Half Year 2020 Australia and New Zealand Banking Group Ltd Earnings Call Transcript

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

Question: Victor German - Macquarie Research - Analyst : I sort of have a couple of related questions to what have been asked before. Maybe just on the stress test scenario -- and I appreciate that all of those scenarios are just, sort of, scenarios. But even not the APRA assessment but more the bank's assessment led to fairly significant losses across the system. And I appreciate that you're not really talking about losses, you're talking about provisions, and there is a distinction. But given the current accounting methodology, I would have thought that provisions have to be very forward looking. So I would just be interested in sort of -- just a bit more insight in terms of how you think this thing sort of unwinds over the next couple of years, and the movements within provisions and impairment charges. Also keeping in mind that obviously as we get out of this on the other side, the provisions can go back to 0. And so presumably, I'm assuming you'll have to manage that through the P&L. And also on capital, sort of following from Jarrod's question, I guess your starting point is 10.8 and, Shayne, you talked about that you're not expecting fairly massive changes in risk weightings from a balance sheet growth perspective. Assuming base case scenario, 110 basis points, as that plays out, I mean why do you think 10.8 is a reasonable starting point, given everything that you're seeing in front of you? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 30, 2020 / 12:00AM, ANZ.AX - Half Year 2020 Australia and New Zealand Banking Group Ltd Earnings Call

Question: Victor German - Macquarie Research - Analyst : Sorry to interrupt. I just wanted to -- in your understanding from obviously your discussions -- you obviously have a lot more discussions than we do with the regulator. If you were to sort of go down that path around capital, is your understanding that you'll still be able to pay the dividend?