Half 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 : Yes, 2 questions on that, if I could, the first 1 directly following on from that. If you look at the opportunities that you're seeing here, you can see that risk-adjusted margins are already going down quite aggressively in the retail business. And if you look at the credit growth that you're likely to see at the system level for housing, it's going to be very, very tough. You also said that we're going to be in a higher interest rate environment for some time, which is going to be much better for Institutional, especially versus retail, in that current environment, so I would have thought that you would be allocating more capital looking for more growth back into that Institutional space. [You did say this, Shayne], that you don't want to expand the number of customers, but how large could this be? Is this going to really be the growth opportunity for ANZ for the next couple of years?

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : And just a follow-up question, if I could. If you then look at Slide 25, where you give us here [a round of more] risk-adjusted margin (inaudible) division. Everyone is crying poor about the tough returns and how hard it is in mortgages being below the cost of capital, but you're still getting a 6.43% risk-adjusted margin in Australian retail. And commercial is now at 8.37%, so wouldn't that suggest that the margin pressure is going to be ongoing for a long period of time from here in some of those businesses?

Question: Victor German - Macquarie Research - Analyst : A question on costs. We -- just to be able to assess the cost performance. Would you be able to -- and I apologize if I just missed it, but would you be able to tell us what the investment spend was? And how much of that was expensed? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 05, 2023 / 1:15AM, ANZ.AX - Half Year 2023 ANZ Group Holdings Ltd Earnings Presentation

Question: Victor German - Macquarie Research - Analyst : Yes, I guess. And we've had these sorts of discussions in the past, but you're -- one of the things that sort of differentiated you to many of your peers was that your investment spend was fairly high and you actually expense some -- a very large portion of it. And I'm just wondering whether part of the 5% cost guidance is partly reflecting the fact that you're perhaps investing a little bit less and maybe you're not amortizing as much.

Question: Victor German - Macquarie Research - Analyst : Yes, [it does, in terms of the] percentages [and not as concrete as] dollars, but I understand. The second question, if I may, just to sort of wrap up: There's been a lot of discussion on margins. And I completely understand the business mix benefits that you're hoping to see. And certainly, if we look at Slide 29, for example, when we look at your group NIM, it feels like it's nowhere as elevated as it appears your peers would have. And there appears to be a lot of room for improvement, but then at the same time, [I suppose], if we look at your risk-adjusted margins, it actually has improved a lot. And I'm just wondering to what extent perhaps this ability to extract additional margin benefits are maybe overstated as a result of you derisking the book over these years and your margins are not actually as low as it may appear from a headline perspective.

Question: Victor German - Macquarie Research - Analyst : Yes, I guess, yes. To what extent do you think there is an opportunity to improve, for example, your returns in the institutional bank and given that perhaps they're not as bad as what we taught before given that you derisked the bank. And actually they are really at reasonably attractive levels, anyway.