Half Year 2021 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 was hoping to follow up on the capital question and also have a question on replicating portfolio as well. So with respect to capital -- I'm in China. I'd just be interested in your thoughts on this because we've kind of talked -- we've heard banks talk about having surplus capital for a long period of time. And in fairness, over the last 3 years, bank capital positions have increased significantly across the entire sector. Yet APRA still talks about whenever they talk about capital, they have a statement there saying, APRA is not seeking to further increase capital from current levels. I'd just be interested in your observations of kind of where is the disconnect? Why kind of banks are thinking they have plenty of surplus of capital, and APRA doesn't necessarily view -- or at least publicly do not acknowledge that. And kind of leading that into a sustainable payout ratio as well. You've paid out 67%. Obviously, there's lots of notable items in there, but also your BDD charge is very low. Just be interested kind of as we progress from here, where do you feel your sustainable payout ratio is. And on the replicated portfolio, a very simple question. I've noticed in your chart, you showed 5-year rate there. Should we be interpreting that as you're now investing in your liquid earnings totally on a 5-year basis, and that's why the drag is much smaller.

Question: Victor German - Macquarie Research - Analyst : Sorry, can I just confirm? In the past, it was 3 years, wasn't it? So you're (inaudible) investing into 5? Is that how I should think about it?