Full Year 2020 Australia and New Zealand Banking Group Ltd Earnings Presentation Transcript

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

Question: Victor German - Macquarie Research - Analyst : Can you hear me?

Question: Victor German - Macquarie Research - Analyst : Yes, great. I just had a couple of questions, and I could really appreciate your earlier comment around difficulties giving guidance. But I just wanted to see if perhaps Michelle can just elaborate a little bit on margins outlook. And in particular, I was hoping to focus on 3 areas. One, we've seen the reduction in institutional loans. Obviously, this half, Institutional was a much lower-margin business relative to the overall portfolio. Just be interested to hear when that reduction has occurred and what impact on margins is it going to have. The second part of the margin question is with respect to mortgages. There's obviously a lot of competition. You highlighted front to back book issue. But would it be fair for us to assume that incremental volume growth that you're getting in mortgages is actually incrementally positive or negative to your margins? And the last bit on that margin question is the impact of -- the lower rate, you've given us 3 basis point impact. Is that pretty much the rest of -- has -- the rest of the lower rate impact has washed through, and it's just replicating the collar that's left? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2020 / 11:00PM, ANZ.AX - Full Year 2020 Australia and New Zealand Banking Group Ltd Earnings Presentation

Question: Victor German - Macquarie Research - Analyst : Yes. It sort of -- it conceptually does, but I'm just sort of specifically wondering, with respect to that institutional margin and the fact that we've seen a reasonably meaningful reduction in volume, your institutional margins based on the disclosure is about 50 basis points lower than the group margin. Am I right to assume that, that incrementally will be positive for margins in the first half '21?

Question: Victor German - Macquarie Research - Analyst : Completely appreciate that there is a lot of competition. But I mean would it be fair to assume that the incremental mortgages you're writing today are better than 1.5?

Question: Victor German - Macquarie Research - Analyst : And Shayne, you mentioned a few times around when you were answering on the cost side, that you could easily sort of achieve your medium-term guidance by reducing investment spend. I'm assuming -- and I don't want to put words in your mouth. But I'm assuming that's not kind of the intent sort of, of you ultimately achieving that $8 billion target. I'm just wondering kind of as you look through in the next couple of years, where do you think the sort of the sustainable long-term investment spend is likely to settle for you guys?