ANZ Group Holdings Ltd Oliver Wyman Report and APRA Court Enforceable Undertaking Transcript

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

Question: Matt Wilson - Jarden Australia Pty Ltd - Analyst : Thank you and good morning. Matthew Wilson, Jarden. Two questions if I may. Obviously now the outstanding matter remains with ASIC. Do you still think that will be resolved by mid-year? And do you think this report supports your defense? I've read much worse reviews in my time in this industry. The cases seem isolated and not systemic. And then secondly, just to confirm that the $1 billion, is it actually $1.4 billion given APRA multiplies the $1 billion by 12.5 and then applies your core equity tier one. So if my math is correct, you've got 31 basis points of excess capital to be used at a later date.

Question: Andrew Triggs - J.P. Morgan Securities Australia Ltd - Analyst : Thanks. Good morning. Paul, just in reference to your comments that additional resources won't be needed to address these issues and the comment in the release that there'd be no material impact on ANZ's cost outlook. Why is that still the case? Why not go harder? My observations to other banks that have been in similar situations have put in significant additional resources in place to address these matters once and for all. And is this attitude of sort of redirecting existing resources really not part of the problem that we're facing into today?

Question: Andrew Triggs - J.P. Morgan Securities Australia Ltd - Analyst : Okay. Thank you. And just in terms of the Board's response to the issues identified by APRA, Paul, are you satisfied that the composition of the Board has sufficient knowledge and expertise in banking to be on top of these issues?

Question: Brian Johnson - MST Financial - Analyst : Good morning. It's the author of that report, Paul. That's informative. Paul, just to be intrigued about two things. The Australian Financial Review has consistently been publishing reports about letters that were sent apparently to ANZ management. Can we just check, the letters were addressed to ANZ management, but were they actually -- did the Board actually see them? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 03, 2025 / NTS, ANZ.AX - ANZ Group Holdings Ltd Oliver Wyman Report and APRA Court Enforceable Undertaking And then the subset of that question as well is if the Boards meet concurrently, why don't we just have a bigger main Board at ANZ, so it's very transparent? There's no risk of being seen that actually have a subordinate kind of Board position.

Question: Brian Johnson - MST Financial - Analyst : Paul, I would love -- I've always thought bank Chairmen are a little bit like pixies. I know you exist, but I never see you. Paul, I would welcome that opportunity. Paul, just the other one.

Question: Brian Johnson - MST Financial - Analyst : Okay. Well, I actually used that the other day. But the point -- the other point I want to make is there's (technical difficulty) Oliver Wyman summary, there's this what I think is quite an ominous comment that they there seems to be a probability that there could be similar failings in the retail bank. I just like to clarify, is all of this commentary that we've seen today that you can re-divert expenses, is that premised on what you know? But if there's a problem found in the retail bank, which they say there's a high probability that you could see the same thing, could that actually see a change in the statements?

Question: Ed Henning - CLSA Australia Pty Ltd - Analyst : Hi. Thanks for taking my questions. Just a little bit more to understand on the cost. You talked about the run rate on the systems -- or the systems you're doing is in the run rate. Can you just talk a little bit more about where you're spending the money? Is it just on people that are needed for the projects? And then just beyond that, you also mentioned that you're going to redirect spend from programs that are rolled off. Where was that spend going to go before you got this report and needed to upskill on for the remediation stuff?

Question: Ed Henning - CLSA Australia Pty Ltd - Analyst : No. That's great. Thank you. And then just to clarify, you guys anticipate that the program of work will take two to three years to kind of come to completion?

Question: Ed Henning - CLSA Australia Pty Ltd - Analyst : Okay. And so just to clarify that is like it might take maybe one to two years to implement and then maybe another year to hopefully run the program. We'll continue to run the program and then hopefully have the regulators' approval is kind of how to think about it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 03, 2025 / NTS, ANZ.AX - ANZ Group Holdings Ltd Oliver Wyman Report and APRA Court Enforceable Undertaking