Full Year 2023 ANZ Group Holdings 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 : I have a question on the Institutional business. It's now the biggest division, and we saw in the fourth quarter, the margin and the whole half and also the fourth quarter, the margins continue to expand. Shayne, in the past, we've talked a lot about this and the rate benefit in that business. And you highlighted it wasn't the absolute level of rates. It was more of the shape of the yield curve. And in recent times, it looks like we're hopefully getting towards the top of the global interest rate cycle, the U.S. tenure -- U.S. yield curve is inverted, Australia is pretty flat. So do you think the impact from here of rates and the outlook for the Institutional margin is probably peaking at current levels?

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : Can I just ask another quick one. You said that trials for ANZ Plus mortgages are just going through now. When do you expect that to be rolled out more generally? And when you do the rollout, is it effectively going to be all new mortgages are written on the new platform, which is a lot cheaper to operate for a marginal mortgage going forward?

Question: Victor German - Macquarie Research - Analyst : Firstly, I just wanted to follow up on John's question, maybe a slightly different angle. Given Institutional Bank has a smaller proportion of its deposits that are hedged, presumably, it means that the benefit of higher rates come through quicker for those business? And given where rates are at the moment, it looks like replication portfolio and capital should continue to provide 7, 8 basis point tailwind to your margin in 2024? And as a result, particularly in the context of what you said earlier about diminished front to back book gap on mortgages. Do you continue to expect Institutional margins to outperform your other portfolios again in 2024?

Question: Victor German - Macquarie Research - Analyst : But given -- I appreciate that. But given those benefits are still coming through and as you said, they predominantly benefit your retail bank and commercial bank, that's the tailwind that those businesses have with Institutional doesn't have?

Question: Victor German - Macquarie Research - Analyst : I'm just kind of putting that into context kind of how to -- what does that mean for 2024 margins across different divisions? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2023 / 2:00AM, ANZ.AX - Full Year 2023 ANZ Group Holdings Ltd Earnings Presentation

Question: Victor German - Macquarie Research - Analyst : Yes. No, thank you. I might follow up with you later on that. And my second question also on costs. And thank you very much for providing additional color on your cost considerations for next year. But I think in the presentation, you suggested that you're expecting to see better -- or slight improvement on cost performance of 5% that you've seen in 2023. What's the base that we should be looking at? Because obviously, this year, you had $170 million of restructuring charges, about $250 million of transaction remediation costs. When we're thinking about your growth in your costs going into next year, are we thinking about $10.1 billion being your base? Or should we be thinking of $9.7 million and growing from that number?