ANZ Group Holdings Ltd Investor Briefing Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : If I take a step back and think about the Markets business as a whole, we've been thinking about this business as a $2 billion roughly revenue stream now for probably 4 years or maybe even longer than that, I think this is our first guidance that's provided. Could you talk about the growth in the franchise, how much you're focused on it and this is a growth engine, should we be thinking that, that $2 billion is going to grow? Or is this just an ongoing lower capital intensive, higher ROE that builds a $2 billion revenue stream over the next couple of years?

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : And can I just have a follow-up on that second part because sometimes there are great trading opportunities. For example, you had a very strong first quarter in that December quarter that's just been completed. And you saw the U.S. 10-year rally over 100 basis points during that period. When do you see a good opportunity like that, are you ever prepared to increase the trade VaR to some extent to make a bit of revenue? Or are you going to sit back and just let the client activity drive this?

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : Do you want the traded number increase when you see a -- or the balance sheet side tick up when there's trading opportunity like this?

Question: Victor German - Macquarie Research - Analyst : My question was sort of along similar lines to Richard and it's slightly different though. So Mark, I think in your opening comments, you talked about the changes in institutional bank that we've obviously served over the last couple of years, 5 years or so that you've made and ultimately, it's a stronger business, which we can see and one of those benefits obviously came from improved risk profile and lower impairment charges, but looking at your pre-provision line and looking at return on risk-weighted assets at a pre-provision level, the real step-up in returns as Richard was alluding to earlier, came through in 2023 when rates went up. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 22, 2024 / 12:15AM, ANZ.AX - ANZ Group Holdings Ltd Investor Briefing So if I look at sort of 5 years prior to that, the average return on risk-weighted assets is 1.5% and it was sort of moving up and down depending how strong market income work, but it hasn't moved up meaningfully and then we see a step up in 2023. As we're looking sort of (inaudible) to the medium term, are you -- what are your observations in terms of the return profile for the business going forward? Do you think that -- it's more around opportunities managing sort of risk-weighted assets while maintaining or growing pre-provision earnings at a slower rate? Or do you (inaudible) to continue to grow? Or is it ongoing benefits through the impairment line that you think will deliver better long-term returns.

Question: Victor German - Macquarie Research - Analyst : I mean I think the point around (inaudible) is also one of them coming back to my numbers, you've got about a 30 basis point benefit from that, but there was investor benefits (inaudible) based to your thoughts whether you see a risk of that being competed away given that everyone effectively had that step up, and therefore, they could potentially compete more aggressively for lending. It doesn't sound like that's the case that you're seeing currently that people have kind of (inaudible) assets.