Full Year 2021 Australia and New Zealand Banking Group Ltd Earnings Presentation Transcript

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

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : Yes. And probably staying a bit more on that Institutional side. You talked a lot about the benefits from the steepening yield curve and potentially rate rises. So could you just elaborate on that, just the leverage that you get across the Institutional side in the market that we have the volatility that's been going on in recent times? Shouldn't we be a pretty good environment for markets for the next little while? And also for the rate rises, do we actually need to see effectively the RBA rate rise kick in before you really start to get the leverage through widening spreads as well? Can you talk about that leverage to rates?

Question: Victor German - Macquarie Research - Analyst : Shayne, I'm interested just to go back to mortgages and expenses actually. I was a little bit surprised with the comments from Farhan and Mark that you underestimated growth in the market, and it would make sense if you grew by 4%, 5% and the market grew at 8%. But surely, when you're 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 27, 2021 / 11:00PM, ANZ.AX - Full Year 2021 Australia and New Zealand Banking Group Ltd Earnings Presentation not growing, you're going backwards. It's not just underestimating the market. So just be interested in a little bit more color in terms of what's going on. And why do you think your mortgage processing is less scalable than your peers? So that's question one. And then second question on expenses. I guess, Farhan, if you could perhaps maybe provide us a little bit more color. I mean you've mentioned that next year, you expect expenses to be up. If we look at your second half expense rate, you're effectively averaging $8.9 billion based on second half number. I appreciate there's high investment spend in there, but just be interested in kind of how we should reach that $8.9 billion number to $8.6 billion base and where you expect those sort of potential reduction in spending to come from, particularly in the context of presumably, you will need to continue to invest to fix some of the mortgage issues that we spoke about earlier. And lastly, I'll take Jill on her offer of bringing in her favorite club. If we look at the favorite player, there's some speculation that might -- they might not be coming back and retiring. Shayne, how committed are you to actually delivering on that $8 billion target in 2023? It's not that far away. Are you actually thinking about delivering that? Or are you really putting together sort of structure in place for someone else to take that and deliver on that number?

Question: Victor German - Macquarie Research - Analyst : Yes. And sort of related to this sort of -- I mean out of that investment, the manual -- both manual and automated stuff, I mean how much of that has already been kind of captured in your second half cost base versus what's carrying through into the next half?

Question: Victor German - Macquarie Research - Analyst : So annualizing second half cost base is overly conservative, it sounds like. If I add up everything you say, annualized cost base of $8.9 billion, it sounds like it's too high.