Australia and New Zealand Banking Group Limited
ABN 11 005 357 522
Half Year
31 March 2024
Consolidated Financial Report
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CONTENTS | Page |
Directors' Report | 3 |
Condensed Consolidated Income Statement | 7 |
Condensed Consolidated Statement of Comprehensive Income | 8 |
Condensed Consolidated Balance Sheet | 9 |
Condensed Consolidated Cash Flow Statement | 10 |
Condensed Consolidated Statement of Changes in Equity | 11 |
Notes to Condensed Consolidated Financial Statements | 12 |
Directors' Declaration | 46 |
Auditor's Review Report and Independence Declaration | 47 |
This Consolidated Financial Report has been prepared for Australia and New Zealand Banking Group Limited (ANZBGL, Company, us, we, or our) and its subsidiaries (Group).
All amounts are in Australian dollars unless otherwise stated. The Group has a formally constituted Audit Committee of the Board of Directors. The Condensed Consolidated Financial Statements were approved by resolution of the Board of Directors on 6 May 2024.
DISCLAIMER & IMPORTANT NOTICE:
The material in this Consolidated Financial Report contains general background information about the Group's activities current as at 6 May 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.
This Consolidated Financial 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, specific provisions and risk management practices. When used in the Consolidated Financial Report, the words 'forecast', 'estimate', '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. 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. Forward-looking statements constitute 'forward-looking statements' for the purposes of the United States Private Securities Litigation Reform Act of 1995. The Group does not undertake 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.
2
DIRECTORS' REPORT
The Directors present their report for Australia and New Zealand Banking Group Limited (the Company) for the half year ended 31 March 2024, together with the Condensed Consolidated Financial Statements of the Group.
Directors
The names of the Directors of the Company who held office during and since the end of the half year are:
Mr PD O'Sullivan | Chairman | |||||||
Mr SC Elliott | Director and Chief Executive Officer | |||||||
Ms IR Atlas, AO | Director, ceased 21 December 2023 | |||||||
Mr JP Cincotta | Director, appointed 15 February 2024 | |||||||
Mr RBM Gibb | Director, appointed 15 February 2024 | |||||||
Ms SJ Halton, AO PSM | Director | |||||||
Mr GK Hodges | Director | |||||||
Rt Hon Sir JP Key, GNZM AC | Director, ceased 14 March 2024 | |||||||
Ms HS Kramer | Director | |||||||
Mr JT Macfarlane | Director, ceased 21 December 2023 | |||||||
Ms CE O'Reilly | Director | |||||||
Mr JP Smith | Director | |||||||
Mr SA St John | Director, appointed 25 March 2024 | |||||||
Performance overview | ||||||||
Condensed Consolidated Income Statement | Half Year | Movement | ||||||
Mar 24 | Sep 23 | Mar 23 | Mar 24 | Mar 24 | ||||
$M | $M | $M | v. Sep 23 | v. Mar 23 | ||||
Net interest income | 7,900 | 8,071 | 8,497 | -2% | -7% | |||
Other operating income | 2,248 | 2,248 | 1,662 | 0% | 35% | |||
Operating income | 10,148 | 10,319 | 10,159 | -2% | 0% | |||
Operating expenses | (5,179) | (5,101) | (4,986) | 2% | 4% | |||
Profit before credit impairment and income tax | 4,969 | 5,218 | 5,173 | -5% | -4% | |||
Credit impairment (charge)/release | (70) | (112) | (133) | -38% | -47% | |||
Profit before income tax | 4,899 | 5,106 | 5,040 | -4% | -3% | |||
Income tax expense | (1,435) | (1,495) | (1,450) | -4% | -1% | |||
Profit for the period | 3,464 | 3,611 | 3,590 | -4% | -4% | |||
March 2024 v March 2023
- Net interest income decreased $597 million (7%) driven by a 20 bps decrease in net interest margin, partially offset by a $43.0 billion increase in average interest earning assets. The net interest margin decreased from 175 bps to 155 bps driven by pricing competition in the Australia Retail, Australia Commercial and New Zealand divisions, a decrease in Markets net interest income driven by higher funding costs, primarily on commodity assets, where the related revenues are recognised as Other operating income, unfavourable asset and funding mix, and higher wholesale funding rates. This was partially offset by higher earnings on capital and replicating deposits, and favourable deposit margins. The increase in average interest earning assets was driven by higher average trading assets and investment securities, and net loans and advances.
- Other operating income increased $586 million (35%) driven by higher net foreign exchange earnings and other financial instruments income
($522 million), loss on reclassification of data centres in Australia to held for sale in March 2023 half ($43 million), higher fee and commission income ($26 million), and recycling of foreign currency translation reserves (FCTR) from other comprehensive income to profit or loss on dissolution of several international entities ($20 million). This was partially offset by a loss on partial disposal of investment in AMMB Holdings Berhad (AmBank) ($21 million). - Operating expenses increased $193 million (4%) driven by higher personnel expenses ($156 million), higher restructuring expenses ($87 million), and higher technology expenses ($55 million), partially offset by lower other expenses ($100 million) benefitting from productivity initiatives.
- Credit impairment charge decreased $63 million (47%) driven by a decrease in the collectively assessed credit impairment charge, partially offset by an increase in the individually assessed credit impairment charge due to lower write-backs.
March 2024 v September 2023
- Net interest income decreased $171 million (2%) driven by a 10 bps decrease in net interest margin, partially offset by a $38.4 billion increase in average interest earning assets. The net interest margin decreased from 165 bps to 155 bps driven by a decrease in Markets net interest income driven by higher funding costs, primarily on commodity assets where the related revenues are recognised as Other operating income, pricing competition in the Australia Retail and Australia Commercial divisions, and higher wholesale funding rates. This was partially offset by higher earnings on capital and replicating deposits. The increase in average interest earning assets was driven by higher average trading assets and investment securities, and net loans and advances.
- Other operating income remained flat as higher net foreign exchange earnings and other financial instruments income ($167 million) was offset by lower net fee and commission income ($46 million), a decrease in share of associates' profit ($29 million), an adjustment to the gain on sale relating
3
DIRECTORS' REPORT
to the completed UDC Finance divestment in the September 2023 half ($23 million), lower gain from recycling of FCTR from other comprehensive income to profit or loss on dissolution of a number of international entities ($23 million), and a loss on partial disposal of investment in AmBank ($21 million).
- Operating expenses increased $78 million (2%) driven by higher personnel expenses ($192 million), higher technology expenses ($31 million) and higher restructuring expenses ($26 million), partially offset by lower other expenses ($168 million) benefitting from productivity initiatives and the Compensation Scheme of Last Resort levy incurred in the September 2023 half.
- Credit impairment charge decreased $42 million (38%) driven by a decrease in the individually assessed credit impairment charge due to higher write-backs and lower impairment, and a decrease in the collectively assessed credit impairment charge.
Condensed Consolidated Balance Sheet
As at | Movement | ||||||
Assets | Mar 24 | Sep 23 | Mar 23 | Mar 24 | Mar 24 | ||
$B | $B | $B | v. Sep 23 | v. Mar 23 | |||
Cash / Settlement balances owed to ANZ / Collateral paid | 149.7 | 186.1 | 225.1 | -20% | -33% | ||
Trading assets and investment securities | 160.0 | 134.0 | 133.1 | 19% | 20% | ||
Derivative financial instruments | 47.5 | 60.4 | 45.6 | -21% | 4% | ||
Net loans and advances | 715.8 | 707.7 | 690.7 | 1% | 4% | ||
Other | 17.1 | 17.9 | 17.1 | -4% | 0% | ||
Total assets | 1,090.1 | 1,106.1 | 1,111.6 | -1% | -2% | ||
Liabilities | |||||||
Settlement balances owed by ANZ / Collateral received | 22.4 | 29.7 | 31.0 | -25% | -28% | ||
Deposits and other borrowings | 807.2 | 815.2 | 843.1 | -1% | -4% | ||
Derivative financial instruments | 42.7 | 57.5 | 46.2 | -26% | -8% | ||
Debt issuances | 127.1 | 116.0 | 106.2 | 10% | 20% | ||
Other | 20.5 | 18.6 | 16.5 | 10% | 24% | ||
Total liabilities | 1,019.9 | 1,037.0 | 1,043.0 | -2% | -2% | ||
Total equity | 70.2 | 69.1 | 68.6 | 2% | 2% | ||
March 2024 v March 2023
- Cash / Settlement balances owed to ANZ / Collateral paid decreased $75.4 billion (33%) driven by decreases in balances with central banks, overnight interbank deposits and settlement balances owed to ANZ.
- Trading assets and investment securities increased $26.9 billion (20%) driven by increases in short term and semi-government bonds.
- Net loans and advances increased $25.1 billion (4%) driven by home loan growth and higher business lending, partially offset by impact of foreign currency translation movements.
- Settlement balances owed by ANZ / Collateral received decreased $8.6 billion (28%) driven by a decrease in cash clearing accounts.
- Deposits and other borrowings decreased $35.9 billion (4%) driven by decreases in deposits from banks and repurchase agreements, customer deposits, and certificates of deposit. This was partially offset by an increase in commercial paper and other borrowings and impact of foreign currency translation movements.
- Debt issuances increased $20.9 billion (20%) driven by issue of new senior and subordinated debt, including ANZ Capital Notes 9, partially offset by the redemption of ANZ Capital Notes 4.
March 2024 v September 2023
- Cash / Settlement balances owed to ANZ / Collateral paid decreased $36.4 billion (20%) driven by decreases in balances with central banks, settlement balances owed to ANZ, overnight interbank deposits, reverse repurchase agreements, and the impact of foreign currency translation.
- Trading assets and investment securities increased $26.0 billion (19%) driven by an increase in short term and semi-government bonds.
- Derivative financial assets and liabilities decreased $12.9 billion (21%) and $14.8 billion (26%) respectively driven by market rate movements, primarily decreases in USD swap rates and the depreciation of certain major currencies against the USD.
- Net loans and advances increased $8.1 billion (1%) driven by home loan growth, partially offset by lower business lending and the impact of foreign currency translation movements.
- Settlement balances owed by ANZ / Collateral received decreased $7.3 billion (25%) driven by decreases in cash clearing accounts and lower collateral received.
- Deposits and other borrowings decreased $8.0 billion (1%) driven by decreases in deposits from banks and repurchase agreements, customer deposits, certificates of deposit, and the impact of foreign currency translation movements. This was partially offset by increases in commercial paper and other borrowings.
- Debt issuances increased $11.1 billion (10%) driven by the issue of new senior and subordinated debt, including ANZ Capital Notes 9, partially offset by the redemption of ANZ Capital Notes 4.
4
DIRECTORS' REPORT
Liquidity | Half Year Average | Movement | |||||
Mar 24 | Mar 24 | ||||||
Mar 24 | Sep 23 | Mar 23 | v. Sep 23 | v. Mar 23 | |||
Total liquid assets ($B) | 281.7 | 270.8 | 265.9 | 4% | 6% | ||
Liquidity Coverage Ratio (%) | 134% | 132% | 128% | 2% | 6% | ||
The Group holds a portfolio of high quality unencumbered liquid assets in order to protect the 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 Liquidity Coverage Ratio (LCR):
- Highest-qualityliquid 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-qualityliquid assets (HQLA2): 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 Reserve Bank of New Zealand (RBNZ).
The 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 Board. The LCR remained above the regulatory minimum thresholds throughout this period.
Funding | As at | Movement | |||||
Mar 24 | Sep 23 | Mar 23 | Mar 24 | Mar 24 | |||
$B | $B | $B | v. Sep 23 | v. Mar 23 | |||
Total customer liabilities (funding) | 652.1 | 659.1 | 661.3 | -1% | -1% | ||
Wholesale funding | 319.7 | 316.8 | 335.6 | 1% | -5% | ||
Shareholders' equity | 70.2 | 69.1 | 68.6 | 2% | 2% | ||
Total funding | 1,042.0 | 1,045.0 | 1,065.5 | 0% | -2% | ||
Net Stable Funding Ratio (%) | 118% | 116% | 119% | 2% | -1% | ||
The Group targets a diversified funding base, avoiding undue concentration by investor type, maturity, market source and currency.
During the March 2024 half, the ANZ Bank Group issued $21.2 billion of term wholesale funding1, $1.7 billion of APRA compliant Additional Tier 1 Capital and $0.3 billion of RBNZ compliant Additional Tier 1 Capital.
Net Stable Funding Ratio remained above the regulatory minimum of 100% throughout this period.
1. Excludes unsubordinated debt with shorter tenors (such as 12 to 18 months).
Capital Management (Level 2) | As at | Movement | |||||||
Mar 24 | Sep 23 | Mar 23 | Mar 24 | Mar 24 | |||||
v. Sep 23 | v. Mar 23 | ||||||||
Common Equity Tier 1 | 13.5% | ||||||||
- | APRA | 13.3% | 13.2% | ||||||
- | International Comparable | 19.7% | 19.7% | 19.4% | |||||
Credit risk weighted assets ($B) | 348.4 | 349.0 | 345.3 | 0% | 1% | ||||
Total risk weighted assets ($B) | 432.8 | 433.3 | 435.5 | 0% | -1% | ||||
APRA Leverage Ratio | 5.4% | 5.4% | 5.3% | ||||||
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 the Bank.
The Group's APRA Common Equity Tier 1 ratio was 13.5% at 31 March 2024, exceeding APRA's minimum requirements. The increase of 16 bps during the March 2024 half was driven by current period earnings, proceeds from partial disposal of investment in AmBank, partially offset by the impact of dividends paid during the period, higher underlying risk weighted assets usage, and capital deduction and other impacts.
At 31 March 2024, the Group's APRA Leverage Ratio was 5.4% which is above the 3.5% proposed minimum for Internal Ratings Based Authorised Deposit-taking Institution, which includes ANZ.
Dividend
ANZBGL paid a 2023 final dividend of $2,771 million to its intermediate holding company, ANZ BH Pty Ltd, a wholly owned subsidiary of ANZGHL, during the March 2024 half.
On 6 May 2024, the Directors proposed a 2024 interim dividend of $2,496 million be paid on 1 July 2024, to ANZ BH Pty Ltd.
5
DIRECTORS' REPORT
Lead auditor's independence declaration
The lead auditor's independence declaration given under section 307C of the Corporations Act 2001 (as amended) is set out on page 48 which forms part of this report.
Rounding of amounts
The amounts contained in this Directors' Report and the accompanying Condensed Consolidated Financial Statements have been rounded to the nearest million dollars, except where otherwise indicated, as permitted by ASIC Corporations Instrument 2016/191.
Significant events since balance date
There have been no significant events from 31 March 2024 to the date of signing this report.
Signed in accordance with a resolution of the Directors.
Paul D O'Sullivan | Shayne C Elliott |
Chairman | Managing Director |
6 May 2024 |
6
CONDENSED CONSOLIDATED INCOME STATEMENT
Australia and New Zealand Banking Group Limited
Half Year | Movement | ||||||
Mar 24 | Sep 23 | Mar 23 | Mar 24 | Mar 24 | |||
Note | $M | $M | $M | v. Sep 23 | v. Mar 23 | ||
Interest income | 29,832 | 27,089 | 22,840 | 10% | 31% | ||
Interest expense | (21,932) | (19,018) | (14,343) | 15% | 53% | ||
Net interest income | 2 | 7,900 | 8,071 | 8,497 | -2% | -7% | |
Other operating income | 2 | 2,104 | 2,070 | 1,507 | 2% | 40% | |
Net income from insurance business | 2 | 48 | 53 | 55 | -9% | -13% | |
Share of associates' profit/(loss) | 2, 15 | 96 | 125 | 100 | -23% | -4% | |
Operating income | 10,148 | 10,319 | 10,159 | -2% | 0% | ||
Operating expenses | 3 | (5,179) | (5,101) | (4,986) | 2% | 4% | |
Profit before credit impairment and income tax | 4,969 | 5,218 | 5,173 | -5% | -4% | ||
Credit impairment (charge)/release | 8 | (70) | (112) | (133) | -38% | -47% | |
Profit before income tax | 4,899 | 5,106 | 5,040 | -4% | -3% | ||
Income tax expense | 4 | (1,435) | (1,495) | (1,450) | -4% | -1% | |
Profit for the period | 3,464 | 3,611 | 3,590 | -4% | -4% | ||
Comprising: | |||||||
Profit attributable to shareholders of the Company | 3,450 | 3,597 | 3,576 | -4% | -4% | ||
Profit attributable to non-controlling interests | 13 | 14 | 14 | 14 | 0% | 0% | |
The notes appearing on pages 12 to 45 form an integral part of the Condensed Consolidated Financial Statements.
7
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Australia and New Zealand Banking Group Limited
Half Year | Movement | |||||
Mar 24 | Sep 23 | Mar 23 | Mar 24 | Mar 24 | ||
$M | $M | $M | v. Sep 23 | v. Mar 23 | ||
Profit for the period | 3,464 | 3,611 | 3,590 | -4% | -4% | |
Other comprehensive income | ||||||
Items that will not be reclassified subsequently to profit or loss | ||||||
Investment securities - equity securities at FVOCI | 20 | (80) | 50 | large | -60% | |
Other reserve movements1 | (59) | (48) | (32) | 23% | 84% | |
Items that may be reclassified subsequently to profit or loss | ||||||
Foreign currency translation reserve | (378) | (74) | 792 | large | large | |
Cash flow hedge reserve | 1,075 | (832) | 1,067 | large | 1% | |
Other reserve movements | (128) | (42) | 6 | large | large | |
Income tax attributable to the above items | (273) | 279 | (301) | large | -9% | |
Share of associates' other comprehensive income2 | (17) | 23 | 8 | large | large | |
Total comprehensive income for the period | 3,704 | 2,837 | 5,180 | 31% | -28% | |
Comprising total comprehensive income attributable to: | ||||||
Shareholders of the Company | 3,701 | 2,826 | 5,136 | 31% | -28% | |
Non-controlling interests1 | 3 | 11 | 44 | -73% | -93% | |
- Includes foreign currency translation differences attributable to non-controlling interest of -$11 million (Sep 23 half: -$3 million; Mar 23 half: $30 million).
- Share of associates' other comprehensive income includes:
Mar 24 half | Sep 23 half | Mar 23 half | |
$M | $M | $M | |
FVOCI reserve gain/(loss) | (4) | 23 | 2 |
Defined benefits gain/(loss) | (13) | - | 6 |
Total | (17) | 23 | 8 |
The notes appearing on pages 12 to 45 form an integral part of the Condensed Consolidated Financial Statements.
8
CONDENSED CONSOLIDATED BALANCE SHEET
Australia and New Zealand Banking Group Limited
As at | Movement | ||||||
Mar 24 | Sep 23 | Mar 23 | Mar 24 | Mar 24 | |||
Assets | Note | $M | $M | $M | v. Sep 23 | v. Mar 23 | |
Cash and cash equivalents1 | 137,696 | 168,154 | 208,800 | -18% | -34% | ||
Settlement balances owed to ANZ | 3,809 | 9,349 | 7,020 | -59% | -46% | ||
Collateral paid | 8,241 | 8,558 | 9,245 | -4% | -11% | ||
Trading assets | 42,442 | 37,004 | 39,611 | 15% | 7% | ||
Derivative financial instruments | 47,481 | 60,406 | 45,614 | -21% | 4% | ||
Investment securities | 117,618 | 96,969 | 93,505 | 21% | 26% | ||
Net loans and advances | 7 | 715,821 | 707,694 | 690,737 | 1% | 4% | |
Regulatory deposits | 696 | 646 | 646 | 8% | 8% | ||
Investments in associates | 1,405 | 2,321 | 2,214 | -39% | -37% | ||
Current tax assets | 45 | 37 | 49 | 22% | -8% | ||
Deferred tax assets | 3,199 | 3,398 | 3,026 | -6% | 6% | ||
Goodwill and other intangible assets | 3,907 | 3,961 | 3,933 | -1% | -1% | ||
Premises and equipment | 2,293 | 2,360 | 2,613 | -3% | -12% | ||
Other assets | 5,485 | 5,207 | 4,629 | 5% | 18% | ||
Total assets | 1,090,138 | 1,106,064 | 1,111,642 | -1% | -2% | ||
Liabilities | |||||||
Settlement balances owed by ANZ | 15,026 | 19,267 | 23,010 | -22% | -35% | ||
Collateral received | 7,409 | 10,382 | 8,002 | -29% | -7% | ||
Deposits and other borrowings | 9 | 807,189 | 815,203 | 843,098 | -1% | -4% | |
Derivative financial instruments | 42,728 | 57,482 | 46,154 | -26% | -7% | ||
Current tax liabilities | 195 | 305 | 342 | -36% | -43% | ||
Deferred tax liabilities | 59 | 60 | 58 | -2% | 2% | ||
Payables and other liabilities | 17,982 | 15,984 | 13,941 | 13% | 29% | ||
Employee entitlements | 579 | 568 | 592 | 2% | -2% | ||
Other provisions | 1,660 | 1,714 | 1,692 | -3% | -2% | ||
Debt issuances | 10 | 127,109 | 116,014 | 106,157 | 10% | 20% | |
Total liabilities | 1,019,936 | 1,036,979 | 1,043,046 | -2% | -2% | ||
Net assets | 70,202 | 69,085 | 68,596 | 2% | 2% | ||
Shareholders' equity | |||||||
Ordinary share capital | 13 | 29,033 | 29,082 | 29,054 | 0% | 0% | |
Reserves | 13 | (1,510) | (1,796) | (1,065) | -16% | 42% | |
Retained earnings | 13 | 41,911 | 41,277 | 40,082 | 2% | 5% | |
Share capital and reserves attributable to shareholders of the Company | 69,434 | 68,563 | 68,071 | 1% | 2% | ||
Non-controlling interests | 13 | 768 | 522 | 525 | 47% | 46% | |
Total shareholders' equity | 70,202 | 69,085 | 68,596 | 2% | 2% | ||
1. Includes Settlement balances owed to ANZ that meet the definition of Cash and cash equivalents.
The notes appearing on pages 12 to 45 form an integral part of the Condensed Consolidated Financial Statements.
9
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Australia and New Zealand Banking Group Limited
Half Year | |||
Mar 24 | Sep 23 | Mar 23 | |
$M | $M | $M | |
Profit after income tax | 3,464 | 3,611 | 3,590 |
Adjustments to reconcile to net cash flow provided by/(used in) operating activities: | |||
Allowance for expected credit losses | 70 | 112 | 133 |
Depreciation and amortisation | 456 | 463 | 478 |
Loss on reclassification of data centres to held for sale | - | - | 43 |
Net derivatives/foreign exchange adjustment | 858 | (1,912) | 5,417 |
(Gain)/loss on sale from divestments | 21 | (29) | - |
Other non-cash movements1 | (22) | (86) | (12) |
Net (increase)/decrease in operating assets: | |||
Collateral paid | 262 | 958 | 3,185 |
Trading assets2 | (20) | 384 | (6,272) |
Net loans and advances1 | (10,665) | (16,300) | (11,989) |
Other assets1 | (591) | (499) | (1,226) |
Net increase/(decrease) in operating liabilities: | |||
Deposits and other borrowings | (4,532) | (19,833) | 41,699 |
Settlement balances owed by ANZ | (4,178) | (3,775) | 9,053 |
Collateral received | (2,897) | 2,044 | (7,892) |
Other liabilities2 | 2,196 | 1,926 | 2,924 |
Total adjustments | (19,042) | (36,547) | 35,541 |
Net cash (used in)/provided by operating activities3 | (15,578) | (32,936) | 39,131 |
Cash flows from investing activities | |||
Investment securities assets: | |||
Purchases | (43,900) | (38,480) | (13,494) |
Proceeds from sale or maturity | 22,996 | 35,969 | 5,432 |
Proceeds from divestments, net of cash disposed | 668 | 558 | 577 |
Net investments in other assets | (451) | (254) | (350) |
Net cash (used in)/provided by investing activities | (20,687) | (2,207) | (7,835) |
Cash flows from financing activities | |||
Deposits and other borrowings (repaid) / drawn down | (27) | (12,042) | 937 |
Debt issuances:4 | |||
Issue proceeds | 26,240 | 19,141 | 25,041 |
Redemptions | (16,639) | (9,296) | (14,689) |
Dividends paid5.6 | (2,784) | (2,401) | (2,299) |
Other equity distribution7 | (126) | (2) | (19) |
Repayment of lease liabilities | (164) | (181) | (156) |
ANZ Bank New Zealand Perpetual Preference Shares | 252 | - | - |
Net cash (used in)/provided by financing activities | 6,752 | (4,781) | 8,815 |
Net increase/(decrease) in cash and cash equivalents | (29,513) | (39,924) | 40,111 |
Cash and cash equivalents at beginning of period | 168,154 | 208,800 | 168,132 |
Effects of exchange rate changes on cash and cash equivalents | (945) | (722) | 557 |
Cash and cash equivalents at end of period | 137,696 | 168,154 | 208,800 |
- Certain items were reclassified from Other non-cash movements to Net loans and advances and Other assets in the September 2023 half to better reflect the net movement in operating assets. Comparatives have been restated (Mar 23 half: reduction to Other non-cash movements of $751 million, an increase in Net loans and advances of $112 million, and an increase in Other assets of $639 million).
- 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 (Sep 23 half: reduction to Trading assets and an increase in Other liabilities of $1,866 million; Mar 23 half: reduction to Trading assets and an increase to Other liabilities of $3,999 million).
-
Net cash (used in)/provided by operating activities includes interest received of $29,361 million (Sep 23 half: $26,266 million Mar 23 half: $22,079 million), interest paid of $21,287 million
(Sep 23 half: $17,990 million; Mar 23 half: $12,717 million), and income taxes paid of $1,779 million (Sep 23 half: $1,674 million; Mar 23 half: $1,827 million). - Non-cashchanges in debt issuances include a loss of $1,494 million (Sep 23 half: $12 million loss; Mar 23 half: $2,072 million loss) from unrealised movements primarily due to fair value hedge adjustments and foreign exchange differences.
- Cash outflow for shares purchased to satisfy the dividend reinvestment plan in the March 2023 half are classified in dividends paid.
- March 2023 half Includes $320 million cash outflow as part of the special dividend to the Group's parent entity, ANZ BH Pty Ltd.
- Represents funding of on market purchases of ANZGHL ordinary shares for employee share and option plans.
The notes appearing on pages 12 to 45 form an integral part of the Condensed Consolidated Financial Statements.
10
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ANZ - Australia & New Zealand Banking Group Ltd. published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 23:54:09 UTC.