Full Year 2025 ANZ Group Holdings Ltd Earnings Presentation Transcript

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

Question: Brendan Sproules - Goldman Sachs Group Inc - Analyst : Good morning. I have a couple of questions on the institutional division performance and what we can expect looking forward. You made some interesting comments here around how you see the structure of that revenue growing in the future with, not so much a focus on lending, but more a focus on deposit collection and markets. But just looking at, Page 58 of the results. It's been quite a flat revenue environment with falling NimMs. So my two questions are, is the competitive nature and the impact of falling rates in some of these markets likely to impact revenue in 2026 and then in markets which seems to be running at around the long-term average, whether there's opportunities emerging in 2026 for you to grow markets revenue above average.

Question: Brendan Sproules - Goldman Sachs Group Inc - Analyst : Thank you.

Question: Thomas Strong - Citi Infrastructure Investments LLC - Analyst : Oh good morning and thanks for taking my question. The first question is just on the NIM. If we look at the different retail banking segment performances over the last week, we can see peers had retail NIMs up 5 to 10 basis points, but the Australian retail NIM and AZ's result was down 1 bit and the sum NIM was down 75% on 5. Can you just sort of reconcile what you're seeing in the retail NIM performance versus peers, please?

Question: Thomas Strong - Citi Infrastructure Investments LLC - Analyst : Great, thank you for that. And just a second question on business banking if I can. I mean, you've sort of talked to the institutional volume Simon in terms of loan growth, but just in terms of commercial 2%, half on half growth and your peers are growing at 5 to 8%, half on half and talking quite a bullish story into 26%. I mean, how should we think about growth in the business at AZ into next year?

Question: Ed Henning - CLSA Ltd - Analyst : Hi, thanks for taking my questions. Just 2 questions and just more clarity on some of the stuff you've made comments on. Firstly, on the margin in the pack, you talk about the institutional margin, the 4th quarter being flat on the second half number. Can you just talk a little bit more about the other divisions where they're at the moment? I know you talked more about managing your margins going forward. Were there any major pricing decisions in the retail? Or anywhere else that is going to impact or help impact the margin rolling into into the next half and also just on your replicating portfolio benefit although you've got a 5 year hedge like most of your peers ex one of them, it seems like you've got a little bit less of a tailwind there than the peers if you could touch on that as well.

Question: Ed Henning - CLSA Ltd - Analyst : That's great, thank you very much. And then just one further clarity, you talked before about the capital adjustment coming through on the floor and and you talked a little bit about optimization more generally, can I just clarify that you obviously you're going to manage. That line, but you see more opportunities for optimization on your on your capital going forward, whether it be the floor and other parts of your book.

Question: Brian Johnson - MST Financial Services - Analyst : Thank you very much, and also, echoing what Matt said, really good presentation, certainly much better than the last one we saw. I had two questions. The first one is, I just would like to check that I got the tone right, were you implying that the housing market share continues to fall in the near term? Over the next 3 months. 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 09, 2025 / 11:00PM, ANZ.AX - Full Year 2025 ANZ Group Holdings Ltd Earnings Presentation

Question: Brian Johnson - MST Financial Services - Analyst : I did have another question, but Nina, can I just get some clarity on that? So, having followed ANZ quite closely, over the last three years, it strikes me that you've actually originated quite a few housing housing loans with pricing that was below the peers, with the only bank with the mortgage cashback. Do you attribute any of this fall in market share to the brokers being mechanically incentivized to actually refi loans away from ANZ? So is the past pricing flowing through into the actual share we see at the moment, and then I did have another question if I may. 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 09, 2025 / 11:00PM, ANZ.AX - Full Year 2025 ANZ Group Holdings Ltd Earnings Presentation

Question: Brian Johnson - MST Financial Services - Analyst : Fantastic. No, just the second one if I may, to some extent banks, you can make it cost whatever you like, but it's the consequence that you get on the revenue side that really matters. I just looking at ANZ I think everyone on the call, understands the cost out story and there's a lot of complexity there. But when we have a look at the implied targets, the revenue uplifts that required is significant. Could you just give us a feeling to what makes you so confident that you will have the pricing power to deliver the revenue uplift that is implied, and also could we get some comment on if you don't have that confidence, when would we hear it?

Question: Brian Johnson - MST Financial Services - Analyst : Done.

Question: John Storey - UBS AG - Analyst : Good morning guys, thanks for the opportunity to ask a question. I just wanted to go back to Matt's question just in regards to the mortgage strategy. I appreciate you want to be competitive in both proprietary and third-party, but just wanted to get a better understanding, particularly on the proprietary side. Do you think that you need to invest in your branch infrastructure? To be able to deliver a better proprietary offering and then just how much time have you spent actually just scoping the branches yourself?

Question: John Storey - UBS AG - Analyst : No, just on that, do you feel that your current branch infrastructure, let's say NZ Circo got 100 or 300 odd branches and CBA has got Closer to 700 branches, do you think you can grow at or above system given the size of your infrastructure? I think that's kind of the key question.

Question: John Storey - UBS AG - Analyst : Okay, thanks very much, I appreciate it.

Question: Andrew Triggs - JPMorgan Chase & Co - Analyst : Oh thanks and good morning. First question please, just on the margin, just to follow on from a couple of other questions, I do see this sort of time and time again when banks present quite positive NM outlooks when their loan books are growing very slowly. And particularly when you're losing market share across places like the Australian Retail and commercial Bank, also just highlight the institutional NIM that stabilized in Q4. It looked to be in a period of negative loan growth per the Pillar 3 update for the 3rd quarter, and the APRASstat showed deposits barely grew in the September quarter for the group. So maybe kind of just maybe get a little bit more on why you're so confident that margins could be fairly stable. Are you assuming no pickup in, sort of loan growth or recovery in market share stats because the two don't seem to necessarily go together.

Question: Andrew Triggs - JPMorgan Chase & Co - Analyst : Okay, thank you, and the second question, slide 30, shows the the key customer franchise metrics, the NPS scores across Australia and New Zealand, outside of institution which is is obviously doing well, does show pervasive dissatisfaction from customers. You alluded to obviously increasing business and retail bankers over time. Can you maybe dive a little bit more into what needs to be done to to fix those metrics and maybe the timing of some of these investments because you haven't called that an increased investment spend, but obviously resourcing will step up quite a bit at some stage.

Question: Andrew Triggs - JPMorgan Chase & Co - Analyst : I'm sorry, no, timing?

Question: Matthew Dunger - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Yeah, thank you for taking my questions, gentlemen. Can I just ask on the, a follow-up on the market's income Nuno stable at 2.1 bill, your predecessor called this a $2.2 billion dollar business, and today you've talked about the ongoing optimization and in the underappreciated value here. So just wondering if you could, marry that with where you're going to get growth from, markets income and can you grow faster than lending volumes.

Question: Matthew Dunger - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Fantastic, thank you, and you've talked a lot about that growth today. We were just talking about it then, but, just wondering, given the lowest non-performing loans amongst the peers and you've talked today in the pack about the reduced loss rates, are the credit settings too conservative, Nuno, do you have a view on that having got your feet under the desk now?

Question: Richard Wiles - Morgan Stanley & Co Ltd - Analyst : Good morning. I have two questions. The first is on costs. On 2 slide 25, you include your cost drivers. Can I ask, is that, disclosed on the same basis as FY 24, for example, In 25 you've got $405 million of growth from inflation. In 24 you talked about $414 million from wage and vendor inflation. Are they comparable numbers and can you comment on underlying inflation trends, particularly in relation to salaries, software, and sort of financial crime and cyber?

Question: Richard Wiles - Morgan Stanley & Co Ltd - Analyst : Okay, and I have one other question. Nunna, do you think there's an opportunity to shift your geographic mix in Australia? What do you think about your exposure to Victoria and your opportunities in to grow perhaps above system in other states? 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 09, 2025 / 11:00PM, ANZ.AX - Full Year 2025 ANZ Group Holdings Ltd Earnings Presentation