommitteeGroup Asset and Liability CommitteeOperational Risk Executive Committee (OREC)Ethics and Responsible Business CommitteeInvestment CommitteeGroup Executive People CommitteeDivisional/Functional Accountability GroupsDivisional Initiatives Review Committees/Project Advisory CouncilsDivisional Risk Management Committees 30
Material risks
The material risks facing the Group per the Group’s RMS, and how these risks are managed, are summarised below.
Risk type
Description
Managing the risk
Capital
Adequacy
Risk
The risk of loss arising from the Group failing
to maintain the level of capital required by
prudential regulators and other key stakeholders
(shareholders, debt investors, depositors, rating
agencies, etc.) to support the Group’s
consolidated operations and risk appetite.
We pursue an active approach to Capital
Management, which is designed to protect the
interests of depositors, creditors and shareholders
through ongoing review, and Board approval, of
the level and composition of our capital base
against key policy objectives.
Credit Risk
The risk of financial loss resulting from:
• A counterparty failing to fulfil its obligations; or
• A decrease in credit quality of a counterparty
resulting in a loss.
Liquidity and
Funding Risk
Market Risk
Strategic Risk
The risk that the Group is unable to meet its
payment obligations as they fall due, including:
• Repaying depositors or maturing wholesale
debt; or
• The Group having insufficient capacity to
fund increases in assets.
The risk stems from our trading and balance
sheet activities and is the risk to the Group’s
earnings arising from:
• Changes in interest rates, foreign exchange
rates, credit spreads, volatility, correlations; or
• Fluctuations in bond, commodity or equity
prices.
Strategic Risk is defined as the risk that
internal or external factors prevent the Group
from achieving the key strategic goals that are
core to its operations through introduced risk
due to strategy changes, failure to execute the
strategy effectively, or a failure to adapt the
strategy in response to changing
environments and requirements.
Strategic risk may arise from factors such as
changes in the environmental context, failure
to meet strategic targets, and the introduction
of new or heightened risks resulting from
strategic adjustments.
Our Credit Risk framework is top down, being
defined by credit principles, policies and
requirements. Credit policies, requirements and
procedures cover all aspects of the credit life
cycle from initial approval and risk grading,
through to ongoing management and problem
debt management.
The Group recognises the inherent liquidity
and funding risk in the balance sheet and has
established a set of key principles, to mitigate
and control liquidity and funding risk.
Our framework is top down, being defined by
liquidity principles and policies. A liquidity limit
framework is in place with liquidity limits set based
on a liquidity stress testing framework.
We have a detailed market risk management and
control framework which includes incorporating an
independent risk measurement approach to
quantify the magnitude of market risk within the
trading and balance sheet portfolios. This
approach identifies the range of possible
outcomes, that can be expected over a given
period of time, and establishes the likelihood of
those outcomes and allocates an appropriate
amount of capital to support these activities.
Strategic risks are discussed and managed by the
Executive Committee (ExCo) through the Group
strategic planning process. Additionally, we
monitor delivery risk associated with High Impact
change initiatives and undertake risk assessments
prior to execution of our strategic changes.
ANZ 2024 Annual Report Overview
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31
Risk type
Description
Managing the risk
Climate Risk
Climate risk includes:
• Physical risk – arising from both longer-term
changes in climate (chronic risk) as well as
changes to the frequency and magnitude
of extreme weather events (acute risk).
Examples of chronic physical risk drivers
include rising sea levels, rising average
temperatures and ocean acidification.
Examples of acute physical risk drivers
include heatwaves, floods, bushfires
and cyclones;
• Transition risk – arising from the transition to
a lower emission economy, including changes
in domestic and international policy and
regulatory settings, technological innovation,
social adaptation and market changes; or
• Liability risk – in the form of potential litigation
or regulatory action that may arise as a
consequence of a failure to adequately
consider or respond to the impacts of climate
change (including physical and transition
risks). This includes for example, the risk of
greenwashing, which may arise where an
entity is alleged to have misrepresented its
climate-related risks, business credentials
or strategies.
Non-Financial Risk (NFR) is the risk of loss and/
or non-compliance (including failure to act in
accordance with laws, regulations, industry
standards and codes, and internal policies)
resulting from inadequate or failed internal
processes, people, system and/or data, or
from external events. The Group manages NFR
in accordance with the industry-wide
Operational Risk Exchange (ORX) taxonomy,
of 16 ‘Risk Themes’, noting some of these
present a higher inherent risk to the Group
such as Conduct, Data, Financial Crime,
Information Security (including Cyber),
Regulatory and Technology.
Non-Financial
Risk
Following the elevation of climate risk to a material
risk in November 2023, work is progressing to
integrate and embed climate risk into the Group’s
risk management framework through existing
policies, processes and governance frameworks.
While climate risk can be a driver of credit risk
through lending to our customers, it may also
result in other financial risks, e.g. market risk
Climate risks can also be a driver of non-financial
risks including conduct risk, regulatory risk and
operational resilience risk.
Climate-related financial and non-financial risks
are managed through the risk management
strategies associated with these risks.
In 2024, we identified insurability risk as an
emerging risk to the Group and are seeking to
further understand the potential risks and impacts
to our customers.
The Group’s strategy for evolving NFR
management provides a planned and proactive
approach to improving the Group’s NFR
management. The NFR strategy is being
operationalised through the NFR Framework,
which has been designed to enable the Group to
holistically, consistently and effectively identify,
assess, remediate, monitor and report on NFR.
For further information about the principal risks and uncertainties that the ANZBGL
Group faces, refer to Principal Risks and Uncertainties section contained within the
‘2024 United Kingdom Disclosure and Transparency Rules Submission’ available at
anz.com/shareholder/centre/reporting/regulatory-disclosure/
32
Our Performance (continued)
Five year summary – Financial
Five year summary - Financial
Financial performance - cash1
Net interest income
Other operating income
Operating expenses
Profit before credit impairment and income tax
Credit impairment (charge)/release
Income tax expense
Non-controlling interests
Cash profit from continuing operations1,2
Cash profit/(loss) from discontinued operations1,2
Cash profit1
Adjustments to arrive at statutory profit1
Profit attributable to shareholders of the Company
Financial position
Gross loans and advances
Assets
Customer Deposits
Net assets
CET1
CET1 – Basel Harmonised3
Return on average ordinary equity (statutory)4
Cost to income ratio (cash)1
Shareholder value – ordinary shares
Total return to shareholder
Market capitalisation
Dividend (cents)
Franked portion
– interim
– final
Share price
– high (dollars)
– low (dollars)
– closing (dollars)
Share information
(per fully paid ordinary share)
Earnings per share (cents) (statutory)
Dividend payout ratio (statutory)
Net tangible assets per ordinary share5
No. of fully paid ordinary shares issued (millions)
Dividend reinvestment plan (DRP) issue price
– interim
– final
Other information
No. of employees (full time equivalents)
No. of shareholders
2024
$m
16,069
4,740
20236
$m
16,574
4,331
(10,741)
(10,139)
10,068
(406)
(2,902)
(35)
6,725
-
6,725
(190)
6,535
10,766
(245)
(3,080)
(28)
7,413
-
7,413
(307)
7,106
2022
$m
14,874
3,673
(9,579)
8,968
232
(2,684)
(1)
6,515
(19)
6,496
623
7,119
807,057
710,590
675,989
1,229,115
1,105,643
1,085,729
715,211
70,628
12.2%
17.6%
9.4%
51.6%
27.0%
90,800
166
65%
70%
$31.94
$23.90
$30.48
217.9
76.0%
$21.60
2,979
$28.37
-
647,119
70,017
13.3%
19.7%
10.5%
48.5%
20.0%
77,116
175
100%
56%
$26.08
$22.39
$25.66
237.1
74.0%
$21.77
3,005
$23.55
$24.34
620,429
66,401
12.3%
19.2%
11.4%
52.0%
-14.0%
68,170
146
100%
100%
$28.98
$20.95
$22.80
250.0
59.3%
$20.75
2,990
$25.52
$24.51
2021
$m
14,161
3,286
(9,051)
8,396
567
(2,764)
(1)
6,198
(17)
6,181
(19)
6,162
633,764
978,857
593,582
63,676
12.3%
18.3%
9.9%
52.2%
70.7%
79,483
142
100%
100%
$29.64
$16.97
$28.15
215.3
65.3%
$21.09
2,824
$27.91
$27.68
2020
$m
14,049
3,703
(9,383)
8,369
(2,738)
(1,872)
(1)
3,758
(98)
3,660
(83)
3,577
622,074
1,042,286
552,363
61,297
11.3%
16.7%
5.9%
53.8%
-36.9%
48,839
60
100%
100%
$28.67
$14.10
$17.22
125.3
47.6%
$20.04
2,840
$18.06
$22.19
42,370
500,169
40,342
530,601
39,381
541,788
40,221
534,166
38,579
553,171
11.. Cash profit excludes non-core items included in statutory profit and is provided to assist readers in understanding the result of the ongoing business activities of the Group. Cash profit is not
audited; however, the external auditor has informed the Audit Committee that the adjustments have been determined on a consistent basis across each period presented. 22.. The Group
completed the divestments of ADG, OnePath P&I and life insurance businesses across 2020 and 2019. The financial results of the divested businesses were treated as discontinued until final
completion in 2022. 33.. 2024 and 2023 Basel Harmonised methodology aligns with the Australia Banking Association Basel 3.1 Capital Comparison Study (March 2023). For years prior to 2023,
Internationally Comparable Methodology aligns with APRA’s information paper entitled ‘International Capital Comparison Study’ (13 July 2015). 44.. Average ordinary equity excludes non-controlling
interests. 55.. Equals shareholders’ equity less total non-controlling interests, goodwill and other intangible assets, divided by the number of ordinary shares. 66.. On 1 October 2023, the Group
adopted AASB 17 Insurance Contracts and restated 2023 comparative information. Refer to Note 1 About our financial statements for further details.
46
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
33
Page intentionally left blank
34
34
ANZ 2024 Annual Report
Our Performance (continued)
Performance overview
35
Our Performance (continued)
Performance overview
Group performance
Key measures of our financial performance are set out below.
Group performance
The results of the Group’s operations and financial position are set out on pages 34-47. Pages 8-15 outline the Group’s strategy and
prospects. Discussion of our approach to risk management, including a summary of our key material risks, is outlined on pages 26-31.
Discussion or disclosure of further business strategies and prospects for future financial years has not been included in this report because,
in the opinion of the directors, it would be likely to result in unreasonable prejudice to the Group.
Group profit results
Income Statement
Net interest income
Other operating income
Operating income
Operating expenses
Profit before credit impairment and income tax
Credit impairment (charge)/release
Profit before income tax
Income tax expense
Non-controlling interests
Profit attributable to shareholders of the Company
2024
20231
Statutory
$m
16,069
4,478
20,547
(10,741)
9,806
(406)
9,400
(2,830)
(35)
6,535
Cash
$m
16,069
4,740
20,809
(10,741)
10,068
(406)
9,662
(2,902)
(35)
6,725
Statutory
$m
16,574
3,897
20,471
(10,139)
10,332
(245)
10,087
(2,953)
(28)
7,106
Cash
$m
16,574
4,331
20,905
(10,139)
10,766
(245)
10,521
(3,080)
(28)
7,413
1. On 1 October 2023, the Group adopted AASB 17 Insurance Contracts and restated 2023 comparative information. Refer to Note 1 About our financial statements for further details.
Statutory profit attributable to shareholders of the Company for the year decreased $571 million on the prior year to $6,535 million. Statutory
return on equity is 9.4% and statutory earnings per share is 217.9 cents, a decrease of 8% on prior year.
The Group uses cash profit, a non-IFRS measure, to assess the performance of its business activities. It is an industry-wide measure which
enables comparison with our peer group. We calculate cash profit by adjusting statutory profit for non-core items. In general, it represents the
financial performance of our core business activities. We use cash profit internally to set targets and incentivise our Senior Executives and leaders
through our remuneration plans. Refer to page 35 for adjustments between statutory and cash profit. The adjustments made in arriving at cash
profit are included in statutory profit which is subject to audit within the context of the external auditor’s audit of the 2024 Financial Report. Cash
profit is not subject to audit by the external auditor. Our external auditor has informed the Audit Committee that adjustments between statutory
and cash profit have been determined on a consistent basis across each of the periods presented.
Suncorp Bank acquisition
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank. Suncorp Bank
provides banking and related services to retail, commercial, small and medium enterprises and agribusiness customers in Australia.The transaction
was undertaken to accelerate the growth of the Group’s retail and commercial businesses while also improving the geographic balance of its
business in Australia. The 2024 reported results include 2 months results for Suncorp Bank from the date of acquisition, presented as Suncorp
Bank division.
The Group is currently completing the purchase price allocation exercise to identify, measure and recognise the acquired tangible and intangible
assets and assumed liabilities at their acquisition date fair values. As at 30 September 2024, all values have been recognised on a provisional
basis pending completion of this exercise. The provisional goodwill balance of $1,402 million will be remeasured to take into account any
adjustments from this exercise.
For further information on the assets acquired and liabilities assumed, refer to Note 36 Suncorp Bank acquisition in the Financial Report.
Suncorp Bank acquisition related adjustments
Suncorp Bank’s divisional results for 2024 includes the following acquisition related adjustments recognised by the Group post transaction
completion, with an after tax charge of $196 million:
Collectively assessed credit impairment charge of $244 million ($171 million after tax) for Suncorp Bank’s performing loans and advances. In
accordance with Australian Accounting Standards requirements, the Group consolidated Suncorp Bank’s loans and advances on 31 July 2024,
however the Group was not permitted to recognise an allowance for ECL on the performing loans and advances, leading to a proportional
reduction in acquisition-related goodwill that would otherwise have been recognised. Subsequently, the Group was required to recognise a
collectively assessed allowance for ECL estimated using the Group’s ECL methodologies, with a corresponding charge recognised in the
Group’s Income Statement.
Accelerated software amortisation expense of $36 million ($25 million after tax) on alignment to the Group’s software capitalisation policy.
32
Net interest margin –
cash (%)
Operating expenses to
operating income - cash (%)
Credit impairment charge
/(release) – cash ($m)
1.57
1.70
2024
2023
51.6
48.5
2024
2023
406
245
Earnings per share –
cash (cents)
Common equity
tier 1 (%)
9.7
11.0
2024
2023
224.3
247.3
2024
2023
12.2
13.3
Cash profit
($m)
2024
2023
Dividend per share
(cents)
2024
2023
6,725
7,413
166
175
Adjustments between statutory profit and cash profit ($m)
264
(74)
6,725
2024
2023
2024
2023
2020
Return on equity –
cash (%)
6,535
2024 Statutory profit
attributable to shareholders
of the Company
Economic
hedges
Revenue and
expense hedges
2024 Cash profit
attributable to shareholders
of the Company
Adjustments between continuing operations statutory profit and cash profit are summarised below:
Adjustment
Comment for the adjustment
Economic hedges
The Group enters into economic hedges to manage its interest rate and foreign exchange risk which, in accordance
2024: $264 million loss
2023: $217 million loss
Revenue and expense
hedges
2024: $74 million gain
2023: $90 million loss
with accounting standards, result in fair value gains and losses being recognised within the Income Statement. We
remove the fair value adjustments from cash profit since the profit or loss resulting from the hedge transactions will
reverse over time to match with the profit or loss from the economically hedged item as part of cash profit. This
includes gains and losses arising from derivatives not designated in accounting hedge relationships but which are
considered to be economic hedges, including hedges of foreign currency debt issuances and foreign exchange
denominated revenue and expense streams, primarily NZD and USD (and USD correlated), as well as ineffectiveness
from designated accounting hedges.
In the 2024 financial year, losses on economic hedges relate to funding-related swaps, principally from narrowing
USD/EUR currency basis spreads and the weakening of the USD against the AUD. Further losses were driven by the
impact of falling AUD and NZD yield curves on net pay fixed economic hedge positions.
The gain on revenue and expense hedges was mainly due to the appreciation of AUD against the USD and NZD.
33
ANZ 2024 Annual Report
34
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
35
35
Performance overview
Our Performance (continued)
information
Our Performance (continued)
Performance overview
Group performance
Key measures of our financial performance are set out below.
The results of the Group’s operations and financial position are set out on pages 34-47. Pages 8-15 outline the Group’s strategy and
prospects. Discussion of our approach to risk management, including a summary of our key material risks, is outlined on pages 26-31.
Discussion or disclosure of further business strategies and prospects for future financial years has not been included in this report because,
in the opinion of the directors, it would be likely to result in unreasonable prejudice to the Group.
Group performance
Group profit results
Income Statement
Net interest income
Other operating income
Operating income
Operating expenses
Profit before income tax
Income tax expense
Non-controlling interests
Profit before credit impairment and income tax
Credit impairment (charge)/release
2024
20231
Statutory
$m
16,069
4,478
20,547
(10,741)
9,806
(406)
9,400
(2,830)
(35)
6,535
Cash
$m
16,069
4,740
20,809
(10,741)
10,068
(406)
9,662
(2,902)
(35)
6,725
Statutory
$m
16,574
3,897
20,471
(10,139)
10,332
(245)
10,087
(2,953)
(28)
7,106
Cash
$m
16,574
4,331
20,905
(10,139)
10,766
(245)
10,521
(3,080)
(28)
7,413
Profit attributable to shareholders of the Company
1. On 1 October 2023, the Group adopted AASB 17 Insurance Contracts and restated 2023 comparative information. Refer to Note 1 About our financial statements for further details.
Statutory profit attributable to shareholders of the Company for the year decreased $571 million on the prior year to $6,535 million. Statutory
return on equity is 9.4% and statutory earnings per share is 217.9 cents, a decrease of 8% on prior year.
The Group uses cash profit, a non-IFRS measure, to assess the performance of its business activities. It is an industry-wide measure which
enables comparison with our peer group. We calculate cash profit by adjusting statutory profit for non-core items. In general, it represents the
financial performance of our core business activities. We use cash profit internally to set targets and incentivise our Senior Executives and leaders
through our remuneration plans. Refer to page 35 for adjustments between statutory and cash profit. The adjustments made in arriving at cash
profit are included in statutory profit which is subject to audit within the context of the external auditor’s audit of the 2024 Financial Report. Cash
profit is not subject to audit by the external auditor. Our external auditor has informed the Audit Committee that adjustments between statutory
and cash profit have been determined on a consistent basis across each of the periods presented.
Suncorp Bank acquisition
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank. Suncorp Bank
provides banking and related services to retail, commercial, small and medium enterprises and agribusiness customers in Australia.The transaction
was undertaken to accelerate the growth of the Group’s retail and commercial businesses while also improving the geographic balance of its
business in Australia. The 2024 reported results include 2 months results for Suncorp Bank from the date of acquisition, presented as Suncorp
Bank division.
The Group is currently completing the purchase price allocation exercise to identify, measure and recognise the acquired tangible and intangible
assets and assumed liabilities at their acquisition date fair values. As at 30 September 2024, all values have been recognised on a provisional
basis pending completion of this exercise. The provisional goodwill balance of $1,402 million will be remeasured to take into account any
adjustments from this exercise.
For further information on the assets acquired and liabilities assumed, refer to Note 36 Suncorp Bank acquisition in the Financial Report.
Suncorp Bank acquisition related adjustments
Suncorp Bank’s divisional results for 2024 includes the following acquisition related adjustments recognised by the Group post transaction
completion, with an after tax charge of $196 million:
Collectively assessed credit impairment charge of $244 million ($171 million after tax) for Suncorp Bank’s performing loans and advances. In
accordance with Australian Accounting Standards requirements, the Group consolidated Suncorp Bank’s loans and advances on 31 July 2024,
however the Group was not permitted to recognise an allowance for ECL on the performing loans and advances, leading to a proportional
reduction in acquisition-related goodwill that would otherwise have been recognised. Subsequently, the Group was required to recognise a
collectively assessed allowance for ECL estimated using the Group’s ECL methodologies, with a corresponding charge recognised in the
Group’s Income Statement.
Accelerated software amortisation expense of $36 million ($25 million after tax) on alignment to the Group’s software capitalisation policy.
32
Net interest margin –
cash (%)
Operating expenses to
operating income - cash (%)
Credit impairment charge
/(release) – cash ($m)
2024
2023
1.57
1.70
2024
2023
51.6
48.5
2024
2023
406
245
Cash profit
($m)
2024
2023
2020
Return on equity –
cash (%)
2024
2023
Earnings per share –
cash (cents)
Common equity
tier 1 (%)
Dividend per share
(cents)
9.7
11.0
2024
2023
224.3
247.3
2024
2023
12.2
13.3
2024
2023
6,725
7,413
166
175
Adjustments between statutory profit and cash profit ($m)
264
(74)
6,725
6,535
2024 Statutory profit
attributable to shareholders
of the Company
Economic
hedges
Revenue and
expense hedges
2024 Cash profit
attributable to shareholders
of the Company
Adjustments between continuing operations statutory profit and cash profit are summarised below:
Adjustment
Comment for the adjustment
Economic hedges
2024: $264 million loss
2023: $217 million loss
Revenue and expense
hedges
2024: $74 million gain
2023: $90 million loss
The Group enters into economic hedges to manage its interest rate and foreign exchange risk which, in accordance
with accounting standards, result in fair value gains and losses being recognised within the Income Statement. We
remove the fair value adjustments from cash profit since the profit or loss resulting from the hedge transactions will
reverse over time to match with the profit or loss from the economically hedged item as part of cash profit. This
includes gains and losses arising from derivatives not designated in accounting hedge relationships but which are
considered to be economic hedges, including hedges of foreign currency debt issuances and foreign exchange
denominated revenue and expense streams, primarily NZD and USD (and USD correlated), as well as ineffectiveness
from designated accounting hedges.
In the 2024 financial year, losses on economic hedges relate to funding-related swaps, principally from narrowing
USD/EUR currency basis spreads and the weakening of the USD against the AUD. Further losses were driven by the
impact of falling AUD and NZD yield curves on net pay fixed economic hedge positions.
The gain on revenue and expense hedges was mainly due to the appreciation of AUD against the USD and NZD.
33
36
36
ANZ 2024 Annual Report
Our Performance (continued)
Group cash profit performance
Cash profit ($m)
7,413
409
Our Performance (continued)
Performance overview
37
Analysis of cash profit performance
Net interest income
Group net interest margin (bps)
170
(505)
171
6,725
(602)
(161)
5
0
165
(8)
(2)
0
157
(8)
2023 Cash profit
attributable to
shareholders of the
Company
Net interest
income
Other
operating
income
Operating
expenses
Credit
impairment
Income tax
expense &
non-controlling
interests
2024 Cash profit
attributable to
shareholders of the
Company
2023 Cash
net interest
margin
Assets
pricing
Deposits
pricing and
wholesale funding
Assets and
funding mix
Capital and
replicating
portfolio
Suncorp
Bank impact
2024 Cash
net interest
margin subtotal
Markets activities
2024 Cash
net interest
margin
Net interest income
Other operating income
Operating income
Operating expenses
Profit before credit impairment and income tax
Credit impairment (charge)/release
Profit before income tax
Income tax expense
Non-controlling interests
Cash profit attributable to shareholders of the Company
2024
$m
16,069
4,740
20,809
(10,741)
10,068
(406)
9,662
(2,902)
(35)
6,725
2023
$m
16,574
4,331
20,905
(10,139)
10,766
(245)
10,521
(3,080)
(28)
7,413
Movt
-3%
9%
0%
6%
-6%
66%
-8%
-6%
25%
-9%
Cash profit attributable to shareholders of the Company decreased $688 million (9%) compared with the 2023 financial year.
offset by higher earnings on capital and replicating deposits.
Net interest income decreased $505 million (3%) driven by a 13 bps decrease in net interest margin, partially offset by a $48.5 billion (5%)
increase in average interest earning assets. The decrease of 13 bps was driven by home loan pricing competition, markets activities impacted by
higher funding costs, primarily on commodity assets, where the related revenues are recognised as other operating income, and higher wholesale
funding issuance volume, partially offset by higher earnings on capital and replicating deposits. The increase in average interest earning assets
was driven by higher Markets activities, lending growth across the Australia Retail, Australia Commercial and New Zealand divisions, and the
acquisition of Suncorp Bank, partially offset by lower lending in the Institutional division.
Other operating income increased $409 million (9%) driven by an increase of $392 million in Markets other operating income from more
favourable trading conditions and higher transaction activity, and $75 million from unfavourable valuation adjustments and $43 million from a loss
of disposal of data centres in Australia, both in the prior year. This was partially offset by a $116 million decrease in share of associates’ profit.
Operating expenses increased $602 million (6%) driven by inflationary impacts, higher costs associated with strategic initiatives, the impact from
the acquisition of Suncorp Bank and restructuring costs. This was partially offset by productivity initiatives and the initial one-off levy under the
Compensation Scheme of Last Resort (CSLR) in 2023.
Credit impairment increased $161 million (66%) driven by a $110 million increase in collectively assessed credit impairment driven by $244
million from Suncorp Bank, partially offset by improvement in economic outlook, and a $51 million increase in individually assessed credit
impairment.
Net interest income1
Net interest margin (%) - cash1
Average interest earning assets
Average deposits and other borrowings
1. Includes the major bank levy of -$389 million (2023: -$353 million).
2024
$m
16,069
1.57
1,023,616
858,841
2023
$m
16,574
1.70
975,079
824,809
Movt
-3%
-13 bps
5%
4%
Net interest income decreased $505 million (3%) driven by a 13 bps decrease in net interest margin, partially offset by a $48.5 billion (5%)
increase in average interest earning assets.
Net interest margin decreased 13 bps driven by home loan pricing competition, markets activities impacted by higher funding costs, primarily on
commodity assets, where the related revenues are recognised as other operating income, higher wholesale funding issuance volume, partially
Average interest earning assets increased $48.5 billion (5%) driven by higher Markets activities, lending growth across the Australia Retail,
Australia Commercial and New Zealand divisions, and the acquisition of Suncorp Bank, partially offset by lower lending in the Institutional division.
Average deposits and other borrowings increased $34.0 billion (4%) driven by higher term deposits, the acquisition of Suncorp Bank, and higher
commercial paper, partially offset by lower repurchase agreements.
34
35
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
37
37
Performance overview
Our Performance (continued)
information
Analysis of cash profit performance
Net interest income
Group net interest margin (bps)
170
5
0
165
(8)
(2)
0
157
(8)
2023 Cash
net interest
margin
Assets
pricing
Deposits
pricing and
wholesale funding
Assets and
funding mix
Capital and
replicating
portfolio
Suncorp
Bank impact
2024 Cash
net interest
margin subtotal
Markets activities
2024 Cash
net interest
margin
Net interest income1
Net interest margin (%) - cash1
Average interest earning assets
Average deposits and other borrowings
1. Includes the major bank levy of -$389 million (2023: -$353 million).
2024
$m
16,069
1.57
1,023,616
858,841
2023
$m
16,574
1.70
975,079
824,809
Movt
-3%
-13 bps
5%
4%
Net interest income decreased $505 million (3%) driven by a 13 bps decrease in net interest margin, partially offset by a $48.5 billion (5%)
increase in average interest earning assets.
Net interest margin decreased 13 bps driven by home loan pricing competition, markets activities impacted by higher funding costs, primarily on
commodity assets, where the related revenues are recognised as other operating income, higher wholesale funding issuance volume, partially
offset by higher earnings on capital and replicating deposits.
Average interest earning assets increased $48.5 billion (5%) driven by higher Markets activities, lending growth across the Australia Retail,
Australia Commercial and New Zealand divisions, and the acquisition of Suncorp Bank, partially offset by lower lending in the Institutional division.
Average deposits and other borrowings increased $34.0 billion (4%) driven by higher term deposits, the acquisition of Suncorp Bank, and higher
commercial paper, partially offset by lower repurchase agreements.
35
38
38
ANZ 2024 Annual Report
Our Performance (continued)
Other operating income
Other operating income ($m)
392
120
4,740
4,331
13
(116)
Our Performance (continued)
Performance overview
39
416
1
215
66
10,741
(96)
2023 Cash
other
operating
income
1
Net fee and
commission
income
Markets
other
operating
income
Share of
associates’
profit/(loss)
1
Other
2024 Cash
other
operating
income
Personnel
Premises
Technology
Restructuring
Other
2024 Cash
operating
expenses
Net fee and commission income1
Markets other operating income
Share of associates' profit/(loss)
Other1
Total cash other operating income2
1. Excluding the Markets business unit.
2. Suncorp Bank division contributed $6 million in 2024 for the 2 months ended post acquisition.
2024
$m
1,875
2,315
105
445
4,740
2023
$m
1,862
1,923
221
325
4,331
Movt
1%
20%
-52%
37%
9%
2024
$m
6,178
659
1,915
235
1,754
10,741
42,370
40,624
2023
$m
5,762
658
1,700
169
1,850
10,139
40,342
39,885
Movt
7%
0%
13%
39%
-5%
6%
5%
2%
Net fee and commission income increased $13 million (1%) driven by higher transaction activity in the Institutional division and higher
Cashrewards revenue. This was partially offset by a decrease in non-lending fees in the Australia Commercial division, and lower cards revenue in
the Australia Retail division.
Markets other operating income increased $392 million (20%) driven by increases in Franchise Revenue across most product groups from more
favourable trading conditions and higher transaction activity, an increase in derivative valuation adjustments with gains from favourable credit and
funding spreads, partially offset by lower Balance Sheet revenues from the impact of fewer short-term interest rate increases than prior year.
initiatives.
Share of associates' profit decreased $116 million (52%) driven by loss of equity accounted earnings following the disposal of AMMB Holdings
Berhad (AmBank), and a decrease in the Group’s equity accounted share of profit from P.T. Bank Pan Indonesia (PT Panin) and Worldline Australia
Pty Ltd (Worldline).
Other income increased $120 million (37%) primarily driven by the net increase from non-recurring items in the prior year (including unfavourable
valuation adjustments, loss on disposal of data centres, impairment of investments held in ANZ Non-Bank Group, and favourable adjustment to
gain on sale relating to the completed UDC Finance divestment), and a release of excess provision following legal settlements. This was partially
offset by lower gains from recycling of foreign currency translation reserves from other comprehensive income to Income Statement on
dissolution of a number of international entities, and a loss on disposal of investment in AmBank.
1. Suncorp Bank contributed $188 million in 2024 for the 2 months post acquisition. Excluding Suncorp Bank division, total operating expense increased 4%.
2. Includes 2,798 FTE from Suncorp Bank division. Excluding Suncorp Bank division, FTE decreased 2%.
Personnel expenses increased $416 million (7%) driven by inflationary impacts on wages including an increase in leave provisions, impact from
acquisition of Suncorp Bank and higher resourcing associated with strategic initiatives. This was partially offset by benefits from productivity
Technology expenses increased $215 million (13%) driven by higher software licence costs, inflationary impacts on vendor costs, and the impact
from acquisition of Suncorp Bank including accelerated amortisation expense on alignment to the Group’s software capitalisation policy. This was
partially offset by benefits from technology simplification.
Restructuring expenses increased $66 million (39%) driven by operational changes across the Group.
Other expenses decreased $96 million (5%) driven by the initial one-off CSLR levy in the September 2023 full year and benefits from productivity
initiatives. This was partially offset by the impact from acquisition of Suncorp Bank.
Operating expenses
Operating expenses ($m)
10,139
2023 Cash
operating
expenses
Personnel
Premises
Technology
Restructuring
Other
Total cash operating expenses1
Full time equivalent staff2
Average full time equivalent staff
36
37
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Operating expenses
Operating expenses ($m)
Shareholder
Performance overview
information
Our Performance (continued)
39
39
416
1
215
66
10,741
(96)
10,139
2023 Cash
operating
expenses
Personnel
Premises
Technology
Restructuring
Other
2024 Cash
operating
expenses
Personnel
Premises
Technology
Restructuring
Other
Total cash operating expenses1
Full time equivalent staff2
Average full time equivalent staff
2024
$m
6,178
659
1,915
235
1,754
10,741
42,370
40,624
2023
$m
5,762
658
1,700
169
1,850
10,139
40,342
39,885
Movt
7%
0%
13%
39%
-5%
6%
5%
2%
1. Suncorp Bank contributed $188 million in 2024 for the 2 months post acquisition. Excluding Suncorp Bank division, total operating expense increased 4%.
2. Includes 2,798 FTE from Suncorp Bank division. Excluding Suncorp Bank division, FTE decreased 2%.
Personnel expenses increased $416 million (7%) driven by inflationary impacts on wages including an increase in leave provisions, impact from
acquisition of Suncorp Bank and higher resourcing associated with strategic initiatives. This was partially offset by benefits from productivity
initiatives.
Technology expenses increased $215 million (13%) driven by higher software licence costs, inflationary impacts on vendor costs, and the impact
from acquisition of Suncorp Bank including accelerated amortisation expense on alignment to the Group’s software capitalisation policy. This was
partially offset by benefits from technology simplification.
Restructuring expenses increased $66 million (39%) driven by operational changes across the Group.
Other expenses decreased $96 million (5%) driven by the initial one-off CSLR levy in the September 2023 full year and benefits from productivity
initiatives. This was partially offset by the impact from acquisition of Suncorp Bank.
37
40
40
ANZ 2024 Annual Report
Our Performance (continued)
Our Performance (continued)
Performance overview
41
Credit impairment
Gross impaired assets by division ($m)
Collectively assessed credit impairment charge/(release) ($m)
Individually assessed credit impairment charge/(release) ($m)
Credit impairment charge/(release) ($m)
Gross impaired assets ($m)
Credit risk weighted assets ($b)
Total allowance for expected credit losses (ECL) ($m)
Individually assessed allowance for ECL as % of gross impaired assets
Collectively assessed allowance for ECL as % of credit risk weighted assets
Collectively assessed credit impairment charge/(release) ($m)
2024
262
144
406
1,693
361.2
4,555
18.2%
1.18%
2023
152
93
245
1,521
349.0
4,408
24.7%
1.16%
Movt
72%
55%
66%
11%
3%
3%
350
43
1,521
(278)
66
36
0
1,693
(45)
152
(84)
88
(100)
(57)
2023 Gross
impaired assets
Australia
Retail
Australia
Commercial
Institutional
New Zealand
Suncorp Bank
Pacific
Group Centre
2024 Gross
impaired assets
244
16
3
262
Gross impaired assets increased $172 million (11%) driven by an increase in the Australia Retail division due to restructured home loan facilities,
the acquisition of Suncorp Bank, an increase in the Australia Commercial due to deterioration in the SME Banking portfolio, and an increase in the
New Zealand division due to portfolio deterioration across all portfolios. This was partially offset by a decrease in the Institutional division due to the
upgrade of several single name exposures, and the Pacific division due to reduced restructured exposures.
Total allowance for expected credit losses ($m)
248
3
4,555
(15)
2023 Collectively
assessed credit
impairment charge
Australia
Retail
Australia
Commercial
Institutional
New Zealand
Suncorp Bank
Pacific
Group Centre
2024 Collectively
assessed credit
impairment charge
The collectively assessed impairment charge of $262 million for 2024 was driven by acquisition accounting related adjustments for Suncorp
Bank, deterioration in credit risk profile across all divisions, and portfolio growth. This was partially offset by improvement in economic outlook and
a reduction in management temporary adjustments as anticipated risks are more represented in portfolio credit profiles. The collectively assessed
impairment charge of $152 million for 2023 was driven by deterioration in the economic outlook and credit risk. This was partially offset by
favourable changes in portfolio composition, particularly in the Institutional division.
Individually assessed credit impairment charge/(release) ($m)
Institutional
New Zealand
Suncorp Bank
Pacific
Group Centre
2024 Total
allowance
for expected
credit losses
30
16
4
0
144
(1)
20
(18)
93
The increase in total allowance for expected credit losses was driven by a $215 million increase in the collectively assessed allowance for
expected credit losses, partially offset by a $68 million decrease in the individually assessed allowance for expected credit losses.
The increase in collectively assessed allowance for expected credit losses was driven by deterioration in credit risk profile across all divisions
($267 million), the additional allowance for ECL from Suncorp Bank ($248 million), and portfolio growth ($88 million). This was partially offset by
reduction in management temporary adjustments ($201 million), improvement in economic outlook ($136 million), and reduction from foreign
currency translation and other impacts ($51 million).
impairment flows and continued write-backs.
The decrease in individually assessed allowance for expected credit losses was driven by a decrease in the Institutional division due to lower new
4,408
14
(38)
2023 Total
allowance
for expected
credit losses
Australia
Retail
Australia
Commercial
(55)
(10)
2023 Individually
assessed credit
impairment charge
Australia
Retail
Australia
Commercial
Institutional
New Zealand
Suncorp Bank
Pacific
Group Centre
2024 Individually
assessed credit
impairment charge
The individually assessed credit impairment charge increased $51 million (55%) driven by increases in the Australia Commercial division from SME
Banking portfolio, the Australia Retail division from unsecured portfolio and the New Zealand division from the Business & Agri portfolio, partially
offset by a decrease in the Institutional division due to lower new impairment flows.
38
39
ANZ 2024 Annual Report
40
ANZ 2024 Annual Report
Our Performance (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
41
41
Performance overview
Our Performance (continued)
information
Credit impairment
Gross impaired assets by division ($m)
Collectively assessed credit impairment charge/(release) ($m)
Individually assessed credit impairment charge/(release) ($m)
Credit impairment charge/(release) ($m)
Gross impaired assets ($m)
Credit risk weighted assets ($b)
Total allowance for expected credit losses (ECL) ($m)
Individually assessed allowance for ECL as % of gross impaired assets
Collectively assessed allowance for ECL as % of credit risk weighted assets
Collectively assessed credit impairment charge/(release) ($m)
2024
262
144
406
1,693
361.2
4,555
18.2%
1.18%
2023
152
93
245
1,521
349.0
4,408
24.7%
1.16%
Movt
72%
55%
66%
11%
3%
3%
350
43
1,521
(278)
66
36
0
1,693
(45)
2023 Gross
impaired assets
Australia
Retail
Australia
Commercial
Institutional
New Zealand
Suncorp Bank
Pacific
Group Centre
2024 Gross
impaired assets
244
16
3
262
Gross impaired assets increased $172 million (11%) driven by an increase in the Australia Retail division due to restructured home loan facilities,
the acquisition of Suncorp Bank, an increase in the Australia Commercial due to deterioration in the SME Banking portfolio, and an increase in the
New Zealand division due to portfolio deterioration across all portfolios. This was partially offset by a decrease in the Institutional division due to the
upgrade of several single name exposures, and the Pacific division due to reduced restructured exposures.
Total allowance for expected credit losses ($m)
248
3
4,555
(15)
4,408
14
(38)
(55)
(10)
2023 Total
allowance
for expected
credit losses
Australia
Retail
Australia
Commercial
Institutional
New Zealand
Suncorp Bank
Pacific
Group Centre
2024 Total
allowance
for expected
credit losses
The increase in total allowance for expected credit losses was driven by a $215 million increase in the collectively assessed allowance for
expected credit losses, partially offset by a $68 million decrease in the individually assessed allowance for expected credit losses.
The increase in collectively assessed allowance for expected credit losses was driven by deterioration in credit risk profile across all divisions
($267 million), the additional allowance for ECL from Suncorp Bank ($248 million), and portfolio growth ($88 million). This was partially offset by
reduction in management temporary adjustments ($201 million), improvement in economic outlook ($136 million), and reduction from foreign
currency translation and other impacts ($51 million).
The decrease in individually assessed allowance for expected credit losses was driven by a decrease in the Institutional division due to lower new
impairment flows and continued write-backs.
152
(84)
88
(100)
(57)
2023 Collectively
assessed credit
impairment charge
Australia
Retail
Australia
Commercial
Institutional
New Zealand
Suncorp Bank
Pacific
Group Centre
2024 Collectively
assessed credit
impairment charge
The collectively assessed impairment charge of $262 million for 2024 was driven by acquisition accounting related adjustments for Suncorp
Bank, deterioration in credit risk profile across all divisions, and portfolio growth. This was partially offset by improvement in economic outlook and
a reduction in management temporary adjustments as anticipated risks are more represented in portfolio credit profiles. The collectively assessed
impairment charge of $152 million for 2023 was driven by deterioration in the economic outlook and credit risk. This was partially offset by
favourable changes in portfolio composition, particularly in the Institutional division.
Individually assessed credit impairment charge/(release) ($m)
30
16
4
0
144
(1)
20
(18)
93
2023 Individually
assessed credit
impairment charge
Australia
Retail
Australia
Commercial
Institutional
New Zealand
Suncorp Bank
Pacific
Group Centre
2024 Individually
assessed credit
impairment charge
The individually assessed credit impairment charge increased $51 million (55%) driven by increases in the Australia Commercial division from SME
Banking portfolio, the Australia Retail division from unsecured portfolio and the New Zealand division from the Business & Agri portfolio, partially
offset by a decrease in the Institutional division due to lower new impairment flows.
38
39
42
42
ANZ 2024 Annual Report
Our Performance (continued)
Divisional performance
2024
Net interest margin1
Operating expenses to operating income
Cash profit ($m)
Net loans and advances ($b)
Customer deposits ($b)
Number of FTE
Australia
Australia
Retail Commercial
Institutional
New
Zealand
Suncorp
Bank2
1.91%
59.7%
1,607
332.5
176.8
10,832
2.59%
43.0%
1,342
65.0
116.3
3,294
0.75%
41.7%
2,858
210.5
264.4
6,272
2.57%
38.8%
1,536
123.5
100.9
6,756
1.93%
73.2%
(122)
70.9
54.7
Pacific
3.88%
64.5%
60
1.7
3.6
Group
Centre
n/a
n/a
(556)
(0.7)
(1.5)
Group
1.57%
51.6%
6,725
803.4
715.2
2,798
985
11,433
42,370
2023
Net interest margin1
Operating expenses to operating income
Cash profit ($m)
Net loans and advances ($b)
Customer deposits ($b)
Number of FTE
Australia
Australia
Retail Commercial
Institutional
New
Zealand
Suncorp
Bank
2.22%
54.3%
1,938
312.2
164.8
11,313
2.70%
39.6%
1,440
61.6
113.4
3,514
0.89%
40.5%
2,949
210.2
266.5
6,366
2.64%
36.5%
1,546
121.8
99.1
6,766
-
-
-
-
-
-
Pacific
3.91%
69.7%
71
1.7
3.7
Group
Centre
n/a
n/a
(531)
(0.5)
(0.3)
Group
1.70%
48.5%
7,413
707.0
647.1
1,013
11,370
40,342
1. The net interest margin excluding Markets business unit was 2.35% (2023: 2.39%) for the Group and 2.38% (2023: 2.31%) for the Institutional division.
2. Suncorp Bank 2024 Cash profit includes Suncorp Bank acquisition related adjustment charge after tax of $196 million.
40
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Performance overview
information
43
43
Our Performance (continued)
Divisional performance
Australia Retail
Lending volumes increased driven by home loan growth. Net interest margin decreased driven by margin contraction from home loan
and deposit pricing competition, unfavourable deposit mix with a shift towards lower margin term deposits, and higher net funding
costs. This was partially offset by higher earnings on capital and replicating portfolio. Operating expenses increased driven by
inflationary impacts and incremental costs associated with strategic initiatives including ANZ Plus, partially offset by lower restructuring
expense, and benefits from productivity initiatives. Credit impairment charge decreased primarily driven by lower collectively assessed
credit impairment, partially offset by higher individually assessed credit impairment charge due to higher new impairment flows in the
unsecured portfolio.
Australia Commercial
Lending volumes increased driven by Diversified & Specialist Businesses, partially offset by lower lending in Central Functions and SME
Banking. Net interest margin decreased driven by unfavourable deposit mix with a shift towards lower margin term deposits, asset
margin contraction from pricing competition, and higher net funding costs. This was offset by favourable deposit margins and higher
earnings on capital and replicating portfolio. Other operating income decreased driven by a decrease in non-lending fees and a gain on
sale of Investment Lending business in the prior year. Operating expenses increased driven by higher restructuring expense and
inflationary impacts, partially offset by benefits from productivity initiatives. Credit impairment charge decreased driven by lower
collectively assessed credit impairment, partially offset by higher individually assessed credit impairment charge due to higher new
impairment flows in the SME Banking portfolio.
Institutional
Lending volumes increased driven by higher Markets balances, partially offset by lower core lending in Transaction Banking. Net interest
margin ex-Markets increased driven by higher earnings on capital. Other operating income increased driven by higher Markets
revenues in the customer franchise business lines. Operating expenses increased driven by inflationary impacts and higher restructuring
expense, partially offset by benefits from productivity initiatives. Credit impairment release decreased driven by higher collectively
assessed credit impairment, partially offset by higher individually assessed credit impairment release due to lower new impairment flows.
New Zealand
Lending volumes increased driven by home loan growth, partially offset by contraction in business lending. Net interest margin
decreased driven by unfavourable deposit margin, unfavourable deposit mix with a shift towards lower margin term deposits. This was
partially offset by lower net funding costs and higher earnings on capital. Other operating income decreased driven by a gain on
disposal of data centres in New Zealand in the prior year. Operating expenses increased driven by inflationary pressure, higher
restructuring expense and seasonal factors, partially offset by benefits from productivity initiatives. Credit impairment charge decreased
driven by lower collectively assessed credit impairment flows, partially offset by higher individually assessed credit impairment due to
higher new impairments mainly in the Business & Agri portfolio.
Suncorp Bank
2024 results include 2 months results from the date of acquisition. This includes acquisition related adjustments of $196 million loss
after tax comprising a collectively assessed credit impairment charge of $244 million ($171 million after tax) for Suncorp Bank’s
performing loans and advances, and an accelerated software amortisation expense of $36 million ($25 million after tax) on alignment to
the Group’s software capitalisation policy.
Pacific
Cash profit decreased driven by lower credit impairment release, partially offset by lower expenses and higher other operating income.
Group Centre
Cash loss increased primarily driven by lower equity accounted earnings and a loss on sale following the disposal of AmBank, partially
offset by increases driven by a number of non-recurring items in the prior year, including unfavourable valuation adjustment from
investments measured at fair value through profit or loss in the prior year, and a loss on disposal of data centres in Australia.
41
44
44
ANZ 2024 Annual Report
Our Performance (continued)
Economic profit
Economic profit is a risk adjusted profit measure used to evaluate business unit performance. This is used for internal management purposes and
is not subject to audit by the external auditor.
At a business unit level, capital is allocated based on regulatory capital such that higher risk businesses attract higher levels of capital. This method
is designed to help drive appropriate risk management and ensure business returns align with the level of risk. Key risks covered include credit risk,
operational risk, market risk and other risks.
Economic profit is calculated via a series of adjustments to cash profit:
The economic credit cost adjustment replaces the accounting expected credit loss charge with internal expected loss based on the average
long-run loss rate per annum on the portfolio over an economic cycle.
The benefit of imputation credits is recognised, estimated based on 70% of Australian tax.
The cost of capital is a major component of economic profit. At an ANZ Group level, this is calculated using average ordinary shareholders’
equity (excluding non-controlling interests), multiplied by the cost of capital rate (currently at 9.75%).
Economic profit decreased from $1,307 million to $471 million. The $836 million decrease was driven by $688 million lower cash profit,
$202 million higher cost of capital from higher levels of capital (with the cost of capital rate of 9.75% unchanged), and $30 million lower
imputation credits, partially offset by $84 million favourable economic credit cost adjustment.
42
ANZ 2024 Annual Report Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Performance overview
information
Our Performance (continued)
45
45
Financial position of the Group
Condensed balance sheet
Assets
Cash / Settlement balances owed to ANZ / Collateral paid
Trading assets and investment securities
Derivative financial instruments
Net loans and advances
Other
Total assets
Liabilities
Settlement balances owed by ANZ / Collateral received
Deposits and other borrowings
Derivative financial instruments
Debt issuances
Other
Total liabilities
Total equity
2024
$b
166.6
186.3
54.4
803.4
18.4
As at
2023
$b
186.1
134.4
60.4
707.0
17.7
1,229.1
1,105.6
22.8
903.6
55.3
156.4
20.4
1,158.5
70.6
29.7
814.7
57.5
116.0
17.7
1,035.6
70.0
Movt
-10%
39%
-10%
14%
4%
11%
-23%
11%
-4%
35%
15%
12%
1%
Cash / Settlement balances owed to ANZ / Collateral paid decreased $19.5 billion (10%) driven by decreases in balances with central banks,
and settlement balances owed to ANZ, and the impact of foreign currency translation. This was partially offset by increases in reverse repurchase
agreements and overnight interbank deposits.
Trading assets and investment securities increased $51.9 billion (39%) driven by an increase in government and semi-government bonds, and
treasury bills, and the acquisition of Suncorp Bank ($11.6 billion), partially offset by the impact of foreign currency translation.
Net loans and advances increased $96.4 billion (14%) driven by the acquisition of Suncorp Bank ($70.9 billion), increases in the Australia Retail
($20.3 billion) and New Zealand ($3.2 billion) divisions due to home loan growth, and higher lending volumes in the Institutional ($5.2 billion) and
Australia Commercial ($3.5 billion) divisions, partially offset by the impact of foreign currency translation.
Settlement balances owed by ANZ / Collateral received decreased $6.9 billion (23%) driven by decreases in collateral received and cash clearing
accounts.
Deposits and other borrowings increased $88.9 billion (11%) driven by the acquisition of Suncorp Bank ($62.3 billion), higher customer deposits
in the Australia Retail ($12.0 billion), Institutional ($7.2 billion), New Zealand ($3.1 billion) and Australia Commercial ($2.9 billion) divisions, increases
in commercial paper ($14.5 billion), and deposits from banks and repurchase agreements ($8.8 billion), partially offset by the impact of foreign
currency translation.
Debt issuances increased $40.4 billion (35%) driven by the issue of new senior and subordinated debt, including ANZ Capital Notes 9, partially
offset by the redemption of ANZ Capital Notes 4, and the acquisition of Suncorp Bank ($16.6 billion).
Total equity increased $0.6 billion (1%) with increases in retained earnings partially offset by $0.9 billion reduction in ordinary share capital
following the commencement of a $2 billion on-market share buy-back on 3 July 2024.
43
46
46
ANZ 2024 Annual Report
Our Performance (continued)
Liquidity
ANZBGL Group
Total liquid assets ($b) 1
Liquidity Coverage Ratio (LCR) 1
Average
2024
273.9
133%
2023
268.3
130%
1. Full year average, calculated as prescribed per APRA Prudential Regulatory Standard (APS 210 Liquidity) and consistent with APS 330 requirements.
The Group operates under a non-operating holding company structure whereby:
ANZBGL’s liquidity risk management framework remains unchanged and continues to operate its own liquidity and funding program,
governance frameworks and reporting regime reflecting its Authorised Deposit-taking Institution (ADI) operations;
ANZGHL (parent entity) has no material liquidity risk given the structure and nature of the balance sheet; and
ANZ Non-Bank Group is not expected to have separate funding arrangements and will rely on ANZGHL for funding.
Furthermore, a separate liquidity policy has been established for ANZGHL and ANZBGL Group to reflect the differing nature of liquidity risk inherent
in each business model. The Group will ensure that the parent entity and ANZ Non-Bank Group holds sufficient cash reserves to meet operating
and financing requirements.
ANZBGL Group holds a portfolio of high quality unencumbered liquid assets in order to protect the ANZBGL Group’s liquidity position in a severely
stressed environment, as well as to meet regulatory requirements. High Quality Liquid Assets comprise three categories, with the definitions
consistent with Basel 3 LCR:
Highest-quality liquid assets (HQLA1): Cash, highest credit quality government, central bank or public sector securities eligible for repurchase
with central banks to provide same-day liquidity.
High-quality liquid assets (HQLA 2): High credit quality government, central bank or public sector securities, high quality corporate debt
securities and high quality covered bonds eligible for repurchase with central banks to provide same-day liquidity.
Alternative liquid assets (ALA): Eligible securities listed by the RBNZ.
ANZBGL Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory
requirements and the risk appetite set by the ANZBGL Board.
The LCR remained above the regulatory minimum of 100% throughout this period.
Funding
ANZ Bank Group
Customer liabilities (funding)
Wholesale funding
Shareholders’ equity
Total funding1
Net Stable Funding Ratio
2024
$b
729.5
376.6
68.8
1,174.9
116%
2023
$b
659.1
316.8
69.1
1,045.0
116%
1. Includes $79.1 billion of funding from the acquisition of Suncorp Bank.
The Group targets a diversified funding base, avoiding undue concentrations by investor type, maturity, market source and currency.
Net Stable Funding Ratio remained above the regulatory minimum of 100% throughout this period.
During 2024, the ANZBGL Group issued $41.6 billion of term wholesale funding (including $3.7 billion of pre-funding for the September 2025 full
year, $1.4 billion of Suncorp Bank issuance and $0.8 billion of perpetual subordinated notes issued by ANZ Holdings (New Zealand) Limited). In
addition, $1.7 billion of APRA compliant Additional Tier 1 capital and $0.3 billion of RBNZ compliant additional tier 1 capital was issued.
44
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Performance overview
information
Our Performance (continued)
47
47
Capital management
Common Equity Tier 1 (Level 2)
- APRA Basel III
Credit risk weighted assets ($b)
Total risk weighted assets ($b)
APRA Leverage Ratio
2024
2023
Movt
12.2%
361.2
446.6
4.7%
13.3%
349.0
433.3
5.4%
3%
3%
The Group’s capital management framework includes managing capital at Level 1, Level 2 and ANZGHL Group.
The Group’s framework includes managing to Board approved risk appetite settings and maintaining all regulatory requirements. APRA
requirements at Level 1 and Level 2 include ANZ operating at or above APRA’s expectation for Domestic Systematically Important Banks (D-SIBs).
APRA’s authority for ANZGHL to be a non-operating holding company (NOHC) of an ADI includes five conditions for ANZ’s capital management
framework. All five conditions were satisfied at 30 September 2024.
ANZ Bank Group
APRA, under the authority of the Banking Act 1959, sets minimum regulatory requirements for banks including what is acceptable as regulatory
capital and provides methods of measuring the risks incurred by ANZ Bank Group.
The ANZ Bank Group’s Common Equity Tier 1 ratio was 12.2% based on APRA Basel III standards, exceeding APRA’s minimum requirements. It
decreased 114 bps driven by the impact of dividends paid during the year, acquisition of Suncorp Bank, the transfer of capital from ANZBGL to
ANZGHL to fund $2 billion share buy-back, and underlying RWA movement. This was partially offset by cash earnings, proceeds from disposal of
investment in AmBank and mortgage RWA modelling initiatives.
At 30 September 2024, ANZ Bank Group’s leverage ratio was 4.7% which is above the 3.5% minimum for internal ratings-based approach ADI,
including ANZ.
Dividends
Our financial performance allowed us to propose that a final dividend of 83 cents be paid on each eligible fully paid ANZ ordinary share, partially
franked at 70% for Australian taxation purposes, bringing the total dividend for the 2024 financial year to 166 cents per share. This represents a
dividend payout ratio of 73.9% of cash profit.
The final dividend will be paid on 20 December 2024 to owners of ordinary shares at the close of business on 14 November 2024 (record date),
and carries New Zealand imputation credits of NZD 12 cents per ordinary share.
ANZ has a Dividend Reinvestment Plan (DRP) and a Bonus Option Plan (BOP) that will operate in respect of the proposed 2024 final dividend. For
the 2024 final dividend, ANZ intends to provide shares under the DRP through an on-market purchase and BOP through the issue of new shares.
Further details on dividends provided for or paid during the year ended 30 September 2024 are set out in Note 6 Dividends in the Financial
Report.
Shareholders Returns
Earnings per share –
cash (cents)
Dividend per share
(cents)
Dividend payout
ratio - cash (%)
Total shareholder
return (%)
2024
2023
224.3
247.3
2024
2023
166.0
175.0
2024
2023
73.9
70.9
2024
2023
27.0
20.0
45
4848
ANZ 2024 Annual Report
Remuneration Report
Remuneration report
Holly Kramer
Chair – People & Culture
Committee
Contents
1. Who is covered by
this report
2. Remuneration at
a glance
3. Historical information
4. Executive performance
and remuneration
framework overview
5. Executive remuneration
outcomes
50
51
52
54
61
6. Accountability and
Consequence Framework
71
7. Non-Executive
Director (NED)
remuneration
8. Remuneration
governance
9. Other remuneration
information
74
76
78
risks have been well managed.
Therefore, the challenge has been to
balance the reward for good overall
performance, with the need to apply
consequences fairly and appropriately to
reflect the impact of these recent events
on ANZ’s reputation, and customer,
shareholder and regulator confidence.
2024 remuneration outcomes
Short Term Variable Remuneration
(STVR) – Awarded
The ANZ Group Scorecard performance
is a key component informing STVR
outcomes for the Chief Executive Officer
(CEO) and Disclosed Executives, as well as
the majority of ANZ Group employees. The
2024 Group Scorecard performance was
assessed at 99% of target. However, with
the application of the Risk Modifier, the
overall scorecard performance reduced
to 90%/Below Target.
In order to improve clarity and alignment
to the ANZ Group Scorecard, the Board
determined that for 2024, the CEO’s STVR
would be based on 100% of the ANZ
Group Scorecard results, with allowance
for a CEO Leadership Modifier adjustment
focused on the CEO’s leadership of key
strategic priorities and risk management
(Section 5.1.2).
In the Board’s assessment, the CEO
Shayne Elliott, has continued to
demonstrate good leadership of the
Group and we have therefore assessed
him as on target for the CEO Leadership
Modifier component of his assessment.
Specifically, his leadership of key strategic
objectives has positioned ANZ well for the
future, and he is consistently a role model
of ANZ’s values and behaviours. Given,
however, that the CEO has ultimate
accountability for the broader Group’s
performance, the CEO needs to bear
appropriate accountability for the impact
of the Markets and NFR matters. As a
result, the Board applied its discretion
and assessed the CEO’s performance
as Below Target, and determined the
appropriate 2024 STVR outcome was
65% of target opportunity (52% of
maximum opportunity).
2024 Remuneration
Report – audited
Dear Shareholder,
Following a record performance in 2023,
the ANZ team has delivered another year
of strong financial results, along with
significant progress on our strategic
agenda, including completion of the
acquisition of Suncorp Bank and
significant growth in customers joining
our ANZ Plus platform. For shareholders,
we have delivered 27% Total Shareholder
Return (TSR) in financial year 2024, and
we also announced an on market share
buy-back in May 2024.
Two years ago, the Board revised the
executive remuneration structure to
ensure compliance with CPS 511
Remuneration and to ensure that the
Board had levers within the framework to
take into account business and leadership
performance, as well as the management
of financial and non-financial risk. This
year, the Board applied these levers with
respect to 2024 remuneration outcomes,
including as a result of a series of issues
stemming from our Markets business, and
an additional $250m capital overlay
imposed by APRA due to Non-Financial
Risk (NFR) matters. (Note: these issues are
outlined in the ‘Chairman’s message’ of the
Annual Report, and in this report we have
referenced the specific instances where
consequences have been considered and
applied, with an overall summary outlined
in Section 6).
Notwithstanding these issues, the
Board considers that the business has
performed well in 2024, and financial
For Disclosed Executives, the Board
approved 2024 STVR outcomes which
range from 50% to 88% of target (average
ANZ 2024 Annual Report 48
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
49
49
Remuneration report
risks have been well managed.
Therefore, the challenge has been to
balance the reward for good overall
performance, with the need to apply
consequences fairly and appropriately to
reflect the impact of these recent events
on ANZ’s reputation, and customer,
shareholder and regulator confidence.
2024 remuneration outcomes
Short Term Variable Remuneration
(STVR) – Awarded
The ANZ Group Scorecard performance
is a key component informing STVR
outcomes for the Chief Executive Officer
(CEO) and Disclosed Executives, as well as
the majority of ANZ Group employees. The
2024 Group Scorecard performance was
assessed at 99% of target. However, with
the application of the Risk Modifier, the
overall scorecard performance reduced
to 90%/Below Target.
In order to improve clarity and alignment
to the ANZ Group Scorecard, the Board
determined that for 2024, the CEO’s STVR
would be based on 100% of the ANZ
Group Scorecard results, with allowance
for a CEO Leadership Modifier adjustment
focused on the CEO’s leadership of key
strategic priorities and risk management
(Section 5.1.2).
In the Board’s assessment, the CEO
Shayne Elliott, has continued to
demonstrate good leadership of the
Group and we have therefore assessed
him as on target for the CEO Leadership
Modifier component of his assessment.
Specifically, his leadership of key strategic
objectives has positioned ANZ well for the
future, and he is consistently a role model
Holly Kramer
Chair – People & Culture
Committee
Contents
1. Who is covered by
this report
2. Remuneration at
a glance
3. Historical information
4. Executive performance
and remuneration
framework overview
5. Executive remuneration
outcomes
7. Non-Executive
Director (NED)
remuneration
8. Remuneration
governance
9. Other remuneration
information
6. Accountability and
Consequence Framework
71
50
51
52
54
61
74
76
78
2024 Remuneration
Report – audited
Dear Shareholder,
Following a record performance in 2023,
the ANZ team has delivered another year
of strong financial results, along with
significant progress on our strategic
agenda, including completion of the
acquisition of Suncorp Bank and
significant growth in customers joining
our ANZ Plus platform. For shareholders,
we have delivered 27% Total Shareholder
Return (TSR) in financial year 2024, and
we also announced an on market share
buy-back in May 2024.
Two years ago, the Board revised the
executive remuneration structure to
ensure compliance with CPS 511
Remuneration and to ensure that the
Board had levers within the framework to
take into account business and leadership
performance, as well as the management
of financial and non-financial risk. This
year, the Board applied these levers with
respect to 2024 remuneration outcomes,
of ANZ’s values and behaviours. Given,
including as a result of a series of issues
however, that the CEO has ultimate
stemming from our Markets business, and
accountability for the broader Group’s
an additional $250m capital overlay
performance, the CEO needs to bear
imposed by APRA due to Non-Financial
appropriate accountability for the impact
Risk (NFR) matters. (Note: these issues are
of the Markets and NFR matters. As a
outlined in the ‘Chairman’s message’ of the
result, the Board applied its discretion
Annual Report, and in this report we have
and assessed the CEO’s performance
referenced the specific instances where
as Below Target, and determined the
consequences have been considered and
appropriate 2024 STVR outcome was
applied, with an overall summary outlined
65% of target opportunity (52% of
in Section 6).
maximum opportunity).
Notwithstanding these issues, the
For Disclosed Executives, the Board
Board considers that the business has
approved 2024 STVR outcomes which
performed well in 2024, and financial
range from 50% to 88% of target (average
Non-Executive
Director (NED) fees
For 2024 there was a 2% uplift to the
NED member fee, and uplifts to fees for
Committee chairs and members. There
was no change to the fees for the Board
Chair (Section 7.1).
In closing, and on behalf of my Board
colleagues, I’d like to thank all of our
ANZ employees for their important
contributions this past year. While
the year has been marked by some
challenges in the bank, underlying
performance was strong and we have
made meaningful progress on our
long-term goals.
Holly Kramer
Chair – People & Culture Committee
75%). This reflects their individual and
Divisional performance, the Below Target
assessment for Group performance,
collective accountability for the NFR
matters, and individual consequences
(where relevant) for the Markets matters.
Long Term Variable Remuneration
(LTVR) – Lapsed/Granted
The performance rights granted in late
2019 to the CEO and relevant Disclosed
Executives did not meet the hurdles when
tested at the end of the performance
period in November 2023, therefore 100%
of these performance rights lapsed.
Last year, the 2024 LTVR (comprised
of 50% performance rights and 50%
restricted rights), was granted to the
CEO and Disclosed Executives at full
opportunity, following the Board’s pre grant
assessment in October 2023 for restricted
rights, determining that no reduction was
required. For the CEO, the 2024 LTVR grant
was $3,375,000, noting that LTVR is future
focused and vests over time.
In considering the pre grant assessment
for the 2025 LTVR, the Board has chosen
to adjust the restricted rights (which make
up 50% of LTVR at full opportunity),
downward by 10%, due to the risk matters
discussed above. The CEO’s proposed
2025 LTVR of $3,206,250, will be subject
to a shareholder vote at the upcoming
2024 Annual General Meeting (AGM).
Fixed remuneration
Effective for 2024, Disclosed Executives
(excluding the CEO), received a Fixed
Remuneration (FR) adjustment to maintain
or improve market positioning. There were
no further increases to FR for 2024.
Changes to the way we
remunerate executives
(from 2024 onward)
For LTVR awards of performance rights,
only from financial year 2024 onward,
the Board approved in July 2023:
• the removal of DBS Bank Limited from
the Select Financial Services (SFS)
relative TSR comparator group, to better
balance the weighting of international
peers in our comparator group; and
• that Compound Annual Growth Rate
(CAGR) targets for the absolute CAGR
TSR hurdle be based on the time
weighted Cost of Capital (CoC) over the
four-year performance period rather
than the CoC at the start of the period,
to better reflect cyclical factors
impacting shareholders.
In addition, post the Suncorp Bank
acquisition and applicable to both awards
currently on foot and future LTVR awards
of performance rights, the Board approved
the removal of Suncorp Group Limited
from the relative TSR SFS comparator
group (Section 9.1).
Changes to the way we
remunerate executives
(from 2025 onward)
In 2024, the People & Culture
Committee recommended, and
the Board approved, changes to
the ANZ Group Scorecard and
performance approach for
financial year 2025 onward.
The intention is to provide a
greater focus on fewer, more
meaningful objectives that will
drive sustainable long-term
performance, and to provide a
more transparent link between
performance and remuneration
outcomes. This approach is also
consistent with shareholder
feedback.
The key changes arising from this
review will be effective from 2025,
and are summarised as follows:
• reduction in the number of
objectives and indicators;
• provision of weightings for each
objective rather than at the
category level only;
• introduction of threshold/target/
stretch targets for each indicator;
• increase in the performance
assessment weighting for Group
performance for frontline
Disclosed Executives, from 25%
to 40%, to recognise the increase
in Group-wide priorities (excluding
Group Executive and CEO, New
Zealand); and
• increase in the weighting of
financial measures from 40%
to 50% in our Group and
Divisional Scorecards.
50
50
ANZ 2024 Annual Report
The Remuneration Report for ANZ Group Holdings Limited (ANZGHL) outlines our remuneration strategy and structure
and the remuneration practices that apply to Key Management Personnel (KMP). This report has been prepared, and
audited, as required by the Corporations Act 2001. It forms part of the Directors’ Report.
This report includes disclosures for the full financial year 2024 (1 October 2023 to 30 September 2024). Ordinary shares and employee
equity (deferred shares, deferred share rights, restricted rights and performance rights) held prior to 3 January 20231 were previously
ANZBGL related equity – post the listing of ANZGHL, the equity was converted to ANZGHL related equity. References to ‘the Board’
throughout this report mean the Boards of ANZGHL and ANZBGL.
1. Who is covered by this report
1.1 Disclosed Executive and Non-Executive Director changes
1.2 Key Management Personnel (KMP)
KMP are Directors of the Group (or entity)
(whether executive directors or otherwise),
and those personnel with a key
responsibility for the strategic direction
and management of the Group (or entity)
(i.e., members of the Group Executive
Committee (ExCo)) who have Financial
Accountability Regime (FAR) Accountability
and who report to the CEO (referred to as
Disclosed Executives).
1.1 Disclosed Executive
and Non-Executive Director
changes
There were several changes to our KMP
during the 2024 year:
• Ilana Atlas and John Macfarlane retired
as Non-Executive Directors (NEDs) on
21 December 2023, at the conclusion
of the 2023 AGM.
• Richard Gibb commenced as a NED
on 15 February 2024.
• Following Sir John Key retiring as
a NED on 14 March 2024, Scott
St John commenced as a NED on
25 March 2024.
• Richard Howell concluded as Acting
Group Executive, Talent & Culture on
8 October 2023 following the
appointment of Elisa Clements to the
role of Group Executive, Talent &
Culture, effective 9 October 2023.
1.2 Key Management Personnel (KMP)
The KMP whose remuneration is disclosed in this year’s report are:
2024 Non-Executive Directors (NEDs) – Current
P O’Sullivan
Chairman
R Gibb
J Halton
H Kramer
C O’Reilly
J Smith
Director from 15 February 2024
Director
Director
Director
Director
S St John
Director from 25 March 2024
2024 Non-Executive Directors (NEDs) – Former
I Atlas
J Key
Former Director – retired 21 December 2023
Former Director – retired 14 March 2024
J Macfarlane
Former Director – retired 21 December 2023
2024 Chief Executive Officer (CEO) and Disclosed Executives – Current
S Elliott
CEO and Executive Director
M Carnegie
Group Executive, Australia Retail
E Clements
Group Executive, Talent & Culture (GE T&C) from 9 October 2023
K Corbally
Chief Risk Officer (CRO)
F Faruqui
G Florian
Chief Financial Officer (CFO)
Group Executive, Technology & Group Services
C Morgan
Group Executive, Australia Commercial
A Strong
Group Executive, Strategy & Transformation
A Watson
Group Executive and CEO, New Zealand
M Whelan
Group Executive, Institutional
2024 Disclosed Executives – Former
R Howell
Former Acting Group Executive, Talent & Culture (GE T&C) – concluded
in role 8 October 2023
No changes to KMP since the end of 2024 up to the date of signing the
Directors’ Report.
1. ANZ Group Holdings Limited (ANZGHL) replaced Australia and New Zealand Banking Group Limited (ANZBGL) as the listed entity on 3 January 2023 under a scheme of arrangement
approved by shareholders at the AGM on 15 December 2022.
ANZ 2024 Annual Report 50
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
51
51
The Remuneration Report for ANZ Group Holdings Limited (ANZGHL) outlines our remuneration strategy and structure
and the remuneration practices that apply to Key Management Personnel (KMP). This report has been prepared, and
audited, as required by the Corporations Act 2001. It forms part of the Directors’ Report.
2. Remuneration at a glance
This report includes disclosures for the full financial year 2024 (1 October 2023 to 30 September 2024). Ordinary shares and employee
equity (deferred shares, deferred share rights, restricted rights and performance rights) held prior to 3 January 20231 were previously
ANZBGL related equity – post the listing of ANZGHL, the equity was converted to ANZGHL related equity. References to ‘the Board’
throughout this report mean the Boards of ANZGHL and ANZBGL.
For 2024
CEO:
Disclosed Executives:
NEDs:
• No Fixed Remuneration (FR) increase.
• Received a Fixed Remuneration
• Awarded STVR of 65% of target (52%
of maximum opportunity), reflecting
his overall performance assessment
of Below Target.
• Awarded LTVR of $3,375,000
(following 2023 AGM shareholder
approval).
• Received 2024 total remuneration of
$4.1m (inclusive of the value of prior
equity awards which vested in 2024)
(Section 5.3).
adjustment effective 1 October 2023
to maintain or improve market
positioning (approved October 2023
by the Board) – no further FR
increases for 2024.
• Awarded STVR outcomes averaging
75% of target (60% of maximum
opportunity), with individual outcomes
ranging from 50% to 88% of target
(40% to 71% of maximum
opportunity).
• Awarded LTVR full opportunity of
135% of FR (100% of FR for the CRO)
– as LTVR is future focused, 2024
LTVR awards were approved in
October 2023 by the Board.
Following the 2024 NED fees review
in September 2023 (approved by the
People & Culture Committee):
• Received a 2% increase to the NED
member fee to $245,000 (unchanged
since 2016).
• Aligned fee structure across all
Committees increasing each
Committee chair fee to $68,000
and each Committee member fee
to $34,000.
• Board Chairman fee remains
unchanged.
Restricted rights and performance rights outcomes:
• 2024 LTVR restricted rights made at full award value following the 2024 LTVR
pre grant assessment in October 2023 by the Board.
• 100% of the 2019 performance rights award granted in late 2019 were lapsed, as
performance hurdles were not met when tested in November 2023 – end of the
performance period.
1.2 Key Management Personnel (KMP)
The KMP whose remuneration is disclosed in this year’s report are:
2024 Non-Executive Directors (NEDs) – Current
P O’Sullivan
Chairman
Director from 15 February 2024
R Gibb
J Halton
H Kramer
C O’Reilly
J Smith
Director
Director
Director
Director
S St John
Director from 25 March 2024
1. Who is covered by this report
1.1 Disclosed Executive and Non-Executive Director changes
1.2 Key Management Personnel (KMP)
KMP are Directors of the Group (or entity)
(whether executive directors or otherwise),
and those personnel with a key
responsibility for the strategic direction
and management of the Group (or entity)
(i.e., members of the Group Executive
Committee (ExCo)) who have Financial
Accountability Regime (FAR) Accountability
and who report to the CEO (referred to as
Disclosed Executives).
1.1 Disclosed Executive
and Non-Executive Director
changes
There were several changes to our KMP
during the 2024 year:
• Ilana Atlas and John Macfarlane retired
as Non-Executive Directors (NEDs) on
of the 2023 AGM.
• Richard Gibb commenced as a NED
on 15 February 2024.
• Following Sir John Key retiring as
a NED on 14 March 2024, Scott
St John commenced as a NED on
25 March 2024.
2024 Non-Executive Directors (NEDs) – Former
I Atlas
J Key
Former Director – retired 21 December 2023
Former Director – retired 14 March 2024
21 December 2023, at the conclusion
J Macfarlane
Former Director – retired 21 December 2023
2024 Chief Executive Officer (CEO) and Disclosed Executives – Current
S Elliott
CEO and Executive Director
M Carnegie
Group Executive, Australia Retail
E Clements
Group Executive, Talent & Culture (GE T&C) from 9 October 2023
K Corbally
Chief Risk Officer (CRO)
• Richard Howell concluded as Acting
Group Executive, Talent & Culture on
8 October 2023 following the
F Faruqui
G Florian
Chief Financial Officer (CFO)
Group Executive, Technology & Group Services
appointment of Elisa Clements to the
C Morgan
Group Executive, Australia Commercial
role of Group Executive, Talent &
Culture, effective 9 October 2023.
A Strong
Group Executive, Strategy & Transformation
A Watson
Group Executive and CEO, New Zealand
M Whelan
Group Executive, Institutional
2024 Disclosed Executives – Former
R Howell
Former Acting Group Executive, Talent & Culture (GE T&C) – concluded
in role 8 October 2023
No changes to KMP since the end of 2024 up to the date of signing the
Directors’ Report.
1. ANZ Group Holdings Limited (ANZGHL) replaced Australia and New Zealand Banking Group Limited (ANZBGL) as the listed entity on 3 January 2023 under a scheme of arrangement
approved by shareholders at the AGM on 15 December 2022.
52
52
ANZ 2024 Annual Report
3. Historical information
3.1 Five-year ANZ financial performance summary
3.2 Historical performance and remuneration outcomes
3.3 ANZ TSR performance (1 to 10 years)
3.1 Five-year ANZ financial performance summary
When determining variable remuneration outcomes for the CEO, Disclosed Executives and employees, a range of different financial
indicators are considered. The Group uses cash profit as a measure of performance for the Group’s ongoing business activities, as
this provides a basis to assess Group and Divisional performance against earlier periods and against peer institutions.
The adjustments made in arriving at cash profit are included in statutory profit which is subject to audit. Although cash profit is not
audited, the external auditor has informed the Audit Committee that the cash profit adjustments have been determined on a
consistent basis across each period presented.
2024 statutory profit is down 8% compared to the prior financial year, while cash profit is down 9%, with both metrics impacted by
one-off Suncorp Bank acquisition related adjustments. Excluding the one-off adjustments, statutory profit is down 5% and cash profit
is down 7%.
During 2024 the Group commenced a $2 billion share buy-back to return surplus capital to its shareholders, which up to
30 September 2024 has resulted in the Group returning $883m of capital to shareholders via the acquisition of 30 million shares
on the market.
ANZ’s financial performance1, including cash profit2, over the last five years.
Statutory profit attributable to
ordinary shareholders ($m)
Cash profit
($m, unaudited)
2024
2023
2022
2021
2020
6,535
7,106
7,119
6,162
3,577
2024
2023
2022
2021
2020
6,725
7,413
6,496
6,181
3,660
Cash profit - continuing operations
($m, unaudited)
Cash profit before provisions -
continuing operations ($m, unaudited)
2024
2023
2022
2021
2020
6,725
7,413
6,515
6,198
3,758
2024
2023
2022
2021
2020
10,068
10,766
8,968
8,396
8,369
Return on equity - cash (%) -
continuing operations (unaudited)
Earnings per share - cash - continuing
operations (unaudited)
2024
2023
2022
2021
2020
9.7
11.0
10.4
9.9
6.2
2024
2023
2022
2021
2020
224.3
247.3
228.8
216.5
128.7
1. The Group completed the divestment of its Aligned Dealer Group business, its Onepath Pensions and Investment business, and life insurance business across the 2020 and 2019
financial years. The financial results of these divested businesses were treated as discontinued operations in the 2022, 2021 and 2020 years. The Group ceased reporting discontinued
and continuing operations from completion in 2022. On 1 October 2023, the Group adopted AASB 17 Insurance Contracts (AASB 17), applied AASB 17 effective 1 October 2022 and
restated prior period comparative information. 2. Cash profit excludes non-core items included in statutory profit with the net after tax adjustment resulting in a decrease to statutory
profit of $190m for 2024, made up of several items. It is provided to assist readers understand the results of the core business activities of the Group.
ANZ 2024 Annual Report 52
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
53
53
3.2 Historical performance and remuneration outcomes
The table below shows the link between financial performance and variable remuneration outcomes over the past five years. STVR
outcomes are reasonably aligned with financial performance trends over the corresponding 2020 to 2024 periods, noting that the 2023
STVR outcomes were higher reflecting that year’s record result.
CEO STVR1 outcome (% of target)
Disclosed Executive STVR2 outcome (average % of target3)
2020
50%5
54%5
2021
80%
90%
2022
93%
97%
2023
120%
111%
2024
65%
75%
Disclosed Executive STVR2 outcome (range % of target3)
46%–66%
69%–99% 89%–120% 100%–125%
50%–88%
LTVR/VR PR vesting outcome (% vested)
Share price4 at 30 September ($)
Total dividend (cents per share)
Total shareholder return (12 month %)
0%
17.22
60
-36.9
43.3%
28.15
142
70.7
51.6%
22.8
146
-14
n/a
25.66
175
20
0%
30.48
166
27.0
1. Previously referred to as AVR pre-2022 for the CEO. 2. Previously referred to as VR pre-2022 for Disclosed Executives. 3. Pre 2022, % of target applied to the full VR due to the
combined VR structure for Disclosed Executives in those years. 4. On 1 October 2019, opening share price was $28.22. 5. Post 50% COVID-19 reduction.
3.3 ANZ TSR performance (1 to 10 years)
The table below compares ANZ’s TSR performance against the median TSR and upper quartile TSR of the performance rights Select
Financial Services (SFS) comparator group1 over one to ten years, noting that for this table TSR is measured over a different timeframe
(i.e., to 30 September 2024) to the performance period for our performance rights.
• ANZ’s TSR performance was below the median TSR of the SFS comparator group1 when comparing over one, three and ten years; and
• Either just above or just below the median over five years dependent on the size of the SFS comparator group.
ANZ (%)
Median TSR SFS2,3 (%)
Upper quartile TSR SFS2,3 (%)
Years to 30 September 2024
1
27.0
3
31.1
5
41.3
10
74.6
37.0
41.3
38.3
42.1
47.1
58.6
46.3
48.5
37.1
95.7
76.0
52.4
105.5
81.7
205.7
151.8
3,577
3,660
1. See section 9.1.2 for details of the SFS comparator group. 2. Blue = SFS includes DBS Bank Limited and excludes Suncorp Group Limited. 3. White = SFS excludes DBS Bank Limited
and Suncorp Group Limited.
Cash profit - continuing operations
($m, unaudited)
Cash profit before provisions -
continuing operations ($m, unaudited)
3. Historical information
3.1 Five-year ANZ financial performance summary
3.2 Historical performance and remuneration outcomes
3.3 ANZ TSR performance (1 to 10 years)
3.1 Five-year ANZ financial performance summary
When determining variable remuneration outcomes for the CEO, Disclosed Executives and employees, a range of different financial
indicators are considered. The Group uses cash profit as a measure of performance for the Group’s ongoing business activities, as
this provides a basis to assess Group and Divisional performance against earlier periods and against peer institutions.
The adjustments made in arriving at cash profit are included in statutory profit which is subject to audit. Although cash profit is not
audited, the external auditor has informed the Audit Committee that the cash profit adjustments have been determined on a
consistent basis across each period presented.
2024 statutory profit is down 8% compared to the prior financial year, while cash profit is down 9%, with both metrics impacted by
one-off Suncorp Bank acquisition related adjustments. Excluding the one-off adjustments, statutory profit is down 5% and cash profit
During 2024 the Group commenced a $2 billion share buy-back to return surplus capital to its shareholders, which up to
30 September 2024 has resulted in the Group returning $883m of capital to shareholders via the acquisition of 30 million shares
is down 7%.
on the market.
ANZ’s financial performance1, including cash profit2, over the last five years.
Statutory profit attributable to
ordinary shareholders ($m)
Cash profit
($m, unaudited)
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
6,535
7,106
7,119
6,162
6,725
7,413
6,515
6,198
3,758
9.7
11.0
10.4
9.9
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
Return on equity - cash (%) -
continuing operations (unaudited)
Earnings per share - cash - continuing
operations (unaudited)
6.2
128.7
6,725
7,413
6,496
6,181
10,068
10,766
8,968
8,396
8,369
224.3
247.3
228.8
216.5
1. The Group completed the divestment of its Aligned Dealer Group business, its Onepath Pensions and Investment business, and life insurance business across the 2020 and 2019
financial years. The financial results of these divested businesses were treated as discontinued operations in the 2022, 2021 and 2020 years. The Group ceased reporting discontinued
and continuing operations from completion in 2022. On 1 October 2023, the Group adopted AASB 17 Insurance Contracts (AASB 17), applied AASB 17 effective 1 October 2022 and
restated prior period comparative information. 2. Cash profit excludes non-core items included in statutory profit with the net after tax adjustment resulting in a decrease to statutory
profit of $190m for 2024, made up of several items. It is provided to assist readers understand the results of the core business activities of the Group.
54
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ANZ 2024 Annual Report
ANZ 2024 Annual Report
4. Executive performance and remuneration framework overview
4.1 Strategy, principles and governance
4.5 Board discretion
4.2 Alignment of remuneration and risk
4.6 Alignment of executive and shareholder interests
4.3 Remuneration structure and delivery
4.7 Remuneration mix
4.4 Performance assessment
4.1 Strategy, principles and governance
The following overview highlights how the executive performance and remuneration framework supports ANZ’s purpose and strategy.
ANZ’s purpose and strategy1
Is underpinned by our Performance and Remuneration Policies which include our Reward Principles:
Attract, motivate
and keep great
people
Reward our people for
doing the right thing having
regard to our customers
and shareholders
Focus on how things are
achieved as much as what
is achieved
Fair and simple
to understand
With remuneration delivered to our CEO and Disclosed Executives through:
Fixed remuneration (FR)
Performance linked variable remuneration
Short Term Variable Remuneration (STVR)
Long Term Variable Remuneration (LTVR)
Awarded at end of year based on Group and
individual performance
Awarded at start of year, with LTVR vesting
subject to performance conditions tested at
end of 4-year performance period
While governed by:
The People & Culture Committee and the Board determining FR and the variable remuneration outcomes for the CEO and each
Disclosed Executive. Additionally, the CEO’s LTVR outcome is also subject to shareholder approval at the AGM.
Board discretion (with supporting decision-making frameworks) is applied when determining performance and remuneration
outcomes (including grant of short and long-term variable remuneration awards), before any scheduled release of previously deferred
remuneration (Section 4.5), before the vesting of LTVR restricted rights (Section 9.1.1), and in applying any required consequences
(Section 6).
1. See the ‘Our purpose and strategy’ section of the Annual Report.
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4. Executive performance and remuneration framework overview
4.1 Strategy, principles and governance
4.5 Board discretion
4.2 Alignment of remuneration and risk
4.6 Alignment of executive and shareholder interests
4.3 Remuneration structure and delivery
4.7 Remuneration mix
4.4 Performance assessment
4.1 Strategy, principles and governance
The following overview highlights how the executive performance and remuneration framework supports ANZ’s purpose and strategy.
ANZ’s purpose and strategy1
Is underpinned by our Performance and Remuneration Policies which include our Reward Principles:
Attract, motivate
and keep great
people
Reward our people for
Focus on how things are
doing the right thing having
achieved as much as what
Fair and simple
to understand
regard to our customers
is achieved
and shareholders
With remuneration delivered to our CEO and Disclosed Executives through:
Fixed remuneration (FR)
Performance linked variable remuneration
Short Term Variable Remuneration (STVR)
Long Term Variable Remuneration (LTVR)
Awarded at end of year based on Group and
Awarded at start of year, with LTVR vesting
individual performance
subject to performance conditions tested at
end of 4-year performance period
While governed by:
The People & Culture Committee and the Board determining FR and the variable remuneration outcomes for the CEO and each
Disclosed Executive. Additionally, the CEO’s LTVR outcome is also subject to shareholder approval at the AGM.
Board discretion (with supporting decision-making frameworks) is applied when determining performance and remuneration
outcomes (including grant of short and long-term variable remuneration awards), before any scheduled release of previously deferred
remuneration (Section 4.5), before the vesting of LTVR restricted rights (Section 9.1.1), and in applying any required consequences
(Section 6).
1. See the ‘Our purpose and strategy’ section of the Annual Report.
4.2 Alignment of remuneration and risk
Variable remuneration for the CEO and Disclosed Executives is designed to align remuneration and risk.
Alignment of remuneration and risk
Variable remuneration for the CEO and Disclosed Executives is aligned to risk management through:
Assessing behaviours
based on ANZ’s values
and risk/compliance
standards (including
the FAR)
Determining variable
remuneration
outcomes with risk as
a modifier – impacting
outcomes at both a
pool and individual level
Weighting
remuneration toward
the longer-term with a
significant proportion
at risk
Emphasising risk in the
determination and
vesting of LTVR
restricted rights
(Section 9.1.1)
Reinforcing the
importance of risk
culture in driving
sustainable long-term
performance in the
LTVR design
Providing material
weight to non-financial
metrics (particularly risk)
in line with APRA
requirements
Ensuring risk
measures are
considered over a
long-time horizon
(up to 5 and 6 years)
Determining
accountability
and applying
consequences
where appropriate
Strengthening risk
consequences with
clawback (Section 4.5)
Prohibiting the hedging
of unvested equity
Variable remuneration can be adjusted downwards, including to zero, allowing the Board to hold executives accountable, individually
or collectively, for the longer-term impacts of their decisions and actions.
4.3 Remuneration structure and delivery
There are two core components of remuneration at ANZ – fixed remuneration and at risk variable remuneration.
In structuring remuneration, the Board aims to find the right balance between fixed and variable remuneration (at risk), the way
it is delivered (cash versus deferred remuneration) and appropriate deferral time frames (the short, medium and long-term).
The Board sets and reviews annually the CEO and Disclosed Executives’ FR based on financial services market relativities and
reflecting each executive’s responsibilities, performance, qualifications and experience.
The CEO and Disclosed Executives’ variable remuneration is comprised of STVR and LTVR consistent with external market practice.
At target performance, 63% of variable remuneration for the CEO and Disclosed Executives, and 56% of variable remuneration for
the CRO is deferred for at least four years from the date the Board approved the variable remuneration in October, and the date
shareholders approve the CEO’s LTVR, noting that this complies with the FAR minimum deferral requirement of 60% for the CEO
and 40% for Disclosed Executives.
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4.3.1 Remuneration structure
CEO and Disclosed Executives (DEs) (excluding CRO1)
Fixed Remuneration
(FR)
Short Term Variable
Remuneration (STVR)2
Long Term Variable
Remuneration (LTVR)
30%
30%
40%
100% of FR
100% of FR
135% of FR
Cash and superannuation
contributions
50% Cash
50% Deferred
shares (DS)
50% Restricted
rights (RR)
50% Performance
rights (PR)
Awarded at end of year based
on Group and individual
performance
• Awarded at start of year subject to
– RR: Pre grant assessment
(risk based measures)
Mix at
Maximum
Maximum/full
opportunity
Delivery
Timing/
deferral
Year 1 Cash 100%
Year 1 Cash 50%
Year 2 DS 25%
Year 3 DS 25%
– RR & PR: Shareholder approval at AGM
for CEO award
• Performance condition tested at end of
4-year performance period
– RR: Pre vest assessment
(risk based measures)
– PR: Relative and absolute TSR hurdles
For both RR and PR:
Deferral period = 4-year Performance Period + Holding Period (HP)
4-year Performance Period
~1 yr HP
~2 yr HP
Year 4 CEO: 33% / DE: 50%
Year 5 CEO: 33% / DE: 50%
Year 6 CEO 34%
All variable remuneration is subject to the Board’s ongoing discretion
to apply in-year adjustments, malus and clawback
1. CRO mix: 33.3% FR/33.3% STVR/33.3% LTVR. STVR maximum opportunity: the same as CEO/DE at 100% of FR, LTVR full opportunity: 100% of FR and delivered as 100% RR to
support independence. 2. If the CEO receives above target STVR, the amount above target will be delivered as 40% cash and 60% DS (20% year 4, 20% year 5, 20% year 6) to ensure
compliance with the minimum deferral requirements with respect to FAR and APRA’s Prudential Standard CPS 511 Remuneration.
4.3.2 Variable remuneration delivery
Variable remuneration for the CEO and the Disclosed Executives (excluding the CRO and former Acting GE T&C) is delivered as follows:
• STVR as 50% cash paid to executives at the end of the annual Performance and Remuneration Review (December), and subject to
clawback for two years post payment, and 50% shares deferred equally over years 2 and 3 (granted in November in respect of
performance for the prior financial year); and
• LTVR as restricted rights and performance rights granted at the beginning of the financial year in November/December, and
deferred over:
– year 4 (33%), year 5 (33%) and year 6 (34%) for the CEO; and
– year 4 (50%) and year 5 (50%) for Disclosed Executives.
Both restricted rights and performance rights are tested against the relevant performance condition at the end of the four-year
performance period and are then subject to additional holding period(s) until the completion of the respective deferral periods (Section 9.1).
Before any scheduled release of deferred remuneration, the Board considers whether malus should be applied to previously deferred
remuneration (or further deferral of vesting), or clawback to variable remuneration previously granted (two years post payment or
vesting), for the CEO and Disclosed Executives (Section 4.5).
For deferred variable remuneration for the CEO and Disclosed Executives, we calculate the number of deferred shares to be granted
based on the VWAP of the shares traded on the ASX in the five trading days leading up to and including 1 October (i.e., in line with the
beginning of the financial year). Allocations prior to the 2022 financial year were based on the VWAP in the five trading days leading up
to and including the date of grant. The VWAP used for disclosure and expensing purposes is the one-day VWAP at the date of grant,
In some cases, we may grant deferred share rights to executives instead of deferred shares. Each deferred share right entitles the
which is in line with the Accounting Standard.
holder to one ordinary share.
4.4 Performance assessment
The following provides a summary of the performance assessment approach for the CEO and Disclosed Executives.
Financial Accountability Regime (FAR) compliance is the gateway that requires the Accountable Person to meet their obligations in line
with their Accountability Statement under the FAR since 15 March 2024 and, prior to that, under the Banking Executive Accountability
Regime (BEAR). The ‘what’ assessment comprises of the ANZ Group Scorecard and Divisional Scorecard (excluding the CEO). Both the
Group and Divisional Scorecard assessments are calculated as follows: Risk modifier1 % x [Shareholder/Financial % + Customer % +
People & Culture %]. The ‘what’ assessment outcome is then modified by the ‘how’ modifier. The ‘how’ modifier for Disclosed
Executives considers a macro view of the individual’s approach to risk, demonstration of ANZ behaviours, and their contribution to
building a successful Group Executive team. See below and Section 5.1.2 for CEO Leadership Modifier detail.
‘What’ assessment
FAR
ANZ Group Scorecard
Divisional Scorecard
Compliance
assessment %
assessment %
Gateway
Weighting
Weighting
‘How’
Modifier %
Key Inputs:
CEO:
CRO:
100%
25%
25%
CEO:
CRO:
n/a
75%
75%
Frontline DEs:
Frontline DEs:
Enablement DEs: 50%
Enablement DEs: 50%
• Risk Standards
assessment
• How assessment
• Leadership of key
strategic priorities
(CEO only)
Overall
Performance
Assessment %
Key Inputs:
• Informs STVR
outcome
4.4.1 CEO performance
The CEO’s STVR is assessed 100% on
the ANZ Group Scorecard, adjusted by
the CEO Leadership Modifier, which takes
into consideration the CEO’s leadership of:
• Key strategic priorities aligned with
ANZ’s strategy
• ANZ’s values/behaviours
• ANZ’s risk and compliance standards
This is a change from 2023, where
performance informing the CEO’s
STVR was split 50% between the
Group Scorecard and the CEO’s
individual objectives.
With the change to 100% assessment on
the ANZ Group Scorecard (as highlighted
in the ‘People & Culture Committee Chair
letter’), the weighting to financial
performance for the CEO is around 40%
(moving to 50% in 2025); however noting
that the CEO’s STVR is not formulaic.
The Scorecard/strategic priorities are
agreed upon by the Board at the
beginning of the financial year (and are
designed to be stretching). At the end of
the financial year, the People & Culture
Committee reviews and recommends to
the Board for approval the CEO’s overall
performance taking into consideration:
i. Performance against the ANZ
Group Scorecard
ii. CEO Leadership Modifier
iii. Input from the Chairman
iv. Compliance with FAR obligations
v. Control function reports from the CRO
(on risk management), CFO (on financial
performance), GE T&C (on talent and
culture matters) and Group General
Manager Internal Audit (GGM IA) (on
internal audit matters)
vi. Material risk, audit and conduct events
that have either occurred or come to
role focus:
light in the year
vii. Input from both the Audit Committee
and the Risk Committee of the Board
4.4.2 Disclosed Executive
performance
At the start of each year, stretching
performance objectives are set for
Disclosed Executives through Divisional
Scorecards, aligned with the ANZ Group
Scorecard. At the end of the financial
year, the People & Culture Committee
recommends to the Board for approval
the performance of each Disclosed
Executive2 against:
i. the ANZ Group Scorecard
(25% to 50% weighting)
ii. their Divisional Scorecard
(50% to 75% weighting)
iii. ANZ’s values/behaviours
iv. points iv) to vii) as detailed for the CEO
The ANZ Group Scorecard weighting for
Disclosed Executives varies based on
• 50% weighting for enablement
Disclosed Executives: Chief Financial
Officer, GE Strategy & Transformation,
GE Talent & Culture, and GE Technology
& Group Services
• 25% weighting for Chief Risk Officer,
and frontline Disclosed Executives:
GE Australia Retail, GE Australia
Commercial, GE & CEO New Zealand,
and GE Institutional
1. Note for the CRO, Risk is incorporated in the Scorecard rather than as a separate modifier. 2. Performance
arrangements for the CRO are addressed additionally by the Risk Committee. Performance arrangements for the GE &
CEO, New Zealand are determined and approved by the ANZ NZ HR Committee/ANZ NZ Board in consultation with and
endorsed by the People & Culture Committee/Board, consistent with their respective regulatory obligations.
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Performance
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Remuneration
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Remuneration report
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30%
40%
4.4 Performance assessment
For deferred variable remuneration for the CEO and Disclosed Executives, we calculate the number of deferred shares to be granted
based on the VWAP of the shares traded on the ASX in the five trading days leading up to and including 1 October (i.e., in line with the
beginning of the financial year). Allocations prior to the 2022 financial year were based on the VWAP in the five trading days leading up
to and including the date of grant. The VWAP used for disclosure and expensing purposes is the one-day VWAP at the date of grant,
which is in line with the Accounting Standard.
In some cases, we may grant deferred share rights to executives instead of deferred shares. Each deferred share right entitles the
holder to one ordinary share.
The following provides a summary of the performance assessment approach for the CEO and Disclosed Executives.
Financial Accountability Regime (FAR) compliance is the gateway that requires the Accountable Person to meet their obligations in line
with their Accountability Statement under the FAR since 15 March 2024 and, prior to that, under the Banking Executive Accountability
Regime (BEAR). The ‘what’ assessment comprises of the ANZ Group Scorecard and Divisional Scorecard (excluding the CEO). Both the
Group and Divisional Scorecard assessments are calculated as follows: Risk modifier1 % x [Shareholder/Financial % + Customer % +
People & Culture %]. The ‘what’ assessment outcome is then modified by the ‘how’ modifier. The ‘how’ modifier for Disclosed
Executives considers a macro view of the individual’s approach to risk, demonstration of ANZ behaviours, and their contribution to
building a successful Group Executive team. See below and Section 5.1.2 for CEO Leadership Modifier detail.
FAR
Compliance
Gateway
‘What’ assessment
ANZ Group Scorecard
assessment %
Divisional Scorecard
assessment %
Weighting
Weighting
100%
CEO:
25%
CRO:
Frontline DEs:
25%
Enablement DEs: 50%
n/a
CEO:
75%
CRO:
Frontline DEs:
75%
Enablement DEs: 50%
Overall
Performance
Assessment %
Key Inputs:
• Informs STVR
outcome
‘How’
Modifier %
Key Inputs:
• Risk Standards
assessment
• How assessment
• Leadership of key
strategic priorities
(CEO only)
4.4.1 CEO performance
The CEO’s STVR is assessed 100% on
the ANZ Group Scorecard, adjusted by
the CEO Leadership Modifier, which takes
into consideration the CEO’s leadership of:
• Key strategic priorities aligned with
ANZ’s strategy
• ANZ’s values/behaviours
• ANZ’s risk and compliance standards
This is a change from 2023, where
performance informing the CEO’s
STVR was split 50% between the
Group Scorecard and the CEO’s
individual objectives.
With the change to 100% assessment on
the ANZ Group Scorecard (as highlighted
in the ‘People & Culture Committee Chair
letter’), the weighting to financial
performance for the CEO is around 40%
(moving to 50% in 2025); however noting
that the CEO’s STVR is not formulaic.
The Scorecard/strategic priorities are
agreed upon by the Board at the
beginning of the financial year (and are
designed to be stretching). At the end of
the financial year, the People & Culture
Committee reviews and recommends to
the Board for approval the CEO’s overall
performance taking into consideration:
i. Performance against the ANZ
Group Scorecard
ii. CEO Leadership Modifier
iii. Input from the Chairman
iv. Compliance with FAR obligations
v. Control function reports from the CRO
(on risk management), CFO (on financial
performance), GE T&C (on talent and
culture matters) and Group General
Manager Internal Audit (GGM IA) (on
internal audit matters)
vi. Material risk, audit and conduct events
that have either occurred or come to
light in the year
vii. Input from both the Audit Committee
and the Risk Committee of the Board
1. Note for the CRO, Risk is incorporated in the Scorecard rather than as a separate modifier. 2. Performance
arrangements for the CRO are addressed additionally by the Risk Committee. Performance arrangements for the GE &
CEO, New Zealand are determined and approved by the ANZ NZ HR Committee/ANZ NZ Board in consultation with and
endorsed by the People & Culture Committee/Board, consistent with their respective regulatory obligations.
4.4.2 Disclosed Executive
performance
At the start of each year, stretching
performance objectives are set for
Disclosed Executives through Divisional
Scorecards, aligned with the ANZ Group
Scorecard. At the end of the financial
year, the People & Culture Committee
recommends to the Board for approval
the performance of each Disclosed
Executive2 against:
i. the ANZ Group Scorecard
(25% to 50% weighting)
ii. their Divisional Scorecard
(50% to 75% weighting)
iii. ANZ’s values/behaviours
iv. points iv) to vii) as detailed for the CEO
The ANZ Group Scorecard weighting for
Disclosed Executives varies based on
role focus:
• 50% weighting for enablement
Disclosed Executives: Chief Financial
Officer, GE Strategy & Transformation,
GE Talent & Culture, and GE Technology
& Group Services
• 25% weighting for Chief Risk Officer,
and frontline Disclosed Executives:
GE Australia Retail, GE Australia
Commercial, GE & CEO New Zealand,
and GE Institutional
4.3.1 Remuneration structure
CEO and Disclosed Executives (DEs) (excluding CRO1)
Fixed Remuneration
Short Term Variable
Remuneration (STVR)2
Long Term Variable
Remuneration (LTVR)
(FR)
30%
Mix at
Maximum
Maximum/full
opportunity
Delivery
Timing/
deferral
100% of FR
100% of FR
135% of FR
Cash and superannuation
contributions
50% Cash
50% Deferred
shares (DS)
50% Restricted
50% Performance
rights (RR)
rights (PR)
Awarded at end of year based
• Awarded at start of year subject to
on Group and individual
performance
Year 1 Cash 100%
Year 1 Cash 50%
Year 2 DS 25%
Year 3 DS 25%
– RR: Pre grant assessment
(risk based measures)
– RR & PR: Shareholder approval at AGM
for CEO award
• Performance condition tested at end of
4-year performance period
– RR: Pre vest assessment
(risk based measures)
– PR: Relative and absolute TSR hurdles
For both RR and PR:
Deferral period = 4-year Performance Period + Holding Period (HP)
4-year Performance Period
~1 yr HP
~2 yr HP
Year 4 CEO: 33% / DE: 50%
Year 5 CEO: 33% / DE: 50%
Year 6 CEO 34%
All variable remuneration is subject to the Board’s ongoing discretion
to apply in-year adjustments, malus and clawback
1. CRO mix: 33.3% FR/33.3% STVR/33.3% LTVR. STVR maximum opportunity: the same as CEO/DE at 100% of FR, LTVR full opportunity: 100% of FR and delivered as 100% RR to
support independence. 2. If the CEO receives above target STVR, the amount above target will be delivered as 40% cash and 60% DS (20% year 4, 20% year 5, 20% year 6) to ensure
compliance with the minimum deferral requirements with respect to FAR and APRA’s Prudential Standard CPS 511 Remuneration.
4.3.2 Variable remuneration delivery
Variable remuneration for the CEO and the Disclosed Executives (excluding the CRO and former Acting GE T&C) is delivered as follows:
• STVR as 50% cash paid to executives at the end of the annual Performance and Remuneration Review (December), and subject to
clawback for two years post payment, and 50% shares deferred equally over years 2 and 3 (granted in November in respect of
performance for the prior financial year); and
• LTVR as restricted rights and performance rights granted at the beginning of the financial year in November/December, and
deferred over:
– year 4 (33%), year 5 (33%) and year 6 (34%) for the CEO; and
– year 4 (50%) and year 5 (50%) for Disclosed Executives.
Both restricted rights and performance rights are tested against the relevant performance condition at the end of the four-year
performance period and are then subject to additional holding period(s) until the completion of the respective deferral periods (Section 9.1).
Before any scheduled release of deferred remuneration, the Board considers whether malus should be applied to previously deferred
remuneration (or further deferral of vesting), or clawback to variable remuneration previously granted (two years post payment or
vesting), for the CEO and Disclosed Executives (Section 4.5).
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However, to reinforce the importance of collective accountability and contribution to Group outcomes, the Group weighting will increase
from 25% to 40% in 2025 for frontline Disclosed Executives (excluding GE & CEO, New Zealand). The Chief Risk Officer will retain a 25%
weighting to reinforce independence of the role.
Similar to the ANZ Group Scorecard, the Divisional Scorecards include the key elements of Shareholder/Financial, Customer, and People
& Culture, with Risk acting as a modifier.1 The weighting of each element varies to reflect the responsibilities of each individual’s role.
The Shareholder/Financial element weightings range from 20% to 40% (increasing to 50% in 2025).
4.4.3 Alignment with the achievement of stretching performance objectives
Variable remuneration for the CEO and Disclosed Executives is designed to align with the achievement of stretching performance
objectives that support our business strategy and drive long-term sustainable outcomes for shareholders.
Alignment with the achievement of stretching performance objectives
Variable remuneration outcomes are based on a range of measures (as illustrated below), with material weight provided to
non-financial measures in accordance with Prudential Standard CPS 511 Remuneration.
STVR
Mix of financial and non-financial measures
Key individual assessment inputs
ANZ’s values/behaviours
ANZ’s risk and compliance standards
FAR obligations
ANZ Group Scorecard
25%–100% weighting
Divisional Scorecards
50%–75% weighting
Control function input
Risk, Finance, T&C, Audit
2024 ANZ Group Scorecard
Below are examples of key drivers of shareholder value
Shareholder/Financial (40%)
• Ensure dynamic, efficient and disciplined resource allocation,
including capital, that creates more value and sustainable
returns for customers, shareholders and society
Customer (40%)
• Create propositions that attract and engage more of our
target customers, and improve their financial well-being,
access to housing and sustainability
• Build resilient business services and technology that more
safely and efficiently serve customers
People & Culture (20%)
• Establish an adaptable workforce and operating model
Risk modifier (0% to 110%)
• Maintain risk discipline focused on good customer
that delivers innovation and outcomes for our customers
more quickly
and regulatory outcomes
Additional financial and non-financial considerations in determining Group and individual performance
and size of the ANZ Incentive Plan (ANZIP) variable remuneration pool include:
• Broader financial performance
• Quality of earnings and operating environment
• Shareholder experience
• Our Reward Principles (Section 4.1)
LTVR
Aligned to shareholder experience
LTVR restricted rights
Mostly non-financial
LTVR performance rights
Financial
Prudential soundness
Capital ratio and liquidity
prudential minimums
Risk measures
• Material risk outcomes2
• APRA active supervision
• Risk culture
TSR
75% relative TSR
Performance relative to SFS
comparator group
25% absolute TSR
Focuses on positive growth –
even when market is declining
4.5 Board discretion
Variable remuneration is ’at risk’ remuneration and can range from zero to maximum opportunity. At the end of the financial year,
the Board1 approves variable remuneration recommendations for the CEO and each Disclosed Executive following lengthy and
detailed discussions and assessment, supported by comprehensive analysis of performance from a number of sources.
Board discretion is applied when determining all CEO and Disclosed Executive variable remuneration outcomes including:
• the size of the ANZIP variable remuneration pool;
• STVR and LTVR outcomes for each financial year;
• LTVR vesting outcomes (including pre vest assessment); and
• downward adjustment of variable remuneration as part of consequence management, in accordance with applicable law and
any terms and conditions provided (see below).
Downward adjustment of variable remuneration
The Board may choose to exercise the following options or a combination of these at any time, but will always consider their
use if any of the circumstances specified by Prudential Standard CPS 511 Remuneration occur. #1 to #3 below are
applicable to all employees, while clawback (#4) is limited to select employees (primarily the CEO, Disclosed Executives and
senior employees in jurisdictions where clawback regulations apply):
1. In year adjustment
2. Further deferral/freezing
3. Malus
4. Clawback
The most common type of
Delays the decision to pay/
Is an adjustment to reduce the
Is the recovery of variable
downward adjustment, which
allocate variable
value of all or part of deferred
remuneration that has
reduces the amount of
variable remuneration an
remuneration, or further
remuneration before it has
already vested or been paid
defers the vesting of
vested. Malus is used in cases
(up to two years from
employee may have otherwise
deferred remuneration or
of more serious performance
vesting/payment or a longer
been awarded for that year.
freezes vested/unexercised
or behaviour issues. Any and
period as determined by
shares and rights. This would
all variable remuneration we
Board discretion, policy or
typically only be considered
award or grant to an employee
applicable law). This would
where an investigation is
is subject to ANZ’s on-going
typically only be considered
pending/underway.
and absolute discretion to
if the other types of
apply malus and adjust
variable remuneration
downward adjustment/other
consequences are
downward (including to zero)
considered inadequate given
at any time before the relevant
the severity of the situation.
variable remuneration vests.
Before any scheduled vesting of deferred remuneration, the Board (for the CEO, Disclosed Executives and other specified roles) and/or
the Enterprise Accountability Group (EAG) (for other employees) considers whether any further deferral, malus, or clawback should be
applied (Section 6).
4.6 Alignment of executive and shareholder interests
Variable remuneration for the CEO and Disclosed Executives is designed to align executive and shareholder interests.
Alignment of executive and shareholder interests
More broadly, ANZ’s variable remuneration structure supports the alignment of executives with the interests of shareholders through:
Substantial shareholding
Significant variable
Significant weighting to
Consideration of cash
Consideration of
requirements (around
remuneration deferral
the LTVR component
profit and economic
the shareholder
up to 5 and 6 years in
(around 60% of VR)
profit in determining
experience (in respect
maximum opportunity
supports retention)
and absolute TSR
remuneration pool
ANZ equity (which also
which includes relative
ANZIP variable
hurdles
of the share price
and dividend) in
determining ANZIP
variable remuneration
pool and individual
outcomes
80% of variable
remuneration at
deferred into ANZ equity,
and 75% for the CRO to
ensure alignment with
shareholder interests and
to ensure focus on
long-term value creation)
1. Except for the CRO who has a percentage weighting assigned to risk measures. 2. Considers all risk types including capital adequacy risk, liquidity and funding risk, credit risk,
market risk, climate risk, non-financial risk and strategic risk.
1. Remuneration arrangements for the Group Executive and CEO, New Zealand are determined and approved by the ANZ NZ Board in consultation with and endorsed by the Board,
consistent with their respective regulatory obligations.
ANZ 2024 Annual Report 58
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
59
59
However, to reinforce the importance of collective accountability and contribution to Group outcomes, the Group weighting will increase
from 25% to 40% in 2025 for frontline Disclosed Executives (excluding GE & CEO, New Zealand). The Chief Risk Officer will retain a 25%
4.5 Board discretion
weighting to reinforce independence of the role.
Similar to the ANZ Group Scorecard, the Divisional Scorecards include the key elements of Shareholder/Financial, Customer, and People
& Culture, with Risk acting as a modifier.1 The weighting of each element varies to reflect the responsibilities of each individual’s role.
The Shareholder/Financial element weightings range from 20% to 40% (increasing to 50% in 2025).
4.4.3 Alignment with the achievement of stretching performance objectives
Variable remuneration for the CEO and Disclosed Executives is designed to align with the achievement of stretching performance
objectives that support our business strategy and drive long-term sustainable outcomes for shareholders.
Alignment with the achievement of stretching performance objectives
Variable remuneration outcomes are based on a range of measures (as illustrated below), with material weight provided to
non-financial measures in accordance with Prudential Standard CPS 511 Remuneration.
Mix of financial and non-financial measures
STVR
Key individual assessment inputs
ANZ’s values/behaviours
ANZ’s risk and compliance standards
FAR obligations
ANZ Group Scorecard
25%–100% weighting
Divisional Scorecards
50%–75% weighting
Control function input
Risk, Finance, T&C, Audit
2024 ANZ Group Scorecard
Below are examples of key drivers of shareholder value
Shareholder/Financial (40%)
Customer (40%)
• Ensure dynamic, efficient and disciplined resource allocation,
• Create propositions that attract and engage more of our
including capital, that creates more value and sustainable
target customers, and improve their financial well-being,
returns for customers, shareholders and society
access to housing and sustainability
• Build resilient business services and technology that more
safely and efficiently serve customers
People & Culture (20%)
Risk modifier (0% to 110%)
• Establish an adaptable workforce and operating model
• Maintain risk discipline focused on good customer
that delivers innovation and outcomes for our customers
and regulatory outcomes
more quickly
Additional financial and non-financial considerations in determining Group and individual performance
and size of the ANZ Incentive Plan (ANZIP) variable remuneration pool include:
• Broader financial performance
• Shareholder experience
• Quality of earnings and operating environment
• Our Reward Principles (Section 4.1)
LTVR
Aligned to shareholder experience
LTVR restricted rights
Mostly non-financial
LTVR performance rights
Financial
Prudential soundness
Risk measures
TSR
Capital ratio and liquidity
• Material risk outcomes2
75% relative TSR
25% absolute TSR
prudential minimums
• APRA active supervision
Performance relative to SFS
Focuses on positive growth –
• Risk culture
comparator group
even when market is declining
Variable remuneration is ’at risk’ remuneration and can range from zero to maximum opportunity. At the end of the financial year,
the Board1 approves variable remuneration recommendations for the CEO and each Disclosed Executive following lengthy and
detailed discussions and assessment, supported by comprehensive analysis of performance from a number of sources.
Board discretion is applied when determining all CEO and Disclosed Executive variable remuneration outcomes including:
• the size of the ANZIP variable remuneration pool;
• STVR and LTVR outcomes for each financial year;
• LTVR vesting outcomes (including pre vest assessment); and
• downward adjustment of variable remuneration as part of consequence management, in accordance with applicable law and
any terms and conditions provided (see below).
Downward adjustment of variable remuneration
The Board may choose to exercise the following options or a combination of these at any time, but will always consider their
use if any of the circumstances specified by Prudential Standard CPS 511 Remuneration occur. #1 to #3 below are
applicable to all employees, while clawback (#4) is limited to select employees (primarily the CEO, Disclosed Executives and
senior employees in jurisdictions where clawback regulations apply):
1. In year adjustment
The most common type of
downward adjustment, which
reduces the amount of
variable remuneration an
employee may have otherwise
been awarded for that year.
2. Further deferral/freezing
Delays the decision to pay/
allocate variable
remuneration, or further
defers the vesting of
deferred remuneration or
freezes vested/unexercised
shares and rights. This would
typically only be considered
where an investigation is
pending/underway.
3. Malus
Is an adjustment to reduce the
value of all or part of deferred
remuneration before it has
vested. Malus is used in cases
of more serious performance
or behaviour issues. Any and
all variable remuneration we
award or grant to an employee
is subject to ANZ’s on-going
and absolute discretion to
apply malus and adjust
variable remuneration
downward (including to zero)
at any time before the relevant
variable remuneration vests.
4. Clawback
Is the recovery of variable
remuneration that has
already vested or been paid
(up to two years from
vesting/payment or a longer
period as determined by
Board discretion, policy or
applicable law). This would
typically only be considered
if the other types of
downward adjustment/other
consequences are
considered inadequate given
the severity of the situation.
Before any scheduled vesting of deferred remuneration, the Board (for the CEO, Disclosed Executives and other specified roles) and/or
the Enterprise Accountability Group (EAG) (for other employees) considers whether any further deferral, malus, or clawback should be
applied (Section 6).
4.6 Alignment of executive and shareholder interests
Variable remuneration for the CEO and Disclosed Executives is designed to align executive and shareholder interests.
Alignment of executive and shareholder interests
More broadly, ANZ’s variable remuneration structure supports the alignment of executives with the interests of shareholders through:
Substantial shareholding
requirements (around
80% of variable
remuneration at
maximum opportunity
deferred into ANZ equity,
and 75% for the CRO to
ensure alignment with
shareholder interests and
to ensure focus on
long-term value creation)
Significant variable
remuneration deferral
up to 5 and 6 years in
ANZ equity (which also
supports retention)
Significant weighting to
the LTVR component
(around 60% of VR)
which includes relative
and absolute TSR
hurdles
Consideration of cash
profit and economic
profit in determining
ANZIP variable
remuneration pool
Consideration of
the shareholder
experience (in respect
of the share price
and dividend) in
determining ANZIP
variable remuneration
pool and individual
outcomes
1. Except for the CRO who has a percentage weighting assigned to risk measures. 2. Considers all risk types including capital adequacy risk, liquidity and funding risk, credit risk,
market risk, climate risk, non-financial risk and strategic risk.
1. Remuneration arrangements for the Group Executive and CEO, New Zealand are determined and approved by the ANZ NZ Board in consultation with and endorsed by the Board,
consistent with their respective regulatory obligations.
60
60
ANZ 2024 Annual Report
4.7 Remuneration mix
The CEO and Disclosed Executives1 have an aligned remuneration mix of 30% FR, 30% STVR and 40% LTVR at maximum/full
opportunity, and structure, with the exception of longer deferral for the CEO in line with APRA’s deferral requirements.
CEO
Remuneration mix – CEO ($m)
Minimum opportunity
2.500
Maximum/full opportunity
8.375 (44% cash, 56% equity)
2.500
2.500
+1.200
+1.300
+1.688
+1.688
30%
30%
40%
FR
STVR cash
STVR deferred shares
LTVR RR
LTVR PR
Disclosed Executives
The dollar amounts in the below example are for illustrative purposes only, and are based on the FR value of $1.25m.
Remuneration mix – Disclosed Executives1 ($m)
Minimum opportunity
1.250
Maximum/full opportunity
4.188 (45% cash, 55% equity)
Chief Risk Officer
1.250
1.250
+0.625
+0.625
+0.844
+0.844
30%
30%
40%
FR
STVR cash
STVR deferred shares
LTVR RR
LTVR PR
To preserve the independence of the role and to minimise any conflicts of interest in carrying out the risk control function across the
organisation, the CRO’s remuneration arrangements differ to other Disclosed Executives.
While the STVR opportunity (100% of FR) is the same as the CEO and Disclosed Executives, the LTVR opportunity is different
(100% of FR instead of 135% of FR) reflecting the delivery of LTVR as 100% restricted rights (instead of 50% restricted rights and
50% performance rights). Maximum variable remuneration opportunity is 200% of FR for the CRO. The remuneration mix is 33.3%
FR/33.3% STVR/33.3% LTVR.
Former Acting Group Executive, Talent & Culture
Due to the acting nature of R Howell’s appointment his remuneration arrangements differed to other Disclosed Executives. For the time
spent in this acting role, his FR was set at $700k per annum from 1 June 2023 and increased to $703k from 1 July 2023 (due to the
impact of the Superannuation Guarantee rate change). His VR maximum opportunity was set at 150% of FR (his remuneration mix was
therefore 40% FR/60% VR). His VR in the acting role was delivered as 60% cash and 40% as shares deferred over years 4 to 5 to ensure
compliance with CPS 511 deferral requirements.
Remuneration report
61
5. Executive remuneration outcomes
5.1 Short term variable remuneration (STVR)
5.3 2024 Received remuneration
5.2 Long term variable remuneration (LTVR)
5.4 2024 CEO remuneration comparison with prior years
Remuneration outcomes have been presented in the following three ways:
1. Awarded remuneration –
2. Received remuneration
3. Statutory remuneration
(Section 5.3)
(Section 9.2)
STVR and LTVR
(Sections 5.1.2, 5.2.1 and 5.4)
5.1 Short term variable remuneration (STVR)
5.1.1 ANZ Group Scorecard – approach and 2024 outcomes
The ANZ Group Scorecard is approved by the Board at the start of each year. It plays a key role to:
Message internally what
matters most
Reinforce the importance of sound
management in addition to risk,
shareholder/financial, customer,
and people and culture outcomes
Inform focus of effort,
prioritisation and decision-
making across ANZ
Assessment of performance against the ANZ Group Scorecard provides a key input (as illustrated in Section 4.4):
In determining the size of the ANZ
Incentive Plan (ANZIP) variable
remuneration pool, which funds
individual variable remuneration
outcomes for all employees/STVR
for Disclosed Executives (excluding
the CEO to help mitigate potential
conflicts of interest)
In the overall performance assessment for the CEO (100% weighting,
adjusted based on a CEO Leadership Modifier) and Disclosed Executives
(25%–50% weighting), which informs the STVR awarded outcomes in
Section 5.1.2
As managing risk appropriately is fundamental to the way ANZ operates, risk forms an integral part of the assessment, directly
impacting the overall ANZ Group Scorecard outcome (a modifier ranging from 0% to 110% of the ANZ Group Scorecard assessment).
On the following pages we have outlined ANZ’s 2024 Group Scorecard and provided a summary of outcomes for each of the key
performance categories to inform the overall assessment for 2024.
1. Excluding CRO.
ANZ 2024 Annual Report
60
ANZ 2024 Annual Report
4.7 Remuneration mix
CEO
Remuneration mix – CEO ($m)
Minimum opportunity
2.500
Maximum/full opportunity
8.375 (44% cash, 56% equity)
The CEO and Disclosed Executives1 have an aligned remuneration mix of 30% FR, 30% STVR and 40% LTVR at maximum/full
opportunity, and structure, with the exception of longer deferral for the CEO in line with APRA’s deferral requirements.
2.500
2.500
+1.200
+1.300
+1.688
+1.688
30%
30%
40%
FR
STVR cash
STVR deferred shares
LTVR RR
LTVR PR
The dollar amounts in the below example are for illustrative purposes only, and are based on the FR value of $1.25m.
Disclosed Executives
Remuneration mix – Disclosed Executives1 ($m)
Minimum opportunity
1.250
Maximum/full opportunity
4.188 (45% cash, 55% equity)
1.250
1.250
+0.625
+0.625
+0.844
+0.844
30%
30%
40%
FR
STVR cash
STVR deferred shares
LTVR RR
LTVR PR
Chief Risk Officer
To preserve the independence of the role and to minimise any conflicts of interest in carrying out the risk control function across the
organisation, the CRO’s remuneration arrangements differ to other Disclosed Executives.
While the STVR opportunity (100% of FR) is the same as the CEO and Disclosed Executives, the LTVR opportunity is different
(100% of FR instead of 135% of FR) reflecting the delivery of LTVR as 100% restricted rights (instead of 50% restricted rights and
50% performance rights). Maximum variable remuneration opportunity is 200% of FR for the CRO. The remuneration mix is 33.3%
FR/33.3% STVR/33.3% LTVR.
Former Acting Group Executive, Talent & Culture
Due to the acting nature of R Howell’s appointment his remuneration arrangements differed to other Disclosed Executives. For the time
spent in this acting role, his FR was set at $700k per annum from 1 June 2023 and increased to $703k from 1 July 2023 (due to the
impact of the Superannuation Guarantee rate change). His VR maximum opportunity was set at 150% of FR (his remuneration mix was
therefore 40% FR/60% VR). His VR in the acting role was delivered as 60% cash and 40% as shares deferred over years 4 to 5 to ensure
compliance with CPS 511 deferral requirements.
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
61
61
5. Executive remuneration outcomes
5.1 Short term variable remuneration (STVR)
5.3 2024 Received remuneration
5.2 Long term variable remuneration (LTVR)
5.4 2024 CEO remuneration comparison with prior years
Remuneration outcomes have been presented in the following three ways:
1. Awarded remuneration –
STVR and LTVR
(Sections 5.1.2, 5.2.1 and 5.4)
2. Received remuneration
(Section 5.3)
3. Statutory remuneration
(Section 9.2)
5.1 Short term variable remuneration (STVR)
5.1.1 ANZ Group Scorecard – approach and 2024 outcomes
The ANZ Group Scorecard is approved by the Board at the start of each year. It plays a key role to:
Message internally what
matters most
Reinforce the importance of sound
management in addition to risk,
shareholder/financial, customer,
and people and culture outcomes
Inform focus of effort,
prioritisation and decision-
making across ANZ
Assessment of performance against the ANZ Group Scorecard provides a key input (as illustrated in Section 4.4):
In determining the size of the ANZ
Incentive Plan (ANZIP) variable
remuneration pool, which funds
individual variable remuneration
outcomes for all employees/STVR
for Disclosed Executives (excluding
the CEO to help mitigate potential
conflicts of interest)
In the overall performance assessment for the CEO (100% weighting,
adjusted based on a CEO Leadership Modifier) and Disclosed Executives
(25%–50% weighting), which informs the STVR awarded outcomes in
Section 5.1.2
As managing risk appropriately is fundamental to the way ANZ operates, risk forms an integral part of the assessment, directly
impacting the overall ANZ Group Scorecard outcome (a modifier ranging from 0% to 110% of the ANZ Group Scorecard assessment).
On the following pages we have outlined ANZ’s 2024 Group Scorecard and provided a summary of outcomes for each of the key
performance categories to inform the overall assessment for 2024.
1. Excluding CRO.
62
62
ANZ 2024 Annual Report
Shareholder/Financial
Key objectives
Ensure dynamic, efficient and disciplined resource allocation, including capital,
that creates more value and sustainable returns for customers, shareholders
and society
Deliver Group economic profit1 to plan or better in a high-quality manner,
targeting sustainable returns
Effectively manage total cost growth, in support of our 3yr Strategic Plan
(including our 2024 productivity ambition)
40% weight: 110%/Above Target
Outcomes
People & Culture
Key objectives
Below
Target
Above
and outcomes for our customers more quickly
Establish an adaptable workforce and operating model that delivers innovation
Retain high performers (particularly those with the skills to support our business
transformation)
Maintain a purpose led culture, with strong employee engagement, and
improved diversity and inclusion
Remuneration report
63
20% weight: 100%/On Target
Outcomes
Below
Target
Above
• Economic profit exceeded plan by $88m after removing the impact from Suncorp Bank, which was not included in the original plan.
• Total cost growth was 6%. Excluding Suncorp Bank division, the cost growth of 4% was marginally higher than plan as a result of higher
restructuring costs to further our productivity agenda. Continued inflation and high levels of investment directed into growth, productivity
and simplification initiatives were partially offset by disciplined cost management and productivity initiatives.
• Return on equity (ROE) exceeded target by 36 basis points after removing the impacts from Suncorp Bank earnings not included in the
40% weight: 88%/Below Target
Outcomes
Below
Target
Above
• Strong credit outcome with no material credit events recorded. Overall, credit and market risk has been well managed, and liquidity risk
original plan.
Customer
Key objectives
• Create propositions that attract and engage more of our target customers,
and improve their financial well-being, access to housing and sustainability
• Build resilient business services and technology that more safely and
efficiently serve customers
Suncorp Bank: Ensure Suncorp integration is on track
Australia Retail: Make ANZ Plus a success including Plus Home loan in market
and migration of initial cohort from Classic to Plus
Australia Commercial: Continue to execute Commercial strategy with targeted
growth in chosen segments and an increase in digital lending
Institutional: Deliver against Environmental, Social and Governance (ESG) targets
and extend leadership in platforms
New Zealand: Continue to make banking easier
• Suncorp Bank acquisition was completed, with a successful day 1 cutover.
• Australia Retail ANZ Plus growth has been strong, with Deposit Funds Under Management (FUM) of $16.5bn and customer numbers
of 850k surpassing target, coupled with the rollout of additional features and continued improvement in Net Promoter Score (NPS)2.
However, ANZ Plus Home Loans have been slower to market and achieved slower growth than target.
• Australia Commercial maintained sound delivery of initiatives to support strategy and achieved targeted growth in specific segments.
NPS continued to improve year-on-year. Digital lending exceeded target. Flat growth with Business Owner/Home Owner FUM.
• Institutional achieved well beyond the 2024 target set to make progress on funding and facilitating $100bn by the end of 2030 in social
and environmental activities. Significant mandates won for Payment Platforms and named best bank for cash management globally by
Global Finance.
• New Zealand made significant progress on the Ngā Tapuwae program (to move ANZ NZ core to cloud and redesign business for greater
resilience, agility and lower cost) – the key enabler in making banking easier for customers in New Zealand. Delivered first Climate Related
Disclosure for New Zealand Climate standards.
1. 2. See footnotes over page.
• Engagement continued to be very high (84% vs 87% in 2023). This engagement is evidenced beyond survey data in other measures such
as participation in the ‘Lead@ANZ program’ (over 75% of eligible leaders having commenced the program), around 1,300 engineers having
completed the ‘Engineering Career Pathways program’ and the number of staff who chose to be upskilled in ESG (3,249 completed the
‘ESG@ANZ learning program’).
• Retention of high performers was also strong, despite a more competitive employment market.
• A new Diversity and Inclusion (D&I) target was created in 2024 (aligned to our D&I strategy), and improvement from the baseline was positive.
We continued to make progress on Women in Leadership (38.8%, up from 37.3% in 2023) and also maintained our #1 ranking amongst
major bank peers in Glassdoor3 employer of choice ratings.
Risk modifier
0 to 110%: 90%/Below Target
Maintain risk discipline focused on good customer and regulatory outcomes
remains appropriate.
• Ongoing progress in delivering key regulatory commitments and uplifting NFR management, however, the recent impost of an additional
$250m operational risk overlay on top of our current $500m overlay is acknowledged as a clear sign that we need to do more in this area,
and this will be a significant focus for 2025.
• The enterprise’s risk culture has been assessed as Needs Improvement in 2024. Regulatory concerns around our Markets business and
NFR management have contributed to this re-assessment. Importantly, a high ‘Speak Up’ index of 81% was achieved, reflecting sustained
efforts to encourage people to speak up and challenge each other respectfully.
• No repeat adverse audits, no material Risk Appetite Statement breaches, and no material overdue regulatory issues.
Overall Group Performance Assessment
Assessment: 90%/Below Target
Overall performance (excluding the impact of the Risk Modifier), is assessed at 99% or slightly below target, despite a challenging
economic and socio-political environment. This reflects our strong financial performance with all business lines each contributing strongly,
solid progress against our long-term strategic objectives, and good customer and people outcomes.
However, while ANZ delivered against the majority of the Group Scorecard objectives, the recent issues in the Markets business, and the
additional $250m capital overlay from APRA in response to concerns regarding NFR matters, resulted in the application of a Risk Modifier of
90%, and therefore an overall performance assessment for 2024 of 90% (rounded) or Below Target. The Board notes that STVR outcomes
for the CEO and Disclosed Executives also take into consideration performance against individual objectives.
1. Economic profit is a risk adjusted profit measure used to evaluate business unit performance and is not subject to audit by the external auditor. Economic profit is calculated via a
series of adjustments to cash profit with the economic credit cost adjustment replacing the accounting credit loss charge; the inclusion of the benefit of imputation credits (measured
at 70% of Australian tax) and an adjustment to reflect the cost of capital. 2. Net Promoter Score (NPS) is a customer loyalty metric used globally to evaluate a company’s brand,
products or services. Net Promoter® and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and
Fred Reichheld. 3. Glassdoor is a website where employees and former employees anonymously review companies and their management.
ANZ 2024 Annual Report 62
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
63
63
Shareholder/Financial
Key objectives
and society
Ensure dynamic, efficient and disciplined resource allocation, including capital,
that creates more value and sustainable returns for customers, shareholders
Deliver Group economic profit1 to plan or better in a high-quality manner,
targeting sustainable returns
Effectively manage total cost growth, in support of our 3yr Strategic Plan
(including our 2024 productivity ambition)
40% weight: 110%/Above Target
Outcomes
Below
Target
Above
• Economic profit exceeded plan by $88m after removing the impact from Suncorp Bank, which was not included in the original plan.
• Total cost growth was 6%. Excluding Suncorp Bank division, the cost growth of 4% was marginally higher than plan as a result of higher
restructuring costs to further our productivity agenda. Continued inflation and high levels of investment directed into growth, productivity
and simplification initiatives were partially offset by disciplined cost management and productivity initiatives.
• Return on equity (ROE) exceeded target by 36 basis points after removing the impacts from Suncorp Bank earnings not included in the
40% weight: 88%/Below Target
Outcomes
original plan.
Customer
Key objectives
• Create propositions that attract and engage more of our target customers,
and improve their financial well-being, access to housing and sustainability
• Build resilient business services and technology that more safely and
efficiently serve customers
Suncorp Bank: Ensure Suncorp integration is on track
Australia Retail: Make ANZ Plus a success including Plus Home loan in market
and migration of initial cohort from Classic to Plus
Australia Commercial: Continue to execute Commercial strategy with targeted
growth in chosen segments and an increase in digital lending
Institutional: Deliver against Environmental, Social and Governance (ESG) targets
and extend leadership in platforms
New Zealand: Continue to make banking easier
• Suncorp Bank acquisition was completed, with a successful day 1 cutover.
• Australia Retail ANZ Plus growth has been strong, with Deposit Funds Under Management (FUM) of $16.5bn and customer numbers
of 850k surpassing target, coupled with the rollout of additional features and continued improvement in Net Promoter Score (NPS)2.
However, ANZ Plus Home Loans have been slower to market and achieved slower growth than target.
• Australia Commercial maintained sound delivery of initiatives to support strategy and achieved targeted growth in specific segments.
NPS continued to improve year-on-year. Digital lending exceeded target. Flat growth with Business Owner/Home Owner FUM.
• Institutional achieved well beyond the 2024 target set to make progress on funding and facilitating $100bn by the end of 2030 in social
and environmental activities. Significant mandates won for Payment Platforms and named best bank for cash management globally by
Global Finance.
• New Zealand made significant progress on the Ngā Tapuwae program (to move ANZ NZ core to cloud and redesign business for greater
resilience, agility and lower cost) – the key enabler in making banking easier for customers in New Zealand. Delivered first Climate Related
Disclosure for New Zealand Climate standards.
People & Culture
Key objectives
Establish an adaptable workforce and operating model that delivers innovation
and outcomes for our customers more quickly
Retain high performers (particularly those with the skills to support our business
transformation)
Maintain a purpose led culture, with strong employee engagement, and
improved diversity and inclusion
20% weight: 100%/On Target
Outcomes
Below
Target
Above
• Engagement continued to be very high (84% vs 87% in 2023). This engagement is evidenced beyond survey data in other measures such
as participation in the ‘Lead@ANZ program’ (over 75% of eligible leaders having commenced the program), around 1,300 engineers having
completed the ‘Engineering Career Pathways program’ and the number of staff who chose to be upskilled in ESG (3,249 completed the
‘ESG@ANZ learning program’).
• Retention of high performers was also strong, despite a more competitive employment market.
• A new Diversity and Inclusion (D&I) target was created in 2024 (aligned to our D&I strategy), and improvement from the baseline was positive.
We continued to make progress on Women in Leadership (38.8%, up from 37.3% in 2023) and also maintained our #1 ranking amongst
major bank peers in Glassdoor3 employer of choice ratings.
Risk modifier
0 to 110%: 90%/Below Target
Maintain risk discipline focused on good customer and regulatory outcomes
Below
Target
Above
• Strong credit outcome with no material credit events recorded. Overall, credit and market risk has been well managed, and liquidity risk
remains appropriate.
• Ongoing progress in delivering key regulatory commitments and uplifting NFR management, however, the recent impost of an additional
$250m operational risk overlay on top of our current $500m overlay is acknowledged as a clear sign that we need to do more in this area,
and this will be a significant focus for 2025.
• The enterprise’s risk culture has been assessed as Needs Improvement in 2024. Regulatory concerns around our Markets business and
NFR management have contributed to this re-assessment. Importantly, a high ‘Speak Up’ index of 81% was achieved, reflecting sustained
efforts to encourage people to speak up and challenge each other respectfully.
• No repeat adverse audits, no material Risk Appetite Statement breaches, and no material overdue regulatory issues.
Overall Group Performance Assessment
Assessment: 90%/Below Target
Overall performance (excluding the impact of the Risk Modifier), is assessed at 99% or slightly below target, despite a challenging
economic and socio-political environment. This reflects our strong financial performance with all business lines each contributing strongly,
solid progress against our long-term strategic objectives, and good customer and people outcomes.
However, while ANZ delivered against the majority of the Group Scorecard objectives, the recent issues in the Markets business, and the
additional $250m capital overlay from APRA in response to concerns regarding NFR matters, resulted in the application of a Risk Modifier of
90%, and therefore an overall performance assessment for 2024 of 90% (rounded) or Below Target. The Board notes that STVR outcomes
for the CEO and Disclosed Executives also take into consideration performance against individual objectives.
1. Economic profit is a risk adjusted profit measure used to evaluate business unit performance and is not subject to audit by the external auditor. Economic profit is calculated via a
series of adjustments to cash profit with the economic credit cost adjustment replacing the accounting credit loss charge; the inclusion of the benefit of imputation credits (measured
at 70% of Australian tax) and an adjustment to reflect the cost of capital. 2. Net Promoter Score (NPS) is a customer loyalty metric used globally to evaluate a company’s brand,
products or services. Net Promoter® and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and
Fred Reichheld. 3. Glassdoor is a website where employees and former employees anonymously review companies and their management.
1. 2. See footnotes over page.
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ANZ 2024 Annual Report
Remuneration report
65
5.1.2 CEO and DEs STVR – 2024 outcomes
At the end of the financial year, the People & Culture Committee makes a recommendation to the Board for approval in respect of
STVR outcomes. STVR will vary up or down year-on-year, it is not guaranteed, and may range from zero to a maximum opportunity.
Where expectations are met, STVR is likely to be awarded around 80% of maximum opportunity. Where performance is below
expectations, STVR will be less (potentially down to zero), and where above expectations, STVR will be more (potentially up to
maximum opportunity). The degree of variance in individual STVR outcomes for Disclosed Executives reflects the weighting of the
Group component (i.e., roles with 50% Group weighting will generally have less differentiation), and relative performance of the
different areas/individuals.
Summary of how the 2024 overall performance assessment has impacted the STVR Allocation
2024 remuneration outcomes reflect both the overall performance of the Group and the performance of each individual/Division.
The following provides a summary of how the performance assessment has been impacted as a result of the Markets and NFR
matters, and therefore the resulting impact on the 2024 awarded STVR.
2024 STVR Allocation (Target: 80%; Max: 100% as % of FR)
Current Fixed
Remuneration
STVR Target
(80%)
Overall Performance
Assessment %
+ / - Adjustment
(if applicable)
Awarded
Awarded
STVR
STVR
ANZ Group Scorecard
assessment %
Board
discretion
Group Risk modifier adjusted
Divisional Scorecard
assessment %
Individual Risk
outcome adjusted
All DEs impacted
Additional downward
Board discretion applied
to select individuals,
to ensure a fair and
proportionate STVR
outcome with respect to
executive accountability1
for the Markets and
NFR matters
1. The term ‘accountability’ is used in the broader sense – i.e., taken to mean that the CEO/Disclosed Executives are ultimately responsible for the effective management of risk and the
performance of the bank, and therefore should bear appropriate consequences for the impacts of the matters. As used in this report, the term should not be taken to mean
accountability under FAR, unless otherwise stated. Where referring to FAR accountability, the term ‘Accountability’ will be capitalised.
The STVR awarded tables show a year-on-year comparison of STVR awarded to the CEO, and Disclosed Executives for the 2023 and
2024 performance periods. STVR awarded reflects actual cash and the deferred shares component of STVR awarded in respect of the
relevant financial year. As non-cash components are subject to future vesting outcomes, the awarded value may be higher or lower
than the future realised value.
CEO
year-on-year.
The Board determined that an STVR outcome of $1.3m (65% of target/52% of maximum opportunity) was appropriate for 2024 having
regard to the overall performance of the Group, the CEO Leadership Modifier, and the Board’s application of downward adjustment due
to risk and reputation considerations arising from the Markets and NFR matters. As a result, the CEO’s STVR outcome is down 46%
The Board assessed the CEO’s 2024 performance as follows:
‘What’ assessment
‘How’ assessment
Basis for:
Assessed as:
Basis for:
ANZ Group Scorecard
90%/
CEO Leadership Modifier
(Section 5.1.1)
Below Target
(see below)
Assessed as:
Overall: Met
(100% weighting)
1. Led/driven performance against the ANZ Group
Met
Scorecard (including leadership of personal
objectives aligned to the ANZ Group Scorecard)
2. ANZ values/behaviours
Role Modelled
3. Individual risk/compliance assessment
Consistently demonstrated
Board discretion: Downward adjustment to reflect impacts arising from the Markets and NFR matters
Overall performance assessment of 65% of target aligned to STVR outcome
Awarded STVR in the relevant financial year – CEO
STVR maximum
STVR deferred
Financial year
$
$
$
$
opportunity
opportunity
opportunity
Total STVR
STVR cash
shares
Target
Maximum
Actual STVR
STVR as % of
CEO
S Elliott
2024
2023
2,500,000
1,300,000
650,000
650,000
2,500,000
2,400,000
1,160,000
1,240,000
65%
120%
52%
96%
objectives (Section 5.1.1). Key leadership
and as a result he is highly respected by
Board assessment of CEO
Leadership Modifier
The CEO has delivered well against the
key factors forming part of the CEO
Leadership Modifier.
1. Led/driven performance against
the ANZ Group Scorecard
The CEO’s leadership of the bank’s key
priorities resulted in strong progress
against ANZ’s longer term strategy, and
good overall performance against 2024
highlights include:
• Final approval and acquisition of
Suncorp Bank
• The ongoing successful rollout of ANZ
Plus with strong adoption numbers,
FUM growth and NPS, although
acknowledging the slower than
planned progress in some areas
(e.g., home loans)
• Exceeding many ESG targets
• Significant productivity saves, to enable
He sets the tone from the top regarding
investment in key platforms for long
the importance of risk management and
term success
While 2024 has been a year of many
successful achievements, the Board’s
reduction to the Risk Modifier resulted in
a Below Target Group Scorecard
assessment overall.
2. ANZ values/behaviours
The CEO’s personal role modelling of the
ANZ values and behaviours is exemplary,
ANZ staff and regarded as an authentic
leader. Externally, the CEO demonstrates
industry leadership on a range of matters,
including his advocacy on making banking
more accessible to the general population,
along with his regular engagement with
non-profit partners and community groups.
3. Individual risk/compliance assessment
The CEO actively leads, encourages and
cultivates a culture where people seek to
understand, measure and proactively
manage risk and compliance matters.
speak up culture across the bank, as
evidenced by the improvement from 83%
to 88% for the response to “At ANZ there
are appropriate risk consequences when
risk management processes and
behaviours are not followed.” While the
CEO is ultimately accountable for the
Markets and NFR matters, he has provided
strong positive leadership in response to
each matter.
Board discretion
While on balance the CEO’s performance
against the ‘what’ and ‘how’ assessments
were good, the Markets and NFR matters
have impacted ANZ’s reputation, the
confidence of customers, shareholders
and regulators, and increased the risk
capital overlay on ANZ by $250m. As a
result, the Board has applied its discretion
to ensure a fair and proportionate
performance and STVR outcome for the
CEO, given he has ultimate accountability
for these matters.
ANZ 2024 Annual Report
64
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
65
65
5.1.2 CEO and DEs STVR – 2024 outcomes
CEO
At the end of the financial year, the People & Culture Committee makes a recommendation to the Board for approval in respect of
STVR outcomes. STVR will vary up or down year-on-year, it is not guaranteed, and may range from zero to a maximum opportunity.
Where expectations are met, STVR is likely to be awarded around 80% of maximum opportunity. Where performance is below
expectations, STVR will be less (potentially down to zero), and where above expectations, STVR will be more (potentially up to
maximum opportunity). The degree of variance in individual STVR outcomes for Disclosed Executives reflects the weighting of the
Group component (i.e., roles with 50% Group weighting will generally have less differentiation), and relative performance of the
different areas/individuals.
Summary of how the 2024 overall performance assessment has impacted the STVR Allocation
2024 remuneration outcomes reflect both the overall performance of the Group and the performance of each individual/Division.
The following provides a summary of how the performance assessment has been impacted as a result of the Markets and NFR
matters, and therefore the resulting impact on the 2024 awarded STVR.
2024 STVR Allocation (Target: 80%; Max: 100% as % of FR)
Current Fixed
Remuneration
STVR Target
Overall Performance
(80%)
Assessment %
+ / - Adjustment
(if applicable)
Awarded
Awarded
STVR
STVR
ANZ Group Scorecard
assessment %
Board
discretion
Group Risk modifier adjusted
Additional downward
Divisional Scorecard
assessment %
Individual Risk
outcome adjusted
All DEs impacted
Board discretion applied
to select individuals,
to ensure a fair and
proportionate STVR
outcome with respect to
executive accountability1
for the Markets and
NFR matters
1. The term ‘accountability’ is used in the broader sense – i.e., taken to mean that the CEO/Disclosed Executives are ultimately responsible for the effective management of risk and the
performance of the bank, and therefore should bear appropriate consequences for the impacts of the matters. As used in this report, the term should not be taken to mean
accountability under FAR, unless otherwise stated. Where referring to FAR accountability, the term ‘Accountability’ will be capitalised.
The STVR awarded tables show a year-on-year comparison of STVR awarded to the CEO, and Disclosed Executives for the 2023 and
2024 performance periods. STVR awarded reflects actual cash and the deferred shares component of STVR awarded in respect of the
relevant financial year. As non-cash components are subject to future vesting outcomes, the awarded value may be higher or lower
than the future realised value.
The Board determined that an STVR outcome of $1.3m (65% of target/52% of maximum opportunity) was appropriate for 2024 having
regard to the overall performance of the Group, the CEO Leadership Modifier, and the Board’s application of downward adjustment due
to risk and reputation considerations arising from the Markets and NFR matters. As a result, the CEO’s STVR outcome is down 46%
year-on-year.
The Board assessed the CEO’s 2024 performance as follows:
‘What’ assessment
‘How’ assessment
Basis for:
Assessed as:
Basis for:
ANZ Group Scorecard
(Section 5.1.1)
90%/
Below Target
CEO Leadership Modifier
(see below)
Assessed as:
Overall: Met
(100% weighting)
1. Led/driven performance against the ANZ Group
Scorecard (including leadership of personal
objectives aligned to the ANZ Group Scorecard)
Met
2. ANZ values/behaviours
Role Modelled
3. Individual risk/compliance assessment
Consistently demonstrated
Board discretion: Downward adjustment to reflect impacts arising from the Markets and NFR matters
Overall performance assessment of 65% of target aligned to STVR outcome
Awarded STVR in the relevant financial year – CEO
STVR maximum
opportunity
$
Financial year
Total STVR
$
STVR cash
$
STVR deferred
shares
$
Target
opportunity
Maximum
opportunity
Actual STVR
STVR as % of
CEO
S Elliott
2024
2023
2,500,000
1,300,000
650,000
650,000
2,500,000
2,400,000
1,160,000
1,240,000
65%
120%
52%
96%
Board assessment of CEO
Leadership Modifier
The CEO has delivered well against the
key factors forming part of the CEO
Leadership Modifier.
1. Led/driven performance against
the ANZ Group Scorecard
The CEO’s leadership of the bank’s key
priorities resulted in strong progress
against ANZ’s longer term strategy, and
good overall performance against 2024
objectives (Section 5.1.1). Key leadership
highlights include:
• Final approval and acquisition of
Suncorp Bank
• The ongoing successful rollout of ANZ
Plus with strong adoption numbers,
FUM growth and NPS, although
acknowledging the slower than
planned progress in some areas
(e.g., home loans)
• Exceeding many ESG targets
• Significant productivity saves, to enable
investment in key platforms for long
term success
While 2024 has been a year of many
successful achievements, the Board’s
reduction to the Risk Modifier resulted in
a Below Target Group Scorecard
assessment overall.
2. ANZ values/behaviours
The CEO’s personal role modelling of the
ANZ values and behaviours is exemplary,
and as a result he is highly respected by
ANZ staff and regarded as an authentic
leader. Externally, the CEO demonstrates
industry leadership on a range of matters,
including his advocacy on making banking
more accessible to the general population,
along with his regular engagement with
non-profit partners and community groups.
3. Individual risk/compliance assessment
The CEO actively leads, encourages and
cultivates a culture where people seek to
understand, measure and proactively
manage risk and compliance matters.
He sets the tone from the top regarding
the importance of risk management and
speak up culture across the bank, as
evidenced by the improvement from 83%
to 88% for the response to “At ANZ there
are appropriate risk consequences when
risk management processes and
behaviours are not followed.” While the
CEO is ultimately accountable for the
Markets and NFR matters, he has provided
strong positive leadership in response to
each matter.
Board discretion
While on balance the CEO’s performance
against the ‘what’ and ‘how’ assessments
were good, the Markets and NFR matters
have impacted ANZ’s reputation, the
confidence of customers, shareholders
and regulators, and increased the risk
capital overlay on ANZ by $250m. As a
result, the Board has applied its discretion
to ensure a fair and proportionate
performance and STVR outcome for the
CEO, given he has ultimate accountability
for these matters.
66
66
ANZ 2024 Annual Report
Remuneration report
67
Disclosed Executives
STVR outcomes for Disclosed Executives
continue to differ both year-on-year
and between executives demonstrating
the variability in Group and individual
performance year-on-year and the at risk
nature of this element of remuneration
(i.e., it is not guaranteed and may be
adjusted up or down ranging from
zero to a maximum opportunity).
In 2024, STVR outcomes for all Disclosed
Executives have been impacted by the
Markets and NFR matters (i.e., down 29%
on average year-on-year for those in role
for a full year in 2023 and 2024), due to the:
• impact of the Risk Modifier outcome on
the Group Scorecard assessment; and
• the application of a -20% individual Risk
Modifier adjustment for most Disclosed
Executives to reflect collective executive
accountability for the NFR challenges.
The risk assessment impact was greatest
for the CRO and GE, Institutional to reflect
their greater overall accountability for
these matters (i.e., issues took place
within their area of control and influence),
resulting in an average STVR reduction
of 50% year-on-year.
The average STVR outcome for current
Disclosed Executives is 75% of target
(60% of maximum opportunity). This
reflects both the overall assessment of
ANZ Group performance as Below Target
(Section 5.1.1), which is weighted 25% or
50%, and also individual performance
(Section 4.4.2) which is weighted 75% or
50% depending on role. Outcomes range
from 50% to 88% of target (or 40% to
71% of maximum opportunity).
To ensure an overall fair and proportionate
consequence for the Markets and NFR
matters, downward Board discretion was
applied to STVR outcomes for select
individuals (refer to Section 6 for
consequence considerations).
The 2024 STVR awarded outcome for
E Clements is based on her time as a
Disclosed Executive during 2024. R Howell
was awarded nil STVR for the 8 days he
was a Disclosed Executive during 2024.
Awarded STVR in the relevant financial year – Disclosed Executives
Financial
year
STVR maximum
opportunity
$
Total STVR
$
STVR cash
$
STVR deferred
shares
$
Target
opportunity
Maximum
opportunity
Actual STVR
STVR as % of
Current Disclosed Executives
M Carnegie
E Clements1
K Corbally
F Faruqui
G Florian
C Morgan1
A Strong1
A Watson2
M Whelan
2024
2023
2024
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
1,300,000
865,000
432,500
432,500
1,250,000
1,100,000
550,000
550,000
784,000
470,400
235,200
235,200
1,300,000
624,000
312,000
312,000
1,250,000
1,065,000
532,500
532,500
1,275,000
885,000
442,500
442,500
1,250,000
1,200,000
600,000
600,000
1,262,500
865,000
432,500
432,500
1,250,000
995,000
497,500
497,500
1,135,000
650,000
325,000
325,000
627,000
500,000
250,000
250,000
850,000
580,000
290,000
290,000
690,000
630,200
315,100
315,100
1,129,635
797,660
398,830
398,830
1,106,505
945,140
472,570
472,570
1,500,000
595,000
297,500
297,500
1,460,000
1,460,000
730,000
730,000
Former Disclosed Executives
R Howell1
2024
2023
21,490
n/a
n/a
n/a
348,068
300,000
180,000
120,000
83%
110%
75%
60%
107%
87%
120%
86%
100%
72%
100%
85%
114%
88%
107%
50%
125%
n/a
108%
67%
88%
60%
48%
85%
69%
96%
69%
80%
57%
80%
68%
91%
71%
85%
40%
100%
n/a
86%
1. STVR based on time as a Disclosed Executive in either 2023 (C Morgan, A Strong, R Howell) or 2024 (E Clements, R Howell). 2. Paid in NZD and converted to AUD. Year to date
average exchange rate used to convert NZD to AUD as at 30 September for the relevant year.
5.2 Long term variable remuneration (LTVR)
LTVR reinforces the focus on achieving longer term strategic objectives, driving outperformance relative to peers, and creating long-
term sustained value for all stakeholders. LTVR will be awarded based on full opportunity unless the LTVR restricted rights pre grant
assessment results in any reduction (and is also subject to shareholder approval for the CEO).
A pre vest assessment will determine the number of restricted rights that ultimately vest, and performance against TSR hurdles will
determine the level of vesting of performance rights and subsequent value of performance rights at the end of the performance period.
LTVR (restricted rights and performance rights) is designed to strengthen the alignment of executive interests with shareholders, and
performance rights provide a strong link between the reward for executive performance and TSR returns over the next four-year period.
5.2.1 CEO and DEs1 LTVR – 2024 outcomes
2024 Awarded LTVR and pre grant assessment outcome
Following completion of the 2024 LTVR pre grant assessment, based on its outcome in October 2023, the Board determined that the
2024 LTVR (awarded at the start of the 2024 financial year) should be awarded at full opportunity to Disclosed Executives (November
2023) and the CEO (December 2023 post AGM).
The restricted rights component of LTVR was subject to a pre grant assessment by the Board which determined that the award should
be made at full value (i.e., no reduction); and will be subject to a pre vest assessment by the Board of non-financial measures at the end
of the four-year performance period to determine whether the restricted rights should vest in full.
Restricted rights 2024 pre grant assessment (Section 9.1.1)
Step
Step 1
Step 2
Step 3
Pre grant assessment outcome
Action
Assess Prudential Soundness
Assess Risk Measures
Apply Board discretion
Outcome
Met
Met
No adjustment
100%
CEO LTVR: Shareholders approved at the 2023 AGM a 2024 LTVR award of $3,375,000 (135% of FR), delivered in the form of 50%
restricted rights and 50% performance rights.
Disclosed Executives LTVR: 2024 LTVR awarded at full opportunity (135% of FR, and 100% for the CRO). Note that R Howell was not
eligible in his acting capacity. Section 4.3 outlines delivery details.
2024 Awarded LTVR – CEO and Disclosed Executives
2024 LTVR Allocation (Full Opportunity1: 135% of FR; 2024 LTVR awarded at 100% of Full Opportunity)
2024 Fixed
Remuneration
LTVR Restricted
Rights opportunity
(67.5%)
2024 Pre grant
assessment
Outcome: 100%
LTVR
Restricted Rights Allocation:
67.5% of Fixed Remuneration
2024 Fixed
Remuneration
LTVR Performance
Rights opportunity
(67.5%)
LTVR
Performance Rights Allocation:
67.5% of Fixed Remuneration
Overall
135%
of FR
1. CRO role: Full opportunity at 100% of Fixed Remuneration and delivered wholly in restricted rights.
CEO and Current Disclosed Executives
S Elliott
M Carnegie
E Clements
K Corbally
F Faruqui
G Florian
C Morgan
A Strong
A Watson2
M Whelan
Actual LTVR1
Total LTVR1
restricted rights
performance rights
LTVR
$
LTVR
$
$
3,375,000
1,687,500
1,687,500
1,300,000
1,300,000
1,755,000
1,080,000
1,721,250
1,704,375
1,532,250
1,147,500
1,524,903
877,500
540,000
860,625
852,188
766,125
573,750
762,451
877,500
540,000
-
860,625
852,188
766,125
573,750
762,451
2,025,000
1,012,500
1,012,500
1. LTVR full opportunity based on FR at start of financial year. 2. Awarded in NZD and converted to AUD.
Year to date average exchange rate used to convert NZD to AUD as at 30 September for the relevant year.
ANZ 2024 Annual Report
66
ANZ 2024 Annual Report
Disclosed Executives
STVR outcomes for Disclosed Executives
continue to differ both year-on-year
and between executives demonstrating
the variability in Group and individual
performance year-on-year and the at risk
nature of this element of remuneration
(i.e., it is not guaranteed and may be
adjusted up or down ranging from
zero to a maximum opportunity).
In 2024, STVR outcomes for all Disclosed
Executives have been impacted by the
Markets and NFR matters (i.e., down 29%
on average year-on-year for those in role
for a full year in 2023 and 2024), due to the:
• impact of the Risk Modifier outcome on
the Group Scorecard assessment; and
The risk assessment impact was greatest
for the CRO and GE, Institutional to reflect
their greater overall accountability for
these matters (i.e., issues took place
within their area of control and influence),
resulting in an average STVR reduction
of 50% year-on-year.
The average STVR outcome for current
Disclosed Executives is 75% of target
(60% of maximum opportunity). This
reflects both the overall assessment of
ANZ Group performance as Below Target
(Section 5.1.1), which is weighted 25% or
50%, and also individual performance
To ensure an overall fair and proportionate
consequence for the Markets and NFR
matters, downward Board discretion was
applied to STVR outcomes for select
individuals (refer to Section 6 for
consequence considerations).
The 2024 STVR awarded outcome for
E Clements is based on her time as a
Disclosed Executive during 2024. R Howell
was awarded nil STVR for the 8 days he
was a Disclosed Executive during 2024.
Awarded STVR in the relevant financial year – Disclosed Executives
STVR maximum
STVR deferred
Financial
opportunity
Total STVR
STVR cash
shares
Target
Maximum
$
$
$
$
opportunity
opportunity
Actual STVR
STVR as % of
Current Disclosed Executives
M Carnegie
1,300,000
865,000
432,500
432,500
year
2024
2023
2024
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
E Clements1
K Corbally
F Faruqui
G Florian
1,250,000
1,100,000
550,000
550,000
784,000
470,400
235,200
235,200
1,300,000
624,000
312,000
312,000
1,250,000
1,065,000
532,500
532,500
1,275,000
885,000
442,500
442,500
1,250,000
1,200,000
600,000
600,000
1,262,500
865,000
432,500
432,500
1,250,000
995,000
497,500
497,500
C Morgan1
1,135,000
650,000
325,000
325,000
627,000
500,000
250,000
250,000
A Strong1
850,000
580,000
290,000
290,000
690,000
630,200
315,100
315,100
A Watson2
1,129,635
797,660
398,830
398,830
1,106,505
945,140
472,570
472,570
M Whelan
1,500,000
595,000
297,500
297,500
1,460,000
1,460,000
730,000
730,000
Former Disclosed Executives
R Howell1
21,490
n/a
n/a
n/a
348,068
300,000
180,000
120,000
83%
110%
75%
60%
107%
87%
120%
86%
100%
72%
100%
85%
114%
88%
107%
50%
125%
n/a
108%
67%
88%
60%
48%
85%
69%
96%
69%
80%
57%
80%
68%
91%
71%
85%
40%
100%
n/a
86%
1. STVR based on time as a Disclosed Executive in either 2023 (C Morgan, A Strong, R Howell) or 2024 (E Clements, R Howell). 2. Paid in NZD and converted to AUD. Year to date
average exchange rate used to convert NZD to AUD as at 30 September for the relevant year.
5.2 Long term variable remuneration (LTVR)
LTVR reinforces the focus on achieving longer term strategic objectives, driving outperformance relative to peers, and creating long-
term sustained value for all stakeholders. LTVR will be awarded based on full opportunity unless the LTVR restricted rights pre grant
assessment results in any reduction (and is also subject to shareholder approval for the CEO).
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
67
67
• the application of a -20% individual Risk
(Section 4.4.2) which is weighted 75% or
Modifier adjustment for most Disclosed
50% depending on role. Outcomes range
Executives to reflect collective executive
from 50% to 88% of target (or 40% to
accountability for the NFR challenges.
71% of maximum opportunity).
A pre vest assessment will determine the number of restricted rights that ultimately vest, and performance against TSR hurdles will
determine the level of vesting of performance rights and subsequent value of performance rights at the end of the performance period.
LTVR (restricted rights and performance rights) is designed to strengthen the alignment of executive interests with shareholders, and
performance rights provide a strong link between the reward for executive performance and TSR returns over the next four-year period.
5.2.1 CEO and DEs1 LTVR – 2024 outcomes
2024 Awarded LTVR and pre grant assessment outcome
Following completion of the 2024 LTVR pre grant assessment, based on its outcome in October 2023, the Board determined that the
2024 LTVR (awarded at the start of the 2024 financial year) should be awarded at full opportunity to Disclosed Executives (November
2023) and the CEO (December 2023 post AGM).
The restricted rights component of LTVR was subject to a pre grant assessment by the Board which determined that the award should
be made at full value (i.e., no reduction); and will be subject to a pre vest assessment by the Board of non-financial measures at the end
of the four-year performance period to determine whether the restricted rights should vest in full.
Restricted rights 2024 pre grant assessment (Section 9.1.1)
Step
Step 1
Step 2
Step 3
Pre grant assessment outcome
Action
Assess Prudential Soundness
Assess Risk Measures
Apply Board discretion
Outcome
Met
Met
No adjustment
100%
CEO LTVR: Shareholders approved at the 2023 AGM a 2024 LTVR award of $3,375,000 (135% of FR), delivered in the form of 50%
restricted rights and 50% performance rights.
Disclosed Executives LTVR: 2024 LTVR awarded at full opportunity (135% of FR, and 100% for the CRO). Note that R Howell was not
eligible in his acting capacity. Section 4.3 outlines delivery details.
2024 Awarded LTVR – CEO and Disclosed Executives
2024 LTVR Allocation (Full Opportunity1: 135% of FR; 2024 LTVR awarded at 100% of Full Opportunity)
2024 Fixed
Remuneration
LTVR Restricted
Rights opportunity
(67.5%)
2024 Pre grant
assessment
Outcome: 100%
LTVR
Restricted Rights Allocation:
67.5% of Fixed Remuneration
2024 Fixed
Remuneration
LTVR Performance
Rights opportunity
(67.5%)
LTVR
Performance Rights Allocation:
67.5% of Fixed Remuneration
Overall
135%
of FR
1. CRO role: Full opportunity at 100% of Fixed Remuneration and delivered wholly in restricted rights.
CEO and Current Disclosed Executives
S Elliott
M Carnegie
E Clements
K Corbally
F Faruqui
G Florian
C Morgan
A Strong
A Watson2
M Whelan
Actual LTVR1
Total LTVR1
$
LTVR
restricted rights
$
LTVR
performance rights
$
3,375,000
1,687,500
1,687,500
1,755,000
1,080,000
877,500
540,000
1,300,000
1,300,000
1,721,250
1,704,375
1,532,250
1,147,500
1,524,903
860,625
852,188
766,125
573,750
762,451
877,500
540,000
-
860,625
852,188
766,125
573,750
762,451
2,025,000
1,012,500
1,012,500
1. LTVR full opportunity based on FR at start of financial year. 2. Awarded in NZD and converted to AUD.
Year to date average exchange rate used to convert NZD to AUD as at 30 September for the relevant year.
68
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69
2024 Received LTVR
2025 LTVR Allocation (Full Opportunity1: 135% of FR; 2025 LTVR awarded at 95% of Full Opportunity)
2019 performance rights granted to the CEO in December 2019 and Disclosed Executives (excluding the CRO) in November 2019,
reached the end of their performance period in November 2023. Based on performance against hurdles, 100% of the performance
rights lapsed and executives received no value from this award.
Performance rights vesting outcomes
Over four years
Hurdle
Grant date1
First date
exercisable1
ANZ TSR/
CAGR2 TSR
Median TSR/
CAGR2 TSR
threshold
target
Upper quartile
TSR/CAGR2
TSR maximum
target
75% relative TSR
Select Financial Services (SFS)
comparator group
22-Nov-19
22-Nov-23
12.32%
18.64%
47.58%
25% absolute CAGR2 TSR 22-Nov-19
22-Nov-23
2.95%
8.5%
12.75%
Overall
performance
rights
outcome
100% lapsed
% vested
0%
0%
1. Grant date for the CEO was 17 December 2019, and date first exercisable was 17 December 2023. The CEO’s performance period was the same as the performance period for
Disclosed Executives. 2. Compound Annual Growth Rate (CAGR).
5.2.2 CEO and DEs1 LTVR – 2025 outcomes
Following completion of the 2025 LTVR pre grant assessment, the Board determined in October 2024 that the 2025 LTVR restricted
rights (50% of full LTVR opportunity), should be awarded at 90% of full opportunity to Disclosed Executives (November 2024) and the
CEO (December 2024 post AGM) due to risk considerations.
This adjustment formed part of a holistic assessment (i.e., including consideration of risk adjustments impacting STVR), to
ensure a proportionate collective impact for the NFR matters contributing to the additional capital overlay (Section 6). This
would result in a total 2025 LTVR award (awarded at the start of the 2025 financial year) at 95% of full opportunity (90% of full
opportunity for the CRO, whose LTVR is delivered wholly in restricted rights).
The restricted rights component of LTVR was subject to a pre grant assessment by the Board (outcomes are summarised below); and
will be subject to a pre vest assessment by the Board of non-financial measures at the end of the four-year performance period to
determine whether the restricted rights should vest in full.
Restricted rights 2025 pre grant assessment (Section 9.1.1)
Step
Step 1
Step 2
Step 3
Pre grant assessment outcome
Action
Assess Prudential Soundness
Assess Risk Measures
Apply Board discretion
Outcome
Met
Not met
No adjustment
90%
The performance rights component of LTVR is subject to TSR hurdles, which will determine the level of vesting and subsequent value
of performance rights at the end of the performance period.
CEO LTVR: 2025 LTVR subject to shareholder approval at the 2024 AGM – 2025 LTVR award of $3,206,250 (128.25% of FR), delivered
in the form of 47% restricted rights and 53% performance rights.
Disclosed Executives LTVR: 2025 LTVR awarded at 90% of their full opportunity (128.25% of FR, and 90% for the CRO), delivered as part
restricted rights and part performance rights (except for the CRO whose LTVR is delivered wholly in restricted rights).
Former Disclosed Executives
2025 Fixed
Remuneration
LTVR Restricted
Rights opportunity
(67.5%)
2025 Pre grant
assessment
Outcome: 90%2
LTVR
Restricted Rights Allocation:
60.75% of Fixed Remuneration
2025 Fixed
Remuneration
LTVR Performance
Rights opportunity
(67.5%)
LTVR
Performance Rights Allocation:
67.5% of Fixed Remuneration
Overall
Overall
128.25%
128.25%
of FR
(95% of full
opportunity)
(95% of full
opportunity)
1. CRO role: Full opportunity at 100% of Fixed Remuneration, overall awarded at 90% of full opportunity (as delivered wholly in restricted rights). 2. Downward adjustment
due to risk considerations in 2024. All DEs impacted.
5.3 2024 Received remuneration
This table shows the remuneration the CEO and Disclosed Executives actually received in relation to the 2024 financial year as cash
paid, or in the case of prior equity awards, the value which vested in 2024.
FR adjustments were received by Disclosed Executives effective 1 October 2023 to maintain or improve market positioning, approved
by the Board in October 2023. There were no other adjustments to FR for Disclosed Executives in 2024.
2024 Received remuneration – CEO and Disclosed Executives:
Received value includes the value of prior equity awards which vested in that year
Fixed
Cash variable
remuneration
remuneration
Total cash
during the year1
during the year1
received2
the year1,3
$
$
$
$
$
Deferred variable
Other deferred
remuneration
which vested
remuneration
which vested
Actual
which lapsed/
remuneration
forfeited during
Deferred variable
remuneration
CEO and Current Disclosed Executives
S Elliott
2,500,000
650,000
3,150,000
M Carnegie4
1,300,000
432,500
1,732,500
958,134
526,735
4,108,134
(4,297,414)
2,259,235
(992,392)
E Clements5
784,000
235,200
1,019,200
196,188
K Corbally4
1,300,000
312,000
1,612,000
1,057,966
1,215,388
2,669,966
F Faruqui4
G Florian4
1,275,000
442,500
1,717,500
697,515
2,415,015
(1,680,521)
1,262,500
432,500
1,695,000
516,838
2,211,838
(562,329)
C Morgan4,6
1,135,000
325,000
1,460,000
-
242,326
1,702,326
A Strong4
850,000
290,000
1,140,000
A Watson4,7
1,129,635
398,830
1,528,465
329,428
584,674
1,469,428
2,113,139
M Whelan4
1,500,000
297,500
1,797,500
656,862
2,454,362
(1,753,220)
R Howell5
14,327
n/a
14,327
-
14,327
1. Deferred variable remuneration which either vested or lapsed/forfeited during the year is the point in time value of previously deferred remuneration granted as deferred shares,
deferred share rights and/or restricted rights/performance rights, and is based on the one day Volume Weighted Average Price (VWAP) of the Company’s shares traded on the ASX on
the date of vesting or lapsing/forfeiture multiplied by the number of deferred shares/deferred share rights and/or restricted rights/performance rights. 2. The sum of fixed remuneration,
cash variable remuneration and deferred variable remuneration which vested during the year. 3. The lapsed/forfeited values relate to 100% of the performance rights awarded in
November/December 2019 lapsing in November/December 2023 due to the performance hurdles not being met. 4. Fixed remuneration reflects increases applied from 1 October
2023 to maintain or improve market positioning (M Carnegie, K Corbally, F Faruqui, G Florian, C Morgan, A Strong, A Watson, M Whelan). 5. Fixed remuneration based on time as a
Disclosed Executive (E Clements, R Howell). 6. Other deferred remuneration for C Morgan relates to deferred remuneration forfeited and bonus opportunity forgone as a result of joining
ANZ, that was deferred in prior years as deferred shares and vested during the year. 7. Paid in NZD and converted to AUD. Year to date average exchange rate used to convert NZD to
AUD as at 30 September for the relevant year.
$
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
1. See footnote over page.
ANZ 2024 Annual Report
68
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
69
69
2024 Received LTVR
2025 LTVR Allocation (Full Opportunity1: 135% of FR; 2025 LTVR awarded at 95% of Full Opportunity)
2025 Fixed
Remuneration
LTVR Restricted
Rights opportunity
(67.5%)
2025 Pre grant
assessment
Outcome: 90%2
LTVR
Restricted Rights Allocation:
60.75% of Fixed Remuneration
2025 Fixed
Remuneration
LTVR Performance
Rights opportunity
(67.5%)
LTVR
Performance Rights Allocation:
67.5% of Fixed Remuneration
Overall
Overall
128.25%
128.25%
of FR
(95% of full
opportunity)
(95% of full
opportunity)
1. CRO role: Full opportunity at 100% of Fixed Remuneration, overall awarded at 90% of full opportunity (as delivered wholly in restricted rights). 2. Downward adjustment
due to risk considerations in 2024. All DEs impacted.
5.3 2024 Received remuneration
This table shows the remuneration the CEO and Disclosed Executives actually received in relation to the 2024 financial year as cash
paid, or in the case of prior equity awards, the value which vested in 2024.
FR adjustments were received by Disclosed Executives effective 1 October 2023 to maintain or improve market positioning, approved
by the Board in October 2023. There were no other adjustments to FR for Disclosed Executives in 2024.
2024 Received remuneration – CEO and Disclosed Executives:
Received value includes the value of prior equity awards which vested in that year
Fixed
remuneration
$
Cash variable
remuneration
$
Total cash
$
Deferred variable
remuneration
which vested
during the year1
$
Other deferred
remuneration
which vested
during the year1
$
Deferred variable
remuneration
which lapsed/
forfeited during
the year1,3
$
Actual
remuneration
received2
$
CEO and Current Disclosed Executives
S Elliott
2,500,000
650,000
3,150,000
M Carnegie4
1,300,000
432,500
1,732,500
958,134
526,735
E Clements5
784,000
235,200
1,019,200
196,188
K Corbally4
1,300,000
312,000
1,612,000
1,057,966
F Faruqui4
G Florian4
1,275,000
442,500
1,717,500
697,515
1,262,500
432,500
1,695,000
516,838
-
-
-
-
-
-
4,108,134
(4,297,414)
2,259,235
(992,392)
1,215,388
2,669,966
-
-
2,415,015
(1,680,521)
2,211,838
(562,329)
2019 performance rights granted to the CEO in December 2019 and Disclosed Executives (excluding the CRO) in November 2019,
reached the end of their performance period in November 2023. Based on performance against hurdles, 100% of the performance
rights lapsed and executives received no value from this award.
Performance rights vesting outcomes
Over four years
Median TSR/
Upper quartile
CAGR2 TSR
TSR/CAGR2
threshold
TSR maximum
Overall
performance
rights
Hurdle
Grant date1
exercisable1
target
% vested
outcome
First date
ANZ TSR/
CAGR2 TSR
target
18.64%
22-Nov-19
22-Nov-23
12.32%
47.58%
75% relative TSR
Select Financial Services (SFS)
comparator group
25% absolute CAGR2 TSR 22-Nov-19
22-Nov-23
2.95%
8.5%
12.75%
0%
0%
100% lapsed
1. Grant date for the CEO was 17 December 2019, and date first exercisable was 17 December 2023. The CEO’s performance period was the same as the performance period for
Disclosed Executives. 2. Compound Annual Growth Rate (CAGR).
5.2.2 CEO and DEs1 LTVR – 2025 outcomes
Following completion of the 2025 LTVR pre grant assessment, the Board determined in October 2024 that the 2025 LTVR restricted
rights (50% of full LTVR opportunity), should be awarded at 90% of full opportunity to Disclosed Executives (November 2024) and the
CEO (December 2024 post AGM) due to risk considerations.
This adjustment formed part of a holistic assessment (i.e., including consideration of risk adjustments impacting STVR), to
ensure a proportionate collective impact for the NFR matters contributing to the additional capital overlay (Section 6). This
would result in a total 2025 LTVR award (awarded at the start of the 2025 financial year) at 95% of full opportunity (90% of full
opportunity for the CRO, whose LTVR is delivered wholly in restricted rights).
The restricted rights component of LTVR was subject to a pre grant assessment by the Board (outcomes are summarised below); and
will be subject to a pre vest assessment by the Board of non-financial measures at the end of the four-year performance period to
determine whether the restricted rights should vest in full.
Restricted rights 2025 pre grant assessment (Section 9.1.1)
Step
Step 1
Step 2
Step 3
Pre grant assessment outcome
Action
Assess Prudential Soundness
Assess Risk Measures
Apply Board discretion
Outcome
Met
Not met
No adjustment
90%
The performance rights component of LTVR is subject to TSR hurdles, which will determine the level of vesting and subsequent value
of performance rights at the end of the performance period.
CEO LTVR: 2025 LTVR subject to shareholder approval at the 2024 AGM – 2025 LTVR award of $3,206,250 (128.25% of FR), delivered
in the form of 47% restricted rights and 53% performance rights.
1. See footnote over page.
Disclosed Executives LTVR: 2025 LTVR awarded at 90% of their full opportunity (128.25% of FR, and 90% for the CRO), delivered as part
restricted rights and part performance rights (except for the CRO whose LTVR is delivered wholly in restricted rights).
Former Disclosed Executives
R Howell5
14,327
n/a
14,327
-
A Strong4
850,000
290,000
1,140,000
A Watson4,7
1,129,635
398,830
1,528,465
329,428
584,674
M Whelan4
1,500,000
297,500
1,797,500
656,862
-
-
-
-
1. Deferred variable remuneration which either vested or lapsed/forfeited during the year is the point in time value of previously deferred remuneration granted as deferred shares,
deferred share rights and/or restricted rights/performance rights, and is based on the one day Volume Weighted Average Price (VWAP) of the Company’s shares traded on the ASX on
the date of vesting or lapsing/forfeiture multiplied by the number of deferred shares/deferred share rights and/or restricted rights/performance rights. 2. The sum of fixed remuneration,
cash variable remuneration and deferred variable remuneration which vested during the year. 3. The lapsed/forfeited values relate to 100% of the performance rights awarded in
November/December 2019 lapsing in November/December 2023 due to the performance hurdles not being met. 4. Fixed remuneration reflects increases applied from 1 October
2023 to maintain or improve market positioning (M Carnegie, K Corbally, F Faruqui, G Florian, C Morgan, A Strong, A Watson, M Whelan). 5. Fixed remuneration based on time as a
Disclosed Executive (E Clements, R Howell). 6. Other deferred remuneration for C Morgan relates to deferred remuneration forfeited and bonus opportunity forgone as a result of joining
ANZ, that was deferred in prior years as deferred shares and vested during the year. 7. Paid in NZD and converted to AUD. Year to date average exchange rate used to convert NZD to
AUD as at 30 September for the relevant year.
2,454,362
(1,753,220)
14,327
-
C Morgan4,6
1,135,000
325,000
1,460,000
-
242,326
1,702,326
1,469,428
2,113,139
-
-
-
70
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ANZ 2024 Annual Report
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71
5.4 2024 CEO remuneration comparison with prior years
CEO – Summary of 2023 and 2024 total remuneration
Awarded
Awarded
Received
Received
Statutory
Statutory
Awarded remuneration reflects actual cash
and the deferred shares component of STVR
awarded in the year. As non-cash components
are subject to future vesting outcomes, the
awarded value may be higher or lower than the
future realised value.
Awarded remuneration is lower in 2024
(compared to 2023), due to the notably lower
STVR in 2024. Note, STVR is awarded at the
end of the year.
Received remuneration
reflects the actual
remuneration received in the
year (i.e., cash paid and the
value of previously awarded
STVR deferred shares and
LTVR performance rights
which vested in the year).
The amount received is lower
in 2024 (compared to 2023),
due to the notably lower STVR
in 2024.
Note that whilst all LTVR due
to vest in 2024 lapsed, for
comparative purposes, in 2023
there was no LTVR due to vest
as a result of changing from a
three to four-year performance
period in November 2019.
Statutory remuneration
reflects remuneration in
accordance with Australian
Accounting Standards which
includes FR and the amortised
accounting value of equity
based variable remuneration,
not the actual awarded or
received value in respect of
the relevant financial year
(i.e., includes the value of
STVR and LTVR expensed in
the year). This is different to
remuneration received in 2024
(which includes prior year
awards which vested).
Fixed
remuneration
$
STVR
$
Total
remuneration
$
LTVR
$
2024
2,500,000
1,300,000
3,375,000
7,175,000
2023
2,500,000
2,400,000
3,375,000
8,275,000
Total
remuneration
$
4,108,134
4,579,413
Total
remuneration
$
5,699,642
6,186,508
6. Accountability and Consequence Framework
6.1 Board considerations of consequences for
6.6 Risk role models
material risk, audit and conduct events
6.2 Additional Board governance and
oversight regarding the Markets and
non-financial risk matters in 2024
6.3 Summary of consequences applied
to the CEO and Disclosed Executives
6.4 Role of the Enterprise Accountability Group
6.5 Material positive risk events
6.7 Compliance with Prudential Standard
CPS 511 Remuneration
6.8 Evolving the Accountability &
Consequence Framework
6.9 Speak up culture
6.10 Application of consequences
6.1 Board considerations of
6.2 Additional Board
consequences for material
governance and oversight
risk, audit and conduct events
regarding the Markets and
non-financial risk matters
in 2024
• spent considerable time deliberating
remuneration outcomes for the CEO
and Disclosed Executives taking into
consideration the findings from the
accountability reviews, and the fact that
the Executive Committee have collective
accountability for the performance of
Considerations regarding accountability
and consequences for our most senior
executives are considered and determined
by the People & Culture Committee and
Board, including the application of malus
and clawback (Section 4.5) for the CEO
and Disclosed Executives.
When determining consequences,
consideration is given to the level of
accountability, and the severity of the
issue, including customer impacts.
Consequences may include, for example,
one or more of the following: counselling,
formal warnings, impacts to in year
performance and remuneration outcomes
or application of malus to previously
deferred remuneration and ultimately
termination of employment or clawback
for the most serious issues.
As part of our standard process, reports
on the most material risk, audit and
conduct issues are presented to the
People & Culture, Risk and Audit
Committees at a joint meeting. This
information is considered by the Board
when considering the performance
of the Group, the ANZIP variable
remuneration pool for all employees and
in determining the performance and
remuneration outcomes of the CEO
and Disclosed Executives.
Further to consideration of material risk,
the bank; and
audit and conduct events, the Board put
in place in 2024 additional governance to
ensure it is well placed to determine
accountability consequences on issues
associated with the various Markets
matters. As part of the additional
governance, the Board also considered
ANZ’s NFR framework, particularly the
additional $250m capital overlay issued
by APRA.
In reviewing these matters, and to ensure
the application of fair and proportionate
consequences that are based on clearly
established evidence and facts, the Board:
• sought independent advice in relation
to the application of the remuneration
consequences for the CEO and
Disclosed Executives.
The Board views that relevant Executive
Committee members should bear
appropriate accountability for actions
and outcomes that took place within
their area of control or influence,
irrespective of whether they themselves
were personally involved or were
otherwise at fault, by virtue of their role
and seniority. Similarly, with respect to
the NFR matters, the Board considered
• appointed its own independent legal
it appropriate to hold the Executive
advisors to review material resulting
Committee collectively accountable.
from three external reviews, and an
independent Markets expert to ensure
Board independence and that FAR
obligations had been met;
• established a sub-committee
consisting of the Board Chair and three
Board directors with experience in
Markets trading;
The Board has determined for the
CEO and Disclosed Executives, that the
deferred remuneration available in
November/December 2024, should vest
in full (subject to performance hurdles).
However, as investigations into the matters
above are ongoing, the Board view that
there is sufficient deferred remuneration
on-foot (Section 9.3), to apply downward
adjustment should further information
come to light that justifies the application
of additional consequences.
ANZ 2024 Annual Report
70
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
71
71
5.4 2024 CEO remuneration comparison with prior years
CEO – Summary of 2023 and 2024 total remuneration
Awarded
Awarded
Received
Received
Statutory
Statutory
Awarded remuneration reflects actual cash
Received remuneration
and the deferred shares component of STVR
reflects the actual
Statutory remuneration
reflects remuneration in
awarded in the year. As non-cash components
remuneration received in the
accordance with Australian
are subject to future vesting outcomes, the
year (i.e., cash paid and the
Accounting Standards which
awarded value may be higher or lower than the
value of previously awarded
includes FR and the amortised
future realised value.
STVR deferred shares and
accounting value of equity
Awarded remuneration is lower in 2024
(compared to 2023), due to the notably lower
STVR in 2024. Note, STVR is awarded at the
end of the year.
LTVR performance rights
which vested in the year).
The amount received is lower
in 2024 (compared to 2023),
due to the notably lower STVR
in 2024.
Note that whilst all LTVR due
to vest in 2024 lapsed, for
comparative purposes, in 2023
there was no LTVR due to vest
as a result of changing from a
three to four-year performance
period in November 2019.
based variable remuneration,
not the actual awarded or
received value in respect of
the relevant financial year
(i.e., includes the value of
STVR and LTVR expensed in
the year). This is different to
remuneration received in 2024
(which includes prior year
awards which vested).
Fixed
remuneration
$
STVR
$
LTVR
remuneration
$
Total
$
2024
2,500,000
1,300,000
3,375,000
7,175,000
2023
2,500,000
2,400,000
3,375,000
8,275,000
Total
remuneration
$
4,108,134
4,579,413
Total
remuneration
$
5,699,642
6,186,508
6. Accountability and Consequence Framework
6.1 Board considerations of consequences for
material risk, audit and conduct events
6.2 Additional Board governance and
oversight regarding the Markets and
non-financial risk matters in 2024
6.3 Summary of consequences applied
to the CEO and Disclosed Executives
6.4 Role of the Enterprise Accountability Group
6.5 Material positive risk events
6.6 Risk role models
6.7 Compliance with Prudential Standard
CPS 511 Remuneration
6.8 Evolving the Accountability &
Consequence Framework
6.9 Speak up culture
6.10 Application of consequences
6.1 Board considerations of
consequences for material
risk, audit and conduct events
Considerations regarding accountability
and consequences for our most senior
executives are considered and determined
by the People & Culture Committee and
Board, including the application of malus
and clawback (Section 4.5) for the CEO
and Disclosed Executives.
When determining consequences,
consideration is given to the level of
accountability, and the severity of the
issue, including customer impacts.
Consequences may include, for example,
one or more of the following: counselling,
formal warnings, impacts to in year
performance and remuneration outcomes
or application of malus to previously
deferred remuneration and ultimately
termination of employment or clawback
for the most serious issues.
As part of our standard process, reports
on the most material risk, audit and
conduct issues are presented to the
People & Culture, Risk and Audit
Committees at a joint meeting. This
information is considered by the Board
when considering the performance
of the Group, the ANZIP variable
remuneration pool for all employees and
in determining the performance and
remuneration outcomes of the CEO
and Disclosed Executives.
6.2 Additional Board
governance and oversight
regarding the Markets and
non-financial risk matters
in 2024
Further to consideration of material risk,
audit and conduct events, the Board put
in place in 2024 additional governance to
ensure it is well placed to determine
accountability consequences on issues
associated with the various Markets
matters. As part of the additional
governance, the Board also considered
ANZ’s NFR framework, particularly the
additional $250m capital overlay issued
by APRA.
In reviewing these matters, and to ensure
the application of fair and proportionate
consequences that are based on clearly
established evidence and facts, the Board:
• appointed its own independent legal
advisors to review material resulting
from three external reviews, and an
independent Markets expert to ensure
Board independence and that FAR
obligations had been met;
• established a sub-committee
consisting of the Board Chair and three
Board directors with experience in
Markets trading;
• spent considerable time deliberating
remuneration outcomes for the CEO
and Disclosed Executives taking into
consideration the findings from the
accountability reviews, and the fact that
the Executive Committee have collective
accountability for the performance of
the bank; and
• sought independent advice in relation
to the application of the remuneration
consequences for the CEO and
Disclosed Executives.
The Board views that relevant Executive
Committee members should bear
appropriate accountability for actions
and outcomes that took place within
their area of control or influence,
irrespective of whether they themselves
were personally involved or were
otherwise at fault, by virtue of their role
and seniority. Similarly, with respect to
the NFR matters, the Board considered
it appropriate to hold the Executive
Committee collectively accountable.
The Board has determined for the
CEO and Disclosed Executives, that the
deferred remuneration available in
November/December 2024, should vest
in full (subject to performance hurdles).
However, as investigations into the matters
above are ongoing, the Board view that
there is sufficient deferred remuneration
on-foot (Section 9.3), to apply downward
adjustment should further information
come to light that justifies the application
of additional consequences.
72
72
ANZ 2024 Annual Report
Remuneration report
73
6.3 Summary of consequences applied to the CEO and Disclosed Executives
The following summarises how consequences related to the Markets and NFR matters have been considered overall for the CEO
and Disclosed Executives (DEs), both in terms of ANZ’s performance and remuneration framework and the additional Board
governance put in place to address these issues in 2024.
Summary of 2024 Consequence Approach and Outcomes
ANZ
Performance
Assessment
Framework
Additional Board
Governance regarding
Markets & NFR Matters
(incl. external reviews)
Group Risk modifier
adjusted
Individual Risk
outcome adjusted
All DEs impacted –
with higher impact for
those assessed as
having greater
accountability
Board discretion
overlay with
STVR adjustments for
select individuals
Adjustments applied
based on a
consequence lens,
rather than a ‘pure’
performance lens
2025 LTVR
Pre Grant
Assessment
Downward
adjustment
due to 2024 risk
considerations
All DEs impacted
Future
downward
adjustment
(if required)
Further
adjustment
if additional
information
comes to light
at a later date
See Section 4.5
for downward
adjustment options
Fair and
proportionate
remuneration
consequences
2024 STVR
and 2025 LTVR
outcomes
Awarded STVR
outcome of 52% of
maximum for CEO
and average of 60%
of maximum for
Disclosed Executives;
90% LTVR RR
resulting in 95%
2025 LTVR overall
Note, no malus or clawback was applied to the remuneration of the CEO and Disclosed Executives during 2024.
While the 2024 Remuneration Report focuses on consequences for the CEO and Disclosed Executives, the Board has and will
continue to provide oversight (as appropriate), of consequence considerations for other current and former employees should there
be findings of accountability regarding the Markets matters.
6.4 Role of the Enterprise Accountability Group
The Enterprise Accountability Group (EAG) is the governance mechanism for the operation of the Accountability and Consequence
Framework (A&CF), and reviews accountability and consequences for employees below the CEO and ExCo/Disclosed Executives.
The EAG is chaired by the CEO and members include the CRO, CFO and GE T&C. It operates under the delegated authority of
the People & Culture Committee, considering Accountability questions under FAR and accountability in its broader sense, and is
responsible for:
• supporting the Board in monitoring the implementation and ongoing effectiveness of ANZ’s A&CF;
• reviewing the most material risk, conduct and audit events for accountability and the application of consequences,
where appropriate;
• providing guidance to the Divisions and considering initiatives across the Divisions to strengthen risk behaviours;
• acknowledging material positive risk events and recognising risk role models, whose achievements are profiled across the
organisation; and
• approving the release or application of downward adjustment for deferred variable remuneration (noting that for the CEO and
Disclosed Executives this is approved by the Board).
The EAG has processes in place to ensure that we mitigate the risk of conflicts of interest in reviewing events and determining
accountability and consequences. For example, when undertaking accountability reviews, a recommendation regarding the review
leader and scope must be sent to the CRO (or in the case of an event involving Group Risk to the CEO), for review and approval to
ensure the individual is capable of undertaking an impartial and unbiased review.
6.5 Material positive
risk events
The EAG reviews material positive risk
decisions and events – times when our
proactive approach to identifying and
some cases, mandatory) remuneration
team, it feels safe to ask questions, make
consequences for conduct and
mistakes, highlight problems & take social
performance issues, including insights
risks (85%)’ and ‘When I speak up, my
from the previous year’s consequences
ideas, opinions and concerns are heard’
applied. These activities are part of our
(81%) remained strong, in keeping with
continued focus on consistency in
2023, 2022 and 2021 results.1
mitigating risk have had a material positive
application of remuneration consequence
outcome. Reviewing these examples
provides an opportunity to acknowledge
the importance of these events and share
learnings across the enterprise.
6.6 Risk role models
In 2024, 104 individuals were recognised
by the EAG for role modelling outstanding
risk behaviours through their efforts to
identify, manage and mitigate the
organisation’s risks and contribute to our
strong risk culture. Recognition provided
included a personalised e-mail from the
CEO, local recognition events, and having
their achievement profiled on our intranet
and in internal newsletters.
6.7 Compliance with
Prudential Standard
CPS 511 Remuneration
ANZ’s A&CF is an integral part of our
enterprise approach to meeting the
requirements of APRA’s Prudential
Standard CPS 511 Remuneration.
We introduced clawback provisions for the
CEO and our Disclosed Executives effective
2022, in addition to existing downward
adjustment tools such as in year
adjustment, further deferral and malus.
In 2024, we have continued to raise
employee awareness with respect to
accountability and consequences
through explicit references to the A&CF
(including remuneration consequences) in
employee training and communications
and performance and remuneration
policy documents.
In addition, as part of our annual
performance and remuneration process,
we have provided our People Leaders with
guidance regarding appropriate (and in
across ANZ globally.
6.8 Evolving the Accountability
& Consequence Framework
6.10 Application of
consequences
In 2024, there were 1,400 employee
relations cases involving alleged breaches
Our A&CF is designed to support our
of our Code, with 488 resulting in a formal
customer commitment that when things
consequence or the employee leaving
go wrong, we fix them and hold
ANZ, down from 501 in 2023. Breaches
executives, (current and former where we
ranged from compliance/procedural
can), to account where appropriate. We
breaches (20.7%), through to general
are also focused on ensuring that we learn
unacceptable behaviour (38.5%), email/
from the cause of the event, mitigate the
systems misuse (10.5%), attendance
risk of future recurrences and continuously
issues (17.4%), fraud/theft (5.5%), conflict
seek to strengthen our risk culture. We
of interest (3.7%) and breaches of our
review the effectiveness of the A&CF
Equal Opportunity, Bullying and
every year and implement enhancements
Harassment Policy (3.7%). Outcomes
to further strengthen the A&CF based on
following investigations of breaches this
regulatory and internal stakeholder input.
year included 88 terminations, 306
6.9 Speak up culture
We continue to raise employee
awareness of, and promote the various
ways employees can speak up and raise
issues and ideas for improvement
including through initiatives such as:
• targeted jurisdiction and business
specific awareness sessions,
designed to build trust in the process
and program and promote speak
up channels;
• digital communications designed to
build confidence and trust in the
Whistleblower Program and process;
and
• the monitoring of responses in our
employee engagement surveys.
Key risk and speak up scores, including
‘My manager (the person I report to)
demonstrates personal accountability for
managing risk and sound risk behaviours
(92%)‘, ‘I can raise issues and concerns
without fear of reprisals’ (77%), ‘In my
warnings and 94 employees leaving ANZ.
In relation to the application of
consequences to our senior leadership
population (senior executives, executives
and senior managers), 20 current and
former employees (30 in 2023) had a
consequence applied as a result of the
application of our Code of Conduct Policy
and/or findings of accountability for a
relevant event. Consequences included
warnings, impacts on performance and
remuneration outcomes and dismissal.
All employees and contractors across the
enterprise are required to complete
mandatory learning modules. Permanent
employees who fail to complete their
mandatory learning requirements within
30 days of the due date are (in the
absence of genuinely exceptional
circumstances) ineligible for any FR
increase or variable remuneration award
as part of our annual Performance and
Remuneration Review. In 2024, the
mandatory learning course compliance
rate across the enterprise was 99.73%.
1. Results reported are taken from the Q2 and/or Q4 employee engagement surveys, and Risk Culture Survey.
ANZ 2024 Annual Report
72
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
73
73
6.3 Summary of consequences applied to the CEO and Disclosed Executives
The following summarises how consequences related to the Markets and NFR matters have been considered overall for the CEO
and Disclosed Executives (DEs), both in terms of ANZ’s performance and remuneration framework and the additional Board
governance put in place to address these issues in 2024.
Summary of 2024 Consequence Approach and Outcomes
ANZ
Performance
Assessment
Framework
Additional Board
Governance regarding
Markets & NFR Matters
(incl. external reviews)
Group Risk modifier
Board discretion
adjusted
Individual Risk
outcome adjusted
All DEs impacted –
with higher impact for
those assessed as
having greater
accountability
overlay with
STVR adjustments for
select individuals
Adjustments applied
based on a
consequence lens,
rather than a ‘pure’
performance lens
2025 LTVR
Pre Grant
Assessment
Downward
adjustment
due to 2024 risk
considerations
All DEs impacted
Future
downward
adjustment
(if required)
Further
adjustment
if additional
information
comes to light
at a later date
See Section 4.5
for downward
adjustment options
Fair and
proportionate
remuneration
consequences
2024 STVR
and 2025 LTVR
outcomes
Awarded STVR
outcome of 52% of
maximum for CEO
and average of 60%
of maximum for
Disclosed Executives;
90% LTVR RR
resulting in 95%
2025 LTVR overall
Note, no malus or clawback was applied to the remuneration of the CEO and Disclosed Executives during 2024.
While the 2024 Remuneration Report focuses on consequences for the CEO and Disclosed Executives, the Board has and will
continue to provide oversight (as appropriate), of consequence considerations for other current and former employees should there
be findings of accountability regarding the Markets matters.
6.4 Role of the Enterprise Accountability Group
The Enterprise Accountability Group (EAG) is the governance mechanism for the operation of the Accountability and Consequence
Framework (A&CF), and reviews accountability and consequences for employees below the CEO and ExCo/Disclosed Executives.
The EAG is chaired by the CEO and members include the CRO, CFO and GE T&C. It operates under the delegated authority of
the People & Culture Committee, considering Accountability questions under FAR and accountability in its broader sense, and is
responsible for:
where appropriate;
organisation; and
• supporting the Board in monitoring the implementation and ongoing effectiveness of ANZ’s A&CF;
• reviewing the most material risk, conduct and audit events for accountability and the application of consequences,
• providing guidance to the Divisions and considering initiatives across the Divisions to strengthen risk behaviours;
• acknowledging material positive risk events and recognising risk role models, whose achievements are profiled across the
• approving the release or application of downward adjustment for deferred variable remuneration (noting that for the CEO and
Disclosed Executives this is approved by the Board).
The EAG has processes in place to ensure that we mitigate the risk of conflicts of interest in reviewing events and determining
accountability and consequences. For example, when undertaking accountability reviews, a recommendation regarding the review
leader and scope must be sent to the CRO (or in the case of an event involving Group Risk to the CEO), for review and approval to
ensure the individual is capable of undertaking an impartial and unbiased review.
6.5 Material positive
risk events
The EAG reviews material positive risk
decisions and events – times when our
proactive approach to identifying and
mitigating risk have had a material positive
outcome. Reviewing these examples
provides an opportunity to acknowledge
the importance of these events and share
learnings across the enterprise.
6.6 Risk role models
In 2024, 104 individuals were recognised
by the EAG for role modelling outstanding
risk behaviours through their efforts to
identify, manage and mitigate the
organisation’s risks and contribute to our
strong risk culture. Recognition provided
included a personalised e-mail from the
CEO, local recognition events, and having
their achievement profiled on our intranet
and in internal newsletters.
6.7 Compliance with
Prudential Standard
CPS 511 Remuneration
ANZ’s A&CF is an integral part of our
enterprise approach to meeting the
requirements of APRA’s Prudential
Standard CPS 511 Remuneration.
We introduced clawback provisions for the
CEO and our Disclosed Executives effective
2022, in addition to existing downward
adjustment tools such as in year
adjustment, further deferral and malus.
In 2024, we have continued to raise
employee awareness with respect to
accountability and consequences
through explicit references to the A&CF
(including remuneration consequences) in
employee training and communications
and performance and remuneration
policy documents.
In addition, as part of our annual
performance and remuneration process,
we have provided our People Leaders with
guidance regarding appropriate (and in
some cases, mandatory) remuneration
consequences for conduct and
performance issues, including insights
from the previous year’s consequences
applied. These activities are part of our
continued focus on consistency in
application of remuneration consequence
across ANZ globally.
6.8 Evolving the Accountability
& Consequence Framework
Our A&CF is designed to support our
customer commitment that when things
go wrong, we fix them and hold
executives, (current and former where we
can), to account where appropriate. We
are also focused on ensuring that we learn
from the cause of the event, mitigate the
risk of future recurrences and continuously
seek to strengthen our risk culture. We
review the effectiveness of the A&CF
every year and implement enhancements
to further strengthen the A&CF based on
regulatory and internal stakeholder input.
6.9 Speak up culture
We continue to raise employee
awareness of, and promote the various
ways employees can speak up and raise
issues and ideas for improvement
including through initiatives such as:
• targeted jurisdiction and business
specific awareness sessions,
designed to build trust in the process
and program and promote speak
up channels;
• digital communications designed to
build confidence and trust in the
Whistleblower Program and process;
and
• the monitoring of responses in our
employee engagement surveys.
Key risk and speak up scores, including
‘My manager (the person I report to)
demonstrates personal accountability for
managing risk and sound risk behaviours
(92%)‘, ‘I can raise issues and concerns
without fear of reprisals’ (77%), ‘In my
team, it feels safe to ask questions, make
mistakes, highlight problems & take social
risks (85%)’ and ‘When I speak up, my
ideas, opinions and concerns are heard’
(81%) remained strong, in keeping with
2023, 2022 and 2021 results.1
6.10 Application of
consequences
In 2024, there were 1,400 employee
relations cases involving alleged breaches
of our Code, with 488 resulting in a formal
consequence or the employee leaving
ANZ, down from 501 in 2023. Breaches
ranged from compliance/procedural
breaches (20.7%), through to general
unacceptable behaviour (38.5%), email/
systems misuse (10.5%), attendance
issues (17.4%), fraud/theft (5.5%), conflict
of interest (3.7%) and breaches of our
Equal Opportunity, Bullying and
Harassment Policy (3.7%). Outcomes
following investigations of breaches this
year included 88 terminations, 306
warnings and 94 employees leaving ANZ.
In relation to the application of
consequences to our senior leadership
population (senior executives, executives
and senior managers), 20 current and
former employees (30 in 2023) had a
consequence applied as a result of the
application of our Code of Conduct Policy
and/or findings of accountability for a
relevant event. Consequences included
warnings, impacts on performance and
remuneration outcomes and dismissal.
All employees and contractors across the
enterprise are required to complete
mandatory learning modules. Permanent
employees who fail to complete their
mandatory learning requirements within
30 days of the due date are (in the
absence of genuinely exceptional
circumstances) ineligible for any FR
increase or variable remuneration award
as part of our annual Performance and
Remuneration Review. In 2024, the
mandatory learning course compliance
rate across the enterprise was 99.73%.
1. Results reported are taken from the Q2 and/or Q4 employee engagement surveys, and Risk Culture Survey.
74
74
ANZ 2024 Annual Report
Remuneration report
75
7. Non-Executive Director (NED) remuneration
7.1 NED Remuneration structure
7.2 2024 Statutory remuneration – NEDS
7.1 NED Remuneration structure
A review of 2024 NED fees was completed by the People & Culture Committee in September 2023. Following that review of 2024 fees
(as previously disclosed in the 2023 Remuneration Report), the People & Culture Committee approved a 2% increase to the NED
member fee (from $240,000 to $245,000) which has remained unchanged since 2016. The Board Chairman fee remains unchanged.
Following review, the People & Culture Committee also approved the alignment of the fee structure across all Committees increasing
each Committee chair fee to $68,000, and each Committee member fee to $34,000. This fee review considered increased complexity
in the regulatory environment, uplifts for ANZ’s broader employee population, and the external market.
The fee structure is applicable to NEDs of ANZGHL and ANZBGL. Fees prior to the implementation of the Non-Operating Holding
Company (NOHC) structure related to membership of the ANZBGL Board, and post implementation are viewed as a single fee covering
both Boards (i.e., membership of ANZGHL and ANZBGL Boards/Committees). Currently the fee structure applies irrespective of whether
NEDs serve on one or more Boards.
NEDs receive a fee for being a Director of the Board, and additional fees for either chairing, or being a member of a Board Committee.
The Chairman of the Board does not receive additional fees for serving on a Board Committee.
In setting Board and Committee fees, the following are considered: general industry practice, ASX Corporate Governance Principles and
Recommendations, the responsibilities and risks attached to the NED role, the time commitment expected of NEDs on Group and
Company matters, and fees paid to NEDs of comparable companies.
ANZ compares NED fees to a comparator group of Australian listed companies with a similar market capitalisation, with particular focus
on the major financial services institutions. This is considered an appropriate group, given similarity in size and complexity, nature of
work and time commitment by NEDs.
To maintain NED independence and impartiality:
• NED fees are not linked to the performance of the Group; and
• NEDs are not eligible to participate in any of the Group’s variable remuneration arrangements.
The current aggregate fee pool for NEDs of $4m was approved by shareholders at the 2012 AGM. The annual total of NEDs’ fees,
including superannuation contributions, is within this agreed limit.
This table shows the NED fee policy structure for 2024 compared to 2023.
NED fee policy structure – 2024 and 2023
Board1,2
Audit Committee
Risk Committee
People & Culture Committee (previously Human Resources Committee)
Digital Business & Technology Committee
Ethics, Environment, Social & Governance Committee
Financial
year
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Chair fee
Member fee
$850,000
$850,000
$245,000
$240,000
$68,000
$65,000
$68,000
$65,000
$68,000
$65,000
$68,000
$55,000
$68,000
$55,000
$34,000
$32,500
$34,000
$32,500
$34,000
$32,500
$34,000
$27,500
$34,000
$27,500
1. Including superannuation. 2. The Chairman of the Board does not receive additional fees for serving on a Board Committee. The Chairman of the Board and NEDs do not receive a
fee for serving on the Nomination and Board Operations Committee.
NED shareholding guidelines
We expect our NEDs to hold ANZ shares. NEDs are required:
• to accumulate shares – over a five-year period from their appointment to the value of:
– 100% of the NED member fee for Directors;
– 100% of the Chairman fee for the Chairman; and
• to maintain this shareholding while they are a Director of ANZ.
Based on the ANZ share price as at 30 September 2024, all NEDs who have served five years met the holding guideline.
7.2 2024 Statutory remuneration – NEDS
The following table outlines the statutory remuneration of NEDs1 disclosed in accordance with Australian Accounting Standards.
1. In addition to the fees shown below the following NEDs were awarded fees relating to other ANZ entities:
• Jane Halton awarded $60,984 in 2024 for her role as Chair of Norfina Limited (Suncorp Bank).
• Christine O’Reilly awarded $35,743 in 2024 for her role as NED of Norfina Limited (Suncorp Bank).
• Scott St John awarded NZD 324,342 in 2024 for his roles as Chair and NED of ANZ Bank New Zealand Limited.
• Sir John Key awarded NZD 200,697 in 2024 (NZD 422,050 in 2023) for his role as Former Chair of ANZ Bank New Zealand Limited.
2024 Statutory remuneration – NEDS
Current Non-Executive Directors
P O’Sullivan
R Gibb4
J Halton
H Kramer4
C O’Reilly
J Smith
S St John4
I Atlas4
J Key4
J Macfarlane4
Former Non-Executive Directors
Short-term NED benefits
Post-
employment
Financial
year
Fees1
$
Non monetary
Super
Total
benefits2
contributions1
remuneration3
$
$
2024
2023
2024
2024
2023
2024
2023
2024
2023
2024
2023
2024
2024
2023
2024
2023
2024
2023
2024
2023
821,968
824,181
206,291
358,281
329,181
328,577
35,841
362,484
344,181
347,332
298,889
146,879
78,047
339,181
143,595
301,681
78,047
336,443
2,871,501
2,809,578
184
184
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,295
4,974
28,032
850,000
25,819
850,000
18,253
28,032
25,819
28,032
3,942
28,032
25,819
28,032
25,819
14,800
6,850
25,819
13,699
25,819
6,850
25,819
224,728
386,313
355,000
356,793
39,783
390,516
370,000
375,364
324,708
161,679
84,897
365,000
158,589
327,500
89,871
362,262
Total of all Non-Executive Directors
6,637
200,612
3,078,750
184,675
2,994,253
1. Year-on-year differences in fees relate to changes to the NED fees and also to the superannuation Maximum Contribution Base. 2. Non monetary benefits generally consist of
company-funded benefits (and the associated Fringe Benefits Tax) such as welcome gifts from the ANZ NZ Board and gifts provided upon retirement. 3. Long-term benefits and
share-based payments do not apply for the NEDs. 4. Remuneration based on time as a NED in either 2023 (H Kramer) or 2024 (R Gibb, S St John, I Atlas, J Key and J Macfarlane).
ANZ 2024 Annual Report
74
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
75
75
7. Non-Executive Director (NED) remuneration
7.1 NED Remuneration structure
7.2 2024 Statutory remuneration – NEDS
7.1 NED Remuneration structure
A review of 2024 NED fees was completed by the People & Culture Committee in September 2023. Following that review of 2024 fees
(as previously disclosed in the 2023 Remuneration Report), the People & Culture Committee approved a 2% increase to the NED
member fee (from $240,000 to $245,000) which has remained unchanged since 2016. The Board Chairman fee remains unchanged.
Following review, the People & Culture Committee also approved the alignment of the fee structure across all Committees increasing
each Committee chair fee to $68,000, and each Committee member fee to $34,000. This fee review considered increased complexity
in the regulatory environment, uplifts for ANZ’s broader employee population, and the external market.
The fee structure is applicable to NEDs of ANZGHL and ANZBGL. Fees prior to the implementation of the Non-Operating Holding
Company (NOHC) structure related to membership of the ANZBGL Board, and post implementation are viewed as a single fee covering
both Boards (i.e., membership of ANZGHL and ANZBGL Boards/Committees). Currently the fee structure applies irrespective of whether
NEDs serve on one or more Boards.
NEDs receive a fee for being a Director of the Board, and additional fees for either chairing, or being a member of a Board Committee.
The Chairman of the Board does not receive additional fees for serving on a Board Committee.
In setting Board and Committee fees, the following are considered: general industry practice, ASX Corporate Governance Principles and
Recommendations, the responsibilities and risks attached to the NED role, the time commitment expected of NEDs on Group and
Company matters, and fees paid to NEDs of comparable companies.
ANZ compares NED fees to a comparator group of Australian listed companies with a similar market capitalisation, with particular focus
on the major financial services institutions. This is considered an appropriate group, given similarity in size and complexity, nature of
work and time commitment by NEDs.
To maintain NED independence and impartiality:
• NED fees are not linked to the performance of the Group; and
• NEDs are not eligible to participate in any of the Group’s variable remuneration arrangements.
The current aggregate fee pool for NEDs of $4m was approved by shareholders at the 2012 AGM. The annual total of NEDs’ fees,
including superannuation contributions, is within this agreed limit.
This table shows the NED fee policy structure for 2024 compared to 2023.
NED fee policy structure – 2024 and 2023
Board1,2
Audit Committee
Risk Committee
People & Culture Committee (previously Human Resources Committee)
Digital Business & Technology Committee
Ethics, Environment, Social & Governance Committee
Financial
year
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Chair fee
Member fee
$850,000
$850,000
$245,000
$240,000
$68,000
$65,000
$68,000
$65,000
$68,000
$65,000
$68,000
$55,000
$68,000
$55,000
$34,000
$32,500
$34,000
$32,500
$34,000
$32,500
$34,000
$27,500
$34,000
$27,500
1. Including superannuation. 2. The Chairman of the Board does not receive additional fees for serving on a Board Committee. The Chairman of the Board and NEDs do not receive a
fee for serving on the Nomination and Board Operations Committee.
NED shareholding guidelines
We expect our NEDs to hold ANZ shares. NEDs are required:
• to accumulate shares – over a five-year period from their appointment to the value of:
– 100% of the NED member fee for Directors;
– 100% of the Chairman fee for the Chairman; and
• to maintain this shareholding while they are a Director of ANZ.
Based on the ANZ share price as at 30 September 2024, all NEDs who have served five years met the holding guideline.
7.2 2024 Statutory remuneration – NEDS
The following table outlines the statutory remuneration of NEDs1 disclosed in accordance with Australian Accounting Standards.
1. In addition to the fees shown below the following NEDs were awarded fees relating to other ANZ entities:
• Jane Halton awarded $60,984 in 2024 for her role as Chair of Norfina Limited (Suncorp Bank).
• Christine O’Reilly awarded $35,743 in 2024 for her role as NED of Norfina Limited (Suncorp Bank).
• Scott St John awarded NZD 324,342 in 2024 for his roles as Chair and NED of ANZ Bank New Zealand Limited.
• Sir John Key awarded NZD 200,697 in 2024 (NZD 422,050 in 2023) for his role as Former Chair of ANZ Bank New Zealand Limited.
2024 Statutory remuneration – NEDS
Current Non-Executive Directors
P O’Sullivan
R Gibb4
J Halton
H Kramer4
C O’Reilly
J Smith
S St John4
Former Non-Executive Directors
I Atlas4
J Key4
J Macfarlane4
Total of all Non-Executive Directors
Short-term NED benefits
Post-
employment
Financial
year
Fees1
$
Non monetary
benefits2
$
Super
contributions1
$
Total
remuneration3
$
2024
2023
2024
2024
2023
2024
2023
2024
2023
2024
2023
2024
2024
2023
2024
2023
2024
2023
2024
2023
821,968
824,181
206,291
358,281
329,181
328,577
35,841
362,484
344,181
347,332
298,889
146,879
78,047
339,181
143,595
301,681
78,047
336,443
2,871,501
2,809,578
-
-
184
-
-
184
-
-
-
-
-
-
-
-
1,295
-
4,974
-
28,032
850,000
25,819
850,000
18,253
28,032
25,819
28,032
3,942
28,032
25,819
28,032
25,819
14,800
6,850
25,819
13,699
25,819
6,850
25,819
224,728
386,313
355,000
356,793
39,783
390,516
370,000
375,364
324,708
161,679
84,897
365,000
158,589
327,500
89,871
362,262
6,637
200,612
3,078,750
-
184,675
2,994,253
1. Year-on-year differences in fees relate to changes to the NED fees and also to the superannuation Maximum Contribution Base. 2. Non monetary benefits generally consist of
company-funded benefits (and the associated Fringe Benefits Tax) such as welcome gifts from the ANZ NZ Board and gifts provided upon retirement. 3. Long-term benefits and
share-based payments do not apply for the NEDs. 4. Remuneration based on time as a NED in either 2023 (H Kramer) or 2024 (R Gibb, S St John, I Atlas, J Key and J Macfarlane).
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77
8. Remuneration governance
8.1 The People & Culture Committee
8.2 Internal governance
8.1 The People &
Culture Committee
8.1.1 Role of the People &
Culture Committee
The Board is ultimately responsible for
and oversees ANZ Group’s Performance
and Remuneration Framework (P&R
Framework) and its effective application
throughout the ANZ Group. The People &
Culture Committee’s role is to assist the
Board in its oversight of the effective
operation of P&R Framework and other
T&C matters. It has been delegated
authority to act as the remuneration
committee for ANZBGL.
During the year the People & Culture
Committee met on six occasions and
reviewed and approved, or made
recommendations to the Board on
matters including:
• remuneration for the CEO and other
key executives (broader than those
disclosed in the Remuneration Report)
in accordance with ANZ’s Board level
P&R Policies, and fees for the NEDs;
• matters related to P&R Framework
compliance with APRA’s Prudential
Standard CPS 511 Remuneration,
and updates on Treasury’s Financial
Accountability Regime (FAR);
• the ANZ Group Scorecard (annual
objectives setting and assessment) and
annual variable remuneration spend;
• performance and reward outcomes
for key senior executives, including the
consideration of material events that
have either occurred or came to light
in the year;
• the release, further deferral or
application of malus of deferred
remuneration or clawback;
• key senior executive appointments
and terminations;
• the review of ANZ’s Board level P&R
Policies, and the Accountability &
Consequence Framework (A&CF);
• building capabilities required
to deliver on our strategy;
• succession plans for key senior
executives; and
• culture, diversity and inclusion,
employee engagement, and
how we work.
8.1.2 Link between
remuneration and risk
The People & Culture Committee has a
strong focus on the relationship between
business performance, risk management
and remuneration, aligned with our
business strategy. The chairs of the Risk
and Audit Committees and the full Board
(ANZGHL and ANZBGL) are in attendance
for specific People & Culture Committee
meetings. A joint meeting of the People &
Culture, Risk and Audit Committees was
held to review:
• material risk, conduct and audit
events that either occurred or came
to light in 2024;
• 2024 performance and variable
remuneration recommendations at
both the Group, CEO and Disclosed
Executive level.
To further reflect the importance of the
link between remuneration and risk:
• the Board had three NEDs (in addition to
the Chairman) in 2024 who served on
both the People & Culture Committee
and the Risk Committee;
• the People & Culture Committee has
free and unfettered access to risk and
financial control personnel (the CRO
and CFO attend People & Culture
Committee meetings for specific
agenda items);
• the CRO (together with GE T&C and
GGM IA) provides an independent
report to the People & Culture
Committee on the most material risk,
conduct and audit events (as relevant)
to help inform considerations of
performance and remuneration, and
accountability and consequences at the
Group, Divisional and individual level;
More details about the role of the People & Culture Committee, including its Charter,
can be found on our website. Go to anz.com > Our company > Strong governance
framework > ANZ People & Culture Committee Charter.
• the CRO also provides an independent
The Board made its decisions independently, using the information provided and with careful regard to ANZ’s key strategic priorities,
report to assist the Board in their
assessment of performance and
remuneration outcomes for the CEO
and Disclosed Executives;
• the chairs of the Risk and Audit
Committees are asked to provide input
to ensure appropriate consideration of
all relevant risk and internal audit issues;
• the ANZ Group Scorecard and Divisional
Scorecards include Risk as a key
element acting as a modifier, and it
forms an integral part of each
framework’s assessment and directly
impacts the overall outcomes; and
• the LTVR restricted rights pre grant and
pre vest assessments undertaken by
the Board are primarily based on
non-financial risk outcomes.
8.1.3 Conflict of interest
To help mitigate potential conflicts
of interest:
• management are not in attendance
when their own performance or
remuneration is being discussed by the
People & Culture Committee or Board;
• the CEO’s STVR is funded and
determined separately from the ANZIP
variable remuneration pool;
• the CRO’s remuneration arrangements
differ to other Disclosed Executives to
preserve the independence of the role;
• the EAG also has processes in place
to help mitigate conflicts of interest
as outlined in Section 6; and
• the People & Culture Committee seeks
input from a number of sources to
inform their consideration of
performance and remuneration
outcomes for the CEO and Disclosed
Executives including:
– independent reports from Risk,
Finance, Talent and Culture, and
Internal Audit;
– material risk, conduct and audit event
data provided by the CRO;
– input from both the Audit Committee
and the Risk Committee of the Board.
8.1.4 External advisors provided information but not recommendations
The People & Culture Committee can engage independent external advisors as needed.
Throughout the year, the People & Culture Committee and management received information from the following external advisors:
Ashurst, Deloitte, EY, Guerdon Associates, PayIQ Executive Pay and PricewaterhouseCoopers. This information related to market data,
market practices, analysis and modelling, legislative requirements and the interpretation of governance and regulatory requirements.
During the year, ANZ did not receive any remuneration recommendations from external advisors about the remuneration of KMP.
ANZ employs in-house remuneration professionals who provide recommendations to the People & Culture Committee and the Board.
purpose and values, risk appetite, and the ANZ Group P&R Framework, ANZ’s Board level P&R Policies and ANZ’s Reward Principles.
8.2 Internal governance
8.2.1 Hedging prohibition
All deferred equity must remain at risk until it has fully vested. Accordingly, executives and their associated persons must not enter into
any schemes that specifically protect the unvested value of equity allocated. If they do so, then they would forfeit the relevant equity.
8.2.2 CEO and Disclosed Executives’ shareholding guidelines
We expect the CEO and each Disclosed Executive to, over a five-year period:
• accumulate ANZ shares to the value of 200% of their FR; and
• maintain this shareholding level while they are an executive of ANZ.
Executives are permitted to sell ANZ securities to meet taxation obligations on employee equity even if below the 200% guideline.
However, tax obligations for the purpose of these guidelines is limited to that arising from the initial taxing point event (i.e., when the
deferred shares vest or rights are exercised).
Shareholdings include all vested and unvested equity (excluding performance rights). Based on equity holdings as at 30 September
2024, the CEO and all Disclosed Executives meet or, if less than five years’ tenure, are on track to meet their minimum shareholding
guidelines requirements.
8.2.3 CEO and Disclosed Executives’ contract terms and equity treatment
The details of the contract terms and the equity treatment on termination (in accordance with the Conditions of Grant) relating to the
CEO and Disclosed Executives are below. Although they are similar, they vary in some cases to suit different circumstances.
Type of contract
Permanent ongoing employment contract.
Notice on resignation
• 12 months by CEO;
• 6 months by Disclosed Executives.1
Notice on termination
• 12 months by ANZ for CEO and Disclosed Executives.3
by ANZ2
However, ANZ may immediately terminate an individual’s employment at any time in the case of serious
misconduct. In that case, the individual will be entitled only to payment of FR up to the date of their
termination and their statutory entitlements.
How unvested equity is
Executives who resign or are terminated will forfeit all their unvested deferred equity – unless the Board
treated on leaving ANZ
determines otherwise.
If an executive is terminated due to redundancy or they are classified as a ‘good leaver’, unless the
Board determines otherwise, then:
• their STVR (deferred shares/share rights) remain on foot and are released at the original vesting date;
• their LTVR (restricted rights/performance rights) (for grants awarded from 31 December 2020) remain
on foot and are released at the original vesting date (to the extent that the performance hurdles are
met); and
• their performance rights4 (for grants awarded pre 31 December 2020) are pro-rated for service to
the full notice termination date and released at the original vesting date (to the extent that the
performance hurdles are met).
On an executive’s death or total and permanent disablement, their deferred equity vests.
Unvested equity remains subject to malus post termination.
Change of control
If a change of control or other similar event occurs, then we will test the performance conditions
(applies to the CEO only)
applying to the CEO’s LTVR (restricted rights/performance rights). They will vest to the extent that the
performance conditions are satisfied.
1. 3 months by the former Acting GE T&C. 2. For M Carnegie, E Clements, K Corbally, F Faruqui, G Florian, C Morgan, A Strong, M Whelan and R Howell, their contracts state that in
particular circumstances they may be eligible for a retrenchment benefit in accordance with the relevant ANZ policy, as varied from time to time. For A Watson, notice on retrenchment
is 6 weeks and compensation on retrenchment is calculated on a scale up to a maximum of 79 weeks after 25 years’ service. 3. 6 months by ANZ for the former Acting GE T&C. 4. Or
deferred share rights granted to the CRO instead of performance rights.
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Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
77
77
8. Remuneration governance
8.1.1 Role of the People &
executives; and
8.1 The People & Culture Committee
8.2 Internal governance
8.1 The People &
Culture Committee
Culture Committee
The Board is ultimately responsible for
and oversees ANZ Group’s Performance
and Remuneration Framework (P&R
Framework) and its effective application
throughout the ANZ Group. The People &
Culture Committee’s role is to assist the
Board in its oversight of the effective
operation of P&R Framework and other
T&C matters. It has been delegated
authority to act as the remuneration
committee for ANZBGL.
During the year the People & Culture
Committee met on six occasions and
reviewed and approved, or made
recommendations to the Board on
matters including:
• remuneration for the CEO and other
key executives (broader than those
disclosed in the Remuneration Report)
in accordance with ANZ’s Board level
P&R Policies, and fees for the NEDs;
• matters related to P&R Framework
compliance with APRA’s Prudential
Standard CPS 511 Remuneration,
and updates on Treasury’s Financial
Accountability Regime (FAR);
• building capabilities required
• the CRO also provides an independent
to deliver on our strategy;
• succession plans for key senior
• culture, diversity and inclusion,
employee engagement, and
how we work.
8.1.2 Link between
remuneration and risk
report to assist the Board in their
assessment of performance and
remuneration outcomes for the CEO
and Disclosed Executives;
• the chairs of the Risk and Audit
Committees are asked to provide input
to ensure appropriate consideration of
all relevant risk and internal audit issues;
• the ANZ Group Scorecard and Divisional
The People & Culture Committee has a
Scorecards include Risk as a key
strong focus on the relationship between
element acting as a modifier, and it
business performance, risk management
forms an integral part of each
and remuneration, aligned with our
framework’s assessment and directly
business strategy. The chairs of the Risk
impacts the overall outcomes; and
• material risk, conduct and audit
events that either occurred or came
of interest:
and Audit Committees and the full Board
(ANZGHL and ANZBGL) are in attendance
for specific People & Culture Committee
meetings. A joint meeting of the People &
Culture, Risk and Audit Committees was
held to review:
to light in 2024;
• 2024 performance and variable
remuneration recommendations at
both the Group, CEO and Disclosed
Executive level.
To further reflect the importance of the
link between remuneration and risk:
• the Board had three NEDs (in addition to
• the LTVR restricted rights pre grant and
pre vest assessments undertaken by
the Board are primarily based on
non-financial risk outcomes.
8.1.3 Conflict of interest
To help mitigate potential conflicts
• management are not in attendance
when their own performance or
remuneration is being discussed by the
People & Culture Committee or Board;
• the CEO’s STVR is funded and
determined separately from the ANZIP
variable remuneration pool;
• the CRO’s remuneration arrangements
differ to other Disclosed Executives to
preserve the independence of the role;
• the EAG also has processes in place
to help mitigate conflicts of interest
as outlined in Section 6; and
• the People & Culture Committee seeks
input from a number of sources to
inform their consideration of
performance and remuneration
outcomes for the CEO and Disclosed
Executives including:
– independent reports from Risk,
Finance, Talent and Culture, and
Internal Audit;
– material risk, conduct and audit event
data provided by the CRO;
accountability and consequences at the
– input from both the Audit Committee
Group, Divisional and individual level;
and the Risk Committee of the Board.
• the ANZ Group Scorecard (annual
objectives setting and assessment) and
the Chairman) in 2024 who served on
both the People & Culture Committee
annual variable remuneration spend;
and the Risk Committee;
• performance and reward outcomes
• the People & Culture Committee has
for key senior executives, including the
consideration of material events that
have either occurred or came to light
in the year;
• the release, further deferral or
application of malus of deferred
remuneration or clawback;
• key senior executive appointments
and terminations;
• the review of ANZ’s Board level P&R
Policies, and the Accountability &
Consequence Framework (A&CF);
free and unfettered access to risk and
financial control personnel (the CRO
and CFO attend People & Culture
Committee meetings for specific
agenda items);
• the CRO (together with GE T&C and
GGM IA) provides an independent
report to the People & Culture
Committee on the most material risk,
conduct and audit events (as relevant)
to help inform considerations of
performance and remuneration, and
More details about the role of the People & Culture Committee, including its Charter,
can be found on our website. Go to anz.com > Our company > Strong governance
framework > ANZ People & Culture Committee Charter.
8.1.4 External advisors provided information but not recommendations
The People & Culture Committee can engage independent external advisors as needed.
Throughout the year, the People & Culture Committee and management received information from the following external advisors:
Ashurst, Deloitte, EY, Guerdon Associates, PayIQ Executive Pay and PricewaterhouseCoopers. This information related to market data,
market practices, analysis and modelling, legislative requirements and the interpretation of governance and regulatory requirements.
During the year, ANZ did not receive any remuneration recommendations from external advisors about the remuneration of KMP.
ANZ employs in-house remuneration professionals who provide recommendations to the People & Culture Committee and the Board.
The Board made its decisions independently, using the information provided and with careful regard to ANZ’s key strategic priorities,
purpose and values, risk appetite, and the ANZ Group P&R Framework, ANZ’s Board level P&R Policies and ANZ’s Reward Principles.
8.2 Internal governance
8.2.1 Hedging prohibition
All deferred equity must remain at risk until it has fully vested. Accordingly, executives and their associated persons must not enter into
any schemes that specifically protect the unvested value of equity allocated. If they do so, then they would forfeit the relevant equity.
8.2.2 CEO and Disclosed Executives’ shareholding guidelines
We expect the CEO and each Disclosed Executive to, over a five-year period:
• accumulate ANZ shares to the value of 200% of their FR; and
• maintain this shareholding level while they are an executive of ANZ.
Executives are permitted to sell ANZ securities to meet taxation obligations on employee equity even if below the 200% guideline.
However, tax obligations for the purpose of these guidelines is limited to that arising from the initial taxing point event (i.e., when the
deferred shares vest or rights are exercised).
Shareholdings include all vested and unvested equity (excluding performance rights). Based on equity holdings as at 30 September
2024, the CEO and all Disclosed Executives meet or, if less than five years’ tenure, are on track to meet their minimum shareholding
guidelines requirements.
8.2.3 CEO and Disclosed Executives’ contract terms and equity treatment
The details of the contract terms and the equity treatment on termination (in accordance with the Conditions of Grant) relating to the
CEO and Disclosed Executives are below. Although they are similar, they vary in some cases to suit different circumstances.
Type of contract
Permanent ongoing employment contract.
Notice on resignation
• 12 months by CEO;
• 6 months by Disclosed Executives.1
Notice on termination
by ANZ2
• 12 months by ANZ for CEO and Disclosed Executives.3
However, ANZ may immediately terminate an individual’s employment at any time in the case of serious
misconduct. In that case, the individual will be entitled only to payment of FR up to the date of their
termination and their statutory entitlements.
How unvested equity is
treated on leaving ANZ
Executives who resign or are terminated will forfeit all their unvested deferred equity – unless the Board
determines otherwise.
If an executive is terminated due to redundancy or they are classified as a ‘good leaver’, unless the
Board determines otherwise, then:
• their STVR (deferred shares/share rights) remain on foot and are released at the original vesting date;
• their LTVR (restricted rights/performance rights) (for grants awarded from 31 December 2020) remain
on foot and are released at the original vesting date (to the extent that the performance hurdles are
met); and
• their performance rights4 (for grants awarded pre 31 December 2020) are pro-rated for service to
the full notice termination date and released at the original vesting date (to the extent that the
performance hurdles are met).
On an executive’s death or total and permanent disablement, their deferred equity vests.
Unvested equity remains subject to malus post termination.
Change of control
(applies to the CEO only)
If a change of control or other similar event occurs, then we will test the performance conditions
applying to the CEO’s LTVR (restricted rights/performance rights). They will vest to the extent that the
performance conditions are satisfied.
1. 3 months by the former Acting GE T&C. 2. For M Carnegie, E Clements, K Corbally, F Faruqui, G Florian, C Morgan, A Strong, M Whelan and R Howell, their contracts state that in
particular circumstances they may be eligible for a retrenchment benefit in accordance with the relevant ANZ policy, as varied from time to time. For A Watson, notice on retrenchment
is 6 weeks and compensation on retrenchment is calculated on a scale up to a maximum of 79 weeks after 25 years’ service. 3. 6 months by ANZ for the former Acting GE T&C. 4. Or
deferred share rights granted to the CRO instead of performance rights.
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79
9. Other remuneration information
9.1 LTVR Remuneration detail
9.2 2024 Statutory remuneration –
CEO and Disclosed Executives
9.3 Equity holdings
9.4 Loans
9.5 Other transactions
9.1 LTVR Remuneration detail1
The award of restricted rights ensures that LTVR provides material weight to non-financial measures (as required under APRA’s
Prudential Standard CPS 511 Remuneration), as well as supporting long-term alignment with shareholders.
Having a risk-based focus reflects the intent of the Prudential Standard CPS 511 Remuneration in ensuring remuneration arrangements
appropriately incentivise individuals to prudently manage risks. The performance conditions are designed to ensure there is focus on
both material risk events and building a strong risk culture over the longer term.
The following table details design features common to both LTVR restricted rights and performance rights.
Below details the LTVR approach that applied to the 2024 LTVR award granted in November/December 2023.
LTVR element
Detail
Description
Restricted rights and performance rights provide a right to acquire one ordinary ANZ share at nil cost –
as long as applicable time and performance conditions are met. Their future value may range from zero to
an indeterminate value. The value depends on performance against the applicable performance condition
and on the share price at the time of exercise.
Performance period
Both restricted rights and performance rights have a four-year performance period commencing from
1 October and ending four years later on 30 September (e.g., 1 October 2023 to 30 September 2027 for
the 2024 grant), noting that LTVR is awarded at the start of the financial year (rather than the end).
A four-year performance period provides sufficient time for longer term performance to be reflected.
Deferral periods
The deferral period is the sum of the four-year performance period and the applicable holding period.
The holding period commences the day after the end of the four-year performance period (e.g., 1 October
2027 in the case of the 2024 LTVR award), and finishes on the 4th, 5th or 6th anniversary of grants.
Exercise period
Rights can only be exercised at the end of the relevant deferral period (4, 5 or 6 years) when the rights vest
and become exercisable.
Expensing
Dividends
There is a two-year exercise period which commences at the end of the relevant deferral period for restricted
rights and performance rights.
ANZ engages PricewaterhouseCoopers to independently determine the fair value of restricted rights and
performance rights, which is only used for expensing for accounting purposes. They consider factors including:
the market performance conditions, share price volatility, life of the instrument, dividend yield, and share price
at grant date.
A dividend equivalent payment (DEP) is paid in cash at the end of the relevant deferral period, but is only made
to the extent that all or part of the underlying rights meet the relevant performance condition and vest to the
individual. Dividend equivalent payments accrue over the full deferral period for restricted rights, and only
during the holding period for performance rights.
Allocation basis
The value the Board uses to determine the number of restricted rights and performance rights to be allocated
to the CEO and Disclosed Executives is the face value of ANZGHL shares traded on the ASX in the five trading
days leading up to and including 1 October (beginning of the financial year and LTVR performance period).
9.1.1 2024 LTVR restricted rights further details – CEO and Disclosed Executives1
LTVR element
Performance condition detail
Restricted rights
Pre grant assessment purpose: Determines whether any reduction should be made to restricted rights award
pre grant and pre
value and is primarily based on outcomes in the prior financial year.
vest assessments
Pre vest assessment purpose: Determines whether the restricted rights amount awarded should vest in full
and is based on outcomes over the four-year performance period.
The pre grant and pre vest assessments also take into consideration any adjustments already applied for
the same event/outcomes in either the current or prior years (i.e., adjustments to STVR and LTVR, malus
and clawback), to ensure the overall impact is fair and proportionate to the severity of the outcome. Therefore,
given other remuneration adjustments are likely to be considered first, and as the award of restricted rights is
future focused, it is anticipated that restricted rights will be allocated at full value in most years – unless the
outcome of the following three assessment steps determines otherwise.
Step 1
Step 2
Step 3
Assess Prudential soundness
Assess risk measures
Apply Board discretion
• Nil award if ANZ does not
• Consideration of any Material
• Board to determine whether any
meet capital ratio and
liquidity prudential
minimums.
Risk Outcomes from executive
reduction should be made to LTVR
actions or inactions which are
restricted rights outcome based on
expected to/or have resulted in
consideration of a range of factors,
significant impacts.
including:
• Consideration of any significant
– the outcomes from steps 1 and 2;
adverse change in APRA’s
Active Supervision level.
– the impact, if any, of the issue/s
on ANZ’s reputation/standing in
• Consideration of Risk Culture
(additional measure for pre vest)
the market;
that examines whether or not
ANZ has maintained (or made
progress towards) a sound risk
culture, considering both
executive actions or inactions.
– whether the issue was specific to
ANZ, the banking industry or the
broader market;
– any impacts already applied (e.g.,
regarding downward adjustment
mechanisms, pre grant
assessment impact to LTVR
restricted rights);
– whether any impact should be
made on an individual or
collective basis.
The assessments are not intended to be formulaic given the circumstances requiring the application of Board
discretion will typically be different or unique, however a Board decision making framework is in place to guide
the Board in applying discretion.
Material risk
The consideration of material risk outcomes is a key process that forms part of our broader Accountability and
outcomes process
Consequence Framework (A&CF) (Section 6), and is a comprehensive bottom-up process designed to ensure
that all relevant events are surfaced and considered appropriately. Key steps include:
• Risk, conduct and audit events are reported in ANZ’s Compliance & Operational Risk System.
• Divisional Accountability Groups review serious risk, conduct and audit events, and provide
recommendations regarding accountability and consequences, where appropriate.
• Enterprise Accountability Group (EAG) reviews recommendations of the Divisional Accountability Groups and
make final determination (with some exceptions where local Board approval is required or for material risk
takers and other non-administrative direct reports to the CEO, where Board approval is required).
• People & Culture Committee reviews the most serious risk, conduct and audit events (as part of independent
report from CRO) and determines impacts at the Group, Division and individual level for the CEO and ExCo.
LTVR is awarded around the start of the financial year in late November for Disclosed Executives and
December for the CEO (subject to shareholder approval).
1. Excluding former Acting GE T&C.
Satisfying vesting
On vesting, the Board may determine to settle the relevant restricted rights and/or performance rights with
a cash equivalent payment, rather than with shares.
1. Excluding former Acting GE T&C.
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Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
79
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9. Other remuneration information
9.1 LTVR Remuneration detail
9.2 2024 Statutory remuneration –
CEO and Disclosed Executives
9.3 Equity holdings
9.4 Loans
9.5 Other transactions
9.1 LTVR Remuneration detail1
The award of restricted rights ensures that LTVR provides material weight to non-financial measures (as required under APRA’s
Prudential Standard CPS 511 Remuneration), as well as supporting long-term alignment with shareholders.
Having a risk-based focus reflects the intent of the Prudential Standard CPS 511 Remuneration in ensuring remuneration arrangements
appropriately incentivise individuals to prudently manage risks. The performance conditions are designed to ensure there is focus on
both material risk events and building a strong risk culture over the longer term.
The following table details design features common to both LTVR restricted rights and performance rights.
Below details the LTVR approach that applied to the 2024 LTVR award granted in November/December 2023.
LTVR element
Detail
Description
Restricted rights and performance rights provide a right to acquire one ordinary ANZ share at nil cost –
as long as applicable time and performance conditions are met. Their future value may range from zero to
an indeterminate value. The value depends on performance against the applicable performance condition
and on the share price at the time of exercise.
Performance period
Both restricted rights and performance rights have a four-year performance period commencing from
1 October and ending four years later on 30 September (e.g., 1 October 2023 to 30 September 2027 for
the 2024 grant), noting that LTVR is awarded at the start of the financial year (rather than the end).
A four-year performance period provides sufficient time for longer term performance to be reflected.
Deferral periods
The deferral period is the sum of the four-year performance period and the applicable holding period.
The holding period commences the day after the end of the four-year performance period (e.g., 1 October
2027 in the case of the 2024 LTVR award), and finishes on the 4th, 5th or 6th anniversary of grants.
Exercise period
Rights can only be exercised at the end of the relevant deferral period (4, 5 or 6 years) when the rights vest
and become exercisable.
rights and performance rights.
There is a two-year exercise period which commences at the end of the relevant deferral period for restricted
Expensing
ANZ engages PricewaterhouseCoopers to independently determine the fair value of restricted rights and
performance rights, which is only used for expensing for accounting purposes. They consider factors including:
the market performance conditions, share price volatility, life of the instrument, dividend yield, and share price
at grant date.
Dividends
A dividend equivalent payment (DEP) is paid in cash at the end of the relevant deferral period, but is only made
to the extent that all or part of the underlying rights meet the relevant performance condition and vest to the
individual. Dividend equivalent payments accrue over the full deferral period for restricted rights, and only
during the holding period for performance rights.
Allocation basis
The value the Board uses to determine the number of restricted rights and performance rights to be allocated
to the CEO and Disclosed Executives is the face value of ANZGHL shares traded on the ASX in the five trading
days leading up to and including 1 October (beginning of the financial year and LTVR performance period).
9.1.1 2024 LTVR restricted rights further details – CEO and Disclosed Executives1
LTVR element
Performance condition detail
Restricted rights
pre grant and pre
vest assessments
Pre grant assessment purpose: Determines whether any reduction should be made to restricted rights award
value and is primarily based on outcomes in the prior financial year.
Pre vest assessment purpose: Determines whether the restricted rights amount awarded should vest in full
and is based on outcomes over the four-year performance period.
The pre grant and pre vest assessments also take into consideration any adjustments already applied for
the same event/outcomes in either the current or prior years (i.e., adjustments to STVR and LTVR, malus
and clawback), to ensure the overall impact is fair and proportionate to the severity of the outcome. Therefore,
given other remuneration adjustments are likely to be considered first, and as the award of restricted rights is
future focused, it is anticipated that restricted rights will be allocated at full value in most years – unless the
outcome of the following three assessment steps determines otherwise.
Step 1
Assess Prudential soundness
Step 2
Assess risk measures
Step 3
Apply Board discretion
• Nil award if ANZ does not
meet capital ratio and
liquidity prudential
minimums.
• Consideration of any Material
• Board to determine whether any
Risk Outcomes from executive
actions or inactions which are
expected to/or have resulted in
significant impacts.
• Consideration of any significant
adverse change in APRA’s
Active Supervision level.
• Consideration of Risk Culture
(additional measure for pre vest)
that examines whether or not
ANZ has maintained (or made
progress towards) a sound risk
culture, considering both
executive actions or inactions.
reduction should be made to LTVR
restricted rights outcome based on
consideration of a range of factors,
including:
– the outcomes from steps 1 and 2;
– the impact, if any, of the issue/s
on ANZ’s reputation/standing in
the market;
– whether the issue was specific to
ANZ, the banking industry or the
broader market;
– any impacts already applied (e.g.,
regarding downward adjustment
mechanisms, pre grant
assessment impact to LTVR
restricted rights);
– whether any impact should be
made on an individual or
collective basis.
The assessments are not intended to be formulaic given the circumstances requiring the application of Board
discretion will typically be different or unique, however a Board decision making framework is in place to guide
the Board in applying discretion.
Material risk
outcomes process
The consideration of material risk outcomes is a key process that forms part of our broader Accountability and
Consequence Framework (A&CF) (Section 6), and is a comprehensive bottom-up process designed to ensure
that all relevant events are surfaced and considered appropriately. Key steps include:
• Risk, conduct and audit events are reported in ANZ’s Compliance & Operational Risk System.
• Divisional Accountability Groups review serious risk, conduct and audit events, and provide
recommendations regarding accountability and consequences, where appropriate.
• Enterprise Accountability Group (EAG) reviews recommendations of the Divisional Accountability Groups and
make final determination (with some exceptions where local Board approval is required or for material risk
takers and other non-administrative direct reports to the CEO, where Board approval is required).
• People & Culture Committee reviews the most serious risk, conduct and audit events (as part of independent
report from CRO) and determines impacts at the Group, Division and individual level for the CEO and ExCo.
LTVR is awarded around the start of the financial year in late November for Disclosed Executives and
December for the CEO (subject to shareholder approval).
1. Excluding former Acting GE T&C.
Satisfying vesting
On vesting, the Board may determine to settle the relevant restricted rights and/or performance rights with
a cash equivalent payment, rather than with shares.
1. Excluding former Acting GE T&C.
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ANZ 2024 Annual Report
Remuneration report
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9.1.2 2024 LTVR performance rights further details – CEO and Disclosed Executives excluding the CRO1
LTVR element
Performance condition detail
LTVR element
Performance condition detail
Performance rights
hurdles
The performance rights have TSR performance hurdles reflecting the importance of focusing on achieving
longer term strategic objectives and aligning executives’ and shareholders’ interests. There are two TSR
performance hurdles for the 2024 grants of performance rights:
Absolute TSR hurdle
The absolute CAGR TSR hurdle is an internal hurdle focused on ANZ achieving or exceeding a threshold level
for performance
of growth that is set by the Board at the start of the performance period. The Board reviews and approves the
rights
absolute CAGR TSR targets for each performance rights award. When determining the targets, the Board
references ANZ’s assessed Cost of Capital (CoC).
Relative TSR hurdle
for performance
rights
• 75% will be measured against a relative TSR hurdle.
• 25% will be measured against an absolute TSR hurdle.
TSR represents the change in value of a share plus the value of reinvested dividends paid. We regard it as the
most appropriate long-term measure – it focuses on the delivery of shareholder value and is a well understood
and tested mechanism to measure performance. The combination of relative and absolute TSR hurdles
provides balance to the plan by:
• Relative: rewarding executives for performance that exceeds that of comparator companies; and
• Absolute: ensuring there is a continued focus on providing positive growth – even when the market
is declining.
The two hurdles measure separate aspects of performance:
• the relative TSR hurdle measures our TSR compared to that of the Select Financial Services (SFS) comparator
group, made up of core local and global competitors. This comparator group is chosen to broadly reflect the
geographies and business segments in which ANZ competes for revenue; and
• the absolute Compound Annual Growth Rate (CAGR) TSR hurdle provides executives with a more direct line
of sight to the level of shareholder return to be achieved. It also provides a tighter correlation between the
executives’ rewards and the shareholders’ financial outcomes.
We will measure ANZ’s TSR against each hurdle at the end of the four-year performance period to determine
whether any performance rights become exercisable. We measure relative and absolute TSR hurdles
independently from the other – for example one may vest fully or partially but the other may not vest.
The relative TSR hurdle is an external hurdle that measures our TSR against that of the SFS comparator group
over four years.
As previously disclosed in the 2023 Remuneration Report, in July 2023 for LTVR awards of performance rights
from financial year 2024 onwards, the Board approved for DBS Bank Limited to be removed from the
comparator group (noting that this change does not apply to prior awards currently on foot). This change
reflects the need to better balance the weighting of international peers in our comparator group to more
appropriately reflect the change in capital allocated to Asia compared to when international comparators were
originally included in 2015 (as part of the super regional strategy at that time).
In July 2023, the Board approved the removal of Suncorp Group Limited from the comparator group, post the
Suncorp Bank acquisition. This change applies to both prior awards currently on foot and future LTVR awards
of performance rights (i.e., from financial year 2025).
When considering an appropriate cohort of peers for benchmarking TSR performance, the Board take into
consideration organisations with a similar scope of activities, common geographical focus, broadly comparable
risk compliance and regulatory profiles, and relative stability and transparency across market cycles. The SFS
comparator group for the 2024 LTVR performance rights is made up of: Bank of Queensland Limited; Bendigo
and Adelaide Bank Limited; Commonwealth Bank of Australia Limited; Macquarie Group Limited; National
Australia Bank Limited; Standard Chartered PLC; and Westpac Banking Corporation.
If the TSR of the company compared to the TSR of
the constituents of the comparator group:
The percentage of performance rights which will
vest is:
Does not reach the 50th percentile
0%
Reaches or exceeds the 50th percentile
50%, plus 2% for every one percentile increase
above the 50th percentile
Reaches or exceeds the 75th percentile
100%
1. Excluding former Acting GE T&C.
As previously disclosed in the 2023 Remuneration Report, in October 2023 the Board approved an update
to ANZ’s absolute CAGR TSR model for LTVR awards of performance rights from financial year 2024 onwards,
to reflect a dynamic (rather than static) target for CoC (noting that this change does not apply to prior awards
currently on foot). The TSR hurdle is now based on the time weighted CoC over the four-year performance
period. Therefore, the CAGR TSR target will be adjusted on a time weighted basis unless the Board applies
discretion not to adjust.
Any CoC changes approved by the Board throughout the performance period are prospective only (i.e., reflect
current market factors) and will form part of the dynamic CAGR TSR target calculation. This approach further
strengthens executive and shareholder alignment as the target is more responsive to future changes in both
the interest rate cycle and ANZ’s risk profile.
The level of performance required for each level of vesting, and the percentage of performance rights that
vest at each level of performance, is based on the time weighted CoC over the four-year performance period.
The Board will review and approve any changes to the CoC on a quarterly basis throughout the performance
period, based on the output from the Capital Asset Pricing Model (CAPM) methodology (which takes into
consideration the risk-free bond rate, the market risk premium and the beta – i.e., the volatility of ANZ’s
historical share price relative to the market). The Board will also approve the level of vesting (if any) at the
end of the performance period based on the time weighted CoC.
The Board retains discretion to adjust the absolute CAGR TSR hurdle in exceptional circumstances to ensure
that executives are neither advantaged nor disadvantaged by matters outside management’s control that
materially affect achievement of the absolute CAGR TSR performance condition.
If the absolute CAGR TSR of the company:
The percentage of performance rights which will
Does not reach the threshold1
Reaches the threshold
vest is:
0%
50%
Exceeds the threshold but does not reach the full
Progressive pro-rata vesting between 50% and
vesting level (i.e., 150% of threshold)
100% (on a straight line basis)
Reaches or exceeds 150% of threshold
100%
Calculating TSR
When calculating performance against TSR, we:
performance
• reduce the impact of share price volatility – by using an averaging calculation over a 90-trading day period
for start and end values;
• ensure an independent measurement – by engaging the services of an external organisation, to calculate
ANZ’s performance against both the absolute and relative TSR hurdles; and
• test the performance against the relevant hurdle once only at the end of the four-year performance period
– the rights lapse if the performance hurdle is not met – there is no retesting.
1. Based on the CoC at the start of the performance period, the CAGR TSR threshold was 9.75% and the full vesting level was based on a CAGR TSR of 14.63%; however this may be
subject to change based on the time weighted CoC over the performance period unless the Board exercises discretion to set it otherwise.
ANZ 2024 Annual Report 80
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
81
81
9.1.2 2024 LTVR performance rights further details – CEO and Disclosed Executives excluding the CRO1
LTVR element
Performance condition detail
LTVR element
Performance condition detail
Performance rights
The performance rights have TSR performance hurdles reflecting the importance of focusing on achieving
hurdles
longer term strategic objectives and aligning executives’ and shareholders’ interests. There are two TSR
Absolute TSR hurdle
for performance
rights
The absolute CAGR TSR hurdle is an internal hurdle focused on ANZ achieving or exceeding a threshold level
of growth that is set by the Board at the start of the performance period. The Board reviews and approves the
absolute CAGR TSR targets for each performance rights award. When determining the targets, the Board
references ANZ’s assessed Cost of Capital (CoC).
As previously disclosed in the 2023 Remuneration Report, in October 2023 the Board approved an update
to ANZ’s absolute CAGR TSR model for LTVR awards of performance rights from financial year 2024 onwards,
to reflect a dynamic (rather than static) target for CoC (noting that this change does not apply to prior awards
currently on foot). The TSR hurdle is now based on the time weighted CoC over the four-year performance
period. Therefore, the CAGR TSR target will be adjusted on a time weighted basis unless the Board applies
discretion not to adjust.
Any CoC changes approved by the Board throughout the performance period are prospective only (i.e., reflect
current market factors) and will form part of the dynamic CAGR TSR target calculation. This approach further
strengthens executive and shareholder alignment as the target is more responsive to future changes in both
the interest rate cycle and ANZ’s risk profile.
The level of performance required for each level of vesting, and the percentage of performance rights that
vest at each level of performance, is based on the time weighted CoC over the four-year performance period.
The Board will review and approve any changes to the CoC on a quarterly basis throughout the performance
period, based on the output from the Capital Asset Pricing Model (CAPM) methodology (which takes into
consideration the risk-free bond rate, the market risk premium and the beta – i.e., the volatility of ANZ’s
historical share price relative to the market). The Board will also approve the level of vesting (if any) at the
end of the performance period based on the time weighted CoC.
The Board retains discretion to adjust the absolute CAGR TSR hurdle in exceptional circumstances to ensure
that executives are neither advantaged nor disadvantaged by matters outside management’s control that
materially affect achievement of the absolute CAGR TSR performance condition.
If the absolute CAGR TSR of the company:
The percentage of performance rights which will
vest is:
Does not reach the threshold1
Reaches the threshold
0%
50%
Exceeds the threshold but does not reach the full
vesting level (i.e., 150% of threshold)
Progressive pro-rata vesting between 50% and
100% (on a straight line basis)
Reaches or exceeds 150% of threshold
100%
When calculating performance against TSR, we:
• reduce the impact of share price volatility – by using an averaging calculation over a 90-trading day period
for start and end values;
• ensure an independent measurement – by engaging the services of an external organisation, to calculate
ANZ’s performance against both the absolute and relative TSR hurdles; and
• test the performance against the relevant hurdle once only at the end of the four-year performance period
– the rights lapse if the performance hurdle is not met – there is no retesting.
Calculating TSR
performance
1. Based on the CoC at the start of the performance period, the CAGR TSR threshold was 9.75% and the full vesting level was based on a CAGR TSR of 14.63%; however this may be
subject to change based on the time weighted CoC over the performance period unless the Board exercises discretion to set it otherwise.
Relative TSR hurdle
The relative TSR hurdle is an external hurdle that measures our TSR against that of the SFS comparator group
for performance
over four years.
rights
performance hurdles for the 2024 grants of performance rights:
• 75% will be measured against a relative TSR hurdle.
• 25% will be measured against an absolute TSR hurdle.
TSR represents the change in value of a share plus the value of reinvested dividends paid. We regard it as the
most appropriate long-term measure – it focuses on the delivery of shareholder value and is a well understood
and tested mechanism to measure performance. The combination of relative and absolute TSR hurdles
provides balance to the plan by:
• Relative: rewarding executives for performance that exceeds that of comparator companies; and
• Absolute: ensuring there is a continued focus on providing positive growth – even when the market
is declining.
The two hurdles measure separate aspects of performance:
• the relative TSR hurdle measures our TSR compared to that of the Select Financial Services (SFS) comparator
group, made up of core local and global competitors. This comparator group is chosen to broadly reflect the
geographies and business segments in which ANZ competes for revenue; and
• the absolute Compound Annual Growth Rate (CAGR) TSR hurdle provides executives with a more direct line
of sight to the level of shareholder return to be achieved. It also provides a tighter correlation between the
executives’ rewards and the shareholders’ financial outcomes.
We will measure ANZ’s TSR against each hurdle at the end of the four-year performance period to determine
whether any performance rights become exercisable. We measure relative and absolute TSR hurdles
independently from the other – for example one may vest fully or partially but the other may not vest.
As previously disclosed in the 2023 Remuneration Report, in July 2023 for LTVR awards of performance rights
from financial year 2024 onwards, the Board approved for DBS Bank Limited to be removed from the
comparator group (noting that this change does not apply to prior awards currently on foot). This change
reflects the need to better balance the weighting of international peers in our comparator group to more
appropriately reflect the change in capital allocated to Asia compared to when international comparators were
originally included in 2015 (as part of the super regional strategy at that time).
In July 2023, the Board approved the removal of Suncorp Group Limited from the comparator group, post the
Suncorp Bank acquisition. This change applies to both prior awards currently on foot and future LTVR awards
of performance rights (i.e., from financial year 2025).
When considering an appropriate cohort of peers for benchmarking TSR performance, the Board take into
consideration organisations with a similar scope of activities, common geographical focus, broadly comparable
risk compliance and regulatory profiles, and relative stability and transparency across market cycles. The SFS
comparator group for the 2024 LTVR performance rights is made up of: Bank of Queensland Limited; Bendigo
and Adelaide Bank Limited; Commonwealth Bank of Australia Limited; Macquarie Group Limited; National
Australia Bank Limited; Standard Chartered PLC; and Westpac Banking Corporation.
If the TSR of the company compared to the TSR of
The percentage of performance rights which will
the constituents of the comparator group:
Does not reach the 50th percentile
vest is:
0%
Reaches or exceeds the 50th percentile
50%, plus 2% for every one percentile increase
above the 50th percentile
Reaches or exceeds the 75th percentile
100%
1. Excluding former Acting GE T&C.
82
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ANZ 2024 Annual Report
Remuneration report
83
9.2 2024 Statutory remuneration – CEO and Disclosed Executives
The following table outlines the statutory remuneration disclosed in accordance with Australian Accounting Standards. While it shows
the FR awarded (cash and superannuation contributions) and also the cash component of the 2024 variable remuneration award, it
does not show the actual variable remuneration awarded or received in 2024 (Sections 5.1.2, 5.2.1, 5.3 and 5.4), but instead shows
the amortised accounting value for this financial year of deferred remuneration (including prior year awards).
2024 Statutory remuneration – CEO and Disclosed Executives
Short–term employee benefits
Short–term employee benefits
Post–employment
Post–employment
Financial
Financial
year
year
Cash salary1
Cash salary1
$
$
Non monetary
Non monetary
benefits2
benefits2
$
$
Total cash
Total cash
incentive3
incentive3
$
$
Other cash4
Other cash4
$
$
Super
Super
contributions5
contributions5
$
$
Deferred
Deferred
Deferred
Deferred
Restricted
Restricted
Performance
Performance
the year6
the year6
shares
shares
share rights
share rights
$
$
$
$
rights
rights
$
$
rights
rights
$
$
Deferred
Deferred
shares
shares
Termination
Termination
Total
Total
benefits
benefits
remuneration
remuneration
$
$
$
$
CEO and Current Disclosed Executives
CEO and Current Disclosed Executives
S Elliott
S Elliott
M Carnegie9
M Carnegie9
E Clements10
E Clements10
K Corbally9
K Corbally9
F Faruqui9
F Faruqui9
G Florian9
G Florian9
C Morgan4,9,10
C Morgan4,9,10
A Strong9,10
A Strong9,10
A Watson5,8,9,11
A Watson5,8,9,11
M Whelan9
M Whelan9
Former Disclosed Executives
Former Disclosed Executives
R Howell10
R Howell10
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2,471,968
2,471,968
2,474,181
2,474,181
1,271,468
1,271,468
1,224,181
1,224,181
755,468
755,468
1,271,968
1,271,968
1,224,181
1,224,181
1,246,968
1,246,968
1,224,181
1,224,181
1,234,468
1,234,468
1,216,181
1,216,181
1,106,468
1,106,468
608,220
608,220
821,968
821,968
670,504
670,504
1,043,345
1,043,345
1,062,823
1,062,823
1,471,968
1,471,968
1,434,181
1,434,181
7,477
7,477
224,942
224,942
10,394
10,394
15,676
15,676
30,510
30,510
77,341
77,341
13,042
13,042
10,394
10,394
10,176
10,176
15,990
15,990
11,423
11,423
21,358
21,358
23,179
23,179
33,024
33,024
15,707
15,707
-
-
-
-
10,870
10,870
21,431
21,431
10,394
10,394
10,176
10,176
650,000
650,000
1,160,000
1,160,000
432,500
432,500
550,000
550,000
235,200
235,200
312,000
312,000
532,500
532,500
442,500
442,500
600,000
600,000
432,500
432,500
497,500
497,500
325,000
325,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
250,000
407,000
407,000
290,000
290,000
315,100
315,100
398,830
398,830
472,570
472,570
297,500
297,500
730,000
730,000
–
–
–
–
–
–
180,000
180,000
-
-
-
-
-
-
-
-
-
-
-
-
–
–
–
–
28,032
28,032
25,819
25,819
28,532
28,532
26,319
26,319
28,532
28,532
28,032
28,032
25,819
25,819
28,032
28,032
25,819
25,819
28,032
28,032
25,819
25,819
28,532
28,532
18,780
18,780
28,032
28,032
19,496
19,496
64,667
64,667
60,557
60,557
28,032
28,032
25,819
25,819
6,850
6,850
6,850
6,850
1. Cash salary includes any adjustments required to reflect the use of ANZ’s Lifestyle Leave Policy for the period in the KMP role. 2. Non monetary benefits generally consist of
company-funded benefits (and the associated Fringe Benefits Tax) such as car parking, taxation services and costs met by the Company in relation to relocation/accommodation.
3. The total cash incentive relates to the cash component of STVR only. The relevant amortisation of the STVR deferred components is included in share-based payments and has been
amortised over the vesting period. The total STVR was approved by the ANZBGL and ANZGHL Boards in October 2024, and in addition for A Watson by the ANZ NZ Board in October
2024. 100% of the cash component of the STVR awarded for the 2023 and 2024 years vested to the executive in the applicable financial year. 4. Other cash and other equity
allocations (C Morgan) relate to the employment arrangements of deferred variable remuneration forfeited and bonus opportunity forgone as a result of joining ANZ. 5. For Australian
based executives, the 2023 and 2024 superannuation contributions reflect the Superannuation Guarantee Contribution based on the Maximum Contribution Base. A Watson
participates in KiwiSaver where ANZ provides an employer superannuation contribution matching member contributions up to 4% of total gross pay. KiwiSaver employer superannuation
contributions are also contributed on top of cash STVR at the time of payment. 6. For Australian based executives, long service leave accrued takes into consideration the impact of
changes to the Superannuation Guarantee percentage. Year-on-year fluctuations in long service leave accrued relate to the impact of historical fixed remuneration increases on the
accrual as calculated at the end of each financial year.
Long–term
Long–term
employee benefits
employee benefits
Long service leave
Long service leave
accrued during
accrued during
Share–based payments7
Share–based payments7
Total amortisation value of
Total amortisation value of
Variable
Variable
remuneration
remuneration
Other equity
Other equity
allocations4,8
allocations4,8
470,353
470,353
1,050,043
1,050,043
212,024
212,024
1,202,190
1,202,190
278,624
278,624
318,478
318,478
132,871
132,871
298,501
298,501
74,331
74,331
41,931
41,931
504,806
504,806
184,609
184,609
412,784
412,784
568,319
568,319
265,999
265,999
196,849
196,849
-
-
-
-
11,970
11,970
56,608
56,608
276,254
276,254
339,842
339,842
132,871
132,871
364,031
364,031
34,899
34,899
983,953
983,953
35,112
35,112
1,061,506
1,061,506
24,194
24,194
22,858
22,858
62,803
62,803
28,812
28,812
27,518
27,518
19,593
19,593
19,332
19,332
19,520
19,520
30,978
30,978
17,191
17,191
5,367
5,367
33,855
33,855
18,550
18,550
7,560
7,560
6,612
6,612
31,775
31,775
36,172
36,172
537,168
537,168
548,990
548,990
258,379
258,379
587,723
587,723
600,306
600,306
519,518
519,518
531,235
531,235
248,970
248,970
67,909
67,909
382,072
382,072
354,547
354,547
494,722
494,722
528,328
528,328
589,980
589,980
700,447
700,447
193,884
193,884
109,398
109,398
238,340
238,340
798
798
29,899
29,899
262,636
262,636
314,818
314,818
122,240
122,240
270,977
270,977
1,414
1,414
173,812
173,812
73,347
73,347
94,524
94,524
38,600
38,600
244,918
244,918
294,280
294,280
323,689
323,689
378,985
378,985
155,192
155,192
393,646
393,646
117,866
117,866
222,922
222,922
46
46
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
–
–
–
–
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
–
–
–
–
5,699,642
5,699,642
6,186,508
6,186,508
2,921,474
2,921,474
2,881,061
2,881,061
1,469,686
1,469,686
2,753,405
2,753,405
2,851,361
2,851,361
2,968,872
2,968,872
3,034,571
3,034,571
2,832,850
2,832,850
2,718,109
2,718,109
2,300,807
2,300,807
1,405,094
1,405,094
1,824,263
1,824,263
1,490,144
1,490,144
2,559,192
2,559,192
2,493,155
2,493,155
3,132,323
3,132,323
3,485,633
3,485,633
17,395
17,395
483,651
483,651
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
–
–
–
–
237
237
9,321
9,321
2,831
2,831
62,538
62,538
–
–
–
–
–
–
–
–
7. As required by AASB 2 Share-based payments, the amortisation value includes a proportion of the fair value (taking into account market-related vesting conditions) of all equity that
had not yet fully vested as at the commencement of the financial year. The fair value is determined at grant date and is allocated on a straight-line basis over the relevant vesting period.
The amount included as remuneration neither relates to, nor indicates, the benefit (if any) that the executive may ultimately realise if the equity becomes exercisable. No terms of
share-based payments have been altered or modified during the financial year. There were no cash settled share-based payments or any other form of share-based payment
compensation during the financial year for the CEO or Disclosed Executives. 8. Other equity allocations (A Watson) relate to shares received in relation to the historical Employee Share
Offer which provided a grant of ANZ shares in each financial year to eligible employees subject to Board approval. 9. 2024 fixed remuneration reflects increases applied from 1 October
2023 to maintain or improve market positioning (M Carnegie, K Corbally, F Faruqui, G Florian, C Morgan, A Strong, A Watson, M Whelan). 10. Remuneration based on time as a
Disclosed Executive in either 2023 (C Morgan, A Strong, R Howell) or 2024 (E Clements, R Howell). 11. Paid in NZD and converted to AUD.
ANZ 2024 Annual Report
9.2 2024 Statutory remuneration – CEO and Disclosed Executives
The following table outlines the statutory remuneration disclosed in accordance with Australian Accounting Standards. While it shows
the FR awarded (cash and superannuation contributions) and also the cash component of the 2024 variable remuneration award, it
does not show the actual variable remuneration awarded or received in 2024 (Sections 5.1.2, 5.2.1, 5.3 and 5.4), but instead shows
the amortised accounting value for this financial year of deferred remuneration (including prior year awards).
2024 Statutory remuneration – CEO and Disclosed Executives
Short–term employee benefits
Short–term employee benefits
Post–employment
Post–employment
Financial
Financial
Cash salary1
Cash salary1
$
$
Non monetary
Non monetary
benefits2
benefits2
$
$
Total cash
Total cash
incentive3
incentive3
$
$
Super
Super
Other cash4
Other cash4
contributions5
contributions5
$
$
$
$
CEO and Current Disclosed Executives
CEO and Current Disclosed Executives
S Elliott
S Elliott
M Carnegie9
M Carnegie9
E Clements10
E Clements10
K Corbally9
K Corbally9
F Faruqui9
F Faruqui9
G Florian9
G Florian9
C Morgan4,9,10
C Morgan4,9,10
A Strong9,10
A Strong9,10
A Watson5,8,9,11
A Watson5,8,9,11
M Whelan9
M Whelan9
Former Disclosed Executives
Former Disclosed Executives
R Howell10
R Howell10
year
year
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2024
2024
2023
2023
2,471,968
2,471,968
2,474,181
2,474,181
1,271,468
1,271,468
1,224,181
1,224,181
755,468
755,468
1,271,968
1,271,968
1,224,181
1,224,181
1,246,968
1,246,968
1,224,181
1,224,181
1,234,468
1,234,468
1,216,181
1,216,181
1,106,468
1,106,468
608,220
608,220
821,968
821,968
670,504
670,504
1,043,345
1,043,345
1,062,823
1,062,823
1,471,968
1,471,968
1,434,181
1,434,181
7,477
7,477
224,942
224,942
10,394
10,394
15,676
15,676
30,510
30,510
77,341
77,341
13,042
13,042
10,394
10,394
10,176
10,176
15,990
15,990
11,423
11,423
21,358
21,358
23,179
23,179
33,024
33,024
15,707
15,707
10,870
10,870
21,431
21,431
10,394
10,394
10,176
10,176
-
-
-
-
–
–
–
–
650,000
650,000
1,160,000
1,160,000
432,500
432,500
550,000
550,000
235,200
235,200
312,000
312,000
532,500
532,500
442,500
442,500
600,000
600,000
432,500
432,500
497,500
497,500
325,000
325,000
290,000
290,000
315,100
315,100
398,830
398,830
472,570
472,570
297,500
297,500
730,000
730,000
–
–
180,000
180,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
–
–
–
–
28,032
28,032
25,819
25,819
28,532
28,532
26,319
26,319
28,532
28,532
28,032
28,032
25,819
25,819
28,032
28,032
25,819
25,819
28,032
28,032
25,819
25,819
28,532
28,532
18,780
18,780
28,032
28,032
19,496
19,496
64,667
64,667
60,557
60,557
28,032
28,032
25,819
25,819
6,850
6,850
6,850
6,850
250,000
250,000
407,000
407,000
82
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
83
83
Long–term
Long–term
employee benefits
employee benefits
Long service leave
Long service leave
accrued during
accrued during
the year6
the year6
$
$
Share–based payments7
Share–based payments7
Total amortisation value of
Total amortisation value of
Variable
Variable
remuneration
remuneration
Other equity
Other equity
allocations4,8
allocations4,8
Deferred
Deferred
shares
shares
$
$
Deferred
Deferred
share rights
share rights
$
$
Restricted
Restricted
rights
rights
$
$
Performance
Performance
rights
rights
$
$
Deferred
Deferred
shares
shares
$
$
Termination
Termination
benefits
benefits
$
$
Total
Total
remuneration
remuneration
$
$
34,899
34,899
983,953
983,953
35,112
35,112
1,061,506
1,061,506
24,194
24,194
22,858
22,858
62,803
62,803
28,812
28,812
27,518
27,518
19,593
19,593
19,332
19,332
19,520
19,520
30,978
30,978
17,191
17,191
5,367
5,367
33,855
33,855
18,550
18,550
7,560
7,560
6,612
6,612
31,775
31,775
36,172
36,172
537,168
537,168
548,990
548,990
258,379
258,379
587,723
587,723
600,306
600,306
519,518
519,518
531,235
531,235
248,970
248,970
67,909
67,909
382,072
382,072
354,547
354,547
494,722
494,722
528,328
528,328
589,980
589,980
700,447
700,447
237
237
9,321
9,321
2,831
2,831
62,538
62,538
-
-
-
-
-
-
-
-
-
-
470,353
470,353
1,050,043
1,050,043
212,024
212,024
1,202,190
1,202,190
278,624
278,624
318,478
318,478
132,871
132,871
298,501
298,501
74,331
74,331
41,931
41,931
504,806
504,806
184,609
184,609
412,784
412,784
568,319
568,319
265,999
265,999
196,849
196,849
-
-
-
-
11,970
11,970
56,608
56,608
276,254
276,254
339,842
339,842
132,871
132,871
364,031
364,031
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46
46
-
-
-
-
–
–
–
–
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
–
–
–
–
5,699,642
5,699,642
6,186,508
6,186,508
2,921,474
2,921,474
2,881,061
2,881,061
1,469,686
1,469,686
2,753,405
2,753,405
2,851,361
2,851,361
2,968,872
2,968,872
3,034,571
3,034,571
2,832,850
2,832,850
2,718,109
2,718,109
2,300,807
2,300,807
1,405,094
1,405,094
1,824,263
1,824,263
1,490,144
1,490,144
2,559,192
2,559,192
2,493,155
2,493,155
3,132,323
3,132,323
3,485,633
3,485,633
17,395
17,395
483,651
483,651
193,884
193,884
109,398
109,398
238,340
238,340
798
798
29,899
29,899
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
–
–
–
–
262,636
262,636
314,818
314,818
122,240
122,240
270,977
270,977
1,414
1,414
173,812
173,812
73,347
73,347
94,524
94,524
38,600
38,600
244,918
244,918
294,280
294,280
117,866
117,866
222,922
222,922
323,689
323,689
378,985
378,985
155,192
155,192
393,646
393,646
–
–
–
–
–
–
–
–
1. Cash salary includes any adjustments required to reflect the use of ANZ’s Lifestyle Leave Policy for the period in the KMP role. 2. Non monetary benefits generally consist of
company-funded benefits (and the associated Fringe Benefits Tax) such as car parking, taxation services and costs met by the Company in relation to relocation/accommodation.
3. The total cash incentive relates to the cash component of STVR only. The relevant amortisation of the STVR deferred components is included in share-based payments and has been
amortised over the vesting period. The total STVR was approved by the ANZBGL and ANZGHL Boards in October 2024, and in addition for A Watson by the ANZ NZ Board in October
2024. 100% of the cash component of the STVR awarded for the 2023 and 2024 years vested to the executive in the applicable financial year. 4. Other cash and other equity
allocations (C Morgan) relate to the employment arrangements of deferred variable remuneration forfeited and bonus opportunity forgone as a result of joining ANZ. 5. For Australian
based executives, the 2023 and 2024 superannuation contributions reflect the Superannuation Guarantee Contribution based on the Maximum Contribution Base. A Watson
participates in KiwiSaver where ANZ provides an employer superannuation contribution matching member contributions up to 4% of total gross pay. KiwiSaver employer superannuation
contributions are also contributed on top of cash STVR at the time of payment. 6. For Australian based executives, long service leave accrued takes into consideration the impact of
changes to the Superannuation Guarantee percentage. Year-on-year fluctuations in long service leave accrued relate to the impact of historical fixed remuneration increases on the
accrual as calculated at the end of each financial year.
7. As required by AASB 2 Share-based payments, the amortisation value includes a proportion of the fair value (taking into account market-related vesting conditions) of all equity that
had not yet fully vested as at the commencement of the financial year. The fair value is determined at grant date and is allocated on a straight-line basis over the relevant vesting period.
The amount included as remuneration neither relates to, nor indicates, the benefit (if any) that the executive may ultimately realise if the equity becomes exercisable. No terms of
share-based payments have been altered or modified during the financial year. There were no cash settled share-based payments or any other form of share-based payment
compensation during the financial year for the CEO or Disclosed Executives. 8. Other equity allocations (A Watson) relate to shares received in relation to the historical Employee Share
Offer which provided a grant of ANZ shares in each financial year to eligible employees subject to Board approval. 9. 2024 fixed remuneration reflects increases applied from 1 October
2023 to maintain or improve market positioning (M Carnegie, K Corbally, F Faruqui, G Florian, C Morgan, A Strong, A Watson, M Whelan). 10. Remuneration based on time as a
Disclosed Executive in either 2023 (C Morgan, A Strong, R Howell) or 2024 (E Clements, R Howell). 11. Paid in NZD and converted to AUD.
84
84
ANZ 2024 Annual Report
9.3 Equity holdings
For the equity granted to the CEO and Disclosed Executives in November/December 2023, all deferred shares were purchased on the
market. For deferred share rights, which vested to Disclosed Executives in November 2023, where the rights were not able to be satisfied
through the reallocation of previously forfeited shares they were satisfied through the on market purchase of shares.
9.3.1 CEO and Disclosed Executives’ equity granted, vested, exercised/sold and lapsed/forfeited
The table below sets out details of deferred shares and rights that we granted to the CEO and Disclosed Executives:
• during the 2024 year, relating to 2023 Performance and Remuneration Review outcomes; or
• in prior years and that then vested, were exercised/sold or which lapsed/were forfeited during the 2024 year.
Equity granted, vested, exercised/sold and lapsed/forfeited – CEO and Disclosed Executives
Equity
fair
value
(for
2024
grants
only)
$
Name
Type of equity
Number
granted1
Vested
Lapsed/
Forfeited
Exercised/Sold
First
date
exercisable
Grant
date
Date
of
expiry
Number %
Value2
$
Number %
$ Number %
Value2
Value2
$
Vested
and
exercis-
able
as at
30 Sep
20243
Unexer-
cisable
as at
30 Sep
20244
CEO and Current Disclosed Executives
S Elliott
Deferred shares
3,001
22-Nov-19 22-Nov-23
-
3,001 100 72,966
Deferred shares
5,420
07-Dec-20 22-Nov-23
-
5,420 100 131,781
Deferred shares
10,830
22-Nov-21 22-Nov-23
- 10,830 100 263,318
Deferred shares
20,156
01-Oct-22 22-Nov-23
- 20,156 100 490,069
Deferred shares
19,740 25.66 01-Oct-23 22-Nov-24
Deferred shares
19,739 25.66 01-Oct-23 22-Nov-25
Deferred shares
3,158 25.66 01-Oct-23 22-Nov-26
Deferred shares
3,158 25.66 01-Oct-23 22-Nov-27
Deferred shares
3,158 25.66 01-Oct-23 22-Nov-28
-
-
-
-
-
Restricted rights
21,984 20.08 21-Dec-23 21-Dec-27 21-Dec-29
Restricted rights
21,984 18.85 21-Dec-23 21-Dec-28 21-Dec-30
Restricted rights
22,651 17.70 21-Dec-23 21-Dec-29 21-Dec-31
Performance rights 126,050
17-Dec-19 17-Dec-23 17-Dec-25
Performance rights
42,016
17-Dec-19 17-Dec-23 17-Dec-25
Performance rights
16,488 12.54 21-Dec-23 21-Dec-27 21-Dec-29
Performance rights
5,496
7.35 21-Dec-23 21-Dec-27 21-Dec-29
Performance rights
16,488 11.33 21-Dec-23 21-Dec-28 21-Dec-30
Performance rights
5,496
7.26 21-Dec-23 21-Dec-28 21-Dec-30
Performance rights
16,988 10.08 21-Dec-23 21-Dec-29 21-Dec-31
Performance rights
5,662
7.15 21-Dec-23 21-Dec-29 21-Dec-31
M Carnegie Deferred shares
36
20-Aug-16 01-Jun-17
Deferred shares
3,584
20-Aug-16 20-Aug-17
Deferred shares
1,327
20-Aug-16 21-Nov-17
Deferred shares
1,327
20-Aug-16 27-Feb-18
Deferred shares
1,327
20-Aug-16 01-Jun-18
Deferred shares
1,182
22-Nov-16 22-Nov-19
Deferred shares
1,182
22-Nov-16 22-Nov-20
Deferred shares
4,785
22-Nov-17 22-Nov-18
Deferred shares
4,785
22-Nov-17 22-Nov-19
Deferred shares
4,785
22-Nov-17 22-Nov-20
Deferred shares
4,785
22-Nov-17 22-Nov-21
Deferred shares
5,205
22-Nov-18 22-Nov-19
Deferred shares
5,202
22-Nov-18 22-Nov-20
Deferred shares
5,202
22-Nov-18 22-Nov-21
Deferred shares
5,202
22-Nov-18 22-Nov-22
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- (126,050) 100 (3,223,073)
-
(42,016) 100 (1,074,341)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,001) 100
72,966
-
(5,420) 100 131,781
- (10,830) 100 263,318
- (20,156) 100 490,069
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(36) 100
1,038
-
(3,584) 100 103,364
-
(1,327) 100
38,271
-
(1,327) 100
38,271
-
(1,327) 100
38,271
-
(1,182) 100
34,089
-
(1,182) 100
34,089
-
(4,785) 100 138,001
-
(4,785) 100 138,001
-
(4,785) 100 138,001
-
(4,785) 100 142,975
-
(5,205) 100 156,052
-
(5,202) 100 155,962
-
(5,202) 100 155,962
-
(5,202) 100 155,962
-
-
-
-
-
-
-
- 19,740
- 19,739
- 3,158
- 3,158
- 3,158
- 21,984
- 21,984
- 22,651
-
-
-
-
- 16,488
- 5,496
- 16,488
- 5,496
- 16,988
- 5,662
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Name
Type of equity
date
exercisable
expiry
Number %
$
Number %
$ Number %
$
20243
20244
Grant
First
date
Date
of
Value2
Value2
Value2
30 Sep
30 Sep
Vested
Exercised/Sold
Lapsed/
Forfeited
Vested
and
exercis-
Unexer-
able
cisable
as at
as at
Equity
fair
value
(for
2024
grants
only)
$
Number
granted1
CEO and Current Disclosed Executives
M Carnegie Deferred shares
7,924
22-Nov-19 22-Nov-20
Deferred shares
5,942
22-Nov-19 22-Nov-21
Deferred shares
3,961
22-Nov-19 22-Nov-22
Deferred shares
1,980
22-Nov-19 22-Nov-23
-
1,980 100 48,141
-
-
-
-
1,980
Deferred shares
7,099
07-Dec-20 22-Nov-21
Deferred shares
5,323
07-Dec-20 22-Nov-22
Deferred shares
3,549
07-Dec-20 22-Nov-23
-
3,549 100 86,290
Deferred shares
6,165
22-Nov-21 22-Nov-23
-
6,165 100 149,895
Deferred shares
9,970
01-Oct-22 22-Nov-23
-
9,970 100 242,409
Deferred shares
10,857 25.66 01-Oct-23 22-Nov-24
Deferred shares
10,856 25.66 01-Oct-23 22-Nov-25
Restricted rights
17,321 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
17,321 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
30,612
22-Nov-19 22-Nov-23 22-Nov-25
-
(30,612) 100
(744,294)
Performance rights
10,204
22-Nov-19 22-Nov-23 22-Nov-25
-
(10,204) 100
(248,098)
Performance rights
12,991 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
4,330
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
12,991 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
4,330
7.26 22-Nov-23 22-Nov-28 22-Nov-30
E Clements5 Deferred shares
2,751
07-Dec-20 22-Nov-23
-
2,751 100 66,887
Deferred shares
2,285
22-Nov-21 22-Nov-23
-
2,285 100 55,557
Deferred shares
3,033
22-Nov-22 22-Nov-23
-
3,033 100 73,744
2,751
-
2,285
-
3,033
Deferred shares
4,102 24.31 22-Nov-23 22-Nov-24
Deferred shares
4,102 24.31 22-Nov-23 22-Nov-25
Deferred shares
4,102 24.31 22-Nov-23 22-Nov-26
Restricted rights
10,659 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
10,659 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
7,994 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
2,664
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
7,994 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
2,664
7.26 22-Nov-23 22-Nov-28 22-Nov-30
Deferred shares
10,511 25.66 01-Oct-23 22-Nov-24
Deferred shares
10,511 25.66 01-Oct-23 22-Nov-25
Deferred share
rights
Restricted rights
25,661 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
25,661 17.77 22-Nov-23 22-Nov-28 22-Nov-30
K Corbally
Deferred shares
3,829
22-Nov-19 22-Nov-23
-
3,829 100 93,098
-
(3,829) 100
93,225
Deferred shares
3,720
07-Dec-20 22-Nov-23
-
3,720 100 90,447
-
(3,720) 100
90,572
Deferred shares
6,647
22-Nov-21 22-Nov-23
-
6,647 100 161,614
-
(6,647) 100 161,836
Deferred shares
9,590
01-Oct-22 22-Nov-23
-
9,590 100 233,169
-
(9,590) 100 233,490
19,727
22-Nov-19 22-Nov-23 22-Nov-23 19,727 100 479,638
- (19,727) 100 479,638
-
-
F Faruqui Deferred shares
1,797
21-Nov-14 21-Nov-17
Deferred shares
8,523
22-Nov-21 22-Nov-22
-
(1,797) 100
50,778
-
(8,523) 100 240,834
Deferred shares
7,862
22-Nov-21 22-Nov-23
-
7,862 100 191,155
-
(7,862) 100 216,332
Deferred shares
12,950
01-Oct-22 22-Nov-23
- 12,950 100 314,864
- (12,950) 100 365,927
Deferred shares
11,844 25.66 01-Oct-23 22-Nov-24
-
-
-
-
-
-
-
-
- 11,844
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Remuneration report
85
-
(7,924) 100 234,926
-
(5,942) 100 176,131
-
(3,961) 100 117,411
-
-
-
(7,099) 100 210,426
-
-
(5,207)
98 154,344
116
-
3,549
-
6,165
9,970
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 10,857
- 10,856
- 17,321
- 17,321
-
-
- 12,991
- 4,330
- 12,991
- 4,330
- 4,102
- 4,102
- 4,102
- 10,659
- 10,659
- 7,994
- 2,664
- 7,994
- 2,664
- 10,511
- 10,511
- 25,661
- 25,661
-
-
-
-
-
-
-
-
ANZ 2024 Annual Report
84
ANZ 2024 Annual Report
9.3 Equity holdings
For the equity granted to the CEO and Disclosed Executives in November/December 2023, all deferred shares were purchased on the
market. For deferred share rights, which vested to Disclosed Executives in November 2023, where the rights were not able to be satisfied
through the reallocation of previously forfeited shares they were satisfied through the on market purchase of shares.
9.3.1 CEO and Disclosed Executives’ equity granted, vested, exercised/sold and lapsed/forfeited
The table below sets out details of deferred shares and rights that we granted to the CEO and Disclosed Executives:
• during the 2024 year, relating to 2023 Performance and Remuneration Review outcomes; or
• in prior years and that then vested, were exercised/sold or which lapsed/were forfeited during the 2024 year.
Equity granted, vested, exercised/sold and lapsed/forfeited – CEO and Disclosed Executives
Equity
fair
value
(for
2024
grants
only)
$
Number
granted1
Vested
Exercised/Sold
Lapsed/
Forfeited
Vested
and
exercis-
Unexer-
able
cisable
as at
as at
CEO and Current Disclosed Executives
S Elliott
Deferred shares
3,001
22-Nov-19 22-Nov-23
-
3,001 100 72,966
-
(3,001) 100
72,966
Deferred shares
5,420
07-Dec-20 22-Nov-23
-
5,420 100 131,781
-
(5,420) 100 131,781
Deferred shares
10,830
22-Nov-21 22-Nov-23
- 10,830 100 263,318
- (10,830) 100 263,318
Deferred shares
20,156
01-Oct-22 22-Nov-23
- 20,156 100 490,069
- (20,156) 100 490,069
Performance rights 126,050
17-Dec-19 17-Dec-23 17-Dec-25
- (126,050) 100 (3,223,073)
Performance rights
42,016
17-Dec-19 17-Dec-23 17-Dec-25
-
(42,016) 100 (1,074,341)
Deferred shares
19,740 25.66 01-Oct-23 22-Nov-24
Deferred shares
19,739 25.66 01-Oct-23 22-Nov-25
Deferred shares
3,158 25.66 01-Oct-23 22-Nov-26
Deferred shares
3,158 25.66 01-Oct-23 22-Nov-27
Deferred shares
3,158 25.66 01-Oct-23 22-Nov-28
Restricted rights
21,984 20.08 21-Dec-23 21-Dec-27 21-Dec-29
Restricted rights
21,984 18.85 21-Dec-23 21-Dec-28 21-Dec-30
Restricted rights
22,651 17.70 21-Dec-23 21-Dec-29 21-Dec-31
Performance rights
16,488 12.54 21-Dec-23 21-Dec-27 21-Dec-29
Performance rights
5,496
7.35 21-Dec-23 21-Dec-27 21-Dec-29
Performance rights
16,488 11.33 21-Dec-23 21-Dec-28 21-Dec-30
Performance rights
5,496
7.26 21-Dec-23 21-Dec-28 21-Dec-30
Performance rights
16,988 10.08 21-Dec-23 21-Dec-29 21-Dec-31
Performance rights
5,662
7.15 21-Dec-23 21-Dec-29 21-Dec-31
M Carnegie Deferred shares
36
20-Aug-16 01-Jun-17
Deferred shares
3,584
20-Aug-16 20-Aug-17
Deferred shares
1,327
20-Aug-16 21-Nov-17
Deferred shares
1,327
20-Aug-16 27-Feb-18
Deferred shares
1,327
20-Aug-16 01-Jun-18
Deferred shares
1,182
22-Nov-16 22-Nov-19
Deferred shares
1,182
22-Nov-16 22-Nov-20
Deferred shares
4,785
22-Nov-17 22-Nov-18
Deferred shares
4,785
22-Nov-17 22-Nov-19
Deferred shares
4,785
22-Nov-17 22-Nov-20
Deferred shares
4,785
22-Nov-17 22-Nov-21
Deferred shares
5,205
22-Nov-18 22-Nov-19
Deferred shares
5,202
22-Nov-18 22-Nov-20
Deferred shares
5,202
22-Nov-18 22-Nov-21
Deferred shares
5,202
22-Nov-18 22-Nov-22
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 19,740
- 19,739
- 3,158
- 3,158
- 3,158
- 21,984
- 21,984
- 22,651
-
-
-
-
- 16,488
- 5,496
- 16,488
- 5,496
- 16,988
- 5,662
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(36) 100
1,038
-
(3,584) 100 103,364
-
(1,327) 100
38,271
-
(1,327) 100
38,271
-
(1,327) 100
38,271
-
(1,182) 100
34,089
-
(1,182) 100
34,089
-
(4,785) 100 138,001
-
(4,785) 100 138,001
-
(4,785) 100 138,001
-
(4,785) 100 142,975
-
(5,205) 100 156,052
-
(5,202) 100 155,962
-
(5,202) 100 155,962
-
(5,202) 100 155,962
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
85
85
Equity
fair
value
(for
2024
grants
only)
$
Name
Type of equity
Number
granted1
Vested
Lapsed/
Forfeited
Exercised/Sold
First
date
exercisable
Grant
date
Date
of
expiry
Number %
Value2
$
Number %
$ Number %
Value2
Value2
$
Vested
and
exercis-
able
as at
30 Sep
20243
Unexer-
cisable
as at
30 Sep
20244
Name
Type of equity
date
exercisable
expiry
Number %
$
Number %
$ Number %
$
20243
20244
Deferred shares
9,970
01-Oct-22 22-Nov-23
-
9,970 100 242,409
Grant
First
date
Date
of
Value2
Value2
Value2
30 Sep
30 Sep
Deferred shares
6,165
22-Nov-21 22-Nov-23
-
6,165 100 149,895
CEO and Current Disclosed Executives
M Carnegie Deferred shares
7,924
22-Nov-19 22-Nov-20
Deferred shares
5,942
22-Nov-19 22-Nov-21
Deferred shares
3,961
22-Nov-19 22-Nov-22
-
-
-
-
-
-
-
-
-
-
-
-
Deferred shares
1,980
22-Nov-19 22-Nov-23
-
1,980 100 48,141
Deferred shares
7,099
07-Dec-20 22-Nov-21
Deferred shares
5,323
07-Dec-20 22-Nov-22
-
-
-
-
-
-
-
-
Deferred shares
3,549
07-Dec-20 22-Nov-23
-
3,549 100 86,290
-
(30,612) 100
(744,294)
-
(10,204) 100
(248,098)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,751
-
2,285
-
3,033
-
-
-
-
(7,924) 100 234,926
-
(5,942) 100 176,131
-
(3,961) 100 117,411
-
-
-
-
-
-
1,980
-
(7,099) 100 210,426
-
-
(5,207)
98 154,344
116
-
3,549
-
6,165
9,970
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 10,857
- 10,856
- 17,321
- 17,321
-
-
-
-
- 12,991
- 4,330
- 12,991
- 4,330
- 4,102
- 4,102
- 4,102
- 10,659
- 10,659
- 7,994
- 2,664
- 7,994
- 2,664
-
-
-
-
-
-
-
-
-
(3,829) 100
93,225
-
(3,720) 100
90,572
-
(6,647) 100 161,836
-
(9,590) 100 233,490
-
-
-
-
-
-
-
-
- 10,511
- 10,511
- (19,727) 100 479,638
-
-
-
-
-
-
-
-
-
-
- 25,661
- 25,661
-
(1,797) 100
50,778
-
(8,523) 100 240,834
-
(7,862) 100 216,332
- (12,950) 100 365,927
-
-
-
-
-
-
-
-
-
-
-
-
- 11,844
Deferred shares
10,857 25.66 01-Oct-23 22-Nov-24
Deferred shares
10,856 25.66 01-Oct-23 22-Nov-25
-
-
Restricted rights
17,321 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
17,321 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
30,612
22-Nov-19 22-Nov-23 22-Nov-25
Performance rights
10,204
22-Nov-19 22-Nov-23 22-Nov-25
Performance rights
12,991 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
4,330
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
12,991 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
4,330
7.26 22-Nov-23 22-Nov-28 22-Nov-30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
E Clements5 Deferred shares
2,751
07-Dec-20 22-Nov-23
-
2,751 100 66,887
Deferred shares
2,285
22-Nov-21 22-Nov-23
-
2,285 100 55,557
Deferred shares
3,033
22-Nov-22 22-Nov-23
-
3,033 100 73,744
Deferred shares
4,102 24.31 22-Nov-23 22-Nov-24
Deferred shares
4,102 24.31 22-Nov-23 22-Nov-25
Deferred shares
4,102 24.31 22-Nov-23 22-Nov-26
-
-
-
Restricted rights
10,659 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
10,659 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
7,994 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
2,664
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
7,994 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
2,664
7.26 22-Nov-23 22-Nov-28 22-Nov-30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
K Corbally
Deferred shares
3,829
22-Nov-19 22-Nov-23
-
3,829 100 93,098
Deferred shares
3,720
07-Dec-20 22-Nov-23
-
3,720 100 90,447
Deferred shares
6,647
22-Nov-21 22-Nov-23
-
6,647 100 161,614
Deferred shares
9,590
01-Oct-22 22-Nov-23
-
9,590 100 233,169
Deferred shares
10,511 25.66 01-Oct-23 22-Nov-24
Deferred shares
10,511 25.66 01-Oct-23 22-Nov-25
-
-
-
-
-
-
-
-
Deferred share
rights
19,727
22-Nov-19 22-Nov-23 22-Nov-23 19,727 100 479,638
Restricted rights
25,661 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
25,661 17.77 22-Nov-23 22-Nov-28 22-Nov-30
F Faruqui Deferred shares
1,797
21-Nov-14 21-Nov-17
Deferred shares
8,523
22-Nov-21 22-Nov-22
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Deferred shares
7,862
22-Nov-21 22-Nov-23
-
7,862 100 191,155
Deferred shares
12,950
01-Oct-22 22-Nov-23
- 12,950 100 314,864
Deferred shares
11,844 25.66 01-Oct-23 22-Nov-24
-
-
-
-
86
86
ANZ 2024 Annual Report
Equity
fair
value
(for
2024
grants
only)
$
Name
Type of equity
Number
granted1
Vested
Lapsed/
Forfeited
Exercised/Sold
First
date
exercisable
Grant
date
Date
of
expiry
Number %
Value2
$
Number %
$ Number %
Value2
Value2
$
Vested
and
exercis-
able
as at
30 Sep
20243
Unexer-
cisable
as at
30 Sep
20244
Name
Type of equity
date
exercisable
expiry
Number %
$
Number %
$ Number %
$
20243
20244
Grant
First
date
Date
of
Value2
Value2
Value2
30 Sep
30 Sep
Vested
Exercised/Sold
Lapsed/
Forfeited
Vested
and
exercis-
Unexer-
able
cisable
as at
as at
Equity
fair
value
(for
2024
grants
only)
$
Number
granted1
Remuneration report
87
-
-
-
-
- 11,843
A Strong
Performance rights
8,494 11.94 22-Nov-23 22-Nov-27 22-Nov-29
CEO and Current Disclosed Executives
-
(51,839) 100 (1,260,403)
-
(17,279) 100
(420,118)
-
(17,346) 100
(421,747)
(5,782) 100
(140,582)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CEO and Current Disclosed Executives
F Faruqui Deferred shares
11,843 25.66 01-Oct-23 22-Nov-25
-
-
-
-
Deferred share
rights
Deferred share
rights
4,257
22-Nov-19 22-Nov-23 22-Nov-23 4,257 100 103,504
3,619
07-Dec-20 22-Nov-23 22-Nov-23 3,619 100 87,992
Restricted rights
16,988 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
16,988 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
51,839
22-Nov-19 22-Nov-23 22-Nov-25
Performance rights
17,279
22-Nov-19 22-Nov-23 22-Nov-25
Performance rights
12,741 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
4,247
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
12,741 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
4,247
7.26 22-Nov-23 22-Nov-28 22-Nov-30
G Florian Deferred shares
2,775
22-Nov-18 22-Nov-22
Deferred shares
4,491
22-Nov-19 22-Nov-20
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Deferred shares
1,122
22-Nov-19 22-Nov-23
-
1,122 100
27,280
Deferred shares
3,219
07-Dec-20 22-Nov-23
-
3,219 100 78,266
Deferred shares
7,326
22-Nov-21 22-Nov-23
-
7,326 100 178,123
Deferred shares
9,590
01-Oct-22 22-Nov-23
-
9,590 100 233,169
Deferred shares
9,820 25.66 01-Oct-23 22-Nov-24
Deferred shares
9,820 25.66 01-Oct-23 22-Nov-25
-
-
Restricted rights
16,821 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
16,821 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
17,346
22-Nov-19 22-Nov-23 22-Nov-25
Performance rights
5,782
22-Nov-19 22-Nov-23 22-Nov-25
Performance rights
12,616 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
4,205
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
12,616 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
4,205
7.26 22-Nov-23 22-Nov-28 22-Nov-30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
C Morgan Deferred shares
3,025
20-Aug-23 20-Aug-24
-
3,025 100
90,420
Deferred shares
5,082
20-Aug-23 20-Aug-24
-
5,082 100 151,906
Deferred shares
4,935 25.66 01-Oct-23 22-Nov-24
Deferred shares
4,934 25.66 01-Oct-23 22-Nov-25
-
-
Restricted rights
15,122 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
15,122 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
11,342 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
3,780
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
11,342 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
3,780
7.26 22-Nov-23 22-Nov-28 22-Nov-30
A Strong
Deferred shares
2,590
07-Dec-20 22-Nov-22
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Deferred shares
3,229
07-Dec-20 22-Nov-23
-
3,229 100 78,509
Deferred shares
4,189
22-Nov-21 22-Nov-22
-
-
-
-
Deferred shares
4,187
22-Nov-21 22-Nov-23
-
4,187 100 101,802
Deferred shares
6,133
01-Oct-22 22-Nov-23
-
6,133 100 149,117
Deferred shares
6,761 25.66 01-Oct-23 22-Nov-24
Deferred shares
6,760 25.66 01-Oct-23 22-Nov-25
-
-
Restricted rights
11,325 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
11,325 17.77 22-Nov-23 22-Nov-28 22-Nov-30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,257) 100 103,504
-
(3,619) 100
87,992
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,775) 100
71,726
-
(4,491) 100 119,651
-
(1,122) 100
29,893
-
(3,219) 100
85,762
-
(7,326) 100 202,453
-
(9,590) 100 283,731
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 16,988
- 16,988
-
-
-
-
- 12,741
- 4,247
- 12,741
- 4,247
-
-
-
-
-
-
-
-
-
-
-
-
- 9,820
- 9,820
- 16,821
- 16,821
-
-
-
-
- 12,616
- 4,205
- 12,616
- 4,205
-
4,935
-
4,934
- 15,122
- 15,122
- 11,342
- 3,780
- 11,342
- 3,780
-
-
-
-
-
-
-
-
-
-
-
3,025
-
5,082
-
-
-
(2,590) 100
63,059
-
(3,229) 100
78,617
-
(4,189) 100 101,990
-
(4,187) 100 101,942
-
(6,133) 100 149,321
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 6,761
- 6,760
- 11,325
- 11,325
Deferred shares
4,541
22-Nov-19 22-Nov-23
-
4,541 100 110,409
-
(4,541) 100 128,315
Deferred shares
2,902
07-Dec-20 22-Nov-23
-
2,902 100 70,559
-
(2,902) 100
82,815
Deferred shares
7,442
22-Nov-21 22-Nov-23
-
7,442 100 180,943
-
(5,357)
72 158,151
2,085
Deferred shares
9,162
01-Oct-22 22-Nov-23
-
9,162 100 222,763
-
9,162
Performance rights
2,831
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
8,494 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
2,831
7.26 22-Nov-23 22-Nov-28 22-Nov-30
A Watson Deferred shares
03-Dec-18 03-Dec-21
Deferred shares
02-Dec-19 02-Dec-22
29
32
Deferred shares
9,328 25.66 01-Oct-23 22-Nov-24
Deferred shares
9,328 25.66 01-Oct-23 22-Nov-25
Restricted rights
15,050 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
15,050 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
11,287 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
3,762
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
11,287 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
3,762
7.26 22-Nov-23 22-Nov-28 22-Nov-30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(29) 100
856
(32) 100
945
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 8,494
- 2,831
- 8,494
- 2,831
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 9,328
- 9,328
- 15,050
- 15,050
- 11,287
- 3,762
- 11,287
- 3,762
- 14,410
- 14,409
- 19,986
- 19,986
- 14,989
- 4,996
- 14,989
- 4,996
M Whelan Deferred shares
3,499
22-Nov-19 22-Nov-23
-
3,499 100 85,074
-
(3,499) 100
85,085
Deferred shares
3,148
07-Dec-20 22-Nov-23
-
3,148 100 76,540
-
(3,148) 100
76,550
Deferred shares
8,774
22-Nov-21 22-Nov-23
-
8,774 100 213,329
-
(8,774) 100 213,357
Deferred shares
11,595
01-Oct-22 22-Nov-23
- 11,595 100 281,919
- (11,595) 100 281,956
Deferred shares
14,410 25.66 01-Oct-23 22-Nov-24
Deferred shares
14,409 25.66 01-Oct-23 22-Nov-25
Restricted rights
19,986 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
19,986 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
54,081
22-Nov-19 22-Nov-23 22-Nov-25
-
(54,081) 100 (1,314,915)
Performance rights
18,027
22-Nov-19 22-Nov-23 22-Nov-25
-
(18,027) 100
(438,305)
Performance rights
14,989 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
4,996
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
14,989 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
4,996
7.26 22-Nov-23 22-Nov-28 22-Nov-30
Former Disclosed Executives
R Howell6
1. For the purpose of the five highest paid executive disclosures, Executives are defined as Disclosed Executives or other members of the ExCo. For the 2024 financial year the five highest
paid executives include five Disclosed Executives. Rights granted to Disclosed Executives as remuneration in 2024 are included in the table. No rights have been granted to the CEO,
Disclosed Executives or the five highest paid executives since the end of 2024 up to the Directors’ Report sign-off date. 2. The point in time value of deferred shares/deferred share rights
and/or restricted rights/performance rights is based on the one day VWAP of the Company’s shares traded on the ASX on the date of vesting, lapsing/forfeiture or exercising/sale/transfer
out of trust, multiplied by the number of deferred shares/deferred share rights and/or restricted rights/performance rights. The exercise price for all deferred share rights/restricted rights/
performance rights is $0.00. No terms or conditions of grant of the share-based payment transactions have been altered or modified during the reporting period. 3. The number vested
and exercisable is the number of shares, options and rights that remain vested at the end of the reporting period. No shares, options and rights were vested and unexercisable.
4. Performance rights granted in prior years (by grant date) that remained unexerciseable at 30 September 2024 or date ceased as a KMP include (the below):
Performance rights granted to S Elliott in 2024 were approved by shareholders at
the 2023 AGM in accordance with ASX Listing Rule 10.14.
5. Equity transactions disclosed from date commenced as a Disclosed Executive.
6. Equity transactions disclosed up to date ceased as a KMP. There were no
-
disclosable transactions for R Howell.
S Elliott
M Carnegie
E Clements
K Corbally
F Faruqui
G Florian
C Morgan
A Strong
A Watson
M Whelan
R Howell
Nov-20
159,308
38,378
-
-
-
-
-
34,045
34,820
31,389
34,045
Nov-21
126,353
42,345
-
-
-
-
-
54,006
50,324
51,117
60,266
Nov-22
73,143
36,572
-
-
-
36,572
33,644
18,421
21,944
32,442
42,716
Nov-23
66,618
34,642
21,316
33,976
33,642
30,244
22,650
30,098
39,970
-
ANZ 2024 Annual Report 86
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
87
87
Equity
fair
value
(for
2024
grants
only)
$
Number
granted1
Vested
Exercised/Sold
Lapsed/
Forfeited
Vested
and
exercis-
Unexer-
able
cisable
as at
as at
Name
Type of equity
date
exercisable
expiry
Number %
$
Number %
$ Number %
$
20243
20244
Name
Type of equity
Grant
First
date
Date
of
Value2
Value2
Value2
30 Sep
30 Sep
Equity
fair
value
(for
2024
grants
only)
$
Number
granted1
Vested
Lapsed/
Forfeited
Exercised/Sold
First
date
exercisable
Grant
date
Date
of
expiry
Number %
Value2
$
Number %
$ Number %
Value2
Value2
$
Vested
and
exercis-
able
as at
30 Sep
20243
Unexer-
cisable
as at
30 Sep
20244
CEO and Current Disclosed Executives
CEO and Current Disclosed Executives
F Faruqui Deferred shares
11,843 25.66 01-Oct-23 22-Nov-25
-
-
-
-
-
-
-
-
- 11,843
A Strong
Performance rights
8,494 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
2,831
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
8,494 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
2,831
7.26 22-Nov-23 22-Nov-28 22-Nov-30
A Watson Deferred shares
Deferred shares
29
32
03-Dec-18 03-Dec-21
02-Dec-19 02-Dec-22
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Deferred shares
4,541
22-Nov-19 22-Nov-23
-
4,541 100 110,409
Deferred shares
2,902
07-Dec-20 22-Nov-23
-
2,902 100 70,559
Deferred shares
7,442
22-Nov-21 22-Nov-23
-
7,442 100 180,943
Deferred shares
9,162
01-Oct-22 22-Nov-23
-
9,162 100 222,763
Deferred shares
9,328 25.66 01-Oct-23 22-Nov-24
Deferred shares
9,328 25.66 01-Oct-23 22-Nov-25
-
-
Restricted rights
15,050 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
15,050 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
11,287 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
3,762
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
11,287 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
3,762
7.26 22-Nov-23 22-Nov-28 22-Nov-30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
M Whelan Deferred shares
3,499
22-Nov-19 22-Nov-23
-
3,499 100 85,074
Deferred shares
3,148
07-Dec-20 22-Nov-23
-
3,148 100 76,540
Deferred shares
8,774
22-Nov-21 22-Nov-23
-
8,774 100 213,329
Deferred shares
11,595
01-Oct-22 22-Nov-23
- 11,595 100 281,919
Deferred share
rights
rights
Deferred share
4,257
22-Nov-19 22-Nov-23 22-Nov-23 4,257 100 103,504
-
(4,257) 100 103,504
3,619
07-Dec-20 22-Nov-23 22-Nov-23 3,619 100 87,992
-
(3,619) 100
87,992
Restricted rights
16,988 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
16,988 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
51,839
22-Nov-19 22-Nov-23 22-Nov-25
-
(51,839) 100 (1,260,403)
Performance rights
17,279
22-Nov-19 22-Nov-23 22-Nov-25
-
(17,279) 100
(420,118)
Performance rights
12,741 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
4,247
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
12,741 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
4,247
7.26 22-Nov-23 22-Nov-28 22-Nov-30
G Florian Deferred shares
2,775
22-Nov-18 22-Nov-22
Deferred shares
4,491
22-Nov-19 22-Nov-20
Deferred shares
1,122
22-Nov-19 22-Nov-23
-
1,122 100
27,280
-
(1,122) 100
29,893
Deferred shares
3,219
07-Dec-20 22-Nov-23
-
3,219 100 78,266
-
(3,219) 100
85,762
Deferred shares
7,326
22-Nov-21 22-Nov-23
-
7,326 100 178,123
-
(7,326) 100 202,453
Deferred shares
9,590
01-Oct-22 22-Nov-23
-
9,590 100 233,169
-
(9,590) 100 283,731
-
(2,775) 100
71,726
-
(4,491) 100 119,651
Performance rights
17,346
22-Nov-19 22-Nov-23 22-Nov-25
-
(17,346) 100
(421,747)
Performance rights
5,782
22-Nov-19 22-Nov-23 22-Nov-25
(5,782) 100
(140,582)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 16,988
- 16,988
- 12,741
- 4,247
- 12,741
- 4,247
- 9,820
- 9,820
- 16,821
- 16,821
- 12,616
- 4,205
- 12,616
- 4,205
-
4,935
-
4,934
- 15,122
- 15,122
- 11,342
- 3,780
- 11,342
- 3,780
- 6,761
- 6,760
- 11,325
- 11,325
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Deferred shares
9,820 25.66 01-Oct-23 22-Nov-24
Deferred shares
9,820 25.66 01-Oct-23 22-Nov-25
Restricted rights
16,821 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
16,821 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
12,616 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
4,205
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
12,616 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
4,205
7.26 22-Nov-23 22-Nov-28 22-Nov-30
Deferred shares
4,935 25.66 01-Oct-23 22-Nov-24
Deferred shares
4,934 25.66 01-Oct-23 22-Nov-25
Restricted rights
15,122 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
15,122 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
11,342 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
3,780
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
11,342 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
3,780
7.26 22-Nov-23 22-Nov-28 22-Nov-30
A Strong
Deferred shares
2,590
07-Dec-20 22-Nov-22
-
-
(2,590) 100
63,059
Deferred shares
3,229
07-Dec-20 22-Nov-23
-
3,229 100 78,509
-
(3,229) 100
78,617
Deferred shares
4,189
22-Nov-21 22-Nov-22
-
-
-
-
(4,189) 100 101,990
Deferred shares
4,187
22-Nov-21 22-Nov-23
-
4,187 100 101,802
-
(4,187) 100 101,942
Deferred shares
6,133
01-Oct-22 22-Nov-23
-
6,133 100 149,117
-
(6,133) 100 149,321
Deferred shares
6,761 25.66 01-Oct-23 22-Nov-24
Deferred shares
6,760 25.66 01-Oct-23 22-Nov-25
Restricted rights
11,325 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
11,325 17.77 22-Nov-23 22-Nov-28 22-Nov-30
C Morgan Deferred shares
3,025
20-Aug-23 20-Aug-24
-
3,025 100
90,420
Deferred shares
5,082
20-Aug-23 20-Aug-24
-
5,082 100 151,906
-
3,025
-
5,082
-
-
Deferred shares
14,410 25.66 01-Oct-23 22-Nov-24
Deferred shares
14,409 25.66 01-Oct-23 22-Nov-25
-
-
Restricted rights
19,986 18.92 22-Nov-23 22-Nov-27 22-Nov-29
Restricted rights
19,986 17.77 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
54,081
22-Nov-19 22-Nov-23 22-Nov-25
Performance rights
18,027
22-Nov-19 22-Nov-23 22-Nov-25
Performance rights
14,989 11.94 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
4,996
7.37 22-Nov-23 22-Nov-27 22-Nov-29
Performance rights
14,989 10.74 22-Nov-23 22-Nov-28 22-Nov-30
Performance rights
4,996
7.26 22-Nov-23 22-Nov-28 22-Nov-30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Former Disclosed Executives
R Howell6
-
-
-
-
1. For the purpose of the five highest paid executive disclosures, Executives are defined as Disclosed Executives or other members of the ExCo. For the 2024 financial year the five highest
paid executives include five Disclosed Executives. Rights granted to Disclosed Executives as remuneration in 2024 are included in the table. No rights have been granted to the CEO,
Disclosed Executives or the five highest paid executives since the end of 2024 up to the Directors’ Report sign-off date. 2. The point in time value of deferred shares/deferred share rights
and/or restricted rights/performance rights is based on the one day VWAP of the Company’s shares traded on the ASX on the date of vesting, lapsing/forfeiture or exercising/sale/transfer
out of trust, multiplied by the number of deferred shares/deferred share rights and/or restricted rights/performance rights. The exercise price for all deferred share rights/restricted rights/
performance rights is $0.00. No terms or conditions of grant of the share-based payment transactions have been altered or modified during the reporting period. 3. The number vested
and exercisable is the number of shares, options and rights that remain vested at the end of the reporting period. No shares, options and rights were vested and unexercisable.
4. Performance rights granted in prior years (by grant date) that remained unexerciseable at 30 September 2024 or date ceased as a KMP include (the below):
S Elliott
M Carnegie
E Clements
K Corbally
F Faruqui
G Florian
C Morgan
A Strong
A Watson
M Whelan
R Howell
Nov-20
159,308
38,378
-
-
34,045
34,820
-
-
31,389
34,045
-
Nov-21
126,353
42,345
-
-
54,006
50,324
-
-
51,117
60,266
-
Nov-22
73,143
36,572
-
-
36,572
33,644
18,421
21,944
32,442
42,716
-
Nov-23
66,618
34,642
21,316
-
33,976
33,642
30,244
22,650
30,098
39,970
-
Performance rights granted to S Elliott in 2024 were approved by shareholders at
the 2023 AGM in accordance with ASX Listing Rule 10.14.
5. Equity transactions disclosed from date commenced as a Disclosed Executive.
6. Equity transactions disclosed up to date ceased as a KMP. There were no
disclosable transactions for R Howell.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 8,494
- 2,831
- 8,494
- 2,831
(29) 100
856
(32) 100
945
-
(4,541) 100 128,315
-
(2,902) 100
82,815
-
-
-
-
-
(5,357)
72 158,151
2,085
-
9,162
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,499) 100
85,085
-
(3,148) 100
76,550
-
(8,774) 100 213,357
- (11,595) 100 281,956
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 9,328
- 9,328
- 15,050
- 15,050
- 11,287
- 3,762
- 11,287
- 3,762
-
-
-
-
-
-
-
-
- 14,410
- 14,409
- 19,986
- 19,986
-
-
-
-
- 14,989
- 4,996
- 14,989
- 4,996
-
(54,081) 100 (1,314,915)
-
(18,027) 100
(438,305)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
88
88
ANZ 2024 Annual Report
Remuneration report
89
9.3.2 NED, CEO and Disclosed Executives’ equity holdings
The table below sets out details of equity held directly, indirectly or beneficially by each NED, the CEO and each Disclosed Executive,
including their related parties.
Equity holdings – NED, CEO and Disclosed Executives
Name
Type of equity
Current Non-Executive Directors
P O'Sullivan
R Gibb5
J Halton
H Kramer
C O'Reilly
J Smith
S St John5
Ordinary shares
Capital notes 7
Ordinary shares
Capital notes 7
Capital notes 8
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Former Non-Executive Directors
I Atlas6
J Key6
J Macfarlane6
Ordinary shares
Ordinary shares
Ordinary shares
Capital notes 6
Capital notes 7
Capital notes 8
CEO and Current Disclosed Executives
S Elliott
M Carnegie
E Clements5
K Corbally
F Faruqui
G Florian
C Morgan7
A Strong
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Capital notes 6
Deferred share rights
Restricted rights
Deferred shares
Ordinary shares
Deferred share rights
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
A Watson
Deferred shares
Employee Share Offer
Ordinary shares
Restricted rights
Performance rights
Opening balance at
1 Oct 2023
Granted during
the year as
remuneration1
Received during the
year on exercise of
options or rights
Resulting from any
other changes
during the year2
Closing
balance at
30 Sep 20243,4
4,350
9,250
-
-
-
10,058
5,828
6,400
2,779
2,000
15,318
10,500
19,042
2,140
2,000
5,000
73,103
495,640
73,145
526,870
132,773
41,580
36,572
158,111
17,775
993
-
-
45,958
4,345
1,400
62,675
54,182
51,942
120,517
9,780
36,572
193,741
47,048
55,612
33,646
141,916
13,189
25
18,422
18,421
36,779
4,235
21,944
21,944
42,101
61
50,974
32,442
114,948
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48,953
-
66,619
66,618
21,713
-
34,642
34,642
12,306
-
21,318
21,316
21,022
-
-
-
51,322
23,687
-
-
33,976
33,976
19,640
-
33,642
33,642
9,869
-
30,244
30,244
13,521
-
22,650
22,650
18,656
-
-
30,100
30,098
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19,727
-
(19,727)
-
-
6,397
(7,876)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,032
194
196
-
-
-
-
1,000
-
-
-
-
-
-
(39,407)
44,648
-
(168,066)
(84,865)
4,298
-
(40,816)
-
1,567
-
-
(23,786)
(24,072)
-
-
-
(31,132)
3,238
-
-
(69,118)
(28,523)
(25,495)
-
(23,128)
-
1,197
-
-
(20,328)
(1,897)
-
-
(12,800)
(61)
(13,795)
-
-
4,350
9,250
1,032
194
196
10,058
5,828
6,400
2,779
3,000
15,318
10,500
19,042
2,140
2,000
5,000
82,649
540,288
139,764
425,422
69,621
45,878
71,214
151,937
30,081
2,560
21,318
21,316
43,194
-
1,400
42,948
105,504
44,497
130,152
1,904
70,548
158,599
38,165
30,117
67,288
152,430
23,058
1,222
48,666
48,665
29,972
2,338
44,594
44,594
47,957
-
37,179
62,542
145,046
M Whelan
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Former Disclosed Executives
48,958
47,196
42,716
209,135
28,819
-
39,972
39,970
R Howell6
Deferred shares
12,138
-
-
-
-
-
-
(27,016)
(41,820)
(72,108)
-
-
50,761
5,376
82,688
176,997
12,138
1. Details of options/rights granted as remuneration during 2024 are provided in the previous table. 2. Shares resulting from any other changes during the year include the net result of
any shares purchased (including under the ANZ Share Purchase Plan), forfeited, sold or acquired under the Dividend Reinvestment Plan. 3. The following shares (included in the
holdings above) were held on behalf of the NEDs, CEO and Disclosed Executives (i.e., indirect beneficially held shares) as at 30 September 2024 (or the date ceased as a KMP):
P O’Sullivan - 0, R Gibb - 1,422, J Halton - 0, H Kramer - 5,828, C O’Reilly - 0, J Smith - 0, S St John - 3,000, I Atlas - 15,318, J Key - 10,500, J Macfarlane - 28,182, S Elliott - 617,696,
M Carnegie - 69,621, E Clements - 30,081, K Corbally - 44,594, F Faruqui - 44,497, G Florian - 68,277, C Morgan - 23,058, A Strong - 29,972, A Watson - 47,957, M Whelan - 52,761,
R Howell - 12,138. 4. Zero rights were vested and exercisable, and zero options/rights were vested and unexerciseable as at 30 September 2024. 5. Commencing balance is based on
holdings as at the date of commencement as a KMP. 6. Concluding balance is based on holdings as at the date ceased as a KMP. 7. 2023 Remuneration Report incorrectly showed a
zero closing balance of ordinary shares. The 25 ordinary shares are still held.
9.4 Loans
9.4.1 Overview
When we lend to NEDs, the CEO or Disclosed Executives, we do so in the ordinary course of business and on normal commercial terms
and conditions that are no more favourable than those given to other employees or customers – this includes the term of the loan, the
security required and the interest rate. Details of the terms and conditions of lending products can be found on anz.com. No amounts
have been written off during the period, or individual assessed allowance for expected credit losses raised in respect of these balances.
Total loans to NEDs, the CEO and Disclosed Executives, including their related parties at 30 September 2024 (including those with
balances less than $100,000) was $22,200,018 (2023: $28,232,882) with interest paid of $992,976 (2023: $1,241,031) during the period.
9.4.2 NED, CEO and Disclosed Executives’ loan transactions
The table below sets out details of loans outstanding to NEDs, the CEO and Disclosed Executives including their related parties,
if – at any time during the year – the individual’s aggregate loan balance exceeded $100,000.
Loan transactions – NED, CEO and Disclosed Executives
Opening balance
Closing balance at
payable in the
Highest balance in
at 1 Oct 2023¹
30 Sep 2024
reporting period²
the reporting period
Interest paid and
Current Non–Executive Directors
CEO and Current Disclosed Executives
Names
P O’Sullivan
H Kramer
S St John
S Elliott
M Carnegie
G Florian
A Strong
M Whelan
J Macfarlane3
J Key3
Total
Former Disclosed Executives
$
657,998
3,189,935
1,160,096
2,467,062
5,602,183
2,324,157
1,715,981
1,528,458
3,583,961
5,907,690
$
675
3,532,890
1,145,916
1,968,205
3,782
2,223,982
2,406,222
1,495,365
3,579,413
5,762,167
$
23
205,664
37,112
72,173
141,566
60,887
116,714
95,089
$
664,981
3,602,471
1,165,093
2,478,583
5,620,083
2,344,193
2,868,494
1,578,999
28,137,521
22,118,617
157,598
105,883
992,709
3,896,804
6,310,584
30,530,285
1. Opening balances have been adjusted for new and leaving KMP. 2. Actual interest paid after considering offset accounts. The loan balance is shown gross, however the interest paid
takes into account the impact of offset amounts. 3. Closing balance is as at the date ceased as a KMP.
9.5 Other transactions
Other transactions with NEDs, the CEO and Disclosed Executives, and their related parties included deposits.
Other transactions – NED, CEO and Disclosed Executives
Total KMP Deposits
1. Opening balance is at 1 October 2023 or the date of commencement as a KMP if part way through the year and it has been adjusted to take into account timing variances.
2. Closing balance is at 30 September 2024 or at the date ceased as a KMP if part way through the year. 3. Interest received on deposits for 2024 was $845,972 (2023: $999,448).
Other transactions with KMP and their related parties included amounts paid to the Group in respect of investment management
service fees, brokerage, bank fees and charges. The Group has reimbursed KMP for the costs incurred for security and secretarial
services associated with the performance of their duties. These transactions are conducted on normal commercial terms and
conditions are no more favourable than those given to other employees or customers.
Opening balance at
Closing balance at
1 Oct 20231
30 Sep 20242,3
$
$
40,821,998
43,105,069
ANZ 2024 Annual Report
88
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Remuneration report
89
89
9.3.2 NED, CEO and Disclosed Executives’ equity holdings
The table below sets out details of equity held directly, indirectly or beneficially by each NED, the CEO and each Disclosed Executive,
including their related parties.
Equity holdings – NED, CEO and Disclosed Executives
Name
Type of equity
1 Oct 2023
remuneration1
options or rights
during the year2
30 Sep 20243,4
Opening balance at
the year as
year on exercise of
other changes
Granted during
Received during the
Resulting from any
Closing
balance at
Current Non-Executive Directors
Former Non-Executive Directors
CEO and Current Disclosed Executives
P O'Sullivan
R Gibb5
J Halton
H Kramer
C O'Reilly
J Smith
S St John5
I Atlas6
J Key6
J Macfarlane6
S Elliott
M Carnegie
E Clements5
K Corbally
F Faruqui
G Florian
C Morgan7
A Strong
Ordinary shares
Capital notes 7
Ordinary shares
Capital notes 7
Capital notes 8
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Capital notes 6
Capital notes 7
Capital notes 8
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Capital notes 6
Deferred share rights
Restricted rights
Deferred shares
Ordinary shares
Deferred share rights
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Employee Share Offer
Ordinary shares
Restricted rights
Performance rights
A Watson
Deferred shares
4,350
9,250
-
-
-
10,058
5,828
6,400
2,779
2,000
15,318
10,500
19,042
2,140
2,000
5,000
73,103
495,640
73,145
526,870
132,773
41,580
36,572
158,111
17,775
993
-
-
45,958
4,345
1,400
62,675
54,182
51,942
120,517
9,780
36,572
193,741
47,048
55,612
33,646
141,916
13,189
25
18,422
18,421
36,779
4,235
21,944
21,944
42,101
61
50,974
32,442
114,948
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48,953
66,619
66,618
21,713
-
34,642
34,642
12,306
-
21,318
21,316
21,022
-
-
-
-
-
51,322
23,687
33,976
33,976
19,640
-
33,642
33,642
9,869
-
30,244
30,244
13,521
-
22,650
22,650
18,656
-
-
30,100
30,098
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19,727
(19,727)
6,397
(7,876)
1,032
194
196
1,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(39,407)
44,648
(168,066)
(84,865)
4,298
(40,816)
1,567
(23,786)
(24,072)
(31,132)
3,238
(69,118)
(28,523)
(25,495)
(23,128)
1,197
(20,328)
(1,897)
(12,800)
(61)
(13,795)
4,350
9,250
1,032
194
196
10,058
5,828
6,400
2,779
3,000
15,318
10,500
19,042
2,140
2,000
5,000
82,649
540,288
139,764
425,422
69,621
45,878
71,214
151,937
30,081
2,560
21,318
21,316
43,194
-
1,400
42,948
105,504
44,497
130,152
1,904
70,548
158,599
38,165
30,117
67,288
152,430
23,058
1,222
48,666
48,665
29,972
2,338
44,594
44,594
47,957
-
37,179
62,542
145,046
M Whelan
Deferred shares
Ordinary shares
Restricted rights
Performance rights
Former Disclosed Executives
48,958
47,196
42,716
209,135
28,819
-
39,972
39,970
R Howell6
Deferred shares
12,138
-
-
-
-
-
-
(27,016)
(41,820)
-
(72,108)
50,761
5,376
82,688
176,997
-
12,138
1. Details of options/rights granted as remuneration during 2024 are provided in the previous table. 2. Shares resulting from any other changes during the year include the net result of
any shares purchased (including under the ANZ Share Purchase Plan), forfeited, sold or acquired under the Dividend Reinvestment Plan. 3. The following shares (included in the
holdings above) were held on behalf of the NEDs, CEO and Disclosed Executives (i.e., indirect beneficially held shares) as at 30 September 2024 (or the date ceased as a KMP):
P O’Sullivan - 0, R Gibb - 1,422, J Halton - 0, H Kramer - 5,828, C O’Reilly - 0, J Smith - 0, S St John - 3,000, I Atlas - 15,318, J Key - 10,500, J Macfarlane - 28,182, S Elliott - 617,696,
M Carnegie - 69,621, E Clements - 30,081, K Corbally - 44,594, F Faruqui - 44,497, G Florian - 68,277, C Morgan - 23,058, A Strong - 29,972, A Watson - 47,957, M Whelan - 52,761,
R Howell - 12,138. 4. Zero rights were vested and exercisable, and zero options/rights were vested and unexerciseable as at 30 September 2024. 5. Commencing balance is based on
holdings as at the date of commencement as a KMP. 6. Concluding balance is based on holdings as at the date ceased as a KMP. 7. 2023 Remuneration Report incorrectly showed a
zero closing balance of ordinary shares. The 25 ordinary shares are still held.
9.4 Loans
9.4.1 Overview
When we lend to NEDs, the CEO or Disclosed Executives, we do so in the ordinary course of business and on normal commercial terms
and conditions that are no more favourable than those given to other employees or customers – this includes the term of the loan, the
security required and the interest rate. Details of the terms and conditions of lending products can be found on anz.com. No amounts
have been written off during the period, or individual assessed allowance for expected credit losses raised in respect of these balances.
Total loans to NEDs, the CEO and Disclosed Executives, including their related parties at 30 September 2024 (including those with
balances less than $100,000) was $22,200,018 (2023: $28,232,882) with interest paid of $992,976 (2023: $1,241,031) during the period.
9.4.2 NED, CEO and Disclosed Executives’ loan transactions
The table below sets out details of loans outstanding to NEDs, the CEO and Disclosed Executives including their related parties,
if – at any time during the year – the individual’s aggregate loan balance exceeded $100,000.
Loan transactions – NED, CEO and Disclosed Executives
Names
Current Non–Executive Directors
P O’Sullivan
H Kramer
S St John
CEO and Current Disclosed Executives
S Elliott
M Carnegie
G Florian
A Strong
M Whelan
Former Disclosed Executives
J Key3
J Macfarlane3
Total
Opening balance
at 1 Oct 2023¹
$
Closing balance at
30 Sep 2024
$
Interest paid and
payable in the
reporting period²
$
Highest balance in
the reporting period
$
657,998
3,189,935
1,160,096
2,467,062
5,602,183
2,324,157
1,715,981
1,528,458
3,583,961
5,907,690
675
3,532,890
1,145,916
1,968,205
3,782
2,223,982
2,406,222
1,495,365
3,579,413
5,762,167
28,137,521
22,118,617
23
205,664
37,112
72,173
141,566
60,887
116,714
95,089
664,981
3,602,471
1,165,093
2,478,583
5,620,083
2,344,193
2,868,494
1,578,999
157,598
105,883
992,709
3,896,804
6,310,584
30,530,285
1. Opening balances have been adjusted for new and leaving KMP. 2. Actual interest paid after considering offset accounts. The loan balance is shown gross, however the interest paid
takes into account the impact of offset amounts. 3. Closing balance is as at the date ceased as a KMP.
9.5 Other transactions
Other transactions with NEDs, the CEO and Disclosed Executives, and their related parties included deposits.
Other transactions – NED, CEO and Disclosed Executives
Total KMP Deposits
Opening balance at
1 Oct 20231
$
Closing balance at
30 Sep 20242,3
$
40,821,998
43,105,069
1. Opening balance is at 1 October 2023 or the date of commencement as a KMP if part way through the year and it has been adjusted to take into account timing variances.
2. Closing balance is at 30 September 2024 or at the date ceased as a KMP if part way through the year. 3. Interest received on deposits for 2024 was $845,972 (2023: $999,448).
Other transactions with KMP and their related parties included amounts paid to the Group in respect of investment management
service fees, brokerage, bank fees and charges. The Group has reimbursed KMP for the costs incurred for security and secretarial
services associated with the performance of their duties. These transactions are conducted on normal commercial terms and
conditions are no more favourable than those given to other employees or customers.
Our Performance (continued)
90
90
ANZ 2024 Annual Report
Directors’ Report
Directors’ Report
The Directors’ Report for the financial
year ended 30 September 2024 has
been prepared in accordance with the
requirements of the Corporations Act
2001. The information below forms part
of this Directors’ Report:
• Principal activities on page 14;
• Operating and financial review on
pages 34 to 47;
• Dividends on page 47;
• Information on the Directors, Company
Secretaries and Directors’ meetings
on pages 18 to 25;
• Remuneration report on pages 48 to 89.
Acquisition of Suncorp Bank
On 31 July 2024, the Group acquired
100% of the shares in SBGH Limited, the
immediate holding company of Suncorp
Bank. Suncorp Bank provides banking and
related services to retail, commercial, small
and medium enterprises and agribusiness
customers in Australia. The transaction
was undertaken to accelerate the growth
of the Group’s retail and commercial
businesses while also improving the
geographic balance of its business in
Australia.
Significant changes in
state of affairs
There have been no other significant
changes in the Group’s state of affairs
other than Acquisition of Suncorp Bank,
as described above.
Events since the end of
the financial year
Other than matters outlined in the
Financial Report, there have been no
significant events from 30 September
2024 to the date of signing this report.
Participation in political
party activities
We aim to assist the democratic process
in Australia by attending and participating
in paid events hosted by the major federal
political parties. For the year ended
30 September 2024, we contributed
$115,000 to participate in political
activities hosted by the Australian Labor
Party, the Liberal Party of Australia and the
National Party of Australia. These activities
included speeches, political functions and
conferences, and policy dialogue forums.
We disclose these contributions to the
Australian Electoral Commission (AEC),
noting the AEC’s reporting year is a
different period to the Group’s financial
year.
Modern slavery reporting
The Group is subject to Australia’s Modern
Slavery Act Australian Commonwealth
Modern Slavery Act 2018 (Cth) and United
Kingdom’s Modern Slavery Act 2015.
Our Modern Slavery Statement (when
released) will set out actions taken to
identify, assess and manage modern
slavery risks in our operations and supply
chain during the 2024 financial year.
Our 2024 Modern Slavery Statement will
be available at anz.com/esgreport prior to
our Annual General Meeting.
Environmental regulation
We recognise the expectations of our
stakeholders – customers, shareholders,
staff, regulators and the community – to
operate in a way that mitigates our
environmental impact.
In Australia, we meet the requirements
of the National Greenhouse and Energy
Reporting Act 2007 (Cth), which imposes
reporting obligations where energy
production, usage or greenhouse gas
emissions trigger specified thresholds.
We do not believe that our operations
are subject to any other particular and
significant environmental regulation
under a law of the Commonwealth of
Australia or of an Australian State or
Territory. We may become subject to
environmental regulation as a result of
our lending activities in the ordinary
course of business and have developed
policies, which are reviewed on a regular
basis, to help identify and manage such
environmental matters and regulations.
Further details of our environmental
performance, including progress against
our targets and management of ESG
material issues are available in the ESG
Supplement, ESG Data and Framework
Pack, and our Climate-related Financial
Disclosures, at anz.com/annualreport.
Climate-related disclosures
The Group has current obligations in
relation to mandatory publication of
climate-related disclosures under the New
Zealand Financial Markets Conduct Act
2013 (FMCA). ANZGHL, ANZBGL, ANZ
Bank New Zealand and ANZ New Zealand
Investments Limited are Climate Reporting
Entities (CREs) under the FMCA.
For the financial year ended 30 September
2024, ANZGHL is relying on the exemption
in clause 6 of the Financial Markets
Conduct (Climate-related Disclosures for
Foreign Listed Issuers) Exemption Notice
2024.
The effect of relying on this exemption is
that ANZGHL is not required to comply
with the climate reporting obligations
(including production and lodgement of
climate statements) and the record-
keeping obligations imposed under Part
7A of the FMCA for the financial year
ended 30 September 2024. ANZGHL will
be required to produce separate climate
statements for the reporting period ending
30 September 2025 onwards.
Voluntary Climate Reports have been
prepared for the Group according to the
Task Force on Climate-related Financial
Disclosures recommendations since 2017.
The 2024 Climate-related Financial
Disclosures are available at
anz.com/esgreport.
ANZ Bank New Zealand will publish its first
mandatory climate statement for the
reporting period ended 30 September
2024, which will be available at anz.co.nz/
about-us/corporate-responsibility/
environment/ no later than 31 January
2025. ANZ Bank New Zealand published a
voluntary climate report for the financial
year ended 30 September 2023 available
at anz.co.nz/about-us/corporate-
responsibility/environment/.
ANZ New Zealand Investments Limited
has published climate statements relating
to four of its registered managed
investment schemes in 2024. These are
available at crd-app.companiesoffice.
govt.nz/dashboard/. Climate statements
relating to its fifth registered managed
investment scheme are due for lodgement
by 31 January 2025. These will be
available at crd-app.companiesoffice.
govt.nz/dashboard/.
1
ANZ 2024 Annual Report
Our Performance (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Directors’ report
91
91
Corporate Governance
Statement
We are committed to maintaining a high
standard in our governance framework.
ANZGHL confirms it has followed the ASX
Corporate Governance Council’s
Corporate Governance Principles and
Recommendations (4th edition) during the
2024 financial year. Our Corporate
Governance Statement, together with the
Appendix 4G, which relates to the
Corporate Governance Statement, can be
viewed at anz.com/corporategovernance
and has been lodged with the ASX.
External auditor
The Group’s external auditor is KPMG.
The ANZ Group appointed Peat, Marwick,
Mitchell & Co (predecessor to KPMG)
in 1969.
The Board Audit Committee conducts a
formal annual performance assessment of
the external auditor, including whether to
commence an external tender for the
audit. After considering relevant factors
including tenure, audit quality, local and
international capability and experience,
and independence, the Board Audit
Committee resolved to reappoint KPMG
for the 30 September 2025 financial year
audit. KPMG regularly rotates the Group
Lead Audit Engagement Partner and the
Engagement Quality Control Review
Partner with the most recent rotation
being for the financial years ended
30 September 2023 and 30 September
2020, respectively.
Non-audit services
Our Stakeholder Engagement Model for
Relationship with the External Auditor (the
Policy), which incorporates requirements
of the Corporations Act 2001 and industry
best practice, prevents the external auditor
from providing services that are perceived
to be in conflict with the role of the
external auditor or breach independence
requirements. This includes consulting
advice and sub- contracting of operational
activities normally undertaken by
management, and engagements where
the external auditor may ultimately be
required to express an opinion on its own
work.
Specifically, the Policy:
• limits the scope of non-audit services
that may be provided;
• requires that audit, audit-related and
permitted non-audit services be
considered in light of independence
requirements and for any potential
conflicts of interest before they are
approved by the Audit Committee, or
approved by the Chair of the Audit
Committee (or delegate) and notified to
the Audit Committee; and
• requires pre-approval before the
external auditor can commence any
engagement for the Group.
Further details about the Policy can be
found in the Corporate Governance
Statement.
The external auditor has confirmed to the
Audit Committee that it has:
• implemented procedures to ensure it
complies with independence rules in
applicable jurisdictions; and
• complied with applicable policies and
regulations in those jurisdictions
regarding the provision of non-audit
services, and the Policy.
The Audit Committee has reviewed the
non-audit services provided by the
external auditor during the 2024 financial
year, and has confirmed that the provision
of these services is consistent with the
Policy, compatible with the general
standard of independence for auditors
imposed by the Corporations Act 2001
and did not compromise the auditor
independence requirements of the
Corporations Act 2001.
This has been formally advised by the
Audit Committee to the Board of Directors.
The categories of non-audit services
supplied to the Group during the year
ended 30 September 2024 by the
external auditor,
KPMG, or by another person or firm on
KPMG’s behalf, and the amounts paid or
payable (including GST) by the Group are
as follows:
Amount paid/
payable $’000’s
Non-audit services
2024
2023
Methodology,
procedural, operational
and administrative
reviews
180
105
Total
180
105
Further details on the compensation paid
to KPMG are provided in Note 35 Auditor
Fees to the financial statements including
details of audit-related services provided
during the year of $6.79 million (2023:
$5.82 million).
For the reasons set out above, the
Directors are satisfied that the provision of
non-audit services by the external auditor
during the year ended 30 September
2024 is compatible with the general
standard of independence for external
auditors imposed by the Corporations Act
2001 and did not compromise the auditor
independence requirements of the
Corporations Act 2001.
Directors’ and Officers’
Indemnity
ANZGHL’s Constitution (Rule 11.1) permits
ANZGHL to:
• Indemnify any officer or employee of
ANZGHL or any of its wholly-owned
subsidiaries, or its auditor, against
liabilities (so far as may be permitted
under applicable law) incurred as such
an officer, employee or auditor, including
liabilities incurred as a result of
appointment or nomination by ANZGHL
or wholly-owned subsidiary as a trustee
or as an officer or employee of another
corporation; and
• Make payments in respect of legal costs
incurred by an officer or employee or
auditor in defending an action for a
liability incurred as such an officer,
employee or auditor, or in resisting or
responding to actions taken by a
government agency, a duly constituted
Royal Commission or other official
inquiry, a liquidator, administrator,
trustee in bankruptcy or other
authorised official.
Our policy is that our employees should be
protected from any liability they incur as a
result of acting in the course of their
employment, subject to appropriate
conditions.
Under the policy, we will indemnify
employees and former employees against
any liability they incur to any third party as
a result of acting in good faith in the
course of their employment and this
extends to liability incurred as a result of
their appointment/nomination by or at the
request of the ANZ Group as an officer or
employee of another corporation or body
or as a trustee.
2
92
92
ANZ 2024 Annual Report
Our Performance (continued)
The indemnity is subject to applicable
law and certain exceptions.
ANZBGL has entered into Indemnity
Deeds with each of its Directors, with
certain secretaries and former Directors
of ANZBGL, and with certain employees
and other individuals who act as directors
or officers of related bodies corporate or
of another company, to indemnify them
against liabilities and legal costs of the
kind mentioned in ANZBGL’s Constitution.
The indemnities provided in these
Indemnity Deeds extend to the Directors
and Secretaries of ANZGHL.
During the financial year, we have paid
premiums for insurance for the benefit
of the Directors and employees of the
Group. In accordance with common
commercial practice, the insurance
prohibits disclosure of the nature of the
liability insured against and the amount
of the premium.
Key management personnel
and employee share and
option plans
The Remuneration Report contains
details of Non-Executive Directors (NEDs),
the Chief Executive Officer (CEO) and
Disclosed Executives’ equity holdings
and options/rights issued during the
2024 financial year.
Note 32 Employee Share and Option
Plans in the 2024 Financial Report
contains details of the 2024 financial
year and as at the date of signing the
Directors’ Report:
• Options/rights issued over shares
granted to employees;
• Shares issued as a result of the
exercise of options/rights granted to
employees; and
• Other details about share options/
rights issued, including any rights to
participate in any share issues.
The names of all persons who currently
hold options/rights are entered in the
register kept by ANZGHL pursuant to
section 170 of the Corporations Act
2001. This register may be inspected
free of charge.
Rounding of amounts
ANZGHL is a company of the kind referred to in Australian Securities and Investments
Commission Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191
dated 24 March 2016 and, in accordance with that Instrument, amounts in the
consolidated financial statements and this Directors’ Report have been rounded to the
nearest million dollars unless specifically stated otherwise.
This report is made in accordance with a resolution of the Board of Directors and is
signed for and on behalf of the Directors.
Paul O’Sullivan
Chairman
7 November 2024
Shayne Elliott
Managing Director
Lead Auditor’s Independence Declaration
The Lead Auditors Independence Declaration given under section 307C of
the Corporations Act 2001 is set out below and forms part of the Directors’ Report for
the year ended 30 September 2024.
To: the Directors of ANZ Group Holdings Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of
ANZ Group Holdings Limited for the financial year ended 30 September 2024, there
have been:
• No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
• No contraventions of any applicable code of professional conduct in relation to
the audit.
KPMG
7 November 2024
Maria Trinci
Partner
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo
are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a
scheme approved under Professional Standards Legislation.
3
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Financial report
93
93
Financial Report
Financial Report
Contents
Consolidated Financial Statements
Income Statement
94
Statement of Comprehensive Income 95
Balance Sheet
Cash Flow Statement
Statement of Changes in Equity
96
97
98
Notes to the Consolidated
Financial Statements
Financial instrument disclosures
18. Financial risk management
149
Employee and related
party transactions
Basis of preparation
1. About our financial statements
99
Financial performance
2. Net interest income
3. Non-interest income
4. Operating expenses
5. Income tax
6. Dividends
7. Earnings per ordinary share
8. Segment reporting
Financial assets and other
trading assets
9. Cash and cash equivalents
10. Trading assets
102
103
105
107
110
112
113
117
118
19. Fair value of financial assets
31. Superannuation and post
and financial liabilities
165
employment benefit obligations 195
20. Assets charged as security
for liabilities and collateral
accepted as security for assets 171
32. Employee share and option plans 197
33. Related party disclosures
203
21. Offsetting
Non-financial assets
22. Goodwill and other
intangible assets
Non-financial liabilities
23. Other provisions
Equity
24. Shareholders’ equity
25. Capital management
172
Other disclosures
34. Commitments,
contingent liabilities and
contingent assets
173
35. Auditor fees
177
179
182
36. Suncorp Bank acquisition
37. Events since the end
of the financial year
Consolidated entity
disclosure statement
Directors’ declaration
205
208
209
210
211
214
215
11. Derivative financial instruments 119
Consolidation and presentation
12. Investment securities
13. Net loans and advances
14. Allowance for expected
credit losses
Financial liabilities
15. Deposits and other borrowings
16. Payables and other liabilities
17. Debt issuances
129
131
132
141
142
143
26. Parent entity financial information 186
Independent auditor’s report
27. Controlled entities
28. Investments in associates
29. Structured entities
30. Transfers of financial assets
187
189
191
194
ANZ 2024 Annual Report
ANZ 2024 Annual Report
94
94
Income Statement
For the year ended 30 September
Note
Interest income1
Interest expense
Net interest income
Other operating income
Net income from insurance business
Share of associates' profit/(loss)
Operating income
Operating expenses
Profit before credit impairment and income tax
Credit impairment (charge)/release
Profit before income tax
Income tax expense
Profit for the year
Comprising:
Profit attributable to shareholders of the Company
Profit attributable to non-controlling interests
Earnings per ordinary share (cents)
Basic
Diluted
Dividend per ordinary share (cents)
2
3
3
3
4
14
5
7
7
6
2024
$m
60,639
(44,570)
16,069
4,251
122
105
20,547
(10,741)
9,806
(406)
9,400
(2,830)
6,570
6,535
35
2023
$m
49,904
(33,330)
16,574
3,568
108
221
20,471
(10,139)
10,332
(245)
10,087
(2,953)
7,134
7,106
28
217.9
215.1
166
237.1
227.4
175
1. Includes interest income calculated using the effective interest method on financial assets measured at amortised cost or fair value through other comprehensive income of $55,678 million
(2023: $46,895 million) in the Group.
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
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95
95
Financial report
Shareholder
information
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
For the year ended 30 September
Note
ANZ 2024 Annual Report
ANZ 2024 Annual Report
94
Income Statement
Interest income1
Interest expense
Net interest income
Other operating income
Net income from insurance business
Share of associates' profit/(loss)
Operating income
Operating expenses
Profit before credit impairment and income tax
Credit impairment (charge)/release
Profit before income tax
Income tax expense
Profit for the year
Comprising:
Profit attributable to shareholders of the Company
Profit attributable to non-controlling interests
Earnings per ordinary share (cents)
Basic
Diluted
Dividend per ordinary share (cents)
(2023: $46,895 million) in the Group.
2024
$m
60,639
(44,570)
16,069
4,251
122
105
20,547
(10,741)
9,806
(406)
9,400
(2,830)
6,570
6,535
35
2023
$m
49,904
(33,330)
16,574
3,568
108
221
20,471
(10,139)
10,332
(245)
10,087
(2,953)
7,134
7,106
28
217.9
215.1
166
237.1
227.4
175
2
3
3
3
4
14
5
7
7
6
Statement of Comprehensive Income
For the year ended 30 September
Profit after tax
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Investment securities - equity securities at FVOCI
Other reserve movements1
Items that may be reclassified subsequently to profit or loss
Foreign currency translation reserve
Cash flow hedge reserve
Other reserve movements
Income tax attributable to the above items
Share of associates’ other comprehensive income2
Total comprehensive income for the year
Comprising total comprehensive income attributable to:
Shareholders of the Company
Non-controlling interests 1
2024
$m
6,570
2023
$m
7,134
(25)
(17)
(930)
2,069
(774)
(388)
(23)
6,482
6,457
25
(27)
(80)
718
235
(36)
(23)
31
7,952
7,897
55
1. Includes interest income calculated using the effective interest method on financial assets measured at amortised cost or fair value through other comprehensive income of $55,678 million
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
1. The Group includes foreign currency translation differences attributable to non-controlling interests of $10 million (2023: $27 million).
2. The Group’s share of associates’ other comprehensive income, that may be reclassified subsequently to profit or loss in the Group, includes:
FVOCI reserve gain/(loss)
Defined benefits gain/(loss)
Total
2024
$m
(10)
(13)
(23)
2023
$m
25
6
31
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
94
95
96
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ANZ 2024 Annual Report
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97
Balance Sheet
As at 30 September
Assets
Cash and cash equivalents1
Settlement balances owed to ANZ
Collateral paid
Trading assets
Derivative financial instruments
Investment securities
Net loans and advances
Regulatory deposits
Investments in associates
Current tax assets
Deferred tax assets
Goodwill and other intangible assets
Premises and equipment
Other assets
Total assets
Liabilities
Settlement balances owed by ANZ
Collateral received
Deposits and other borrowings
Derivative financial instruments
Current tax liabilities
Deferred tax liabilities
Payables and other liabilities
Employee entitlements
Other provisions
Debt issuances
Total liabilities
Net assets
Shareholders' equity
Ordinary share capital
Reserves
Retained earnings
Share capital and reserves attributable to shareholders of the Company
Non-controlling interests
Total shareholders' equity
1. Includes Settlement balances owed to ANZ that meet the definition of Cash and cash equivalents.
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
96
Note
2024
$m
2023
$m
9
150,967
168,154
Adjustments to reconcile to net cash provided by/(used in) operating activities:
10
11
12
13
28
5
22
15
11
5
16
23
17
24
24
24
24
5,484
10,090
45,755
54,370
140,549
803,382
665
1,444
46
3,254
5,511
2,222
5,376
9,349
8,558
37,004
60,406
97,429
707,044
646
2,349
114
3,348
4,058
2,053
5,131
1,229,115
1,105,643
16,188
6,583
903,554
55,254
360
78
17,851
646
1,585
19,267
10,382
814,711
57,482
305
82
15,097
569
1,717
156,388
116,014
1,158,487
1,035,626
70,628
70,017
28,182
(1,774)
43,449
69,857
771
70,628
29,082
(1,735)
42,148
69,495
522
70,017
Cash Flow Statement
For the year ended 30 September
Profit after income tax
Allowance for expected credit losses
Depreciation and amortisation
(Gain)/Loss on sale of premises and equipment
Net derivatives/foreign exchange adjustment
(Gain)/Loss on sale from divestments
Other non-cash movements
Net (increase)/decrease in operating assets:
Collateral paid
Trading assets1
Net loans and advances
Other assets
Net increase/(decrease) in operating liabilities:
Deposits and other borrowings
Settlement balances owed by ANZ
Collateral received
Other liabilities1
Total adjustments
Net cash provided by/(used in) operating activities2
Cash flows from investing activities
Acquisition of Suncorp Bank, net of cash acquired
Investment securities assets:
Purchases
Proceeds from sale or maturity
Proceeds from divestments, net of cash disposed
Net movement in shares in controlled entities
Net investments in other assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Deposits and other borrowings (repaid)/drawn down
Debt issuances:3
Issue proceeds
Redemptions
Dividends paid4
On-market purchase of treasury shares
Repayment of lease liabilities
Share buy-back
ANZ Bank New Zealand Perpetual Preference Shares
Net cash provided by/(used in) financing activities
Net increase/(decrease) in Cash and cash equivalents
Cash and cash equivalents at beginning of year
Effects of exchange rate changes on Cash and cash equivalents
Cash and cash equivalents at end of year
1. Certain items were reclassified from Other liabilities to Trading assets to better reflect the movement in operating assets and operating liabilities. Comparatives have been restated with a decrease of
$5,865 million in Trading assets and a corresponding increase in Other liabilities.
2. Net cash provided by/(used in) operating activities for the Group includes interest received of $59,618 million (2023: $48,345 million), interest paid of $43,476 million (2023: $30,707 million) and income
3. Non-cash movements on Debt issuances include a gain of $711 million (2023: $2,084 million loss) from unrealised movements primarily due to fair value hedging adjustments and foreign exchange
taxes paid of $2,925 million (2023: $3,501 million).
differences for the Group.
4. Cash outflow for shares purchased to satisfy the dividend reinvestment plan are classified in Dividends paid.
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
2024
$m
6,570
406
926
-
3,244
21
21
(1,968)
(3,204)
(33,546)
(294)
41,945
(2,905)
(3,368)
2,104
3,382
9,952
(84,777)
47,542
668
-
(640)
50,604
(25,367)
(5,252)
(126)
(309)
(883)
252
17,905
(14,264)
168,154
(2,923)
150,967
(4,914)
-
(42,121)
(10,686)
(1,014)
(11,105)
2023
$m
7,134
245
923
43
3,505
(29)
(74)
4,143
(5,888)
(27,639)
(1,706)
21,601
5,278
(5,848)
4,800
(646)
6,488
(52,030)
41,401
558
(10)
(605)
44,182
(23,985)
(4,380)
(21)
(306)
-
-
4,385
187
168,132
(165)
168,154
97
ANZ 2024 Annual Report
97
97
Financial report
Financial Report
Shareholder
information
Financial Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
96
ANZ 2024 Annual Report
Balance Sheet
As at 30 September
Assets
Cash and cash equivalents1
Settlement balances owed to ANZ
Collateral paid
Trading assets
Derivative financial instruments
Investment securities
Net loans and advances
Regulatory deposits
Investments in associates
Current tax assets
Deferred tax assets
Goodwill and other intangible assets
Premises and equipment
Other assets
Total assets
Liabilities
Settlement balances owed by ANZ
Collateral received
Deposits and other borrowings
Derivative financial instruments
Current tax liabilities
Deferred tax liabilities
Payables and other liabilities
Employee entitlements
Other provisions
Debt issuances
Total liabilities
Net assets
Shareholders' equity
Ordinary share capital
Reserves
Retained earnings
Non-controlling interests
Total shareholders' equity
Share capital and reserves attributable to shareholders of the Company
1. Includes Settlement balances owed to ANZ that meet the definition of Cash and cash equivalents.
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
Note
2024
$m
2023
$m
9
150,967
168,154
10
11
12
13
28
5
22
15
11
5
16
23
17
24
24
24
24
5,484
10,090
45,755
54,370
140,549
803,382
665
1,444
46
3,254
5,511
2,222
5,376
16,188
6,583
903,554
55,254
360
78
17,851
646
1,585
9,349
8,558
37,004
60,406
97,429
707,044
646
2,349
114
3,348
4,058
2,053
5,131
19,267
10,382
814,711
57,482
305
82
15,097
569
1,717
1,229,115
1,105,643
156,388
116,014
1,158,487
1,035,626
70,628
70,017
28,182
(1,774)
43,449
69,857
771
70,628
29,082
(1,735)
42,148
69,495
522
70,017
Cash Flow Statement
For the year ended 30 September
Profit after income tax
Adjustments to reconcile to net cash provided by/(used in) operating activities:
Allowance for expected credit losses
Depreciation and amortisation
(Gain)/Loss on sale of premises and equipment
Net derivatives/foreign exchange adjustment
(Gain)/Loss on sale from divestments
Other non-cash movements
Net (increase)/decrease in operating assets:
Collateral paid
Trading assets1
Net loans and advances
Other assets
Net increase/(decrease) in operating liabilities:
Deposits and other borrowings
Settlement balances owed by ANZ
Collateral received
Other liabilities1
Total adjustments
Net cash provided by/(used in) operating activities2
Cash flows from investing activities
Acquisition of Suncorp Bank, net of cash acquired
Investment securities assets:
Purchases
Proceeds from sale or maturity
Proceeds from divestments, net of cash disposed
Net movement in shares in controlled entities
Net investments in other assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Deposits and other borrowings (repaid)/drawn down
Debt issuances:3
Issue proceeds
Redemptions
Dividends paid4
On-market purchase of treasury shares
Repayment of lease liabilities
Share buy-back
ANZ Bank New Zealand Perpetual Preference Shares
Net cash provided by/(used in) financing activities
Net increase/(decrease) in Cash and cash equivalents
Cash and cash equivalents at beginning of year
Effects of exchange rate changes on Cash and cash equivalents
Cash and cash equivalents at end of year
2024
$m
6,570
406
926
-
3,244
21
21
(1,968)
(3,204)
(33,546)
(294)
41,945
(2,905)
(3,368)
2,104
3,382
9,952
2023
$m
7,134
245
923
43
3,505
(29)
(74)
4,143
(5,888)
(27,639)
(1,706)
21,601
5,278
(5,848)
4,800
(646)
6,488
(4,914)
-
(84,777)
47,542
668
-
(640)
(52,030)
41,401
558
(10)
(605)
(42,121)
(10,686)
(1,014)
(11,105)
50,604
(25,367)
(5,252)
(126)
(309)
(883)
252
17,905
(14,264)
168,154
(2,923)
150,967
44,182
(23,985)
(4,380)
(21)
(306)
-
-
4,385
187
168,132
(165)
168,154
1. Certain items were reclassified from Other liabilities to Trading assets to better reflect the movement in operating assets and operating liabilities. Comparatives have been restated with a decrease of
$5,865 million in Trading assets and a corresponding increase in Other liabilities.
2. Net cash provided by/(used in) operating activities for the Group includes interest received of $59,618 million (2023: $48,345 million), interest paid of $43,476 million (2023: $30,707 million) and income
taxes paid of $2,925 million (2023: $3,501 million).
3. Non-cash movements on Debt issuances include a gain of $711 million (2023: $2,084 million loss) from unrealised movements primarily due to fair value hedging adjustments and foreign exchange
differences for the Group.
4. Cash outflow for shares purchased to satisfy the dividend reinvestment plan are classified in Dividends paid.
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
96
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ANZ 2024 Annual Report
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98
98
Statement of Changes in Equity
As at 1 October 2022
Impact on transition to AASB 17
Profit or loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with equity holders in their capacity as
equity holders:
Dividends paid
Dividend reinvestment plan1
Other equity movements:
Employee share and option plans
Other items
As at 30 September 2023
Profit or loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with equity holders in their capacity as
equity holders:
Dividends paid
Dividend reinvestment plan1
Share buy-back2
Other equity movements:
Employee share and option plans
ANZ Bank New Zealand Perpetual Preference Shares3
Other items
As at 30 September 2024
Ordinary
share capital
$m
Reserves
$m
Retained
earnings
$m
28,797
(2,606)
39,716
-
-
-
-
-
206
79
-
-
-
865
865
-
-
-
6
(37)
7,106
(74)
7,032
(4,559)
-
-
(4)
29,082
(1,735)
42,148
6,535
(20)
6,515
Share capital
and reserves
attributable to
shareholders
of the Company
$m
65,907
(37)
7,106
791
7,897
(4,559)
206
79
2
69,495
6,535
(78)
6,457
Non-
controlling
interests
$m
Total
shareholders’
equity
$m
494
66,401
-
28
27
55
(37)
7,134
818
7,952
(27)
(4,586)
-
-
-
522
35
(10)
25
206
79
2
70,017
6,570
(88)
6,482
-
-
-
-
-
(883)
(17)
-
-
-
(58)
(58)
-
-
-
25
-
(6)
(5,220)
(5,220)
(32)
(5,252)
-
-
4
(4)
6
-
(883)
12
(4)
-
-
-
-
256
-
771
-
(883)
12
252
-
70,628
28,182
(1,774)
43,449
69,857
1. No shares were issued under the dividend reinvestment plan (DRP) for the 2024 interim and 2023 final dividend (2023 interim dividend: nil, 2022 final dividend: 8.4 million). On-market share purchases for
the DRP were $535 million (2023: $326 million).
2. The Company commenced a $2 billion on-market share buy-back on 3 July 2024. This resulted in 30 million shares ($883 million) being cancelled during 2024 and a further 1.2 million shares
($36 million) being cancelled after 30 September 2024 in respect of purchase orders placed but not settled at 30 September 2024.
3. Perpetual preference shares issued by ANZ Bank New Zealand, a wholly owned subsidiary of ANZGHL, are considered non-controlling interests to the Group. Refer to Note 24 Shareholders’ equity for
further details.
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
98
ANZ 2024 Annual Report
Notes to the Financial Statements
99
99
Financial report
Shareholder
information
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Notes to the Consolidated
Financial Statements
ANZ 2024 Annual Report
ANZ 2024 Annual Report
98
Statement of Changes in Equity
As at 1 October 2022
Impact on transition to AASB 17
Profit or loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with equity holders in their capacity as
equity holders:
Dividends paid
Dividend reinvestment plan1
Other equity movements:
Employee share and option plans
Other items
As at 30 September 2023
Profit or loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with equity holders in their capacity as
equity holders:
Dividends paid
Dividend reinvestment plan1
Share buy-back2
Other equity movements:
Employee share and option plans
ANZ Bank New Zealand Perpetual Preference Shares3
Other items
As at 30 September 2024
the DRP were $535 million (2023: $326 million).
(4,559)
(27)
(4,586)
Ordinary
share capital
Reserves
$m
$m
Retained
earnings
$m
28,797
(2,606)
39,716
-
-
865
865
(37)
7,106
(74)
7,032
-
-
-
-
-
-
-
-
-
-
-
-
206
79
-
(883)
(17)
29,082
(1,735)
42,148
(58)
(58)
6,535
(20)
6,515
-
-
-
6
-
-
-
-
25
-
(6)
-
-
(4)
-
-
4
(4)
6
Share capital
and reserves
attributable to
shareholders
of the Company
interests
controlling
shareholders’
Non-
$m
494
-
28
27
55
-
-
-
-
-
-
-
522
35
(10)
25
256
Total
equity
$m
66,401
(37)
7,134
818
7,952
206
79
2
70,017
6,570
(88)
6,482
-
(883)
12
252
-
$m
65,907
(37)
7,106
791
7,897
(4,559)
206
79
2
69,495
6,535
(78)
6,457
-
(883)
12
(4)
-
1. No shares were issued under the dividend reinvestment plan (DRP) for the 2024 interim and 2023 final dividend (2023 interim dividend: nil, 2022 final dividend: 8.4 million). On-market share purchases for
2. The Company commenced a $2 billion on-market share buy-back on 3 July 2024. This resulted in 30 million shares ($883 million) being cancelled during 2024 and a further 1.2 million shares
($36 million) being cancelled after 30 September 2024 in respect of purchase orders placed but not settled at 30 September 2024.
3. Perpetual preference shares issued by ANZ Bank New Zealand, a wholly owned subsidiary of ANZGHL, are considered non-controlling interests to the Group. Refer to Note 24 Shareholders’ equity for
28,182
(1,774)
43,449
69,857
771
70,628
further details.
The notes appearing on pages 99 to 210 form an integral part of these financial statements.
1. About our financial statements
General information
These are the consolidated financial statements for ANZGHL (the Company) and its controlled entities (together, the Group or Consolidated Entity) for the
year ended 30 September 2024. The Company is a publicly listed company incorporated and domiciled in Australia. The address of the Company’s
registered office and its principal place of business is ANZ Centre, 833 Collins Street, Docklands, Victoria, Australia 3008. The Group provides banking and
financial services to individuals and business customers and operates in and across 29 markets.
On 7 November 2024, the Directors resolved to authorise the issue of these financial statements. Information in the financial statements is included only
to the extent we consider it material and relevant to the understanding of the financial statements. A disclosure is considered material and relevant if, for
example:
the amount is significant in size (quantitative factor);
the information is significant by nature (qualitative factor);
the user cannot understand the Group’s results without the specific disclosure (qualitative factor);
the information is critical to a user’s understanding of the impact of significant changes in the Group’s business during the period - for example,
business acquisitions or disposals (qualitative factor);
the information relates to an aspect of the Group’s operations that is important to its future performance (qualitative factor); and
the information is required under legislative requirements of the Corporations Act 2001, the Banking Act 1959 (Cth) or by the Group’s principal
regulators, including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA).
This section of the financial statements:
(5,220)
(5,220)
(32)
(5,252)
outlines the basis upon which the Group’s financial statements have been prepared; and
discusses any new accounting standards or regulations that directly impact the financial statements.
Basis of preparation
This financial report is a general purpose (Tier 1) financial report prepared by a ‘for profit’ entity, in accordance with Australian Accounting Standards
(AASs) and other authoritative pronouncements of the Australian Accounting Standards Board (AASB), the Corporations Act 2001, and International
Financial Reporting Standards (IFRS) and interpretations published by the International Accounting Standards Board (IASB).
We present the financial statements of the Group in Australian dollars, which is the Company’s functional and presentation currency. We measure the
financial statements of each entity in the Group using the currency of the primary economic environment in which that entity operates (the functional
currency). We have rounded values to the nearest million dollars ($m), unless otherwise stated, as permitted under the ASIC Corporations (Rounding in
Financial/Directors Report) Instrument 2016/191.
Certain comparative amounts have been restated to conform with the basis of preparation in the current year.
Basis of measurement and presentation
The financial information has been prepared in accordance with the historical cost basis - except the following assets and liabilities which we have stated
at their fair value:
derivative financial instruments and in the case of fair value hedging, a fair value adjustment made to the underlying hedged item;
financial instruments held for trading;
financial assets and financial liabilities designated at fair value through profit or loss (FVTPL); and
financial assets at fair value through other comprehensive income (FVOCI).
In accordance with AASB 119 Employee Benefits we have measured defined benefit obligations using the Projected Unit Credit Method.
Basis of consolidation
The consolidated financial statements of the Group comprise the financial statements of the Company and all its subsidiaries. An entity, including a
structured entity, is considered a subsidiary of the Group when we determine that the Company has control over the entity. Control exists when the Group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. We assess power by examining existing rights that give the Company the current ability to direct the relevant activities of the entity. We have
eliminated, on consolidation, the effect of all transactions between entities in the Group.
98
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ANZ 2024 Annual Report
100
100
ANZ 2024 Annual Report
Notes to the consolidated financial statements (continued)
1. About our financial statements (continued)
Foreign currency translation
Transactions and balances
Foreign currency transactions are translated into the relevant functional currency at the exchange rate prevailing at the date of the transaction. At the
reporting date, monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the relevant spot rate. Any
foreign currency translation gains or losses that arise are included in profit or loss in the period they arise.
We measure translation differences on non-monetary items classified as FVTPL and report them as part of the fair value gain or loss on these items. For
non-monetary items classified as investment securities measured at FVOCI, translation differences are included in other comprehensive income.
Financial statements of foreign operations that have a functional currency that is not Australian dollars
The financial statements of our foreign operations are translated into Australian dollars for consolidation into the Group financial statements using the
following method:
Foreign currency item
Exchange rate used
Assets and liabilities
The reporting date rate
Equity
The initial investment date rate
Income and expenses
The average rate for the period – but for a significant transaction if we believe the average rate is not reasonable,
then we use the rate at the date of the transaction
Exchange differences arising from the translation of financial statements of foreign operations are recognised in the foreign currency translation reserve in
equity. When we dispose of a foreign operation, the cumulative exchange differences are transferred to profit or loss.
Fiduciary activities
The Group provides fiduciary services to third parties including custody, nominee and trustee services. This involves the Group holding assets on behalf of
third parties and making decisions regarding the purchase and sale of financial instruments. If the Group is not the beneficial owner or does not control the
assets, then we do not recognise these transactions in these financial statements, except when required by accounting standards or another legislative
requirement.
Key judgements and estimates
In the process of applying the Group’s accounting policies, management has made a number of judgements and applied estimates and
assumptions about past and future events. Further information on the key judgements and estimates that we consider material to the financial
statements are contained within each relevant note to the financial statements.
The global economy continues to face challenges associated with inflation and interest rate uncertainties, continuing trade and geopolitical
tensions, and impacts from climate change, which contribute to an elevated level of estimation uncertainty involved in the preparation of these
financial statements.
The Group is exposed to climate risk either directly through its operations or indirectly, for example, through lending to customers. Climate risk
may also be a driver of other risks within our risk management framework. Our most material climate risks arise from lending to business and
retail customers, which contributes to credit risk.
The Group has made various accounting estimates in this Financial Report based on forecasts of economic conditions which reflect
expectations and assumptions at 30 September 2024 about future events considered reasonable in the circumstances. Thus, there is a
considerable degree of judgement involved in preparing these estimates. Actual economic conditions are likely to be different from those
forecast since anticipated events frequently do not occur as expected, and the effect of these differences may significantly impact accounting
estimates included in these financial statements. The significant accounting estimates impacted by these forecasts and associated
uncertainties are predominantly related to expected credit losses and recoverable amounts of non-financial assets.
The impact of these uncertainties on each of these accounting estimates is discussed in the relevant notes in this Financial Report, along with
assumptions and judgements made in relation to other key estimates. Readers should consider these disclosures in light of the inherent
uncertainties described above.
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Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
101
101
1. About our financial statements (continued)
Foreign currency translation
Transactions and balances
Foreign currency transactions are translated into the relevant functional currency at the exchange rate prevailing at the date of the transaction. At the
reporting date, monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the relevant spot rate. Any
foreign currency translation gains or losses that arise are included in profit or loss in the period they arise.
We measure translation differences on non-monetary items classified as FVTPL and report them as part of the fair value gain or loss on these items. For
non-monetary items classified as investment securities measured at FVOCI, translation differences are included in other comprehensive income.
Financial statements of foreign operations that have a functional currency that is not Australian dollars
The financial statements of our foreign operations are translated into Australian dollars for consolidation into the Group financial statements using the
following method:
Foreign currency item
Exchange rate used
Assets and liabilities
The reporting date rate
Equity
The initial investment date rate
Income and expenses
The average rate for the period – but for a significant transaction if we believe the average rate is not reasonable,
then we use the rate at the date of the transaction
Exchange differences arising from the translation of financial statements of foreign operations are recognised in the foreign currency translation reserve in
equity. When we dispose of a foreign operation, the cumulative exchange differences are transferred to profit or loss.
Fiduciary activities
requirement.
The Group provides fiduciary services to third parties including custody, nominee and trustee services. This involves the Group holding assets on behalf of
third parties and making decisions regarding the purchase and sale of financial instruments. If the Group is not the beneficial owner or does not control the
assets, then we do not recognise these transactions in these financial statements, except when required by accounting standards or another legislative
1. About our financial statements (continued)
Accounting standards adopted in the period
Accounting policies have been consistently applied to all periods presented, unless otherwise noted.
AASB 17 Insurance Contracts
On 1 October 2023, the Group adopted AASB 17 Insurance Contracts (AASB 17) which established principles for the recognition, measurement,
presentation, and disclosure of insurance contracts, and replaced AASB 4 Insurance Contracts and AASB 1023 General Insurance Contracts. Although
the overall profit recognised in respect of insurance contracts will not change over the life of contracts, the timing of revenue recognition will change.
The Group applied AASB 17 effective from 1 October 2022 and restated prior period comparative information. This resulted in a decrease in opening
retained earnings of $37 million on 1 October 2022, an increase in profit after tax (2023: $8 million), an increase in total assets (2023: $22 million), and an
increase in total liabilities (2023: $51 million) in the Australia Retail division. The impact on earnings per share was not material. These adjustments were
primarily driven by the impact of changes in the pattern of recognition of revenue on insurance contracts issued, changes in the pattern of recognition of
the net cost of reinsurance and the valuation of profit commissions on reinsurance contracts held.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction amends
AASB 112 Income Taxes. It clarifies that entities are required to recognise deferred tax on transactions for which there is both an asset and a liability and
that give rise to equal taxable and deductible temporary differences which may apply to leases and decommissioning or restoration obligations. This
amendment was effective for the Group from 1 October 2023 and did not have a material impact on the Group.
International Tax Reform – Pillar Two Model Rules
The Organisation for Economic Co-Operation and Development published the Pillar Two Model Rules in December 2021 which are designed to ensure
large multinational enterprises pay a minimum level of tax of 15% in each of the jurisdictions where they operate. A number of countries in which the
Group operates have implemented or announced the proposed implementation of the Pillar Two rules including Australia.
As at 30 September 2024, Pillar Two draft legislation has been released in Australia but is not yet enacted or substantially enacted. The Australian Pillar
Two rules, if enacted, will be effective for the Group from 1 October 2024.
In anticipation of the legislation being enacted, the AASB issued AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Return
– Pillar Two Model Rules in June 2023. The Group has applied the mandatory exemption included in para.4A of this standard and has not recognised or
disclosed any associated deferred taxes.
The Group has assessed the potential impact of the Pillar Two legislation. Based on this analysis as at the reporting date and having regard to the
historical and reasonably estimable data, the Group is not expected to have a material Pillar Two tax exposure.
Key judgements and estimates
Accounting standards not early adopted
In the process of applying the Group’s accounting policies, management has made a number of judgements and applied estimates and
assumptions about past and future events. Further information on the key judgements and estimates that we consider material to the financial
statements are contained within each relevant note to the financial statements.
The global economy continues to face challenges associated with inflation and interest rate uncertainties, continuing trade and geopolitical
tensions, and impacts from climate change, which contribute to an elevated level of estimation uncertainty involved in the preparation of these
financial statements.
The Group is exposed to climate risk either directly through its operations or indirectly, for example, through lending to customers. Climate risk
may also be a driver of other risks within our risk management framework. Our most material climate risks arise from lending to business and
retail customers, which contributes to credit risk.
The Group has made various accounting estimates in this Financial Report based on forecasts of economic conditions which reflect
expectations and assumptions at 30 September 2024 about future events considered reasonable in the circumstances. Thus, there is a
considerable degree of judgement involved in preparing these estimates. Actual economic conditions are likely to be different from those
forecast since anticipated events frequently do not occur as expected, and the effect of these differences may significantly impact accounting
estimates included in these financial statements. The significant accounting estimates impacted by these forecasts and associated
uncertainties are predominantly related to expected credit losses and recoverable amounts of non-financial assets.
The impact of these uncertainties on each of these accounting estimates is discussed in the relevant notes in this Financial Report, along with
assumptions and judgements made in relation to other key estimates. Readers should consider these disclosures in light of the inherent
uncertainties described above.
A number of new standards, amendments to standards and interpretations have been published but are not mandatory for the financial statements for
the year ended 30 September 2024 and have not been applied by the Group in preparing these financial statements. Further details of these are set out
below.
AASB 18 Presentation and Disclosure in Financial Statements
In June 2024, the AASB issued AASB 18 Presentation and Disclosure in Financial Statements (AASB 18) which updates and replaces requirements for the
presentation and disclosure of information in financial statements. AASB 18 introduces new defined subtotals to be presented in the consolidated Income
Statement, disclosure of management-defined performance measures and requirements for grouping of information. This standard will be effective for
the financial year beginning 1 October 2027. We are currently assessing the impact of adopting this standard.
Classification and measurement amendments to AASB 9 Financial Instruments
In July 2024, the AASB issued AASB 2024-2 Amendments to Australian Accounting Standards - Classification and Measurement of Financial Instruments
which amends requirements related to settling financial liabilities using an electronic payment system and assessing contractual cash flow characteristics
of financial assets with environmental, social and corporate governance and similar features. The amendments will be effective for the financial year
beginning 1 October 2026. We are currently assessing the impact of adopting the amendments.
Lease Liability in a Sale and Leaseback
AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback amends AASB 16 Leases and specifies the
accounting for variable lease payments by seller-lessees in sale and leaseback transactions. The amendment is effective from 1 October 2024 and will
not have a material impact on the Group.
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2. Net interest income
Interest income by type of financial asset
Financial assets at amortised cost
Investment securities at FVOCI
Trading assets
Financial assets at FVTPL
Interest income
Interest expense by type of financial liability
Financial liabilities at amortised cost
Securities sold short
Financial liabilities designated at FVTPL
Interest expense
Major bank levy
Net interest income
Notes to the consolidated financial statements (continued)
2024
$m
2023
$m
51,139
4,539
2,217
2,744
60,639
(41,401)
(649)
(2,131)
(44,181)
(389)
16,069
44,280
2,615
1,654
1,355
49,904
(31,312)
(451)
(1,214)
(32,977)
(353)
16,574
Recognition and measurement
Net interest income
Interest income and expense
We recognise interest income and expense in net interest income for all financial instruments, including those classified as held for trading,
assets measured at FVOCI, and assets and liabilities designated at FVTPL. We use the effective interest rate method to calculate the amortised
cost of assets held at amortised cost and to recognise interest income on financial assets measured at amortised cost and FVOCI. The effective
interest rate is the rate that discounts the stream of estimated future cash receipts or payments over the expected life of the financial instrument
or, when appropriate, a shorter period, to the net carrying amount of the financial asset or liability. For assets subject to prepayment, we
determine their expected life on the basis of historical behaviour of the particular asset portfolio taking into account contractual obligations and
prepayment experience.
We recognise fees and costs, which form an integral part of the financial instrument (for example loan origination fees and costs), using the
effective interest rate method. These are presented as part of interest income or expense depending on whether the underlying financial
instrument is a financial asset or financial liability.
Major Bank Levy
The Major Bank Levy Act 2017 (levy or major bank levy) applies a rate of 0.06% to certain liabilities of one of the Group’s banking subsidiaries,
Australia and New Zealand Banking Group Limited (ANZBGL). The levy represents a finance cost, and it is presented as interest expense in the
Income Statement.
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102
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
103
103
2. Net interest income
Interest income by type of financial asset
Financial assets at amortised cost
Investment securities at FVOCI
Trading assets
Financial assets at FVTPL
Interest income
Interest expense by type of financial liability
Financial liabilities at amortised cost
Securities sold short
Financial liabilities designated at FVTPL
Interest expense
Major bank levy
Net interest income
Recognition and measurement
Net interest income
Interest income and expense
2024
$m
2023
$m
51,139
4,539
2,217
2,744
60,639
(41,401)
(649)
(2,131)
(44,181)
(389)
16,069
44,280
2,615
1,654
1,355
49,904
(31,312)
(451)
(1,214)
(32,977)
(353)
16,574
3. Non-interest income
Fee and commission income
Lending fees1
Non-lending fees
Commissions
Funds management income
Fee and commission income
Fee and commission expense
Net fee and commission income
Other income
Net foreign exchange earnings and other financial instruments income2
Release of foreign currency translation reserve on dissolution of entities
Loss on disposal of data centres in Australia
Loss on disposal of investment in AmBank
Other
Other income
Other operating income
Net income from insurance business
Share of associates' profit/(loss)
Non-interest income
2024
$m
420
2,334
75
241
3,070
(1,085)
1,985
2,166
22
-
(21)
99
2,266
4,251
122
105
4,478
2023
$m
397
2,312
85
246
3,040
(1,087)
1,953
1,536
43
(43)
-
79
1,615
3,568
108
221
3,897
1. Excludes fees treated as part of the effective yield calculation in Interest income.
2. Includes fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges entered into to manage interest rate and foreign exchange risk, ineffective
portions of cash flow hedges, and fair value movements in financial assets and liabilities designated at FVTPL.
We recognise interest income and expense in net interest income for all financial instruments, including those classified as held for trading,
assets measured at FVOCI, and assets and liabilities designated at FVTPL. We use the effective interest rate method to calculate the amortised
cost of assets held at amortised cost and to recognise interest income on financial assets measured at amortised cost and FVOCI. The effective
interest rate is the rate that discounts the stream of estimated future cash receipts or payments over the expected life of the financial instrument
or, when appropriate, a shorter period, to the net carrying amount of the financial asset or liability. For assets subject to prepayment, we
determine their expected life on the basis of historical behaviour of the particular asset portfolio taking into account contractual obligations and
prepayment experience.
We recognise fees and costs, which form an integral part of the financial instrument (for example loan origination fees and costs), using the
effective interest rate method. These are presented as part of interest income or expense depending on whether the underlying financial
instrument is a financial asset or financial liability.
Major Bank Levy
Income Statement.
The Major Bank Levy Act 2017 (levy or major bank levy) applies a rate of 0.06% to certain liabilities of one of the Group’s banking subsidiaries,
Australia and New Zealand Banking Group Limited (ANZBGL). The levy represents a finance cost, and it is presented as interest expense in the
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104
Notes to the consolidated financial statements (continued)
3. Non-interest income (continued)
Recognition and measurement
Other operating income
Fee and commission revenue
We recognise fee and commission revenue arising from contracts with customers (a) over time when the performance obligation is satisfied
across more than one reporting period, or (b) at a point in time when the performance obligation is satisfied immediately or is satisfied within
one reporting period.
lending fees exclude fees treated as part of the effective yield calculation of interest income. Lending fees include certain guarantee and
commitment fees where the loan or guarantee is not likely to be drawn upon, and other fees charged for providing customers a distinct
good or service that are recognised separately from the underlying lending product.
non-lending fees include fees associated with deposit and credit card accounts, interchange fees and fees charged for specific customer
transactions such as international transaction fees. Where the Group provides multiple goods or services to a customer under the same
contract, the Group allocates the transaction price of the contract to distinct performance obligations based on the relative stand-alone
selling price of each performance obligation. Revenue is recognised as each performance obligation is satisfied.
commissions represent fees from third parties where we act as an agent by arranging a third party (such as an insurance provider) to
provide goods and services to a customer. In such cases, we are not primarily responsible for providing the underlying good or service to
the customer. If the Group collects funds on behalf of a third party when acting as an agent, we only recognise the net commission
retained as revenue. When the commission is variable based on factors outside our control (such as a trail commission), revenue is only
recognised if it is highly probable that a significant reversal of the variable amount will not be required in future periods.
funds management income represents fees earned from customers for providing financial advice and asset management services.
Revenue is recognised either at the point the financial advice is provided or over the period in which the asset management services are
delivered. Performance fees associated with funds management activities are only recognised when it becomes highly probable the
performance hurdle will be achieved.
Net foreign exchange earnings and other financial instruments income
We recognise the following as net foreign exchange earnings and other financial instruments income:
exchange rate differences arising on the settlement of monetary items and translation differences on monetary items translated at rates
different to those at which they were initially recognised or included in a previous financial report;
fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges that we use to manage
interest rate and foreign exchange risk on funding instruments;
the ineffective portions of fair value hedges, cash flow hedges and net investment hedges;
immediately upon sale or repayment of a hedged item, the unamortised fair value adjustments to items designated as fair value hedges
and amounts accumulated in equity related to designated cash flow hedges;
fair value movements on financial assets and financial liabilities designated at FVTPL or held for trading;
amounts released from the FVOCI reserve when a debt instrument classified as FVOCI is sold; and
the gain or loss on derecognition of financial assets or liabilities measured at amortised cost.
Gain or loss on disposal of non-financial assets
The gain or loss on the disposal of assets is the difference between the carrying value of the asset and the proceeds of disposal net of costs.
This is recognised in Other income in the year in which control of the asset transfers to the buyer.
Share of associates’ profit/(loss)
The equity method is applied to accounting for associates. Under the equity method, our share of the after tax results of associates is included
in the Income Statement and the Statement of Comprehensive Income.
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Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
4. Operating expenses
Personnel
Salaries and related costs
Superannuation costs
Equity-settled share-based payments
Other
Personnel
Premises
Rent
Depreciation
Other
Premises
Technology
Depreciation and amortisation
Subscription licences and outsourced services
Other
Technology
Restructuring
Other
Advertising and public relations
Professional fees
Freight, stationery, postage and communication
Card processing fees
Other
Other
Operating expenses
Shareholder
Notes to the Financial Statements
information
Financial report
105
105
2024
$m
2023
$m
5,506
5,180
446
141
85
396
105
81
6,178
5,762
74
407
178
659
505
1,155
255
1,915
235
210
770
170
108
496
71
410
177
658
505
1,007
188
1,700
169
191
861
175
104
519
1,754
10,741
1,850
10,139
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106
Notes to the consolidated financial statements (continued)
4. Operating expenses (continued)
Recognition and measurement
Operating expenses
Operating expenses are recognised as services are provided to the Group, over the period in which an asset is consumed, or once a liability is
created.
Salaries and related costs - annual leave, long service leave and other employee benefits
Wages and salaries, annual leave and other employee entitlements expected to be paid or settled within twelve months of employees
rendering service are measured at their nominal amounts using remuneration rates that the Group expects to pay when the liabilities are
settled.
We accrue employee entitlements relating to long service leave using an actuarial calculation. It includes assumptions regarding staff
departures, leave utilisation and future salary increases. The result is then discounted using market yields at the reporting date. The market
yields are determined from a blended rate of high quality corporate bonds with terms to maturity that closely match the estimated future cash
outflows.
If we expect to pay short term cash bonuses, then a liability is recognised when the Group has a present legal or constructive obligation to pay
this amount (as a result of past service provided by the employee) and the obligation can be reliably measured.
Personnel expenses also include share-based payments which may be cash or equity settled. We calculate the fair value of equity settled
remuneration at grant date, which is then amortised over the vesting period, with a corresponding increase in share capital or the share option
reserve as applicable. When we estimate the fair value, we take into account market vesting conditions, such as share price performance
conditions. We take non-market vesting conditions, such as service conditions, into account by adjusting the number of equity instruments
included in the expense.
After the grant of an equity-based award, the amount we recognise as an expense is reversed when non-market vesting conditions are not
met, for example an employee fails to satisfy the minimum service period specified in the award due to resignation, termination or notice of
dismissal for serious misconduct. However, we do not reverse the expense if the award does not vest due to the failure to meet a market-
based performance condition.
Further information on share-based payment schemes operated by the Group during the current and prior year is included in Note 32
Employee share and option plans.
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Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
107
107
5. Income tax
Income tax expense
Reconciliation of the prima facie income tax expense on pre-tax profit with the income tax expense recognised in profit or loss:
Profit before income tax
Prima facie income tax expense at 30%
Tax effect of permanent differences:
Share of associates' (profit)/loss
Interest on convertible instruments
Overseas tax rate differential
Provision for foreign tax on dividend repatriation
Other
Subtotal
Income tax (over)/under provided in previous years
If we expect to pay short term cash bonuses, then a liability is recognised when the Group has a present legal or constructive obligation to pay
Income tax expense
Current tax expense
Adjustments recognised in the current year in relation to the
current tax of prior years
Deferred tax expense/(income) relating to the origination and
reversal of temporary differences
Income tax expense
Australia
Overseas
Income tax expense
Effective tax rate
2024
$m
9,400
2,820
(32)
124
(156)
36
18
2,810
20
2,830
3,078
20
(268)
2,830
1,495
1,335
2,830
30.1%
2023
$m
10,087
3,027
(66)
92
(163)
41
22
2,953
-
2,953
2,901
-
52
2,953
1,646
1,307
2,953
29.3%
4. Operating expenses (continued)
Recognition and measurement
Operating expenses
Operating expenses are recognised as services are provided to the Group, over the period in which an asset is consumed, or once a liability is
Salaries and related costs - annual leave, long service leave and other employee benefits
Wages and salaries, annual leave and other employee entitlements expected to be paid or settled within twelve months of employees
rendering service are measured at their nominal amounts using remuneration rates that the Group expects to pay when the liabilities are
We accrue employee entitlements relating to long service leave using an actuarial calculation. It includes assumptions regarding staff
departures, leave utilisation and future salary increases. The result is then discounted using market yields at the reporting date. The market
yields are determined from a blended rate of high quality corporate bonds with terms to maturity that closely match the estimated future cash
created.
settled.
outflows.
this amount (as a result of past service provided by the employee) and the obligation can be reliably measured.
Personnel expenses also include share-based payments which may be cash or equity settled. We calculate the fair value of equity settled
remuneration at grant date, which is then amortised over the vesting period, with a corresponding increase in share capital or the share option
reserve as applicable. When we estimate the fair value, we take into account market vesting conditions, such as share price performance
conditions. We take non-market vesting conditions, such as service conditions, into account by adjusting the number of equity instruments
included in the expense.
After the grant of an equity-based award, the amount we recognise as an expense is reversed when non-market vesting conditions are not
met, for example an employee fails to satisfy the minimum service period specified in the award due to resignation, termination or notice of
dismissal for serious misconduct. However, we do not reverse the expense if the award does not vest due to the failure to meet a market-
based performance condition.
Employee share and option plans.
Further information on share-based payment schemes operated by the Group during the current and prior year is included in Note 32
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5. Income tax (continued)
Deferred tax assets and liabilities
Deferred tax assets balances comprise temporary differences attributable to:
Amounts recognised in the Income Statement:
Collectively assessed allowances for expected credit losses
Individually assessed allowances for expected credit losses
Provision for employee entitlements
Other provisions
Software
Lease liabilities1
Other1
Total
Amounts recognised directly in Other Comprehensive Income:
Cash flow hedge reserve
FVOCI reserve
Other reserves
Total
Total deferred tax assets (before set-off)1
Set-off of deferred tax balances pursuant to set-off provisions1
Net deferred tax assets
Deferred tax liabilities balances comprise temporary differences attributable to:
Amounts recognised in the Income Statement:
Finance leases
Right-of-use assets1
Other
Total
Amounts recognised directly in Other Comprehensive Income:
Foreign currency translation reserve
Cash flow hedge reserve
FVOCI reserve
Defined benefit obligations
Other reserves
Total
Total deferred tax liabilities (before set-off)1
Set-off of deferred tax balances pursuant to set-off provisions1
Net deferred tax liabilities
Notes to the consolidated financial statements (continued)
2024
$m
2023
$m
1,216
1,128
86
330
261
1,014
334
220
3,461
217
246
2
465
3,926
(672)
3,254
2024
$m
11
286
341
638
1
32
30
42
7
112
750
(672)
78
102
294
263
917
283
231
3,218
818
29
-
847
4,065
(717)
3,348
2023
$m
96
236
323
655
36
17
44
47
-
144
799
(717)
82
1. Prior period balances have been restated to reflect the adoption of amendments to AASB 112 Income Taxes related to right-of-use assets and lease liabilities that arise from a single transaction.
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Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
109
109
5. Income tax (continued)
Deferred tax assets and liabilities
Deferred tax assets balances comprise temporary differences attributable to:
Amounts recognised in the Income Statement:
Collectively assessed allowances for expected credit losses
Individually assessed allowances for expected credit losses
Provision for employee entitlements
Amounts recognised directly in Other Comprehensive Income:
Total deferred tax assets (before set-off)1
Set-off of deferred tax balances pursuant to set-off provisions1
Net deferred tax assets
Deferred tax liabilities balances comprise temporary differences attributable to:
Amounts recognised in the Income Statement:
Other provisions
Software
Lease liabilities1
Other1
Total
Cash flow hedge reserve
FVOCI reserve
Other reserves
Total
Finance leases
Right-of-use assets1
Other
Total
Cash flow hedge reserve
FVOCI reserve
Defined benefit obligations
Other reserves
Total
Amounts recognised directly in Other Comprehensive Income:
Foreign currency translation reserve
Total deferred tax liabilities (before set-off)1
Set-off of deferred tax balances pursuant to set-off provisions1
Net deferred tax liabilities
5. Income tax (continued)
Tax consolidation
The Company and all its wholly owned Australian resident entities are part of a tax-consolidated group under Australian taxation law. The Company is the
head entity of the tax-consolidated group. We recognise each of the following in the separate financial statements of members of the tax consolidated
group on a ‘group allocation’ basis: tax expense/income, and deferred tax liabilities/assets that arise from temporary differences for members of the tax-
consolidated group. The Company (as head entity of the tax-consolidated group) recognises current tax liabilities and assets of the tax-consolidated
group.
Under a tax funding arrangement between the entities in the tax-consolidated group, amounts are recognised as payable to or receivable by the
Company and each member of the tax-consolidated group in relation to the tax contribution amounts paid or payable between the Company and the
other members of the tax-consolidated group.
Members of the tax-consolidated group have also entered into a tax sharing agreement that provides for the allocation of income tax liabilities between
the entities were the head entity to default on its income tax payment obligations.
Unrecognised deferred tax assets and liabilities
Unrecognised deferred tax assets related to unused realised tax losses (on revenue account) total $79 million (2023: $43 million) for the Group.
Unrecognised deferred tax assets related to unused capital losses amount to $361 million (2023: $370 million) for the Group.
Unrecognised deferred tax liabilities related to additional potential foreign tax costs (assuming all retained earnings in offshore branches and subsidiaries
are repatriated) total $251 million (2023: $286 million) for the Group.
Recognition and measurement
Income tax expense
Income tax expense comprises both current and deferred taxes and is based on the accounting profit adjusted for differences in the
accounting and tax treatments of income and expenses (that is, taxable income). We recognise tax expense in profit or loss except when the
tax relates to items recognised directly in equity and other comprehensive income, in which case we recognise the tax directly in equity or
other comprehensive income respectively.
Current tax expense
Current tax is the tax we expect to pay on taxable income for the year, based on tax rates (and tax laws) which are enacted at the reporting
date. We recognise current tax as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax assets and liabilities
We account for deferred tax using the balance sheet method. Deferred tax arises because the accounting income is not always the same as
the taxable income. This creates temporary differences, which usually reverse over time. Until they reverse, we recognise a deferred tax asset,
or liability, on the balance sheet. We measure deferred taxes at the tax rates that we expect will apply to the period(s) when the asset is
realised, or the liability settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date.
We offset current and deferred tax assets and liabilities only to the extent that:
they relate to income taxes imposed by the same taxation authority;
there is a legal right and intention to settle on a net basis; and
it is allowed under the tax law of the relevant jurisdiction.
2024
$m
2023
$m
1,216
1,128
86
330
261
1,014
334
220
3,461
217
246
2
465
3,926
(672)
3,254
2024
$m
11
286
341
638
1
32
30
42
7
112
750
(672)
78
102
294
263
917
283
231
3,218
818
29
-
847
4,065
(717)
3,348
2023
$m
96
236
323
655
36
17
44
47
-
144
799
(717)
82
1. Prior period balances have been restated to reflect the adoption of amendments to AASB 112 Income Taxes related to right-of-use assets and lease liabilities that arise from a single transaction.
Key judgements and estimates
Judgement is required in determining provisions held in respect of uncertain tax positions. The Group estimates its tax liabilities based on its
understanding of the relevant law in each of the countries in which it operates and seeks independent advice where appropriate.
108
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110
Notes to the consolidated financial statements (continued)
6. Dividends
Ordinary share dividends
Dividends determined by the Company’s Board are recognised with a corresponding reduction of retained earnings on the dividend payment date.
Accordingly, the final dividend proposed for the current financial year is paid in the following financial year.
Dividends
Financial Year 2023
2022 final dividend paid1
2023 interim dividend paid1
Bonus option plan adjustment
Dividends paid during the year ended 30 September 2023
Cash
Dividend reinvestment plan4
Dividends paid during the year ended 30 September 2023
Financial Year 2024
2023 final dividend paid2
2024 interim dividend paid3
Bonus option plan adjustment
Dividends paid during the year ended 30 September 2024
Cash
Dividend reinvestment plan4
Dividends paid during the year ended 30 September 2024
% of total
Amount
per share
Total dividend
$m
74 cents
81 cents
94 cents
83 cents
88.3%
11.7%
89.8%
10.2%
2,213
2,433
(87)
4,559
4,027
532
4,559
2,825
2,496
(101)
5,220
4,685
535
5,220
Dividends proposed and to be paid after year-end
2024 final dividend (partially franked at 70% for Australian tax, New Zealand
imputation credit NZD 12 cents per share)
Payment date
Amount
per share
Total dividend
$m
20 December 2024
83 cents
2,472
1. 2022 final dividend and 2023 interim dividend were fully franked for Australian tax purposes (30% tax rate) and both carried New Zealand imputation credits of NZD 9 cents.
2. 2023 final dividend comprising 81 cents and an additional dividend of 13 cents was partially franked at 56% for Australian tax purposes (30% tax rate) and carried New Zealand imputation credits of
NZD 11 cents.
3. 2024 interim dividend was partially franked at 65% for Australian tax purposes (30% tax rate) and carried New Zealand imputation credits of NZD 12 cents.
4. Includes on-market share purchases for the DRP of $535 million (2023: $326 million).
Dividend reinvestment plan and bonus option plan
Eligible shareholders can elect to reinvest their dividend entitlement into ANZ ordinary shares under the Company’s dividend reinvestment plan (DRP).
Eligible shareholders can elect to forgo their dividend entitlement and instead receive ANZ ordinary shares under the Company’s bonus option plan (BOP).
For the proposed 2024 final dividend, ANZ intends that the DRP participation will be satisfied by the allocation of ANZ ordinary shares purchased on-
market and the BOP participation will be satisfied by an issue of new ANZ ordinary shares. There will be no discount applied to the DRP and BOP price.
Refer to Note 24 Shareholders’ equity for details of ANZ ordinary shares the Company purchased or issued in respect of the DRP and BOP.
110
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
111
111
6. Dividends (continued)
Dividend franking account
Australian franking credits available at 30% tax rate
New Zealand imputation credits available (which can be attached to our Australian
dividends but may only be used by New Zealand resident shareholders)
Currency
AUD
NZD
2024
$m
65
2023
$m
(137)
5,911
5,728
The above amounts represent the balances of the franking accounts as at the end of the financial year, adjusted for:
franking credits/debits that will arise from the settlement of the 2024 income tax position; and
franking credits/debits from the receipt/payment of dividends that have been recognised as tax receivables/payables as at the end of the financial
year.
Instalment tax payments on account of the 2024 and 2025 financial year, which will be made after 30 September 2024, will generate sufficient franking
credits to enable the proposed 2024 final dividend to be partially franked. The extent to which future dividends will be franked will depend on a number of
factors, including the level of profits generated by the Group that will be subject to tax in Australia.
Restrictions on the payment of dividends
The Company’s ability to pay dividends on ANZ ordinary shares is largely dependent on the receipt of broadly similar amounts in dividend from the ANZ
Bank Group, which in turn requires APRA’s prior written approval if:
the aggregate dividends exceed the ANZ Bank Group’s after tax earnings (in calculating those after tax earnings, we take into account any payments
we made on senior capital instruments) in the financial year to which they relate; or
the ANZ Bank Group’s Common Equity Tier 1 capital ratio falls within capital range buffers specified by APRA.
If the ANZ Bank Group fails to pay a dividend or distribution on its ANZ Capital Notes or ANZ Capital Securities on the scheduled payment date, it may
(subject to a number of exceptions) be restricted from resolving to pay or paying any dividend on its ordinary shares issued to the Company.
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112
Notes to the consolidated financial statements (continued)
7. Earnings per ordinary share
Earnings per ordinary share
Basic earnings per share
Diluted earnings per share
Reconciliation of earnings used in earnings per share calculations
Basic:
Profit for the year
Less: Profit attributable to non-controlling interests
Earnings used in calculating basic earnings per share
Diluted:
Earnings used in calculating basic earnings per share
Add: Interest on convertible subordinated debt
Earnings used in calculating diluted earnings per share
Reconciliation of WANOS used in earnings per share calculations1
WANOS used in calculating basic earnings per share
Add: Weighted average dilutive potential ordinary shares2
WANOS used in calculating diluted earnings per share
1. WANOS excludes the weighted average number of treasury shares held in ANZEST Pty Ltd of 5.3 million (2023: 4.1 million).
2. Dilutive potential ordinary shares include convertible subordinated debt and share-based payments (options, rights, and deferred shares).
2024
cents
217.9
215.1
2024
$m
6,570
35
6,535
6,535
420
6,955
2024
millions
2,998.4
235.6
3,234.0
2023
cents
237.1
227.4
2023
$m
7,134
28
7,106
7,106
332
7,438
2023
millions
2,997.2
273.3
3,270.5
112
ANZ 2024 Annual Report
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112
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
113
113
7. Earnings per ordinary share
Earnings per ordinary share
Basic earnings per share
Diluted earnings per share
Reconciliation of earnings used in earnings per share calculations
Basic:
Profit for the year
Less: Profit attributable to non-controlling interests
Earnings used in calculating basic earnings per share
Diluted:
Earnings used in calculating basic earnings per share
Add: Interest on convertible subordinated debt
Earnings used in calculating diluted earnings per share
Reconciliation of WANOS used in earnings per share calculations1
WANOS used in calculating basic earnings per share
Add: Weighted average dilutive potential ordinary shares2
WANOS used in calculating diluted earnings per share
1. WANOS excludes the weighted average number of treasury shares held in ANZEST Pty Ltd of 5.3 million (2023: 4.1 million).
2. Dilutive potential ordinary shares include convertible subordinated debt and share-based payments (options, rights, and deferred shares).
2024
cents
217.9
215.1
2024
$m
6,570
35
6,535
6,535
420
6,955
2024
millions
2,998.4
235.6
3,234.0
2023
cents
237.1
227.4
2023
$m
7,134
28
7,106
7,106
332
7,438
2023
millions
2,997.2
273.3
3,270.5
8. Segment reporting
Description of segments
The Group’s operating segments are presented on a basis that is consistent with the information provided internally to the Chief Executive Officer (CEO),
who is the chief operating decision maker. This reflects the way the Group’s businesses are managed, rather than the legal structure of the Group.
We measure the performance of operating segments on a cash profit basis. To calculate cash profit, we exclude items from profit after tax attributable to
shareholders. For 2024 and 2023, the adjustments relate to impacts of economic hedges and revenue and expense hedges which represent timing
differences that will reverse through earnings in the future. Transactions between divisions across segments within the Group are conducted on an arm’s-
length basis and where relevant disclosed as part of the income and expenses of these segments.
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank. Suncorp Bank provides
banking and related services to retail, commercial, small and medium enterprises and agribusiness customers in Australia. The transaction was undertaken
to accelerate the growth of the Group’s retail and commercial businesses while also improving the geographic balance of its business in Australia. The
2024 reported results include 2 months results for Suncorp Bank from the date of acquisition, presented as Suncorp Bank division below.
The presentation of divisional results has been impacted by the following changes during the period:
Accounting standards adoption - the Group adopted AASB 17 Insurance Contracts (AASB 17) on 1 October 2023. Although the overall profit
recognised in respect of insurance contracts will not change over the life of contracts, the timing of revenue recognition will change. The Group applied
AASB 17 effective from 1 October 2022 and restated prior period comparative information. This resulted in a decrease in opening retained earnings of
$37 million on 1 October 2022, a $8 million increase in profit after tax, a $22 million increase in total assets, and a $51 million increase in total liabilities
in the Australia Retail division.
Divisional results presentation - prior period divisional comparative information was restated to reflect a number of cost reallocations across the
divisions.
The reportable segments are divisions engaged in providing either different products or services or similar products and services in different geographical
areas. They are as follows:
Australia Retail
The Australia Retail division provides a full range of banking services to Australian consumers. This includes Home Loans, Deposits, Credit Cards and
Personal Loans. Products and services are provided via the branch network, home loan specialists, contact centres, a variety of self-service channels
(digital and internet banking, website, ATMs and phone banking) and third-party brokers.
Australia Commercial
The Australia Commercial division provides a full range of banking products and financial services, including asset financing, across the following customer
segments: SME Banking (small business owners and medium commercial customers), and Diversified & Specialist Businesses (large commercial
customers, and high net worth individuals and family groups).
Institutional
The Institutional division services global institutional and corporate customers, and governments across Australia, New Zealand and International (including
Papua New Guinea (PNG)) via the following business units:
Transaction Banking provides customers with working capital and liquidity solutions including documentary trade, supply chain financing, commodity
financing as well as cash management solutions, deposits, payments and clearing.
Corporate Finance provides customers with loan products, loan syndication, specialised loan structuring and execution, project and export finance,
debt structuring and acquisition finance, and sustainable finance solutions.
Markets provides customers with risk management services in foreign exchange, interest rates, credit, commodities, and debt capital markets in
addition to managing the Group's interest rate exposure and liquidity position.
New Zealand
The New Zealand division comprises the following business units:
Personal provides a full range of banking and wealth management services to consumer and private banking customers. We deliver our services via
our internet and app-based digital solutions and a network of branches, mortgage specialists, private bankers and contact centres.
Business & Agri (previously Business) provides a full range of banking services through our digital, branch and contact centre channels, and traditional
relationship banking and sophisticated financial solutions through dedicated managers. These cover privately owned small, medium and large
enterprises, the agricultural business segment, government and government-related entities.
Suncorp Bank
The Suncorp Bank division provides banking and related services to retail, commercial, small and medium enterprises and agribusiness customers in
Australia.
Pacific
The Pacific division provides products and services to retail and commercial customers (including multi-nationals) and to governments located in the
Pacific region, excluding PNG which forms part of the Institutional division.
Group Centre
Group Centre division provides support to the operating divisions, including technology, property, risk management, financial management, treasury,
strategy, marketing, human resources, corporate affairs, and shareholder functions. It also includes minority investments in Asia and interests in the ANZ
Non-Bank Group.
112
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114
114
8. Segment reporting (continued)
Operating segments
Year ended 30 September 2024
Net interest income
Net fee and commission income
Net income from insurance business
Other income1,2
Share of associates’ profit/(loss)
Other operating income
Operating income1,2
Operating expenses
Cash profit/(loss) before credit impairment
and income tax
Credit impairment (charge)/release
Cash profit/(loss) before income tax
Income tax (expense)/benefit1,2
Non-controlling interests
Cash profit/(loss)
Economic hedges1
Revenue and expense hedges2
Profit after tax attributable to shareholders
Includes non-cash items:
Share of associates’ profit/(loss)
Depreciation and amortisation
Equity-settled share-based payment expenses
Credit impairment (charge)/release
Financial position
Goodwill
Investments in associates
Total external assets
Total external liabilities
Notes to the consolidated financial statements (continued)
Australia
Retail
$m
Australia
Commercial
$m
Institutional
$m
New
Zealand
$m
Suncorp
Bank
$m
Pacific
$m
Group
Centre
$m
Group
Total
$m
5,223
531
122
11
-
664
5,887
3,164
300
-
42
-
342
3,506
3,741
3,143
251
123
424
16,069
740
-
2,408
-
3,148
6,889
399
-
-
-
399
3,542
6
-
-
-
6
257
(188)
14
-
77
-
91
214
(5)
-
(10)
105
90
514
1,985
122
2,528
105
4,740
20,809
(138)
(1,141)
(10,741)
(3,516)
(1,507)
(2,875)
(1,376)
2,371
1,999
4,014
2,166
69
(71)
2,300
(693)
-
(80)
1,919
(577)
-
10
(28)
4,024
2,138
(1,166)
(602)
-
-
(243)
(174)
52
-
1,607
1,342
2,858
1,536
(122)
-
(56)
(6)
(71)
-
(6)
(5)
(80)
-
-
(171)
(107)
(97)
10
(5)
(28)
-
(46)
-
(243)
76
8
84
(22)
(2)
60
-
(9)
(1)
8
Australia
Retail
$m
Australia
Commercial
$m
Institutional
$m
New
Zealand
$m
Suncorp
Bank3
$m
178
-
-
-
1,245
1,596
1,402
-
-
-
Pacific
$m
-
-
(627)
10,068
(2)
(629)
106
(33)
(556)
105
(532)
(27)
(2)
Group
Centre
$m
-
1,444
(406)
9,662
(2,902)
(35)
6,725
(264)
74
6,535
105
(927)
(141)
(406)
Group
Total
$m
4,421
1,444
335,356
65,456
574,998 127,032
87,185
3,162
35,926 1,229,115
180,801
122,029
460,053 120,203
81,610
3,686 190,105 1,158,487
1. The cash profit adjustment for economic hedges applies to the Institutional, New Zealand and Group Centre divisions with $368 million loss recognised in Other operating income and $104 million benefit
recognised in Income tax expense.
2. The cash profit adjustment for revenue and expense hedges applies to the Group Centre division with $106 million gain recognised in Other operating income and $32 million expense recognised in
Income tax expense.
3. Assets acquired and liabilities assumed are disclosed on a provisional basis. Refer to Note 36 Suncorp Bank acquisition for further information.
114
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
115
115
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Pacific
$m
123
19
-
66
-
85
208
Group
Centre
$m
329
(17)
-
(96)
221
108
437
Group
Total
$m
16,574
1,953
108
2,049
221
4,331
20,905
(145)
(1,083)
(10,139)
63
28
91
(18)
(2)
71
-
(10)
-
28
Pacific
$m
-
-
(646)
10,766
1
(245)
(645)
10,521
140
(26)
(531)
221
(562)
(20)
1
Group
Centre
$m
-
2,349
(3,080)
(28)
7,413
(217)
(90)
7,106
221
(923)
(105)
(245)
Group
Total
$m
3,056
2,349
3,391
61,126 1,105,643
3,862 167,796 1,035,626
8. Segment reporting (continued)
Operating segments (continued)
Year ended 30 September 2023
Net interest income
Net fee and commission income
Net income from insurance business
Other income1,2
Share of associates’ profit/(loss)
Other operating income
Operating income1,2
Operating expenses
Cash profit/(loss) before credit impairment
and income tax
Credit impairment (charge)/release
Cash profit/(loss) before income tax
Income tax (expense)/benefit1,2
Non-controlling interests
Cash profit/(loss)
Economic hedges1
Revenue and expense hedges2
Profit after tax attributable to shareholders
Includes non-cash items:
Share of associates’ profit/(loss)
Depreciation and amortisation
Equity-settled share-based payment expenses
Australia
Retail
$m
Australia
Commercial
$m
Institutional
$m
New
Zealand
$m
Suncorp
Bank
$m
5,709
546
108
16
-
670
6,379
(3,461)
3,224
322
-
43
-
365
3,589
(1,423)
4,040
3,149
685
-
2,009
-
2,694
6,734
398
-
11
-
409
3,558
(2,728)
(1,299)
2,918
2,166
4,006
2,259
(135)
2,783
(845)
-
(107)
2,059
(619)
-
80
(112)
4,086
2,147
(1,137)
(601)
-
-
1,938
1,440
2,949
1,546
Credit impairment (charge)/release
(135)
(107)
-
(77)
(6)
-
(5)
(2)
-
-
(164)
(105)
(73)
80
(4)
(112)
Financial position
Goodwill
Investments in associates
Total external assets
Total external liabilities
Australia
Retail
$m
Australia
Commercial
$m
Institutional
$m
New
Zealand
$m
Suncorp
Bank
$m
178
-
-
-
1,261
1,617
-
-
315,207
61,916
538,825 125,178
168,926
119,341
452,777 122,924
-
-
-
-
1. The cash profit adjustment for economic hedges applies to the Institutional, New Zealand and Group Centre divisions with $305 million loss recognised in Other operating income and $88 million benefit
recognised in Income tax expense.
2. The cash profit adjustment for economic hedges applies to the Group Centre division with $129 million loss recognised in Other operating income and $39 million benefit recognised in Income tax
expense.
115
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116
116
Notes to the consolidated financial statements (continued)
8. Segment reporting (continued)
Segment income by products and services
The primary sources of our external income across all divisions are interest income and other operating income, which includes net fee and commission
income, net foreign exchange earnings and other financial instruments income. The Australia Retail, Australia Commercial, New Zealand, Suncorp Bank,
and Pacific divisions derive income from products and services in retail and commercial banking. The Institutional division derives its income from
institutional products and market services. No single customer amounts to greater than 10% of the Group’s income.
Geographical information
The reportable segments operate across three geographical regions as follows:
Institutional division - all three geographical regions
Australia Retail division - Australia
Australia Commercial division - Australia
New Zealand division - New Zealand
Suncorp Bank division - Australia
Pacific division – Rest of World
Group Centre division - all three geographical regions
The Rest of World geography includes Asia, Pacific, Europe and the Americas.
The following table sets out total operating income earned and assets to be recovered in more than one year based on the geographical regions in which
the Group operates.
Australia
2024
$m
2023
$m
New Zealand
2024
$m
2023
$m
Rest of World
2024
$m
2023
$m
Total
2024
$m
2023
$m
Total operating income
Assets to be recovered in more than one year1
12,816
12,686
4,404
4,459
3,327
3,326
20,547
20,471
497,441
406,571
121,455
119,278
25,444
28,877
644,340
554,726
1. Represents Net loans and advances based on the contractual maturity.
116
ANZ 2024 Annual Report
ANZ 2024 Annual Report
ANZ 2024 Annual Report
116
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
117
117
8. Segment reporting (continued)
Segment income by products and services
Financial assets
Outlined below is a description of how we classify and measure financial assets as they apply to the note disclosures that follow.
The primary sources of our external income across all divisions are interest income and other operating income, which includes net fee and commission
income, net foreign exchange earnings and other financial instruments income. The Australia Retail, Australia Commercial, New Zealand, Suncorp Bank,
and Pacific divisions derive income from products and services in retail and commercial banking. The Institutional division derives its income from
institutional products and market services. No single customer amounts to greater than 10% of the Group’s income.
Geographical information
The reportable segments operate across three geographical regions as follows:
Australia Retail division - Australia
Australia Commercial division - Australia
Institutional division - all three geographical regions
New Zealand division - New Zealand
Suncorp Bank division - Australia
Pacific division – Rest of World
Group Centre division - all three geographical regions
The Rest of World geography includes Asia, Pacific, Europe and the Americas.
The following table sets out total operating income earned and assets to be recovered in more than one year based on the geographical regions in which
the Group operates.
Australia
New Zealand
Rest of World
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
Total
2024
$m
2023
$m
Total operating income
12,816
12,686
4,404
4,459
3,327
3,326
20,547
20,471
Assets to be recovered in more than one year1
497,441
406,571
121,455
119,278
25,444
28,877
644,340
554,726
1. Represents Net loans and advances based on the contractual maturity.
Classification and measurement
Financial assets - general
There are three measurement classifications for financial assets under AASB 9 Financial Instruments (AASB 9): amortised cost, FVTPL and
FVOCI. Financial assets are classified into these measurement classifications on the basis of two criteria:
the business model within which the financial asset is managed; and
the contractual cash flow characteristics of the financial asset (specifically whether the contractual cash flows represent solely payments of
principal and interest).
The resultant financial asset classifications are as follows:
Amortised cost: Financial assets with contractual cash flows that comprise solely payments of principal and interest and which are held in a
business model whose objective is to collect their cash flows;
FVOCI: Financial assets with contractual cash flows that comprise solely payments of principal and interest and which are held in a business
model whose objective is to collect their cash flows or to sell the assets; and
FVTPL: Any other financial assets not falling into the categories above are measured at FVTPL.
Fair value option for financial assets
A financial asset may be irrevocably designated on initial recognition:
at FVTPL when the designation eliminates or significantly reduces an accounting mismatch that would otherwise arise; or
at FVOCI for investments in equity securities, where that instrument is neither held for trading nor contingent consideration recognised by
an acquirer in a business combination.
9. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and other balances, as outlined below, that are convertible into cash with an insignificant risk of
changes in value and with remaining maturities of three months or less, including reverse repurchase agreements.
Coins, notes and cash at bank
Securities purchased under agreements to resell in less than 3 months
Balances with central banks
Settlement balances owed to ANZ within 3 months
Cash and cash equivalents
2024
$m
1,198
44,125
69,024
36,620
150,967
2023
$m
1,070
31,711
105,689
29,684
168,154
116
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118
118
Notes to the consolidated financial statements (continued)
10. Trading assets
23
6,399
4,057
2024
35,276
164
4,881
3,885
2023
28,074
Government debt
securities and notes
Corporate and financial
institution securities
Commodities
Other securities
Government debt securities and notes
Corporate and financial institution securities
Commodities
Other securities
Total
2024
$m
35,276
4,057
6,399
23
45,755
2023
$m
28,074
3,885
4,881
164
37,004
Recognition and measurement
Trading assets are financial instruments or other assets we either:
Acquire principally for the purpose of selling in the short-term; or
Hold as part of a portfolio we manage for short-term profit making.
Trading assets include commodity inventories measured at fair value less cost to sell in accordance with the broker trader exemption under
AASB 102 Inventories.
We recognise purchases and sales of trading assets on trade date:
Initially, we measure them at fair value; and
Subsequently, we measure them in the Balance Sheet at their fair value with any change in fair value recognised in profit or loss.
Assets disclosed as Trading assets are subject to the general classification and measurement policy for Financial Assets outlined at the
commencement of the Group’s financial assets disclosures on page 117.
Key judgements and estimates
Judgement is required when applying the valuation techniques used to determine the fair value of trading assets not valued using quoted
market prices. Refer to Note 19 Fair value of financial assets and financial liabilities for further details.
118
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118
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
119
119
10. Trading assets
23
6,399
4,057
164
4,881
3,885
2024
35,276
2023
28,074
Government debt
securities and notes
Corporate and financial
institution securities
Commodities
Other securities
Government debt securities and notes
Corporate and financial institution securities
Commodities
Other securities
Total
Recognition and measurement
Trading assets are financial instruments or other assets we either:
Acquire principally for the purpose of selling in the short-term; or
Hold as part of a portfolio we manage for short-term profit making.
AASB 102 Inventories.
We recognise purchases and sales of trading assets on trade date:
Initially, we measure them at fair value; and
2024
$m
35,276
4,057
6,399
23
45,755
2023
$m
28,074
3,885
4,881
164
37,004
11. Derivative financial instruments
Fair value
Derivative financial instruments - held for trading
Derivative financial instruments - designated in hedging relationships
Derivative financial instruments
Features
Derivative financial instruments are contracts:
Assets
2024
$m
53,889
481
54,370
Liabilities
2024
$m
(54,798)
(456)
(55,254)
Assets
2023
$m
60,059
347
60,406
Liabilities
2023
$m
(57,210)
(272)
(57,482)
Whose value is derived from an underlying price index (or other variable) defined in the contract - sometimes the value is derived from more than one
variable;
That require little or no initial net investment; and
That are settled at a future date.
Movements in the price of the underlying variables, which cause the value of the contract to fluctuate, are reflected in the fair value of the derivative.
Purpose
The Group’s derivative financial instruments have been categorised as follows:
Trading
Derivatives held in order to:
meet customer needs for managing their own risks.
manage risks in the Group that are not in a designated hedge accounting relationship (some elements of balance
sheet management).
undertake market making and positioning activities to generate profits from short-term fluctuations in prices or margins.
Designated in Hedging
Relationships
Derivatives designated into hedge accounting relationships in order to minimise profit or loss volatility by matching
movements in underlying positions relating to:
hedges of the Group’s exposures to interest rate risk and currency risk.
hedges of other exposures relating to non-trading positions.
Trading assets include commodity inventories measured at fair value less cost to sell in accordance with the broker trader exemption under
Types
The Group offers or uses four different types of derivative financial instruments:
Subsequently, we measure them in the Balance Sheet at their fair value with any change in fair value recognised in profit or loss.
Assets disclosed as Trading assets are subject to the general classification and measurement policy for Financial Assets outlined at the
commencement of the Group’s financial assets disclosures on page 117.
Key judgements and estimates
Judgement is required when applying the valuation techniques used to determine the fair value of trading assets not valued using quoted
market prices. Refer to Note 19 Fair value of financial assets and financial liabilities for further details.
Forwards
Futures
Swaps
Options
A contract documenting the rate of interest, or the currency exchange rate, to be paid or received on a notional principal
amount at a future date.
An exchange traded contract in which the parties agree to buy or sell an asset in the future for a price agreed on the
transaction date, with a net settlement in cash paid on the future date without physical delivery of the asset.
A contract in which two parties exchange one series of cash flows for another.
A contract in which the buyer of the contract has the right - but not the obligation - to buy (known as a ‘call option’) or to
sell (known as a ‘put option’) an asset or instrument at a set price on a future date. The seller has the corresponding
obligation to fulfil the transaction to sell or buy the asset or instrument if the buyer exercises the option.
118
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120
120
Notes to the consolidated financial statements (continued)
11. Derivative financial instruments (continued)
Risks managed
The Group offers and uses the instruments described above to manage fluctuations in the following:
Foreign Exchange
Currencies at current or determined rates of exchange.
Interest Rate
Fixed or variable interest rates applying to money lent, deposited or borrowed.
Commodity
Soft commodities (that is, agricultural products such as wheat, coffee, cocoa and sugar) and hard commodities (that is,
mined products such as gold, oil and gas).
Credit
Risk of default by customers or third parties.
The Group uses a number of central clearing counterparties and exchanges to settle derivative transactions. Different arrangements for posting of
collateral exist with these exchanges:
some transactions are subject to clearing arrangements which result in separate recognition of collateral assets and liabilities, with the carrying values
of the associated derivative assets and liabilities held at their fair value.
other transactions, are legally settled by the payment or receipt of collateral which reduces the carrying values of the related derivative instruments by
the amount paid or received.
Derivative financial instruments – held for trading
The majority of the Group’s derivative financial instruments are held for trading. The fair value of derivative financial instruments held for trading is:
Fair value
Interest rate contracts
Forward rate agreements
Futures contracts
Swap agreements
Options
Total
Foreign exchange contracts
Spot and forward contracts
Swap agreements
Options
Total
Commodity and other contracts
Credit default swaps
Derivative financial instruments - held for trading1
Assets
2024
$m
1
80
8,258
1,263
9,602
20,008
21,961
779
42,748
1,537
2
Liabilities
2024
$m
(1)
(109)
(9,527)
(1,371)
(11,008)
(21,445)
(19,612)
(835)
(41,892)
(1,896)
(2)
53,889
(54,798)
Assets
2023
$m
-
294
10,815
1,805
12,914
21,399
23,230
690
45,319
1,812
14
60,059
Liabilities
2023
$m
-
(37)
(15,194)
(2,023)
(17,254)
(19,580)
(18,172)
(1,120)
(38,872)
(1,067)
(17)
(57,210)
1. Includes derivatives held for balance sheet management which are not designated into accounting hedge relationships.
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120
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
121
121
11. Derivative financial instruments (continued)
Risks managed
The Group offers and uses the instruments described above to manage fluctuations in the following:
Foreign Exchange
Currencies at current or determined rates of exchange.
Interest Rate
Fixed or variable interest rates applying to money lent, deposited or borrowed.
Commodity
Soft commodities (that is, agricultural products such as wheat, coffee, cocoa and sugar) and hard commodities (that is,
mined products such as gold, oil and gas).
Credit
Risk of default by customers or third parties.
The Group uses a number of central clearing counterparties and exchanges to settle derivative transactions. Different arrangements for posting of
collateral exist with these exchanges:
some transactions are subject to clearing arrangements which result in separate recognition of collateral assets and liabilities, with the carrying values
of the associated derivative assets and liabilities held at their fair value.
other transactions, are legally settled by the payment or receipt of collateral which reduces the carrying values of the related derivative instruments by
the amount paid or received.
Derivative financial instruments – held for trading
The majority of the Group’s derivative financial instruments are held for trading. The fair value of derivative financial instruments held for trading is:
Fair value
Interest rate contracts
Forward rate agreements
Futures contracts
Swap agreements
Options
Total
Options
Total
Foreign exchange contracts
Spot and forward contracts
Swap agreements
Commodity and other contracts
Credit default swaps
Assets
2024
$m
1
80
8,258
1,263
9,602
20,008
21,961
779
42,748
1,537
2
Liabilities
2024
$m
(1)
(109)
(9,527)
(1,371)
(11,008)
(21,445)
(19,612)
(835)
(41,892)
(1,896)
(2)
Assets
2023
$m
-
294
10,815
1,805
12,914
21,399
23,230
690
45,319
1,812
14
60,059
Liabilities
2023
$m
-
(37)
(15,194)
(2,023)
(17,254)
(19,580)
(18,172)
(1,120)
(38,872)
(1,067)
(17)
(57,210)
Derivative financial instruments - held for trading1
53,889
(54,798)
1. Includes derivatives held for balance sheet management which are not designated into accounting hedge relationships.
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships
Under the accounting policy choice provided by AASB 9, the Group has continued to apply the hedge accounting requirements of AASB 139 Financial
Instruments: Recognition and Measurement (AASB 139).
There are three types of hedge accounting relationships the Group utilises:
Fair value hedge
Cash flow hedge
Net investment hedge
Objective of this
hedging arrangement
To hedge our exposure to changes to
the fair value of a recognised asset or
liability or unrecognised firm
commitment caused by interest rate or
foreign currency movements.
To hedge our exposure to variability in
cash flows of a recognised asset or
liability, a firm commitment or a highly
probable forecast transaction caused
by interest rate, foreign currency and
other price movements.
To hedge our exposure to exchange
rate differences arising from the
translation of our foreign operations
from their functional currency to
Australian dollars.
Recognition of
effective hedge
portion
The following are recognised in profit or
loss at the same time:
all changes in the fair value of the
underlying item relating to the
hedged risk; and
the change in the fair value of the
derivatives.
We recognise the effective portion of
changes in the fair value of derivatives
designated as a cash flow hedge in the
cash flow hedge reserve.
We recognise the effective portion of
changes in the fair value of the hedging
instrument in the foreign currency
translation reserve (FCTR).
Recognition of
ineffective hedge
portion
If a hedging
instrument expires, or
is sold, terminated, or
exercised; or no
longer qualifies for
hedge accounting
Recognised immediately in Other operating income.
When we recognise the hedged item in
profit or loss, we recognise the related
unamortised fair value hedge
adjustment in profit or loss. This may
occur over time if the hedged item is
amortised to profit or loss as part of the
effective yield over the period to
maturity.
Only when we recognise the hedged
item in profit or loss is the amount
previously deferred in the cash flow
hedge reserve transferred to profit
or loss.
The amount we defer in the foreign
currency translation reserve remains in
equity and is transferred to profit or
loss only when we dispose of, or
partially dispose of, the foreign
operation.
Hedged item sold or
repaid
We recognise the unamortised fair
value hedge adjustment immediately in
profit or loss.
Amounts accumulated in equity are
transferred immediately to profit or
loss.
The gain or loss, or applicable
proportion, we have recognised in
equity is transferred to profit or loss on
disposal or partial disposal of a foreign
operation.
120
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122
122
Notes to the consolidated financial statements (continued)
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships (continued)
The fair value of derivative financial instruments designated in hedging relationships is:
Fair value hedges
Foreign exchange spot and forward contracts
Interest rate swap agreements
Interest rate futures contracts
Cash flow hedges
Interest rate swap agreements
Foreign exchange swap agreements
Foreign exchange spot and forward contracts
Net investment hedges
Foreign exchange spot and forward contracts
Derivative financial instruments - designated in
hedging relationships
Nominal
amount
$m
571
175,849
3,151
154,968
654
81
92
335,366
2024
2023
Assets
$m
Liabilities
$m
Nominal
amount
$m
Assets
$m
Liabilities
$m
14
226
11
200
26
4
-
481
-
607
(253)
126,881
-
11,778
(196)
122,704
(7)
-
-
683
-
47
5
32
243
17
50
-
-
-
(195)
(9)
(48)
(19)
-
(1)
(456)
262,700
347
(272)
122
ANZ 2024 Annual Report
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122
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
123
123
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships (continued)
The fair value of derivative financial instruments designated in hedging relationships is:
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships (continued)
The maturity profile of the nominal amounts of our hedging instruments held is:
2024
2023
Assets
$m
Liabilities
$m
Assets
$m
Liabilities
$m
Nominal amount
As at 30 September 2024
Fair value hedges
Average
Rate
Less than 3
months
$m
3 to 12
months
$m
1 to 5
years
$m
After
5 years
$m
Total
$m
Interest rate
Interest rate
Foreign exchange
HKD/AUD FX rate
2.94%
5.26
10,202
571
17,387
86,096
65,315
179,000
-
-
-
571
(253)
126,881
Cash flow hedges
Interest rate
Interest rate
3.11%
20,417
42,091
91,589
Foreign exchange1
Net investment hedges
AUD/USD FX rate
USD/EUR FX rate
Foreign exchange
NZD/AUD FX rate
As at 30 September 2023
Fair value hedges
Interest rate
Interest rate
Foreign exchange
HKD/AUD FX rate
Cash flow hedges
Interest rate
Interest rate
Foreign exchange1
Net investment hedges
AUD/USD FX rate
USD/EUR FX rate
0.74
0.91
1.09
2.38%
5.02
2.27%
0.74
0.91
Foreign exchange
NZD/AUD FX rate
1.09
20
-
61
92
-
-
871
654
154,968
735
-
92
2,314
607
10,533
79,350
46,462
138,659
-
-
-
607
7,573
37,630
76,359
1,142
122,704
-
-
-
47
-
-
683
683
-
47
Fair value hedges
Foreign exchange spot and forward contracts
Interest rate swap agreements
Interest rate futures contracts
Cash flow hedges
Interest rate swap agreements
Foreign exchange swap agreements
Foreign exchange spot and forward contracts
Net investment hedges
Foreign exchange spot and forward contracts
Derivative financial instruments - designated in
hedging relationships
Nominal
amount
$m
571
175,849
3,151
154,968
654
81
92
14
226
11
200
26
4
-
481
Nominal
amount
$m
607
11,778
683
-
47
-
-
-
-
(7)
(196)
122,704
5
32
243
17
50
-
-
-
(195)
(9)
(48)
(19)
-
(1)
335,366
(456)
262,700
347
(272)
1. Hedges of foreign exchange risk cover multiple currency pairs. The table reflects the larger currency pairs only.
122
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124
Notes to the consolidated financial statements (continued)
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships (continued)
The impacts of ineffectiveness from our designated hedge relationships by type of hedge relationship and type of risk being hedged are:
As at 30 September 2024
Fair value hedges1
Interest rate
Foreign exchange
Cash flow hedges1
Interest rate
Foreign exchange
Net investment hedges1
Foreign exchange
As at 30 September 2023
Fair value hedges1
Interest rate
Foreign exchange
Cash flow hedges1
Interest rate
Foreign exchange
Net investment hedges1
Foreign exchange
Ineffectiveness
Change in value
of hedging
instrument2
$m
Change in value
of hedged item
$m
Hedge ineffectiveness
recognised in profit or
loss3
$m
Amount reclassified
from the cash flow
hedge reserve or FCTR
to profit or loss4
$m
(2,922)
36
2,928
(36)
2,175
(2,074)
(3)
9
(846)
(4)
280
-
(39)
3
(9)
870
4
(239)
-
39
6
-
101
-
-
24
-
41
-
-
-
-
(2)
-
-
-
-
(13)
9
79
1. All hedging instruments are classified as derivative financial instruments.
2. Changes in value of hedging instruments is before any adjustments for Settle to Market clearing arrangements.
3. Recognised in Other operating income.
4. Recognised in Net interest income and Other operating income.
124
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
125
125
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships (continued)
The hedged items in relation to the Group’s fair value hedges are:
Balance sheet
presentation
Hedged risk
Carrying amount
Assets
$m
Liabilities
$m
Accumulated fair value
hedge adjustments on the
hedged item
Assets
$m
Liabilities
$m
As at 30 September 2024
Fixed rate loans and advances
Net loans and advances
Interest rate
1,546
-
Fixed rate debt issuance
Fixed rate investment securities at FVOCI1
Equity securities at FVOCI1
Debt issuances
Interest rate
-
(73,805)
Investment securities
Interest rate
Investment securities
Foreign exchange
97,838
571
-
-
Total
As at 30 September 2023
99,955
(73,805)
(30)
-
625
43
638
-
1,284
-
-
1,284
Fixed rate loans and advances
Net loans and advances
Interest rate
3,472
-
(139)
-
Fixed rate debt issuance
Fixed rate investment securities at FVOCI1
Equity securities at FVOCI1
Debt issuances
Interest rate
-
(66,190)
-
4,163
Investment securities
Interest rate
Investment securities
Foreign exchange
61,082
607
-
-
(5,121)
79
-
-
Total
65,161
(66,190)
(5,181)
4,163
1. The carrying amount of debt and equity instruments at FVOCI does not include the fair value hedge adjustment. The fair value hedge adjustment is included in other comprehensive income.
The cumulative amount of fair value hedge adjustments relating to ceased hedge relationships remaining on the Balance Sheet is $3 million
(2023: -$13 million).
125
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126
126
Notes to the consolidated financial statements (continued)
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships (continued)
The hedged items in relation to the Group’s cash flow and net investment hedges are:
As at 30 September 2024
Cash flow hedges
Floating rate loans and advances
Floating rate customer deposits
Foreign currency debt issuances
Highly probable forecast transactions
Net investment hedges
Foreign operations
As at 30 September 2023
Cash flow hedges
Floating rate loans and advances
Floating rate customer deposits
Foreign currency debt issuances
Highly probable forecast transactions
Net investment hedges
Foreign operations
Hedged risk
Interest rate
Interest rate
Foreign exchange
Foreign exchange
Foreign exchange
Interest rate
Interest rate
Foreign exchange
Foreign exchange
Foreign exchange
Cash flow
hedge reserve
Foreign currency
translation reserve
Continuing
hedges
$m
Discontinued
hedges
$m
Continuing
hedges
$m
Discontinued
hedges
$m
(575)
(31)
(7)
4
-
(3,482)
794
-
-
-
-
-
-
-
-
11
(1)
-
-
-
-
-
-
-
-
-
-
-
22
20
-
-
-
-
-
-
-
-
12
49
126
ANZ 2024 Annual Report
ANZ 2024 Annual Report
ANZ 2024 Annual Report
126
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
127
127
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships (continued)
The hedged items in relation to the Group’s cash flow and net investment hedges are:
11. Derivative financial instruments (continued)
Derivative financial instruments – designated in hedging relationships (continued)
The table below details the reconciliation of the Group’s cash flow hedge reserve by risk type:
As at 30 September 2024
Cash flow hedges
Floating rate loans and advances
Floating rate customer deposits
Foreign currency debt issuances
Highly probable forecast transactions
Net investment hedges
Foreign operations
As at 30 September 2023
Cash flow hedges
Floating rate loans and advances
Floating rate customer deposits
Foreign currency debt issuances
Highly probable forecast transactions
Net investment hedges
Foreign operations
Hedged risk
Interest rate
Interest rate
Foreign exchange
Foreign exchange
Foreign exchange
Interest rate
Interest rate
Foreign exchange
Foreign exchange
Foreign exchange
Cash flow
hedge reserve
Foreign currency
translation reserve
Continuing
Discontinued
Continuing
Discontinued
hedges
$m
hedges
$m
hedges
$m
hedges
$m
(575)
(31)
(7)
4
-
-
-
-
-
-
-
-
-
-
-
-
(3,482)
794
11
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
49
Balance at 1 October 2022
Fair value gains/(losses)
Transferred to profit or loss
Income taxes and others
Balance at 30 September 2023
Fair value gains/(losses)
Transferred to profit or loss
Income taxes and others
22
20
Balance at 30 September 2024
Interest rate
$m
Foreign
currency
$m
(2,028)
239
(13)
(69)
(1,871)
2,074
(2)
(620)
(419)
(8)
-
9
(2)
(1)
(3)
-
1
(3)
Total
$m
(2,036)
239
(4)
(71)
(1,872)
2,071
(2)
(619)
(422)
Hedges of net investments in a foreign operation resulted in a $9 million increase in FCTR during the year (2023: $40 million increase).
126
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128
128
Notes to the consolidated financial statements (continued)
11. Derivative financial instruments (continued)
Recognition and measurement
Recognition
Initially and at each reporting date, we recognise all derivatives at fair value. If the fair value of a derivative is
positive, then we carry it as an asset, but if its value is negative, then we carry it as a liability.
Valuation adjustments are integral in determining the fair value of derivatives. This includes:
a credit valuation adjustment to reflect the counterparty risk and/or event of default; and
a funding valuation adjustment to account for funding costs and benefits in the derivatives portfolio.
Derecognition of
assets and liabilities
We remove derivative assets from our Balance Sheet when the contracts expire or we have transferred
substantially all the risks and rewards of ownership. We remove derivative liabilities from our Balance Sheet
when the Group’s contractual obligations are discharged, cancelled or expired.
With respect to derivatives cleared through a central clearing counterparty or exchange, derivative assets or
liabilities may be derecognised in accordance with the principle above when collateral is settled, depending
on the legal arrangements in place for each instrument.
Impact on the
Income Statement
The recognition of gains or losses on derivative financial instruments depends on whether the derivative is
held for trading or is designated in a hedge accounting relationship. For derivative financial instruments held
for trading, gains or losses from changes in the fair value are recognised in profit or loss.
For an instrument designated in a hedge accounting relationship, the recognition of gains or losses depends
on the nature of the item being hedged. Refer to the table on page 121 for details of the recognition
approach applied for each type of hedge accounting relationship.
Sources of hedge accounting ineffectiveness may arise from differences in the interest rate reference rate,
margins, or rate set differences and differences in discounting between the hedged items and the hedging
instruments.
Hedge effectiveness
To qualify for hedge accounting under AASB 139, a hedge relationship is expected to be highly effective. A
hedge relationship is highly effective only if the following conditions are met:
the hedge is expected to be highly effective in achieving offsetting changes in fair value or cash flows
attributable to the hedged risk during the period for which the hedge is designated (prospective
effectiveness); and
the actual results of the hedge are within the range of 80-125% (retrospective effectiveness).
The Group monitors hedge effectiveness on a regular basis but at a minimum at each reporting date.
Key judgements and estimates
Judgement is required when we select the valuation techniques used to determine the fair value of derivatives, particularly the selection of
valuation inputs that are not readily observable, and the application of valuation adjustments to certain derivatives. Refer to Note 19 Fair value
of financial assets and financial liabilities for further details.
128
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128
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
129
129
11. Derivative financial instruments (continued)
12. Investment securities
3,354
8,705
1,351
3,826
7,607
1,393
Recognition
Initially and at each reporting date, we recognise all derivatives at fair value. If the fair value of a derivative is
2024
127,139
2023
84,603
Government securities
Corporate and financial
institution securities
Other securities
Equity securities
2024
$m
2023
$m
131,944
1,351
88,271
1,393
7,091
7,752
163
140,549
13
97,429
3 to 12
months 1 to 5 years After 5 years
$m
$m
$m
11,048
1,326
386
-
12,760
10,233
1,218
591
-
12,042
52,228
6,566
578
-
59,372
29,482
5,973
602
-
36,057
54,039
328
1,900
-
56,267
36,081
58
2,016
-
38,155
No
maturity
$m
-
-
-
1,351
1,351
-
-
-
1,393
1,393
Total
$m
127,139
8,705
3,354
1,351
140,549
84,603
7,607
3,826
1,393
97,429
Investment securities measured at FVOCI
Debt securities
Equity securities
Investment securities measured at amortised cost
Debt securities
Investment securities measured at FVTPL
Debt securities
Total
The maturity profile of investment securities is as follows:
As at 30 September 2024
Government securities
Corporate and financial institution securities
Other securities
Equity securities
Total
As at 30 September 2023
Government securities
Corporate and financial institution securities
Other securities
Equity securities
Total
Less than 3
months
$m
9,824
485
490
-
10,799
8,807
358
617
-
9,782
Recognition and measurement
positive, then we carry it as an asset, but if its value is negative, then we carry it as a liability.
Valuation adjustments are integral in determining the fair value of derivatives. This includes:
a credit valuation adjustment to reflect the counterparty risk and/or event of default; and
a funding valuation adjustment to account for funding costs and benefits in the derivatives portfolio.
Derecognition of
assets and liabilities
We remove derivative assets from our Balance Sheet when the contracts expire or we have transferred
substantially all the risks and rewards of ownership. We remove derivative liabilities from our Balance Sheet
when the Group’s contractual obligations are discharged, cancelled or expired.
With respect to derivatives cleared through a central clearing counterparty or exchange, derivative assets or
liabilities may be derecognised in accordance with the principle above when collateral is settled, depending
on the legal arrangements in place for each instrument.
Impact on the
Income Statement
The recognition of gains or losses on derivative financial instruments depends on whether the derivative is
held for trading or is designated in a hedge accounting relationship. For derivative financial instruments held
for trading, gains or losses from changes in the fair value are recognised in profit or loss.
For an instrument designated in a hedge accounting relationship, the recognition of gains or losses depends
on the nature of the item being hedged. Refer to the table on page 121 for details of the recognition
approach applied for each type of hedge accounting relationship.
Sources of hedge accounting ineffectiveness may arise from differences in the interest rate reference rate,
margins, or rate set differences and differences in discounting between the hedged items and the hedging
instruments.
Hedge effectiveness
To qualify for hedge accounting under AASB 139, a hedge relationship is expected to be highly effective. A
hedge relationship is highly effective only if the following conditions are met:
the hedge is expected to be highly effective in achieving offsetting changes in fair value or cash flows
attributable to the hedged risk during the period for which the hedge is designated (prospective
effectiveness); and
the actual results of the hedge are within the range of 80-125% (retrospective effectiveness).
The Group monitors hedge effectiveness on a regular basis but at a minimum at each reporting date.
Key judgements and estimates
Judgement is required when we select the valuation techniques used to determine the fair value of derivatives, particularly the selection of
valuation inputs that are not readily observable, and the application of valuation adjustments to certain derivatives. Refer to Note 19 Fair value
of financial assets and financial liabilities for further details.
During the year, the Group recognised a net gain of $8 million (2023: $9 million) in Other operating income from the recycling of gains/losses previously
recognised in Other comprehensive income in respect of debt securities at FVOCI.
128
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130
Notes to the consolidated financial statements (continued)
12. Investment securities (continued)
Recognition and measurement
Investment securities are those financial assets in security form (that is, transferable debt or equity instruments) that are not held for trading
purposes. By way of exception, bills of exchange (a form of security/transferable instrument) which are used to facilitate the Group’s customer
lending activities are classified as Loans and advances (rather than Investment securities) to better reflect the substance of the arrangement.
Equity investments not held for trading purposes may be designated at FVOCI on an instrument-by-instrument basis. If this election is made,
gains or losses are not reclassified from Other comprehensive income to profit or loss on disposal of the investment. However, gains or losses
may be reclassified within equity.
Assets disclosed as Investment securities are subject to the general classification and measurement policy for financial assets outlined at the
commencement of the Group’s financial asset disclosures on page 117. Additionally, expected credit losses associated with ‘Investment
securities - debt securities at amortised cost’ and ‘Investment securities - debt securities at FVOCI’ are recognised and measured in
accordance with the accounting policy outlined in Note 14 Allowance for expected credit losses. For ‘Investment securities - debt securities at
FVOCI’, the allowance for Expected Credit Loss (ECL) is recognised in the FVOCI reserve in equity with a corresponding charge to profit or loss.
Key judgements and estimates
Judgement is required when we select valuation techniques used to determine the fair value of assets not valued using quoted market prices,
particularly the selection of valuation inputs that are not readily observable. Refer to Note 19 Fair value of financial assets and financial liabilities
for further details.
130
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130
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
131
131
12. Investment securities (continued)
Recognition and measurement
Investment securities are those financial assets in security form (that is, transferable debt or equity instruments) that are not held for trading
purposes. By way of exception, bills of exchange (a form of security/transferable instrument) which are used to facilitate the Group’s customer
lending activities are classified as Loans and advances (rather than Investment securities) to better reflect the substance of the arrangement.
Equity investments not held for trading purposes may be designated at FVOCI on an instrument-by-instrument basis. If this election is made,
gains or losses are not reclassified from Other comprehensive income to profit or loss on disposal of the investment. However, gains or losses
may be reclassified within equity.
Assets disclosed as Investment securities are subject to the general classification and measurement policy for financial assets outlined at the
commencement of the Group’s financial asset disclosures on page 117. Additionally, expected credit losses associated with ‘Investment
securities - debt securities at amortised cost’ and ‘Investment securities - debt securities at FVOCI’ are recognised and measured in
accordance with the accounting policy outlined in Note 14 Allowance for expected credit losses. For ‘Investment securities - debt securities at
FVOCI’, the allowance for Expected Credit Loss (ECL) is recognised in the FVOCI reserve in equity with a corresponding charge to profit or loss.
Key judgements and estimates
Judgement is required when we select valuation techniques used to determine the fair value of assets not valued using quoted market prices,
particularly the selection of valuation inputs that are not readily observable. Refer to Note 19 Fair value of financial assets and financial liabilities
for further details.
13. Net loans and advances
The following table provides details of Net loans and advances:
Overdrafts
Credit cards
Commercial bills
Term loans – housing
Term loans – non-housing
Other
Subtotal
Unearned income1
Capitalised brokerage and other origination costs1
Gross loans and advances
Allowance for expected credit losses (refer to Note 14)
Net loans and advances
Residual contractual maturity:
Within one year
More than one year
Net loans and advances
Carried on Balance Sheet at:
Amortised cost
Fair value through profit or loss
Net loans and advances
1. Amortised over the expected life of the loan.
Recognition and measurement
2024
$m
6,109
6,713
4,401
484,554
300,634
924
803,335
(515)
4,237
807,057
(3,675)
803,382
159,042
644,340
803,382
778,596
24,786
803,382
2023
$m
5,552
6,805
4,682
404,491
284,808
1,292
707,630
(515)
3,475
710,590
(3,546)
707,044
152,318
554,726
707,044
685,156
21,888
707,044
Loans and advances are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are
facilities the Group provides directly to customers or through third party channels.
Loans and advances are initially recognised at fair value plus transaction costs directly attributable to the issue of the loan or advance, which
are primarily brokerage and other origination costs which we amortise over the estimated life of the loan. Subsequently, we then measure
loans and advances at amortised cost using the effective interest rate method, net of any allowance for ECL, or at fair value when they are
specifically designated on initial recognition as FVTPL, are classified as held for sale or when held for trading. Refer to Note 19 Fair value of
financial assets and financial liabilities for further details.
We classify contracts to lease assets and hire purchase agreements as finance leases if they transfer substantially all the risks and rewards of
ownership of the asset to the customer or an unrelated third party. We include these facilities in ‘Other’ in the table above.
The Group enters into transactions in which it transfers financial assets that are recognised on its Balance Sheet. When the Group retains
substantially all of the risks and rewards of the transferred assets, the transferred assets remain on the Group’s Balance Sheet, however if
substantially all the risks and rewards are transferred, the Group derecognises the asset. If the risks and rewards are partially retained and
control over the asset is lost, the Group derecognises the asset. If control over the asset is not lost, the Group continues to recognise the asset
to the extent of its continuing involvement.
We separately recognise the rights and obligations retained, or created, in the transfer of assets as appropriate.
Assets disclosed as Net loans and advances are subject to the general classification and measurement policy for financial assets outlined on
page 117. Additionally, expected credit losses associated with loans and advances at amortised cost are recognised and measured in
accordance with the accounting policy outlined in Note 14 Allowance for expected credit losses.
130
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132
132
Notes to the consolidated financial statements (continued)
14. Allowance for expected credit losses
Suncorp Bank acquisition related adjustment
The collectively assessed credit impairment charge for 2024 includes $244 million for Suncorp Bank’s performing loans and advances. In accordance with
Australian Accounting Standards requirements, the Group consolidated Suncorp Bank’s loans and advances on 31 July 2024, however the Group was not
permitted to recognise an allowance for ECL on the performing loans and advances, leading to a proportional reduction in acquisition-related goodwill that
would otherwise have been recognised. Subsequently, the Group was required to recognise a collectively assessed allowance for ECL estimated using the
Group’s ECL methodologies, with a corresponding collectively assessed credit impairment charge recognised in the Group’s Income Statement.
2024
2023
Net loans and advances at amortised cost
Off-balance sheet commitments
Investment securities - debt securities at amortised cost
Total
Other comprehensive income
Investment securities - debt securities at FVOCI1
Collectively
assessed
$m
3,372
Individually
assessed
$m
303
Total
$m
3,675
846
34
5
-
841
34
4,247
Collectively
assessed
$m
3,180
Individually
assessed
$m
366
817
35
4,032
10
-
Total
$m
3,546
827
35
308
4,555
376
4,408
20
-
20
15
-
15
1. For FVOCI assets, the allowance for ECL does not alter the carrying amount which remains at fair value. Instead, the allowance for ECL is recognised in Other comprehensive income with a corresponding
charge to profit or loss.
The following tables present the movement in the allowance for ECL for the year.
Net loans and advances - at amortised cost
Allowance for ECL is included in Net loans and advances.
As at 1 October 2022
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Bad debts written off (excluding recoveries)
Foreign currency translation and other movements1
As at 30 September 2023
Transfer between stages
New and increased provisions (net of releases)2
Write-backs
Bad debts written off (excluding recoveries)
Foreign currency translation and other movements1
As at 30 September 2024
Stage 1
$m
1,141
148
(73)
-
-
11
Stage 2
$m
1,548
(138)
202
-
-
12
1,227
1,624
155
(89)
-
-
(17)
(181)
218
-
-
(8)
1,276
1,653
Stage 3
Collectively
assessed
$m
360
(94)
61
-
-
2
Individually
assessed
$m
533
84
388
(212)
(409)
(18)
329
(57)
168
-
-
3
443
366
83
379
(177)
(316)
(32)
303
Total
$m
3,582
-
578
(212)
(409)
7
3,546
-
676
(177)
(316)
(54)
3,675
1. Other movements include the impacts of discount unwind on individually assessed allowance for ECL or the impact of divestments completed during the year.
2. Includes Suncorp Bank acquisition related collectively assessed allowance for ECL. Under accounting standards, these were initially recognised as Stage 1, and where relevant moving to Stage 2 after the
date of acquisition, all presented within New and increased provisions (net of releases).
132
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132
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
133
133
14. Allowance for expected credit losses
Suncorp Bank acquisition related adjustment
The collectively assessed credit impairment charge for 2024 includes $244 million for Suncorp Bank’s performing loans and advances. In accordance with
Australian Accounting Standards requirements, the Group consolidated Suncorp Bank’s loans and advances on 31 July 2024, however the Group was not
permitted to recognise an allowance for ECL on the performing loans and advances, leading to a proportional reduction in acquisition-related goodwill that
would otherwise have been recognised. Subsequently, the Group was required to recognise a collectively assessed allowance for ECL estimated using the
Group’s ECL methodologies, with a corresponding collectively assessed credit impairment charge recognised in the Group’s Income Statement.
Net loans and advances at amortised cost
Off-balance sheet commitments
Investment securities - debt securities at amortised cost
Total
Other comprehensive income
Investment securities - debt securities at FVOCI1
2024
2023
Collectively
assessed
Individually
assessed
Collectively
assessed
Individually
assessed
Total
$m
3,675
846
34
$m
366
10
-
Total
$m
3,546
827
35
$m
3,180
817
35
4,032
308
4,555
376
4,408
$m
3,372
841
34
4,247
20
$m
303
5
-
-
20
15
-
15
1. For FVOCI assets, the allowance for ECL does not alter the carrying amount which remains at fair value. Instead, the allowance for ECL is recognised in Other comprehensive income with a corresponding
charge to profit or loss.
The following tables present the movement in the allowance for ECL for the year.
Net loans and advances - at amortised cost
Allowance for ECL is included in Net loans and advances.
As at 1 October 2022
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Bad debts written off (excluding recoveries)
Foreign currency translation and other movements1
As at 30 September 2023
Transfer between stages
New and increased provisions (net of releases)2
Write-backs
Bad debts written off (excluding recoveries)
Foreign currency translation and other movements1
As at 30 September 2024
Stage 3
Collectively
assessed
Individually
assessed
Stage 1
Stage 2
$m
$m
1,141
1,548
1,227
1,624
148
(73)
-
-
11
155
(89)
-
-
(17)
(138)
202
-
-
12
(181)
218
-
-
(8)
$m
360
(94)
61
329
(57)
168
-
-
2
-
-
3
1,276
1,653
443
$m
533
84
388
(212)
(409)
(18)
366
83
379
(177)
(316)
(32)
303
Total
$m
3,582
-
578
(212)
(409)
3,546
7
-
676
(177)
(316)
(54)
3,675
1. Other movements include the impacts of discount unwind on individually assessed allowance for ECL or the impact of divestments completed during the year.
2. Includes Suncorp Bank acquisition related collectively assessed allowance for ECL. Under accounting standards, these were initially recognised as Stage 1, and where relevant moving to Stage 2 after the
date of acquisition, all presented within New and increased provisions (net of releases).
14. Allowance for expected credit losses (continued)
Off-balance sheet commitments - undrawn and contingent facilities
Allowance for ECL is included in Other provisions.
As at 1 October 2022
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Foreign currency translation and other movements1
As at 30 September 2023
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Foreign currency translation and other movements1
As at 30 September 2024
1. Other movements include impact of divestments completed during the year.
Investment securities - debt securities at amortised cost
Allowance for ECL is included in Investment securities.
As at 30 September 2023
As at 30 September 2024
Stage 3
Stage 1
$m
593
Stage 2
$m
144
Collectively
assessed
$m
29
Individually
assessed
$m
9
31
-
-
6
630
18
26
-
(16)
658
(29)
46
-
1
162
(17)
13
-
(2)
156
(4)
(1)
-
1
25
(1)
1
-
2
27
2
2
(4)
1
10
-
3
(7)
(1)
5
Stage 1
$m
35
34
Stage 2
$m
-
-
Stage 3
Collectively
assessed
$m
-
Individually
assessed
$m
-
-
-
Investment securities - debt securities at FVOCI
As FVOCI assets are measured at fair value, there is no separate allowance for ECL. Instead, the allowance for ECL is recognised in Other
comprehensive income with a corresponding charge to profit or loss.
As at 30 September 2023
As at 30 September 2024
Stage 1
$m
15
20
Stage 2
$m
-
-
Stage 3
Collectively
assessed
$m
-
Individually
assessed
$m
-
-
-
132
Total
$m
775
-
47
(4)
9
827
-
43
(7)
(17)
846
Total
$m
35
34
Total
$m
15
20
133
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134
14. Allowance for expected credit losses (continued)
Credit impairment charge - Income Statement
Credit impairment charge/(release) analysis
New and increased provisions (net of releases)1,2
- Collectively assessed
- Individually assessed
Write-backs3
Recoveries of amounts previously written-off
Total credit impairment charge
1. Includes the impact of transfers between collectively assessed and individually assessed.
2. New and increased provisions (net of releases) includes:
Notes to the consolidated financial statements (continued)
2024
$m
262
465
(184)
(137)
406
2023
$m
152
476
(216)
(167)
245
Net loans and advances at amortised cost
Off-balance sheet commitments
Investment securities - debt securities at amortised cost
Investment securities - debt securities at FVOCI
Total
2024
2023
Collectively
assessed
$m
214
40
3
5
Individually
assessed
$m
462
3
-
-
262
465
Collectively
assessed
$m
106
43
(1)
4
152
Individually
assessed
$m
472
4
-
-
476
3. Consists of write-backs in Net loans and advances at amortised cost of $177 million (2023: $212 million) and Off-balance sheet commitments of $7 million (2023: $4 million) for the Group.
The contractual amount outstanding on financial assets that were written off during the year and that are still subject to enforcement activity is
$136 million (2023: $147 million) for the Group.
134
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ANZ 2024 Annual Report
134
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
135
135
14. Allowance for expected credit losses (continued)
Credit impairment charge - Income Statement
Credit impairment charge/(release) analysis
New and increased provisions (net of releases)1,2
- Collectively assessed
- Individually assessed
Write-backs3
Recoveries of amounts previously written-off
Total credit impairment charge
1. Includes the impact of transfers between collectively assessed and individually assessed.
2. New and increased provisions (net of releases) includes:
Net loans and advances at amortised cost
Off-balance sheet commitments
Investment securities - debt securities at amortised cost
Investment securities - debt securities at FVOCI
Total
262
465
2024
2023
Collectively
assessed
Individually
assessed
Collectively
assessed
Individually
assessed
$m
214
40
3
5
$m
462
3
-
-
$m
106
43
(1)
4
152
$m
472
4
-
-
476
$136 million (2023: $147 million) for the Group.
3. Consists of write-backs in Net loans and advances at amortised cost of $177 million (2023: $212 million) and Off-balance sheet commitments of $7 million (2023: $4 million) for the Group.
2024
$m
262
465
(184)
(137)
406
2023
$m
152
476
(216)
(167)
245
14. Allowance for expected credit losses (continued)
Recognition and measurement
Expected credit loss model
The measurement of expected credit losses reflects an unbiased, probability weighted prediction which evaluates a range of scenarios and
takes into account the time value of money, past events, current conditions and forecasts of future economic conditions.
Expected credit losses are either measured over 12 months or the expected lifetime of the financial asset, depending on credit deterioration
since origination, according to the following three-stage approach:
Stage 1: At the origination of a financial asset, and where there has not been a Significant Increase in Credit Risk (SICR) since origination, an
allowance for ECL is recognised reflecting the expected credit losses resulting from default events that are possible within the next 12
months from the reporting date. For instruments with a remaining maturity of less than 12 months, expected credit losses are estimated
based on default events that are possible over the remaining time to maturity.
Stage 2: Where there has been a SICR since origination, an allowance for ECL is recognised reflecting expected credit losses resulting from
all possible default events over the expected life of a financial instrument. If credit risk were to improve in a subsequent period such that the
increase in credit risk since origination is no longer considered significant, the exposure returns to a Stage 1 classification with ECL
measured accordingly.
Stage 3: Where there is objective evidence of impairment, an allowance equivalent to lifetime ECL is recognised.
Expected credit losses are estimated on a collective basis for exposures in Stage 1 and Stage 2, and on either a collective or individual basis
when transferred to Stage 3.
For financial assets that are credit-impaired on initial recognition, lifetime ECL are incorporated into the calculation of the effective interest rate
on initial recognition. Consequently, these assets do not carry an expected credit loss allowance on initial recognition. The amount recognised
as a provision for credit losses after initial recognition is equal to the change in the lifetime expected credit loss since initial recognition.
Measurement of expected credit loss
The contractual amount outstanding on financial assets that were written off during the year and that are still subject to enforcement activity is
ECL is calculated as the product of the following credit risk factors at a facility level, discounted to incorporate the time value of money:
Probability of default (PD) - the estimate of the likelihood that a borrower will default over a given period;
Exposure at default (EAD) - the expected balance sheet exposure at default taking into account repayments of principal and interest,
expected additional drawdowns and accrued interest; and
Loss given default (LGD) - the expected loss in the event of the borrower defaulting, expressed as a percentage of the facility's EAD, taking
into account direct and indirect recovery costs.
These credit risk factors are adjusted for current and forward-looking information through the use of macroeconomic variables.
Expected life
When estimating ECL for exposures in Stage 2 and 3, the Group considers the expected lifetime over which it is exposed to credit risk.
For non-retail portfolios, the Group uses the maximum contractual period as the expected lifetime for non-revolving credit facilities. For non-
retail revolving credit facilities, such as corporate lines of credit, the expected life reflects the Group’s contractual right to withdraw a facility as
part of a contractually agreed annual review, after taking into account the applicable notice period.
For retail portfolios, the expected lifetime is determined using a behavioural term, taking into account expected prepayment behaviour and
events that give rise to substantial modifications.
Definition of default, credit impaired and write-offs
The definition of default used in measuring ECL is aligned to the definition used for internal credit risk management purposes across all
portfolios. This definition is also in line with the regulatory definition of default. Default occurs when there are indicators that a debtor is unlikely
to fully satisfy contractual credit obligations to the Group, or the exposure is 90 days past due.
Financial assets, including those that are well secured, are considered credit impaired for financial reporting purposes when they default.
When there is no realistic probability of recovery, loans are written off against the related impairment allowance on completion of the Group’s
internal processes and when all reasonably expected recoveries have been collected. In subsequent periods, any recoveries of amounts
previously written-off are recorded as a release to the credit impairment charge in the Income Statement.
Modified financial assets
If the contractual terms of a financial asset are modified or an existing financial asset is replaced with a new one for either credit or commercial
reasons, an assessment is made to determine if the changes to the terms of the existing financial asset are considered substantial. This
assessment considers both changes in cash flows arising from the modified terms as well as changes in the overall instrument risk profile; for
example, changes in the principal (credit limit), term, or type of underlying collateral. Where a modification is considered non-substantial, the
existing financial asset is not derecognised and its date of origination continues to be used to determine SICR. Where a modification is
considered substantial, the existing financial asset is derecognised and a new financial asset is recognised at its fair value on the modification
date, which also becomes the date of origination used to determine SICR for this new asset.
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Notes to the consolidated financial statements (continued)
14. Allowance for expected credit losses (continued)
Recognition and measurement (continued)
Significant increase in credit risk
Stage 2 assets are those that have experienced a SICR since origination. In determining what constitutes a SICR, the Group considers both
qualitative and quantitative information:
i.
Internal credit rating grade
For the majority of portfolios, the primary indicator of a SICR is a significant deterioration in the internal credit rating grade of a facility since
origination and is measured by the application of thresholds.
For non-retail portfolios, a SICR is determined by comparing the Customer Credit Rating (CCR) applicable to a facility at reporting date to
the CCR at origination of that facility. A CCR is assigned to each borrower which reflects the PD of the borrower and incorporates both
borrower and non-borrower specific information, including forward-looking information. CCRs are subject to review at least annually or
more frequently when an event occurs which could affect the credit risk of the customer.
For retail portfolios, a SICR is determined, depending on the type of facility, by either comparing the scenario weighted lifetime PD at the
reporting date to that at origination, or by reference to customer behavioural score thresholds. The scenario weighted lifetime probability of
default may increase significantly if:
there has been a deterioration in the economic outlook, or an increase in economic uncertainty; or
there has been a deterioration in the customer’s overall credit position, or ability to manage their credit obligations.
ii. Backstop criteria
The Group uses 30 days past due arrears as a backstop criterion for both non-retail and retail portfolios. For retail portfolios only, facilities
are required to demonstrate three to six months of good payment behaviour prior to being allocated back to Stage 1.
Forward-looking information
Forward-looking information is incorporated into both our assessment of whether a financial asset has experienced a SICR since origination
and in our estimate of ECL. In applying forward-looking information for estimating ECL, the Group considers four probability-weighted forecast
economic scenarios as follows:
i. Base case scenario
The base case scenario is the Group’s view of future macroeconomic conditions. It reflects the same basis of assumptions used by
management for strategic planning and budgeting, and also informs the Group Internal Capital Adequacy Assessment Process which is
the process the Group applies in strategic and capital planning over a 3-year time horizon;
ii. Upside and iii. Downside scenarios
The upside and downside scenarios are fixed by reference to average economic cycle conditions (that is, they are not based on the
economic conditions prevailing at balance date) and are based on a combination of more optimistic (in the case of the upside) and
pessimistic (in the case of the downside) economic events and uncertainty over long term horizons; and
iv. Severe downside scenario
The severe scenario assumes a deep economic downturn, both domestically and globally. Forecast macroeconomic variables for such a
scenario are developed by ANZ Research - Economics (ANZ Economics), reflecting a plausible scenario unfolding over a 5-year period
given current economic conditions. These assumptions have been revised in 2024, reflecting an escalation of geopolitical tensions,
persistent inflation, and worsening national budget positions.
The four scenarios are described in terms of macroeconomic variables used in the PD, LGD and EAD models (collectively the ECL models)
depending on the lending portfolio and country of the borrower. Examples of the macroeconomic variables include unemployment rates,
Gross Domestic Product (GDP) growth rates, residential property price indices, commercial property price indices and consumer price indices.
Probability weighting of each scenario is determined by management considering the risks and uncertainties surrounding the base case
economic scenario, as well as specific portfolio considerations where required. The Group Asset and Liability Committee (GALCO) is
responsible for reviewing and approving the base case economic scenario and the Credit and Market Risk Committee (CMRC) approves the
probability weights applied to each scenario.
Where applicable, temporary adjustments may be made to account for situations where known or expected risks have not been adequately
addressed in the modelling process. CMRC is responsible for approving such adjustments.
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137
Financial report
Shareholder
Notes to the Financial Statements
information
ANZ 2024 Annual Report
ANZ 2024 Annual Report
136
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
14. Allowance for expected credit losses (continued)
14. Allowance for expected credit losses (continued)
Stage 2 assets are those that have experienced a SICR since origination. In determining what constitutes a SICR, the Group considers both
In estimating collectively assessed ECL, the Group makes judgements and assumptions in relation to:
Key judgements and estimates
Collectively assessed allowance for expected credit losses
Recognition and measurement (continued)
Significant increase in credit risk
qualitative and quantitative information:
i.
Internal credit rating grade
For the majority of portfolios, the primary indicator of a SICR is a significant deterioration in the internal credit rating grade of a facility since
origination and is measured by the application of thresholds.
For non-retail portfolios, a SICR is determined by comparing the Customer Credit Rating (CCR) applicable to a facility at reporting date to
the CCR at origination of that facility. A CCR is assigned to each borrower which reflects the PD of the borrower and incorporates both
borrower and non-borrower specific information, including forward-looking information. CCRs are subject to review at least annually or
more frequently when an event occurs which could affect the credit risk of the customer.
For retail portfolios, a SICR is determined, depending on the type of facility, by either comparing the scenario weighted lifetime PD at the
reporting date to that at origination, or by reference to customer behavioural score thresholds. The scenario weighted lifetime probability of
default may increase significantly if:
there has been a deterioration in the economic outlook, or an increase in economic uncertainty; or
there has been a deterioration in the customer’s overall credit position, or ability to manage their credit obligations.
The Group uses 30 days past due arrears as a backstop criterion for both non-retail and retail portfolios. For retail portfolios only, facilities
are required to demonstrate three to six months of good payment behaviour prior to being allocated back to Stage 1.
Forward-looking information is incorporated into both our assessment of whether a financial asset has experienced a SICR since origination
and in our estimate of ECL. In applying forward-looking information for estimating ECL, the Group considers four probability-weighted forecast
ii. Backstop criteria
Forward-looking information
economic scenarios as follows:
i. Base case scenario
The base case scenario is the Group’s view of future macroeconomic conditions. It reflects the same basis of assumptions used by
management for strategic planning and budgeting, and also informs the Group Internal Capital Adequacy Assessment Process which is
the process the Group applies in strategic and capital planning over a 3-year time horizon;
ii. Upside and iii. Downside scenarios
The upside and downside scenarios are fixed by reference to average economic cycle conditions (that is, they are not based on the
economic conditions prevailing at balance date) and are based on a combination of more optimistic (in the case of the upside) and
pessimistic (in the case of the downside) economic events and uncertainty over long term horizons; and
iv. Severe downside scenario
The severe scenario assumes a deep economic downturn, both domestically and globally. Forecast macroeconomic variables for such a
scenario are developed by ANZ Research - Economics (ANZ Economics), reflecting a plausible scenario unfolding over a 5-year period
given current economic conditions. These assumptions have been revised in 2024, reflecting an escalation of geopolitical tensions,
persistent inflation, and worsening national budget positions.
The four scenarios are described in terms of macroeconomic variables used in the PD, LGD and EAD models (collectively the ECL models)
depending on the lending portfolio and country of the borrower. Examples of the macroeconomic variables include unemployment rates,
Gross Domestic Product (GDP) growth rates, residential property price indices, commercial property price indices and consumer price indices.
Probability weighting of each scenario is determined by management considering the risks and uncertainties surrounding the base case
economic scenario, as well as specific portfolio considerations where required. The Group Asset and Liability Committee (GALCO) is
responsible for reviewing and approving the base case economic scenario and the Credit and Market Risk Committee (CMRC) approves the
probability weights applied to each scenario.
Where applicable, temporary adjustments may be made to account for situations where known or expected risks have not been adequately
addressed in the modelling process. CMRC is responsible for approving such adjustments.
the selection of an estimation technique or modelling methodology; and
the selection of inputs for those models, and the interdependencies between those inputs.
The following table summarises the key judgements and assumptions in relation to the model inputs and the interdependencies between
those inputs, and highlights significant changes during the current period.
The judgements and associated assumptions have been made within the context of the uncertainty as to how various factors might impact
the global economy and reflect historical experience and other factors that are considered to be relevant, including expectations of future
events that are believed to be reasonable under the circumstances. The Group’s ECL estimates are inherently uncertain and, as a result, actual
results may differ from these estimates.
Judgement/Assumption
Description
Considerations for the year ended 30 September 2024
Determining when a SICR
has occurred or reversed
Measuring both 12-
month and lifetime
expected credit losses
In the measurement of ECL, judgement is involved
in determining whether there has been a SICR
since initial recognition of a loan, which would
result in it moving from Stage 1 to Stage 2. This is
a key area of judgement since transition from
Stage 1 to Stage 2 increases the ECL from an
allowance based on the PD in the next 12
months, to an allowance for lifetime ECL.
Subsequent decreases in credit risk resulting in
transition from Stage 2 to Stage 1 may similarly
result in significant changes in the ECL allowance.
The setting of precise SICR trigger points requires
judgement which may have a material impact
upon the size of the ECL allowance. The Group
monitors the effectiveness of SICR criteria on an
ongoing basis.
The PD, LGD and EAD factors used in determining
ECL are point-in-time measures reflecting the
relevant forward-looking information determined
by management. Judgement is involved in
determining which forward-looking information is
relevant for particular lending portfolios and for
determining each portfolio’s point-in-time
sensitivity.
In addition, judgement is required where
behavioural characteristics are applied in
estimating the lifetime of a facility which is used in
measuring ECL.
Base case economic
forecast
The Group derives a forward-looking ‘base case’
economic scenario which reflects ANZ
Economics’ view of future macroeconomic
conditions.
The determination of SICR was consistent with prior
periods.
The PD, LGD and EAD models are subject to the Group’s
model risk policy that stipulates periodic model monitoring
and re-validation, and defines approval procedures and
authorities according to model materiality.
There were no material changes to the policy.
There have been no changes to the types of forward-
looking variables (key economic drivers) used as model
inputs.
As at 30 September 2024, the base case assumptions
have been updated to reflect a moderation in inflation and
an easing in labour market conditions in both Australia and
New Zealand. Both economies are forecast to continue to
grow below trend. Despite increased household
disposable incomes, limited flow-through to household
consumption is forecast.
The expected outcomes of key economic drivers for the
base case scenario at 30 September 2024 are described
below under the heading “Base case economic forecast
assumptions”.
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138
Notes to the consolidated financial statements (continued)
Notes to the Financial Statements
Financial report
139
14. Allowance for expected credit losses (continued)
14. Allowance for expected credit losses (continued)
Key judgements and estimates (continued)
Judgement/Assumption
Description
Considerations for the year ended 30 September 2024
Probability weighting of
each economic scenario
(base case, upside,
downside and severe
downside scenarios)1
Probability weighting of each economic scenario
is determined by management considering the
risks and uncertainties surrounding the base case
economic scenario at each measurement date.
The assigned probability weightings in Australia,
New Zealand and Rest of World are subject to a
high degree of inherent uncertainty and therefore
the actual outcomes may be significantly different
to those projected.
Management temporary
adjustments
Management temporary adjustments to the ECL
allowance are used in circumstances where it is
judged that our existing inputs, assumptions and
model techniques do not capture all the risk
factors relevant to our lending portfolios.
Emerging local or global macroeconomic,
microeconomic or political events, and natural
disasters that are not incorporated into our
current parameters, risk ratings, or forward-
looking information are examples of such
circumstances.
Probability weightings in New Zealand shifted from
downside to upside scenarios during the current period
reflecting increasing confidence in economic recovery with
high-frequency data providing early indication that the
economy is responding to monetary easing.
Probability weightings in Australia and Rest of World
remain unchanged from the prior period, reflecting our
assessment of the continuing downside risks from the
impact of higher interest rates and inflation in these
economies.
The probability weightings for current and prior periods are
as detailed in the section below under the heading
‘Probability weightings’.
Management have continued to apply adjustments to
accommodate uncertainty associated with higher inflation
and interest rates. Management overlays have been made
for risks particular to home loans, credit cards and
commercial lending in Australia, and for mortgages and
commercial lending in New Zealand. The total amount of
adjustments has decreased from the prior period as
anticipated risks are now represented in the portfolio
credit profiles.
Management has considered and concluded no
temporary adjustment is required at 30 September 2024
to the ECL in relation to climate or weather related events
during the period.
1. The upside and downside scenarios are fixed by reference to average economic cycle conditions (that is, they are not based on the economic conditions prevailing at balance date) and are
based on a combination of more optimistic (in the case of the upside) and pessimistic (in the case of the downside) economic conditions.
Key judgements and estimates (continued)
Probability weightings
Probability weightings for each scenario are determined by management considering the risks and uncertainties surrounding the base case
economic scenario including the uncertainties described above.
The average base case weighting has remained unchanged at to 46% (2023: 46%) as the upside and downside scenario weightings have
been revised. The average upside case weighting has increased to 1% (2023: 0%), and the average downside case weighting has decreased
to 40% (2023: 41%).
The assigned probability weightings in Australia, New Zealand and Rest of World are subject to a high degree of inherent uncertainty and
therefore the actual outcomes may be significantly different to those projected. The Group considers these weightings in each geography to
provide estimates of the possible loss outcomes and taking into account short and long term inter-relationships within the Group’s credit
portfolios. The average weightings applied across the Group are set out below:
Given current economic uncertainties and the judgement applied to factors used in determining the expected default of borrowers in future
periods, expected credit losses reported by the Group should be considered as a best estimate within a range of possible estimates.
The table below illustrates the sensitivity of collectively assessed ECL to key factors used in determining it as at 30 September 2024:
Base
Upside
Downside
Severe downside
ECL - Sensitivity analysis
If 1% of Stage 1 facilities were included in Stage 2
If 1% of Stage 2 facilities were included in Stage 1
100% upside scenario
100% base scenario
100% downside scenario
100% severe downside scenario
2024
46%
1%
40%
13%
2023
46%
0%
41%
13%
ECL
$m
4,328
4,241
1,502
1,951
3,580
10,142
Impact
$m
81
(6)
(2,745)
(2,296)
(667)
5,895
Base case economic forecast assumptions
Individually assessed allowance for expected credit losses
Continuing uncertainties described above increase the risk of the economic forecast resulting in an understatement or overstatement of the
ECL balance.
The economic drivers of the base case economic forecasts, reflective of ANZ Economics’ view of future macroeconomic conditions used at
30 September 2024 are set out below. For the years following the near term forecasts below, the ECL models apply simplified assumptions
for the economic conditions to calculate lifetime loss.
In estimating individually assessed ECL, the Group makes judgements and assumptions in relation to expected repayments, the realisable
value of collateral, business prospects for the customer, competing claims and the likely cost and duration of the work-out process.
Judgements and assumptions in respect of these matters have been updated to reflect amongst other things, the uncertainties described
above.
Australia
GDP (annual % change)
Unemployment rate (annual average)
Residential property prices (annual % change)
Consumer price index (annual average % change)
New Zealand
GDP (annual % change)
Unemployment rate (annual average)
Residential property prices (annual % change)
Consumer price index (annual average % change)
Rest of World
GDP (annual % change)
Consumer price index (annual average % change)
Forecast calendar year
2024
2025
2026
1.2
4.1
7.3
3.3
-0.1
4.7
-1.0
3.1
2.3
3.1
2.0
4.4
5.5
2.9
0.8
5.4
4.5
2.2
1.5
2.4
2.4
4.3
5.5
2.7
2.2
5.4
5.0
1.8
1.9
2.1
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138
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
14. Allowance for expected credit losses (continued)
14. Allowance for expected credit losses (continued)
Shareholder
Notes to the Financial Statements
information
Financial report
139
139
Key judgements and estimates (continued)
Probability weightings
Probability weightings for each scenario are determined by management considering the risks and uncertainties surrounding the base case
economic scenario including the uncertainties described above.
The average base case weighting has remained unchanged at to 46% (2023: 46%) as the upside and downside scenario weightings have
been revised. The average upside case weighting has increased to 1% (2023: 0%), and the average downside case weighting has decreased
to 40% (2023: 41%).
The assigned probability weightings in Australia, New Zealand and Rest of World are subject to a high degree of inherent uncertainty and
therefore the actual outcomes may be significantly different to those projected. The Group considers these weightings in each geography to
provide estimates of the possible loss outcomes and taking into account short and long term inter-relationships within the Group’s credit
portfolios. The average weightings applied across the Group are set out below:
Base
Upside
Downside
Severe downside
ECL - Sensitivity analysis
2024
46%
1%
40%
13%
2023
46%
0%
41%
13%
Given current economic uncertainties and the judgement applied to factors used in determining the expected default of borrowers in future
periods, expected credit losses reported by the Group should be considered as a best estimate within a range of possible estimates.
The table below illustrates the sensitivity of collectively assessed ECL to key factors used in determining it as at 30 September 2024:
If 1% of Stage 1 facilities were included in Stage 2
If 1% of Stage 2 facilities were included in Stage 1
100% upside scenario
100% base scenario
100% downside scenario
100% severe downside scenario
ECL
$m
4,328
4,241
1,502
1,951
3,580
10,142
Impact
$m
81
(6)
(2,745)
(2,296)
(667)
5,895
Individually assessed allowance for expected credit losses
In estimating individually assessed ECL, the Group makes judgements and assumptions in relation to expected repayments, the realisable
value of collateral, business prospects for the customer, competing claims and the likely cost and duration of the work-out process.
Judgements and assumptions in respect of these matters have been updated to reflect amongst other things, the uncertainties described
above.
Key judgements and estimates (continued)
Judgement/Assumption
Description
Considerations for the year ended 30 September 2024
Probability weighting of
Probability weighting of each economic scenario
Probability weightings in New Zealand shifted from
each economic scenario
is determined by management considering the
downside to upside scenarios during the current period
(base case, upside,
downside and severe
downside scenarios)1
risks and uncertainties surrounding the base case
reflecting increasing confidence in economic recovery with
economic scenario at each measurement date.
high-frequency data providing early indication that the
The assigned probability weightings in Australia,
economy is responding to monetary easing.
New Zealand and Rest of World are subject to a
Probability weightings in Australia and Rest of World
high degree of inherent uncertainty and therefore
remain unchanged from the prior period, reflecting our
the actual outcomes may be significantly different
assessment of the continuing downside risks from the
to those projected.
impact of higher interest rates and inflation in these
economies.
The probability weightings for current and prior periods are
as detailed in the section below under the heading
‘Probability weightings’.
Management temporary
Management temporary adjustments to the ECL
Management have continued to apply adjustments to
adjustments
allowance are used in circumstances where it is
accommodate uncertainty associated with higher inflation
judged that our existing inputs, assumptions and
and interest rates. Management overlays have been made
model techniques do not capture all the risk
for risks particular to home loans, credit cards and
factors relevant to our lending portfolios.
commercial lending in Australia, and for mortgages and
Emerging local or global macroeconomic,
commercial lending in New Zealand. The total amount of
microeconomic or political events, and natural
adjustments has decreased from the prior period as
disasters that are not incorporated into our
anticipated risks are now represented in the portfolio
current parameters, risk ratings, or forward-
credit profiles.
looking information are examples of such
circumstances.
Management has considered and concluded no
temporary adjustment is required at 30 September 2024
to the ECL in relation to climate or weather related events
during the period.
1. The upside and downside scenarios are fixed by reference to average economic cycle conditions (that is, they are not based on the economic conditions prevailing at balance date) and are
based on a combination of more optimistic (in the case of the upside) and pessimistic (in the case of the downside) economic conditions.
Base case economic forecast assumptions
ECL balance.
Continuing uncertainties described above increase the risk of the economic forecast resulting in an understatement or overstatement of the
The economic drivers of the base case economic forecasts, reflective of ANZ Economics’ view of future macroeconomic conditions used at
30 September 2024 are set out below. For the years following the near term forecasts below, the ECL models apply simplified assumptions
for the economic conditions to calculate lifetime loss.
Australia
GDP (annual % change)
Unemployment rate (annual average)
Residential property prices (annual % change)
Consumer price index (annual average % change)
New Zealand
GDP (annual % change)
Unemployment rate (annual average)
Residential property prices (annual % change)
Consumer price index (annual average % change)
Rest of World
GDP (annual % change)
Consumer price index (annual average % change)
Forecast calendar year
2024
2025
2026
1.2
4.1
7.3
3.3
-0.1
4.7
-1.0
3.1
2.3
3.1
2.0
4.4
5.5
2.9
0.8
5.4
4.5
2.2
1.5
2.4
2.4
4.3
5.5
2.7
2.2
5.4
5.0
1.8
1.9
2.1
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140
140
Notes to the consolidated financial statements (continued)
Financial liabilities
Outlined below is a description of how we classify and measure financial liabilities relevant to the note disclosures that follow.
Classification and measurement
Financial liabilities
Financial liabilities are measured at amortised cost, or FVTPL when they are held for trading. Additionally, financial liabilities can be designated at
FVTPL where:
the designation eliminates or significantly reduces an accounting mismatch which would otherwise arise;
a group of financial liabilities are managed and their performance are evaluated on a fair value basis, in accordance with a documented risk
management strategy; or
the financial liability contains one or more embedded derivatives unless:
a) the embedded derivative does not significantly modify the cash flows that otherwise would be required by the contract; or
b) the embedded derivative is closely related to the host financial liability.
Where financial liabilities are designated as measured at fair value, gains or losses relating to changes in the entity’s own credit risk are
included in Other comprehensive income, except where doing so would create or enlarge an accounting mismatch in profit or loss.
140
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140
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
141
141
Financial liabilities
15. Deposits and other borrowings
Outlined below is a description of how we classify and measure financial liabilities relevant to the note disclosures that follow.
Classification and measurement
Financial liabilities
FVTPL where:
Financial liabilities are measured at amortised cost, or FVTPL when they are held for trading. Additionally, financial liabilities can be designated at
the designation eliminates or significantly reduces an accounting mismatch which would otherwise arise;
a group of financial liabilities are managed and their performance are evaluated on a fair value basis, in accordance with a documented risk
management strategy; or
the financial liability contains one or more embedded derivatives unless:
a) the embedded derivative does not significantly modify the cash flows that otherwise would be required by the contract; or
b) the embedded derivative is closely related to the host financial liability.
Where financial liabilities are designated as measured at fair value, gains or losses relating to changes in the entity’s own credit risk are
included in Other comprehensive income, except where doing so would create or enlarge an accounting mismatch in profit or loss.
47,587
98,550
60,104
381,591
42,206
273,516
33,111
92,562
42,906
2024
2023
356,320
Certificates of deposit
Term deposits
On demand and short term deposits
Deposits not bearing interest
Deposits from banks & securities sold under repurchase agreements
Commercial paper and other borrowings
Deposits and other borrowings1
Residual contractual maturity:
Within one year
More than one year
Deposits and other borrowings
Carried on Balance Sheet at:
Amortised cost
Fair value through profit or loss
Deposits and other borrowings
41,919
247,893
Certificates of deposit
Term deposits
On demand and short
term deposits
Deposits not bearing interest
Deposits from banks & securities sold
under repurchase agreements
Commercial paper and
other borrowings
2024
$m
42,206
273,516
381,591
60,104
98,550
47,587
2023
$m
41,919
247,893
356,320
42,906
92,562
33,111
903,554
814,711
893,211
10,343
903,554
860,553
43,001
903,554
805,505
9,206
814,711
780,822
33,889
814,711
1. Customer deposits balance of $715,211 million (2023: $647,119 million) for the Group includes Term deposits, On demand and short term deposits and Deposits not bearing interest.
Recognition and measurement
For deposits and other borrowings that:
are not designated at FVTPL on initial recognition, we measure them at amortised cost and recognise their interest expense using the
effective interest rate method; and
are managed on a fair value basis, reduce or eliminate an accounting mismatch or contain an embedded derivative, we designate them as
measured at FVTPL.
Refer to Note 19 Fair value of financial assets and financial liabilities for further details.
For deposits and other borrowings designated at fair value we recognise the amount of fair value gain or loss attributable to changes in the
Group’s own credit risk in Other comprehensive income in retained earnings. Any remaining amount of fair value gain or loss we recognise
directly in profit or loss. Once we have recognised an amount in other comprehensive income, we do not later reclassify it to profit or loss.
Securities sold under repurchase agreements represent a liability to repurchase the financial assets that remain on our balance sheet since the
risks and rewards of ownership remain with the Group. Over the life of the repurchase agreement, we recognise the difference between the
sale price and the repurchase price and charge it to interest expense in profit or loss.
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142
16. Payables and other liabilities
Payables and accruals
Liabilities at fair value1
Lease liabilities
Trail commission liabilities
Other liabilities
Payables and other liabilities
1. Relate to securities sold short classified as held for trading and measured at FVTPL.
Notes to the consolidated financial statements (continued)
2024
$m
7,218
6,023
1,112
2,055
1,443
2023
$m
5,739
5,267
951
1,469
1,671
17,851
15,097
Recognition and measurement
The Group recognises liabilities when there is a present obligation to transfer economic resources as a result of past events.
Below is the measurement basis for each item classified as other liabilities:
Payables, accruals and other liabilities are measured at the contractual amount payable or the best estimate of consideration required to
settle the payable.
Liabilities at fair value relate to securities sold short, which we classify as held for trading and measure at FVTPL based on quoted prices in
active markets.
Lease liabilities are initially measured at the present value of the future lease payments using the Group’s incremental borrowing rate at the
lease commencement date. The carrying amount is then subsequently adjusted to reflect the interest on the lease liability, lease payments
that have been made and any lease reassessments or modifications.
Trail commission liabilities are measured based on the present value of expected future trail commission payments taking into consideration
average behavioural loan life and outstanding balances of broker originated loans.
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142
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
143
143
Payables and accruals
Liabilities at fair value1
Lease liabilities
Trail commission liabilities
Other liabilities
Payables and other liabilities
1. Relate to securities sold short classified as held for trading and measured at FVTPL.
2024
$m
7,218
6,023
1,112
2,055
1,443
2023
$m
5,739
5,267
951
1,469
1,671
17,851
15,097
Recognition and measurement
The Group recognises liabilities when there is a present obligation to transfer economic resources as a result of past events.
Below is the measurement basis for each item classified as other liabilities:
Payables, accruals and other liabilities are measured at the contractual amount payable or the best estimate of consideration required to
settle the payable.
active markets.
Liabilities at fair value relate to securities sold short, which we classify as held for trading and measure at FVTPL based on quoted prices in
Lease liabilities are initially measured at the present value of the future lease payments using the Group’s incremental borrowing rate at the
lease commencement date. The carrying amount is then subsequently adjusted to reflect the interest on the lease liability, lease payments
that have been made and any lease reassessments or modifications.
Trail commission liabilities are measured based on the present value of expected future trail commission payments taking into consideration
average behavioural loan life and outstanding balances of broker originated loans.
16. Payables and other liabilities
17. Debt issuances
The Group, primarily via ANZBGL and some of its banking subsidiaries (including ANZ Bank New Zealand and Norfina Limited (Suncorp Bank)), uses a
variety of funding programmes to issue senior debt (including covered bonds and securitisations) and subordinated debt. The difference between senior
debt and subordinated debt is that, in a winding up of an issuer, holders of senior debt of that issuer rank in priority to holders of subordinated debt of that
issuer. Subordinated debt will be repaid by the relevant issuer only after the repayment of claims of its depositors and other creditors (including the senior
debt holders) of that issuer.
Senior debt
Covered bonds
Securitisation
Total unsubordinated debt
Subordinated debt
- ANZBGL Additional Tier 1 capital
- ANZBGL Tier 2 capital
- Other subordinated debt securities
Total subordinated debt
Total debt issued
Residual contractual maturity1:
Within one year
More than one year
No maturity date (instruments in perpetuity)
Total debt issued
Carried on Balance Sheet at:
Amortised cost
Fair value through profit or loss
Total debt issued
2024
$m
94,152
18,931
3,640
116,723
8,277
28,584
2,804
39,665
156,388
35,107
119,090
2,191
2023
$m
63,233
18,223
880
82,336
8,232
23,707
1,739
33,678
116,014
21,746
92,856
1,412
156,388
116,014
154,572
114,678
1,816
1,336
156,388
116,014
1. Based on the final maturity date or, in the case of Additional Tier 1 capital securities, the mandatory conversion date (if any).
Total debt issued by currency
The table below shows the Group’s issued debt by currency of issue, which broadly represents the debt holders’ base location.
USD
EUR
AUD
NZD
JPY
CHF
GBP
HKD
United States dollars
Euro
Australian dollars
New Zealand dollars
Japanese yen
Swiss francs
Pounds sterling
Hong Kong dollars
Other
Chinese yuan and Singapore dollars
Total debt issued
Subordinated debt
2024
$m
45,512
26,325
69,420
1,074
2,609
683
8,543
1,403
819
2023
$m
32,723
26,990
47,043
1,575
1,993
1,039
2,230
1,407
1,014
156,388
116,014
Subordinated debt is primarily issued externally by the Group out of its banking subsidiaries, ANZBGL and ANZ Bank New Zealand. ANZ Holdings (New
Zealand) Limited also issued $800 million of perpetual subordinated debt in September 2024. The externally issued subordinated debt constitutes
subordinated debt of both the Group and the relevant issuer.
At 30 September 2024, all subordinated debt issued by ANZBGL qualifies as regulatory capital for ANZBGL. Depending on their terms and conditions, the
subordinated debt instruments issued by ANZBGL are classified as either Additional Tier 1 (AT1) capital for ANZBGL (in the case of the ANZ Capital Notes
(ANZ CN) and ANZ Capital Securities (ANZ CS)) or Tier 2 capital for ANZBGL (in the case of the term subordinated notes) for APRA’s capital adequacy
purposes. Subordinated debt issued by ANZ Holdings (New Zealand) Limited or ANZ Bank New Zealand does not constitute regulatory capital for the
Group for APRA’s capital adequacy purposes.
Subordinated debt issued by ANZ Bank New Zealand will constitute tier 2 capital for ANZ Bank New Zealand for the purposes of the Reserve Bank of New
Zealand’s (RBNZ) capital requirements. Subordinated debt issued by ANZ Holdings (New Zealand) Limited does not constitute regulatory capital for the
RBNZ’s capital adequacy purposes.
142
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144
Notes to the consolidated financial statements (continued)
17. Debt issuances (continued)
AT1 capital
All outstanding AT1 capital instruments issued by ANZBGL are Basel III fully compliant instruments (refer to Note 25 Capital management for further
information about Basel III) for APRA’s capital adequacy purposes. Each of the ANZ CN and ANZ CS rank equally with each other.
Distributions on the AT1 capital instruments are non-cumulative and subject to the issuer’s absolute discretion and certain payment conditions (including
regulatory requirements). Distributions on ANZ CNs are franked in line with the franking applied to ANZGHL’s ordinary shares.
Where specified, the AT1 capital instruments provide the issuer with an early redemption or conversion option on a specified date and in certain other
circumstances (such as a tax or regulatory event). This redemption option is subject to APRA’s prior written approval.
Each of the AT1 capital instruments will immediately convert into a variable number of ANZGHL’s ordinary shares (based on the average market price of
the shares immediately prior to conversion less a 1% discount, subject to a maximum conversion number of ANZGHL’s ordinary shares) if:
ANZBGL’s Common Equity Tier 1 capital ratios are equal to or less than 5.125% - known as a Common Equity Capital Trigger Event; or
APRA notifies ANZBGL that, without the conversion or write-off of certain securities or a public sector injection of capital (or equivalent support), it
considers that ANZBGL would become non-viable – known as a Non-Viability Trigger Event.
Where specified, AT1 capital instruments mandatorily convert into a variable number of ANZGHL’s ordinary shares (based on the average market price of
the shares immediately prior to conversion less a 1% discount):
on a specified mandatory conversion date; or
on an earlier date under certain circumstances as set out in the terms.
However, this mandatory conversion is deferred for a specified period if certain conversion tests are not met.
If the AT1 capital securities convert, and the holders receive ANZGHL ordinary shares, then:
the AT1 capital securities are transferred by the holders to ANZGHL for their face value;
ANZBGL shall redeem the securities and simultaneously issue ordinary shares to its parent ANZ BH Pty Ltd (based on ANZBGL’s share price calculated
by reference to its consolidated net assets, subject to a maximum conversion number); and
ANZ BH Pty Ltd will issue shares to ANZGHL (based on ANZ BH Pty Ltd’s share price calculated by reference to its consolidated net assets, subject to a
maximum conversion number).
Preference shares issued by ANZ Bank New Zealand will constitute AT1 capital for ANZ Bank New Zealand for the purposes of the RBNZ’s capital
requirements, however they will not constitute AT1 capital for the ANZBGL Group as the terms of the preference shares do not satisfy APRA’s capital
requirements. Externally issued preference shares are included within non-controlling interests in Note 24 Shareholders’ equity.
The tables below show key details of the ANZBGL’s AT1 capital instruments on issue at 30 September in both the current and prior years:
2024
$m
2023
$m
-
931
1,490
1,300
1,485
1,680
1,391
8,277
1,621
929
1,489
1,298
1,483
-
1,412
8,232
ANZBGL's Additional Tier 1 capital (perpetual subordinated securities)1
ANZ Capital Notes
AUD
AUD
AUD
AUD
AUD
AUD
1,622m
ANZ CN42
931m
ANZ CN5
1,500m
ANZ CN6
1,310m
ANZ CN7
1,500m
ANZ CN8
1,700m
ANZ CN9
ANZ Capital Securities
USD
Total ANZBGL Additional Tier 1 capital3
1,000m
ANZ Capital Securities
1. Carrying values are net of issuance costs.
2. All of the ANZ CN4 were redeemed on 20 March 2024 with approximately $905 million of the proceeds from redemption reinvested into ANZ CN9 on the same date.
3. This forms part of ANZBGL’s qualifying AT1 capital. Refer to Note 25 Capital management for further details.
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144
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
145
145
17. Debt issuances (continued)
AT1 capital
All outstanding AT1 capital instruments issued by ANZBGL are Basel III fully compliant instruments (refer to Note 25 Capital management for further
information about Basel III) for APRA’s capital adequacy purposes. Each of the ANZ CN and ANZ CS rank equally with each other.
Distributions on the AT1 capital instruments are non-cumulative and subject to the issuer’s absolute discretion and certain payment conditions (including
regulatory requirements). Distributions on ANZ CNs are franked in line with the franking applied to ANZGHL’s ordinary shares.
Where specified, the AT1 capital instruments provide the issuer with an early redemption or conversion option on a specified date and in certain other
circumstances (such as a tax or regulatory event). This redemption option is subject to APRA’s prior written approval.
Each of the AT1 capital instruments will immediately convert into a variable number of ANZGHL’s ordinary shares (based on the average market price of
the shares immediately prior to conversion less a 1% discount, subject to a maximum conversion number of ANZGHL’s ordinary shares) if:
ANZBGL’s Common Equity Tier 1 capital ratios are equal to or less than 5.125% - known as a Common Equity Capital Trigger Event; or
APRA notifies ANZBGL that, without the conversion or write-off of certain securities or a public sector injection of capital (or equivalent support), it
considers that ANZBGL would become non-viable – known as a Non-Viability Trigger Event.
Where specified, AT1 capital instruments mandatorily convert into a variable number of ANZGHL’s ordinary shares (based on the average market price of
the shares immediately prior to conversion less a 1% discount):
on a specified mandatory conversion date; or
on an earlier date under certain circumstances as set out in the terms.
However, this mandatory conversion is deferred for a specified period if certain conversion tests are not met.
If the AT1 capital securities convert, and the holders receive ANZGHL ordinary shares, then:
the AT1 capital securities are transferred by the holders to ANZGHL for their face value;
17. Debt issuances (continued)
ANZ Capital Notes
Issuer
Issue date
Issue amount
Face value per note
Distribution frequency
Distribution rate
ANZ CN4
ANZBGL
ANZ CN5
ANZBGL
ANZ CN6
ANZBGL
27 September 2016
28 September 2017
8 July 2021
$1,622 million
$100
$931 million
$1,500 million
$100
$100
Quarterly in arrears
Quarterly in arrears
Quarterly in arrears
Floating rate: (90 day Bank
Bill rate+4.7%)x(1-Australian
corporate tax rate)
Floating rate: (90 day Bank
Bill rate+3.8%)x(1-Australian
corporate tax rate)
Floating rate: (90 day Bank
Bill rate+3.0%)x(1-Australian
corporate tax rate)
Issuer’s early redemption or conversion option
Mandatory conversion date
Common Equity Capital Trigger Event
Non-Viability Trigger Event
Carrying value (net of issue costs)
20 March 20241
20 March 20262
20 March 2025
20 March 2028
20 March 2027
20 September 2030
Yes
Yes
nil
Yes
Yes
Yes
Yes
$931 million
$1,490 million
(2023: $1,621 million)
(2023: $929 million)
(2023: $1,489 million)
ANZBGL shall redeem the securities and simultaneously issue ordinary shares to its parent ANZ BH Pty Ltd (based on ANZBGL’s share price calculated
by reference to its consolidated net assets, subject to a maximum conversion number); and
ANZ BH Pty Ltd will issue shares to ANZGHL (based on ANZ BH Pty Ltd’s share price calculated by reference to its consolidated net assets, subject to a
maximum conversion number).
Preference shares issued by ANZ Bank New Zealand will constitute AT1 capital for ANZ Bank New Zealand for the purposes of the RBNZ’s capital
requirements, however they will not constitute AT1 capital for the ANZBGL Group as the terms of the preference shares do not satisfy APRA’s capital
requirements. Externally issued preference shares are included within non-controlling interests in Note 24 Shareholders’ equity.
The tables below show key details of the ANZBGL’s AT1 capital instruments on issue at 30 September in both the current and prior years:
Issuer
Issue date
Issue amount
Face value per note
Distribution frequency
Distribution rate
ANZ CN7
ANZBGL
24 March 2022
$1,310 million
$100
ANZ CN8
ANZBGL
ANZ CN9
ANZBGL
24 March 2023
20 March 2024
$1,500 million
$1,700 million
$100
$100
Quarterly in arrears
Quarterly in arrears
Quarterly in arrears
Floating rate: (90 day Bank
Bill rate+2.7%)x(1-Australian
corporate tax rate)
Floating rate: (90 day Bank
Bill rate+2.75%)x(1-Australian
corporate tax rate)
Floating rate: (90 day Bank
Bill rate+2.9%)x(1-Australian
corporate tax rate)
Issuer’s early redemption or conversion option
20 March 2029
20 March 2030
20 March 2031
Mandatory conversion date
20 September 2031
20 September 2032
20 September 2033
Common Equity Capital Trigger Event
Yes
Non-Viability Trigger Event
Carrying value (net of issue costs)
Yes
$1,300 million
Yes
Yes
Yes
Yes
$1,485 million
$1,680 million
(2023: $1,298 million)
(2023: $1,483 million)
(2023: nil)
1. All of the ANZ CN4 were redeemed on 20 March 2024 with approximately $905 million of the proceeds from redemption reinvested into ANZ CN9 on the same date.
2. The mandatory conversion date is no longer applicable as all of ANZ CN4 have been redeemed.
ANZBGL's Additional Tier 1 capital (perpetual subordinated securities)1
ANZ Capital Notes
AUD
AUD
AUD
AUD
AUD
AUD
1,622m
ANZ CN42
931m
ANZ CN5
1,500m
ANZ CN6
1,310m
ANZ CN7
1,500m
ANZ CN8
1,700m
ANZ CN9
ANZ Capital Securities
USD
1,000m
ANZ Capital Securities
Total ANZBGL Additional Tier 1 capital3
1. Carrying values are net of issuance costs.
2. All of the ANZ CN4 were redeemed on 20 March 2024 with approximately $905 million of the proceeds from redemption reinvested into ANZ CN9 on the same date.
3. This forms part of ANZBGL’s qualifying AT1 capital. Refer to Note 25 Capital management for further details.
2024
$m
2023
$m
-
931
1,490
1,300
1,485
1,680
1,391
8,277
1,621
929
1,489
1,298
1,483
-
1,412
8,232
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146
Notes to the consolidated financial statements (continued)
17. Debt issuances (continued)
ANZ Capital Securities
Issuer
Issue date
Issue amount
Face value
Interest frequency
Interest rate
ANZBGL, acting through its London branch
15 June 2016
USD 1,000 million
Minimum denomination of USD 200,000 and an integral multiple of USD 1,000 above that
Semi-annually in arrears
Fixed at 6.75% p.a. until 15 June 2026. Reset on 15 June 2026 and each 5 year anniversary
to a floating rate: 5 year USD mid-market swap rate + 5.168%
Issuer’s early redemption option
15 June 2026 and each 5 year anniversary
Common Equity Capital Trigger Event
Non-Viability Trigger Event
Yes
Yes
Carrying value (net of issue costs)
$1,391 million (2023: $1,412 million)
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146
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
147
147
17. Debt issuances (continued)
ANZ Capital Securities
Issuer
Issue date
Issue amount
Face value
Interest frequency
Interest rate
ANZBGL, acting through its London branch
15 June 2016
USD 1,000 million
Semi-annually in arrears
Minimum denomination of USD 200,000 and an integral multiple of USD 1,000 above that
Fixed at 6.75% p.a. until 15 June 2026. Reset on 15 June 2026 and each 5 year anniversary
to a floating rate: 5 year USD mid-market swap rate + 5.168%
Issuer’s early redemption option
15 June 2026 and each 5 year anniversary
Common Equity Capital Trigger Event
Non-Viability Trigger Event
Yes
Yes
Carrying value (net of issue costs)
$1,391 million (2023: $1,412 million)
17. Debt issuances (continued)
Tier 2 capital
Convertible term subordinated notes issued by ANZBGL are Basel III fully compliant instruments for APRA’s capital adequacy purposes. If a Non-Viability
Trigger Event occurs, each of the convertible term subordinated notes will immediately convert into ANZGHL ordinary shares (based on the average
market price of the ANZGHL shares immediately prior to conversion less a 1% discount, subject to a maximum conversion number).
If the Tier 2 capital securities convert, and the holders receive ANZGHL ordinary shares, then ANZBGL shall issue ordinary shares to its parent ANZ BH
Pty Ltd (based on ANZBGL’s share price calculated by reference to its consolidated net assets, subject to a maximum conversion number) and ANZ BH
Pty Ltd will issue shares to ANZGHL (calculated on the same basis).
The table below shows the Tier 2 capital subordinated debt issued by ANZBGL at 30 September in the current and prior year:
Currency
Face value Maturity
Next optional call date –
subject to APRA’s prior approval
ANZBGL Tier 2 capital (term subordinated notes)
USD
JPY
USD
AUD
AUD
EUR1
AUD
USD
AUD
USD
AUD
AUD
EUR
GBP
AUD
AUD
JPY
SGD
AUD
USD
EUR
AUD
AUD
AUD
AUD
AUD
USD
AUD
USD
800m
2024
20,000m
2026
1,500m
2026
225m
2032
1,750m
2029
1,000m
2029
265m
2039
1,250m
2030
1,250m
2031
1,500m
2035
330m
195m
750m
500m
2040
2040
2031
2031
1,450m
2032
300m
2032
59,400m
2032
600m
900m
2032
2034
N/A
N/A
N/A
2027
2024
2024
N/A
2025
2026
2030
N/A
N/A
2026
2026
2027
2027
2027
2027
2029
1,250m
2032
N/A
1,000m
2033
1,000m
2038
275m
875m
2033
2033
1,434m
2034
850m
2034
1,000m
2034
1,900m
2039
1,250m
2035
2028
2033
2028
2028
2029
2029
2029
2034
2034
Interest
rate
Fixed
Fixed
Fixed
Fixed
Floating
Fixed
Fixed
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Floating
Floating
Fixed
Fixed
Fixed
Fixed
2024
$m
2023
$m
-
1,220
203
207
2,089
2,125
224
-
1,600
189
1,764
1,250
1,845
225
131
225
1,750
1,555
170
1,808
1,250
1,786
202
117
1,154
1,104
904
830
1,440
1,400
290
597
684
907
1,817
1,642
1,007
275
867
1,415
850
1,478
1,947
1,790
300
606
659
871
1,803
1,594
975
275
875
-
-
-
-
-
Total ANZBGL Tier 2 capital2,3
28,584
23,707
1. The EUR 1,000m subordinated notes will be redeemed on 21 November 2024.
2. Carrying values are net of issuance costs, and, where applicable, include fair value hedge accounting adjustments.
3. This forms part of ANZBGL’s qualifying Tier 2 capital. Refer to Note 25 Capital management for further details.
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148
Notes to the consolidated financial statements (continued)
17. Debt issuances (continued)
Other subordinated debt securities
The term subordinated notes issued by ANZ Bank New Zealand constitute tier 2 capital under RBNZ requirements. However, they do not (among other
things) contain a Non-Viability Trigger Event and therefore do not meet APRA’s requirements for Tier 2 capital instruments in order to qualify as regulatory
capital for the ANZBGL Group.
ANZ Holdings (New Zealand) Limited externally issued $800m perpetual subordinated notes in September 2024, however, they do not constitute tier 2
capital for either APRA’s or RBNZ’s capital adequacy purposes.
Currency
Face value Maturity
Next optional call date1
Interest
rate
Non-Basel III compliant perpetual subordinated notes issued by ANZBGL2
USD
300m
Perpetual
Each semi-annual interest payment
date
Floating
Perpetual subordinated notes issued by ANZ Holdings (New Zealand) Limited3
AUD
800m
Perpetual
2030
Floating
Term subordinated notes issued by ANZ Bank New Zealand Limited
NZD
USD
USD
600m
500m
500m
2031
2032
2034
2026
2027
2029
Other subordinated debt4
Fixed
Fixed
Fixed
2024
$m
2023
$m
-
464
800
549
708
747
-
555
720
-
2,804
1,739
1. Subject to APRA’s or RBNZ’s prior approval (as applicable).
2. The USD 300 million perpetual subordinated notes were redeemed by ANZBGL on 31 October 2023.
3. The perpetual subordinated notes were issued by ANZ Holdings (New Zealand) Limited on 18 September 2024 with the proceeds invested in perpetual preference shares issued internally by ANZ Bank
New Zealand (which constitute additional tier 1 capital for ANZ Bank New Zealand for the purposes of RBNZ’s capital requirements but not for the purposes of APRA’s capital requirements).
4. ANZ Bank New Zealand externally issued NZD 550 million of perpetual preference shares on 18 July 2022 and NZD 275 million of perpetual preference shares on 19 March 2024. These perpetual
preference shares constitute AT1 capital for ANZ Bank New Zealand for the purposes of RBNZ’s capital requirements but not for the purposes of APRA’s capital requirements. These preference shares
are included within non-controlling interests in Note 24 Shareholders’ equity.
Recognition and measurement
Debt issuances are initially recognised at fair value and are subsequently measured at amortised cost, except where designated at FVTPL.
Interest expense on debt issuances is recognised using the effective interest rate method. Where the group enters into a fair value hedge
accounting relationship, the fair value attributable to the hedged risk is reflected in adjustments to the carrying value of the debt.
Subordinated debt with capital-based conversion features (i.e. Common Equity Capital Trigger Events or Non-Viability Trigger Events) are
considered to contain embedded derivatives that we account for separately at FVTPL. The embedded derivatives arise because the number
of shares issued on conversion following any of those trigger events is subject to the maximum conversion number, however they have no
significant value as of the reporting date given the remote nature of those trigger events.
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148
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
149
149
17. Debt issuances (continued)
Other subordinated debt securities
capital for the ANZBGL Group.
The term subordinated notes issued by ANZ Bank New Zealand constitute tier 2 capital under RBNZ requirements. However, they do not (among other
things) contain a Non-Viability Trigger Event and therefore do not meet APRA’s requirements for Tier 2 capital instruments in order to qualify as regulatory
ANZ Holdings (New Zealand) Limited externally issued $800m perpetual subordinated notes in September 2024, however, they do not constitute tier 2
capital for either APRA’s or RBNZ’s capital adequacy purposes.
18. Financial risk management
Risk management framework and model
Introduction
The use of financial instruments is fundamental to the Group’s businesses of providing banking and other financial services to our customers. The
associated financial risks (primarily credit, market, and liquidity risks) are a significant portion of the Group’s key material risks.
We disclose details of all key material risks impacting the Group, and further information on the Group’s risk management activities, in the Governance and
Risk Management sections of this Annual Report.
This note details the Group’s financial risk management policies, processes and quantitative disclosures in relation to the key financial risks.
Key material financial risks
Credit risk
The risk of financial loss resulting from:
a counterparty failing to fulfil its obligations; or
a decrease in credit quality of a counterparty resulting in a
financial loss.
Credit risk incorporates the risks associated with us lending to
customers who could be impacted by climate change, changes to
laws, regulations, or other policies adopted by governments or
regulatory authorities. Climate change impacts include both physical
risks (climate- or weather-related events) and transition risks
resulting from the adjustment to a low emissions
economy. Transition risks include resultant changes to laws,
regulations and policies noted above.
Market risk
The risk to the Group’s earnings arising from:
changes in interest rates, foreign exchange rates, credit spreads,
volatility and correlations; or
fluctuations in bond, commodity or equity prices.
Liquidity and funding risk
The risk that the Group is unable to meet payment obligations as
they fall due, including:
repaying depositors or maturing wholesale debt; or
the Group having insufficient capacity to fund increases in assets.
Key sections applicable to this risk
Credit risk overview, management and control responsibilities
Maximum exposure to credit risk
Concentrations of credit risk
Collateral management
Credit quality
Market risk overview, management and control responsibilities
Measurement of market risk
Foreign currency risk – structural exposure
Equity securities designated at FVOCI
Traded and non-traded market risk
Liquidity risk overview, management and control responsibilities
Key areas of measurement for liquidity risk
Liquidity risk outcomes
Residual contractual maturity analysis of the Group’s liabilities
Currency
Face value Maturity
Next optional call date1
Non-Basel III compliant perpetual subordinated notes issued by ANZBGL2
USD
300m
Perpetual
date
Each semi-annual interest payment
Perpetual subordinated notes issued by ANZ Holdings (New Zealand) Limited3
AUD
800m
Perpetual
2030
Term subordinated notes issued by ANZ Bank New Zealand Limited
NZD
USD
USD
600m
500m
500m
2031
2032
2034
2026
2027
2029
Other subordinated debt4
Interest
rate
Floating
Floating
Fixed
Fixed
Fixed
2024
$m
2023
$m
-
464
800
549
708
747
-
555
720
-
2,804
1,739
1. Subject to APRA’s or RBNZ’s prior approval (as applicable).
2. The USD 300 million perpetual subordinated notes were redeemed by ANZBGL on 31 October 2023.
3. The perpetual subordinated notes were issued by ANZ Holdings (New Zealand) Limited on 18 September 2024 with the proceeds invested in perpetual preference shares issued internally by ANZ Bank
New Zealand (which constitute additional tier 1 capital for ANZ Bank New Zealand for the purposes of RBNZ’s capital requirements but not for the purposes of APRA’s capital requirements).
4. ANZ Bank New Zealand externally issued NZD 550 million of perpetual preference shares on 18 July 2022 and NZD 275 million of perpetual preference shares on 19 March 2024. These perpetual
preference shares constitute AT1 capital for ANZ Bank New Zealand for the purposes of RBNZ’s capital requirements but not for the purposes of APRA’s capital requirements. These preference shares
are included within non-controlling interests in Note 24 Shareholders’ equity.
Recognition and measurement
Debt issuances are initially recognised at fair value and are subsequently measured at amortised cost, except where designated at FVTPL.
Interest expense on debt issuances is recognised using the effective interest rate method. Where the group enters into a fair value hedge
accounting relationship, the fair value attributable to the hedged risk is reflected in adjustments to the carrying value of the debt.
Subordinated debt with capital-based conversion features (i.e. Common Equity Capital Trigger Events or Non-Viability Trigger Events) are
considered to contain embedded derivatives that we account for separately at FVTPL. The embedded derivatives arise because the number
of shares issued on conversion following any of those trigger events is subject to the maximum conversion number, however they have no
significant value as of the reporting date given the remote nature of those trigger events.
148
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150
150
Notes to the consolidated financial statements (continued)
18. Financial risk management (continued)
Overview
An overview of our risk management framework
This overview is provided to aid the users of the financial statements in understanding the context of the financial disclosures required under AASB 7
Financial Instruments: Disclosures. It should be read in conjunction with the Governance and Risk Management sections of this Annual Report.
The Board is responsible for establishing and overseeing the Group’s Risk Management Framework (RMF). The Board has delegated authority to the
Board Risk Committee (BRC) to develop and monitor compliance with the Group’s risk management policies. The BRC reports regularly to the Board on its
activities.
The Board approves the strategic objectives of the Group including:
the Risk Appetite Statement (RAS), which sets out the Board’s expectations regarding the degree of risk that the Group is prepared to accept in pursuit
of its strategic objectives and business plan; and
the Risk Management Strategy (RMS), which describes the Group’s strategy for managing risks and the key elements of the RMF that give effect to this
strategy. This includes a description of each material risk, and an overview of how the RMF addresses each risk, with reference to the relevant policies,
standards and procedures. It also includes information on how the Group identifies, measures, evaluates, monitors, reports and controls or mitigates
material risks.
The Group, through its training and management standards and procedures, aims to maintain a disciplined and robust control environment in which all
employees understand their roles and obligations. At ANZ, risk is everyone’s responsibility.
The Group has an independent risk management function, headed by the Chief Risk Officer who:
is responsible for overseeing the risk profile and the risk management framework;
can effectively challenge activities and decisions that materially affect the Group’s risk profile; and
has an independent reporting line to the BRC to enable the appropriate escalation of issues of concern.
The Internal Audit Function reports directly to the Board Audit Committee (BAC). Internal Audit provides:
an independent evaluation of the Group’s RMF annually that seeks to ensure compliance with, and the effectiveness of, the risk management
framework;
facilitation of a comprehensive review every three years that seeks to ensure the appropriateness, effectiveness and adequacy of the risk
management framework; and
recommendations to improve the framework and/or work practices to strengthen the effectiveness of day-to-day operations.
150
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Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
151
151
18. Financial risk management (continued)
Credit risk
Credit risk overview, management and control responsibilities
Granting credit facilities to customers is one of the Group’s major sources of income. As this activity is also a principal risk, the Group dedicates
considerable resources to its management. The Group assumes credit risk in a wide range of lending and other activities in diverse markets and in many
jurisdictions. Credit risks arise from traditional lending to customers as well as from interbank, treasury, trade finance and capital markets activities around
the world.
Our credit risk management framework ensures we apply a consistent approach across the Group when we measure, monitor and manage the credit risk
appetite set by the Board. The Board is assisted and advised by the BRC in discharging its duty to oversee credit risk. The BRC:
sets the credit risk appetite and credit strategies; and
approves credit transactions beyond the discretion of executive management.
We quantify credit risk through an internal credit rating system (masterscales) to ensure consistency across exposure types and to provide a consistent
framework for reporting and analysis. The system uses models and other tools to measure the following for customer exposures:
Probability of Default (PD)
Exposure at Default (EAD)
Loss Given Default (LGD)
Expressed by a Customer Credit Rating (CCR), reflecting the Group’s assessment of a customer’s ability to
service and repay debt.
The expected balance sheet exposure at default taking into account repayments of principal and interest,
expected additional drawdowns and accrued interest at the time of default.
Expressed by a Security Indicator (SI) ranging from A to G. The SI is calculated by reference to the
percentage of loan covered by security which the Group can realise if a customer defaults. The A-G scale
is supplemented by a range of other SIs which cover factors such as cash cover and sovereign backing.
For retail and some small business lending, we group exposures into large homogenous pools – and the
LGD is assigned at the pool level.
Our specialist credit risk teams develop and validate the Group’s PD and LGD rating models. The outputs from these models drive our day-to-day credit
risk management decisions including origination, pricing, approval levels, regulatory capital adequacy, economic capital allocation, and credit provisioning.
All customers with whom the Group has a credit relationship are assigned a CCR at origination via either of the following assessment approaches:
Large and more complex lending
Retail and some small business lending
Rating models provide a consistent and structured assessment, with
judgement required around the use of out-of-model factors. We
handle credit approval on a dual approval basis, jointly with the
business writer and an independent credit officer.
Automated assessment of credit applications using a combination of
scoring (application and behavioural), policy rules and external credit
reporting information. If the application does not meet the automated
assessment criteria, then it is subject to manual assessment.
We use the Group’s internal CCRs to manage the credit quality of financial assets. To enable wider comparisons, the Group’s CCRs are mapped to
external rating agency scales as follows:
Credit Quality
Description
Internal CCR
ANZ Customer Requirements
Strong
CCR 0+ to 4-
Satisfactory
CCR 5+ to 6-
Weak
CCR 7+ to 8=
Defaulted
CCR 8- to 10
Demonstrated superior stability in their operating and financial
performance over the long-term, and whose earnings capacity
is not significantly vulnerable to foreseeable events.
Demonstrated sound operational and financial stability over the
medium to long-term, even though some may be susceptible to
cyclical trends or variability in earnings.
Demonstrated some operational and financial instability, with
variability and uncertainty in profitability and liquidity projected to
continue over the short and possibly medium term.
When doubt arises as to the collectability of a credit facility, the
financial instrument (or ‘the facility’) is classified as defaulted.
Moody’s
Ratings
Aaa - Baa3
S&P Global
Ratings
AAA - BBB-
Ba1 - B1
BB+ - B+
B2 - Caa
B - CCC
N/A
N/A
151
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152
152
Notes to the consolidated financial statements (continued)
18. Financial risk management (continued)
Credit risk (continued)
Maximum exposure to credit risk
For financial assets recognised on the Balance Sheet, the maximum exposure to credit risk is the carrying amount. In certain circumstances there may be
differences between the carrying amounts reported on the Balance Sheet and the amounts reported in the tables below. Principally, these differences
arise in respect of financial assets that are subject to risks other than credit risk, such as equity instruments which are primarily subject to market risk, or
bank notes and coins.
For undrawn facilities, this maximum exposure to credit risk is the full amount of the committed facilities. For contingent exposures, the maximum exposure
to credit risk is the maximum amount the Group would have to pay if the instrument is called upon.
The table below shows our maximum exposure to credit risk of on-balance sheet and off-balance sheet positions before taking account of any collateral
held or other credit enhancements.
On-balance sheet positions
Net loans and advances
Other financial assets:
Cash and cash equivalents
Settlement balances owed to ANZ
Collateral paid
Trading assets
Derivative financial instruments
Investment securities
- debt securities at amortised cost
- debt securities at FVOCI
- equity securities at FVOCI
- debt securities at FVTPL
Regulatory deposits
Other financial assets2
Total other financial assets
Subtotal
Off-balance sheet positions
Undrawn and contingent facilities3
Reported
2024
$m
2023
$m
Excluded1
2024
$m
2023
$m
Maximum exposure
to credit risk
2024
$m
2023
$m
803,382
707,044
-
-
803,382
707,044
150,967
168,154
5,484
10,090
45,755
54,370
9,349
8,558
37,004
60,406
7,091
7,752
131,944
88,271
1,198
5,484
-
1,070
9,349
-
6,399
4,881
-
-
-
-
-
-
1,351
1,393
1,351
1,393
163
665
13
646
4,506
4,339
-
-
-
-
-
-
149,769
167,084
-
10,090
39,356
54,370
-
8,558
32,123
60,406
7,091
7,752
131,944
88,271
-
163
665
4,506
-
13
646
4,339
412,386
385,885
1,215,768
1,092,929
14,432
14,432
16,693
397,954
369,192
16,693
1,201,336
1,076,236
298,152
290,055
-
-
298,152
290,055
Total
1,513,920
1,382,984
14,432
16,693
1,499,488
1,366,291
1. Coins, notes and cash at bank within Cash and cash equivalents; trade dated assets within Settlement balances owed to ANZ; precious metal exposures and carbon credits within Trading assets; and
equity securities within Investment securities were excluded as they do not have credit risk exposure.
2. Other financial assets mainly comprise accrued interest and acceptances.
3. Undrawn and contingent facilities include guarantees, letters of credit and performance related contingencies, net of collectively assessed and individually assessed allowance for ECL.
152
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
153
153
18. Financial risk management (continued)
Credit risk (continued)
Credit quality
An analysis of the Group’s credit risk exposure is presented in the following tables based on the Group’s internal credit quality rating by stage without
taking account of the effects of any collateral or other credit enhancements:
Net loans and advances
As at 30 September 2024
Strong
Satisfactory
Weak
Defaulted
Gross loans and advances at amortised cost
Allowance for ECL
Net loans and advances at amortised cost
Coverage ratio
Loans and advances at FVTPL
Loans and advances purchased credit impaired1
Unearned income
Capitalised brokerage and other origination costs
Net carrying amount
As at 30 September 2023
Strong
Satisfactory
Weak
Defaulted
Gross loans and advances at amortised cost
Allowance for ECL
Net loans and advances at amortised cost
Coverage ratio
Loans and advances at FVTPL
Unearned income
Capitalised brokerage and other origination costs
Net carrying amount
Stage 3
Stage 1
$m
Stage 2
$m
Collectively
assessed
$m
Individually
assessed
$m
484,593
188,825
15,538
-
688,956
(1,276)
687,680
0.19%
410,933
193,170
11,306
-
615,409
(1,227)
614,182
0.20%
17,072
46,940
18,222
-
82,234
(1,653)
80,581
2.01%
17,063
37,977
10,398
-
65,438
(1,624)
63,814
2.48%
-
-
-
5,976
5,976
(443)
5,533
-
-
-
832
832
(303)
529
7.41%
36.42%
-
-
-
3,858
3,858
(329)
3,529
-
-
-
1,037
1,037
(366)
671
8.53%
35.29%
1. Represents Stage 3 exposures from Suncorp Bank at the date of acquisition recognised net of allowance for ECL.
Total
$m
501,665
235,765
33,760
6,808
777,998
(3,675)
774,323
0.47%
24,786
551
(515)
4,237
803,382
427,996
231,147
21,704
4,895
685,742
(3,546)
682,196
0.52%
21,888
(515)
3,475
707,044
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ANZ 2024 Annual Report
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154
154
Notes to the consolidated financial statements (continued)
Notes to the Financial Statements
Financial report
155
18. Financial risk management (continued)
Credit risk (continued)
18. Financial risk management (continued)
Credit risk (continued)
Off-balance sheet commitments - undrawn and contingent facilities
Investment securities - debt securities at amortised cost
As at 30 September 2024
Strong
Satisfactory
Weak
Defaulted
Gross undrawn and contingent facilities subject to ECL
Allowance for ECL included in Other provisions (refer to Note 23)
Net undrawn and contingent facilities subject to ECL
Coverage ratio
Undrawn and contingent facilities not subject to ECL1
Net undrawn and contingent facilities
As at 30 September 2023
Strong
Satisfactory
Weak
Defaulted
Gross undrawn and contingent facilities subject to ECL
Allowance for ECL included in Other provisions (refer to Note 23)
Net undrawn and contingent facilities subject to ECL
Coverage ratio
Undrawn and contingent facilities not subject to ECL1
Net undrawn and contingent facilities
1. Commitments that can be unconditionally cancelled at any time without notice.
Stage 3
Stage 1
$m
Stage 2
$m
Collectively
assessed
$m
Individually
assessed
$m
200,720
26,496
880
-
228,096
(658)
227,438
0.29%
189,980
30,007
975
-
220,962
(630)
220,332
0.29%
1,497
3,249
931
-
5,677
(156)
5,521
2.75%
1,234
4,276
746
-
6,256
(162)
6,094
2.59%
-
-
-
101
101
(27)
74
-
-
-
26
26
(5)
21
26.73%
19.23%
-
-
-
79
79
(25)
54
-
-
-
47
47
(10)
37
31.65%
21.28%
Total
$m
202,217
29,745
1,811
127
233,900
(846)
233,054
0.36%
65,098
298,152
191,214
34,283
1,721
126
227,344
(827)
226,517
0.36%
63,538
290,055
As at 30 September 2024
Strong
Satisfactory
Weak
Allowance for ECL
Coverage ratio
Strong
Satisfactory
Weak
Allowance for ECL
Coverage ratio
As at 30 September 2023
Gross investment securities - debt securities at amortised cost
Net investment securities - debt securities at amortised cost
Gross investment securities - debt securities at amortised cost
Net investment securities - debt securities at amortised cost
Stage 3
Stage 1
$m
Stage 2
$m
Collectively
assessed
Individually
assessed
$m
$m
5,535
72
1,518
7,125
(34)
7,091
0.48%
6,117
112
1,558
7,787
(35)
7,752
0.45%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$m
5,535
72
1,518
7,125
(34)
7,091
0.48%
6,117
112
1558
7,787
(35)
7,752
0.45%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
154
155
ANZ 2024 Annual Report
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ANZ 2024 Annual Report
154
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
18. Financial risk management (continued)
Credit risk (continued)
18. Financial risk management (continued)
Credit risk (continued)
Off-balance sheet commitments - undrawn and contingent facilities
Investment securities - debt securities at amortised cost
Shareholder
Notes to the Financial Statements
information
Financial report
155
155
As at 30 September 2024
Strong
Satisfactory
Weak
Defaulted
Gross undrawn and contingent facilities subject to ECL
Allowance for ECL included in Other provisions (refer to Note 23)
Net undrawn and contingent facilities subject to ECL
Coverage ratio
Undrawn and contingent facilities not subject to ECL1
Net undrawn and contingent facilities
As at 30 September 2023
Strong
Satisfactory
Weak
Defaulted
Gross undrawn and contingent facilities subject to ECL
Allowance for ECL included in Other provisions (refer to Note 23)
Net undrawn and contingent facilities subject to ECL
Coverage ratio
Undrawn and contingent facilities not subject to ECL1
Net undrawn and contingent facilities
1. Commitments that can be unconditionally cancelled at any time without notice.
Stage 3
Stage 1
Stage 2
Collectively
assessed
Individually
assessed
$m
$m
$m
$m
200,720
26,496
880
-
228,096
(658)
227,438
0.29%
189,980
30,007
975
-
220,962
(630)
220,332
0.29%
1,497
3,249
931
-
5,677
(156)
5,521
2.75%
1,234
4,276
746
-
6,256
(162)
6,094
2.59%
-
-
-
101
101
(27)
74
-
-
-
79
79
(25)
54
26.73%
19.23%
31.65%
21.28%
-
-
-
26
26
(5)
21
-
-
-
47
47
(10)
37
Total
$m
202,217
29,745
1,811
127
233,900
(846)
233,054
0.36%
65,098
298,152
191,214
34,283
1,721
126
227,344
(827)
226,517
0.36%
63,538
290,055
As at 30 September 2024
Strong
Satisfactory
Weak
Gross investment securities - debt securities at amortised cost
Allowance for ECL
Net investment securities - debt securities at amortised cost
Coverage ratio
As at 30 September 2023
Strong
Satisfactory
Weak
Gross investment securities - debt securities at amortised cost
Allowance for ECL
Net investment securities - debt securities at amortised cost
Coverage ratio
Stage 3
Stage 1
$m
Stage 2
$m
Collectively
assessed
$m
Individually
assessed
$m
5,535
72
1,518
7,125
(34)
7,091
0.48%
6,117
112
1,558
7,787
(35)
7,752
0.45%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$m
5,535
72
1,518
7,125
(34)
7,091
0.48%
6,117
112
1558
7,787
(35)
7,752
0.45%
154
155
ANZ 2024 Annual Report
ANZ 2024 Annual Report
156
156
Notes to the consolidated financial statements (continued)
Notes to the Financial Statements
Financial report
157
18. Financial risk management (continued)
Credit risk (continued)
Investment securities - debt securities at FVOCI
As at 30 September 2024
Strong
Satisfactory
Investment securities - debt securities at FVOCI
Allowance for ECL recognised in Other comprehensive income
Coverage ratio
As at 30 September 2023
Strong
Satisfactory
Investment securities - debt securities at FVOCI
Allowance for ECL recognised in Other comprehensive income
Coverage ratio
Stage 3
Stage 1
$m
Stage 2
$m
Collectively
assessed
$m
Individually
assessed
$m
131,944
-
131,944
(20)
0.02%
88,271
-
88,271
(15)
0.02%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$m
131,944
-
131,944
(20)
0.02%
88,271
-
88,271
(15)
0.02%
18. Financial risk management (continued)
Credit risk (continued)
Other financial assets
Strong
Satisfactory1
Weak
Defaulted
Total carrying amount
1. Includes Investment Securities - debt securities at FVTPL of $163 million (2023: $13 million) for the Group.
250,416
269,934
2024
$m
7,969
534
-
2023
$m
2,592
604
-
258,919
273,130
Concentrations of credit risk
Credit risk becomes concentrated when a number of customers are engaged in similar activities, have similar economic characteristics, or have similar
activities within the same geographic region – therefore, they may be similarly affected by changes in economic or other conditions. The Group monitors
its credit portfolio to manage risk concentration and rebalance the portfolio. The Group also applies single customer counterparty limits to protect against
unacceptably large exposures to one single customer.
Composition of financial instruments that give rise to credit risk by industry group are presented below:
Loans
and advances
Other financial
assets
Off-balance sheet
credit related
commitments
Total
2024
$m
2023
$m
2024
$m
2024
$m
2023
$m
2024
$m
2023
$m
Agriculture, forestry, fishing and mining
41,558
35,797
16,187
16,707
58,633
53,116
Business services
Construction
Electricity, gas and water supply
6,015
4,594
8,517
8,138
5,506
8,626
8,469
8,806
7,003
14,616
15,348
7,212
13,429
12,754
463
12,742
11,837
22,098
20,926
Entertainment, leisure and tourism
13,326
13,486
78
3,941
3,889
17,361
17,453
Financial, investment and insurance
80,270
77,454
242,792
278,153
61,229
62,409
384,291
418,016
Government and official institutions
15,861
8,300
122,570
80,544
1,214
1,075
139,645
89,919
Manufacturing
Personal lending
Property services
Retail trade
Transport and storage
Wholesale trade
Other
Gross total
Allowance for ECL
Subtotal
Unearned income
27,470
30,261
708
1,287
46,004
47,302
74,182
78,850
485,404
392,702
1,394
62,513
59,185
549,444
453,281
59,963
57,414
9,300
12,900
10,764
12,110
13,078
12,538
439
113
369
660
20,349
17,503
81,808
75,356
8,150
9,099
8,131
17,535
21,144
9,215
20,680
21,694
25,149
25,783
38,728
38,981
27,215
32,398
25,510
4,872
15,146
13,631
67,871
50,901
803,335
707,630
397,988
369,227
298,998
290,882 1,500,321 1,367,739
(3,675)
(3,546)
(34)
(35)
(846)
(827)
(4,555)
(4,408)
799,660
704,084
397,954
369,192
298,152
290,055 1,495,766 1,363,331
(515)
4,237
(515)
3,475
-
-
-
-
-
-
-
-
(515)
4,237
(515)
3,475
Capitalised brokerage and other origination costs
Maximum exposure to credit risk
803,382
707,044
397,954
369,192
298,152
290,055 1,499,488 1,366,291
2023
$m
612
207
36
888
132
29
839
94
1,527
1,496
85
817
501
156
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156
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
157
157
18. Financial risk management (continued)
Credit risk (continued)
Investment securities - debt securities at FVOCI
Stage 3
Stage 1
Stage 2
Collectively
assessed
Individually
assessed
$m
$m
$m
$m
Investment securities - debt securities at FVOCI
Allowance for ECL recognised in Other comprehensive income
As at 30 September 2024
Strong
Satisfactory
Coverage ratio
As at 30 September 2023
Strong
Satisfactory
Investment securities - debt securities at FVOCI
Allowance for ECL recognised in Other comprehensive income
Coverage ratio
131,944
-
131,944
(20)
0.02%
88,271
-
88,271
(15)
0.02%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$m
131,944
-
131,944
(20)
0.02%
88,271
-
88,271
(15)
0.02%
-
-
-
-
-
-
-
-
-
-
18. Financial risk management (continued)
Credit risk (continued)
Other financial assets
Strong
Satisfactory1
Weak
Defaulted
Total carrying amount
1. Includes Investment Securities - debt securities at FVTPL of $163 million (2023: $13 million) for the Group.
2024
$m
2023
$m
250,416
269,934
7,969
534
-
2,592
604
-
258,919
273,130
Concentrations of credit risk
Credit risk becomes concentrated when a number of customers are engaged in similar activities, have similar economic characteristics, or have similar
activities within the same geographic region – therefore, they may be similarly affected by changes in economic or other conditions. The Group monitors
its credit portfolio to manage risk concentration and rebalance the portfolio. The Group also applies single customer counterparty limits to protect against
unacceptably large exposures to one single customer.
Composition of financial instruments that give rise to credit risk by industry group are presented below:
Loans
and advances
Other financial
assets
Off-balance sheet
credit related
commitments
Total
2024
$m
2023
$m
2024
$m
Agriculture, forestry, fishing and mining
41,558
35,797
Business services
Construction
Electricity, gas and water supply
6,015
4,594
8,517
8,138
5,506
8,626
Entertainment, leisure and tourism
13,326
13,486
888
132
29
839
94
2023
$m
612
207
36
2024
$m
2023
$m
2024
$m
2023
$m
16,187
16,707
58,633
53,116
8,469
8,806
7,003
14,616
15,348
7,212
13,429
12,754
463
12,742
11,837
22,098
20,926
78
3,941
3,889
17,361
17,453
Financial, investment and insurance
80,270
77,454
242,792
278,153
61,229
62,409
384,291
418,016
Government and official institutions
15,861
8,300
122,570
80,544
1,214
1,075
139,645
89,919
Manufacturing
Personal lending
Property services
Retail trade
Transport and storage
Wholesale trade
Other
Gross total
Allowance for ECL
Subtotal
Unearned income
Capitalised brokerage and other origination costs
27,470
30,261
708
1,287
46,004
47,302
74,182
78,850
485,404
392,702
59,963
57,414
9,300
12,900
10,764
12,110
13,078
12,538
1,527
1,496
85
817
501
1,394
62,513
59,185
549,444
453,281
439
113
369
660
20,349
17,503
81,808
75,356
8,150
9,099
8,131
17,535
21,144
9,215
20,680
21,694
25,149
25,783
38,728
38,981
27,215
32,398
25,510
4,872
15,146
13,631
67,871
50,901
803,335
707,630
397,988
369,227
298,998
290,882 1,500,321 1,367,739
(3,675)
(3,546)
(34)
(35)
(846)
(827)
(4,555)
(4,408)
799,660
704,084
397,954
369,192
298,152
290,055 1,495,766 1,363,331
(515)
4,237
(515)
3,475
-
-
-
-
-
-
-
-
(515)
4,237
(515)
3,475
Maximum exposure to credit risk
803,382
707,044
397,954
369,192
298,152
290,055 1,499,488 1,366,291
156
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158
158
Notes to the consolidated financial statements (continued)
18. Financial risk management (continued)
Credit risk (continued)
Collateral management
We use collateral for on and off-balance sheet exposures to mitigate credit risk if a counterparty cannot meet its repayment obligations. Where there is
sufficient collateral, an expected credit loss is not recognised. This is largely the case for certain lending products, such as margin loans and reverse
repurchase agreements that are secured by the securities purchased using the lending. For some products, the collateral provided by customers is
fundamental to the product’s structuring, so it is not strictly the secondary source of repayment - for example, lending secured by trade receivables is
typically repaid by the collection of those receivables. During the period there was no change in our collateral policies.
The nature of collateral or security held for the relevant classes of financial assets is as follows:
Net loans and advances
Loans - housing and
personal
Housing loans are secured by mortgage(s) over property and additional security may take the form of
guarantees and deposits.
Personal lending (including credit cards and overdrafts) is predominantly unsecured. If we take security, then it
is restricted to eligible vehicles, motor homes and other assets.
Loans - business
Business loans may be secured, partially secured or unsecured. Typically, we take security by way of a
mortgage over property and/or a charge over the business or other assets.
If appropriate, we may take other security to mitigate the credit risk, such as guarantees, standby letters of
credit or derivative protection.
Other financial assets
Trading assets, Investment
securities, Derivatives and
Other financial assets
For trading assets, we do not seek collateral directly from the issuer or counterparty. However, the collateral
may be implicit in the terms of the instrument (for example, with an asset-backed security). The terms of debt
securities may include collateralisation.
For derivatives we will have large individual exposures to single name counterparties such as central clearing
houses, financial institutions, and other institutional clients. Open derivative positions with these counterparties
are aggregated and cash collateral (or other forms of eligible collateral) is exchanged daily through the
respective Credit Support Annex agreements. The collateral is provided by the counterparty when their position
is out of the money (or provided to the counterparty by the Group when our position is out of the money).
Credit risk will remain where the full amount of the derivative exposure is not covered by any collateral.
Off-balance sheet positions
Undrawn and contingent
facilities
Collateral for off-balance sheet positions is mainly held against undrawn facilities, and they are typically
performance bonds or guarantees. Undrawn facilities that are secured include housing loans secured by
mortgages over residential property and business lending secured by commercial real estate and/or charges
over business assets.
The table below shows the estimated value of collateral we hold and the net unsecured portion of credit exposures:
Net loans and advances
Other financial assets
Off-balance sheet positions
Maximum exposure to credit risk
Total value of collateral1
2024
$m
803,382
397,954
298,152
2023
$m
707,044
369,192
290,055
2024
$m
2023
$m
667,130
569,283
51,732
80,258
38,612
65,723
Total
1,499,488
1,366,291
799,120
673,618
Unsecured portion of
credit exposure
2024
$m
136,252
346,222
217,894
700,368
2023
$m
137,761
330,580
224,332
692,673
1.
In estimating the value of collateral for housing loans, customers are assumed to be meeting their insurance obligations for the properties over which the mortgages are secured.
158
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158
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
159
159
Loans - housing and
Housing loans are secured by mortgage(s) over property and additional security may take the form of
Management, measurement and reporting of market risk is undertaken in two broad categories:
Traded Market Risk
Non-Traded Market Risk
18. Financial risk management (continued)
Market risk
Market risk overview, management and control responsibilities
Market risk stems from the Group’s trading and balance sheet management activities and the impact of changes and correlations between interest rates,
foreign exchange rates, credit spreads, commodities, equities and the volatility within these asset classes.
The BRC delegates responsibility for day-to-day management of both market risks and compliance with market risk policies to the Credit and Market Risk
Committee (CMRC) and the Group Asset and Liability Committee (GALCO).
Within overall strategies and policies established by the BRC, business units and risk management have joint responsibility for the control of market risk at
the Group level. The Market Risk team (a specialist risk management unit independent of the business) allocates market risk limits at various levels and
monitors and reports on them daily. This detailed framework allocates individual limits to manage and control exposures using risk factors and profit and
loss limits.
Risk of loss from changes in the value of financial instruments due to
movements in price factors for both physical and derivative trading
positions. Principal risk categories monitored are:
1. Currency risk – potential loss arising from changes in foreign
exchange rates or their implied volatilities.
2. Interest rate risk – potential loss from changes in market interest
rates or their implied volatilities.
3. Credit spread risk – potential loss arising from a movement in
margin or spread relative to a benchmark.
4. Commodity risk – potential loss arising from changes in
commodity prices or their implied volatilities.
5. Equity risk – potential loss arising from changes in equity prices.
Risk of loss associated with the management of non-traded interest rate risk,
liquidity risk and foreign exchange exposures. This includes interest rate risk in
the banking book. This risk of loss arises from adverse changes in the overall
and relative level of interest rates for different tenors, differences in the actual
versus expected net interest margin, and the potential valuation risk associated
with embedded options in financial instruments and bank products.
Measurement of market risk
We primarily manage and control market risk using Value at Risk (VaR), sensitivity analysis and stress testing.
VaR measures the Group’s possible daily loss based on historical market movements. The Group’s VaR approach for both traded and non-traded risk is
historical simulation. We use historical changes in market rates, prices and volatilities over a 500 business day window using a one-day holding period.
Back testing is used to ensure our VaR models remain accurate.
The Group measures VaR at a 99% confidence interval which means there is a 99% chance that a loss will not exceed the VaR for the relevant holding
period.
18. Financial risk management (continued)
Credit risk (continued)
Collateral management
We use collateral for on and off-balance sheet exposures to mitigate credit risk if a counterparty cannot meet its repayment obligations. Where there is
sufficient collateral, an expected credit loss is not recognised. This is largely the case for certain lending products, such as margin loans and reverse
repurchase agreements that are secured by the securities purchased using the lending. For some products, the collateral provided by customers is
fundamental to the product’s structuring, so it is not strictly the secondary source of repayment - for example, lending secured by trade receivables is
typically repaid by the collection of those receivables. During the period there was no change in our collateral policies.
The nature of collateral or security held for the relevant classes of financial assets is as follows:
Net loans and advances
personal
guarantees and deposits.
Personal lending (including credit cards and overdrafts) is predominantly unsecured. If we take security, then it
is restricted to eligible vehicles, motor homes and other assets.
Loans - business
Business loans may be secured, partially secured or unsecured. Typically, we take security by way of a
mortgage over property and/or a charge over the business or other assets.
If appropriate, we may take other security to mitigate the credit risk, such as guarantees, standby letters of
credit or derivative protection.
Other financial assets
Trading assets, Investment
For trading assets, we do not seek collateral directly from the issuer or counterparty. However, the collateral
securities, Derivatives and
may be implicit in the terms of the instrument (for example, with an asset-backed security). The terms of debt
Other financial assets
securities may include collateralisation.
For derivatives we will have large individual exposures to single name counterparties such as central clearing
houses, financial institutions, and other institutional clients. Open derivative positions with these counterparties
are aggregated and cash collateral (or other forms of eligible collateral) is exchanged daily through the
respective Credit Support Annex agreements. The collateral is provided by the counterparty when their position
is out of the money (or provided to the counterparty by the Group when our position is out of the money).
Credit risk will remain where the full amount of the derivative exposure is not covered by any collateral.
Off-balance sheet positions
Undrawn and contingent
Collateral for off-balance sheet positions is mainly held against undrawn facilities, and they are typically
facilities
performance bonds or guarantees. Undrawn facilities that are secured include housing loans secured by
mortgages over residential property and business lending secured by commercial real estate and/or charges
over business assets.
The table below shows the estimated value of collateral we hold and the net unsecured portion of credit exposures:
Maximum exposure to credit risk
Total value of collateral1
2024
$m
803,382
397,954
298,152
2023
$m
707,044
369,192
290,055
2024
$m
2023
$m
667,130
569,283
51,732
80,258
38,612
65,723
1,499,488
1,366,291
799,120
673,618
Unsecured portion of
credit exposure
2024
$m
136,252
346,222
217,894
700,368
2023
$m
137,761
330,580
224,332
692,673
Net loans and advances
Other financial assets
Off-balance sheet positions
Total
1.
In estimating the value of collateral for housing loans, customers are assumed to be meeting their insurance obligations for the properties over which the mortgages are secured.
158
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160
160
Notes to the consolidated financial statements (continued)
18. Financial risk management (continued)
Market risk (continued)
Traded and non-traded market risk
Traded market risk
The table below shows the traded market risk VaR on a diversified basis by risk categories:
Total
Group
2024
As at
$m
3.2
6.5
5.7
3.3
-
(10.0)
8.7
Total Group (excl. Suncorp Bank)2
2024
2023
As at
$m
High for
year
$m
Low for
year
$m
Average
for year
$m
As at
$m
High for
year
$m
Low for
year
$m
Average
for year
$m
3.2
6.4
5.7
3.3
-
(9.9)
8.7
11.5
19.2
8.1
5.0
-
n/a
22.5
2.2
4.8
4.2
1.8
-
n/a
8.0
5.0
8.7
6.7
2.9
-
(10.2)
13.1
2.8
6.7
5.9
4.0
-
(9.7)
9.7
6.2
18.3
7.7
6.6
-
n/a
18.2
1.6
5.1
2.5
1.8
-
n/a
7.2
3.0
8.5
4.5
3.0
-
(8.1)
10.9
Traded value at risk 99% confidence
Foreign exchange
Interest rate
Credit
Commodities
Equity
Diversification benefit1
Total VaR
1. The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low VaR reported
for the Group as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table.
2. Excludes the 2 months of immaterial Suncorp Bank VaR impacts post-acquisition.
Non-traded market risk
Balance sheet risk management
The principal objectives of balance sheet risk management are to maintain acceptable levels of interest rate and liquidity risk to mitigate the negative
impact of movements in interest rates on the earnings and market value of the Group’s banking book, while ensuring the Group maintains sufficient
liquidity to meet its obligations as they fall due.
Interest rate risk management
Non-traded interest rate risk relates to the potential adverse impact of changes in market interest rates on the Group’s future Net interest income. This risk
arises from two principal sources, namely mismatches between the repricing dates of interest bearing assets and liabilities; and the investment of capital
and other non-interest bearing liabilities and assets. Interest rate risk is reported using VaR and scenario analysis (based on the impact of a 1% rate
shock). The table below shows VaR figures for non-traded interest rate risk for the combined Group as well as Australia, New Zealand and Rest of World
geographies which are calculated separately.
Total
Group
2024
As at
$m
96.8
27.4
32.9
(62.2)
94.9
Total Group (excl. Suncorp Bank)2
2024
2023
As at
$m
High for
year
$m
Low for
year
$m
Average
for year
$m
As at
$m
High for
year
$m
Low for
year
$m
Average
for year
$m
97.7
27.4
32.9
(63.0)
95.0
97.7
28.2
39.5
70.8
24.3
29.0
78.9
25.9
34.8
81.2
35.3
32.2
93.2
35.3
32.8
72.0
26.1
23.2
82.2
31.1
27.9
n/a
n/a
(46.9)
(52.6)
n/a
n/a
(45.6)
99.5
81.3
92.7
96.1
101.5
86.4
95.6
Non-traded value at risk 99% confidence
Australia
New Zealand
Rest of World
Diversification benefit1
Total VaR
1. The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low VaR reported
for the Group as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table.
2. Excludes the 2 months of immaterial Suncorp Bank VaR impacts post-acquisition.
160
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160
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
161
161
18. Financial risk management (continued)
Market risk (continued)
Traded and non-traded market risk
Traded market risk
The table below shows the traded market risk VaR on a diversified basis by risk categories:
Total Group (excl. Suncorp Bank)2
2024
2023
As at
$m
year
$m
High for
Low for
High for
Low for
Average
for year
$m
year
$m
As at
$m
year
$m
Average
for year
$m
year
$m
3.2
6.4
5.7
3.3
-
(9.9)
8.7
11.5
19.2
8.1
5.0
-
n/a
22.5
2.2
4.8
4.2
1.8
-
n/a
8.0
5.0
8.7
6.7
2.9
-
(10.2)
13.1
2.8
6.7
5.9
4.0
-
(9.7)
9.7
6.2
18.3
7.7
6.6
-
n/a
18.2
1.6
5.1
2.5
1.8
-
n/a
7.2
3.0
8.5
4.5
3.0
-
(8.1)
10.9
18. Financial risk management (continued)
Market risk (continued)
We undertake scenario analysis to stress test the impact of extreme events on the Group’s market risk exposures (excluding Suncorp Bank). We model a
1% overnight parallel positive shift in the yield curve to determine the potential impact on our Net interest income over the next 12 months. This is a
standard risk measure which assumes the parallel shift is reflected in all wholesale and customer rates.
The table below shows the outcome of this risk measure for the current and previous financial years, expressed as a percentage of reported Net interest
income.
Impact of 1% rate shock on the next 12 months' net interest income
As at period end
Maximum exposure
Minimum exposure
Average exposure (in absolute terms)
Equity securities designated at FVOCI
2024
2023
0.68%
1.20%
0.27%
0.78%
0.96%
1.17%
0.38%
0.80%
Our investment securities contain equity investment holdings which predominantly comprise Bank of Tianjin and other unlisted equities. The market risk
impact on these equity investments is not captured by the Group’s VaR processes for traded and non-traded market risks. Therefore, the Group regularly
reviews the valuations of the investments within the portfolio and assesses whether the investments are appropriately measured based on the recognition
and measurement policies set out in Note 12 Investment securities.
1. The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low VaR reported
for the Group as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table.
Foreign currency risk – structural exposures
Our investment of capital in foreign operations - for example, branches, subsidiaries or associates with functional currencies other than the Australian
Dollar - exposes the Group to the risk of changes in foreign exchange rates. Variations in the value of these foreign operations arising as a result of
exchange differences are reflected in the foreign currency translation reserve in equity. Where considered appropriate, the Group enters into hedges of
the foreign exchange exposures from its foreign operations.
Similarly, the Group may enter into economic hedges against larger foreign exchange denominated revenue streams (primarily New Zealand Dollar, US
Dollar and US Dollar correlated). The primary objective of hedging is to ensure that, if practical, the effect of changes in foreign exchange rates on the
consolidated capital ratios are minimised.
Traded value at risk 99% confidence
Foreign exchange
Interest rate
Credit
Commodities
Equity
Diversification benefit1
Total VaR
2. Excludes the 2 months of immaterial Suncorp Bank VaR impacts post-acquisition.
Non-traded market risk
Balance sheet risk management
liquidity to meet its obligations as they fall due.
Interest rate risk management
Total
Group
2024
As at
$m
3.2
6.5
5.7
3.3
-
(10.0)
8.7
Total
Group
2024
As at
$m
96.8
27.4
32.9
(62.2)
94.9
The principal objectives of balance sheet risk management are to maintain acceptable levels of interest rate and liquidity risk to mitigate the negative
impact of movements in interest rates on the earnings and market value of the Group’s banking book, while ensuring the Group maintains sufficient
Non-traded interest rate risk relates to the potential adverse impact of changes in market interest rates on the Group’s future Net interest income. This risk
arises from two principal sources, namely mismatches between the repricing dates of interest bearing assets and liabilities; and the investment of capital
and other non-interest bearing liabilities and assets. Interest rate risk is reported using VaR and scenario analysis (based on the impact of a 1% rate
shock). The table below shows VaR figures for non-traded interest rate risk for the combined Group as well as Australia, New Zealand and Rest of World
geographies which are calculated separately.
Non-traded value at risk 99% confidence
Australia
New Zealand
Rest of World
Diversification benefit1
Total VaR
Total Group (excl. Suncorp Bank)2
2024
2023
As at
$m
year
$m
High for
Low for
High for
Low for
Average
for year
$m
year
$m
As at
$m
year
$m
Average
for year
$m
year
$m
97.7
27.4
32.9
(63.0)
95.0
97.7
28.2
39.5
70.8
24.3
29.0
78.9
25.9
34.8
81.2
35.3
32.2
93.2
35.3
32.8
72.0
26.1
23.2
82.2
31.1
27.9
n/a
n/a
(46.9)
(52.6)
n/a
n/a
(45.6)
99.5
81.3
92.7
96.1
101.5
86.4
95.6
1. The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low VaR reported
for the Group as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table.
2. Excludes the 2 months of immaterial Suncorp Bank VaR impacts post-acquisition.
160
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162
162
Notes to the consolidated financial statements (continued)
18. Financial risk management (continued)
Liquidity and funding risk
Liquidity risk overview, management and control responsibilities
Liquidity risk is the risk that the Group is either:
unable to meet its payment obligations (including repaying depositors or maturing wholesale debt) when they fall due; or
does not have the appropriate amount, tenor and composition of funding and liquidity to fund increases in its assets.
Management of liquidity and funding risks are overseen by GALCO. The Group’s liquidity and funding risks are governed by a set of Board-approved
principles and include:
maintaining the ability to meet all payment obligations in the immediate term;
ensuring that the Group maintains Board-approved ‘survival horizons’ under a range of idiosyncratic, and general market, liquidity stress scenarios, at a
country and Group-wide level, to meet cash flow obligations over the short to medium term;
maintaining strength in the Group’s balance sheet structure to ensure long term resilience in the liquidity and funding risk profile;
ensuring the liquidity management framework is compatible with local regulatory requirements;
preparing daily liquidity reports and scenario analysis to quantify the Group’s positions;
targeting a diversified funding base to avoid undue concentrations by investor type, maturity, market source and currency;
holding a portfolio of high quality liquid assets to protect against adverse funding conditions and to support day-to-day operations; and
establishing detailed contingency plans to cover different liquidity crisis events.
The Group operates under a non-operating holding company structure whereby:
ANZBGL’s liquidity risk management framework remains unchanged and continues to operate its own liquidity and funding program, governance
frameworks and reporting regime reflecting its authorised deposit-taking institution (ADI) operations;
ANZGHL (parent entity) has no material liquidity risk given the structure and nature of the balance sheet; and
ANZ Non-Bank Group is not expected to have separate funding arrangements and will rely on ANZGHL for funding.
A separate liquidity policy has been established for ANZGHL and ANZBGL Group to reflect the differing nature of liquidity risk inherent in each business
model. ANZGHL will ensure that the parent entity and ANZ Non-Bank Group holds sufficient cash reserves to meet operating and financing requirements.
Key areas of measurement for liquidity risk
Scenario modelling of funding sources
ANZBGL Group’s liquidity risk appetite is defined by a range of regulatory and internal liquidity metrics mandated by the ANZBGL Board. The metrics cover
a range of scenarios of varying duration and level of severity.
The objective of this framework is to:
Provide protection against shorter term extreme market dislocation and stress.
Maintain structural strength in the balance sheet by ensuring that an appropriate amount of longer-term assets are funded with longer-term funding.
Ensure that no undue timing concentrations exist in the ANZBGL Group’s funding profile.
Key components of this framework include the Liquidity Coverage Ratio (LCR), which is a severe short term liquidity stress scenario, the Net Stable Funding
Ratio (NSFR), a longer-term structural liquidity measure (both of which are mandated by banking regulators including APRA), and internally-developed
liquidity scenarios for stress-testing purposes.
Liquid assets
ANZBGL Group holds a portfolio of high quality (unencumbered) liquid assets to protect ANZBGL Group’s liquidity position in a severely stressed
environment and to meet regulatory requirements. High quality liquid assets comprise three categories consistent with Basel III LCR requirements:
Highest-quality liquid assets - cash and highest credit quality government, central bank or public sector securities eligible for repurchase with central
banks to provide same-day liquidity.
High-quality liquid assets - high credit quality government, central bank or public sector securities, high quality corporate debt securities and high
quality covered bonds eligible for repurchase with central banks to provide same-day liquidity.
Alternative liquid assets (ALA) - eligible securities that the RBNZ will accept in its domestic market operations and asset qualifying as collateral for the
CLF.
ANZBGL Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and
the risk appetite set by the ANZBGL Board.
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162
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
163
163
18. Financial risk management (continued)
Liquidity and funding risk
Liquidity risk overview, management and control responsibilities
Liquidity risk is the risk that the Group is either:
unable to meet its payment obligations (including repaying depositors or maturing wholesale debt) when they fall due; or
does not have the appropriate amount, tenor and composition of funding and liquidity to fund increases in its assets.
Management of liquidity and funding risks are overseen by GALCO. The Group’s liquidity and funding risks are governed by a set of Board-approved
principles and include:
maintaining the ability to meet all payment obligations in the immediate term;
ensuring that the Group maintains Board-approved ‘survival horizons’ under a range of idiosyncratic, and general market, liquidity stress scenarios, at a
country and Group-wide level, to meet cash flow obligations over the short to medium term;
maintaining strength in the Group’s balance sheet structure to ensure long term resilience in the liquidity and funding risk profile;
ensuring the liquidity management framework is compatible with local regulatory requirements;
preparing daily liquidity reports and scenario analysis to quantify the Group’s positions;
targeting a diversified funding base to avoid undue concentrations by investor type, maturity, market source and currency;
holding a portfolio of high quality liquid assets to protect against adverse funding conditions and to support day-to-day operations; and
establishing detailed contingency plans to cover different liquidity crisis events.
The Group operates under a non-operating holding company structure whereby:
ANZBGL’s liquidity risk management framework remains unchanged and continues to operate its own liquidity and funding program, governance
frameworks and reporting regime reflecting its authorised deposit-taking institution (ADI) operations;
ANZGHL (parent entity) has no material liquidity risk given the structure and nature of the balance sheet; and
ANZ Non-Bank Group is not expected to have separate funding arrangements and will rely on ANZGHL for funding.
A separate liquidity policy has been established for ANZGHL and ANZBGL Group to reflect the differing nature of liquidity risk inherent in each business
model. ANZGHL will ensure that the parent entity and ANZ Non-Bank Group holds sufficient cash reserves to meet operating and financing requirements.
Key areas of measurement for liquidity risk
Scenario modelling of funding sources
a range of scenarios of varying duration and level of severity.
The objective of this framework is to:
ANZBGL Group’s liquidity risk appetite is defined by a range of regulatory and internal liquidity metrics mandated by the ANZBGL Board. The metrics cover
Provide protection against shorter term extreme market dislocation and stress.
Maintain structural strength in the balance sheet by ensuring that an appropriate amount of longer-term assets are funded with longer-term funding.
Ensure that no undue timing concentrations exist in the ANZBGL Group’s funding profile.
Key components of this framework include the Liquidity Coverage Ratio (LCR), which is a severe short term liquidity stress scenario, the Net Stable Funding
Ratio (NSFR), a longer-term structural liquidity measure (both of which are mandated by banking regulators including APRA), and internally-developed
liquidity scenarios for stress-testing purposes.
Liquid assets
ANZBGL Group holds a portfolio of high quality (unencumbered) liquid assets to protect ANZBGL Group’s liquidity position in a severely stressed
environment and to meet regulatory requirements. High quality liquid assets comprise three categories consistent with Basel III LCR requirements:
Highest-quality liquid assets - cash and highest credit quality government, central bank or public sector securities eligible for repurchase with central
banks to provide same-day liquidity.
High-quality liquid assets - high credit quality government, central bank or public sector securities, high quality corporate debt securities and high
quality covered bonds eligible for repurchase with central banks to provide same-day liquidity.
Alternative liquid assets (ALA) - eligible securities that the RBNZ will accept in its domestic market operations and asset qualifying as collateral for the
CLF.
the risk appetite set by the ANZBGL Board.
ANZBGL Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and
18. Financial risk management (continued)
Liquidity and funding risk (continued)
Liquidity risk outcomes1
Liquidity Coverage Ratio - ANZBGL’s Liquidity Coverage Ratio (LCR) averaged 133% for 2024, (2023: 130%) and above the regulatory minimum of
100%.
Net Stable Funding Ratio - ANZBGL’s Net Stable Funding Ratio (NSFR) as at 30 September 2024 was 116% (2023: 116%), above the regulatory
minimum of 100%.
1. This information is not within the scope of the external audit of the Group Financial Report by the Group’s external auditor, KPMG. The Liquidity Coverage Ratio and Net Stable Funding Ratio are non-IFRS
disclosures and are disclosed as part of the Group's APS 330 Public Disclosure and disclosed in APRA Reporting Form ARF 210 Liquidity which will be subject to specific procedures in accordance with
Prudential Standard APS 310 Audit and Related Matters.
Liquidity crisis contingency planning
ANZBGL Group maintains APRA-endorsed liquidity crisis contingency plans for analysing and responding to a liquidity threatening event at a country and
ANZBGL Group-wide level. Key liquidity contingency crisis planning requirements and guidelines include:
Ongoing business management
Early signs/ mild stress
Severe stress
establish crisis/severity levels
early warning indicators
liquidity limits
monitoring and review
management actions not requiring
business rationalisation
activate contingency funding plans
management actions for altering asset and liability
behaviour
Assigned responsibility for internal and external communications and the appropriate timing to communicate
Since the precise nature of any stress event cannot be known in advance, we design the plans to be flexible to the nature and severity of the stress event
with multiple variables able to be accommodated in any plan.
Group funding
The ANZBGL Group monitors the composition and stability of its funding so that it remains within the ANZBGL Group’s funding risk appetite. This approach
ensures that an appropriate proportion of the ANZBGL Group’s assets are funded by stable funding sources, including customer deposits; longer-dated
wholesale funding (with a remaining term exceeding one year); and equity.
Funding plans prepared
Considerations in preparing funding plans
3 year strategic plan prepared annually
annual funding plan as part of the ANZBGL Group’s
planning process
forecasting in light of actual results as a calibration to the
annual plan
customer balance sheet growth
changes in wholesale funding including: targeted funding volumes; markets;
investors; tenors; and currencies for senior, secured, subordinated, hybrid
transactions and market conditions
liquidity stress testing
RBA term funding facility
As an additional source of funding, in March 2020, the RBA announced a Term Funding Facility (TFF) for the banking system to support lending to
Australian businesses. The TFF is a three-year secured funding facility to ADIs at a fixed rate of 0.25% for drawdowns up to 4 November 2020, and
reduced to 0.10% for new drawdowns from 4 November 2020 onwards. The TFF was closed to drawdowns on 30 June 2021.
As at 30 September 2024, there was nil drawn under the RBA’s TFF, as it was fully repaid in the 2024 financial year (2023: $8.1 billion).
RBNZ funding for lending programme and term lending facility
Between May 2020 and July 2021, the RBNZ made funds available under a Term Lending Facility (TLF) to promote lending to businesses. The TLF is a
five-year secured funding facility for New Zealand banks at a fixed rate of 0.25%.
In November 2020 the RBNZ announced a Funding for Lending Programme (FLP) which aimed to lower the cost of borrowing for New Zealand
businesses and households. The FLP is a three-year secured funding facility for New Zealand banks at a floating rate of the New Zealand Official Cash
Rate (OCR). New Zealand banks were able to obtain initial funding of up to 4% of their lending to New Zealand resident households, non-financial
businesses and non-profit institutions serving households as at 31 October 2020 (eligible loans). The initial allocation closed on 6 June 2022. An additional
allocation of up to 2% of eligible loans was available, subject to certain conditions until 6 December 2022.
As at 30 September 2024, ANZ Bank New Zealand had drawn $0.2 billion under the TLF (2023: $0.3 billion) and $2.3 billion under the FLP
(2023: $3.2 billion).
162
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164
164
Notes to the consolidated financial statements (continued)
18. Financial risk management (continued)
Liquidity and funding risk (continued)
Residual contractual maturity analysis of the group’s liabilities
The tables below provide residual contractual maturity analysis of financial liabilities as at 30 September within relevant maturity groupings. All outstanding
debt issuance and subordinated debt is profiled on the earliest date on which the Group may be required to pay. All at-call liabilities are reported in the
‘Less than 3 months’ category unless there is a longer minimum notice period. The amounts represent principal and interest cash flows and therefore may
differ from equivalent amounts reported on Balance Sheet.
It should be noted that this is not how the Group manages its liquidity risk. The management of this risk is detailed on page 162.
As at 30 September 2024
Settlement balances owed by ANZ
Collateral received
Deposits and other borrowings
Liability for acceptances
Debt issuances1
Derivative liabilities (excluding those held for balance sheet management)2
Lease liabilities
Derivative assets and liabilities (balance sheet management)3
- Funding:
Receive leg
Pay leg
- Other balance sheet management:
Receive leg
Pay leg
As at 30 September 2023
Settlement balances owed by ANZ
Collateral received
Deposits and other borrowings
Liability for acceptances
Debt issuances1
Derivative liabilities (excluding those held for balance sheet management)2
Lease liabilities
Derivative assets and liabilities (balance sheet management)3
- Funding:
Receive leg
Pay leg
- Other balance sheet management:
Receive leg
Pay leg
Less than
3 months
$m
3 to 12
months
$m
1 to 5
years
$m
After
5 years
$m
Total
$m
16,188
6,583
-
-
-
-
-
-
16,188
6,583
742,610
158,222
10,907
138
911,877
425
8,327
47,622
90
-
-
-
425
36,858
112,728
20,384
178,297
-
238
-
688
-
262
47,622
1,278
(66,248)
(60,183)
(83,371)
(14,359)
(224,161)
66,981
60,260
84,472
14,661
226,374
(189,769)
(42,388)
(36,763)
(21,831)
(290,751)
185,946
40,718
33,393
19,266
279,323
19,267
10,382
-
-
-
-
-
-
19,267
10,382
674,473
137,463
9,629
147
821,712
646
4,738
48,150
85
-
-
-
646
23,908
88,270
16,017
132,933
-
217
-
609
-
104
48,150
1,015
(29,459)
(40,907)
(90,906)
(14,001)
(175,273)
28,852
41,385
90,230
13,986
174,453
(142,289)
(44,586)
(35,720)
(19,866)
(242,461)
138,899
42,867
34,198
19,872
235,836
1. Callable wholesale debt instruments have been included at their next call date. Balance includes subordinated debt instruments that may be settled in cash or in equity, at the option of the Group and
subordinated debt issued by ANZ New Zealand which constitutes Tier 2 capital under RBNZ requirements but does not qualify as the APRA Tier 2 requirements.
2. The full mark-to-market after any adjustments for Settle to Market of derivative liabilities (excluding those held for balance sheet management) is included in the ‘Less than 3 months’ category.
3. Includes derivatives designated into hedging relationships of $456 million (2023: $272 million) and $7,176 million (2023: $9,060 million) categorised as held for trading but form part of the Group’s
balance sheet managed activities.
At 30 September 2024, $249,988 million (2023: $240,711 million) of the Group’s undrawn facilities and $49,010 million (2023: $50,171 million) of its
issued guarantees mature in less than 1 year, based on the earliest date on which the Group may be required to pay.
164
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
165
165
19. Fair value of financial assets and financial liabilities
Classification of financial assets and financial liabilities
The Group recognises and measures financial instruments at either fair value or amortised cost, with a significant number of financial instruments on the
Balance Sheet at fair value.
Fair value is the best estimate of the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market
participants at the measurement date.
The following table sets out the classification of financial assets and liabilities according to their measurement bases together with their carrying amounts
as recognised on the Balance Sheet.
Financial assets
Cash and cash equivalents
Settlement balances owed to ANZ
Collateral paid
Trading assets
Derivative financial instruments
Investment securities
Net loans and advances
Regulatory deposits
Other financial assets
Total
Financial liabilities
Settlement balances owed by ANZ
Collateral received
Deposits and other borrowings
Derivative financial instruments
Payables and other liabilities
Debt issuances
Total
At amortised
cost
$m
Note
2024
At fair
value
$m
At amortised
cost
$m
Total
$m
2023
At fair
value
$m
Total
$m
9
113,712
37,255
150,967
140,588
27,566
168,154
10
11
12
13
15
11
16
17
5,484
10,090
-
-
-
-
45,755
54,370
5,484
10,090
45,755
54,370
9,349
8,558
-
-
7,091
133,458
140,549
7,752
-
-
37,004
60,406
89,677
9,349
8,558
37,004
60,406
97,429
778,596
24,786
803,382
685,156
21,888
707,044
665
4,506
-
-
665
4,506
646
4,339
-
-
646
4,339
920,144
295,624 1,215,768
856,388
236,541 1,092,929
16,188
6,583
-
-
16,188
6,583
19,267
10,382
-
-
19,267
10,382
860,553
43,001
903,554
780,822
33,889
814,711
-
55,254
11,828
154,572
6,023
1,816
55,254
17,851
9,830
-
57,482
57,482
15,097
116,014
5,267
1,336
156,388
114,678
1,049,724
106,094 1,155,818
934,979
97,974 1,032,953
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166
166
Notes to the consolidated financial statements (continued)
19. Fair value of financial assets and financial liabilities (continued)
Financial assets and financial liabilities measured at fair value
The fair valuation of financial assets and financial liabilities is generally determined at the individual instrument level.
If the Group holds offsetting risk positions, then the portfolio exception in AASB 13 Fair Value Measurement (AASB 13) is used to measure the fair value of
such groups of financial assets and financial liabilities. The Group measures the portfolio based on the price that would be received to sell a net long
position (an asset) for a particular risk exposure, or to transfer a net short position (a liability) for a particular risk exposure.
Fair value designation
The Group designates certain loans and advances, deposits and other borrowings and debt issuances as fair value through profit or loss:
where they contain separable embedded derivatives and are managed on a fair value basis, the total fair value movements are recognised in profit or
loss in the same period as the movement on any associated hedging instruments; or
in order to eliminate an accounting mismatch which would arise if the assets or liabilities were otherwise carried at amortised cost. This mismatch
arises due to measuring the derivative financial instruments (used to mitigate interest rate risk of these assets or liabilities) at fair value through profit or
loss.
The Group’s approach ensures that it recognises the fair value movements on the assets or liabilities in profit or loss in the same period as the movement
on the associated derivatives.
The Group may also designate certain loans and advances, deposits and other borrowings and debt issuances as fair value through profit or loss where
they are managed on a fair value basis to align the measurement with how the financial instruments are managed.
Fair value approach and valuation techniques
The Group uses valuation techniques to estimate the fair value of assets and liabilities for recognition, measurement and disclosure purposes where no
quoted price in an active market for that asset or liability exists. This includes the following:
Asset or liability
Fair value approach
Discounted cash flow techniques are used whereby contractual future cash flows of the instrument are
discounted using wholesale market interest rates, or market borrowing rates for debt or loans with
similar maturities or yield curves appropriate for the remaining term to maturity.
Financial instruments classified as:
- Derivative financial assets and
financial liabilities (including trading
and non-trading)
- Repurchase agreements < 90 days
- Net loans and advances
- Deposits and other borrowings
- Debt issuances
Other financial instruments held for
trading:
Valuation techniques are used that incorporate observable market inputs for financial instruments with
similar credit risk, maturity and yield characteristics.
- Securities sold short
- Debt and equity securities
Equity securities where an active market does not exist are measured using comparable company
valuation multiples (such as price-to-book ratios).
Financial instruments classified as:
- Investment securities – debt or equity
Valuation techniques use comparable multiples (such as price-to-book ratios) or discounted cashflow
(DCF) techniques incorporating, to the extent possible, observable inputs from instruments with similar
characteristics.
There were no significant changes to valuation approaches during the current or prior periods.
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ANZ 2024 Annual Report
The fair valuation of financial assets and financial liabilities is generally determined at the individual instrument level.
If the Group holds offsetting risk positions, then the portfolio exception in AASB 13 Fair Value Measurement (AASB 13) is used to measure the fair value of
such groups of financial assets and financial liabilities. The Group measures the portfolio based on the price that would be received to sell a net long
position (an asset) for a particular risk exposure, or to transfer a net short position (a liability) for a particular risk exposure.
Fair value designation
loss.
on the associated derivatives.
where they contain separable embedded derivatives and are managed on a fair value basis, the total fair value movements are recognised in profit or
loss in the same period as the movement on any associated hedging instruments; or
in order to eliminate an accounting mismatch which would arise if the assets or liabilities were otherwise carried at amortised cost. This mismatch
arises due to measuring the derivative financial instruments (used to mitigate interest rate risk of these assets or liabilities) at fair value through profit or
The Group’s approach ensures that it recognises the fair value movements on the assets or liabilities in profit or loss in the same period as the movement
The Group may also designate certain loans and advances, deposits and other borrowings and debt issuances as fair value through profit or loss where
they are managed on a fair value basis to align the measurement with how the financial instruments are managed.
Fair value approach and valuation techniques
The Group uses valuation techniques to estimate the fair value of assets and liabilities for recognition, measurement and disclosure purposes where no
quoted price in an active market for that asset or liability exists. This includes the following:
Asset or liability
Fair value approach
Financial instruments classified as:
Discounted cash flow techniques are used whereby contractual future cash flows of the instrument are
discounted using wholesale market interest rates, or market borrowing rates for debt or loans with
similar maturities or yield curves appropriate for the remaining term to maturity.
- Derivative financial assets and
financial liabilities (including trading
and non-trading)
- Repurchase agreements < 90 days
- Net loans and advances
- Deposits and other borrowings
- Debt issuances
Other financial instruments held for
Valuation techniques are used that incorporate observable market inputs for financial instruments with
trading:
similar credit risk, maturity and yield characteristics.
- Securities sold short
- Debt and equity securities
Equity securities where an active market does not exist are measured using comparable company
valuation multiples (such as price-to-book ratios).
Financial instruments classified as:
Valuation techniques use comparable multiples (such as price-to-book ratios) or discounted cashflow
(DCF) techniques incorporating, to the extent possible, observable inputs from instruments with similar
- Investment securities – debt or equity
characteristics.
There were no significant changes to valuation approaches during the current or prior periods.
ANZ 2024 Annual Report
ANZ 2024 Annual Report
166
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
167
167
19. Fair value of financial assets and financial liabilities (continued)
19. Fair value of financial assets and financial liabilities (continued)
Financial assets and financial liabilities measured at fair value
Fair value hierarchy
The Group designates certain loans and advances, deposits and other borrowings and debt issuances as fair value through profit or loss:
Level 3 - valuations where significant unobservable inputs are used to measure the fair value of the asset or liability.
There were no significant changes to levelling approaches during the current or prior periods. The following table presents assets and liabilities carried at
fair value in accordance with the fair value hierarchy:
The Group categorises assets and liabilities carried at fair value into a fair value hierarchy in accordance with AASB 13 based on the observability of inputs
used to measure the fair value:
Level 1 - valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - valuations using inputs other than quoted prices included within Level 1 that are observable for a similar asset or liability, either directly or
indirectly; and
Fair value measurements
Quoted price
in active markets
(Level 1)
Using
observable inputs
(Level 2)
Using
unobservable inputs
(Level 3)
Total
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
-
-
37,255
27,566
31,507
26,388
14,233
10,614
131
935
54,214
59,448
-
15
25
-
2
37,255
27,566
45,755
37,004
23
54,370
60,406
111,060
71,356
21,055
16,924
1,343
1,397 133,458
89,677
-
-
24,429
21,159
357
729
24,786
21,888
142,698
98,679 151,186 135,711
1,740
2,151 295,624 236,541
Assets
Cash and cash equivalents (measured at fair value)
Trading assets1
Derivative financial instruments1
Investment securities1
Net loans and advances
Total
Liabilities
Deposits and other borrowings (designated at fair value)
Derivative financial instruments1
Payables and other liabilities
Debt issuances (designated at fair value)
-
-
1,816
1,336
Total
6,197
5,059
99,882
92,892
-
393
-
43,001
33,889
218
54,846
57,241
5,804
4,841
219
426
-
15
-
-
15
-
43,001
33,889
23
55,254
57,482
-
-
6,023
1,816
5,267
1,336
23 106,094
97,974
1. During 2024, $1,119 million of assets were transferred from Level 1 to Level 2 (2023: $3,624 million transferred from Level 1 to Level 2) and $4,913 million of assets were transferred from Level 2 to
Level 1 (2023: $1,452 million transferred from Level 2 to Level 1) for the Group due to a change in the observability of market price and/or valuation inputs. There were no other material transfers
between Level 1, Level 2 and Level 3 during the year. Transfers into and out of levels are measured at the beginning of the reporting period in which the transfer occurred, and do not include assets and
liabilities acquired as part of Suncorp Bank.
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168
168
Notes to the consolidated financial statements (continued)
19. Fair value of financial assets and financial liabilities (continued)
Fair value measurement incorporating unobservable market data
Level 3 fair value measurements
Level 3 financial instruments are a net asset of $1,725 million (2023: $2,128 million) for the Group. The assets and liabilities which incorporate significant
unobservable inputs are:
equity and debt securities for which there is no active market or traded prices cannot be observed;
loans and advances measured at fair value for which there is no observable market data; and
derivatives referencing market rates that cannot be observed primarily due to lack of market activity.
Level 3 transfers
During the year, there were no material transfers into or out of Level 3 (2023: $218 million of loans and advances measured at fair value were transferred
from Level 2 to Level 3).
The material Level 3 financial instruments as at 30 September 2024 are listed as below:
i) Investment securities - equity holdings classified as FVOCI
Bank of Tianjin (BoT)
The Group holds an investment in the Bank of Tianjin. The investment is valued based on comparative price-to-book (P/B) multiples (a P/B multiple is the
ratio of the market value of equity to the book value of equity). The extent of judgement applied in determining the appropriate multiple and comparator
group from which the multiple is derived resulted in the Level 3 classification. As at 30 September 2024, the BoT equity holding balance was $958 million
(2023: $849 million). The increase in the BoT fair valuation was due to an increase in the P/B multiple used in the valuation and foreign currency translation
impacts.
Other equity investments
The Group holds $384 million (2023: $535 million) of unlisted equities classified as FVOCI, for which there are no active markets or traded prices available,
resulting in a Level 3 classification. The decrease in unlisted equity holdings balance was mainly due to a downward revaluation of the equity instruments
during the year.
ii) Net loans and advances - classified as FVTPL
Syndicated loans
The Group holds $357 million (2023: $729 million) of syndicated loans for sale which are measured at FVTPL for which there is no observable market
data available. The decrease in the Level 3 loan balances was mainly due to scheduled repayments as well as foreign currency translation impacts.
Sensitivity to Level 3 data inputs
When we make assumptions due to significant inputs to a valuation not being directly observable (Level 3 inputs), then changing these assumptions
changes the Group’s estimate of the instrument’s fair value. Favourable and unfavourable changes are determined by changing the primary unobservable
parameters used to derive the fair valuation.
Investment securities - equity holdings
The valuations of the equity investments are sensitive to variations in selected unobservable inputs, with valuation techniques used including P/B multiples
and discounted cashflow techniques. If for example, a 10% increase or decrease to the primary input into the valuations were to occur (such as the P/B
multiple), it would result in a $134 million increase or decrease in the fair value of the portfolio, which would be recognised in shareholders’ equity in the
Group, with no impact to net profit or loss.
Net loans and advances
Syndicated loan valuations are sensitive to credit spreads in determining their fair valuation. For the syndicated loans which are primarily investment grade
loans, an increase or decrease in credit spreads would have an immaterial impact on net profit or net assets of the Group. For the remaining syndicated
loans, the Group may, where deemed necessary, utilise Credit Risk Insurance to mitigate the credit risks associated with those loans. The effect of this
would also result in an immaterial impact to the net profit or net assets of the Group.
Other
The remaining Level 3 balance is immaterial and changes in inputs have a minimal impact on net profit and net assets of the Group.
Deferred fair value gains and losses
Where fair value is determined using unobservable inputs significant to the fair value of a financial instrument, the Group does not immediately recognise
the difference between the transaction price and the amount determined based on the valuation technique (day one gain or loss) in profit or loss. After
initial recognition, the Group recognises the deferred amount in profit or loss on a straight-line basis over the life of the transaction or until all inputs
become observable. Day one gains and losses which have been deferred are not material.
168
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168
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
19. Fair value of financial assets and financial liabilities (continued)
19. Fair value of financial assets and financial liabilities (continued)
Fair value measurement incorporating unobservable market data
Financial assets and financial liabilities not measured at fair value
Shareholder
Notes to the Financial Statements
information
Financial report
169
169
-
7,712
7,078
17,693
7,078
7,712
778,700 683,089
24,771
27,331 761,007 663,470
785,778 690,801
-
19,619 761,007 663,470
group from which the multiple is derived resulted in the Level 3 classification. As at 30 September 2024, the BoT equity holding balance was $958 million
Total
Financial assets
Investment securities
Net loans and advances
7,091
7,752
778,596 685,156
785,687 692,908
-
-
-
-
-
-
The financial assets and financial liabilities listed below are carried at amortised cost on the Group’s Balance Sheet. While this is the value at which we
expect the assets will be realised and the liabilities settled, the Group provides an estimate of the fair value of the financial assets and financial liabilities at
balance date in the table below.
Fair values of financial assets and liabilities carried at amortised cost not included in the table below approximate their carrying values. These financial
assets and liabilities are either short term in nature or are floating rate instruments that are re-priced to market interest rates on or near the end of the
reporting period.
Categorised into fair value hierarchy
At amortised cost
Quoted price
in active markets
(Level 1)
Using
observable inputs
(Level 2)
Using
unobservable inputs
(Level 3)
Total fair value
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
Level 3 financial instruments are a net asset of $1,725 million (2023: $2,128 million) for the Group. The assets and liabilities which incorporate significant
Level 3 fair value measurements
unobservable inputs are:
Level 3 transfers
from Level 2 to Level 3).
equity and debt securities for which there is no active market or traded prices cannot be observed;
loans and advances measured at fair value for which there is no observable market data; and
derivatives referencing market rates that cannot be observed primarily due to lack of market activity.
During the year, there were no material transfers into or out of Level 3 (2023: $218 million of loans and advances measured at fair value were transferred
The material Level 3 financial instruments as at 30 September 2024 are listed as below:
i) Investment securities - equity holdings classified as FVOCI
Bank of Tianjin (BoT)
The Group holds an investment in the Bank of Tianjin. The investment is valued based on comparative price-to-book (P/B) multiples (a P/B multiple is the
ratio of the market value of equity to the book value of equity). The extent of judgement applied in determining the appropriate multiple and comparator
(2023: $849 million). The increase in the BoT fair valuation was due to an increase in the P/B multiple used in the valuation and foreign currency translation
The Group holds $384 million (2023: $535 million) of unlisted equities classified as FVOCI, for which there are no active markets or traded prices available,
resulting in a Level 3 classification. The decrease in unlisted equity holdings balance was mainly due to a downward revaluation of the equity instruments
impacts.
Other equity investments
during the year.
Syndicated loans
ii) Net loans and advances - classified as FVTPL
Sensitivity to Level 3 data inputs
parameters used to derive the fair valuation.
Investment securities - equity holdings
Group, with no impact to net profit or loss.
Net loans and advances
The Group holds $357 million (2023: $729 million) of syndicated loans for sale which are measured at FVTPL for which there is no observable market
data available. The decrease in the Level 3 loan balances was mainly due to scheduled repayments as well as foreign currency translation impacts.
When we make assumptions due to significant inputs to a valuation not being directly observable (Level 3 inputs), then changing these assumptions
changes the Group’s estimate of the instrument’s fair value. Favourable and unfavourable changes are determined by changing the primary unobservable
The valuations of the equity investments are sensitive to variations in selected unobservable inputs, with valuation techniques used including P/B multiples
and discounted cashflow techniques. If for example, a 10% increase or decrease to the primary input into the valuations were to occur (such as the P/B
multiple), it would result in a $134 million increase or decrease in the fair value of the portfolio, which would be recognised in shareholders’ equity in the
Syndicated loan valuations are sensitive to credit spreads in determining their fair valuation. For the syndicated loans which are primarily investment grade
loans, an increase or decrease in credit spreads would have an immaterial impact on net profit or net assets of the Group. For the remaining syndicated
loans, the Group may, where deemed necessary, utilise Credit Risk Insurance to mitigate the credit risks associated with those loans. The effect of this
would also result in an immaterial impact to the net profit or net assets of the Group.
The remaining Level 3 balance is immaterial and changes in inputs have a minimal impact on net profit and net assets of the Group.
Other
Deferred fair value gains and losses
Where fair value is determined using unobservable inputs significant to the fair value of a financial instrument, the Group does not immediately recognise
the difference between the transaction price and the amount determined based on the valuation technique (day one gain or loss) in profit or loss. After
initial recognition, the Group recognises the deferred amount in profit or loss on a straight-line basis over the life of the transaction or until all inputs
become observable. Day one gains and losses which have been deferred are not material.
Financial liabilities
Deposits and other borrowings
Debt issuances
860,553 780,822
154,572 114,678
-
32,244
- 860,756 780,614
83,867
30,786 123,667
Total
1,015,125 895,500
32,244
30,786 984,423 864,481
-
-
-
-
-
860,756 780,614
155,911 114,653
- 1,016,667 895,267
168
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170
170
Notes to the consolidated financial statements (continued)
19. Fair value of financial assets and financial liabilities (continued)
Financial assets and financial liabilities not measured at fair value (continued)
The following table sets out the Group’s basis of estimating the fair values of financial assets and liabilities carried at amortised cost where the carrying
value is not typically a reasonable approximation of fair value.
Financial asset and liability
Fair value approach
Investment securities - debt securities
at amortised cost
Calculated based on quoted market prices or observable inputs as applicable. If quoted market prices are
not available, we use a discounted cash flow model using a yield curve appropriate for the remaining term
to maturity of the debt instrument. The fair value reflects adjustments to credit spreads applicable for that
instrument.
Net loans and advances to banks
Discounted cash flows using prevailing market rates for loans with similar credit quality.
Net loans and advances to customers
Present value of future cash flows, discounted using a curve that incorporates changes in wholesale
market rates, the Group’s cost of wholesale funding and the customer margin, as appropriate.
Deposit liability without a specified
maturity or at call
The amount payable on demand at the reporting date. We do not adjust the fair value for any value we
expect the Group to derive from retaining the deposit for a future period.
Interest bearing fixed maturity deposits
and other borrowings and acceptances
with quoted market rates
Debt issuances
Market borrowing rates of interest for debt with a similar maturity are used to discount contractual cash
flows to derive the fair value.
Calculated based on quoted market prices or observable inputs as applicable. If quoted market prices are
not available, we use a discounted cash flow model using a yield curve appropriate for the remaining term
to maturity of the debt instrument. The fair value reflects adjustments to credit spreads applicable to the
Group for that instrument.
Key judgements and estimates
A significant portion of financial instruments are carried on the Balance Sheet at fair value. The Group therefore regularly evaluates the key
valuation assumptions used in the determination of the fair valuation of financial instruments incorporated within the financial statements, as
this can involve a high degree of judgement and estimation in determining the carrying values at the balance date.
In determining the fair valuation of financial instruments, the Group has considered the impact of related economic and market conditions on
fair value measurement assumptions and the appropriateness of valuation inputs in these estimates, notably valuation adjustments, as well as
the impact of these matters on the classification of financial instruments in the fair value hierarchy.
Most of the valuation models the Group uses employ only observable market data as inputs. For certain financial instruments, we may use
data that is not readily observable in current markets. If we use unobservable market data, then we need to exercise more judgement to
determine fair value depending on the significance of the unobservable input to the overall valuation. Generally, we derive unobservable inputs
from other relevant market data and compare them to observed transaction prices where available. When establishing the fair value of a
financial instrument using a valuation technique, the Group also considers any required valuation adjustments in determining the fair value. We
may apply adjustments (such as credit valuation adjustments and funding valuation adjustments – refer to Note 11 Derivative financial
instruments) to reflect the Group’s assessment of factors that market participants would consider in determining fair value of a particular
financial instrument.
170
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170
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
171
171
19. Fair value of financial assets and financial liabilities (continued)
Financial assets and financial liabilities not measured at fair value (continued)
The following table sets out the Group’s basis of estimating the fair values of financial assets and liabilities carried at amortised cost where the carrying
20. Assets charged as security for liabilities and collateral accepted as security for assets
The following disclosure excludes the amounts presented as collateral paid and received in the Balance Sheet that relate to derivative liabilities and
derivative assets respectively. The terms and conditions of those collateral agreements are included in the standard Credit Support Annex that forms part
of the International Swaps and Derivatives Association Master Agreement under which most of our derivatives are executed.
Assets charged as security for liabilities
Assets charged as security for liabilities include the following types of instruments:
value is not typically a reasonable approximation of fair value.
Financial asset and liability
Fair value approach
Investment securities - debt securities
Calculated based on quoted market prices or observable inputs as applicable. If quoted market prices are
at amortised cost
not available, we use a discounted cash flow model using a yield curve appropriate for the remaining term
to maturity of the debt instrument. The fair value reflects adjustments to credit spreads applicable for that
instrument.
securities provided as collateral for repurchase transactions. These transactions are governed by standard industry agreements;
specified residential mortgages provided as security for notes and bonds issued to investors as part of the Group’s covered bond programs;
collateral provided to central banks; and
collateral provided to clearing houses.
Net loans and advances to banks
Discounted cash flows using prevailing market rates for loans with similar credit quality.
The carrying amount of assets pledged as security are as follows:
Net loans and advances to customers
Present value of future cash flows, discounted using a curve that incorporates changes in wholesale
market rates, the Group’s cost of wholesale funding and the customer margin, as appropriate.
Deposit liability without a specified
The amount payable on demand at the reporting date. We do not adjust the fair value for any value we
Residential mortgages provided as security for covered bonds
maturity or at call
expect the Group to derive from retaining the deposit for a future period.
Other
Interest bearing fixed maturity deposits
Market borrowing rates of interest for debt with a similar maturity are used to discount contractual cash
and other borrowings and acceptances
flows to derive the fair value.
1. The amounts disclosed as securities sold under arrangements to repurchase include both:
assets pledged as security which continue to be recognised on the Group's Balance Sheet; and
assets repledged, which are included in the disclosure below.
Securities sold under arrangements to repurchase1
2024
$m
45,709
34,235
6,339
2023
$m
47,552
31,188
6,152
with quoted market rates
Debt issuances
Calculated based on quoted market prices or observable inputs as applicable. If quoted market prices are
not available, we use a discounted cash flow model using a yield curve appropriate for the remaining term
to maturity of the debt instrument. The fair value reflects adjustments to credit spreads applicable to the
Group for that instrument.
Collateral accepted as security for assets
The Group has received collateral associated with various financial transactions. Under certain arrangements the Group has the right to sell, or to repledge,
the collateral received. These arrangements are governed by standard industry agreements.
The fair value of collateral we have received and that which we have sold or repledged is as follows:
Key judgements and estimates
Fair value of assets which can be sold or repledged
Fair value of assets sold or repledged
2024
$m
68,145
39,699
2023
$m
52,184
33,493
A significant portion of financial instruments are carried on the Balance Sheet at fair value. The Group therefore regularly evaluates the key
valuation assumptions used in the determination of the fair valuation of financial instruments incorporated within the financial statements, as
this can involve a high degree of judgement and estimation in determining the carrying values at the balance date.
In determining the fair valuation of financial instruments, the Group has considered the impact of related economic and market conditions on
fair value measurement assumptions and the appropriateness of valuation inputs in these estimates, notably valuation adjustments, as well as
the impact of these matters on the classification of financial instruments in the fair value hierarchy.
Most of the valuation models the Group uses employ only observable market data as inputs. For certain financial instruments, we may use
data that is not readily observable in current markets. If we use unobservable market data, then we need to exercise more judgement to
determine fair value depending on the significance of the unobservable input to the overall valuation. Generally, we derive unobservable inputs
from other relevant market data and compare them to observed transaction prices where available. When establishing the fair value of a
financial instrument using a valuation technique, the Group also considers any required valuation adjustments in determining the fair value. We
may apply adjustments (such as credit valuation adjustments and funding valuation adjustments – refer to Note 11 Derivative financial
instruments) to reflect the Group’s assessment of factors that market participants would consider in determining fair value of a particular
financial instrument.
170
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172
172
Notes to the consolidated financial statements (continued)
21. Offsetting
We offset financial assets and financial liabilities on the Balance Sheet (in accordance with AASB 132 Financial Instruments: Presentation) when there is:
a current legally enforceable right to set off the recognised amounts in all circumstances; and
an intention to settle the asset and liability on a net basis, or to realise the asset and settle the liability simultaneously.
The following table identifies financial assets and financial liabilities which have not been offset but are subject to enforceable master netting agreements
(or similar arrangements) and the related amounts not offset in the Balance Sheet. We have not taken into account the effect of over-collateralisation.
Total amounts
recognised
in the
Balance Sheet
$m
Amounts not
subject to
master netting
agreement or
similar
$m
Amount subject to master netting agreement or similar
Total
$m
Financial
instruments4
$m
Financial
collateral
(received)/
pledged4
$m
Net amount
$m
54,370
(3,534)
50,836
(38,192)
(7,702)
4,942
6,870
57,032
118,272
(55,254)
(4,675)
(39,640)
(99,569)
(1,258)
(12,183)
(16,975)
2,881
2,168
14,185
19,234
5,612
44,849
101,297
(52,373)
(2,507)
(25,455)
(80,335)
-
(1,957)
(40,149)
38,192
-
1,957
40,149
(5,606)
(42,830)
(56,138)
6,244
2,507
23,484
32,235
6
62
5,010
(7,937)
-
(14)
(7,951)
60,406
(3,290)
57,116
(38,070)
(13,049)
5,997
4,145
44,088
108,639
(57,482)
(124)
(10,505)
(13,919)
4,021
33,583
94,720
5,096
(52,386)
(12,744)
(31,710)
(101,936)
1,117
13,304
19,517
(11,627)
(18,406)
(82,419)
-
(2,401)
(40,471)
38,070
-
2,401
40,471
(4,021)
(31,182)
(48,252)
6,547
11,627
16,005
34,179
-
-
5,997
(7,769)
-
-
(7,769)
As at 30 September 2024
Derivative financial assets1
Reverse repurchase, securities borrowing and
similar agreements2
- at amortised cost
- at fair value through profit or loss
Total financial assets
Derivative financial liabilities1
Repurchase, securities lending and similar
agreements3
- at amortised cost
- at fair value through profit or loss
Total financial liabilities
As at 30 September 2023
Derivative financial assets1
Reverse repurchase, securities borrowing and
similar agreements2
- at amortised cost
- at fair value through profit or loss
Total financial assets
Derivative financial liabilities1
Repurchase, securities lending and similar
agreements3
- at amortised cost
- at fair value through profit or loss
Total financial liabilities
1. Derivative assets and liabilities recognised in the Balance Sheet reflect the impact of certain central clearing collateral arrangements, whereby collateral that qualifies as legal settlement has reduced the
carrying value of those associated derivative balances.
2. Reverse repurchase agreements:
with less than 90 days to maturity are presented in the Balance Sheet within Cash and cash equivalents; or
with 90 days or more to maturity are presented in the Balance Sheet within Net loans and advances.
3. Repurchase agreements are presented on the Balance Sheet within Deposits and other borrowings.
4. The amount of financial instruments and financial collateral disclosed is limited to the net balance sheet exposure of the relevant financial assets or liabilities, and any over-collateralisation is excluded
from the tables.
172
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172
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
21. Offsetting
22. Goodwill and other intangible assets
Shareholder
Notes to the Financial Statements
information
Financial report
173
173
We offset financial assets and financial liabilities on the Balance Sheet (in accordance with AASB 132 Financial Instruments: Presentation) when there is:
a current legally enforceable right to set off the recognised amounts in all circumstances; and
an intention to settle the asset and liability on a net basis, or to realise the asset and settle the liability simultaneously.
The following table identifies financial assets and financial liabilities which have not been offset but are subject to enforceable master netting agreements
(or similar arrangements) and the related amounts not offset in the Balance Sheet. We have not taken into account the effect of over-collateralisation.
Amounts not
subject to
Total amounts
recognised
master netting
in the
agreement or
Balance Sheet
$m
similar
$m
Amount subject to master netting agreement or similar
Total
$m
Financial
instruments4
$m
Financial
collateral
(received)/
pledged4
$m
Net amount
$m
54,370
(3,534)
50,836
(38,192)
(7,702)
4,942
6,870
57,032
118,272
(55,254)
(4,675)
(39,640)
(99,569)
(1,258)
(12,183)
(16,975)
2,881
2,168
14,185
19,234
5,612
44,849
101,297
(52,373)
(2,507)
(25,455)
(80,335)
4,145
44,088
108,639
(57,482)
(124)
(10,505)
(13,919)
4,021
33,583
94,720
5,096
(52,386)
(12,744)
(31,710)
(101,936)
1,117
13,304
19,517
(11,627)
(18,406)
(82,419)
-
(1,957)
(40,149)
38,192
-
1,957
40,149
-
(2,401)
(40,471)
38,070
-
2,401
40,471
(5,606)
(42,830)
(56,138)
6,244
2,507
23,484
32,235
(4,021)
(31,182)
(48,252)
6,547
11,627
16,005
34,179
6
62
5,010
(7,937)
-
(14)
(7,951)
-
-
-
-
5,997
(7,769)
(7,769)
60,406
(3,290)
57,116
(38,070)
(13,049)
5,997
As at 30 September 2024
Derivative financial assets1
similar agreements2
- at amortised cost
Reverse repurchase, securities borrowing and
- at fair value through profit or loss
Total financial assets
Derivative financial liabilities1
Repurchase, securities lending and similar
agreements3
- at amortised cost
- at fair value through profit or loss
Total financial liabilities
As at 30 September 2023
Derivative financial assets1
similar agreements2
- at amortised cost
Reverse repurchase, securities borrowing and
- at fair value through profit or loss
Total financial assets
Derivative financial liabilities1
Repurchase, securities lending and similar
agreements3
- at amortised cost
- at fair value through profit or loss
Total financial liabilities
1. Derivative assets and liabilities recognised in the Balance Sheet reflect the impact of certain central clearing collateral arrangements, whereby collateral that qualifies as legal settlement has reduced the
carrying value of those associated derivative balances.
2. Reverse repurchase agreements:
with less than 90 days to maturity are presented in the Balance Sheet within Cash and cash equivalents; or
with 90 days or more to maturity are presented in the Balance Sheet within Net loans and advances.
3. Repurchase agreements are presented on the Balance Sheet within Deposits and other borrowings.
4. The amount of financial instruments and financial collateral disclosed is limited to the net balance sheet exposure of the relevant financial assets or liabilities, and any over-collateralisation is excluded
from the tables.
Balance at start of year
Additions2
Amortisation expense3
Impairment expense
Written-off on disposal/exit
Foreign currency exchange difference
Balance at end of year
Cost4
Accumulated amortisation
Carrying amount
Goodwill1
Software
Other Intangibles
Total
2024
$m
3,056
1,402
-
-
-
(37)
4,421
4,421
n/a
2023
$m
2,906
-
-
-
-
150
3,056
3,056
2024
$m
919
434
(324)
(9)
-
-
2023
$m
896
342
(320)
-
-
1
1,020
7,993
919
8,141
n/a
(6,973)
(7,222)
4,421
3,056
1,020
919
2024
$m
2023
$m
83
-
(6)
(7)
-
-
70
90
(20)
70
75
10
(6)
-
-
4
83
98
(15)
83
2024
$m
4,058
1,836
(330)
(16)
-
(37)
5,511
2023
$m
3,877
352
(326)
-
-
155
4,058
12,504
11,295
(6,993)
(7,237)
5,511
4,058
1. Goodwill excludes notional goodwill in equity accounted investments.
2. 2024 includes $1,402 million of provisional goodwill and $103 million of provisional intangibles on acquisition of Suncorp Bank.
3. 2024 includes $36 million of accelerated amortisation expense from Suncorp Bank on alignment to the Group’s software capitalisation policy.
4.
Includes impact of foreign currency translation differences.
Impairment testing for cash generating units containing goodwill
Goodwill acquired in a business combination is tested for impairment annually and whenever there are indicators of potential impairment. Goodwill is
allocated at the date of acquisition to the cash generating unit (CGU) or group of CGUs that are expected to benefit from the synergies of the related
business combination.
Goodwill is considered to be impaired if the carrying amount of the relevant CGU exceeds its recoverable amount. We estimate the recoverable amount of
each CGU to which goodwill is allocated using a fair value less costs of disposal (FVLCOD) approach, with a value-in-use (VIU) assessment performed
where the FVLCOD is less than the carrying amount.
Goodwill is allocated to the following CGUs based on the lowest level at which goodwill is monitored.
Cash generating units:
Australia Retail
Institutional
New Zealand
Suncorp Bank
2024
$m
178
1,245
1,596
1,402
2023
$m
178
1,261
1,617
-
172
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ANZ 2024 Annual Report
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174
174
Notes to the consolidated financial statements (continued)
22. Goodwill and other intangible assets (continued)
We estimate the FVLCOD of each CGU to which goodwill is allocated by applying observable price earnings multiples of comparable companies to the
estimated future maintainable earnings of each CGU. A deduction is then made for estimated costs of disposal. The valuation is considered to be level 3
in the fair value hierarchy due to unobservable inputs used in the valuation.
Management’s approach and the key assumptions used in determining FVLCOD are as follows:
Key assumption
Approach to determining the value (or values) for each key assumption
Future maintainable earnings
Future maintainable earnings for each CGU is estimated as the sum of:
The Group’s 2025 financial plan for each CGU; and
An allocation of the central costs recorded outside of the CGUs to which goodwill is allocated.
Where relevant, adjustments are made to the Group’s financial plan to reflect the long-term expectations for items
such as expected credit losses.
Price/Earnings (P/E) multiple
P/E multiples applicable to each CGU have been derived from a comparator group of publicly traded companies,
and include a 30% control premium, discussed below.
In the case of the New Zealand and Institutional CGUs, management has made downwards adjustments to P/E
multiples to address specific factors relevant to those CGUs.
A control premium has been applied which recognises the increased consideration a potential acquirer would be
willing to pay in order to gain sufficient ownership to achieve control over the relevant activities of the CGU. For each
CGU, the control premium has been estimated as 30% of the comparator group P/E multiple based on historical
transactions.
Costs of disposal
Costs of disposal have been estimated as 2% of the fair value of the CGU based on those observed from historical
and recent transactions.
Our impairment testing did not result in the impairment of goodwill as at 30 September 2024.
The FVLCOD estimates for each CGU are sensitive to assumptions about P/E multiples, future maintainable earnings and control premium (30%).
However, each CGU would continue to show a surplus in recoverable amount over carrying amount even where other reasonably possible alternative
estimates were used.
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174
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
22. Goodwill and other intangible assets (continued)
22. Goodwill and other intangible assets (continued)
Shareholder
Notes to the Financial Statements
information
Financial report
175
175
We estimate the FVLCOD of each CGU to which goodwill is allocated by applying observable price earnings multiples of comparable companies to the
estimated future maintainable earnings of each CGU. A deduction is then made for estimated costs of disposal. The valuation is considered to be level 3
in the fair value hierarchy due to unobservable inputs used in the valuation.
Management’s approach and the key assumptions used in determining FVLCOD are as follows:
Key assumption
Approach to determining the value (or values) for each key assumption
Future maintainable earnings
Future maintainable earnings for each CGU is estimated as the sum of:
The Group’s 2025 financial plan for each CGU; and
An allocation of the central costs recorded outside of the CGUs to which goodwill is allocated.
Where relevant, adjustments are made to the Group’s financial plan to reflect the long-term expectations for items
such as expected credit losses.
Price/Earnings (P/E) multiple
P/E multiples applicable to each CGU have been derived from a comparator group of publicly traded companies,
and include a 30% control premium, discussed below.
In the case of the New Zealand and Institutional CGUs, management has made downwards adjustments to P/E
multiples to address specific factors relevant to those CGUs.
A control premium has been applied which recognises the increased consideration a potential acquirer would be
willing to pay in order to gain sufficient ownership to achieve control over the relevant activities of the CGU. For each
CGU, the control premium has been estimated as 30% of the comparator group P/E multiple based on historical
transactions.
and recent transactions.
Our impairment testing did not result in the impairment of goodwill as at 30 September 2024.
The FVLCOD estimates for each CGU are sensitive to assumptions about P/E multiples, future maintainable earnings and control premium (30%).
However, each CGU would continue to show a surplus in recoverable amount over carrying amount even where other reasonably possible alternative
estimates were used.
Recognition and measurement
The table below details how we recognise and measure different intangible assets:
Goodwill
Software
Other Intangibles
Definition
Excess amount the Group has
paid in acquiring a business
over the fair value of the
identifiable assets and liabilities
acquired.
Management fee rights arising
from acquisition of funds
management business and other
intangible assets arising from
contractual rights.
Purchased software owned by the Group is
capitalised.
Internal and external costs incurred in
building software and computer systems
costing greater than $20 million are
capitalised as assets. Those less than $20
million are expensed in the year in which the
costs are incurred.
Costs incurred in planning or evaluating
software proposals or in maintaining
systems after implementation are
not capitalised.
Costs of disposal
Costs of disposal have been estimated as 2% of the fair value of the CGU based on those observed from historical
Carrying value
Cost less any accumulated
impairment losses.
Allocated to the cash
generating unit to which the
acquisition relates.
Initially, measured at cost or if acquired in a
business combination at the acquisition date
fair value.
Subsequently, carried at cost less
accumulated amortisation and impairment
losses.
Initially, measured at fair value at
acquisition.
Subsequently, carried at cost less
accumulated amortisation and
impairment losses.
Useful life
Indefinite.
Goodwill is reviewed for
impairment at least annually or
when there is an indication of
impairment.
Except for major core infrastructure,
amortised over periods between
2-5 years; however major core infrastructure
may be amortised over 7 years subject to
approval by the Audit Committee.
Purchased software is amortised over 2
years unless it is considered integral to other
assets with a longer useful life.
Management fee rights with an
indefinite life are reviewed for
impairment at least annually or
when there is an indication of
impairment. Other intangible
assets are amortised over 3 years.
Depreciation
method
Not applicable.
Straight-line method.
Not applicable to indefinite life
intangible assets. Straight-line
method for assets with a finite life.
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176
Notes to the consolidated financial statements (continued)
22. Goodwill and other intangible assets (continued)
Key judgements and estimates
Management judgement is used to assess the recoverable value of goodwill and other intangible assets, and the useful economic life of an
asset, or whether an asset has an indefinite life. We reassess the recoverability of the carrying value at each reporting date.
Goodwill
A number of key judgements are required in the determination of whether or not a goodwill balance is impaired including:
the level at which goodwill is allocated – consistent with prior periods the CGUs to which goodwill is allocated are the Group’s revenue
generating segments that benefit from relevant historical business combinations generating goodwill.
determination of the carrying amount of each CGU which includes an allocation, on a reasonable and consistent basis, of corporate assets
and liabilities that are not directly attributable to the CGUs to which goodwill is allocated.
assessment of the recoverable amount of each CGU including:
o
o
selection of the model used to determine the fair value – the Group has used the market multiple approach to estimate the fair
value; and
selection of the key assumptions in respect of future maintainable earnings, the P/E multiple applied, including selection of an
appropriate comparator group and determination of an appropriate control premium, and costs of disposal as described above.
Software and other intangible assets
At each reporting date, software and other intangible assets are assessed for indicators of impairment and, where such indicators are
identified, an impairment assessment is performed. In the event that an asset’s carrying amount is determined to be greater than its
recoverable amount, the carrying amount of the asset is written down immediately. Those assets not yet ready for use are tested for
impairment annually.
In addition, the expected useful lives of intangible assets are assessed at each reporting date. The assessment requires management
judgement, and in relation to our software assets, a number of factors can influence the expected useful lives. These factors include changes
to business strategy, significant divestments and the pace of technological change.
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176
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
22. Goodwill and other intangible assets (continued)
23. Other provisions
Shareholder
Notes to the Financial Statements
information
Financial report
177
177
Key judgements and estimates
Management judgement is used to assess the recoverable value of goodwill and other intangible assets, and the useful economic life of an
asset, or whether an asset has an indefinite life. We reassess the recoverability of the carrying value at each reporting date.
Goodwill
A number of key judgements are required in the determination of whether or not a goodwill balance is impaired including:
the level at which goodwill is allocated – consistent with prior periods the CGUs to which goodwill is allocated are the Group’s revenue
generating segments that benefit from relevant historical business combinations generating goodwill.
determination of the carrying amount of each CGU which includes an allocation, on a reasonable and consistent basis, of corporate assets
and liabilities that are not directly attributable to the CGUs to which goodwill is allocated.
assessment of the recoverable amount of each CGU including:
selection of the model used to determine the fair value – the Group has used the market multiple approach to estimate the fair
selection of the key assumptions in respect of future maintainable earnings, the P/E multiple applied, including selection of an
appropriate comparator group and determination of an appropriate control premium, and costs of disposal as described above.
value; and
o
o
Software and other intangible assets
At each reporting date, software and other intangible assets are assessed for indicators of impairment and, where such indicators are
identified, an impairment assessment is performed. In the event that an asset’s carrying amount is determined to be greater than its
recoverable amount, the carrying amount of the asset is written down immediately. Those assets not yet ready for use are tested for
impairment annually.
In addition, the expected useful lives of intangible assets are assessed at each reporting date. The assessment requires management
judgement, and in relation to our software assets, a number of factors can influence the expected useful lives. These factors include changes
to business strategy, significant divestments and the pace of technological change.
ECL allowance on undrawn and contingent facilities1
Customer remediation
Restructuring costs
Non-lending losses, frauds and forgeries
Other
Total other provisions
1. Refer to Note 14 Allowance for expected credit losses for movement analysis.
Balance at 1 October 2023
New and increased provisions made during the year
Provisions used during the year
Unused amounts reversed during the year
Balance at 30 September 2024
2024
$m
846
394
80
90
175
1,585
Customer
remediation
$m
Restructuring
costs
$m
Non-lending
losses, frauds
and forgeries
$m
459
158
(178)
(45)
394
98
160
(142)
(36)
80
73
22
(5)
-
90
2023
$m
827
459
98
73
260
1,717
Other
$m
260
36
(50)
(71)
175
176
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178
Notes to the consolidated financial statements (continued)
23. Other provisions (continued)
Customer remediation
Customer remediation includes provisions for expected refunds to customers, remediation project costs and related customer and regulatory claims,
penalties and litigation costs and outcomes.
Restructuring costs
Provisions for restructuring costs arise from activities related to changes in the scope of business undertaken by the Group or the manner in which that
business is undertaken and include employee termination benefits. Costs relating to on-going activities are not provided for and are expensed as incurred.
Non-lending losses, frauds and forgeries
Non-lending losses include losses arising from certain legal actions not directly related to amounts of principal outstanding for loans and advances and
losses arising from forgeries, frauds and the correction of operational issues. The amounts recognised are the best estimate of the consideration required
to settle the present obligation at the reporting date, taking into account the risks and uncertainties that surround the events and circumstances that
affect the provision.
Other
Other provisions comprise various other provisions including workers compensation, make-good provisions associated with leased premises, warranties
and indemnities provided in connection with various disposals of businesses and assets, and contingent liabilities recognised as part of a business
combination.
Recognition and measurement
The Group recognises provisions when there is a present obligation arising from a past event, an outflow of economic resources is probable,
and the amount of the provision can be measured reliably.
The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into
account the risks and uncertainties surrounding the timing and amount of the obligation. Where a provision is measured using the estimated
cash flows required to settle the present obligation, its carrying amount is the present value of those cash flows.
Key judgements and estimates
The Group holds provisions for various obligations including customer remediation, restructuring costs, non-lending losses, frauds and forgeries
and litigation related claims. These provisions involve judgements regarding the timing and outcome of future events, including estimates of
expenditure required to satisfy such obligations. Where relevant, expert legal advice has been obtained and, in light of such advice, provisions
and/or disclosures as deemed appropriate have been made.
In relation to customer remediation, determining the amount of the provisions, which represent management’s best estimate of the cost of
settling the identified matters, requires the exercise of significant judgement. It will often be necessary to form a view on a number of different
assumptions, including the number of impacted customers, the average refund per customer, the associated remediation project costs, and
the implications of regulatory exposures and customer claims having regard to their specific facts and circumstances. There is a heightened
level of estimation uncertainty where the customer remediation provision relates to a legal proceeding or matter. The appropriateness of the
underlying assumptions is reviewed on a regular basis against actual experience and other relevant evidence including expert legal advice, and
adjustments are made to the provisions where appropriate.
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Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
179
179
24. Shareholders’ equity
Shareholders' equity
Ordinary share capital
Reserves
Foreign currency translation reserve1
Share option reserve
FVOCI reserve
Cash flow hedge reserve
Transactions with non-controlling interests reserve
Total reserves
Retained earnings
Other provisions comprise various other provisions including workers compensation, make-good provisions associated with leased premises, warranties
and indemnities provided in connection with various disposals of businesses and assets, and contingent liabilities recognised as part of a business
Share capital and reserves attributable to shareholders of the Company
Non-controlling interests2
Total shareholders’ equity
2024
$m
2023
$m
28,182
29,082
(360)
108
(1,078)
(422)
(22)
(1,774)
43,449
69,857
771
70,628
570
83
(494)
(1,872)
(22)
(1,735)
42,148
69,495
522
70,017
1. As a result of the closure of a number of international entities, the associated foreign currency translation reserve was recycled from Other comprehensive income to profit or loss, resulting in a $22 million
gain recognised in Other operating income in 2024 (2023: $43 million gain).
2. ANZ Bank New Zealand issued $256 million of perpetual preference shares in 2024 that are considered non-controlling interests to the Group.
Ordinary share capital
The table below details the movement in ordinary shares and share capital for the year.
Balance at start of the year
Dividend reinvestment plan issuances
Bonus option plan
Employee share and option plans
Share buy-back1
Balance at end of year
Treasury Shares
Balance at end of year
2024
Number of
shares
$m
2023
Number of
shares
3,005,286,886
29,082
2,989,923,751
-
3,878,840
-
(29,749,466)
-
-
(17)
(883)
8,406,978
3,577,526
3,378,631
-
$m
28,797
206
-
79
-
2,979,416,260
28,182
3,005,286,886
29,082
(5,352,012)
-
(4,044,925)
-
2,974,064,248
28,182
3,001,241,961
29,082
1. The Company commenced a $2 billion on-market share buy-back on 3 July 2024. This resulted in 30 million shares ($883 million) being cancelled during 2024 and a further 1.2 million shares ($36
million) being cancelled after 30 September 2024 in respect of purchase orders placed but not settled at 30 September 2024.
Customer remediation includes provisions for expected refunds to customers, remediation project costs and related customer and regulatory claims,
Provisions for restructuring costs arise from activities related to changes in the scope of business undertaken by the Group or the manner in which that
business is undertaken and include employee termination benefits. Costs relating to on-going activities are not provided for and are expensed as incurred.
Non-lending losses, frauds and forgeries
Non-lending losses include losses arising from certain legal actions not directly related to amounts of principal outstanding for loans and advances and
losses arising from forgeries, frauds and the correction of operational issues. The amounts recognised are the best estimate of the consideration required
to settle the present obligation at the reporting date, taking into account the risks and uncertainties that surround the events and circumstances that
23. Other provisions (continued)
Customer remediation
penalties and litigation costs and outcomes.
Restructuring costs
affect the provision.
Other
combination.
Recognition and measurement
The Group recognises provisions when there is a present obligation arising from a past event, an outflow of economic resources is probable,
and the amount of the provision can be measured reliably.
The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into
account the risks and uncertainties surrounding the timing and amount of the obligation. Where a provision is measured using the estimated
cash flows required to settle the present obligation, its carrying amount is the present value of those cash flows.
Key judgements and estimates
The Group holds provisions for various obligations including customer remediation, restructuring costs, non-lending losses, frauds and forgeries
and litigation related claims. These provisions involve judgements regarding the timing and outcome of future events, including estimates of
expenditure required to satisfy such obligations. Where relevant, expert legal advice has been obtained and, in light of such advice, provisions
and/or disclosures as deemed appropriate have been made.
In relation to customer remediation, determining the amount of the provisions, which represent management’s best estimate of the cost of
settling the identified matters, requires the exercise of significant judgement. It will often be necessary to form a view on a number of different
assumptions, including the number of impacted customers, the average refund per customer, the associated remediation project costs, and
the implications of regulatory exposures and customer claims having regard to their specific facts and circumstances. There is a heightened
level of estimation uncertainty where the customer remediation provision relates to a legal proceeding or matter. The appropriateness of the
underlying assumptions is reviewed on a regular basis against actual experience and other relevant evidence including expert legal advice, and
adjustments are made to the provisions where appropriate.
178
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180
180
Notes to the consolidated financial statements (continued)
24. Shareholders’ equity (continued)
Non-controlling interests
ANZ Bank New Zealand PPS1
Other
Total
Profit attributable to
non-controlling interests
Equity attributable to
non-controlling interests
Dividend paid to
non-controlling interests
2024
$m
32
3
35
2023
$m
26
2
28
2024
$m
758
13
771
2023
$m
512
10
522
2024
$m
32
-
32
2023
$m
26
1
27
1. On 19 March 2024, ANZ Bank New Zealand Limited issued $256 million (NZD275 million) of PPS.
ANZ Bank New Zealand Preference Shares
Perpetual Preference Shares (PPS) externally issued by ANZ Bank New Zealand Limited (ANZ Bank New Zealand), a member of the Group, are considered
non-controlling interests of the Group.
The key terms of the PPS are as follows:
PPS dividends
Holders of PPS are entitled to receive dividends that are discretionary, non-cumulative and subject to conditions. If a PPS dividend is not paid, there are
certain restrictions on the ability of ANZ Bank New Zealand to pay a dividend on its ordinary shares. Holders of the PPS have no other rights participate in
the profits or property of ANZ Bank New Zealand.
Redemption features
Holders of PPS have no right to require that the PPS be redeemed. ANZ Bank New Zealand may, at its option, redeem all of the PPS on an optional
redemption date (being each scheduled quarterly dividend payment date from the first optional redemption date), or at any time following the occurrence
of a tax event or regulatory event, subject to prior written approval of RBNZ and certain other conditions being met.
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Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
181
181
Profit attributable to
Equity attributable to
Dividend paid to
non-controlling interests
non-controlling interests
non-controlling interests
2024
$m
32
3
35
2023
$m
26
2
28
2024
$m
758
13
771
2023
$m
512
10
522
2024
$m
32
-
32
2023
$m
26
1
27
24. Shareholders’ equity (continued)
Non-controlling interests
ANZ Bank New Zealand PPS1
Other
Total
1. On 19 March 2024, ANZ Bank New Zealand Limited issued $256 million (NZD275 million) of PPS.
ANZ Bank New Zealand Preference Shares
non-controlling interests of the Group.
The key terms of the PPS are as follows:
PPS dividends
the profits or property of ANZ Bank New Zealand.
Redemption features
Perpetual Preference Shares (PPS) externally issued by ANZ Bank New Zealand Limited (ANZ Bank New Zealand), a member of the Group, are considered
Holders of PPS are entitled to receive dividends that are discretionary, non-cumulative and subject to conditions. If a PPS dividend is not paid, there are
certain restrictions on the ability of ANZ Bank New Zealand to pay a dividend on its ordinary shares. Holders of the PPS have no other rights participate in
24. Shareholders’ equity (continued)
Recognition and measurement
Ordinary shares
Ordinary shares have no par value. They entitle holders to receive dividends, or proceeds available
on winding up of the Company, in proportion to the number of fully paid ordinary shares held. They
are recognised at the amount paid per ordinary share net of directly attributable costs. Every holder
of fully paid ordinary shares present at a meeting of the Company in person, or by proxy, is entitled
to:
on a show of hands, one vote; and
on a poll, one vote, for each share held.
Treasury shares
Treasury shares are shares in the Company which:
the ANZ Employee Share Acquisition Plan purchases on market and have not yet distributed, or
the Company issues to the ANZ Employee Share Acquisition Plan and have not yet been
distributed.
Treasury shares are deducted from share capital and excluded from the weighted average number
of ordinary shares used in the earnings per share calculations.
Holders of PPS have no right to require that the PPS be redeemed. ANZ Bank New Zealand may, at its option, redeem all of the PPS on an optional
redemption date (being each scheduled quarterly dividend payment date from the first optional redemption date), or at any time following the occurrence
Reserves:
of a tax event or regulatory event, subject to prior written approval of RBNZ and certain other conditions being met.
Foreign currency translation reserve
Includes differences arising on translation of assets and liabilities into Australian dollars when the
functional currency of a foreign operation (including subsidiaries and branches) is not Australian
dollars. In this reserve, we reflect any offsetting gains or losses on hedging these exposures,
together with any tax effect.
Cash flow hedge reserve
Includes fair value gains and losses associated with the effective portion of designated cash flow
hedging instruments together with any tax effect.
FVOCI reserve
Includes changes in the fair value of certain debt securities and equity securities included within
Investment Securities together with any tax effect.
In respect of debt securities classified as measured at FVOCI, the FVOCI reserve records
accumulated changes in fair value arising subsequent to initial recognition, except for those relating
to allowance for ECL, interest income and foreign currency exchange gains and losses which are
recognised in profit or loss. As debt securities at FVOCI are recorded at fair value, the balance of
the FVOCI reserve is net of the ECL allowance associated with such assets. When a debt security
measured at FVOCI is derecognised, the cumulative gain or loss recognised in the FVOCI reserve in
respect of that security is reclassified to profit or loss and presented in other operating income.
In respect of the equity securities classified as measured at FVOCI, the FVOCI reserve records
accumulated changes in fair value arising subsequent to initial recognition (including any related
foreign exchange gains or losses). When an equity security measured at FVOCI is derecognised,
the cumulative gain or loss recognised in the FVOCI reserve in respect of that security is not
recycled to profit or loss.
Share option reserve
Includes amounts which arise on the recognition of share-based compensation expense.
Transactions with non-controlling
interests reserve
Includes the impact of transactions with non-controlling shareholders in their capacity as
shareholders.
Non-controlling interests
Share in the net assets of controlled entities attributable to equity interests which the Group does
not own directly or indirectly.
180
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182
182
Notes to the consolidated financial statements (continued)
25. Capital management
Capital management framework
The Group’s capital management framework includes managing capital at Level 1, Level 2 and ANZGHL Group.
The Group’s framework includes managing to Board approved risk appetite settings and maintaining all regulatory requirements. APRA requirements at
Level 1 and Level 2 include the Group operating at or above APRAs expectation for Domestic Systematically Important Banks (D-SIBs) following the
implementation of APRA’s Capital Reform.
APRA’s authority for ANZGHL to be a non-operating holding company (NOHC) of an ADI includes five conditions for the Group’s capital management
framework. Two of these are quantitative requirements being:
ANZGHL must always ensure that the quality and quantity of the total capital of the Level 3 group is equivalent to, or greater than, the quality and
quantity of the sum of the total capital of the consolidated ANZ Bank Group and the consolidated ANZ Non-Bank Group.
ANZGHL must calculate and manage capital for the ANZ Non-Bank Group in accordance with an Economic Capital Model (ECM), which requires the
amount of capital held, in the form of Common Equity Tier 1 (CET1), to be equal to or greater than the capital requirement as calculated under the
ECM.
The Group has implemented an ECM to calculate the capital to support the ANZ Non-Bank Group operations. The material risks included in the Non-Bank
Group currently are investment risk and fixed asset risk.
All requirements were satisfied as at 30 September 2024.
Capital management strategy
The Group’s capital management strategy aims to protect the interests of depositors, creditors and shareholders. We achieve this through an Internal
Capital Adequacy Assessment Process (ICAAP) whereby the Group conducts detailed strategic and capital planning over a 3-year time horizon.
The process involves:
forecasting economic variables, financial performance of divisions and the financial impact of new strategic initiatives to be implemented during the
planning period;
performing stress tests under different economic scenarios to determine the level of additional capital (stress capital buffer) needed to absorb losses
that may be experienced under an economic downturn;
reviewing capital position and targets against the Group’s risk profile; and
developing a capital plan, taking into account capital ratio targets, ECM requirements, current and future capital issuances requirements and options
around capital products, timing and markets to execute the capital plan under differing market and economic conditions.
The capital plan is approved by the Board and updated as required. The Board and senior management are provided with regular updates of the Group’s
capital position. Any material actions required to ensure ongoing prudent capital management are submitted to the Board for approval. Throughout the
year, the Group maintained compliance with all the regulatory requirements related to Capital Adequacy in the jurisdictions in which it operates.
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182
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
183
183
25. Capital management
Capital management framework
The Group’s capital management framework includes managing capital at Level 1, Level 2 and ANZGHL Group.
The Group’s framework includes managing to Board approved risk appetite settings and maintaining all regulatory requirements. APRA requirements at
Level 1 and Level 2 include the Group operating at or above APRAs expectation for Domestic Systematically Important Banks (D-SIBs) following the
implementation of APRA’s Capital Reform.
APRA’s authority for ANZGHL to be a non-operating holding company (NOHC) of an ADI includes five conditions for the Group’s capital management
framework. Two of these are quantitative requirements being:
ANZGHL must always ensure that the quality and quantity of the total capital of the Level 3 group is equivalent to, or greater than, the quality and
quantity of the sum of the total capital of the consolidated ANZ Bank Group and the consolidated ANZ Non-Bank Group.
ANZGHL must calculate and manage capital for the ANZ Non-Bank Group in accordance with an Economic Capital Model (ECM), which requires the
amount of capital held, in the form of Common Equity Tier 1 (CET1), to be equal to or greater than the capital requirement as calculated under the
The Group has implemented an ECM to calculate the capital to support the ANZ Non-Bank Group operations. The material risks included in the Non-Bank
ECM.
Group currently are investment risk and fixed asset risk.
All requirements were satisfied as at 30 September 2024.
Capital management strategy
The Group’s capital management strategy aims to protect the interests of depositors, creditors and shareholders. We achieve this through an Internal
Capital Adequacy Assessment Process (ICAAP) whereby the Group conducts detailed strategic and capital planning over a 3-year time horizon.
The process involves:
planning period;
forecasting economic variables, financial performance of divisions and the financial impact of new strategic initiatives to be implemented during the
performing stress tests under different economic scenarios to determine the level of additional capital (stress capital buffer) needed to absorb losses
that may be experienced under an economic downturn;
reviewing capital position and targets against the Group’s risk profile; and
developing a capital plan, taking into account capital ratio targets, ECM requirements, current and future capital issuances requirements and options
around capital products, timing and markets to execute the capital plan under differing market and economic conditions.
The capital plan is approved by the Board and updated as required. The Board and senior management are provided with regular updates of the Group’s
capital position. Any material actions required to ensure ongoing prudent capital management are submitted to the Board for approval. Throughout the
year, the Group maintained compliance with all the regulatory requirements related to Capital Adequacy in the jurisdictions in which it operates.
25. Capital management (continued)
Regulatory environment
Australia
As the ANZ Bank Group is an Authorised Deposit-taking Institution (ADI) in Australia, it is primarily regulated by APRA under the Banking Act 1959 (Cth).
ANZ Bank Group must comply with the minimum regulatory capital requirements, prudential capital ratios and specific reporting levels that APRA sets and
which are consistent with the global Basel III capital framework. This is the common framework for determining the appropriate level of bank regulatory
capital as set by the Basel Committee on Banking Supervision. APRA minimum requirements are summarised below:
Regulatory capital definition
Common Equity Tier 1 (CET1) Capital
Tier 1 Capital
Tier 2 Capital
Total Capital
Shareholders’ equity adjusted for specific
items.
CET1 capital plus certain securities
with complying loss absorbing
characteristics known as Additional
Tier 1 Capital.
Subordinated debt instruments which
have a minimum term of 5 years at
issue date.
Tier 1 plus Tier 2
capital.
Minimum Prudential Capital Ratios (PCRs)
CET1 Ratio
Tier 1 Ratio
Total Capital Ratio
CET1 capital divided by total risk weighted
assets must be at least 4.5%.
Tier 1 capital divided by total risk
weighted assets must be at least
6.0%.
Total capital divided by total risk
weighted assets must be at least 8.0%.
For D-SIBs, Total Capital Ratio must be
of at least 11% from 1st Jan 2024.
Refer below for details.
Reporting Levels
Level 1
Level 2
Level 3
The ADI on a stand-alone basis (that is
ANZBGL and specified subsidiaries which are
consolidated to form the ADI’s Extended
Licensed Entity).
The consolidated ANZBGL Group
less certain subsidiaries and
associates that are excluded under
prudential standards.
A conglomerate ANZGHL Group at the widest level.
As at 30 September 2024, APRA also requires the ADI to hold additional CET1 buffers as follows:
a capital conservation buffer (CCB) of 4.75% which is inclusive of the additional 1% surcharge for domestically systemically important banks (D-SIBs).
APRA has determined that ANZ is a D-SIB.
a countercyclical capital buffer which is set on a jurisdictional basis. The requirement is currently set at 1% for Australia.
Additionally in December 2021, APRA announced that it requires all D-SIBs including the ANZ Bank Group to increase its minimum total capital ratio
requirement by 3% of RWA by January 2024, and a further 1.5% of RWA by January 2026 (total increase of 4.5%). APRA expects this to be predominantly
met by Tier 2 capital, with an equivalent decrease in other senior funding. The Group is on track to meet these requirements as at reporting date.
In September 2024, APRA also released a discussion paper “A more effective capital framework for a crisis”, which outlines potential amendments to
APRA’s prudential framework to ensure that the capital strength of the Australian banking system operates more effectively in stress. The changes are
proposed to come into effect from January 2027 with the main change being replacing the current requirement for 1.5% of Additional Tier 1 capital (AT1)
with 0.25% of CET1 capital and 1.25% of Tier 2 capital.
The Group reports to APRA on a Level 1 and Level 2 basis, and measures capital adequacy monthly on a Level 1 and Level 2 basis, and is not yet required
to maintain capital on a Level 3 basis (APRA have yet to conclude required timing for Level 3 reporting).
Insurance and funds management
As required by APRA’s Prudential Standards, insurance and funds management activities are:
de-consolidated for the purposes of calculating capital adequacy; and
excluded from the risk-based capital adequacy framework.
We deduct the investment in these controlled entities 100% from CET1 capital, and if we include any profits from these activities in the ANZ Bank Group’s
results, then we exclude them from the determination of CET1 capital to the extent they have not been remitted.
Outside Australia
In addition to APRA, the Group’s branch operations and major banking subsidiary operations are also overseen by local regulators such as the Reserve
Bank of New Zealand, the US Federal Reserve, the UK Prudential Regulation Authority, the Monetary Authority of Singapore, the Hong Kong Monetary
Authority and the China Banking and Insurance Regulatory Commission. They may impose minimum capital levels on operations in their individual
jurisdictions.
182
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184
Notes to the consolidated financial statements (continued)
25. Capital management (continued)
The Group’s compliance with the quantitative conditions for capital management under the APRA NOHC authority is presented in the following two
tables1:
Allocated equity2,3
Prudential adjustments to allocated equity
Gross Common Equity Tier 1 capital
Deductions
Common Equity Tier 1 capital
Tier 1 capital
Tier 2 capital
Total qualifying capital
Allocated equity2
Prudential adjustments to allocated equity
Gross Common Equity Tier 1 capital
Deductions
Common Equity Tier 1 capital
Tier 1 capital
Tier 2 capital
Total qualifying capital
ANZ Bank Group
$m
ANZ Non-Bank Group
$m
ANZGHL
$m
2024
68,760
(721)
68,039
(13,570)
54,469
62,676
29,189
91,865
1,301
-
1,301
-
1,301
1,301
-
1,301
567
-
567
-
567
567
-
567
2023
ANZ Bank Group
$m
ANZ Non-Bank Group
$m
ANZGHL
$m
69,085
(396)
68,689
(10,895)
57,794
66,026
24,959
90,985
749
-
749
-
749
749
-
749
183
-
183
-
183
183
-
183
Group
$m
70,628
(721)
69,907
(13,570)
56,337
64,544
29,189
93,733
Group
$m
70,017
(396)
69,621
(10,895)
58,726
66,958
24,959
91,917
1. This information is not within the scope of the external audit of the Group Financial Report by the Group’s external auditor, KPMG. The information presented in this table is a regulatory requirement
reported to APRA under the conditions of ANZ’s NOHC authority which will be subject to audit in accordance with Prudential Standard 3PS310 Audit and Related Matters.
2. Allocated in accordance with prudential capital management view.
3. ANZGHL allocated equity includes ~$1.1 billion for the remaining share buy-back.
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Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
25. Capital management (continued)
ANZ Non-Bank Group
Economic Capital Required
Actual Capital1
Actual vs Economic Capital
ANZ Bank Group2
The following table provides details of ANZ Bank Group’s capital adequacy ratios at 30 September:
Qualifying capital
Tier 1
Shareholders' equity and non-controlling interests
Prudential adjustments to shareholders' equity
Gross Common Equity Tier 1 capital
Deductions
Common Equity Tier 1 capital
Additional Tier 1 capital3
Tier 1 capital
Tier 2 capital4
Total qualifying capital
Capital adequacy ratios (Level 2)
Common Equity Tier 1
Tier 1
Tier 2
Total capital ratio
Risk weighted assets
Shareholder
Notes to the Financial Statements
information
Financial report
185
185
2024
$m
384
543
159
2023
$m
563
744
181
2024
$m
2023
$m
68,760
(721)
68,039
(13,570)
54,469
8,207
62,676
29,189
91,865
12.2%
14.0%
6.5%
20.6%
69,085
(396)
68,689
(10,895)
57,794
8,232
66,026
24,959
90,985
13.3%
15.2%
5.8%
21.0%
446,582
433,327
1. This represents the aggregation of ANZ NBH Pty Ltd and ANZ Group Services Pty Ltd’s shareholders’ equity.
2. This information is not within the scope of the external audit of the Group Financial Report by the Group’s external auditor, KPMG. The information presented in this table is a regulatory requirement
disclosed in Part A of ARF 110 Capital Adequacy which will be subject to audit in accordance with Prudential Standard APS 310 Audit and Related Matters.
3. This includes Additional Tier 1 capital of $8,207 million (2023: $8,232 million) (refer to Note 17 Debt issuances) including a regulatory adjustments and deductions of -$70 million (2023: nil)
4. This includes Tier 2 capital of $28,584 million (2023: 23,707 million) (refer to Note 17 Debt issuances), a general reserve for impairment of financial assets of $1,711 million (2023: $1,776 million) and
regulatory adjustments and deductions of -$1,107 million (2023: -$524 million)
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186
26. Parent entity financial information
Summary financial information
Income statement information for the financial year
Profit after tax for the year
Total comprehensive income for the year
Balance sheet information as at the end of the financial year
Current assets
Shares in controlled entities
Total assets
Current liabilities
Total liabilities
Shareholders' equity
Ordinary share capital
Share Option Reserve
Retained earnings
Total shareholders' equity
Notes to the consolidated financial statements (continued)
2024
$m
5,289
5,289
1,408
58,008
59,416
107
107
58,223
14
1,072
59,309
2023
$m
3,391
3,391
287
59,979
60,266
104
104
59,167
(9)
1,004
60,162
Parent entity’s contractual commitments for property, plant and equipment
The parent entity has no contractual commitments to acquire property, plant or equipment.
Parent entity’s guarantees
The parent entity has issued letters of comfort and guarantees in respect of certain subsidiaries in the normal course of business. Under these letters and
guarantees, the parent entity undertakes to ensure that those subsidiaries continue to meet their financial obligations, subject to certain conditions
including that the entity remains a controlled entity.
Parent entity’s contingent liabilities
There are no other known contingent liabilities of the parent entity. Refer to Note 34 Commitment, contingent liabilities and contingent assets for details of
contingent liabilities of Group entities.
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186
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
187
187
26. Parent entity financial information
Summary financial information
Income statement information for the financial year
Profit after tax for the year
Total comprehensive income for the year
Balance sheet information as at the end of the financial year
Current assets
Shares in controlled entities
Total assets
Current liabilities
Total liabilities
Shareholders' equity
Ordinary share capital
Share Option Reserve
Retained earnings
Total shareholders' equity
2024
$m
5,289
5,289
1,408
58,008
59,416
107
107
58,223
14
1,072
59,309
2023
$m
3,391
3,391
287
59,979
60,266
104
104
59,167
(9)
1,004
60,162
Parent entity’s contractual commitments for property, plant and equipment
The parent entity has no contractual commitments to acquire property, plant or equipment.
Parent entity’s guarantees
The parent entity has issued letters of comfort and guarantees in respect of certain subsidiaries in the normal course of business. Under these letters and
guarantees, the parent entity undertakes to ensure that those subsidiaries continue to meet their financial obligations, subject to certain conditions
including that the entity remains a controlled entity.
Parent entity’s contingent liabilities
contingent liabilities of Group entities.
There are no other known contingent liabilities of the parent entity. Refer to Note 34 Commitment, contingent liabilities and contingent assets for details of
27. Controlled entities
The ultimate parent of the Group is ANZ Group Holdings Limited
The Group holds 100% of the voting interests in all controlled entities, unless noted otherwise.
The material controlled entities of the Group are:
Australia and New Zealand Banking Group Ltd
SBGH Limited
ANZ NBH Pty Ltd
1835i Ventures Trust III
ANZ Group Services Pty Ltd
ANZ BH Pty Ltd
ANZ Bank (Vietnam) Limited1
ANZ Funds Pty Ltd
ANZ Bank (Kiribati) Limited1 (75% ownership)
ANZ Bank (Samoa) Limited1
ANZ Bank (Vanuatu) Limited2
ANZ Holdings (New Zealand) Limited1
ANZ Bank New Zealand Limited1
ANZ Investment Services (New Zealand) Limited1
ANZ New Zealand (Int’l) Limited1
ANZ New Zealand Investments Holdings Limited1
ANZ New Zealand Investments Limited1
ANZNZ Covered Bond Trust1,3
ANZ International Private Limited1
ANZcover Insurance Private Ltd1
ANZ Lenders Mortgage Insurance Pty Ltd
ANZ Residential Covered Bond Trust3
Australia and New Zealand Bank (China) Company Limited1
Australia and New Zealand Banking Group (PNG) Limited1
Citizens Bancorp
ANZ Guam Inc
Institutional Securitisation Services Limited
PT Bank ANZ Indonesia1 (99% ownership)
Incorporated in
Australia
Nature of Business
Banking
Australia
Australia
Australia
Australia
Australia
Australia
Vietnam
Australia
Kiribati
Samoa
Vanuatu
Banking
Banking
Non-Banking
Non-Banking
Non-Banking
Holding Company
Banking
Holding Company
Banking
Banking
Banking
New Zealand
New Zealand
Holding Company
Banking
New Zealand
Funds Management
New Zealand
New Zealand
Finance
Holding Company
New Zealand
Funds Management
New Zealand
Finance
Singapore
Singapore
Australia
Australia
China
Papua New Guinea
Holding Company
Captive-Insurance
Mortgage Insurance
Finance
Banking
Banking
Guam
Guam
Holding Company
Banking
Australia
Securitisation Manager
Indonesia
Banking
1. Audited by overseas KPMG firms — either as part of the Group audit, or for standalone financial statements as required.
2. Audited by Law Partners.
3. Not owned by the Group. Control exists as the Group retains substantially all the risks and rewards of the operations.
Changes to material controlled entities
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank. Refer to Note 36 Suncorp
Bank acquisition for further details.
Citizens Bancorp and ANZ Guam Inc have ceased business as at 30 September 2024.
Significant restrictions
Controlled entities that are subject to prudential regulation may be required to maintain minimum capital or other regulatory requirements which may, from
time to time, limit the entity’s ability to transfer assets, pay dividends or make other capital distributions to the parent entity or to other entities in the Group.
The Group manages such restrictions within our risk management framework, as outlined in Note 18 Financial risk management and our capital
management strategy, as outlined in Note 25 Capital management.
As at 30 September 2024, restrictions on the ability of an entity within the Group to transfer assets, pay dividends or make other capital distributions to
other entities in the Group were not material to the liquidity or capital management of the Group.
186
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188
Notes to the consolidated financial statements (continued)
27. Controlled entities (continued)
Recognition and measurement
The Group’s subsidiaries are those entities it controls through:
being exposed to, or having rights to, variable returns from the entity; and
being able to affect those returns through its power over the entity.
The Group assesses whether it has power over those entities by examining the Group’s existing rights to direct the relevant activities of the
entity.
If the Group sells or acquires subsidiaries during the year, it includes their operating results in the Group results to the date of disposal or from
the date of acquisition. When the Group’s control ceases, it derecognises the assets and liabilities of the subsidiary, any related non-controlling
interest and other components of equity.
If the Group’s ownership interest in a subsidiary changes in a way that does not result in a loss of control, then the Group accounts for that as
a transaction with equity holders in their capacity as equity holders.
All transactions between Group entities are eliminated on consolidation.
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ANZ 2024 Annual Report
188
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
189
189
27. Controlled entities (continued)
Recognition and measurement
The Group’s subsidiaries are those entities it controls through:
being exposed to, or having rights to, variable returns from the entity; and
being able to affect those returns through its power over the entity.
The Group assesses whether it has power over those entities by examining the Group’s existing rights to direct the relevant activities of the
entity.
If the Group sells or acquires subsidiaries during the year, it includes their operating results in the Group results to the date of disposal or from
the date of acquisition. When the Group’s control ceases, it derecognises the assets and liabilities of the subsidiary, any related non-controlling
interest and other components of equity.
If the Group’s ownership interest in a subsidiary changes in a way that does not result in a loss of control, then the Group accounts for that as
a transaction with equity holders in their capacity as equity holders.
All transactions between Group entities are eliminated on consolidation.
28. Investment in associates
Significant associates of the Group are:
Name of entity
AMMB Holdings Berhad (AmBank)1
PT Bank Pan Indonesia (PT Panin)
Principal activity
Banking and insurance
Consumer and business bank
Worldline Australia Pty Ltd (Worldline)
Payment and transactional services
Aggregate other individually immaterial associates
Total carrying value of associates2
1. The Group fully disposed its interest in AmBank in 2024.
2. Includes the impact of foreign currency translation recognised in the foreign currency translation reserve.
Ordinary share
interest
Carrying
amount $m
2024
0%
39%
49%
n/a
2023
22%
39%
49%
n/a
2024
-
1,415
29
-
2023
881
1,440
26
2
1,444
2,349
Financial information on significant associates
Set out below is the summarised financial information of each associate that is significant to the Group. The summarised financial information is based on
the associates’ IFRS financial information and may require the use of unaudited financial information as each associate has a different financial year to the
Group (PT Panin 31 December, AmBank 31 March, Worldline 31 December).
Principal place of business and country of incorporation
Summarised results
Operating income
Profit/(Loss) for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss)
Less: Total comprehensive (income)/loss attributable to non–controlling
interests
Total comprehensive income/(loss) attributable to owners of associate
Summarised financial position
Total assets2
Total liabilities2
Total net assets2
Less: Non-controlling interests of associate
Net assets attributable to owners of associate
Reconciliation to carrying amount of Group's interest in associate3
Carrying amount at the beginning of the year
Investment
Group's share of total comprehensive income/(loss)
Dividends received from associate
Foreign currency translation reserve adjustments
Partial disposal of investment
Loss on partial disposal of investment
Foreign currency translation reserve reclassified to profit or loss
Less: Carrying value reclassified as Investment securities
Carrying amount at the end of the year
Market value of Group's investment in associate4
AMMB Holdings
Berhad1
Malaysia
PT Bank Pan
Indonesia
Indonesia
Worldline Australia
Pty Ltd
Australia
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
-
-
-
-
-
-
-
-
-
-
-
1,517
1,062
1,273
545
87
632
(8)
624
218
(41)
177
(19)
158
372
24
396
(69)
327
62,057
58,015
4,042
(301)
3,741
20,616
16,078
4,538
(353)
4,185
20,498
16,928
3,570
(348)
3,222
881
-
69
(14)
(21)
(668)
(21)
(5)
(221)
-
-
790
-
138
(42)
(5)
-
-
-
-
1,440
1,318
-
42
-
(67)
-
-
-
-
-
138
-
(16)
-
-
-
-
881
875
1,415
1,448
1,440
1,167
90
(59)
-
(59)
-
(59)
577
502
75
-
75
26
32
(29)
-
-
-
-
-
-
29
n/a
134
(43)
-
(43)
-
(43)
205
137
68
-
68
47
-
(21)
-
-
-
-
-
-
26
n/a
1. On 6 March 2024, the Group partially disposed of its interest in AmBank, reducing its investment by $668 million and its ordinary share interest from 22% to 5%. Following the decrease in ownership, the
Group ceased equity accounting for AmBank and reclassified the investment as Investment securities at fair value through other comprehensive income. On 31 May 2024, the Group disposed of its
remaining 5% interest in AmBank.
2. Includes market value adjustments (including goodwill) the Group made at the time of acquisition (and adjustments for any differences in accounting policies).
3. For AmBank this includes movements up to cessation of equity accounting.
4. Market value is based on a price per share at reporting date and does not include any adjustments for the size of our holding.
188
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190
Notes to the consolidated financial statements (continued)
28. Investment in associates (continued)
Impairment assessment
The Group assesses the carrying value of its associates investments for impairment indicators. The impairment assessment of non-lending assets
identified that one of the Group’s associated investments PT Panin had indicators of impairment as a result of its carrying value exceeding its fair value less
costs of disposal (FVLCD) at times throughout the year. No impairment was recognised as its carrying value was supported by its FVLCD at 30 September
2024.
Recognition and measurement
An associate is an entity for which the Group has significant influence over its operating and financial policies but which it does not control. The
Group accounts for associates using the equity method. Its investments in associates are carried at cost plus the post-acquisition share of
changes in the associate’s net assets less accumulated impairments. Dividends the Group receives from associates are recognised as a
reduction in the carrying amount of the investment. The Group includes goodwill recognised by the associate in the carrying amount of the
investment. It does not individually test the goodwill incorporated in the associates carrying amount for impairment.
At least at each reporting date, the Group reviews investments in associates for any indication of impairment. If an indication of impairment
exists, then the Group determines the recoverable amount of the associate using the higher of:
the associate’s fair value less cost of disposal; and
its value-in-use (VIU).
We use a discounted cash flow methodology, and when applicable, other methodologies (such as capitalisation of earnings methodology), to
determine the recoverable amount when determining a VIU.
Key judgements and estimates
Investments in associates and joint ventures are assessed at each reporting date and tested for impairment when there is an indication that
the investment may be impaired. In addition, the Group is required to assess at each reporting date whether the recoverable amount of the
Group’s investment has increased to such a level as to support the reversal of any prior period impairments.
190
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Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
191
191
29. Structured entities
A Structured Entity (SE) is an entity that has been designed such that voting or similar rights are not the dominant factor in determining who controls the
entity. SEs are generally established with restrictions on their ongoing activities in order to achieve narrow and well defined objectives.
SEs are classified as subsidiaries and consolidated when control exists. If the Group does not control a SE, then it is not consolidated. This note provides
information on both consolidated and unconsolidated SEs.
The Group’s involvement with SEs is as follows:
Type
Securitisation
Details
The Group establishes SEs to securitise customer loans and advances that it has originated, in order to diversify
sources of funding for liquidity management. Securitisation programs include customer loans and advances
assigned to bankruptcy remote SEs to provide either security for obligations payable on notes issued by the SEs
to external investors or create assets held by the Group eligible for repurchase agreements with applicable central
banks.
The Group retains control over these SEs and therefore they are consolidated. Refer to Note 30 Transfers of
financial assets for further details.
The Group also establishes SEs on behalf of customers to securitise their loans or receivables. The Group may
manage these securitisation vehicles or provide liquidity or other support. Additionally, the Group may acquire
interests in securitisation vehicles set up by third parties through holding securities issued by such entities. In
limited circumstances where control exists, the Group consolidates the SE.
Covered bond issuances
Certain loans and advances have been assigned to bankruptcy remote SEs to provide security for issuances of
debt securities by the Group. The Group retains control over these SEs and therefore they are consolidated. Refer
to Note 30 Transfers of financial assets for further details.
Structured finance arrangements
The Group is involved with SEs established:
Funds management activities
in connection with structured lending transactions to facilitate debt syndication and/or to ring-fence collateral;
and
to own assets that are leased to customers in structured leasing transactions.
The Group may manage the SE, hold minor amounts of the SE’s capital, or provide risk management products
(derivatives) to the SE. In most instances, the Group does not control these SEs. In limited circumstances where
control exists, the Group consolidates the SE.
The Group is the scheme manager for a number of Managed Investment Schemes (MIS) in New Zealand. These
MIS are financed through the issue of units to investors and the Group considers them to be SEs. The Group’s
interests in these MIS are limited to receiving fees for services or providing risk management products
(derivatives). These interests do not create significant exposures that would allow the Group to control the funds.
Therefore, these MIS are not consolidated.
Consolidated structured entities
Financial or other support provided to consolidated structured entities
The Group provides financial support to consolidated SEs as outlined below.
Securitisation and covered bond
issuances
The Group provides lending facilities, derivatives and commitments to these SEs and/or holds debt instruments
they have issued.
Structured finance arrangements The assets held by these SEs are normally pledged as collateral for financing provided. Certain consolidated SEs
are financed entirely by the Group while others are financed by syndicated loan facilities in which the Group is a
participant. The financing provided by the Group includes lending facilities where the Group’s exposure is limited to
the amount of the loan and any undrawn amount. Additionally, the Group has provided Letters of Support to these
consolidated SEs confirming that the Group will not demand repayment of the financing provided for the ensuing
12 month period.
The Group did not provide any non-contractual support to consolidated SEs during the year (2023: nil). Other than as disclosed above, the Group does
not have any current intention to provide financial or other support to consolidated SEs.
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192
192
Notes to the consolidated financial statements (continued)
29. Structured entities (continued)
Unconsolidated structured entities
Group’s interest in unconsolidated structured entities
An ‘interest’ in an unconsolidated SE is any form of contractual or non-contractual involvement with a SE that exposes the Group to variability of returns
from the performance of that SE. These interests include, but are not limited to: holdings of debt or equity securities; derivatives that pass-on risks specific
to the performance of the SE, lending, loan commitments, financial guarantees, and fees from funds management activities.
For the purpose of disclosing interests in unconsolidated SEs:
no disclosure is made if the Group’s involvement is not more than a passive interest - for example: when the Group’s involvement constitutes a typical
customer-supplier relationship. On this basis, exposures to unconsolidated SEs that arise from lending, trading and investing activities are not
considered disclosable interests - unless the design of the structured entity allows the Group to participate in decisions about the relevant activities
(being those that significantly affect the entity’s returns).
‘interests’ do not include derivatives intended to expose the Group to market-risk (rather than performance risk specific to the SE) or derivatives
through which the Group creates, rather than absorbs, variability of the unconsolidated SE (such as purchase of credit protection under a credit default
swap).
The table below sets out the Group’s interests in unconsolidated SEs together with the maximum exposure to loss that could arise from
those interests:
On-balance sheet interests
Investment securities
Gross loans and advances
Total on-balance sheet
Off-balance sheet interests
Commitments (facilities undrawn)
Guarantees
Total off-balance sheet
Maximum exposure to loss
Securitisation
2024
$m
2023
$m
Structured finance
Total
2024
$m
2023
$m
2024
$m
2023
$m
1,819
11,447
13,266
2,070
10,367
12,437
2,279
3,270
50
50
2,329
3,320
15,595
15,757
-
23
23
-
-
-
23
-
24
24
-
-
-
1,819
11,470
13,289
2,070
10,391
12,461
2,279
3,270
50
50
2,329
3,320
24
15,618
15,781
In addition to the interests above, the Group earned funds management fees from unconsolidated investment funds of $184 million
(2023: $177 million) during the year.
The Group’s maximum exposure to loss represents the maximum amount of loss that the Group could incur as a result of its involvement with
unconsolidated SEs if loss events were to take place - regardless of the probability of occurrence. This does not in any way represent the actual losses
expected to be incurred. Furthermore, the maximum exposure to loss is stated gross of the effects of hedging and collateral arrangements entered into to
mitigate the Group’s exposure to loss.
The maximum exposure to loss has been determined as:
the carrying amount of Investment securities measured at amortised cost; and
the carrying amount plus the undrawn amount of any committed loans and advances.
The size of unconsolidated SEs is indicated by total assets which vary by SE with the largest single SE having a value of approximately $4.7 billion.
The Group did not provide any non-contractual support to unconsolidated SEs during the year (2023: nil) nor does it have any current intention to provide
financial or other support to unconsolidated SEs.
192
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192
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
193
193
29. Structured entities (continued)
Unconsolidated structured entities
Group’s interest in unconsolidated structured entities
29. Structured entities (continued)
Sponsored unconsolidated structured entities
The Group may also sponsor unconsolidated SEs in which it has no disclosable interest.
An ‘interest’ in an unconsolidated SE is any form of contractual or non-contractual involvement with a SE that exposes the Group to variability of returns
from the performance of that SE. These interests include, but are not limited to: holdings of debt or equity securities; derivatives that pass-on risks specific
For the purposes of this disclosure, the Group considers itself the ‘sponsor’ of an unconsolidated SE if it is the primary party involved in the design and
establishment of that SE and:
the Group is the major user of that SE; or
the Group’s name appears in the name of that SE, or on its products; or
the Group provides implicit or explicit guarantees of that SE’s performance.
The Group has sponsored the ANZ PIE Fund in New Zealand, which invests only in deposits with ANZ Bank New Zealand. The Group does not provide any
implicit or explicit guarantees of the capital value or performance of investments in the ANZ PIE Fund. There was no income received from, nor assets
transferred to, this entity during the year.
Key judgements and estimates
Significant judgement is required in assessing whether the Group has control over Structured Entities. Judgement is required to determine the
existence of:
power over the relevant activities (being those that significantly affect the entity’s returns); and
exposure to variable returns of the entity.
to the performance of the SE, lending, loan commitments, financial guarantees, and fees from funds management activities.
For the purpose of disclosing interests in unconsolidated SEs:
no disclosure is made if the Group’s involvement is not more than a passive interest - for example: when the Group’s involvement constitutes a typical
customer-supplier relationship. On this basis, exposures to unconsolidated SEs that arise from lending, trading and investing activities are not
considered disclosable interests - unless the design of the structured entity allows the Group to participate in decisions about the relevant activities
(being those that significantly affect the entity’s returns).
‘interests’ do not include derivatives intended to expose the Group to market-risk (rather than performance risk specific to the SE) or derivatives
through which the Group creates, rather than absorbs, variability of the unconsolidated SE (such as purchase of credit protection under a credit default
The table below sets out the Group’s interests in unconsolidated SEs together with the maximum exposure to loss that could arise from
swap).
those interests:
On-balance sheet interests
Investment securities
Gross loans and advances
Total on-balance sheet
Off-balance sheet interests
Commitments (facilities undrawn)
Guarantees
Total off-balance sheet
Maximum exposure to loss
(2023: $177 million) during the year.
Securitisation
Structured finance
Total
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
1,819
11,447
13,266
2,070
10,367
12,437
2,279
3,270
50
50
2,329
3,320
15,595
15,757
-
23
23
-
-
-
23
-
24
24
-
-
-
1,819
11,470
13,289
2,070
10,391
12,461
2,279
3,270
50
50
2,329
3,320
24
15,618
15,781
In addition to the interests above, the Group earned funds management fees from unconsolidated investment funds of $184 million
The Group’s maximum exposure to loss represents the maximum amount of loss that the Group could incur as a result of its involvement with
unconsolidated SEs if loss events were to take place - regardless of the probability of occurrence. This does not in any way represent the actual losses
expected to be incurred. Furthermore, the maximum exposure to loss is stated gross of the effects of hedging and collateral arrangements entered into to
mitigate the Group’s exposure to loss.
The maximum exposure to loss has been determined as:
the carrying amount of Investment securities measured at amortised cost; and
the carrying amount plus the undrawn amount of any committed loans and advances.
The size of unconsolidated SEs is indicated by total assets which vary by SE with the largest single SE having a value of approximately $4.7 billion.
The Group did not provide any non-contractual support to unconsolidated SEs during the year (2023: nil) nor does it have any current intention to provide
financial or other support to unconsolidated SEs.
192
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194
194
Notes to the consolidated financial statements (continued)
30. Transfers of financial assets
In the normal course of business the Group enters into transactions where it transfers financial assets directly to third parties or to SEs. These transfers
may result in the Group fully, or partially, derecognising those financial assets - depending on the Group’s exposure to the risks and rewards or control
over the transferred assets. If the Group retains substantially all of the risk and rewards of a transferred asset, the transfer does not qualify for
derecognition and the asset remains on the Group’s Balance Sheet in its entirety.
Securitisations
Net loans and advances include residential mortgages securitised under the Group’s securitisation programs which are assigned to bankruptcy remote
SEs to provide security for obligations payable on the notes issued by the SEs. The holders of the issued notes have full recourse to the pool of residential
mortgages which have been securitised and the Group cannot otherwise pledge or dispose of the transferred assets.
In some instances, the Group is also the holder of the securitised notes issued by the SEs. In addition, the Group is entitled to any residual income of the
SEs and sometimes enters into derivatives with the SEs. The Group retains the risks and rewards of the residential mortgages and continues to recognise
the mortgages as financial assets.
The Group is exposed to variable returns from its involvement with these securitisation SEs and has the ability to affect those returns through its power
over the SEs activities. The SEs are therefore consolidated by the Group.
Covered bonds
The Group operates various global covered bond programs to raise funding in its primary markets. Net loans and advances include residential mortgages
assigned to bankruptcy remote SEs associated with these covered bond programs. In respect of each program, a covered bond guarantor has
guaranteed payments of interest and principal pursuant to a guarantee which is secured over its assets, including these residential mortgages.
Substantially all of the assets of each covered bond guarantor consist of that covered bond guarantor’s equitable interests in mortgage loans secured by
residential real estate.
The covered bond holders have dual recourse to the issuer and the cover pool of assets. The issuer cannot otherwise pledge or dispose of the
transferred assets, however, subject to legal arrangements it may repurchase and substitute assets as long as the required cover is maintained.
The Group is required to maintain the cover pool at a level sufficient to cover the bond obligations. In addition, the Group is entitled to any residual income
of the covered bond SEs (after all payments to the covered bond holders and external parties) and enters into derivatives with the SEs. The Group retains
the majority of the risks and rewards of the residential mortgages and continues to recognise the mortgages as financial assets.
The Group is exposed to variable returns from its involvement with the covered bond SEs and has the ability to affect those returns through its power over
the SEs activities. The SEs are therefore consolidated by the Group. The covered bonds issued externally are included within debt issuances.
Repurchase agreements
When the Group sells securities subject to repurchase agreements under which we retain substantially all the risks and rewards of ownership, then those
assets do not qualify for derecognition. An associated liability is recognised for the consideration received from the counterparty.
Structured finance arrangements
The Group arranges funding for certain customer transactions through structured leasing. These transactions are recognised on Group’s Balance Sheet
as lease receivables or loans. At times, other financial institutions participate in the funding of these arrangements. This participation involves a
proportionate transfer of the rights to the assets recognised by the Group. The participating banks have limited recourse to the leased assets and related
proceeds. Where the Group continues to be exposed to some of the risks of the transferred assets through a derivative or other continuing involvement,
the Group does not derecognise the lease receivable or loan. Instead, the Group recognises an associated liability representing its obligations to the
participating financial institutions.
The tables below set out the balance of assets transferred that do not qualify for derecognition, along with the associated liabilities.
Current carrying amount of assets transferred
Carrying amount of associated liabilities
Securitisations1,2
Covered bonds
2024
$m
3,730
3,640
2023
$m
886
880
2024
$m
34,235
18,931
2023
$m
31,188
18,223
Repurchase
agreements
2024
$m
2023
$m
Structured finance
arrangements
2024
$m
2023
$m
45,709
44,315
47,552
44,454
15
15
27
27
1. Does not include transfers to internal structured entities where there are no external investors.
2. The securitisation noteholders have recourse only to the pool of residential mortgages which have been securitised. The carrying value of securitised assets and the associated liabilities approximates
their fair value.
194
ANZ 2024 Annual Report
ANZ 2024 Annual Report
ANZ 2024 Annual Report
194
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
195
195
In the normal course of business the Group enters into transactions where it transfers financial assets directly to third parties or to SEs. These transfers
may result in the Group fully, or partially, derecognising those financial assets - depending on the Group’s exposure to the risks and rewards or control
over the transferred assets. If the Group retains substantially all of the risk and rewards of a transferred asset, the transfer does not qualify for
derecognition and the asset remains on the Group’s Balance Sheet in its entirety.
Securitisations
Net loans and advances include residential mortgages securitised under the Group’s securitisation programs which are assigned to bankruptcy remote
SEs to provide security for obligations payable on the notes issued by the SEs. The holders of the issued notes have full recourse to the pool of residential
mortgages which have been securitised and the Group cannot otherwise pledge or dispose of the transferred assets.
In some instances, the Group is also the holder of the securitised notes issued by the SEs. In addition, the Group is entitled to any residual income of the
SEs and sometimes enters into derivatives with the SEs. The Group retains the risks and rewards of the residential mortgages and continues to recognise
the mortgages as financial assets.
The Group is exposed to variable returns from its involvement with these securitisation SEs and has the ability to affect those returns through its power
over the SEs activities. The SEs are therefore consolidated by the Group.
Covered bonds
residential real estate.
The Group operates various global covered bond programs to raise funding in its primary markets. Net loans and advances include residential mortgages
assigned to bankruptcy remote SEs associated with these covered bond programs. In respect of each program, a covered bond guarantor has
guaranteed payments of interest and principal pursuant to a guarantee which is secured over its assets, including these residential mortgages.
Substantially all of the assets of each covered bond guarantor consist of that covered bond guarantor’s equitable interests in mortgage loans secured by
The covered bond holders have dual recourse to the issuer and the cover pool of assets. The issuer cannot otherwise pledge or dispose of the
transferred assets, however, subject to legal arrangements it may repurchase and substitute assets as long as the required cover is maintained.
The Group is required to maintain the cover pool at a level sufficient to cover the bond obligations. In addition, the Group is entitled to any residual income
of the covered bond SEs (after all payments to the covered bond holders and external parties) and enters into derivatives with the SEs. The Group retains
the majority of the risks and rewards of the residential mortgages and continues to recognise the mortgages as financial assets.
The Group is exposed to variable returns from its involvement with the covered bond SEs and has the ability to affect those returns through its power over
the SEs activities. The SEs are therefore consolidated by the Group. The covered bonds issued externally are included within debt issuances.
When the Group sells securities subject to repurchase agreements under which we retain substantially all the risks and rewards of ownership, then those
assets do not qualify for derecognition. An associated liability is recognised for the consideration received from the counterparty.
Repurchase agreements
Structured finance arrangements
The Group arranges funding for certain customer transactions through structured leasing. These transactions are recognised on Group’s Balance Sheet
as lease receivables or loans. At times, other financial institutions participate in the funding of these arrangements. This participation involves a
proportionate transfer of the rights to the assets recognised by the Group. The participating banks have limited recourse to the leased assets and related
proceeds. Where the Group continues to be exposed to some of the risks of the transferred assets through a derivative or other continuing involvement,
the Group does not derecognise the lease receivable or loan. Instead, the Group recognises an associated liability representing its obligations to the
participating financial institutions.
The tables below set out the balance of assets transferred that do not qualify for derecognition, along with the associated liabilities.
Current carrying amount of assets transferred
Carrying amount of associated liabilities
Securitisations1,2
Covered bonds
Repurchase
agreements
Structured finance
arrangements
2024
$m
3,730
3,640
2023
$m
886
880
2024
$m
34,235
18,931
2023
$m
31,188
18,223
2024
$m
45,709
44,315
2023
$m
47,552
44,454
2024
$m
15
15
2023
$m
27
27
1. Does not include transfers to internal structured entities where there are no external investors.
2. The securitisation noteholders have recourse only to the pool of residential mortgages which have been securitised. The carrying value of securitised assets and the associated liabilities approximates
their fair value.
30. Transfers of financial assets
31. Superannuation and post employment benefit obligations
Set out below is a summary of amounts recognised in the Balance Sheet in respect of the defined benefit superannuation schemes:
Defined benefit obligation and scheme assets
Present value of funded defined benefit obligation
Fair value of scheme assets
Net defined benefit asset
As represented in the Balance Sheet
Net liabilities arising from defined benefit obligations included in Payables and
other liabilities
Net assets arising from defined benefit obligations included in Other assets
Net defined benefit asset
Weighted average duration of the benefit payments reflected in the defined
benefit obligation (years)
2024
$m
(998)
1,150
152
(4)
156
152
11.3
2023
$m
(959)
1,131
172
(4)
176
172
11.4
As at the most recent reporting dates of the schemes, the aggregate surplus of net market value of assets over the value of accrued benefits on a
funding basis was $71 million (2023: $53 million surplus). In 2024, the Group made defined benefit contributions totaling $2 million (2023: $2 million). It
expects to make contributions of approximately $2 million next financial year.
Governance of the schemes and funding of the defined benefit sections
The main defined benefit superannuation schemes in which the Group participates operate under trust law and are managed and administered on behalf
of the members in accordance with the terms of the relevant trust deed and rules and all relevant legislation. These schemes have corporate trustees,
which are wholly owned subsidiaries of the Group. The trustees are the legal owners of the assets, which are held separately from the assets of the
Group, and are responsible for setting investment policy and agreeing funding requirements with the employer through the triennial actuarial valuation
process.
The Group has defined benefit arrangements in Australia, Japan, New Zealand, Philippines, Taiwan and United Kingdom. The defined benefit section of the
ANZ Australian Staff Superannuation Scheme, the ANZ UK Staff Pension Scheme and the ANZ National Retirement Scheme in New Zealand are the three
largest plans. They have been closed to new members since 1987, 2004 and 1991 respectively. None of the schemes had a material deficit, or surplus,
at the last funding valuation. The Group has no present liability under any of the schemes’ trust deeds to fund a deficit (measured on a funding basis). A
contingent liability of the Group may arise if any of the schemes were wound up.
On 24 June 2024, the trustees of the ANZ UK Staff Pension Scheme (Scheme) executed a GBP 455 million bulk annuity insurance policy. The insurance
policy was purchased using the existing assets of the Scheme. The transaction secured an insurance asset that fully matches pension liabilities of the
Scheme and is therefore measured at an amount that matches the insured scheme liabilities. The Group retains ultimate responsibility for the benefits
provided to the Scheme members. In accordance with AASB 119 Employee Benefits, the impact of this transaction was to record a remeasurement loss
of GBP 15 million in other comprehensive income.
Recognition and measurement
Defined benefit superannuation schemes
The Group operates a small number of defined benefit schemes. Independent actuaries calculate the liability and expenses related to
providing benefits to employees under each defined benefit scheme. They use the Projected Unit Credit Method to value the liabilities. The
Balance Sheet includes:
a defined benefit liability if the obligation is greater than the fair value of the schemes assets; and
an asset (capped to its recoverable amount) if the fair value of the assets is greater than the obligation.
In each reporting period, the movements in the net defined benefit liability are recognised as follows:
the net movement relating to the current period’s service cost, net interest on the defined benefit liability, past service costs and other costs
(such as the effects of any curtailments and settlements) as operating expenses;
remeasurements of the net defined benefit liability (which comprise actuarial gains and losses and return on scheme assets, excluding
interest income included in net interest) directly in retained earnings through other comprehensive income; and
contributions of the Group directly against the net defined benefit position.
Defined contribution superannuation schemes
The Group operates a number of defined contribution schemes. It also contributes (according to local law, in the various countries in which it
operates) to Government and other plans that have the characteristics of defined contribution plans. The Group’s contributions to these
schemes are recognised as personnel expenses when they are incurred.
194
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ANZ 2024 Annual Report
ANZ 2024 Annual Report
196
196
Notes to the consolidated financial statements (continued)
31. Superannuation and post employment benefit obligations (continued)
Key judgements and estimates
The main assumptions we use in valuing defined benefit obligations are listed in the table below. A change to any assumptions, or applying
different assumptions, could have an effect on the Statement of Other Comprehensive Income and Balance Sheet.
Discount rate (% p.a.)
Future salary increases (% p.a.)
Future pension indexation
2024
1.5-5.35
2023
1.15-5.6
2.0-3.7
2.0-3.5
Sensitivity analysis
change in significant
assumptions
0.5% increase
In payment (% p.a.)/In deferment (% p.a.)
2.3-3.3/2.8
2.9-3.4/2.8
0.5% increase
Life expectancy at age 60 for current pensioners
1 year increase
– Males (years)
– Females (years)
26.3-28.4
26.3-28.3
29.3-30.3
29.2-30.2
Increase/(decrease) in
defined benefit obligation
2024
2023
$m
(45)
36
34
$m
(43)
34
33
196
ANZ 2024 Annual Report
ANZ 2024 Annual Report
ANZ 2024 Annual Report
196
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
31. Superannuation and post employment benefit obligations (continued)
32. Employee share and option plans
Shareholder
Notes to the Financial Statements
information
Financial report
197
197
Key judgements and estimates
The main assumptions we use in valuing defined benefit obligations are listed in the table below. A change to any assumptions, or applying
different assumptions, could have an effect on the Statement of Other Comprehensive Income and Balance Sheet.
2024
2023
1.5-5.35
1.15-5.6
2.0-3.7
2.0-3.5
Sensitivity analysis
change in significant
assumptions
0.5% increase
Increase/(decrease) in
defined benefit obligation
2024
2023
$m
(45)
36
34
$m
(43)
34
33
Discount rate (% p.a.)
Future salary increases (% p.a.)
Future pension indexation
In payment (% p.a.)/In deferment (% p.a.)
2.3-3.3/2.8
2.9-3.4/2.8
0.5% increase
Life expectancy at age 60 for current pensioners
1 year increase
– Males (years)
– Females (years)
26.3-28.4
26.3-28.3
29.3-30.3
29.2-30.2
The Group operates a number of employee share and option schemes under the ANZ Employee Share Acquisition Plan and the ANZ Share Option Plan
which are operated by the Company. These are Group share-based payment arrangements under which shares in ANZGHL (ANZ shares) are allocated or
granted to employees of the Group.
ANZ Employee Share Acquisition Plan
ANZ Employee Share Acquisition Plan schemes that operated during 2024 and 2023 were the Deferred Share Plan and the Variable Pay to Shares (VPS)
Offer. The ANZ Incentive Plan (ANZIP) (the variable remuneration plan operating across the Group) has Short Term Variable Remuneration or Variable
Remuneration delivered under the Deferred Share Plan or ANZ Share Option Plan for eligible employees.
Deferred Share Plan
i) ANZ Incentive Plan (ANZIP) – Short Term Variable Remuneration (STVR) and Variable Remuneration (VR) – deferred shares
Award Type
STVR (deferred shares)
STVR/VR historical (deferred
shares)
VR (deferred shares)
VR historical (deferred
shares)
Eligibility
Chief Executive Officer (CEO), Group Executive Committee
(ExCo) and Group General Manager Internal Audit (GGM IA)1.
All other employees (excluding select roles in the United
Kingdom (UK)/China/Hong Kong (HK)2).
Financial Year (FY)
of grant
Grant approach
2023 and 2022 Performance
and Remuneration Review
(PRR): granted in FY24 &
FY23
50% of the CEO, ExCo and
GGM IA’s Short Term Variable
Remuneration (STVR)
deferred as shares.
Historical grants: on foot
during FY24 & FY23
Grants from 1 Oct 2023:
granted in FY24
2023 and 2022 PRR:
granted in FY24 & FY23
Historical grants: on foot
during FY24 & FY23
50% of the CEO’s STVR, 25%
of ExCo’s Variable
Remuneration (VR) (except for
the Chief Risk Officer (CRO)),
and 33% of the CRO and
GGM IA’s VR, deferred as
shares.
If VR is at or exceeds AUD
125,000, then 40% of total
VR amount is deferred as
shares.
If VR is at or exceeds AUD
100,000, then 60% of total
VR amount is deferred as
shares.
Conditions
Deferred over years two and three, where year 1 includes the
performance period (i.e., 1 October to 30 September). Granted
in late November.
Deferred over a minimum of
four years (including the
performance period), vesting
no faster than on a pro-rata
basis and only after two
years (i.e., 33% year two,
33% year three, 34% year
four).
Deferred over years two,
three and four, where year 1
includes the performance
period. Granted in late
November.
Allocation value
Deferred shares granted
based on the Volume
Weighted Average Price
(VWAP) of ANZ shares traded
on the ASX in the five trading
days leading up to and
including 1 October.
Deferred shares granted based on the VWAP of ANZ shares traded on the ASX in the five
trading days leading up to and including the date of grant.
1. All ANZGHL/ANZBGL Financial Accountability Regime (FAR) Accountable Executives.
2. Specific deferral arrangements also exist under ANZIP for roles defined as specific country level Material Risk Takers (MRTs), in line with local regulatory requirements.
ii) Exceptional circumstances
Remuneration
forgone
In exceptional circumstances, we grant deferred shares to certain employees when they start with the Group to
compensate them for remuneration they have forgone from their previous employer. The vesting period generally
aligns with the remaining vesting period of the remuneration they have forgone, and therefore varies between grants.
Retention
We may grant deferred shares to high performing employees who are regarded as a significant retention risk to the
Group.
196
197
ANZ 2024 Annual Report
ANZ 2024 Annual Report
198
198
Notes to the consolidated financial statements (continued)
32. Employee share and option plans (continued)
iii) Further information
Cessation
Dividends
Instrument
Unless the Board1 decides otherwise, employees forfeit their unvested deferred shares if they resign, are terminated on
notice, or are dismissed for serious misconduct. The deferred shares may be held in trust beyond the deferral period.
Dividends are reinvested in the Dividend Reinvestment Plan.
Deferred share rights may be granted instead of deferred shares in some countries as locally appropriate (see deferred
share rights Section).
Expensing value (fair
value)
We expense the fair value of deferred shares on a straight-line basis over the relevant vesting period and we recognise
the expense as a share-based compensation expense with a corresponding increase in equity. Deferred shares are
expensed based on the one-day VWAP at the date of grant.
2024 and 2023 grants
During the 2024 year, we granted 2,863,800 deferred shares (2023: 2,244,181) with a weighted average allocation
value of $24.45 (2023: $24.37).
Downward adjustment
Deferred shares remain at risk and the Board has the discretion to adjust the number of deferred shares downwards,
including to zero at any time before the vesting date (malus), and limited to select employees2, recovery post vesting
(i.e., clawback). The Group’s downward adjustment provisions are detailed in Section 4.5 of the 2024 Remuneration
Report.
Board discretion was exercised to apply malus to 4,138 deferred shares in 2024 (2023: nil).
1. References to ‘the Board’ throughout this note means the Boards of ANZGHL and ANZBGL.
2. Clawback applies to the CEO, ExCo and GGM IA (for awards granted in the 2023 and 2024 financial years), and to select senior employees in jurisdictions where clawback regulations apply.
Variable Pay to Shares (VPS) Offer
Eligibility, grant
approach and
conditions
Allocation value
Expensing value
(fair value)
2024 grants
VPS provides employees in Australia the opportunity to receive up to $1,000 worth of ANZ shares with concessional
tax treatment (where criteria are met). All ANZ shares are held by a custodian or nominee appointed by the Trustee on
the Trustee’s behalf and are restricted for 3 years. During this time employees benefit from dividend payments which
are reinvested through the Dividend Reinvestment Plan (DRP) and have voting entitlements. After the restriction period
has been reached the shares can sold or transferred.
Granted based on the VWAP of ANZ shares traded on the ASX in the five trading days leading up to and including the
date of grant.
Expensed based on the one-day VWAP at the date of grant.
During the 2024 year, we granted 51,619 shares on 22 November 2023 (2023: 55,600) at an issue price of $24.20
(2023: $24.46).
Expensing of the ANZ Employee Share Acquisition Plan
Expensing value
(fair value)
The fair value of shares we granted during 2024 under the Deferred Share Plan and VPS Offer, measured as at the
date of grant of the shares, is $71.4 million (2023: $56.5 million) based on 2,915,419 shares
(2023: 2,299,781) with a weighted average VWAP of $24.48 (2023: $24.57).
198
ANZ 2024 Annual Report
199
199
Financial report
Shareholder
Notes to the Financial Statements
information
ANZ 2024 Annual Report
ANZ 2024 Annual Report
198
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
32. Employee share and option plans (continued)
32. Employee share and option plans (continued)
iii) Further information
Cessation
Unless the Board1 decides otherwise, employees forfeit their unvested deferred shares if they resign, are terminated on
notice, or are dismissed for serious misconduct. The deferred shares may be held in trust beyond the deferral period.
Dividends
Instrument
Dividends are reinvested in the Dividend Reinvestment Plan.
Deferred share rights may be granted instead of deferred shares in some countries as locally appropriate (see deferred
share rights Section).
2024 and 2023 grants
During the 2024 year, we granted 2,863,800 deferred shares (2023: 2,244,181) with a weighted average allocation
value of $24.45 (2023: $24.37).
Downward adjustment
Deferred shares remain at risk and the Board has the discretion to adjust the number of deferred shares downwards,
including to zero at any time before the vesting date (malus), and limited to select employees2, recovery post vesting
(i.e., clawback). The Group’s downward adjustment provisions are detailed in Section 4.5 of the 2024 Remuneration
Report.
Board discretion was exercised to apply malus to 4,138 deferred shares in 2024 (2023: nil).
1. References to ‘the Board’ throughout this note means the Boards of ANZGHL and ANZBGL.
2. Clawback applies to the CEO, ExCo and GGM IA (for awards granted in the 2023 and 2024 financial years), and to select senior employees in jurisdictions where clawback regulations apply.
Variable Pay to Shares (VPS) Offer
Eligibility, grant
approach and
conditions
VPS provides employees in Australia the opportunity to receive up to $1,000 worth of ANZ shares with concessional
tax treatment (where criteria are met). All ANZ shares are held by a custodian or nominee appointed by the Trustee on
the Trustee’s behalf and are restricted for 3 years. During this time employees benefit from dividend payments which
are reinvested through the Dividend Reinvestment Plan (DRP) and have voting entitlements. After the restriction period
has been reached the shares can sold or transferred.
Allocation value
Granted based on the VWAP of ANZ shares traded on the ASX in the five trading days leading up to and including the
Expensing value
Expensed based on the one-day VWAP at the date of grant.
(fair value)
2024 grants
date of grant.
(2023: $24.46).
During the 2024 year, we granted 51,619 shares on 22 November 2023 (2023: 55,600) at an issue price of $24.20
Expensing value (fair
We expense the fair value of deferred shares on a straight-line basis over the relevant vesting period and we recognise
Rules
value)
the expense as a share-based compensation expense with a corresponding increase in equity. Deferred shares are
expensed based on the one-day VWAP at the date of grant.
ANZ Share Option Plan
Allocation
We may grant selected employees options/rights which entitle them to acquire fully paid ordinary ANZ shares at a
fixed price at the time the options/rights vest. Voting and dividend rights will be attached to the ordinary shares
allocated on exercise of the options/rights.
Each option/right entitles the holder to one ordinary share subject to the terms and conditions imposed on grant.
Exercise price of options, determined in accordance with the rules of the plan, is generally based on the VWAP of the
shares traded on the ASX in the week leading up to and including the date of grant. For rights, the exercise price is nil.
Prior to the exercise of the option/right, if ANZ changes its share capital due to a bonus share issue, pro-rata new
share issue or reorganisation, the following adjustments are required:
Issue of bonus shares - When the holder exercises their option, they are also entitled to be issued the number of
bonus shares they would have been entitled to had they held the underlying shares at the time of the bonus issue;
Pro-rata share offer - We will adjust the exercise price of the option in the manner set out in the ASX Listing Rules;
and
Reorganisation - In respect of rights, if there is a bonus issue or reorganisation of ANZ’s share capital, then the
Board may adjust the number of rights or the number of underlying shares so that there is no advantage or
disadvantage to the holder.
Holders otherwise have no other entitlements to participate:
in a share issue of a body corporate other than ANZ (such as a subsidiary).
in any new issue of ANZ securities before they exercise their options/rights; or
Any portion of the award which vests may, at the Boards discretion, be satisfied by a cash equivalent payment rather
than shares.
Expensing value
(fair value)
Satisfying vesting
We expense the fair value of options/rights on a straight-line basis over the relevant vesting period and we recognise
the expense as a share-based compensation expense with a corresponding increase in equity. Factors considered in
determining the fair value include: the market performance conditions, share price volatility, life of the instrument,
dividend yield, and share price at grant date.
Any portion of the award of options/rights (that have met the applicable time and performance conditions) may be
satisfied by a cash equivalent payment rather than shares at Board discretion.
In financial year 2024, all deferred share rights were satisfied through a share allocation, other than 95,968 deferred
share rights (2023: 70,231) for which a cash payment was made.
100% of the performance rights (PR) granted in late 2019 (2019 PR award) were lapsed, as the performance hurdles
were not met when tested in November 2023 – the end of the performance period. There were no PR due to vest in
financial year 2023, as a result of a change in the performance period from three years to four years.
Cessation
The provisions that apply if the employee’s employment ends are in Section 8.2.3 of the 2024 Remuneration Report.
Expensing of the ANZ Employee Share Acquisition Plan
Downward adjustment
As per Deferred Share Plan.
Expensing value
The fair value of shares we granted during 2024 under the Deferred Share Plan and VPS Offer, measured as at the
(fair value)
date of grant of the shares, is $71.4 million (2023: $56.5 million) based on 2,915,419 shares
(2023: 2,299,781) with a weighted average VWAP of $24.48 (2023: $24.57).
198
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200
200
Notes to the consolidated financial statements (continued)
32. Employee share and option plans (continued)
Option plans that operated during 2024 and 2023
i) Long Term Variable Remuneration (LTVR) and Variable Remuneration (VR) - restricted rights (RR), performance rights (PR), and deferred share
rights (DSR)
Award Type
LTVR (RR & PR)
LTVR / VR historical (PR)
ANZIP VR (DSR)
ANZIP historical VR (DSR)
Eligibility
CEO, ExCo and GGM IA1
CEO and ExCo1
All other employees (excluding select roles in the
UK/China/HK2) in countries where DSR may be granted
instead of deferred shares
FY of grant
2023 and 2022 PRR: granted
in FY24 & FY23
Historical grants: on foot during
FY24 & FY23
Grants from 1 Oct
2023: granted in FY24
2023 and 2022 PRR:
granted in FY24 & FY23
Historical grants: on foot
during FY24 & FY23
If VR is at or exceeds AUD
100,000, then 60% of total
VR amount is deferred.
DSR provide a right to
acquire one ordinary ANZ
share at nil cost after a
specified vesting period.
Deferred over years two,
three and four, where year 1
includes the performance
period.
Grant approach
Conditions
50% of the CEO and ExCo’s
(except for the CRO) LTVR was
received as RR and 50% as PR.
100% of the CRO and GGM
IA’s LTVR was received as RR.
100% of the CEO’s LTVR and
50% of ExCo’s VR (except for
the CRO who received 50% VR
as DSR instead) was received
as PR.
If VR is at or exceeds
AUD 125,000, then
40% of total VR amount
is deferred.
DSR provide a right to
acquire one ordinary
ANZ share at nil cost
after a specified vesting
period.
Deferred over a
minimum of four years
(including the
performance period),
vesting no faster than
on a pro-rata basis and
only after two years (i.e.,
33% year two, 33%
year three, 34% year
four).
RR and PR provide a right to
acquire one ordinary ANZ share
at nil cost – subject to time and
performance conditions.
Awarded at the end of the year
subject to shareholder
approval at AGM for CEO
award.
PR performance condition
tested (relative and absolute
TSR hurdles) at the end of
four-year performance period.
The four-year performance
period commenced on 22
November to 21 November
four years later.
The deferral period is four
years.
Further details are provided in
Section 5.2.3a of the 2021
Remuneration Report.
Awarded subject to:
RR: pre grant assessment
(risk-based measures)
RR and PR: shareholder
approval at Annual General
Meeting (AGM) for CEO
award
Performance condition tested
at end of four-year
performance period:
RR: pre vest assessment
(risk-based measures)
PR: relative and absolute
Total Shareholder Return
(TSR) hurdles
Deferral period3 = four-year
performance period
(commencing 1 October) +
holding period (which
commences the day after end
of performance period and
finishes on the 4th, 5th or 6th
anniversary of grants (CEO only
for year 6)).
Further details provided in
Section 9.1 of the 2024
Remuneration Report.
Allocation value
Face value of ANZ shares traded on the ASX in the five trading
days leading up to and including 1 October (beginning of the
financial year).
The fair value at the date of grant is used to determine
the number of DSR to be allocated and is also used for
expensing purposes. The fair value is adjusted for the
absence of dividends during the vesting period.
1. All ANZGHL/ANZBGL FAR Accountable Executives.
2. Specific deferral arrangements also exist under ANZIP for roles defined as specific country level MRTs, in line with local regulatory requirements.
3. A dividend equivalent payment (DEP) is paid in cash at the end of the relevant deferral period, but is only made to the extent that all or part of the underlying rights meet the relevant performance
condition and vest to the individual. Dividend equivalents accrue over the full deferral period for RR, and only during the holding period for PR.
200
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ANZ 2024 Annual Report
200
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
201
201
32. Employee share and option plans (continued)
Option plans that operated during 2024 and 2023
i) Long Term Variable Remuneration (LTVR) and Variable Remuneration (VR) - restricted rights (RR), performance rights (PR), and deferred share
rights (DSR)
Award Type
LTVR (RR & PR)
LTVR / VR historical (PR)
ANZIP VR (DSR)
ANZIP historical VR (DSR)
Eligibility
CEO, ExCo and GGM IA1
CEO and ExCo1
FY of grant
2023 and 2022 PRR: granted
Historical grants: on foot during
Grants from 1 Oct
2023 and 2022 PRR:
in FY24 & FY23
FY24 & FY23
2023: granted in FY24
granted in FY24 & FY23
Grant approach
50% of the CEO and ExCo’s
100% of the CEO’s LTVR and
If VR is at or exceeds
If VR is at or exceeds AUD
(except for the CRO) LTVR was
50% of ExCo’s VR (except for
AUD 125,000, then
100,000, then 60% of total
received as RR and 50% as PR.
the CRO who received 50% VR
40% of total VR amount
VR amount is deferred.
100% of the CRO and GGM
as DSR instead) was received
is deferred.
IA’s LTVR was received as RR.
as PR.
Conditions
RR and PR provide a right to
Awarded at the end of the year
DSR provide a right to
DSR provide a right to
acquire one ordinary ANZ share
subject to shareholder
at nil cost – subject to time and
approval at AGM for CEO
performance conditions.
award.
acquire one ordinary
ANZ share at nil cost
acquire one ordinary ANZ
share at nil cost after a
after a specified vesting
specified vesting period.
Awarded subject to:
PR performance condition
period.
tested (relative and absolute
Deferred over a
TSR hurdles) at the end of
minimum of four years
includes the performance
four-year performance period.
(including the
period.
Deferred over years two,
three and four, where year 1
The four-year performance
period commenced on 22
November to 21 November
four years later.
The deferral period is four
years.
Further details are provided in
Section 5.2.3a of the 2021
Remuneration Report.
performance period),
vesting no faster than
on a pro-rata basis and
only after two years (i.e.,
33% year two, 33%
year three, 34% year
four).
RR: pre grant assessment
(risk-based measures)
RR and PR: shareholder
approval at Annual General
Meeting (AGM) for CEO
award
Performance condition tested
at end of four-year
performance period:
RR: pre vest assessment
(risk-based measures)
PR: relative and absolute
Total Shareholder Return
(TSR) hurdles
Deferral period3 = four-year
performance period
(commencing 1 October) +
holding period (which
commences the day after end
of performance period and
finishes on the 4th, 5th or 6th
anniversary of grants (CEO only
for year 6)).
Further details provided in
Section 9.1 of the 2024
Remuneration Report.
32. Employee share and option plans (continued)
Award Type
LTVR (RR & PR)
LTVR / VR historical (PR)
ANZIP VR (DSR)
ANZIP historical VR (DSR)
Allocation timing
LTVR awarded around late November/December (subject to
shareholder approval for CEO).
Granted in late November.
All other employees (excluding select roles in the
UK/China/HK2) in countries where DSR may be granted
instead of deferred shares
2024 grants
Start of FY
End of FY
During 2024, we granted
376,821 RR and 313,156 PR
(2023: 393,419 RR and
325,880 PR).
During 2024, we granted 3,588,912 DSR (no
performance hurdles)
(2023: 2,386,278).
Historical grants: on foot
during FY24 & FY23
Downward
adjustment
Board discretion was not exercised to apply malus or clawback
to any RR or PR in 2024 (2023: nil PR).
Board discretion was not exercised to apply malus or
clawback to any deferred share rights in 2024
(2023: nil).
ii) Exceptional circumstances
Remuneration forgone
Retention
As per Deferred Share Plan in countries where DSR may be granted instead of deferred shares.
Options, deferred share rights, restricted rights and performance rights on issue
As at 7 November 2024, there were 487 holders of 6,177,236 DSR on issue, 11 holders of 739,812 RR on issue and 11 holders of 1,427,926 PR on
issue.
Options/rights movements
This table shows the options/rights over unissued ANZ shares and their related weighted average (WA) exercise prices as at the beginning and end of
2024 and the movements during 2024:
Number of options/rights
6,719,516
4,278,889
Opening
balance
1 Oct 2023
Granted
Forfeited1
(632,985)
Expired
Exercised
Closing
balance
30 Sep 2024
0
(2,014,320)
8,351,100
WA exercise price
WA closing share price
WA remaining contractual life
WA exercise price of all exercisable
options/rights outstanding
Outstanding exercisable options/rights
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$27.34
1.8 years
$0.00
118,965
This table shows the options/rights over unissued ANZ shares and their related weighted average exercise prices as at the beginning and end of 2023
and the movements during 2023:
Number of options/rights
6,209,040
3,105,577
Opening
balance
1 Oct 2022
Granted
Forfeited1
(428,483)
Expired
Exercised
Closing
balance
30 Sep 2023
0
(2,166,618)
6,719,516
Allocation value
Face value of ANZ shares traded on the ASX in the five trading
The fair value at the date of grant is used to determine
days leading up to and including 1 October (beginning of the
the number of DSR to be allocated and is also used for
expensing purposes. The fair value is adjusted for the
absence of dividends during the vesting period.
financial year).
1. All ANZGHL/ANZBGL FAR Accountable Executives.
2. Specific deferral arrangements also exist under ANZIP for roles defined as specific country level MRTs, in line with local regulatory requirements.
3. A dividend equivalent payment (DEP) is paid in cash at the end of the relevant deferral period, but is only made to the extent that all or part of the underlying rights meet the relevant performance
condition and vest to the individual. Dividend equivalents accrue over the full deferral period for RR, and only during the holding period for PR.
$0.00
$0.00
$0.00
$0.00
$0.00
WA exercise price
WA closing share price
WA remaining contractual life
WA exercise price of all exercisable
options/rights outstanding
Outstanding exercisable options/rights
1. Refers to any circumstance where equity can be forfeited (for example on cessation, downward adjustment or performance conditions not met).
All of the shares issued as a result of the exercise of options/rights during 2024 and 2023, were issued at a nil exercise price.
200
$0.00
$24.30
1.9 years
$0.00
124,377
201
ANZ 2024 Annual Report
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202
202
Notes to the consolidated financial statements (continued)
32. Employee share and option plans (continued)
As at the date of the signing of the Directors’ Report on 7 November 2024:
no options/rights over ordinary shares have been granted since the end of 2024; and
6,126 shares issued as a result of the exercise of options/rights since the end of 2024, all with a nil exercise price.
Fair value assumptions
When determining the fair value, we apply the standard market techniques for valuation, including Monte Carlo and/or Black Scholes pricing models. We
do so in accordance with the requirements of AASB 2 Share-based Payments. The models take into account early exercise of vested equity, non-
transferability and internal/external performance hurdles (if any).
The table below shows the significant assumptions we used as inputs into our fair value calculation of instruments granted during the period. We present
the values as weighted averages, but the specific values we use for each allocation are the ones we use for the fair value calculation.
Exercise price ($)
Share closing price at grant date ($)
Expected volatility of ANZ share price (%)1
Equity term (years)
Vesting period (years)
Expected life (years)
Expected dividend yield (%)
Risk free interest rate (%)
Fair value ($)
2024
2023
Deferred
share
rights
Restricted
rights
Performance
rights
Deferred
share
rights
Restricted
rights
Performance
rights
0.00
24.38
19.98
2.1
2.0
2.0
6.5
4.18
21.44
0.00
24.66
20.0
6.6
4.6
4.6
6.5
4.03
10.32
0.00
24.60
20.0
6.6
4.6
4.6
6.5
4.05
18.44
0.00
24.67
20.0
2.1
2.0
2.0
6.25
3.20
21.81
0.00
24.54
20.0
6.6
4.6
4.6
6.25
3.36
18.61
0.00
24.51
20.0
6.6
4.6
4.6
6.25
3.36
9.85
1. Expected volatility represents a measure of the amount by which ANZ’s share price is expected to fluctuate over the life of the rights. The measure of volatility used in the model is the annualised standard
deviation of the continuously compounded rates of return on the historical share price over a defined period of time preceding the date of grant. This historical average annualised volatility is then used to
estimate a reasonable expected volatility over the expected life of the rights.
Satisfying equity awards
All shares underpinning equity awards may be purchased on market, reallocated or be newly issued shares, or a combination.
The equity we purchased on market during the 2024 financial year (either under the ANZ Employee Share Acquisition Plan and the ANZ Share Option
Plan, or to satisfy options or rights) for all employees amounted to 5,211,778 shares at an average price of $24.17 per share (2023: 816,023 shares at
an average price of $24.35 per share).
202
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ANZ 2024 Annual Report
202
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
203
203
32. Employee share and option plans (continued)
As at the date of the signing of the Directors’ Report on 7 November 2024:
no options/rights over ordinary shares have been granted since the end of 2024; and
6,126 shares issued as a result of the exercise of options/rights since the end of 2024, all with a nil exercise price.
Fair value assumptions
When determining the fair value, we apply the standard market techniques for valuation, including Monte Carlo and/or Black Scholes pricing models. We
do so in accordance with the requirements of AASB 2 Share-based Payments. The models take into account early exercise of vested equity, non-
transferability and internal/external performance hurdles (if any).
The table below shows the significant assumptions we used as inputs into our fair value calculation of instruments granted during the period. We present
the values as weighted averages, but the specific values we use for each allocation are the ones we use for the fair value calculation.
Exercise price ($)
Share closing price at grant date ($)
Expected volatility of ANZ share price (%)1
Equity term (years)
Vesting period (years)
Expected life (years)
Expected dividend yield (%)
Risk free interest rate (%)
Fair value ($)
2024
Deferred
2023
Deferred
Restricted
Performance
Restricted
Performance
share
rights
0.00
24.38
19.98
2.1
2.0
2.0
6.5
4.18
21.44
rights
0.00
24.66
20.0
6.6
4.6
4.6
6.5
4.03
10.32
rights
0.00
24.60
20.0
6.6
4.6
4.6
6.5
4.05
18.44
share
rights
0.00
24.67
20.0
2.1
2.0
2.0
6.25
3.20
21.81
rights
0.00
24.54
20.0
6.6
4.6
4.6
6.25
3.36
18.61
rights
0.00
24.51
20.0
6.6
4.6
4.6
6.25
3.36
9.85
33. Related party disclosures
Key Management Personnel compensation
Key Management Personnel (KMP) are Directors of ANZGHL (whether executive directors or otherwise), and those personnel with a key responsibility for
the strategic direction and management of the Group (i.e., members of the Group Executive Committee (ExCo)) who have Financial Accountability Regime
(FAR) accountability and who report to the CEO. KMP compensation included within total personnel expenses in Note 4 Operating expenses is as follows:
Short-term benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share-based payments
Total
2024
$'000
19,554
526
280
-
11,199
31,559
20231
$'000
20,895
466
212
31
8,303
29,907
1. Includes former disclosed KMP until the end of their employment.
Key Management Personnel loan transactions
Loans made to KMP are made in the ordinary course of business and on normal commercial terms and conditions that are no more favourable than those
given to other employees or customers, including the term of the loan, security required and the interest rate. No amounts have been written off during the
period, or individual provisions raised in respect of these balances. Details of the terms and conditions of lending products can be found on anz.com. The
aggregate balance of loans (including credit card balances) made, guaranteed or secured, and undrawn facilities to KMP including their related parties,
were as follows:
1. Expected volatility represents a measure of the amount by which ANZ’s share price is expected to fluctuate over the life of the rights. The measure of volatility used in the model is the annualised standard
deviation of the continuously compounded rates of return on the historical share price over a defined period of time preceding the date of grant. This historical average annualised volatility is then used to
estimate a reasonable expected volatility over the expected life of the rights.
Loans advanced1
Undrawn facilities1
Interest charged2
2024
$'000
22,200
856
993
2023
$'000
28,233
554
1,241
Satisfying equity awards
All shares underpinning equity awards may be purchased on market, reallocated or be newly issued shares, or a combination.
The equity we purchased on market during the 2024 financial year (either under the ANZ Employee Share Acquisition Plan and the ANZ Share Option
Plan, or to satisfy options or rights) for all employees amounted to 5,211,778 shares at an average price of $24.17 per share (2023: 816,023 shares at
an average price of $24.35 per share).
1. Balances are as at balance date (for KMP in office at balance date) or at the date of cessation of former KMP. Comparative balances have been adjusted for balances relating to new KMP, or KMP who
departed in the prior year.
2. Interest charged is for all KMP’s during the period.
Key Management Personnel holdings of ANZ securities
KMP, including their related parties, held ANZBGL’s subordinated debt and shares, share rights and options over shares in the Company directly, indirectly
or beneficially as shown below:
Shares, options and rights1
Subordinated debt1
2024
Number
2023
Number
3,429,494
3,226,399
20,180
19,790
1. Balances are as at balance date (for KMP in office at balance date) or at the date of cessation of former KMP. Comparative balances have been adjusted for balances relating to new KMP, or KMP who
departed in the prior year.
202
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204
204
Notes to the consolidated financial statements (continued)
33. Related party disclosures (continued)
Other transactions of Key Management Personnel and their related parties
The aggregate of deposits of KMP and their related parties with the Group were $43 million (2023: $41 million).
Other transactions with KMP and their related parties include amounts paid to the Group in respect of investment management service fees, brokerage
and bank fees and charges. The Group has reimbursed KMP for the costs incurred for security and secretarial services associated with the performance
of their duties. These transactions are conducted on normal commercial terms and conditions no more favourable than those given to other employees or
customers. Gifts were provided to KMP, including on their retirement, amounting to $6,637 during the year (2023: $2,476).
Associates
We disclose significant associates in Note 28 Investments in associates. During the course of the financial year, transactions conducted with all associates
were on terms equivalent to those made on an arm’s length basis.
Amounts receivable from associates
Amounts payable to associates
Interest revenue from associates
Interest expense to associates
Other revenue from associates
Other expenses paid to associates
Dividend income from associates
Undrawn facilities1
2024
$'000
84,201
66,542
22,563
1,812
34,020
6,683
13,771
2023
$'000
37,364
15,478
25,111
966
23,427
3,088
42,316
106,191
31,670
1. Comparatives have been amended to include unutilised limits from revolving credit facilities.
There have been no material guarantees given or received. No amounts receivable from associates have been written-off during the period, nor individual
provisions raised in respect of these balances.
Subsidiaries
We disclose material controlled entities in Note 27 Controlled entities. During the financial year, subsidiaries conducted transactions with each other and
with associates on terms equivalent to those on an arm’s length basis. As at 30 September 2024, we consider all outstanding amounts on these
transactions to be fully collectible.
Other intragroup transactions include providing management and administrative services, staff training, data processing facilities, transfer of tax losses,
and the leasing of premises and equipment. The Company also issued letters of comfort and guarantees in respect of certain subsidiaries in the normal
course of business.
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ANZ 2024 Annual Report
204
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
205
205
Amounts receivable from associates
Amounts payable to associates
Interest revenue from associates
Interest expense to associates
Other revenue from associates
Other expenses paid to associates
Dividend income from associates
Undrawn facilities1
2024
$'000
84,201
66,542
22,563
1,812
34,020
6,683
13,771
2023
$'000
37,364
15,478
25,111
966
23,427
3,088
42,316
106,191
31,670
1. Comparatives have been amended to include unutilised limits from revolving credit facilities.
There have been no material guarantees given or received. No amounts receivable from associates have been written-off during the period, nor individual
provisions raised in respect of these balances.
Subsidiaries
transactions to be fully collectible.
course of business.
We disclose material controlled entities in Note 27 Controlled entities. During the financial year, subsidiaries conducted transactions with each other and
with associates on terms equivalent to those on an arm’s length basis. As at 30 September 2024, we consider all outstanding amounts on these
Other intragroup transactions include providing management and administrative services, staff training, data processing facilities, transfer of tax losses,
and the leasing of premises and equipment. The Company also issued letters of comfort and guarantees in respect of certain subsidiaries in the normal
33. Related party disclosures (continued)
Other transactions of Key Management Personnel and their related parties
The aggregate of deposits of KMP and their related parties with the Group were $43 million (2023: $41 million).
Other transactions with KMP and their related parties include amounts paid to the Group in respect of investment management service fees, brokerage
and bank fees and charges. The Group has reimbursed KMP for the costs incurred for security and secretarial services associated with the performance
of their duties. These transactions are conducted on normal commercial terms and conditions no more favourable than those given to other employees or
customers. Gifts were provided to KMP, including on their retirement, amounting to $6,637 during the year (2023: $2,476).
Associates
We disclose significant associates in Note 28 Investments in associates. During the course of the financial year, transactions conducted with all associates
were on terms equivalent to those made on an arm’s length basis.
34. Commitments, contingent liabilities and contingent assets
Credit related commitments and contingencies
Contract amount of:
Undrawn facilities
Guarantees and letters of credit
Performance related contingencies
Total
Undrawn facilities
2024
$m
2023
$m
249,988
240,711
22,509
26,501
23,556
26,615
298,998
290,882
The majority of undrawn facilities are subject to customers maintaining specific credit and other requirements or conditions. Many of these facilities are
expected to be only partially used, and others may never be used at all. As such, the total of the nominal principal amounts is not necessarily
representative of future liquidity risks or future cash requirements. Based on the earliest date on which the Group may be required to pay, the full amount
of undrawn facilities for the Group mature within 12 months.
Guarantees, letters of credit and performance related contingencies
Guarantees, letters of credit and performance related contingencies relate to transactions that the Group has entered into as principal.
Letters of credit involve the Group issuing letters of credit guaranteeing payment in favour of an exporter. They are secured against an underlying
shipment of goods or backed by a confirmatory letter of credit from another bank.
Performance-related contingencies are liabilities that oblige the Group to make payments to a third party if the customer fails to fulfil its non-monetary
obligations under the contract.
To reflect the risks associated with these transactions, we apply the same credit origination, portfolio management and collateral requirements that we
apply to loans. The contract amount represents the maximum potential amount that we could lose if the counterparty fails to meet its financial obligations.
As the facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements. Based on the earliest date
on which the Group may be required to pay, the full amount of guarantees and letters of credit and performance-related contingencies for the Group
mature within 12 months.
Other contingent liabilities
There are outstanding court proceedings, claims and possible claims for and against the Group. Where relevant, expert legal advice has been obtained
and, in the light of such advice, provisions (refer to Note 23 Other provisions) and/or disclosures as deemed appropriate have been made. In some
instances we have not disclosed the estimated financial impact of the individual items either because it is not practicable to do so or because such
disclosure may prejudice the interests of the Group.
A description of contingent liabilities and contingent assets as at 30 September 2024 is set out below.
Regulatory and customer exposures
The Group regularly engages with its domestic and international regulators and other statutory and supervisory bodies. The nature of these regulatory
interactions can be wide ranging and include regulatory investigations, surveillance and reviews, reportable situations, formal and informal inquiries and
regulatory supervisory activities in Australia and globally. The Group also receives notices and requests for information from its regulators and other bodies
from time to time as part of both industry-wide and Group-specific reviews and makes disclosures to its regulators at its own instigation.
There has been a recent increase in the number of matters on which the Group has engaged with its regulators. Recent interactions relate to matters
including:
markets transactions and data reporting;
anti-money laundering and counter-terrorism financing obligations, processes and procedures; and
non-financial risk management practices including customer service processes relating to complaints, hardship and deceased estates, compliance
with mandatory reporting obligations, the application of interest and fees on certain products and the financial accountability regime.
The possible exposures associated with the Group’s regulatory interactions may include civil enforcement actions, criminal proceedings, fines and
penalties, imposition of capital or liquidity requirements, customer remediation, the requirement to conduct independent reviews, sanctions or the exercise
of other regulatory powers.
There may also be exposures to customers, third parties and shareholders which are additional to any regulatory exposures. These could include class
actions or claims for compensation or other remedies.
The outcomes and total costs associated with these possible regulatory, customer and other exposures remain uncertain.
204
205
ANZ 2024 Annual Report
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206
206
Notes to the consolidated financial statements (continued)
34. Commitments, contingent liabilities and contingent assets (continued)
Other contingent liabilities (continued)
South African rate action
In February 2017, the South African Competition Commission commenced proceedings against local and international banks including ANZBGL alleging
breaches of the cartel provisions of the South African Competition Act in respect of trading in the South African rand. The potential civil penalty or other
financial impact is uncertain.
Esanda dealer car loan litigation
In August 2020, a class action was brought against ANZBGL alleging unfair conduct, misleading or deceptive conduct and equitable mistake in relation to
the use of flex commissions in dealer arranged Esanda car loans. An agreement to settle the claim was reached in October 2024. ANZBGL will pay $85
million in settlement, which is covered by existing provisions held at 30 September 2024. The settlement is without admission of liability and remains
subject to court approval.
Onepath superannuation litigation
In December 2020, a class action was brought against OnePath Custodians, OnePath Life and ANZBGL alleging that OnePath Custodians breached its
obligations under superannuation legislation, and its duties as trustee, in respect of superannuation investments and fees. The claim also alleges that
ANZBGL was involved in some of OnePath Custodians’ investment breaches. An agreement to settle the claim was reached in October 2024. ANZBGL
will contribute $14 million to the settlement, which is covered by existing provisions held at 30 September 2024. The settlement is without admission of
liability and remains subject to court approval.
New Zealand loan information litigation
In September 2021, a representative proceeding was brought against ANZ Bank New Zealand Limited, alleging breaches of disclosure requirements
under consumer credit legislation in respect of variation letters sent to certain loan customers. ANZ Bank New Zealand Limited is defending the allegations.
Credit cards litigation
In November 2021, a class action was brought against ANZBGL alleging that certain interest terms in credit card contracts were unfair contract terms and
that it was unconscionable for ANZBGL to rely on them. An agreement to settle the claim was reached in March 2024. ANZBGL will pay $57.5 million in
settlement, which is covered by existing provisions held at 30 September 2024. The settlement is without admission of liability and remains subject to
court approval.
Security recovery actions
Various claims have been made or are anticipated, arising from security recovery actions taken to resolve impaired assets. These claims will be defended.
Warranties, indemnities and performance management fees
The Group has provided warranties, indemnities and other commitments in favour of the seller/purchaser and other persons in connection with various
acquisitions/disposals of businesses and assets and other transactions, covering a range of matters and risks. It is exposed to claims under those
warranties, indemnities and commitments, some of which are currently active. The outcomes and total costs associated with these exposures remain
uncertain.
The Group has entered an arrangement to pay performance management fees to external fund managers in the event predetermined performance
criteria are satisfied in relation to certain Group investments. The satisfaction of the performance criteria and associated performance management fee
remains uncertain.
206
ANZ 2024 Annual Report
ANZ 2024 Annual Report
ANZ 2024 Annual Report
206
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
34. Commitments, contingent liabilities and contingent assets (continued)
34. Commitments, contingent liabilities and contingent assets (continued)
Shareholder
Notes to the Financial Statements
information
Financial report
207
207
Other contingent liabilities (continued)
South African rate action
financial impact is uncertain.
Esanda dealer car loan litigation
subject to court approval.
Onepath superannuation litigation
liability and remains subject to court approval.
New Zealand loan information litigation
Credit cards litigation
court approval.
Security recovery actions
In February 2017, the South African Competition Commission commenced proceedings against local and international banks including ANZBGL alleging
breaches of the cartel provisions of the South African Competition Act in respect of trading in the South African rand. The potential civil penalty or other
In August 2020, a class action was brought against ANZBGL alleging unfair conduct, misleading or deceptive conduct and equitable mistake in relation to
the use of flex commissions in dealer arranged Esanda car loans. An agreement to settle the claim was reached in October 2024. ANZBGL will pay $85
million in settlement, which is covered by existing provisions held at 30 September 2024. The settlement is without admission of liability and remains
In December 2020, a class action was brought against OnePath Custodians, OnePath Life and ANZBGL alleging that OnePath Custodians breached its
obligations under superannuation legislation, and its duties as trustee, in respect of superannuation investments and fees. The claim also alleges that
ANZBGL was involved in some of OnePath Custodians’ investment breaches. An agreement to settle the claim was reached in October 2024. ANZBGL
will contribute $14 million to the settlement, which is covered by existing provisions held at 30 September 2024. The settlement is without admission of
In September 2021, a representative proceeding was brought against ANZ Bank New Zealand Limited, alleging breaches of disclosure requirements
under consumer credit legislation in respect of variation letters sent to certain loan customers. ANZ Bank New Zealand Limited is defending the allegations.
In November 2021, a class action was brought against ANZBGL alleging that certain interest terms in credit card contracts were unfair contract terms and
that it was unconscionable for ANZBGL to rely on them. An agreement to settle the claim was reached in March 2024. ANZBGL will pay $57.5 million in
settlement, which is covered by existing provisions held at 30 September 2024. The settlement is without admission of liability and remains subject to
Various claims have been made or are anticipated, arising from security recovery actions taken to resolve impaired assets. These claims will be defended.
Warranties, indemnities and performance management fees
The Group has provided warranties, indemnities and other commitments in favour of the seller/purchaser and other persons in connection with various
acquisitions/disposals of businesses and assets and other transactions, covering a range of matters and risks. It is exposed to claims under those
warranties, indemnities and commitments, some of which are currently active. The outcomes and total costs associated with these exposures remain
The Group has entered an arrangement to pay performance management fees to external fund managers in the event predetermined performance
criteria are satisfied in relation to certain Group investments. The satisfaction of the performance criteria and associated performance management fee
uncertain.
remains uncertain.
Other contingent liabilities (continued)
Clearing and settlement obligations
Certain group companies have a commitment to comply with rules governing various clearing and settlement arrangements which could result in a credit
risk exposure and loss if another member institution fails to settle its payment clearing activities. The Group’s potential exposure arising from these
arrangements is unquantifiable in advance.
Certain group companies hold memberships of central clearing houses, including ASX Clear (Futures), London Clearing House (LCH) SwapClear, Korea
Exchange (KRX), Hong Kong Exchange (HKEX), the Clearing Corporation of India, Taiwan Futures Exchange and the Shanghai Clearing House. These
memberships allow the relevant group company to centrally clear derivative instruments in line with cross-border regulatory requirements. Common to all
of these memberships is the requirement for the relevant group company to make default fund contributions. In the event of a default by another
member, the relevant group company could potentially be required to commit additional default fund contributions which are unquantifiable in advance.
Parent entity guarantees
Certain group companies have issued letters of comfort and guarantees in respect of certain subsidiaries in the normal course of business. Under these
letters and guarantees, the issuing entity undertakes to ensure that those subsidiaries continue to meet their financial obligations, subject to certain
conditions including that the subsidiary remains a controlled entity.
Sale of Grindlays business
On 31 July 2000, ANZBGL completed the sale to Standard Chartered Bank (SCB) of ANZ Grindlays Bank Limited (Grindlays) and certain other businesses.
ANZBGL provided warranties and indemnities relating to those businesses.
The indemnified matters include civil penalty proceedings and criminal prosecutions brought by Indian authorities against Grindlays and certain of its
officers, in relation to certain transactions conducted in 1991 that are alleged to have breached the Foreign Exchange Regulation Act, 1973. Civil penalties
were imposed in 2007 which are the subject of ongoing appeals.
Contingent assets
National Housing Bank
ANZBGL is pursuing recovery of the proceeds of certain disputed cheques which were credited to the account of a former Grindlays customer in the early
1990s.
The disputed cheques were drawn on the National Housing Bank (NHB) in India. Proceedings between Grindlays and NHB concerning the proceeds of the
cheques were resolved in early 2002.
Recovery is now being pursued from the estate of the Grindlays customer who received the cheque proceeds. Any amounts recovered are to be shared
between ANZBGL and NHB.
206
207
ANZ 2024 Annual Report
ANZ 2024 Annual Report
208
208
35. Auditor fees
KPMG Australia
Audit or review of financial reports
Audit-related services1
Non-audit services2
Total3
Overseas related practices of KPMG Australia
Audit or review of financial reports
Audit-related services1
Non-audit services2
Total
Total auditor fees4
Notes to the consolidated financial statements (continued)
2024
$’000
11,279
4,597
27
2023
$’000
9,820
3,882
10
15,903
13,712
5,930
2,191
153
8,274
24,177
6,157
1,933
95
8,185
21,897
1. Group audit-related services comprise prudential and regulatory services of $4.16 million (2023: $4.11 million), comfort letters $0.72 million (2023: $0.57 million) and other services $1.91 million
(2023: $1.14 million).
2. The nature of non-audit services for the Group includes methodology, procedural, operational and administrative reviews. Further details are provided in the Directors’ Report.
3. Inclusive of goods and services tax.
4. Total auditor fees do not include fees paid to other audit firms where KPMG is in joint audit arrangement or not the auditor amounting to $0.80 million (2023: $0.55 million).
Under Group policy, KPMG Australia or any of its related practices are allowed to provide assurance and other audit-related services that, while outside the
scope of the statutory audit, are consistent with the role of an external auditor. These include prudential and regulatory reviews requested by regulators
such as APRA. Any other services that are not audit or audit-related services are non-audit services. Group policy allows certain non-audit services to be
provided where the service would not contravene auditor independence requirements. KPMG Australia or any of its related practices may not provide
services that are perceived to be in conflict with the role of the external auditor or breach auditor independence. These include consulting advice and
subcontracting of operational activities normally undertaken by management, and engagements where the external auditor may ultimately be required to
express an opinion on its own work.
208
ANZ 2024 Annual Report
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ANZ 2024 Annual Report
208
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
209
209
35. Auditor fees
KPMG Australia
Audit or review of financial reports
Audit-related services1
Non-audit services2
Total3
Overseas related practices of KPMG Australia
Audit or review of financial reports
Audit-related services1
Non-audit services2
Total
Total auditor fees4
(2023: $1.14 million).
3. Inclusive of goods and services tax.
1. Group audit-related services comprise prudential and regulatory services of $4.16 million (2023: $4.11 million), comfort letters $0.72 million (2023: $0.57 million) and other services $1.91 million
2. The nature of non-audit services for the Group includes methodology, procedural, operational and administrative reviews. Further details are provided in the Directors’ Report.
4. Total auditor fees do not include fees paid to other audit firms where KPMG is in joint audit arrangement or not the auditor amounting to $0.80 million (2023: $0.55 million).
Under Group policy, KPMG Australia or any of its related practices are allowed to provide assurance and other audit-related services that, while outside the
scope of the statutory audit, are consistent with the role of an external auditor. These include prudential and regulatory reviews requested by regulators
such as APRA. Any other services that are not audit or audit-related services are non-audit services. Group policy allows certain non-audit services to be
provided where the service would not contravene auditor independence requirements. KPMG Australia or any of its related practices may not provide
services that are perceived to be in conflict with the role of the external auditor or breach auditor independence. These include consulting advice and
subcontracting of operational activities normally undertaken by management, and engagements where the external auditor may ultimately be required to
express an opinion on its own work.
15,903
13,712
2024
$’000
11,279
4,597
27
5,930
2,191
153
8,274
24,177
2023
$’000
9,820
3,882
10
6,157
1,933
95
8,185
21,897
36. Suncorp Bank acquisition
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank. Suncorp Bank provides
banking and related services to retail, commercial, small and medium enterprises and agribusiness customers in Australia. The transaction was undertaken
to accelerate the growth of the Group’s retail and commercial businesses while also improving the geographic balance of its business in Australia.
Assets acquired and liabilities assumed as at acquisition date are disclosed on a provisional basis, with goodwill of $1,402 million recognised and allocated
to the Suncorp Bank division, pending completion of the final consideration payable, and the purchase price allocation (PPA).
Provisional goodwill is attributable to the assembled workforce and expected synergies arising from the economies of scale from the integration and
consolidation of platforms and funding benefits. It will not be deductible for tax purposes.
The provisional balances are pending the completion of the PPA exercise that commenced following completion on 31 July 2024 but remains in progress
at the date of this report. At 30 September 2024, the most significant adjustments have been the elimination of the pre-acquisition allowance for ECL,
capitalised brokerage and other origination costs, and related deferred tax balances. The PPA exercise will identify the acquired tangible and intangible
assets and assumed liabilities and measure their acquisition-date values. The Group expects that on completion of the PPA in the 2025 financial year, the
acquired assets (including loans and advances and intangible assets) and assumed liabilities (including deposits and debt issuances) will be restated to
their acquisition-date values with a corresponding adjustment to goodwill.
Assets acquired and liabilities assumed as at acquisition date (provisional)
Assets
Cash and cash equivalents
Collateral paid
Trading assets
Derivative financial instruments
Investment securities
Gross loans and advances
Deferred tax assets
Intangible assets
Other assets
Total assets
Liabilities
Collateral received
Deposits and other borrowings
Derivative financial instruments
Payables and other liabilities
Provisions
Debt issuances
Total liabilities
Net assets acquired
Cash consideration paid1,2
Provisional value of goodwill
1. Subject to final completion activities.
2024
$m
1,333
80
2,307
310
9,920
69,745
48
103
431
84,277
48
62,438
279
731
89
15,847
79,432
4,845
6,247
1,402
2. The cash consideration of $6.2 billion includes payment for Suncorp Bank’s Tier 2 notes ($606 million) and Capital Notes ($564 million).
Included in the Consolidated Income Statement and Statement of Comprehensive Income since 31 July 2024 is operating income of $257 million and net
loss after tax of $122 million in respect of the acquired business. Had Suncorp Bank been acquired on 1 October 2023, the operating income and profit
after tax of the combined Group for the twelve months ended 30 September 2024 was estimated to be ~$21,600 million and ~$6,800 million
respectively.
The Group incurred acquisition-related costs of $21 million (2023: $12 million) on legal fees and due diligence costs, recognised in Other operating
expenses in the Income Statement.
208
209
ANZ 2024 Annual Report
ANZ 2024 Annual Report
210
210
Notes to the consolidated financial statements (continued)
36. Suncorp Bank acquisition (continued)
Recognition and measurement
Business combinations are accounted for using the acquisition method of accounting. The cost of acquisition is measured at the fair value
of the transferred consideration, including where relevant, any contingent consideration. Acquisition-related costs are expensed when
incurred. Identifiable assets and liabilities, along with contingent consideration, are valued at their fair values on the acquisition date.
Goodwill is calculated as the excess of the consideration over the net of identifiable assets and liabilities. The acquired business operations
are included in our financial statements from the acquisition date.
37. Events since the end of the financial year
Other than matters outlined in the Financial Report, there have been no significant events from 30 September 2024 to the date of signing this report.
210
ANZ 2024 Annual Report
ANZ 2024 Annual Report
ANZ 2024 Annual Report
210
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Notes to the Financial Statements
information
Financial report
211
211
Consolidated Entity Disclosure Statement
Basis of preparation
This Consolidated Entity Disclosure Statement has been prepared in accordance with subsection 295(3A) of the Corporations Act 2001. The entities listed
in the statement are for ANZ Group Holdings Limited and all its controlled entities as at 30 September 2024 in accordance with AASB 10 Consolidated
Financial Statements.
36. Suncorp Bank acquisition (continued)
Recognition and measurement
Business combinations are accounted for using the acquisition method of accounting. The cost of acquisition is measured at the fair value
of the transferred consideration, including where relevant, any contingent consideration. Acquisition-related costs are expensed when
incurred. Identifiable assets and liabilities, along with contingent consideration, are valued at their fair values on the acquisition date.
Goodwill is calculated as the excess of the consideration over the net of identifiable assets and liabilities. The acquired business operations
are included in our financial statements from the acquisition date.
37. Events since the end of the financial year
Other than matters outlined in the Financial Report, there have been no significant events from 30 September 2024 to the date of signing this report.
Place Formed or
Incorporated
American Samoa
% of Share
Capital
Held
100%
Tax Residency (Australia
or Foreign Jurisdiction)
American Samoa
Entity Name
ANZ Finance American Samoa, Inc
1835 Funding Pty Limited
1835i Creation Fund I Trust
1835i Explorer 1 Pty Ltd
1835i Ventures Trust I
1835i Ventures Trust I-A
1835i Ventures Trust II
1835i Ventures Trust III
1835i Ventures Trust III-A
A.C.N. 660 735 311 Pty Limited
A.C.N. 660 735 697 Pty Limited
A.C.N. 660 736 238 Pty Limited
ACN 008 647 185 Pty Ltd1
ANZ BH Pty Ltd
ANZ Capital No. 1 Pty Ltd
ANZ Centre Chattels Trust
ANZ Centre Pty Ltd2
ANZ Centre Trust
ANZ Commodity Trading Pty Ltd
ANZ Fiduciary Services Pty Ltd
ANZ Funds Pty Ltd
ANZ Global Services and Operations Pty Limited
ANZ Group Holdings Limited
ANZ Group Services Pty Ltd
ANZ ILP Pty Ltd
ANZ International Private Limited
ANZ Leasing (BWC Financing) Pty Ltd
ANZ Leasing (MAGA) Pty Ltd
ANZ Lenders Mortgage Insurance Pty Limited
ANZ Margin Services Pty Limited
ANZ NBH Pty Ltd
ANZ Nominees Pty Ltd
ANZ Properties (Australia) Pty Ltd
ANZ Residential Covered Bond Trust
ANZ Rewards No. 2 Pty Ltd
ANZ Rural Trust No 1
ANZ Securities (Holdings) Pty Ltd
ANZ Securities Limited
ANZ Wealth Australia Pty Ltd
ANZEST Pty Ltd
ANZi Holdings Pty Ltd
APOLLO Series 2008-1R Trust
APOLLO Series 2015-1 Trust
Entity Type
Body corporate
Body corporate
Trust
Body corporate
Trust
Trust
Trust
Trust
Trust
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Trust
Australia
N/A
Australia
N/A
N/A
N/A
N/A
N/A
Australia
Australia
Australia
Australia
Australia
Australia
N/A
0%
N/A
0%
N/A
N/A
N/A
N/A
N/A
100%
100%
100%
100%
100%
100%
N/A
Body corporate
Australia
100%
Trust
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Trust
N/A
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Singapore
Australia
Australia
Australia
Australia
Australia
Australia
Australia
N/A
N/A
100%
100%
100%
100%
N/A
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
N/A
Body corporate
Australia
100%
Trust
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Trust
Trust
N/A
Australia
Australia
Australia
Australia
Australia
N/A
N/A
N/A
100%
100%
100%
100%
100%
N/A
N/A
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
211
210
1. ACN 008 647 185 Pty Ltd is trustee of Postbank Equity Trust.
2. ANZ Centre Pty Ltd acts as trustee of the ANZ Centre Trust and ANZ Centre Chattels Trust respectively.
ANZ 2024 Annual Report
ANZ 2024 Annual Report
212
212
Notes to the consolidated financial statements (continued)
Notes to the Financial Statements
Financial report
213
Consolidated Entity Disclosure Statement (continued)
Consolidated Entity Disclosure Statement (continued)
Place Formed or
Incorporated
N/A
% of Share
Capital
Held
N/A
Tax Residency (Australia
or Foreign Jurisdiction)
Australia
Entity Name
APOLLO Series 2017-1 Trust
APOLLO Series 2017-2 Trust
APOLLO Series 2018-1 Trust
APOLLO Series 2022-1 Trust
APOLLO Series 2023-1 Trust
APOLLO Series 2024-1 Trust
APOLLO Warehouse Trust No. 2
Australia and New Zealand Banking Group Limited
Cashrewards IP Pty Limited
Cashrewards LB Pty Ltd
Cashrewards Operations Pty Limited
Cashrewards Pty Limited
Esanda Finance Corporation Pty Ltd
Institutional Securitisation Services Limited
Jikk Pty Ltd
Kingfisher Trust 2008-1
Kingfisher Trust 2016-1
Kingfisher Trust 2019-1
Entity Type
Trust
Trust
Trust
Trust
Trust
Trust
Trust
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Trust
Trust
Trust
N/A
N/A
N/A
N/A
N/A
N/A
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
100%
0%
0%
0%
0%
100%
100%
100%
N/A
N/A
N/A
Norfina Advances Corporation Pty Ltd
Body corporate
Australia
100%
Norfina Covered Bond Trust
Norfina Limited
OneTwo Finance FSA Pty Ltd
OneTwo Finance Pty Ltd
Postbank Equity Trust
SBGH Limited
Secure Data Consent Pty Ltd
Share Investing Pty Ltd
Shout for Good Pty Ltd
SME Management Pty Limited
Votraint No. 1103 Pty Limited
Wheatbelt Natural Capital Pty Ltd
Australia and New Zealand Bank (China) Company Limited
ANZ Pacific Operations Pte Ltd
ANZ Finance Guam, Inc
ANZ Guam Inc.
Citizens Bancorp
ANZ International (Hong Kong) Limited
ANZ Capital Private Limited
ANZ Operations And Technology Private Limited
ANZ Support Services India Private Limited
PT Bank ANZ Indonesia
ANZ Securities (Japan), Ltd
ANZ Bank (Kiribati) Limited
ANZ Bank New Zealand Limited
ANZ Custodial Services New Zealand Limited
ANZ Holdings (New Zealand) Limited
ANZ Investment Services (New Zealand) Limited
Trust
Body corporate
Body corporate
Body corporate
Trust
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
N/A
Australia
Australia
Australia
N/A
Australia
Australia
Australia
Australia
Australia
Australia
Australia
China
Fiji
Guam
Guam
Guam
Hong Kong
India
India
India
Indonesia
Japan
Kiribati
New Zealand
New Zealand
New Zealand
New Zealand
N/A
100%
100%
100%
N/A
100%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
100%
75%
100%
100%
100%
100%
Entity Name
ANZ National Staff Superannuation Limited
ANZ New Zealand (Int'l) Limited
ANZ New Zealand Investments Holdings Limited
ANZ New Zealand Investments Limited
ANZ New Zealand Investments Nominees Limited
ANZNZ Covered Bond Trust
Arawata Assets Limited
Dot Data Limited
Endeavour Finance Limited
Kingfisher NZ Trust 2008-1
OneAnswer Nominees Limited
8 and 9 Chester Limited
ANZ Investments (PNG) Limited
ANZ Bank (Samoa) Limited
ANZcover Insurance Private Ltd
ANZ (Thai) Public Company Limited
ANZ Pensions (UK) Limited
ANZ Securities, Inc.
ANZ Bank (Vanuatu) Limited1
La Serigne Limited1
Whitehall Investments Ltd1
ANZ Bank (Vietnam) Limited
Entity Type
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Trust
Body corporate
Body corporate
Body corporate
Trust
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
% of Share
Place Formed or
Capital
Tax Residency (Australia
Held
or Foreign Jurisdiction)
Incorporated
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
N/A
New Zealand
New Zealand
New Zealand
N/A
Philippines
Samoa
Singapore
Thailand
United Kingdom
United States
Vanuatu
Vanuatu
Vanuatu
Vietnam
100%
100%
100%
100%
100%
N/A
100%
100%
100%
N/A
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
Papua New Guinea
Papua New Guinea
Papua New Guinea
Philippines
Samoa
Singapore
Thailand
United Kingdom
United States
N/A
N/A
N/A
Vietnam
Australia and New Zealand Banking Group (PNG) Limited
Body corporate
Papua New Guinea
ANZ Global Services And Operations (Manila) Inc
Body corporate
New Zealand
Body corporate
Papua New Guinea
Body corporate
Papua New Guinea
1. Vanuatu does not have a corporate tax regime and therefore the concept of tax residency does not apply.
Key concepts
Determination of tax residency
Australian tax residency
In determining tax residency, the consolidated entity has applied the following interpretations:
“Australian resident” has the meaning provided in the Income Tax Assessment Act 1997 (ITAA). In applying that definition, the consolidated
entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation’s public guidance in Tax
Foreign tax residency
Where an entity is shown as being resident in a foreign jurisdiction, this is taken to mean a resident for the purposes of the law of the foreign
jurisdiction relating to foreign income tax, within the meaning of the ITAA.
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
China
Fiji
Guam
Guam
Guam
Hong Kong
Ruling TR 2018/5 and Practical Compliance Guideline PCG 2018-009.
India
India
India
Indonesia
Japan
Kiribati
New Zealand
New Zealand
New Zealand
New Zealand
212
213
ANZ 2024 Annual Report
Entity Type
Place Formed or
Capital
Tax Residency (Australia
Incorporated
Held
or Foreign Jurisdiction)
% of Share
Norfina Advances Corporation Pty Ltd
Body corporate
Australia
100%
Entity Name
APOLLO Series 2017-1 Trust
APOLLO Series 2017-2 Trust
APOLLO Series 2018-1 Trust
APOLLO Series 2022-1 Trust
APOLLO Series 2023-1 Trust
APOLLO Series 2024-1 Trust
APOLLO Warehouse Trust No. 2
Australia and New Zealand Banking Group Limited
Cashrewards IP Pty Limited
Cashrewards LB Pty Ltd
Cashrewards Operations Pty Limited
Cashrewards Pty Limited
Esanda Finance Corporation Pty Ltd
Institutional Securitisation Services Limited
Jikk Pty Ltd
Kingfisher Trust 2008-1
Kingfisher Trust 2016-1
Kingfisher Trust 2019-1
Norfina Covered Bond Trust
Norfina Limited
OneTwo Finance FSA Pty Ltd
OneTwo Finance Pty Ltd
Postbank Equity Trust
SBGH Limited
Secure Data Consent Pty Ltd
Share Investing Pty Ltd
Shout for Good Pty Ltd
SME Management Pty Limited
Votraint No. 1103 Pty Limited
Wheatbelt Natural Capital Pty Ltd
ANZ Pacific Operations Pte Ltd
ANZ Finance Guam, Inc
ANZ Guam Inc.
Citizens Bancorp
ANZ International (Hong Kong) Limited
ANZ Capital Private Limited
ANZ Operations And Technology Private Limited
ANZ Support Services India Private Limited
PT Bank ANZ Indonesia
ANZ Securities (Japan), Ltd
ANZ Bank (Kiribati) Limited
ANZ Bank New Zealand Limited
ANZ Custodial Services New Zealand Limited
ANZ Holdings (New Zealand) Limited
ANZ Investment Services (New Zealand) Limited
Australia and New Zealand Bank (China) Company Limited
Trust
Trust
Trust
Trust
Trust
Trust
Trust
Trust
Trust
Trust
Trust
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Trust
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
N/A
N/A
N/A
N/A
Australia
Australia
Australia
N/A
Australia
Australia
Australia
Australia
Australia
Australia
Australia
China
Fiji
Guam
Guam
Guam
India
India
India
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0%
0%
0%
0%
100%
100%
100%
100%
N/A
N/A
N/A
N/A
100%
100%
100%
N/A
100%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
100%
75%
100%
100%
100%
100%
Hong Kong
Hong Kong
Indonesia
Japan
Kiribati
New Zealand
New Zealand
New Zealand
New Zealand
Indonesia
Japan
Kiribati
New Zealand
New Zealand
New Zealand
New Zealand
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
China
Fiji
Guam
Guam
Guam
India
India
India
ANZ 2024 Annual Report
ANZ 2024 Annual Report
212
Notes to the consolidated financial statements (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Consolidated Entity Disclosure Statement (continued)
Consolidated Entity Disclosure Statement (continued)
Shareholder
Notes to the Financial Statements
information
Financial report
213
213
Place Formed or
Incorporated
New Zealand
% of Share
Capital
Held
100%
Tax Residency (Australia
or Foreign Jurisdiction)
New Zealand
Entity Name
ANZ National Staff Superannuation Limited
ANZ New Zealand (Int'l) Limited
ANZ New Zealand Investments Holdings Limited
ANZ New Zealand Investments Limited
ANZ New Zealand Investments Nominees Limited
ANZNZ Covered Bond Trust
Arawata Assets Limited
Dot Data Limited
Endeavour Finance Limited
Kingfisher NZ Trust 2008-1
OneAnswer Nominees Limited
8 and 9 Chester Limited
ANZ Investments (PNG) Limited
Entity Type
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Trust
Body corporate
Body corporate
Body corporate
Trust
New Zealand
New Zealand
New Zealand
New Zealand
N/A
New Zealand
New Zealand
New Zealand
N/A
Body corporate
New Zealand
Body corporate
Papua New Guinea
Body corporate
Papua New Guinea
Australia and New Zealand Banking Group (PNG) Limited
Body corporate
Papua New Guinea
ANZ Global Services And Operations (Manila) Inc
ANZ Bank (Samoa) Limited
ANZcover Insurance Private Ltd
ANZ (Thai) Public Company Limited
ANZ Pensions (UK) Limited
ANZ Securities, Inc.
ANZ Bank (Vanuatu) Limited1
La Serigne Limited1
Whitehall Investments Ltd1
ANZ Bank (Vietnam) Limited
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Body corporate
Philippines
Samoa
Singapore
Thailand
United Kingdom
United States
Vanuatu
Vanuatu
Vanuatu
Vietnam
1. Vanuatu does not have a corporate tax regime and therefore the concept of tax residency does not apply.
100%
100%
100%
100%
N/A
100%
100%
100%
N/A
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
Papua New Guinea
Papua New Guinea
Papua New Guinea
Philippines
Samoa
Singapore
Thailand
United Kingdom
United States
N/A
N/A
N/A
Vietnam
Key concepts
Determination of tax residency
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian tax residency
“Australian resident” has the meaning provided in the Income Tax Assessment Act 1997 (ITAA). In applying that definition, the consolidated
entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation’s public guidance in Tax
Ruling TR 2018/5 and Practical Compliance Guideline PCG 2018-009.
Foreign tax residency
Where an entity is shown as being resident in a foreign jurisdiction, this is taken to mean a resident for the purposes of the law of the foreign
jurisdiction relating to foreign income tax, within the meaning of the ITAA.
212
213
214
214
ANZ 2024 Annual Report
Directors’ Declaration
Independent Auditor’s Report
Financial report
215
To the shareholders of ANZ Group Holdings Limited
Report on the audit of the Financial Report
We have audited the Financial Report of ANZ Group Holdings Limited (the Company).
In our opinion, the accompanying Financial Report of the Company gives a true and fair view, including of the GGrroouupp’’ss financial position as at 30
September 2024 and of its financial performance for the year then ended, in accordance with the Corporations Act 2001, in compliance with Australian
Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, and Cash Flow Statement for the year then ended
Consolidated entity disclosure statement and accompanying basis of preparation as at 30 September 2024
Notes including material accounting policies
Directors’ Declaration.
Basis for opinion
The Group consists of ANZ Group Holdings Limited and the entities it controlled at the year-end or from time to time during the financial year.
We conducted our audit in accordance with Australian Auditing Standards and International Standards on Auditing. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of
the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements.
Subjective and complex valuation of certain financial instruments held at fair value
Carrying value of investments in PT Bank Pan Indonesia (PT Panin)
Key Audit Matters
The Key Audit Matters we identified are:
Allowance for expected credit losses
IT systems and controls
Acquisition of Suncorp Bank
period.
separate opinion on these matters.
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current
These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a
Directors’ Declaration
The Directors of ANZ Group Holdings Limited declare that:
a)
In the Directors’ opinion:
i)
the financial statements and notes of the Consolidated Entity are in accordance with the Corporations Act 2001, including:
A.
B.
section 296, that they comply with the Australian Accounting Standards and any further requirements of the Corporations Regulations
2001; and
section 297, that they give a true and fair view of the financial position of the Consolidated Entity as at 30 September 2024 and of its
performance for the year ended on that date; and
Opinion
the Consolidated Entity Disclosure Statement required by section 295(3A) of the Corporations Act 2001 and included on pages 211 to 213 of
the financial report is true and correct; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Accounting Standards and the Corporations Regulations 2001.
ii)
iii)
b) The notes to the financial statements of the Consolidated Entity include a statement that the financial statements and notes of the Consolidated
Entity comply with International Financial Reporting Standards; and
The Financial Report comprises:
Balance Sheet as at 30 September 2024
c)
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors.
Paul D O’Sullivan
Chairman
7 November 2024
Shayne C Elliott
Managing Director
214
215
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.
ANZ 2024 Annual Report
Overview
Governance
Operating
environment
Independent Auditor’s Report
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
Financial report
215
215
Directors’ Declaration
ANZ 2024 Annual Report
214
Directors’ Declaration
The Directors of ANZ Group Holdings Limited declare that:
a)
In the Directors’ opinion:
2001; and
A.
B.
performance for the year ended on that date; and
ii)
iii)
the Consolidated Entity Disclosure Statement required by section 295(3A) of the Corporations Act 2001 and included on pages 211 to 213 of
the financial report is true and correct; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
b) The notes to the financial statements of the Consolidated Entity include a statement that the financial statements and notes of the Consolidated
Entity comply with International Financial Reporting Standards; and
c)
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors.
Paul D O’Sullivan
Chairman
7 November 2024
Shayne C Elliott
Managing Director
i)
the financial statements and notes of the Consolidated Entity are in accordance with the Corporations Act 2001, including:
section 296, that they comply with the Australian Accounting Standards and any further requirements of the Corporations Regulations
To the shareholders of ANZ Group Holdings Limited
Report on the audit of the Financial Report
section 297, that they give a true and fair view of the financial position of the Consolidated Entity as at 30 September 2024 and of its
Opinion
We have audited the Financial Report of ANZ Group Holdings Limited (the Company).
In our opinion, the accompanying Financial Report of the Company gives a true and fair view, including of the GGrroouupp’’ss financial position as at 30
September 2024 and of its financial performance for the year then ended, in accordance with the Corporations Act 2001, in compliance with Australian
Accounting Standards and the Corporations Regulations 2001.
The Financial Report comprises:
Balance Sheet as at 30 September 2024
Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, and Cash Flow Statement for the year then ended
Consolidated entity disclosure statement and accompanying basis of preparation as at 30 September 2024
Notes including material accounting policies
Directors’ Declaration.
The Group consists of ANZ Group Holdings Limited and the entities it controlled at the year-end or from time to time during the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards and International Standards on Auditing. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of
the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements.
Key Audit Matters
The Key Audit Matters we identified are:
Allowance for expected credit losses
Subjective and complex valuation of certain financial instruments held at fair value
Carrying value of investments in PT Bank Pan Indonesia (PT Panin)
IT systems and controls
Acquisition of Suncorp Bank
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current
period.
These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
214
215
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.
ANZ 2024 Annual Report
216
216
ANZ 2024 Annual Report
Independent auditor’s report (continued)
Independent auditor’s report
Financial report
217
Key Audit Matters (continued)
Allowance for expected credit losses ($4,555m)
Refer to Note 14 to the Financial Report.
TThhee KKeeyy AAuuddiitt MMaatttteerr
Allowance for expected credit losses (ECL) is a Key Audit Matter due to the significance of the loans and advances balances to the Group’s financial
statements and the inherent complexity of the Group’s expected credit loss models (ECL models) used to measure ECL allowances. These models are
reliant on data and estimates including probability weighted economic scenarios and other key assumptions such as defining a significant increase in
credit risk (SICR).
AASB 9 Financial Instruments requires the Group to measure ECL on a forward-looking basis reflecting a range of economic conditions. Temporary
adjustments are made by the Group to address known ECL model limitations or emerging trends in the loan portfolios. We exercise significant judgement
in challenging the economic scenarios and the judgmental temporary adjustments the Group applies.
Additional subjectivity and judgement is applied in the Group’s modelling due to the heightened uncertainty associated with the impact of the economic
outlook and its impact on customers, increasing our audit effort thereon.
HHooww tthhee mmaatttteerr wwaass aaddddrreesssseedd iinn oouurr aauuddiitt
Our audit procedures for the allowance for ECL included assessing the Group’s significant accounting policies against the requirements of the accounting
standard. Additionally, our procedures included testing the Group’s key controls in relation to:
The ECL model governance, monitoring and validation processes which involved assessment of model performance;
The assessment and approval of the forward-looking macroeconomic assumptions and scenario weightings through challenge applied by the Group’s
internal governance processes;
Reconciliation of the data used in the ECL calculation process to gross balances recorded within the general ledger as well as source systems;
Customer credit rating (CCR), a key input into the SICR assumption for wholesale loans (non-retail loans). This covered elements such as: approval of
new lending facilities against the Group’s lending policies, monitoring of counterparty credit quality against the Group’s exposure criteria for internal
factors specific to the counterparty or external macroeconomic factors, and accuracy and timeliness of CCR and security indicator (SI) assessments
against lending policies and regulatory requirements;
IT system controls which record retail loans lending arrears, group exposures into delinquency buckets, and re-calculate individual allowances. We
tested automated calculation and change management controls and evaluated the Group’s oversight of the portfolios, with a focus on controls over
delinquency monitoring.
We tested relevant General Information Technology Controls (GITCs) in relation to the key IT applications used by the Group in measuring ECL allowances
as detailed in the IT Systems and Controls Key Audit Matter below.
In addition to controls testing, our procedures included:
Obtaining an understanding of the Group’s processes to determine ECL allowances, evaluating the ECL model methodologies against established
market practices and criteria in the accounting standards;
Reperforming a sample of credit assessments for wholesale loans controlled by the Group’s workout and recovery team assessed as higher risk or
impaired, and a sample of other loans, focusing on larger exposures assessed by the Group as showing signs of deterioration, or in areas of emerging
risk;
For each loan sampled, we challenged the Group’s assessment of CCR and SI using the customer’s financial position, the valuation of security, and,
where relevant, the risk of stranded assets, to inform our overall assessment of loan recoverability and the impact on the credit allowance. To do this,
we used the information on the Group’s loan file, portfolio and industry reviews, external rating and publications and, we enquired regarding the facts
and circumstances of the case with the Relationship Manager;
Exercising our judgement, our procedures included using our understanding of relevant industries and the macroeconomic environment and comparing
data and assumptions used by the Group in recoverability assessments to externally sourced evidence, such as, external credit ratings, publicly available
audited financial statements and comparable external valuations of collateral held. Where relevant, we assessed the forecast timing of future cash
flows in the context of underlying valuations and approved business plans and challenged key assumptions in the valuations;
Working with our credit risk specialists, we assessed the accuracy of the Group’s ECL model estimates by re-performing, for a sample of loans, the
calculation of the ECL allowance using our independently derived calculation tools and comparing this to the amount recorded by the Group;
Working with our economic specialists, we challenged the Group’s forward-looking macroeconomic assumptions and scenarios incorporated in the
Group’s ECL models. We compared the Group’s forecast GDP, unemployment rates, CPI and property price indices to relevant publicly available
macroeconomic information, and considered other known variables and information obtained through our other audit procedures to identify
contradictory indicators;
Testing the implementation of the Group’s SICR methodology by re-performing the staging calculation for a sample of loans taking into consideration
movements in the CCR from loan origination and comparing our result to actual staging applied on an individual account level in the Group’s ECL model;
Assessing the accuracy of the data used in the ECL models by checking a sample of data fields, such as, account balance and CCR to relevant source
systems;
Assessing the appropriateness of the Group’s disclosures in the Financial Report, using our understanding obtained from our testing and against the
requirements of the accounting standards.
Key Audit Matters (continued)
We challenged key assumptions used by the Group in their temporary adjustments. This included:
Assessing temporary adjustments against the Group’s ECL model and data deficiencies identified in the Group’s model validation processes, particularly
in light of the significant volatility in economic scenarios;
Comparing underlying data used in concentration risk and economic cycle allowances to underlying loan portfolio characteristics of recent loss
experience, current market conditions and specific risks in the Group’s loan portfolios;
Assessing certain temporary adjustments identified by the Group against internal and external information;
Assessing the completeness of temporary adjustments by checking the consistency of risks we identified in the loan portfolios against the Group’s
assessment.
Subjective and complex valuation of certain financial instruments held at fair value:
Fair value of level 3 asset positions $1,740m
Fair value of level 3 liability positions $15m
Fair value of level 2 asset positions $151,186m*
Fair value of level 2 liability positions $99,882m*
*This KAM relates to our audit procedures for structured notes, derivatives (mainly cancellable swaps and FX options) and fair value adjustments (credit
valuation adjustment and funding valuation adjustment) within the level 2 population, that are valued using more complex valuation models.
Refer to Note 19 to the Financial Report.
TThhee KKeeyy AAuuddiitt MMaatttteerr
The fair value of the Group’s Level 3 and certain Level 2 (Level 2) financial instruments is determined by the Group’s application of valuation techniques
which often involve the exercise of judgement and the use of assumptions and estimates.
The valuation of Level 3 and Level 2 financial instruments held at fair value is a Key Audit Matter due to:
The high degree of estimation uncertainty and potentially significant range of reasonable outcomes associated with the valuation of financial
instruments classified as Level 3 where significant pricing inputs used in the valuation methodology and models are not observable.
The complexity and subjectivity associated with the Group’s valuation models for certain Level 2 derivatives and structured notes leading to an increase
in estimation uncertainty.
These factors increased the level of judgement applied by us and our audit effort thereon.
In addressing this Key Audit Matter, we involved our valuation specialists to supplement our senior team members who understand the methods,
assumptions and data relevant to the Group’s valuation of financial instruments.
HHooww tthhee mmaatttteerr wwaass aaddddrreesssseedd iinn oouurr aauuddiitt
Our audit procedures in addressing this Key Audit Matter included:
Assessing the population of financial instruments held at fair value by the Group to identify portfolios with a higher risk of misstatement arising from
significant judgements over valuation either due to unobservable inputs or complex/subjective models;
Testing the design and operating effectiveness of key controls relating specifically to these financial instruments, including those in relation to:
independent price verification (IPV), including completeness of portfolios and valuation inputs subject to IPV;
o model validation at inception and periodically, including assessment of model limitation and assumptions;
review, approval and challenge of daily profit and loss by a control function;
collateral management process, including review and approval of margin reconciliations with clearing houses; and
review and approval of fair value adjustments (FVAs), including exit price and portfolio level adjustments.
In relation to the subjective valuation of certain Level 2 and Level 3 financial instruments, with our valuation specialists:
Assessing the reasonableness of key inputs and assumptions using comparable data in the market and available alternatives;
o Comparing the Group’s valuation methodology to industry practice and the criteria in the accounting standards; and
Independently revaluing a selection of financial instruments and FVAs of the Group. This involved sourcing independent inputs from comparable
data in the market and available alternatives. We challenged and assessed differences against the Group’s valuations.
Assessing the appropriateness of the Group’s disclosures in the Financial Report using our understanding obtained from our testing and against the
requirements of the accounting standards.
o
o
o
o
o
o
216
217
ANZ 2024 Annual Report
ANZ 2024 Annual Report
216
ANZ 2024 Annual Report
Independent auditor’s report (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Independent auditor’s report
Financial report
information
217
217
Key Audit Matters (continued)
We challenged key assumptions used by the Group in their temporary adjustments. This included:
Assessing temporary adjustments against the Group’s ECL model and data deficiencies identified in the Group’s model validation processes, particularly
in light of the significant volatility in economic scenarios;
Comparing underlying data used in concentration risk and economic cycle allowances to underlying loan portfolio characteristics of recent loss
experience, current market conditions and specific risks in the Group’s loan portfolios;
Assessing certain temporary adjustments identified by the Group against internal and external information;
Assessing the completeness of temporary adjustments by checking the consistency of risks we identified in the loan portfolios against the Group’s
assessment.
Subjective and complex valuation of certain financial instruments held at fair value:
Fair value of level 3 asset positions $1,740m
Fair value of level 3 liability positions $15m
Fair value of level 2 asset positions $151,186m*
Fair value of level 2 liability positions $99,882m*
*This KAM relates to our audit procedures for structured notes, derivatives (mainly cancellable swaps and FX options) and fair value adjustments (credit
valuation adjustment and funding valuation adjustment) within the level 2 population, that are valued using more complex valuation models.
The assessment and approval of the forward-looking macroeconomic assumptions and scenario weightings through challenge applied by the Group’s
Refer to Note 19 to the Financial Report.
TThhee KKeeyy AAuuddiitt MMaatttteerr
The fair value of the Group’s Level 3 and certain Level 2 (Level 2) financial instruments is determined by the Group’s application of valuation techniques
which often involve the exercise of judgement and the use of assumptions and estimates.
The valuation of Level 3 and Level 2 financial instruments held at fair value is a Key Audit Matter due to:
The high degree of estimation uncertainty and potentially significant range of reasonable outcomes associated with the valuation of financial
instruments classified as Level 3 where significant pricing inputs used in the valuation methodology and models are not observable.
The complexity and subjectivity associated with the Group’s valuation models for certain Level 2 derivatives and structured notes leading to an increase
in estimation uncertainty.
These factors increased the level of judgement applied by us and our audit effort thereon.
In addressing this Key Audit Matter, we involved our valuation specialists to supplement our senior team members who understand the methods,
assumptions and data relevant to the Group’s valuation of financial instruments.
HHooww tthhee mmaatttteerr wwaass aaddddrreesssseedd iinn oouurr aauuddiitt
Our audit procedures in addressing this Key Audit Matter included:
independent price verification (IPV), including completeness of portfolios and valuation inputs subject to IPV;
Assessing the population of financial instruments held at fair value by the Group to identify portfolios with a higher risk of misstatement arising from
significant judgements over valuation either due to unobservable inputs or complex/subjective models;
Testing the design and operating effectiveness of key controls relating specifically to these financial instruments, including those in relation to:
o
o model validation at inception and periodically, including assessment of model limitation and assumptions;
o
o
o
In relation to the subjective valuation of certain Level 2 and Level 3 financial instruments, with our valuation specialists:
o
o Comparing the Group’s valuation methodology to industry practice and the criteria in the accounting standards; and
o
review, approval and challenge of daily profit and loss by a control function;
collateral management process, including review and approval of margin reconciliations with clearing houses; and
review and approval of fair value adjustments (FVAs), including exit price and portfolio level adjustments.
Independently revaluing a selection of financial instruments and FVAs of the Group. This involved sourcing independent inputs from comparable
data in the market and available alternatives. We challenged and assessed differences against the Group’s valuations.
Assessing the reasonableness of key inputs and assumptions using comparable data in the market and available alternatives;
Assessing the appropriateness of the Group’s disclosures in the Financial Report using our understanding obtained from our testing and against the
requirements of the accounting standards.
217
Key Audit Matters (continued)
Allowance for expected credit losses ($4,555m)
Refer to Note 14 to the Financial Report.
TThhee KKeeyy AAuuddiitt MMaatttteerr
Allowance for expected credit losses (ECL) is a Key Audit Matter due to the significance of the loans and advances balances to the Group’s financial
statements and the inherent complexity of the Group’s expected credit loss models (ECL models) used to measure ECL allowances. These models are
reliant on data and estimates including probability weighted economic scenarios and other key assumptions such as defining a significant increase in
credit risk (SICR).
AASB 9 Financial Instruments requires the Group to measure ECL on a forward-looking basis reflecting a range of economic conditions. Temporary
adjustments are made by the Group to address known ECL model limitations or emerging trends in the loan portfolios. We exercise significant judgement
in challenging the economic scenarios and the judgmental temporary adjustments the Group applies.
Additional subjectivity and judgement is applied in the Group’s modelling due to the heightened uncertainty associated with the impact of the economic
outlook and its impact on customers, increasing our audit effort thereon.
HHooww tthhee mmaatttteerr wwaass aaddddrreesssseedd iinn oouurr aauuddiitt
Our audit procedures for the allowance for ECL included assessing the Group’s significant accounting policies against the requirements of the accounting
standard. Additionally, our procedures included testing the Group’s key controls in relation to:
The ECL model governance, monitoring and validation processes which involved assessment of model performance;
internal governance processes;
Reconciliation of the data used in the ECL calculation process to gross balances recorded within the general ledger as well as source systems;
Customer credit rating (CCR), a key input into the SICR assumption for wholesale loans (non-retail loans). This covered elements such as: approval of
new lending facilities against the Group’s lending policies, monitoring of counterparty credit quality against the Group’s exposure criteria for internal
factors specific to the counterparty or external macroeconomic factors, and accuracy and timeliness of CCR and security indicator (SI) assessments
against lending policies and regulatory requirements;
IT system controls which record retail loans lending arrears, group exposures into delinquency buckets, and re-calculate individual allowances. We
tested automated calculation and change management controls and evaluated the Group’s oversight of the portfolios, with a focus on controls over
We tested relevant General Information Technology Controls (GITCs) in relation to the key IT applications used by the Group in measuring ECL allowances
delinquency monitoring.
as detailed in the IT Systems and Controls Key Audit Matter below.
In addition to controls testing, our procedures included:
Obtaining an understanding of the Group’s processes to determine ECL allowances, evaluating the ECL model methodologies against established
market practices and criteria in the accounting standards;
Reperforming a sample of credit assessments for wholesale loans controlled by the Group’s workout and recovery team assessed as higher risk or
impaired, and a sample of other loans, focusing on larger exposures assessed by the Group as showing signs of deterioration, or in areas of emerging
risk;
For each loan sampled, we challenged the Group’s assessment of CCR and SI using the customer’s financial position, the valuation of security, and,
where relevant, the risk of stranded assets, to inform our overall assessment of loan recoverability and the impact on the credit allowance. To do this,
we used the information on the Group’s loan file, portfolio and industry reviews, external rating and publications and, we enquired regarding the facts
and circumstances of the case with the Relationship Manager;
Exercising our judgement, our procedures included using our understanding of relevant industries and the macroeconomic environment and comparing
data and assumptions used by the Group in recoverability assessments to externally sourced evidence, such as, external credit ratings, publicly available
audited financial statements and comparable external valuations of collateral held. Where relevant, we assessed the forecast timing of future cash
flows in the context of underlying valuations and approved business plans and challenged key assumptions in the valuations;
Working with our credit risk specialists, we assessed the accuracy of the Group’s ECL model estimates by re-performing, for a sample of loans, the
calculation of the ECL allowance using our independently derived calculation tools and comparing this to the amount recorded by the Group;
Working with our economic specialists, we challenged the Group’s forward-looking macroeconomic assumptions and scenarios incorporated in the
Group’s ECL models. We compared the Group’s forecast GDP, unemployment rates, CPI and property price indices to relevant publicly available
macroeconomic information, and considered other known variables and information obtained through our other audit procedures to identify
contradictory indicators;
Testing the implementation of the Group’s SICR methodology by re-performing the staging calculation for a sample of loans taking into consideration
movements in the CCR from loan origination and comparing our result to actual staging applied on an individual account level in the Group’s ECL model;
Assessing the accuracy of the data used in the ECL models by checking a sample of data fields, such as, account balance and CCR to relevant source
systems;
requirements of the accounting standards.
Assessing the appropriateness of the Group’s disclosures in the Financial Report, using our understanding obtained from our testing and against the
216
ANZ 2024 Annual Report
218
218
ANZ 2024 Annual Report
Independent auditor’s report (continued)
Key Audit Matters (continued)
Carrying value of investments in PT Bank Pan Indonesia (PT Panin) ($1,415m)
Refer to Note 28 to the Financial Report.
TThhee KKeeyy AAuuddiitt MMaatttteerr
The carrying value of the Group’s investment in PT Panin is a Key Audit Matter due to certain conditions increasing the possibility of this investment being
impaired, plus the risk of inaccurate forecasts or a wider range of possible outcomes for us to consider, including:
the presence of impairment indicators resulting from the carrying value of the investment in PT Panin exceeding the Fair Value Less Costs of Disposal
(FVLCOD) at times throughout the year;
historical volatility in the market price of the PT Panin shares;
impairment has been recognised in prior periods.
The presence of these conditions necessitated increased judgement by us to assess the Group’s valuation methods and associated investment value
determined by the Group.
We involved our valuation specialists to supplement our senior team members in assessing this Key Audit Matter.
HHooww tthhee mmaatttteerr wwaass aaddddrreesssseedd iinn oouurr aauuddiitt
Working with our valuation specialists, our procedures included:
Evaluating the appropriateness of the recoverable amount methods applied by the Group against the requirements of the accounting standards;
Independently evaluating FVLCOD method and assessing the market liquidity of the share price at the reporting date, in light of the historical volatility
in the market price;
Independently evaluating the valuation derived from the value in use method used by the Group. This included:
o
o
Assessing the integrity of the model used, including the accuracy of the underlying calculation formulas;
Assessing the Group’s key assumptions used in the model by comparing to external observable metrics, historical experience, our knowledge of
the market and current market practice;
Independently developing a discount rate range considered comparable using publicly available market data for comparable entities, adjusted for
factors specific to the investment and the market and industry it operates in;
o
o Comparing the forecast earnings contained in the model to the approved PT Panin financial plan, released financial results and against available
market data;
Assessing the accuracy of previous forecasts to inform our evaluation of current forecasts incorporated in the model;
Evaluating the sensitivity of the model by varying key assumptions within a reasonable possible range. We did this to identify those assumptions
at higher risk of bias or inconsistency in application and to focus our further procedures.
o
o
Assessing the Group’s disclosures in the Financial Report using our understanding obtained from our testing and against the requirements of the
accounting standards.
IT systems and controls
TThhee KKeeyy AAuuddiitt MMaatttteerr
The Group’s businesses utilise many complex, interdependent Information Technology (IT) systems to process and record a high volume of transactions.
The controls over access, changes to and operation of relevant IT systems are key to the recording of financial information and the preparation of a
financial report which provides a true and fair view of the Group’s financial position and performance.
The IT systems and controls, as they impact the financial recording and reporting of the Group’s transactions, is a Key Audit Matter as our audit approach
could significantly differ depending on the effective operation of these Group IT controls. We work with our IT specialists in this regard.
HHooww tthhee mmaatttteerr wwaass aaddddrreesssseedd iinn oouurr aauuddiitt
Our testing focused on the technology control environments for key IT applications (systems) used in processing significant financial transactions and
recording balances in the general ledgers, and the automated controls embedded within these systems which link the technology-enabled business
processes. Working with our IT specialists our audit procedures included:
o
Assessing the governance and higher-level controls across the relevant IT environments, including policy design, policy review and awareness, and IT
Risk and cyber security management practices;
Testing the design and operating effectiveness of the Group’s key controls with respect to:
o
user access management, including how users are on-boarded, monitored, and removed on a timely basis from key IT applications and
infrastructure. We also tested controls for managing privileged roles and functions across relevant IT applications and the underlying infrastructure;
change management for systems relevant to financial reporting, including authorisation of changes prior to development, testing and approvals
prior to migration into the production environment of key IT applications. We assessed appropriateness of users with access to release changes
to IT application production environments against their job roles;
access to and monitoring of system batch job schedules;
o
Design and operating effectiveness testing of key automated business process controls including those relating to enforcing segregation of duties to
avoid conflicts from inappropriate role combinations within IT applications. We tested key controls over:
o
System configurations to perform calculations and mappings of financial transactions, identification of transactions requiring approval and
automated reconciliation controls (both between systems and intra-system); and
Data integrity of key system reporting used in our audit procedures and the Group’s financial reporting.
o
218
ANZ 2024 Annual Report
ANZ 2024 Annual Report
218
ANZ 2024 Annual Report
Independent auditor’s report (continued)
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
Independent auditor’s report
Financial report
information
219
219
Key Audit Matters (continued)
Acquisition of Suncorp Bank
Refer to Note 36 to the Financial Report.
The Key Audit Matter
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank for a total cash
consideration of $6.2bn. This transaction is a Key Audit Matter given the size of the acquisition and its impact to the Group’s financial statements.
We focused our audit effort on the recoverability of the provisional goodwill recognised given the transaction was entered into two years prior to the
settlement date.
We involved our senior team members, including specialists, in assessing this Key Audit Matter.
How the matter was addressed in our audit
Our procedures included:
Evaluating the Group’s acquisition accounting approach against the criteria and requirements of the accounting standards;
Reading the underlying transaction agreements to understand the key terms of the Group’s acquisition, nature of the assets and liabilities acquired,
and consideration paid;
Testing the provisional fair value of the loans and advances acquired and deposits and other borrowings assumed, amongst other balance sheet items
acquired, to the underlying records of SBGH as at 31 July 2024 and their consideration of fair value amounts;
Assessing the consideration paid against the underlying transaction agreements and evidence of payments;
Together with our valuation specialists, we assessed the Group’s determination of the recoverability of provisional goodwill recognised. This included:
o
o Challenging the key assumptions used by the Group. We did this using external observable metrics, historical experience, our knowledge of the
Understanding the Group’s provisional goodwill impairment assessment;
industry and current market practice;
Evaluating the sensitivity of the model used by the Group by varying key assumptions within a reasonably possible range.
o
Assessing the appropriateness of the Group’s disclosures in the Financial Report using our understanding obtained from our testing and against the
requirements of the accounting standards.
Other information
Other Information is financial and non-financial information in ANZ Group Holdings Limited’s annual report which is provided in addition to the Financial
Report and the Auditor’s Report. The Directors are responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance
conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other
Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on
the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
preparing the Financial Report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and
performance of the Group, and in compliance with Australian Accounting Standards and the Corporations Regulations 2001
implementing necessary internal control to enable the preparation of a Financial Report in accordance with the Corporations Act 2001, including giving
a true and fair view of the financial position and performance of the Group, and that is free from material misstatement, whether due to fraud or error
assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is
appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they
either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.
219
Carrying value of investments in PT Bank Pan Indonesia (PT Panin) ($1,415m)
Key Audit Matters (continued)
Refer to Note 28 to the Financial Report.
TThhee KKeeyy AAuuddiitt MMaatttteerr
The carrying value of the Group’s investment in PT Panin is a Key Audit Matter due to certain conditions increasing the possibility of this investment being
impaired, plus the risk of inaccurate forecasts or a wider range of possible outcomes for us to consider, including:
the presence of impairment indicators resulting from the carrying value of the investment in PT Panin exceeding the Fair Value Less Costs of Disposal
(FVLCOD) at times throughout the year;
historical volatility in the market price of the PT Panin shares;
impairment has been recognised in prior periods.
The presence of these conditions necessitated increased judgement by us to assess the Group’s valuation methods and associated investment value
determined by the Group.
We involved our valuation specialists to supplement our senior team members in assessing this Key Audit Matter.
HHooww tthhee mmaatttteerr wwaass aaddddrreesssseedd iinn oouurr aauuddiitt
Working with our valuation specialists, our procedures included:
Evaluating the appropriateness of the recoverable amount methods applied by the Group against the requirements of the accounting standards;
Independently evaluating FVLCOD method and assessing the market liquidity of the share price at the reporting date, in light of the historical volatility
in the market price;
Independently evaluating the valuation derived from the value in use method used by the Group. This included:
Assessing the integrity of the model used, including the accuracy of the underlying calculation formulas;
Assessing the Group’s key assumptions used in the model by comparing to external observable metrics, historical experience, our knowledge of
the market and current market practice;
Independently developing a discount rate range considered comparable using publicly available market data for comparable entities, adjusted for
factors specific to the investment and the market and industry it operates in;
o Comparing the forecast earnings contained in the model to the approved PT Panin financial plan, released financial results and against available
market data;
Assessing the accuracy of previous forecasts to inform our evaluation of current forecasts incorporated in the model;
Evaluating the sensitivity of the model by varying key assumptions within a reasonable possible range. We did this to identify those assumptions
at higher risk of bias or inconsistency in application and to focus our further procedures.
Assessing the Group’s disclosures in the Financial Report using our understanding obtained from our testing and against the requirements of the
accounting standards.
IT systems and controls
TThhee KKeeyy AAuuddiitt MMaatttteerr
The Group’s businesses utilise many complex, interdependent Information Technology (IT) systems to process and record a high volume of transactions.
The controls over access, changes to and operation of relevant IT systems are key to the recording of financial information and the preparation of a
financial report which provides a true and fair view of the Group’s financial position and performance.
The IT systems and controls, as they impact the financial recording and reporting of the Group’s transactions, is a Key Audit Matter as our audit approach
could significantly differ depending on the effective operation of these Group IT controls. We work with our IT specialists in this regard.
HHooww tthhee mmaatttteerr wwaass aaddddrreesssseedd iinn oouurr aauuddiitt
Our testing focused on the technology control environments for key IT applications (systems) used in processing significant financial transactions and
recording balances in the general ledgers, and the automated controls embedded within these systems which link the technology-enabled business
processes. Working with our IT specialists our audit procedures included:
Assessing the governance and higher-level controls across the relevant IT environments, including policy design, policy review and awareness, and IT
Risk and cyber security management practices;
Testing the design and operating effectiveness of the Group’s key controls with respect to:
user access management, including how users are on-boarded, monitored, and removed on a timely basis from key IT applications and
infrastructure. We also tested controls for managing privileged roles and functions across relevant IT applications and the underlying infrastructure;
change management for systems relevant to financial reporting, including authorisation of changes prior to development, testing and approvals
prior to migration into the production environment of key IT applications. We assessed appropriateness of users with access to release changes
to IT application production environments against their job roles;
access to and monitoring of system batch job schedules;
Design and operating effectiveness testing of key automated business process controls including those relating to enforcing segregation of duties to
avoid conflicts from inappropriate role combinations within IT applications. We tested key controls over:
System configurations to perform calculations and mappings of financial transactions, identification of transactions requiring approval and
automated reconciliation controls (both between systems and intra-system); and
Data integrity of key system reporting used in our audit procedures and the Group’s financial reporting.
218
o
o
o
o
o
o
o
o
o
o
ANZ 2024 Annual Report
220
220
ANZ 2024 Annual Report
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards and
International Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report.
These responsibilities also apply to our audit performed in accordance with International Standards on Auditing.
Report on the Remuneration Report
Opinion
In our opinion, the Remuneration Report of ANZ Group Holdings Limited for the year ended 30 September 2024, complies with Section 300A of the
Corporations Act 2001 and is prepared, in all material respects, in accordance with the accompanying basis of preparation to the Remuneration Report.
Directors’ responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the
Corporations Act 2001 and the accompanying basis of preparation to the Remuneration Report.
Our responsibilities
We have audited the Remuneration Report included in pages 48 to 89 of the Directors’ report for the year ended 30 September 2024.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Maria Trinci
Partner
Melbourne
7 November 2024
KPMG
220
ANZ 2024 Annual Report
ANZ 2024 Annual Report
220
ANZ 2024 Annual Report
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
221
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
to issue an Auditor’s Report that includes our opinion.
to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and
Shareholder Information - Unaudited
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards and
International Standards on Auditing will always detect a material misstatement when it exists.
Ordinary shares
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of the Financial Report.
At 1 October 2024, the 20 largest holders of ANZGHL ordinary shares held 1,838,660,027 ordinary shares, equal to 61.72% of the total
issued ordinary capital. At 1 October 2024 the issued ordinary capital was 2,978,913,443 ordinary shares.
A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report.
Name
Number of shares
% of shares
These responsibilities also apply to our audit performed in accordance with International Standards on Auditing.
Report on the Remuneration Report
Opinion
Directors’ responsibilities
Our responsibilities
In our opinion, the Remuneration Report of ANZ Group Holdings Limited for the year ended 30 September 2024, complies with Section 300A of the
Corporations Act 2001 and is prepared, in all material respects, in accordance with the accompanying basis of preparation to the Remuneration Report.
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the
Corporations Act 2001 and the accompanying basis of preparation to the Remuneration Report.
We have audited the Remuneration Report included in pages 48 to 89 of the Directors’ report for the year ended 30 September 2024.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Maria Trinci
Partner
Melbourne
7 November 2024
1
2
3
4
5
6
7
8
9
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD
NETWEALTH INVESTMENTS LIMITED
10 CITICORP NOMINEES PTY LIMITED
11 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
12 ARGO INVESTMENTS LIMITED
13 AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED
14 IOOF INVESTMENT SERVICES LIMITED
15 BNP PARIBAS NOMS (NZ) LTD
16 CUSTODIAL SERVICES LIMITED
17 IOOF INVESTMENT SERVICES LIMITED
18 UBS NOMINEES PTY LTD
19 NETWEALTH INVESTMENTS LIMITED
20 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
878,411,966
443,109,439
278,508,425
50,907,592
36,556,619
28,069,906
21,712,736
15,790,229
15,705,624
13,907,293
8,145,969
8,015,275
7,415,000
6,349,878
5,367,770
4,716,704
4,500,446
4,138,881
3,705,697
3,624,578
29.49
14.87
9.35
1.71
1.23
0.94
0.73
0.53
0.53
0.47
0.27
0.27
0.25
0.21
0.18
0.16
0.15
0.14
0.12
0.12
Total
1,838,660,027
61.72
Distribution of shareholdings
At 1 October 2024 – Range of securities
Number of holders
% of holders
Number of shares
% of shares
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
Over 100,000
Total
286,021
166,717
30,023
16,990
398
500,149
57.19
33.33
6.00
3.40
0.08
98,175,585
381,270,066
208,757,448
339,267,741
1,951,442,603
3.29
12.80
7.01
11.39
65.51
100.00
2,978,913,443
100.00
KPMG
220
222
At 1 October 2024:
• The average size of holdings of ordinary
shares was 5,956 (2023: 5,666) shares;
and
• There were 15,816 holdings (2023:
19,865 holdings) of less than a
marketable parcel (less than $500 in
value or 17 shares based on the
market price of $30.15 per share).
Substantial shareholders
As at 1 October 2024, BlackRock Group,
Vanguard Group and State Street
Corporation had a substantial holding
of ordinary shares.
BlackRock Group has been a substantial
shareholder since 12 May 2017
(172,225,527 ordinary shares (6.07%)
as at 2 December 2019).
Vanguard Group has been a substantial
shareholder since 23 December 2022
(158,333,352 ordinary shares (5.272%)
as at 23 December 2022).
State Street Corporation has been
a substantial shareholder since 21
December 2022 (184,009,611 ordinary
shares (6.12%) as at 15 May 2024).
On-market buy-back
As announced on 7 May 2024, there is
currently an on-market buy-back in
relation to ANZGHL’s ordinary shares.
Voting rights of ordinary shares
The Constitution provides for votes to
be cast as follows:
i) on show of hands, one vote for each
shareholder; and
ii) on a poll, one vote for every fully paid
ordinary share.
A register of holders of ordinary shares
is held at:
452 Johnston Street
Abbotsford Victoria
Australia
(Telephone: +61 3 9415 4010)
Employee Shareholder
Information
In order to comply with the requirements
of the ANZ Employee Share Acquisition
Plan Rules and the ANZ Share Option Plan
Rules, shares or options must not be
issued under these plans if the aggregate
number of shares and options that remain
subject to the rules of either plan exceed
5% of the total number of ANZGHL shares
of all classes on issue (including
preference shares). At 30 September
2024, participants under the following
plans/schemes held 0.63% (2023: 0.58%)
of the total number of ANZGHL shares of
all classes on issue:
• ANZ Employee Share Acquisition Plan;
• ANZ Employee Share Save Scheme; and
• ANZ Share Option Plan.
Stock Exchange Listings
At 1 October 2024:
ANZGHL stock exchange listing
ANZGHL’s ordinary shares are listed on the
Australian Securities Exchange (ASX) and
New Zealand’s Exchange (NZX).
ANZ Group stock exchange listings
The ANZ Group’s other stock exchange
listings include:
• ASX
– ANZ Capital Notes (CN5, CN6, CN7,
CN8 and CN9), the ANZ Capital
Securities and subordinated debt
issued by ANZBGL;
– residential mortgage backed
securities issued pursuant to
ANZBGL’s Kingfisher securitisation
programs; and
– residential mortgage backed
securities issued pursuant to Norfina
Limited’s Apollo securitisation
programs for those Apollo Trusts
with listed securities;
• London Stock Exchange
– senior debt (including covered bonds)
issued by ANZBGL;
– subordinated debt issued by ANZ
Bank New Zealand Limited; and
– senior debt (including covered bonds)
issued by ANZ New Zealand (Int’l)
Limited;
• NZX
– perpetual preference shares, senior
debt and subordinated debt issued
by ANZ Bank New Zealand Limited;
and
• SIX Swiss Exchange
– senior debt issued by ANZ
New Zealand (Int’l) Limited.
For more information on the Capital Notes,
Capital Securities and debt issuances
issued by ANZBGL, refer to Note 17 in
the ANZGHL Financial Report.
American Depositary Receipts
ANZ has American Depositary Receipts
(ADRs) representing American Depositary
Shares (ADSs) that are traded on the
over-the-counter securities market ‘OTC
Pink’ electronic platform operated by OTC
Markets Group Inc. in the United States
under the ticker symbol: ANZGY and the
CUSIP number: 03736N104.
With effect from 23 July 2008, the ADR
ratio changed from one ADS representing
five ordinary shares to one ADS
representing one ordinary share.
As a result of ANZ’s January 2023
restructure, holders of ADRs representing
ordinary shares of ANZBGL received one
ADR representing one ordinary share of
ANZGHL for each ANZBGL ADR that they
held. In connection with the restructure,
the deposit agreement governing the
ANZBGL ADRs was terminated.
The Bank of New York (BNY) is the
Depositary for the Company’s ADR
program in the United States. You may also
visit BNY’s website at www.adrbny.com.
ADR Investors who hold ADRs via a broker
should contact their US broker directly for
queries relating to their holdings.
Registered ADR Holders – held via
Computershare – should contact the
registry directly:
BNY Shareowner Services
PO Box 43078
Providence RI 02940-3078 USA
USA Toll Free Telephone: 1 888 269 2377
Telephone for International Callers:
1 201 680 6825
Web:
www-us.computershare.com/investor
Email:
shrrelations@cpushareownerservices.com
ANZ 2024 Annual Report Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
223
Important dates for Shareholders 20251
May
08 May
Half Year Results Announcement
November 10 Nov
Annual Results Announcement
13 May
Interim Dividend Ex-Date
13 Nov
Final Dividend Ex-Date
14 May
Interim Dividend Record Date
14 Nov
Final Dividend Record Date
15 May
DRP/BOP/Foreign Currency Election Date
17 Nov
DRP/BOP/Foreign Currency Election Date
July
01 Jul
Interim Dividend Payment Date
December 18 Dec
Annual General Meeting
19 Dec
Final Dividend Payment Date
October
16 Oct
Closing date for receipt of
Director Nominations
Contacts
Registered office
Share registrar
More information
ANZ Centre Melbourne
Level 9, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 3 9273 5555
Facsimile: +61 3 8542 5252
Company Secretary: Simon Pordage
Investor relations
Level 10, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 3 8654 7682
Facsimile: +61 3 8654 8886
Email: investor.relations@anz.com
Web: shareholder.anz.com
Group General Manager Investor
Relations: Jill Campbell
Communications
and public affairs
Level 10, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 2 6198 5001
Email: Tony.Warren@anz.com
Group General Manager Communications
and Public Affairs: Tony Warren
Australia
Computershare Investor
Services Pty Ltd
GPO Box 2975
Melbourne VIC 3001 Australia
Telephone within Australia: 1800 11 33 99
International Callers: +61 3 9415 4010
Facsimile: +61 3 9473 2500
Email:
anzshareregistry@computershare.com.au
New Zealand
Computershare Investor
Services Limited
Private Bag 92119
Auckland 1142 New Zealand
Telephone: 0800 174 007
Facsimile: +64 9 488 8787
United Kingdom
Computershare Investor
Services PLC
The Pavilions, Bridgwater Road
Bristol BS99 6ZZ UK
Telephone: +44 870 702 0000
Facsimile: +44 870 703 6101
General information on ANZ can be
obtained from our website at anz.com.
Shareholders can visit our Shareholder
Centre at anz.com/shareholder/centre.
ANZ Corporate Governance: for
information about ANZ’s approach to
Corporate Governance and to obtain
copies of ANZ’s Constitution, Board/Board
Committee Charters, Code of Conduct
and summaries of other ANZ policies of
interest to shareholders and stakeholders,
visit anz.com/corporategovernance.
ANZ Group Holdings Limited (ANZ)
ABN 16 659 510 791.
This Annual Report has been prepared
for ANZ Group Holdings Limited (the
Company) together with its subsidiaries
which are variously described as: “ANZ”,
“ANZGHL”, “Group”, “ANZ Group”, “us”, “we”
or ”our”.
1. If there are any changes to these dates, the Australian Securities Exchange will be notified accordingly. 224
Glossary
Glossary
AASs means Australian Accounting Standards.
AASB means Australian Accounting Standards Board. The term
‘AASB’ is commonly used when identifying AASs issued by the AASB.
In doing so, the term is used together with the AAS number.
ADI means Authorised Deposit-taking Institution as defined by APRA.
ANZ Bank Group means ANZ BH Pty Ltd and each of its subsidiaries,
including ANZBGL and ANZ Bank New Zealand Limited.
ANZ Bank New Zealand means ANZ Bank New Zealand Limited.
ANZBGL means Australia and New Zealand Banking Group Limited.
ANZBGL Group means ANZBGL and each of its subsidiaries.
ANZEST means ANZ Employee Share Trust.
ANZ Group means the ANZBGL Group or the ANZGHL Group as a
whole (including all businesses), as the context requires.
ANZGHL means ANZ Group Holdings Limited.
ANZGHL Group means ANZGHL and each of its subsidiaries,
including ANZ BH Pty Ltd, ANZ Group Services Pty Ltd and ANZ NBH
Pty Ltd.
ANZ Non-Bank Group means ANZ NBH Pty Ltd and each of its
subsidiaries, including the Group’s beneficial interests in the 1835i
trusts and non-controlling interests in the Worldline merchant
acquiring joint venture, and ANZ Group Services Pty Ltd.
ANZ Research – Economics is a business unit within ANZ, which
conducts analysis of key economic inputs and developments and
assessment of the potential impacts on the local, regional and global
economies.
ANZ Share means a fully paid ordinary share in the capital of ANZ.
APRA means Australian Prudential Regulation Authority.
APS means ADI Prudential Standard.
ASX means Australian Securities Exchange.
AT1 means Additional Tier 1 capital.
Basel Harmonisation ratios are the Group’s interpretation of Basel
Calculation of RWA for credit risk regulations (effective 1 Jan 2023)
documented in the Basel Framework and the ‘Australian Banking
Association Basel 3.1 Capital Comparison Study’ (Mar 2023). This
definition is for measures from March 2023 onwards.
BCBS means Basel Committee on Banking Supervision.
Board means ANZGHL Board of Directors.
Cash and cash equivalents comprise coins, notes, money at call,
balances held with central banks, liquid settlement balances (readily
convertible to known amounts of cash which are subject to
insignificant risk of changes in value) and securities purchased under
agreements to resell (reverse repurchase agreements) in less than
three months.
Cash profit is an additional measure of profit which is prepared on a
basis other than in accordance with accounting standards. Cash
profit represents the Group’s preferred measure of the result of the
core business activities of the Group, enabling readers to assess
Group and Divisional performance against prior periods and against
peer institutions. To calculate cash profit, the Group excludes non-
core items from statutory profit as noted below. These items are
calculated consistently period on period so as not to discriminate
between positive and negative adjustments.
Gains and losses are adjusted where they are significant, or have the
potential to be significant in any one period, and fall into one of
three categories:
2.
1. gains or losses included in earnings arising from changes in tax,
legal or accounting legislation or other non-core items not
associated with the core operations of the Group;
economic hedging impacts and similar accounting items that
represent timing differences that will reverse through earnings in
the future; and
accounting reclassifications between individual line items that do
not impact reported results, such as credit risk on impaired
derivatives.
3.
Cash profit is not a measure of cash flow or profit determined on a
cash accounting basis.
Collectively assessed allowance for expected credit loss
represents the Expected Credit Loss (ECL), which incorporates
forward-looking information and does not require an actual loss
event to have occurred for a credit loss provision to be recognised.
Committed Liquidity Facility (CLF) is a facility with the RBA that was
established to offset the shortage of available High Quality Liquid
Assets (HQLA) in Australia and provides an alternative form of
contingent liquidity. The CLF is collateralised by assets, including
internal residential mortgage-backed securities, that are eligible to be
pledged as security with the RBA. The total amount of the CLF
available to a qualifying ADI is set annually by APRA. In September
2021, APRA wrote to ADIs to advise that APRA and the RBA consider
there to be sufficient HQLA for ADIs to meet their Liquidity Coverage
Ratio (LCR) requirements, and therefore the use of the CLF should no
longer be required beyond 2022 calendar year.
Covered bonds are bonds issued by an ADI to external investors
secured against a pool of the ADI’s assets (the cover pool) assigned
to a bankruptcy remote special purpose entity. The primary assets
forming the cover pool are mortgage loans. The mortgages remain
on the issuer’s balance sheet. The covered bond holders have dual
recourse to the issuer and the cover pool assets. The mortgages
included in the cover pool cannot be otherwise pledged or disposed
of but may be repurchased and substituted in order to maintain the
credit quality of the pool. The Group issues covered bonds as part of
its funding activities.
Credit risk is the risk of financial loss resulting from the failure of the
Group’s customers and counterparties to honour or perform fully the
terms of a loan or contract.
Credit risk weighted assets (CRWA) represent assets which are
weighted for credit risk according to a set formula as prescribed in
APS 112/113.
Customer deposits represent term deposits, other deposits bearing
interest, deposits not bearing interest and borrowing corporations’
debt excluding securitisation deposits.
Customer remediation includes provisions for expected refunds to
customers, remediation project costs and related customer and
regulatory claims, penalties and litigation costs and outcomes.
1
ANZ 2024 Annual Report
Glossary
Glossary
Overview
Operating
environment
Governance
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information
AASs means Australian Accounting Standards.
Gains and losses are adjusted where they are significant, or have the
potential to be significant in any one period, and fall into one of
AASB means Australian Accounting Standards Board. The term
‘AASB’ is commonly used when identifying AASs issued by the AASB.
three categories:
In doing so, the term is used together with the AAS number.
1. gains or losses included in earnings arising from changes in tax,
ADI means Authorised Deposit-taking Institution as defined by APRA.
legal or accounting legislation or other non-core items not
associated with the core operations of the Group;
ANZ Bank Group means ANZ BH Pty Ltd and each of its subsidiaries,
2.
economic hedging impacts and similar accounting items that
including ANZBGL and ANZ Bank New Zealand Limited.
represent timing differences that will reverse through earnings in
ANZ Bank New Zealand means ANZ Bank New Zealand Limited.
the future; and
ANZBGL means Australia and New Zealand Banking Group Limited.
ANZBGL Group means ANZBGL and each of its subsidiaries.
derivatives.
3.
accounting reclassifications between individual line items that do
not impact reported results, such as credit risk on impaired
ANZEST means ANZ Employee Share Trust.
ANZ Group means the ANZBGL Group or the ANZGHL Group as a
whole (including all businesses), as the context requires.
ANZGHL means ANZ Group Holdings Limited.
ANZGHL Group means ANZGHL and each of its subsidiaries,
including ANZ BH Pty Ltd, ANZ Group Services Pty Ltd and ANZ NBH
Pty Ltd.
ANZ Non-Bank Group means ANZ NBH Pty Ltd and each of its
subsidiaries, including the Group’s beneficial interests in the 1835i
trusts and non-controlling interests in the Worldline merchant
acquiring joint venture, and ANZ Group Services Pty Ltd.
ANZ Research – Economics is a business unit within ANZ, which
conducts analysis of key economic inputs and developments and
assessment of the potential impacts on the local, regional and global
economies.
APRA means Australian Prudential Regulation Authority.
APS means ADI Prudential Standard.
ASX means Australian Securities Exchange.
AT1 means Additional Tier 1 capital.
Cash profit is not a measure of cash flow or profit determined on a
cash accounting basis.
Collectively assessed allowance for expected credit loss
represents the Expected Credit Loss (ECL), which incorporates
forward-looking information and does not require an actual loss
event to have occurred for a credit loss provision to be recognised.
Committed Liquidity Facility (CLF) is a facility with the RBA that was
established to offset the shortage of available High Quality Liquid
Assets (HQLA) in Australia and provides an alternative form of
contingent liquidity. The CLF is collateralised by assets, including
internal residential mortgage-backed securities, that are eligible to be
pledged as security with the RBA. The total amount of the CLF
available to a qualifying ADI is set annually by APRA. In September
2021, APRA wrote to ADIs to advise that APRA and the RBA consider
there to be sufficient HQLA for ADIs to meet their Liquidity Coverage
Ratio (LCR) requirements, and therefore the use of the CLF should no
Covered bonds are bonds issued by an ADI to external investors
secured against a pool of the ADI’s assets (the cover pool) assigned
to a bankruptcy remote special purpose entity. The primary assets
forming the cover pool are mortgage loans. The mortgages remain
on the issuer’s balance sheet. The covered bond holders have dual
recourse to the issuer and the cover pool assets. The mortgages
ANZ Share means a fully paid ordinary share in the capital of ANZ.
longer be required beyond 2022 calendar year.
Basel Harmonisation ratios are the Group’s interpretation of Basel
included in the cover pool cannot be otherwise pledged or disposed
Calculation of RWA for credit risk regulations (effective 1 Jan 2023)
of but may be repurchased and substituted in order to maintain the
documented in the Basel Framework and the ‘Australian Banking
credit quality of the pool. The Group issues covered bonds as part of
Association Basel 3.1 Capital Comparison Study’ (Mar 2023). This
its funding activities.
definition is for measures from March 2023 onwards.
BCBS means Basel Committee on Banking Supervision.
Board means ANZGHL Board of Directors.
Credit risk is the risk of financial loss resulting from the failure of the
Group’s customers and counterparties to honour or perform fully the
terms of a loan or contract.
Credit risk weighted assets (CRWA) represent assets which are
weighted for credit risk according to a set formula as prescribed in
Cash and cash equivalents comprise coins, notes, money at call,
balances held with central banks, liquid settlement balances (readily
convertible to known amounts of cash which are subject to
APS 112/113.
insignificant risk of changes in value) and securities purchased under
Customer deposits represent term deposits, other deposits bearing
agreements to resell (reverse repurchase agreements) in less than
interest, deposits not bearing interest and borrowing corporations’
three months.
debt excluding securitisation deposits.
Cash profit is an additional measure of profit which is prepared on a
Customer remediation includes provisions for expected refunds to
basis other than in accordance with accounting standards. Cash
customers, remediation project costs and related customer and
profit represents the Group’s preferred measure of the result of the
regulatory claims, penalties and litigation costs and outcomes.
core business activities of the Group, enabling readers to assess
Group and Divisional performance against prior periods and against
peer institutions. To calculate cash profit, the Group excludes non-
core items from statutory profit as noted below. These items are
calculated consistently period on period so as not to discriminate
between positive and negative adjustments.
Net interest margin is net interest income as a percentage
of average interest earning assets.
Net loans and advances represent gross loans and advances less
allowance for expected credit losses.
Net Stable Funding Ratio (NSFR) is the ratio of the amount of
available stable funding (ASF) to the amount of required stable
funding (RSF) defined by APRA. The amount of ASF is the portion of
an ADI’s capital and liabilities expected to be a reliable source of
funds over a one year time horizon. The amount of RSF is a function
of the liquidity characteristics and residual maturities of an ADI’s
assets and off-balance sheet activities. ADIs must maintain an NSFR
of at least 100%.
Net tangible assets equal share capital and reserves attributable to
shareholders of the Company less unamortised intangible assets
(including goodwill and software).
NZX means New Zealand’s Exchange.
RBA means Reserve Bank of Australia, Australia’s central bank.
RBNZ means Reserve Bank of New Zealand, New Zealand’s central
bank.
Regulatory deposits are mandatory reserve deposits lodged with
local central banks in accordance with statutory requirements.
Return on average assets is the profit attributable to shareholders
of the Company, divided by average total assets.
Return on average ordinary shareholders’ equity is the profit
attributable to shareholders of the Company, divided by average
ordinary shareholders’ equity.
Risk weighted assets (RWA) are risk weighted according to each
asset’s inherent potential for default and what the likely losses would
be in the case of default. In the case of non-asset backed risks (i.e.
market and operational risk), RWA is determined by multiplying the
capital requirements for those risks by 12.5.
Settlement balances owed to/by ANZ represent financial assets
and/or liabilities which are in the course of being settled. These may
include trade dated assets and liabilities, vostro accounts and
securities settlement accounts.
Term Funding Facility (TFF) refers to three-year funding announced
by the RBA on 19 March 2020 and offered to ADIs in order to
support lending to Australian businesses at low cost. The TFF was
closed to drawdowns on 30 June 2021.
Term Lending Facility (TLF) refers to three to five-year funding
offered by the RBNZ between May 2020 and July 2021 to promote
lending to New Zealand businesses.
Derivative credit valuation adjustment - Over the life of a derivative
instrument, the Group uses a model to adjust fair value to take into
account the impact of counterparty credit quality. The methodology
calculates the present value of expected losses over the life of the
financial instrument as a function of probability of default, loss given
default, expected credit risk exposure at default and an asset
correlation factor. Impaired derivatives are also subject to a CVA.
Dividend payout ratio is the total ordinary dividend payment divided
by profit attributable to shareholders of the Company.
Fair value is an amount at which an asset or liability could be
exchanged between knowledgeable and willing parties in an arm’s
length transaction.
Funding for Lending Programme (FLP) refers to three-year funding
announced by the RBNZ in November 2020 and offered to New
Zealand banks, which aimed to lower the cost of borrowing for New
Zealand businesses and households.
Gross loans and advances (GLA) is made up of loans and
advances, capitalised brokerage and other origination costs less
unearned income.
Group means ANZ Group Holdings Limited and its subsidiaries.
IFRS means International Financial Reporting Standards.
Impaired assets are those financial assets where doubt exists as to
whether the full contractual amount will be received in a timely
manner, or where concessional terms have been provided because
of the financial difficulties of the customer.
Individually assessed allowance for expected credit losses is
assessed on a case-by-case basis for all individually managed
impaired assets taking into consideration factors such as the
realisable value of security (or other credit mitigants), the likely return
available upon liquidation or bankruptcy, legal uncertainties, estimated
costs involved in recovery, the market price of the exposure in
secondary markets and the amount and timing of expected receipts
and recoveries.
Interest rate risk in the banking book (IRRBB) relates to the
potential adverse impact of changes in market interest rates on the
Group’s future net interest income. The risk generally arises from:
1. Repricing and yield curve risk - the risk to earnings or market
value as a result of changes in the overall level of interest rates
and/or the relativity of these rates across the yield curve;
2. Basis risk - the risk to earnings or market value arising from
volatility in the interest margin applicable to banking book items;
and
3. Optionality risk - the risk to earnings or market value arising from
the existence of stand-alone or embedded options in banking
book items.
Level 1 in the context of APRA supervision, Australia and New
Zealand Banking Group Limited consolidated with certain approved
subsidiaries.
Level 2 in the context of APRA supervision, means consolidated ANZ
Bank Group, excluding insurance and funds management entities,
commercial non-financial entities and certain securitisation vehicles.
Level 3 in the context of APRA supervision, means ANZ Group, the
conglomerate group at the widest level.
1
2
shareholder.anz.com
ANZ Group Holdings Limited (ANZ) ABN 16 659 510 791