ANZ 2020 Annual Report

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
ANZ Centre Melbourne, Level 9A, 833 Collins Street, Docklands VIC 3008

9 November 2020

Market Announcements Office
ASX Limited
Level 4
20 Bridge Street
SYDNEY NSW 2000





ANZ 2020 Annual Report

Australia and New Zealand Banking Group Limited (ANZ) today released its 2020 Annual
Report.
It has been approved for distribution by ANZ’s Board of Directors.

Yours faithfully




Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited

2020 ANNUAL REPORT

Growing business
during a crisis
Overview 1
2020 performance snapshot 1
Our 2020 reporting suite 2
What matters most 3
Chair
man’s message 4
CEO’s message 6
C
OVID-19 – protecting our customers,
employees and the community
8
How we create value 10
About our business 10
Our vision and strategy
11
How we create value
12
Our operating environment 14
Becoming a fairer and more responsible bank 16
Our customers 18
Our divisions 25
Our people 28
Our community 32
Our approach to climate change 34
Governance 38
Risk management
49
Performance overview 54
Remuneration report 74
Directors’ report 109
Financial report 111
Shareholder information 234
Glossary 243
CUSTOMER STORY ADAPTING
CONTENTS
Photo credit: Simon Schluter, The Age
An ANZ customer for more than 50 years, fellahamilton has been
in the business of Australian women’s fashion since the early 1970s.
Today, the company is managed by David Hamilton (son of the
eponymous founder) and his wife, Sharon Hamilton, CEO.
When the COVID-19 pandemic first hit Australia in March,
times were challenging.
Within the first few weeks of lockdowns,
they had to let go of employees at their
Moorabbin factory and retail stores
nationally were shut.
However, shortly after, a doctor friend of
Sharon’s asked her to make a scrub set, as
there was a limited supply of Personal
Protective Equipment (PPE).
Sharon recalls the moment demand for
their washable, hospital-grade PPE started
snowballing and a new direction for the
business appeared in ‘fellahealthwear’.
“I’m a pharmacist by profession, with many
friends in the medical industry. After the
first request, I received another, and another,
and now we’re making and distributing
thousands of scrubs and gowns to GPs,
dentists and hospitals. We’ve hired back
all of our staff and have never been busier,”
says Sharon.
David credits the move into making PPE
to his wife’s optimistic nature and tendency
to ‘think outside the box’.
“Changing direction wasn’t easy,” says David.
“It needed us to have intestinal fortitude and
complete dedication to what we thought
was the right move for our business.”
“The road ahead is going to be tough.
While we’re doing well at the moment, we
are uncertain about what the future holds,
so we need to remain adaptable and agile
in response to what may come next from
the pandemic.”
Overview
How we
create value
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information

~1. 8 m
customer accounts
remediated
5
$139.5m
in community
investment
4
132.7c
Cash earnings
per share
1
33.4%
of women
in leadership
6
$3.8b
Cash profit
1
6.2%
Cash return
on equity
1
11. 3 %
Common equity
Tier 1 Capital
3
60c
Dividend for
2020 per share
$9.08b
funded and facilitated
in sustainable solutions
since 2019
$20. 04
Net tangible
assets per share
2
>61,000
people have been
reached through our
financial wellbeing
programs, MoneyMinded
and Saver Plus
7
2020 performance snapshot
1. On a cash profit (continuing operations) basis. Excludes non-core items included in statutory profit and discontinued operations included in cash profit. It is provided to assist readers in
understanding the result of the ongoing business activities of the Group. For further information on adjustments between statutory and cash profit refer to page 56. 2. Equals shareholders’
equity less preference share capital, goodwill, software and other intangible assets divided by the number of ordinary shares. 3. APRA Level 2. 4. Figure includes forgone revenue of
$105 million, being the cost of providing low or fee free accounts to a range of customers such as government benefit recipients, not-for-profit organisations and students. 5. Refers to
Australian customer accounts in the last 12 months. 6. Measures representation at the Senior Manager, Executive and Senior Executive levels. Includes all employees regardless of leave
status but not contractors (who are included in Full Time Equivalents (FTE)). 7. Includes individuals who have participated in more than one program or product (for example, people who
have participated in MoneyMinded as part of Saver Plus are counted twice as they are included in both the MoneyMinded and Saver Plus totals).
1
ANZ 2020 Annual Report

Our 2020 reporting suite
1. Group: Australia and New Zealand Banking Group Limited (the Company) and the entities it controlled at the year end and from time to time during the financial year (together, the Group).
2. ESG content includes the following sections: 2020 performance snapshot, What matters most, COVID-19 – protecting our customers, employees and the community, Becoming a fairer and
more responsible bank, Our customers, Our people, Our community, Our approach to climate change and ESG metrics on page 72. 3. The 2020 Annual Review is comprised of pages 1 to 72
and 241 to 242 of this Annual Report and a Remuneration Overview.
Integrated reporting
This report includes information on our financial and non-financial
performance, providing readers with a holistic view of the Australia
and New Zealand Banking Group Limited’s
1
performance. In
preparing pages 1 to 72, we have again drawn on aspects of the
International Integrated Reporting Framework to describe how
our business model, strategy, governance and risk management
processes help us manage risks and opportunities in our operating
environment and deliver value for our stakeholders. We outline our
response to external social and environmental challenges, including
how we are supporting our stakeholders through the COVID-19
pandemic, continuing to implement recommendations from the
Royal Commission and strengthening our approach to climate
change and human rights.
Annual Report structure
The required elements of the Directors Report, including the
Operating and Financial Review (OFR) as required by ASIC
Regulatory Guide 247, are covered on pages 1 to 70. Commentary
on our performance overview contained on pages 54 to 71
references information reported in the Financial Report
pages 111 to 233.
The Remuneration Report pages 74 to 108 and the Financial Report
pages 111 to 233 have been audited by KPMG. KPMG also provides
limited assurance over Environment, Social and Governance (ESG)
content
2
within this Annual Report. A copy of KPMG’s limited
assurance report is contained in the ANZ 2020 ESG Supplement.
This report covers all ANZ operations worldwide over which, unless
otherwise stated, we have control for the financial year commencing
on 1 October 2019 and ending 30 September 2020. Monetary
amounts in this document are reported in Australian dollars,
unless otherwise stated.
Additional information
We produce a suite of reports to meet the needs and requirements
of a wide range of stakeholders, including shareholders, customers,
employees, regulators, non-government organisations and
the community. In 2021 we intend to review our disclosures to
ensure they are meeting the evolving needs of our stakeholders.
Specifically, we will consider whether there are additional
reporting frameworks or metrics we could use to enhance our
disclosures. In this respect we are closely watching work underway
by key sustainability disclosure bodies to develop a coherent and
comprehensive corporate reporting system in which existing
sustainability standards and frameworks complement financial
accounting principles.
Our 2020 Corporate Governance Statement discloses how we have
complied with the ASX Corporate Governance Council’s ‘Corporate
Governance Principles and Recommendations – 3rd edition’ and is
available at anz.com/corporategovernance.
Our ESG Supplement complements this Annual Report, providing
stakeholders with more detailed ESG disclosures, including:
performance against our ESG targets and approach to our priority
areas of fair and responsible banking, financial wellbeing,
environmental sustainability and housing. In response to stakeholder
feedback, for the first time, we are releasing our ESG Supplement
at the same time as this Annual Report.
The following documents are available at
anz.com/shareholder/centre:
•News Release
•Consolidated Financial Report, Dividend Announcement
& Appendix 4E
•Results Presentation and Investor Discussion Pack
•Annual Review
3
•The Company Financial Report
•Principal Risks and Uncertainties Disclosure
•APS 330 Pillar III Disclosure
•Climat
e-related Financial Disclosures
We are continually seeking to improve our reporting suite and
welcome feedback on this report. Please address any questions,
comments or suggestions to investor.relations@anz.com.
2020 ANNUAL REVIEW
anz.com/annualreport
2020 ESG SUPPLEMENT
anz.com/cs
2020 CLIMATE-RELATED
FINANCIAL DISCLOSURES
anz.com/shareholder/centre
2020 CORPORATE
GOVERNANCE STATEMENT
anz.com/corporategovernance
2
Overview
How we
create value
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information

These insights were presented to the executive Ethics and
Responsible Business Committee and the Board Ethics, Environment,
Social and Governance Committee and helped to inform the
development of our ESG targets, as well as our continued response
to COVID-19, including our customer Statement of Intent
(see page 8).
Our material ESG issues are ‘mapped’ to the bank’s material risks
on pages 52-53.
What matters most
Through our annual materiality assessment we engage with internal and external stakeholders
to inform our identification of ESG risks and opportunities. We seek to identify those issues that
have the most potential to impact our ability to operate successfully and create value for
our shareholders and other stakeholders.
WE ASKED EXTERNAL STAKEHOLDERS:
What is one action ANZ could take to enhance
its reputation as a fair and ethical organisation?
THEY SAID:
— 1 Support customers through times of hardship
— 2 Continue to resolve issues raised in the
Royal Commission
— 3 Link executive remuneration and performance
metrics to broader ESG considerations
— 4 Lead on sustainable finance
We use the assessment to inform our strategy, ESG targets and
external reporting.
In 2019 our materiality assessment was focused on issues arising
from the Royal Commission. This year we returned to a broader
focus, with an emphasis on the ‘social’ aspects of ESG, and
specifically our support for customers, employees and the
community in response to COVID-19.
The bank’s response was well regarded by external stakeholders,
with several commenting how the banking sector has responded to
the pandemic has helped to improve community trust lost during
the Royal Commission. They did note, however, that despite the
positive steps taken since the Royal Commission, trust should
remain a key focus and its recovery is fragile.
Both external and internal stakeholder groups identified fairness
and ethical conduct, financial wellbeing and customer experience
as priorities. Some external stakeholders also highlighted the
importance of continuing to act on climate change, while internal
stakeholders emphasised the importance of fraud and data security.
FAIRNESS AND ETHICAL CONDUCT: a strong
corporate culture, known for ethics, values, fairness and
transparency. Simple and understandable products
and communications (i.e. product disclosure, including
bank fees and charges) and appropriate hardship/
collections policies.
FINANCIAL WELLBEING: promoting and enabling
access to safe and affordable products and services,
particularly lower-income and vulnerable customers.
Work with cross-sector partners to help customers,
employees and the broader community meet current
financial commitments and needs, and improve their
financial resilience.
CUSTOMER EXPERIENCE: delivering value and
improved customer experience through appropriate
financial products and services for all customers, small
business and retail.
CLIMATE CHANGE: managing the business risks and
opportunities associated with climate change. Includes
the role we play in supporting our customers to
transition to a low carbon economy.
FRAUD AND DATA SECURITY: policies and processes in
place to prevent fraud and protect customer data and
privacy. Includes customer access to personal data.
Supplementary disclosures
The full list of our material ESG issues, as well as the key
steps in the materiality assessment process, is discussed
in our 2020 ESG Supplement available at anz.com/cs.
Detailed information on other ways in which we have
engaged with stakeholders is also included in the 2020
ESG Supplement.
3
ANZ 2020 Annual Report

Chairman’s message
COVID-19 has had a profound impact on all our lives.
Whether it is the devastating loss of lives, the crippling
of some businesses and impact on livelihoods, limitations
placed on social activities and the way we are working –
2020 will be remembered for generations.
David Gonski, AC
ANZ has of course not been spared from
the effects of the pandemic. Our full-year
statutory profit of $3.6 billion was down
40% – levels not seen since the height of
the Global Financial Crisis.
Looking through the immediate impact
of COVID-19, the fundamental drivers of
our business continued to perform well.
We are fortunate the actions taken by
our management team over many years
to simplify and improve our operations
have the bank well positioned to support
our customers as well as supporting
economic recovery.
Despite the challenges facing the broader
economy, the Board was pleased to declare
a final dividend of 35 cents. This is on top of
the interim dividend announced in August,
taking the total payout to 60 cents per share.
Given the uncertain environment, we put
aside $2.7 billion for possible future credit
losses. This takes ANZ’s total credit provision
reserves to $5.9 billion.
We also continued to simplify the
business through the year. On 31 January,
we completed the previously announced
sale of our OnePath Pensions and
Investments business to IOOF Holdings
Limited and in September we completed
the sale of UDC Finance in New Zealand
to Shinsei Bank Limited.
During the most recent quarter, we
announced the sale of 1,300 offsite
Australian ATMs to Armaguard. While
we will continue to operate our 900
ATMs at our branches around Australia,
this was another step in achieving our
overall goal to be simpler, more
efficient and better managed.
Supporting customers
For ANZ, 2020 will ultimately be defined
by how we stepped up to support our
customers and the community through
this devastating global pandemic.
Almost overnight businesses that were
once thriving enterprises were restricted
from operating, families lost their main
source of income and millions faced
economic uncertainty, and our thoughts
are with those who have been directly
impacted.
I’m proud of the way our bank, under the
leadership of our Chief Executive Shayne
Elliott, has risen to support our customers
and I can assure shareholders ANZ will
continue to play a crucial role in the
economic recovery of Australia and
New Zealand.
4
Overview
How we
create value
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information

Already we have provided loan payment
deferrals for more than 142,000 home loans
and business loans in Australia and New
Zealand. This approach has provided
customers with the time they need to
recover while also protecting the interests
of shareholders.
While it’s an impossible task to provide
an accurate outlook for the future, I remain
optimistic about our prospects given
the positive way governments in our
key markets, particularly in Australia and
New Zealand, have responded to the
challenges of COVID-19.
Fortunately, we already are seeing the early
signs of recovery, particularly in those parts
of our business less impacted by COVID-19.
In Western Australia, for instance, our card
data shows spending on ‘dining & takeaway’
was up around 18% on the previous year.
Clearly there are still more challenges ahead
but these early signs provide us with a level
of confidence about the actions taken so far.
Executive remuneration
We know how we reward our most senior
people is important for many shareholders.
The Chair of our Human Resources
Committee, Ilana Atlas, AO, has provided
more detail in the Remuneration Report.
However, I can guarantee shareholders the
Board spent a great deal of time evaluating
the performance of the management team
and deciding how to reward them
appropriately.
The Board was pleased with the
performance this year and was particularly
impressed with the way the bank responded
to the challenges presented by COVID-19.
However, given the impact the pandemic
has had on our shareholders, customers
and the broader community, the Board
exercised its discretion by applying a 50%
reduction to the variable remuneration
for our executive team, including our
Chief Executive.
The Board also determined there would be
no fixed remuneration increases for any of
its Disclosed Executives, including the Chief
Executive Officer, for the coming year.
Board succession
As you may know, my time at ANZ came to
an end at the finalisation of this year’s result
on 28 October. At that date I had been a
director for more than 11 years, originally
serving between 2002 and 2007, and then
returning as Chair in 2014.
Serving as ANZ’s Chairman will always be a
highlight of my corporate career. Reflecting
on my time here, I am most proud to have
played a role in choosing Shayne Elliott to
be our Chief Executive and to work with
him to establish his talented leadership
team. I know I am leaving ANZ in good
shape under this strong leadership and
I will be keenly monitoring ANZ’s progress.
I am also delighted Paul O’Sullivan has
succeeded me as Chairman. Paul is an
outstanding company director who has
already made a strong contribution to the
Board. He has my absolute confidence.
Finally, I would like to thank shareholders
for their support over the years and
acknowledge the efforts of our 39,000
people who have been working hard for
our customers, shareholders and the
broader community.
David Gonski, AC Chairman
Message from Paul O’Sullivan
I am honoured to succeed David Gonski as the new
Chairman of ANZ. The bank has a proud 185-year history
and I look forward to contributing to its continued success.
While there will be much to consider in the coming year as economies recover
from the COVID-19 pandemic, my focus as Chairman will be to continue the work
we have been doing over many years to improve our operations and simplify the
bank, particularly through digital and technological innovation.
The Board will also pay close attention to our business growth strategy in the
constantly changing landscape in which we operate. Looking at how we will
ensure success and improved financial performance in the long-term will be
of critical importance.
Finally, I’d like to take this opportunity to acknowledge the enormous contribution
David has made and thank him on behalf of all shareholders for his hard work and
leadership over the last seven years as Chair.
David steered the Board through some challenging times and helped build an
organisation with a strong focus on governance, accountability, improved culture
and enhanced customer outcomes.
His efforts to strengthen and champion the
bank’s work in the area of Environment, Social
and Governance (ESG), especially with respect
to social and economic inclusion and climate
change, is a legacy of which he should be
very proud.
Paul D O’Sullivan
5
ANZ 2020 Annual Report

Our thoughts are with those who have
suffered from these events. We need
only look at some of the country towns
impacted by bushfires or the empty city
streets to know these crises have struck
at the heart of our community.
We want our customers to know we will
continue to do all we can to support them
through the tough times. Fortunately we
have never been in better shape to support
all our stakeholders through what will be
one of history’s periods of great volatility.
While the Chairman’s message has provided
an overview of our financial performance,
I would reiterate we were pleased with
how the business performed in difficult
trading conditions.
As a bank, we entered 2020 in robust
condition. We have a strong balance sheet
with record levels of capital and liquidity.
The work done over several years to simplify
the bank means we now focus only on the
things that matter, our people are more
engaged than ever and we are able to quickly
adapt to the challenges the future holds.
While COVID-19 has impacted many parts of
our business, we have not sat idle. Times of
crisis are when the best companies build for
the future in a prudent and disciplined
manner. We invested record levels to build
a better bank for our customers and staff,
while continuing to closely manage costs.
In Australia, we achieved strong growth
in our targeted home loan segments with
above system growth in the owner-occupier
market, driven particularly by the refinancing
market. Deposits remained strong as
customers took a sensible approach to
managing their household balance sheet.
We also saw an accelerated shift away from
the use of cash due to the pandemic and
we introduced new processes to help
customers move to online banking.
We could never have forecast 2020, a year that started with
devastating bushfires in Australia and was followed by waves
of a terrible, global pandemic that continues to spread. We
still cannot predict its course but we do remain confident
we can deal with its impacts.
CEO’s message
Shayne Elliott
6
Overview
How we
create value
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information

The work done over many years to simplify
and refocus the Institutional business
proved beneficial in a market defined by
high levels of liquidity, low interest rates and
geopolitical tensions. Increased volatility led
to strong activity in Global Markets which
again performed well and demonstrated
the benefits of a diversified business. As
Australia’s leading international bank, we
remain well positioned to assist domestic
companies doing business in Asia as the
global economy improves.
COVID-19 appears contained in New Zealand
and we remain well positioned to benefit
from its subsequent economic recovery.
While it was a tough revenue environment,
given low interest rates and a focus on
reducing or simplifying fees, we have
maintained market leadership in our
targeted segments: home loans, deposits
and KiwiSaver.
Given the critical role data, insights and
automation will play over the coming years,
particularly as we respond to the challenges
of COVID-19 and the daily uncertainty that
brings, we also made changes to the
executive team with the addition of Emma
Gray to the new role of Group Executive
Data and Automation. This will be a critical
role in the continued digital transformation
of ANZ.
One of the most pleasing aspects of 2020
has been how our people have responded
to the challenge. We were able to successfully
move 95 per cent of our non-branch
employees to working productively from
home where they were able to support our
customers at a time of significant stress.
Employee engagement is at record levels.
I’ve been amazed at their dedication and
I’m proud to call them my colleagues.
Climate change
This year we have released an updated
Climate Change Statement that outlines our
approach and strengthened commitments
in support of a global transition to net zero
carbon emissions.
We understand the impact – positive and
negative – our financing has on climate
change. We have been working hard on
making a meaningful difference while
supporting long-standing customers who
are making the transition to a low carbon
future. Over the last five years, we have
reduced our lending to thermal coal mining
by almost 70 per cent and increased our
direct lending to renewables by 63 per cent.
Our 2020 Climate Change Statement
focuses on three main areas.
First, we will help our customers by
encouraging them to identify climate risks
and opportunities, create transition plans
and report publicly on their progress.
Second, we will support the transition of
industries to a low carbon future so they
can help grow the economy. A key element
for ANZ is we will no longer directly finance
new assets across the thermal coal value
chain and will exit all directly financed
coal-fired power stations and thermal
coal mines by 2030.
Thirdly, we will reduce our own impact
by managing and reducing emissions
from our operations. We will do this by
accelerating our emission reductions by
sourcing 100 per cent of the electricity
needed for our business operations from
renewables by 2025.
Vale Will Bailey
I would also like to acknowledge
the passing of our former Chief
Executive Officer Will Bailey
in August this year.
Having started as a teller in the
Oakleigh branch of the old ES&A
bank in 1950, Will served as CEO
between 1984 and 1992. He was a
mentor to many future ANZ leaders
and made a significant contribution
in building the ANZ we all
know today.
One of Will’s major legacies was
modernising the bank, introducing
automation and computerisation –
and some technology still in
use today. In fact, ANZ opened
Australia’s first ‘electronic branch’
in 1985 under his stewardship. On
behalf of everyone at ANZ, I’d like to
pass on our condolences to his wife
Dorothy and his family and friends.
Finally, I would like to acknowledge
again the terrific work of our 39,000 people
across the world. From our service centres
in Bangalore and Manila through to our
contact centres in Australia and branches in
New Zealand, they have all done a great job
for customers in very difficult circumstances
despite competing priorities over this long,
arduous period.
Shayne Elliott, Chief Executive Officer
Times of crisis are when the best companies build for
the future in a prudent and disciplined manner.
7
ANZ 2020 Annual Report

COVID-19 – protecting our customers,
people and community
While our decisions in responding to the COVID-19 pandemic have had a short-term financial
impact – on earnings, profitability and shareholder value – our focus is on the long-term.
A healthy and sustainable community is in everyone’s best interests.
Throughout the pandemic we have sought to balance the needs of all stakeholders. Our approach has been guided by four key principles:
Protect what
matters
Adapt to
the changing
environment
Engage with
stakeholders
Prepare for
the future
Our people
From early March we moved employees to work-at-home
arrangements, split teams and introduced greater distance
between those employees performing essential functions in
the office. By late April approximately 95% of our non-branch
employees had adapted to working from home.
Any employee concerned about their safety while working
from home (for example, due to domestic and family violence),
could elect to work in the office.
We also introduced 10 days’ of paid coronavirus-related special
leave, and provided a one-off payment to junior and mid-level
employees as a contribution towards working from home
work expenses.
To protect our people still working in, or returning to the office, we
have put in place multiple controls to minimise the risk of exposure
to COVID-19 in the workplace, including thermal screening; physical
distancing markers; enhanced cleaning protocols; and robust
incident notification, response and management processes.
These principles informed our ‘Statement of Intent’ (available on anz.com), which outlines support for customers impacted financially
by the pandemic and our commitment to work with them on a solution that is respectful, fair and appropriate.
Our customers
In March we announced our initial support package for retail
and business customers, offering the option of deferring loan
repayments for a period of six months on a range of products,
including home, personal and business loans.
We received over 137,000 applications for
hardship assistance in Australia alone.
In July we updated our support package for customers continuing
to experience financial difficulty due to COVID-19. Additional
assistance options (depending on the customer’s circumstances)
included loan restructuring (for example, an interest only period)
or an extension of the deferral period until 31 March 2021.
Customers with loan repayment deferrals have been proactively
contacted by phone, SMS and/or email/letter to ensure they
understand the impacts of their loan relief and identify if they
need further support.
Across Australia and New Zealand we have over 1.5 million home loans.
Of our
~
1 million home loans in Australia,
~
95,000 have received deferrals on their loan
repayments since March 2020, with
~
74,000 deferred loans active at 30 September.
Of our
~
529,000 home loans in New Zealand,
~
24,000 have received deferrals on their
loan repayments since March 2020, with
~
16,000 deferred loans active at 30 September.
Of our
~
236,000 business loans in Australia,
~
23,000 have received deferrals on their
loan repayments since March 2020, with
~
20,000 deferred loans active at 30 September.
8
Overview
How we
create value
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information

To support the wellbeing of our people we are providing coaching
and digital resources through our employee intranet and new
‘HealthyMe’ app. Our Employee Assistance Program also remains
available to our people and their immediate family members.
Finally, we are providing enhanced support for employees displaced
from their roles due to redundancy. This has included putting in
place a program for impacted employees, which provides them
with unlimited coaching and workshops to help them find new
careers and support their financial and emotional wellbeing.
Our community
We have worked closely with our community partners throughout
the pandemic – from adapting the way we deliver our financial
literacy programs to our senior executives engaging weekly with
NGOs, consumer advocates and financial counsellors to ensure we
are acting responsibly and responsively to real world conditions.
In Australia, we donated $1.5m to the Brotherhood of St Laurence,
The Smith Family and the Financial Counselling Foundation – for
education, employment, aged care and financial counselling
programs targeted at disadvantaged people affected by COVID-19.
We donated a total of NZ$2 million to Women’s Refuge, Age
Concern New Zealand, the NZ Salvation Army, Red Cross and
other local charities in the Pacific to support those most affected
by the crisis.
We also directed $8.4 million of unclaimed remediation monies
to our key community partners to, among other things, help
expand their programs online. COVID-19 has highlighted the need
for diverse and sustainable ways to deliver services to vulnerable
families. One of our partners, The Smith Family, will use the funds
to further digitise their programs so they can continue to support
the education of around 58,000 students online.
When children moved to remote learning, many of the families
supported by The Smith Family through their Learning for Life
program struggled to help their children with schoolwork. This
was due to a range of factors including some having low education
levels themselves, limited technical confidence and skills, or having
English as a second language. In addition, digital inclusion issues
such as a lack of devices and internet access further affected some
students. The educational support and learning programs The Smith
Family provides, with our help, is now needed more than ever, as
children and young people from disadvantaged backgrounds are
at higher risk of falling behind due to the pandemic.
Improving the lives of vulnerable Australians
during COVID-19
We have worked together with the Brotherhood of St Laurence
(BSL) to adapt shared community programs so participants
can continue receiving support during COVID-19.
In response to the pandemic, we transitioned Saver Plus, a
matched savings and financial education program developed
by ANZ and BSL, to digital delivery. This enabled over 2,000
participants to remain on the program by completing financial
education online instead of attending in person workshops.
Between March and September 2020, we provided over
$520,000 towards laptops and tablets, enabling digital
access for over 1,100 families and individuals to support
remote schooling and learning.
We were also one of the employers that continued to
provide employment opportunities for refugees and asylum
seekers through BSL’s Given the Chance work placement
program. “This has been very much appreciated by BSL, and
for the participants it has provided security and stability in a
time when many areas of their lives are out of control”, BSL’s
Executive Director Conny Lenneberg says.
Supporting women in a time of crisis
Established in the 1970s, Women’s Refuge is New Zealand’s
largest nation-wide organisation supporting women and
children experiencing domestic and family violence.
During the COVID-19 lockdowns many women have
needed help to get through the crisis, with the pandemic
exacerbating family violence in some households.
In March 2020, we donated NZ$500,000 to the Women’s
Refuge, a community organisation that ANZ New Zealand
has had a long-standing relationship with.
Dr Ang Jury, CEO of Women’s Refuge commented on the
impact the crisis was having, saying, “we’ve been overwhelmed
with need in recent weeks. Unfortunately for some, there is
not a safe place to self-isolate for long periods of time.”
The funds from ANZ have meant that women and children
can be provided with food, healthcare, communications
services and importantly, safe lodging in motels.
“We are incredibly grateful for this donation from ANZ and
these funds will help ease the financial pressure our refuges
are facing during this time. We are also pleased to be able to
direct a portion of the donation to future care and support
for women and children,” said Dr Jury.
Since 2017, ANZ has made it easier for women referred by
Women’s Refuge to set up their own bank account, even
though they may not have ID or a permanent address.
ANZ NZ CEO Antonia Watson said: “It’s important to look out
for the most vulnerable in our communities during this time,
to not lose sight of their needs, and make sure the people
and organisations who support them are well resourced
and supported.”
"We are incredibly grateful for the generosity
and ongoing support of ANZ, who enable us
to continue helping children and families in
need, not just through this challenging time
but into the future as well.”
Dr Lisa O’Brien, Chief Executive Officer, The Smith Family
9
ANZ 2020 Annual Report

About our business
We provide banking and financial products and services to over 8.5 million retail and business
customers, and operate across 33 markets.
Our purpose and values
Our expertise, products and services make us a bank. Our people, purpose, values and culture make us ANZ.
Our purpose is to help shape a world in which people and communities thrive. That is why we strive
to create a balanced, sustainable society in which everyone can take part and build a better life.
Our values are the foundation of how we work – living our values every day enables us to deliver on our strategy and purpose, strengthen
stakeholder relationships and earn the community’s trust. All employees and contractors must comply with our Code of Conduct, which
sets the expected standards of professional behaviour and guides us in applying our values.
Bringing our purpose to life
We are helping to respond to complex societal issues central to our
customers and our business strategy. In particular, we are focusing
our efforts on:
FINANCIAL WELLBEING – improving the financial wellbeing of our
customers, employees and the community by helping them make
the most of their money throughout their lives;
ENVIRONMENTAL SUSTAINABILITY – supporting household,
business and financial practices that improve environmental
sustainability; and
HOUSING – improving the availability of suitable and affordable
housing options for all Australians and New Zealanders.
We are contributing to these challenges by: developing innovative
and responsible financial products and services; working with our
customers; harnessing the skills of our people; and supporting the
communities in which we live and work.
Fundamental to our approach is a commitment to fair and
responsible banking – keeping pace with the expectations of our
customers, employees and the community, behaving fairly and
responsibly and maintaining high standards of conduct.
Throughout this report we illustrate how we have embedded purpose
into our business strategy, including through our Environment,
Social and Governance (ESG) targets and performance objectives.
Supporting sustainable development
We are committed to the United Nations Sustainable
Development Goals (SDGs) and believe that business has
an important role to play in their achievement. Our ESG
targets support 11 of the 17 SDGs.
In 2019 we became a founding signatory to the UN
Principles for Responsible Banking. Under the Principles we
are required to set at least two targets that address our most
significant (potential) positive and negative impacts, aligned
with the SDGs and the Paris Climate Agreement. Further
information on our progress towards implementing the
Principles, including targets we have set, is in our 2020
ESG Supplement available at anz.com/cs.
I NTEGRITY C OLLABORATION A CCOUNTABILITY R ESPECT E XCELLENCE
Our values are:
10
Overview
How we
create value
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information

Our vision
Our vision is to build a bank of which
we can all be proud – whether you are
a customer, a shareholder or an
employee – known for:
•deliv
ering value from innovative and
convenient banking services that help
customers get ahead in life – improving
their financial wellbeing
•building the best and most div
erse
team of people, regardless of where
they ultimately work
•showing leadership on important issues,
and doing the right thing, even when it
comes at a cost
•deliv
ering consistently strong financial
results for our shareholders, with a
balance between growth and return,
short-and long-term results
Our vision and strategy
Our vision and strategy describe what we seek to achieve and how we will achieve it.
Our strategy
Our strategy is to help improve the financial wellbeing of our
customers, having the right people who listen, learn and adapt;
putting the best tools and insights into their hands and; focusing
on those few things that really add value to customers, and doing
them right the first time.
In particular, we want to help customers:
•sa
ve for, buy and own a liveable home
•star
t or buy and grow their business and adopt sustainable business practices
•mo
ve capital and goods around the region and adopt sustainable business practices.
In doing so, we seek to improve the financial wellbeing of our customers, people and
communities by helping them make the most of their money throughout their lives;
supporting household, business and financial practices that improve environmental
sustainability; and improving the availability of suitable and affordable housing options
for all Australians and New Zealanders.
Improving the financial
wellbeing of customers...
...with flexible and resilient digital
infrastructure that supports great
customer experience at lower cost
...with people
who listen,
learn and adapt
...with the
best tools
and insights
...looking to
save for,
buy and
own a
home
...looking
to start,
buy and
grow a
business
...looking to
move capital
and goods
around the
region
Strategic ImperativesStrategy
Creating value for
our stakeholders

Create a simpler,
better capitalised,
better balanced bank
Build a superior
experience for our
people and customers
in order to compete in
the digital age
Focus our efforts
where we can carve out
a winning position
Drive a purpose
and values-led
transformation of
the bank

Decent returns
for shareholders
Great experience
for customers
Engaged, adaptable
and capable employees
Improved financial
wellbeing, housing
and environmental
sustainability outcomes
for customers and
communities
11
ANZ 2020 Annual Report

FINANCE
Access to capital through customer
deposits, debt and equity investors and
wholesale markets enables us to run our
operations and execute our strategy.
RISK MANAGEMENT
Reducing the risk of doing business
for our customers and the bank, with
systems and processes that are less
complex, less prone to error and
more secure.
TECHNOLOGY AND DATA CAPABILITIES
Flexible, digital-ready infrastructure to provide great
customer experience, agility, scale and control.
COMMUNITY AND RELATIONSHIPS
Strong stakeholder relationships are
essential to our brand and reputation.
CUSTOMERS
Trusted relationships with
over 8.5 million retail, business
and Institutional customers.
PEOPLE
Employees and contractors with
the key competencies and right
behaviours to deliver our strategy.
!
Technological
changes
Globalisation
Demographic
changes
Social and
economic impacts
of COVID-19
pandemic
Limited
credit growth
Increasing
importance
of ESG
Regulatory
oversight and
stakeholder
scrutiny
OUR VALUE
DRIVERS
¢
$
The risks and opportunities in
our operating environment impact
our ability to create value.
OUR OPERATING
ENVIRONMENT
How we
create value
By transforming our
business – embedding a
purpose and values-led
culture and simplifying our
products and services – we aim
to create long-term value for
all of our stakeholders.
Our value creation model
outlines how we create value
for our key stakeholders through
our business activities, and
identifies the inputs – or value
drivers – that we rely on to
enable us to deliver that
value and meet our
strategic objectives.
12
Overview
How we
create value
Performance
overview
Remuneration
report
Directors’
report
Financial
report
Shareholder
information

Operating across 33 markets,
we provide banking and financial
products and services to individual
and business customers.
Through our business activities
we deliver the following outputs:

we provide transaction banking services

we hold deposits for our customers

we lend money to our retail, business
and institutional customers

we help customers mitigate
and manage financial risks

we support customers with
trade and capital flows

we provide wealth management
products

we provide advisory services

we invest in our people to build
a diverse and inclusive workforce

we collaborate with partners to build
capacity and improve financial wellbeing

we pay taxes in the countries within
which we operate

we pay dividends to our shareholders
1. On a cash profit (continuing operations) basis. Excludes non-core
items included in statutory profit and discontinued operations
included in cash profit. It is provided to assist readers in understanding
the result of the ongoing business activities of the Group. For further
information on adjustments between statutory and cash profit refer to
page 56. 2. Equals shareholders’ equity less preference share capital,
goodwill, software and other intangible assets divided by the
number of ordinary shares. 3. Figure includes forgone revenue
of $105 million, being the cost of providing low or fee-free accounts
to a range of customers such as government benefit recipients,
not-for-profit organisations and students. 4. Total taxes borne by
the Group, includes unrecovered GST/ VAT, employee related taxes
and other taxes. Inclusive of discontinued operations. 5. Includes
individuals who have participated in more than one program
or product (for example, people who have participated in
MoneyMinded as part of Saver Plus are counted twice as they
are included in both the MoneyMinded and Saver Plus totals).
OUR BUSINESS ACTIVITIES
Build a resilient, adaptable and inclusive workforce
with a strong sense of purpose and ethics
86% employee engagement (up from 77% in 2019)
Employed 919 people from under-represented groups
(since 2016)
$4.9 billion in employee salaries and benefits
Increasing the skills and capabilities of our people
providing almost 970,000 hours of training
EMPLOYEE VALUE
Connect with, and invest in, the communities
in which we operate to support growth,
deliver services and develop opportunity
Invested $139.5 million in the community
3
$2.3 billion in taxes paid to government
4
> 61,000 people have been reached through our financial
wellbeing programs MoneyMinded and Saver Plus
5
COMMUNITY VALUE
Improve the financial wellbeing of our customers
Provide funding for lending, helping customers
to own homes and start and grow businesses
and assist businesses to transact, trade and
invest across our region
Great customer experience through flexible
and resilient digital infrastructure
19,839 FTE supporting our retail and commercial
customers, providing $353 billion in home lending and
$91billion in business lending (Australia and New Zealand)
5,291 FTE supporting our Institutional customers, providing
$158 billion in lending
Custodians of $552 billion of customer deposits across the business
CUSTOMER VALUE
Deliver decent returns enabling shareholders
to meet goals
132.7 cents earnings per share
1
6.2% cash return on equity
1
60 cents dividend per share for 2020 with an interim
dividend of 25 cents and a final dividend of 35 cents,
both fully franked
$20.04 net tangible assets per share
2
SHAREHOLDER VALUE
13
ANZ 2020 Annual Report

Our operating environment
The COVID-19 pandemic has fundamentally changed the external environment in which we
operate, and we are adapting in response. A summary of the key external risks currently affecting
our business and our response to them is outlined below.
RISKSOPPORTUNITIES
Social and economic impacts of COVID-19
•Many customers are financially impacted by the
pandemic, and need to adapt to a new environment
•Responding to customer circumstances,
by providing financial support and information
•Working cooperatively with government on
policies to see our customers through the
COVID-19 pandemic and into a period of growth
Limited credit growth
•An economic contraction, lower business confidence and
higher unemployment is limiting credit growth, and many
customer loans have been deferred
•Maintaining our focus on core banking services
to improve customer outcomes, together with
efficient allocation of capital and resources
Regulatory oversight and stakeholder scrutiny
•Challenges arising from regulatory expectations and
higher community standards and expectations
•Rebuilding trust by ‘doing what we say’
•Working cooperatively with regulators,
government and NGOs
•Supporting our customers, employees and
the community through the COVID-19 pandemic
and ensuing recovery period
Technological changes
•Increased competition from digitally enabled competitors
•Increased cyber attacks and attempted fraud
•Changed employment proposition due to stay-at-home
restrictions
•Faster deployment of new and improved digital
services, products and processes will help meet
customer needs for safe and secure banking
•Providing staff with appropriate technology, tools
and equipment to work productively from home
during the pandemic and its aftermath
Demographic changes
•Demand for new home lending and some other
bank products may diminish, particularly as population
growth stalls as a result of the pandemic
•Growing need for more affordable and accessible
housing in the market
•Delivering attractive housing products and
services to grow market share
•Partnering with business, government and
NGOs to provide innovative and practical models
for the development of affordable housing
Increasing importance of ESG
•Failure to meet our ESG commitments and related social
expectations could lead to customer and community
impacts and reduced shareholder value impacts
•Strengthening our ESG standards, policies,
processes, products and services and disclosures
•Growth of sustainable finance products and services
Globalisation
•The COVID-19 pandemic and changing geopolitical
environment has hurt global prosperity and cooperation,
threatening flows of trade, investment and people. This
may challenge supply chains and productivity across
our geographies
•Continued strength of traditional exports, development
of new markets and economic recovery provides
business opportunities in Australia and the region
14
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Banking through times
of change
Image: Andrew Smith
Now in 2020, we continue to adapt the
ways in which we deliver products and
services to our customers.
With the majority of non-branch staff
working remotely from home for much
of the year, we had to implement digital
solutions for almost every aspect
of customer engagement – from
accepting electronic signatures on
bank documents, to holding virtual
customer meetings and events via
phone or video calls.
Over the years, despite the challenges
in our operating environment, serving
customers and providing essential
banking services has been our priority.
ANZ STORY
ADAPTING
Much about the world has changed since
ANZ started out as the Bank of Australasia in 1835.
In the 1800s and early 1900s, customers used only
their ‘home’ branch, with tellers recording account
details in a ledger book using a quill and inkwell.
By the 1920s, Burroughs ledger machines
– akin to typewriters or early adding
machines – were used for calculations,
replacing mental arithmetic.
Then, in around the 1960s, passbook
accounts were designed with ‘black light’
signature panels giving customers the
freedom to bank outside of their
home branch.
Fast forward to 2020, and we have more
than three million customers using our
mobile banking app to check account
balances, view transactions, and send
and receive money.
The COVID-19 pandemic has accelerated
the shift to digital banking, with more of
our customers looking to digital solutions
– be it online or via their mobile phones –
to enable them to do their banking from
the safety of their home.
Changing the way we do things to meet the
needs of our customers isn’t new for ANZ.
More than 100 years ago, the Spanish Flu
pandemic also led to the closure of state
borders, placing restrictions on banking
services.
Staff in ANZ’s Tweed Heads branch in NSW
came up with an innovative way to ensure
money and cheques were still able to
flow, using a cigar box and some rope to
transport the contents across the river to
the Queensland border at Coolangatta.
15
ANZ 2020 Annual Report

We continue to act in response to the ‘spirit and letter’ of the Royal Commission into Misconduct
in the Banking, Superannuation and Financial Services Industry (the Royal Commission).
Last year we developed an integrated response (‘roadmap’)
to act on:
•the lessons we identified from our misconduct and failures
to meet community standards and expectations; and
•the themes raised in our 2018 APRA Self-Assessment report
across culture, governance and accountability.
While there has been significant focus this year on the impacts
of COVID-19, we recognise the importance of delivering on our
roadmap. Work on the roadmap has continued to deliver better
outcomes for our customers, our people and other stakeholders.
We remain committed to learn from our failures and build a bank
that is worthy of the trust and respect of our customers and the
community.
Integrated response to the Royal Commission
and the APRA Self-Assessment
Our Royal Commission and Self-Assessment Oversight Group
monitors the progress with our roadmap. The Oversight Group is
co-chaired by our Deputy CEO and Chief Risk Officer and provides
regular updates on our progress to the Executive Committee and
the Board.
Our roadmap has five focus areas: Culture; Governance and
Accountability; Management of Operational Risk; Remediation;
and Simplification. Executive Committee members have
‘ownership’ of each focus area.
Delivering on our roadmap will give us confidence that the
lessons of the Royal Commission and the themes raised in
our Self-Assessment report have been acted on.
Royal Commission
We made 16 commitments as part of our response to the Royal
Commission, to improve the treatment of retail customers, small
businesses and farmers in Australia.
•W
e have completed 11 commitments to date. We have taken
action on distressed agricultural loans; remuneration of front
line staff; the Retail Banking Remuneration Review (Sedgwick)
recommendations; culture and governance; and reporting on
remediation of existing failures.
•O
f the remaining five commitments, four are dependent on
the finalisation of related legislation, and one is ongoing as we
continue to assess our culture and respond where changes
are required.
•We provide public updates on our progress to implement
the Royal Commission recommendations to the House of
Representatives Standing Committee on Economics. Our most
recent update as at 21 August 2020 is available on anz.com.
Many of the recommendations in the Royal Commission’s
final report require legislative change. We continue to engage
constructively with government, regulators and industry as
they respond to these.
APRA Self-Assessment
Our roadmap is a multi-year program with defined success measures
and targets in place for each of the five focus areas. These are
regularly reviewed and updated to ensure they remain relevant.
Governance and Accountability – The Board has committed to
maintain effective oversight of management’s implementation of
the roadmap and receives quarterly updates.
•Our Banking Executive Accountability Regime (BEAR) outputs
have assisted to clarify and strengthen accountability. BEAR
implementation is aligned with our three lines of defence and
embedded within our governance, control and risk management
arrangements.
•W
e introduced a strengthened Accountability and Consequence
Framework in June 2019, with expanded public disclosure of
senior management consequences. The first annual effectiveness
review of the Framework was completed in February 2020, with
enhancements implemented.
Culture – We are working towards our aspirational culture and
creating an environment where employees are motivated and
'speak up', when they see something wrong. Our Board and the
executive Enterprise Culture Steering Group provide oversight.
•We promote a strong ‘speak up’ culture. Our most recent
internal employee engagement survey showed an uplift of
5% (from 69% to 74%) in response to the question ‘I can raise
issues and concerns in ANZ without fear of reprisals or negative
consequences’.
•We changed how we financially reward, recognise and manage
the performance of our people to reduce the risk of outcomes
that are not in our customers' best interests, and to support
collaboration, team performance and encourage long-term
thinking. Variable remuneration is now a smaller part of
take-home pay.
Becoming a fairer and more responsible bank
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•We are building leadership capability to have regular and better
quality performance and coaching conversations, focusing on
outcomes and behaviours.
•We care about our customers. Our Royal Commission
commitments improve the treatment of retail customers,
small businesses and farmers in Australia.
•Our Disput
e Resolution Principles aim to help us be more
accountable and transparent. We reviewed and updated our
principles in November 2019. The principles apply to our people
and our representatives when managing individual retail and
small business customer complaints, disputes and litigation in
Australia. The principles are available on anz.com.
–

T
he dedicated Indigenous telephone service we established
in May 2019 has answered 6,641calls since inception, with
an average speed to answer of 62 seconds as at
30 September 2020.
–

W
e committed to the Australian Financial Complaints
Authority’s (AFCA) ‘look back’ under its new limits, and to
fully cooperate with AFCA as it resolves disputes. We
established a dedicated team responsible for investigating
legacy complaints, which could be lodged with AFCA until
30 June 2020. 179 legacy complaints were lodged, of which
134 have been closed. The remaining 45 cases are at various
stages of the AFCA process and we remain committed to
resolving these where possible.
Management of Operational Risk – We continue to invest in
a simplified operating environment, improved strength of systems
and processes, improved control effectiveness, and improved
risk capability.
Remediation – Our customer remediation program continues.
An update on our progress is included on page 21 of this report.
Simplification – We have taken strategic action to simplify our
business, products and processes. For example, we completed
the sale of our New Zealand asset finance business, UDC Finance,
in September 2020; and we completed the sale of our Pensions and
Investments business to IOOF Holdings Limited on 31 January 2020.
Strengthening our approach to human rights
We recognise our business activities can have human
rights impacts. To manage these impacts we embed our
expectations across our business activities and relationships
via group-wide policies, training programs, and customer
and supplier screening tools and policies.
This year we commenced a review to strengthen our human
rights policies and processes, aligning our approach more
closely with the UN Guiding Principles on Business and
Human Rights. This has included a review of our minimum
standards for business customer grievance mechanisms and
community engagement, which we expect to complete in
2021. Our approach is being informed by a working group
of external stakeholders, including NGOs, academics, trade
unions, customers, industry associations and human
rights consultants.
1

Modern slavery
We are preparing our first statement in response to the
Australian Modern Slavery Act.
Modern slavery is serious exploitation of people which
undermines or deprives them of their freedom including
forced labour, deceptive recruiting and child labour.
The Australian legislation requires us to identify, assess and
manage risks in our business operations and supply chain.
We have identified three key areas in which to improve
our practices:
•building a
wareness of modern slavery through
training and education;
•policy and process improvements; and
•enhancing our due diligence.
Further detail on our approach to human rights is in
our 2020 ESG Supplement available at anz.com/cs.
1. Their involvement does not infer endorsement of the outcomes of this review or other work carried out by ANZ.
17
ANZ 2020 Annual Report

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Our customers
Supporting our customers through the Australian bushfires and COVID-19 pandemic has been
our primary focus this year, but we have not lost sight of our longer-term priorities – to help
improve the financial wellbeing of our customers and to increase access to more affordable
and sustainable homes.
We are seeking to ensure our products are suited to our customers’
needs and meeting expectations. We are implementing digital
banking solutions designed to improve financial wellbeing, and
protecting customers from those seeking to take criminal advantage
of the shift to digital banking. We are listening to customers and
managing complaints, taking steps to remediate when necessary
and learning from our mistakes. And we are supporting innovative
housing delivery models across the private, public and not-for-profit
sectors to increase the availability and affordability of homes
in Australia and New Zealand.
Supporting customers during difficult times
Financial relief packages were implemented quickly to support
customers affected by the bushfires that devastated parts of
Australia over the summer months. This included the ability to
suspend loan and credit card repayments, temporary interest rate
relief, and early access to term deposit funds without incurring fees.
Specialised ATMs were deployed to impacted centres, and hardship
support was provided through referrals and funding to community
counselling services. Proactive contact was made with small
business customers in affected areas and through our insurance
partner QBE, prioritisation was given to claims, including emergency
payments and temporary accommodation costs.
See page 8 for information on how we are supporting our
customers during the COVID-19 pandemic. For discussion on the
specific supports available to customers experiencing vulnerability
see our 2020 ESG Supplement available at anz.com/cs.
Product suitability
We are helping our customers better understand how to get more
value from their products – such as by showing them how to adjust
their use of a particular product, or identifying when there may be
an alternative product better suited to their needs. Our Product
Suitability team develops and manages a number of customer
contact programs to support improved customer outcomes and
enhance customers’ financial wellbeing. Program results are
reported quarterly to the Board.
Improving customer experience through
digital innovation
We need to ensure our customers can rely on us to provide them
with secure remote access to banking products and services.
Digital platforms such as mobile and internet banking make it
possible for customers to serve themselves, anywhere, anytime and
we are adapting the way we operate to respond to our customers'
changing banking habits.
The COVID-19 pandemic has accelerated the shift to digital banking,
with mobile phone banking our fastest growing channel. We have
provided additional education and support for customers using
digital channels for the first time this year, with 300 extra staff
retrained and deployed to assist.
In Australia, the ANZ App
is helping 3.2 million
customers stay on top of
their day-to-day banking.
Peak usage on the ANZ App is
between 4–6pm, and even during
our quietest time between 2–4am,
we see an average of 51,000 logins
51,000 LOGINS
Peak usage for internet banking
is between 1–2pm, and during our
quietest time between 2–3am, we
serve almost 10,000 customers.
Over the last 12 months we have rolled out several new self-service features to the
ANZ App, including the ability to open new accounts, activate a card, set or change
a card PIN and temporarily block and unblock a card to protect an account from
theft and fraud. To date, more than 22,000 new accounts have been opened, 760,000
debit and credit cards have been activated, 807,700 card pins have been set or
changed, and 45,300 temporarily block and unblock card requests have been
processed through the ANZ App.
The ANZ App won
Money Magazine’s
Mobile Banking App
of the Year 2020
10,000 CUSTOMERS
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We are implementing digital solutions designed to make banking
easier and improve the financial wellbeing of our customers.
In Australia, we launched the ‘set a savings goal’ feature in the ANZ
App to help customers better manage their money and develop
savings habits. Customers receive personalised in-app notifications,
encouraging them to set a goal, stay on track and celebrate
milestones along the way. One in 10 active App users has set a goal
this year. There are now more than 240,800 active or achieved goals
in the App, with 24% of these saving for a house, followed by a
holiday (17%).
In New Zealand, we introduced several new self-service features to
ANZ goMoney and internet banking, including fixed-rate rollovers.
Customers with an existing fixed-term home loan or flexi home
loan, who want to fix their rate, can now request a personalised rate
for their loan facility and term (based on current market rates)
without needing to call us or visit a branch. One third of all home
loan fixed-rate requests are now completed digitally.
We also implemented customer alerts to mobile phones, letting
customers know when they receive a deposit or have a low balance,
assisting them to manage their finances.
Protecting our customers in a digital world
We have seen a significant increase in malicious emails
seeking to take advantage of our customers, with
cyber criminals capitalising on more internet traffic
during the COVID-19 pandemic. Malicious email
tactics include those that claim to have links to maps
of virus outbreaks and related information, tricking people into
downloading malicious software.
The threat landscape is changing at a rapid pace, and we have
responded in kind, moving to leverage automation, machine
learning and advanced analytics. We invest heavily in our cyber
security capability, and remain in a strong position to keep our
systems, data and customers safe from the increasing pace, scale
and sophistication of cyber attacks.
Our threat intelligence and 24/7 Security Operations Centre analyses
millions of data events every day to help keep customers, employees
and the bank safe online. As malicious campaigns are identified, we
implement targeted, automated capability to block them.
During a 30 day period near the start of the pandemic we blocked
around 550,000 COVID-19-themed emails, and during July 2020 we
blocked over 12 million malicious emails alone, an increase of more
than 8 million emails compared to October 2019.
In the context of the changing threat landscape, ANZ did report a
major security event to the Reserve Bank of New Zealand and the
Australian Prudential Regulation Authority in the financial year 2020,
as a result of a distributed denial of service
2
attack in New Zealand.
While this attack was similar to what was experienced by other
organisations, we were able to proactively detect the activity and
mitigate the risks through preventative security controls, resulting in
minimal disruption to our operations and customer services, and no
impact to customer data.
INCREASING THE VALUE CUSTOMERS RECEIVE FROM OUR PRODUCTS
HIGHLIGHT
Our Concession Account Suitability program contacts customers in receipt of eligible Centrelink or Veterans’ Affairs benefits with
an offer to move to a low-cost basic bank account. To date we have contacted more than 335,000 customers (210,000 this year) with
more than 14,600 taking up the offer to move to a basic account. From 19 March to 22 July the program was paused as we shifted
our focus to supporting customers impacted by COVID-19.
Our Persistent Credit Card Debt program identifies and contacts credit card customers who are carrying persistent debt
1
on their
card to help them pay their debt faster. Customers are offered financial education, and the opportunity to close their card and repay
the remaining debt at a lower interest rate. To date, we have contacted 18,195 customers with 1,450 customers taking up the offer.
This program was also paused while we focused on supporting customers impacted by COVID-19.
1. Where for at least the last 12 months a credit card has over 80% of the credit utilised and the customer has been paying 2–3% of the outstanding balance on average each month.
2. A distributed denial of service (DDoS) attack is an attempt to make an online service unavailable by overwhelming it with traffic.
MAKING SMALL BUSINESS LENDING EASIER
HIGHLIGHT
This year we launched ANZ Online Business Lending. The
platform provides conditional approval for up to $200,000 in
unsecured lending in as little as 20 minutes and access to
funds within four days. Customers using ANZ Online
Business Lending have access to fixed-and variable-term
loans as well as overdraft facilities.
As the economy recovers from the impacts of COVID-19,
helping small businesses to access capital in a fast and
convenient way is critical.
According to Mark Hand, ANZ’s Group Executive, Australia
Retail and Commercial Banking, “While the current
economic crisis will be devastating for some businesses,
there has also been a great deal of resilience and some will
be able to come out the other side even stronger. We’re also
starting to see new businesses being created to meet
emerging customer needs.
“This sophisticated new technology is deeply integrated
with ANZ’s existing platforms to provide our customers with
a quick, simple and secure lending experience so they can
spend more time running and growing their business.”
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ANZ 2020 Annual Report

Measuring customer experience
One of the ways we measure the experience of our customers is
through our strategic Net Promoter Score (NPS). NPS enables us to
gauge whether we are meeting customer needs and expectations
and how we are performing relative to peers. It is measured by
asking customers how likely they are to recommend ANZ (on a 0–10
scale) and is calculated by subtracting the percentage of detractors
(those who give a score of 0–6) from the percentage of promoters
(those who give a 9 or 10).
While our performance relative to peers improved for our Australian
Retail customers, we failed to improve relative to peers for our
Australian Commercial and New Zealand Retail and Commercial
customers. Our Institutional ranking remains at number one in both
Australia and New Zealand.
Managing customer complaints
Internal Dispute Resolution (IDR) plays a vital role in protecting
customers. Fair and robust IDR assists with recognising and fixing
problems that arise, both at an individual customer level and across
the business. It allows us to ‘hear’ where changes need to be made
and serves to inform us when we are not meeting customer or
community expectations.
In 2019 we commenced a program to review and improve our IDR
policies, systems and practices, with program updates provided to
the Board and ASIC. Capability and quality improvement initiatives
support our objectives of fair, consistent and well communicated
complaint outcomes to our customers.
A foundational element of the IDR program was the establishment
of a Customer Resolution portfolio in early 2020, which is dedicated
to working with our customers when they have a problem:
•senior executive leadership and complaint management
expertise has been introduced to drive IDR uplift, along with
supporting governance, data, analytics and transformation
capabilities.
•the por
tfolio has been focused on improving the way we handle
our customers' complaints in order to solve complaints earlier and
improve the overall complaint resolution timeframes. Additional
complaint handling staff have been also recruited to support
timely complaint resolution.
•w
e appointed a Vulnerable Customer Lead to continue the
development of the Divisional vulnerable customer strategy and
provide an important link as we support our customers during
the COVID-19 pandemic and other life changing events.
SCAM ASSIST
CHALLENGE
1. Roy Morgan Single Source, Australian population aged 14+, Main Financial Institution, six-month rolling average to September 2020. Ranking based on the four major Australian banks.
2. DBM Business Atlas. Base: Commercial Banking (<$100 million annual turnover) Main Financial Institution customers. Six-month average to September 2020. Ranking based on the four major
Australian banks. 3. Peter Lee Associates, 2020 Large Corporate and Institutional Relationship Banking surveys, Australia. 4. Retail Market Monitor, Camorra Research, six-month rolling average
to September 2020. Ranking based on the five major New Zealand banks. 5. Business Finance Monitor, TNS Kantar Research. Base: Commercial ($3 million – $150 million annual turnover) and
Agricultural (>$500,000 annual turnover) customers. Four-quarter rolling average to Q3 2020. 6. Peter Lee Associates, Large Corporate and Institutional Relationship Banking surveys, New
Zealand 2020, ranked against the Top 4 competitors.
During the COVID-19 pandemic we have seen an increase
in customers falling victim to scams, particularly remote
access and investment scams. Digital fraud attempts have
also increased.
In addition, we have seen a number of customers trying to
supplement lost earnings through investments purported
to be high-yield options, such as crypto-currencies.
In 2020, our Australian Scam Assist team investigated
over 5,000 individual scams impacting our Australian Retail
and Commercial customers and recovered approximately
$25 million on behalf of some of those impacted.
As an industry, we face significant challenges in helping
our customers not fall victim to scams. We work with law
enforcement agencies, collaborating on a number of
operations to identify and disrupt Australian based actors,
particularly via the Fintel Alliance. Efforts to break-up criminal
syndicates are focused on three key actions: customer and
employee education; improved detection capabilities; and
ongoing support of law enforcement disruption activities.
Retail: ranked 4th
4

(no change from 2019)
Commercial and agricultural:
ranked 5th
5

(no change from 2019)
Institutional: ranked 1st
6

(no change from 2019)
Retail: ranked 3rd
1

(up from 4th at end of 2019)
Commercial: ranked 4th
2

(down from equal 3rd at end of 2019)
Institutional: ranked 1st
3

(no change from 2019)
NET PROMOTER SCORE
AUSTRALIA
NEW ZEALAND
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7. In certain instances:
• we make a payment to one of our community partners in lieu of a payment to a customer account. As at 30 September 2020 payments were made to ~238k accounts totalling $744k
• we pay the customer via cheque. As at 30 September 2020 cheques had been issued for ~521k accounts totalling ~$59m. A portion of the cheques remain unpresented
• we offer certain customers access to payment via a payment portal. As at 30 September 2020 offers to access payment via payment portal have been issued for ~10k accounts totalling ~$379k
•

w
e transfer payments through a process for unclaimed monies (includes payments for de-registered companies). As at 30 September 2020 payments transferred via this process have been
made for ~2k accounts totalling ~$1m.
8. The matter is considered complete when all customer payments have been processed. In some cases, remediation teams may continue to close out non-customer payments,
documentation and governance requirements beyond this point.
Customer remediation
We are delivering on our commitment to fair, responsible and
efficient customer remediation.
In an effort to fix our past mistakes as quickly as possible, we have
increased remediation staffing levels significantly since 2018. Across
the Group there are now over 1,200 staff working on customer
remediation, with approximately half in dedicated remediation teams.
Our Australian Responsible Banking team is resolving identified
fee or interest discrepancies with over 5.2 million Retail and
Commercial customer accounts. Since April 2018, we have
refunded approximately $223 million across approximately
2.9 million customer accounts
7
.
Our pace of remediation has been steadily increasing and over
the last 12 months we have remediated approximately 1.8 million
customer accounts, compared to approximately 1.1 million over
the 18 months to September 2019.
8
In Australia, we have an education program to share ‘lessons learnt’
and to highlight to staff the impacts on customers when we fail to
get it right. The program is aimed at raising awareness and fostering
a culture where employees are clear on the role they play in
delivering quality customer outcomes and safeguarding our
customers’ interests.
The Group’s customer remediation activities are regularly reviewed
by the Board. Directors are provided an overview of the status of
remediation matters; regulator engagement; repayments and
provisioning; and reviews underway to identify new matters.
More than 500 of these
7, 0 0 0 customers chose to
open an everyday account.
Over 10 0 of our passbook customers
set up a recurring transfer to move
their pension income into their
everyday account.
Improving our IDR practices
We are continually trying to find ways in which we can
encourage feedback in order to provide better experiences
and fair outcomes for customers. Some of the improvements
we are working on include:
•development of a new and improved complaints recording
and management system
•establishment of a Systemic Issues Management function
with a focus on using complaint data and advanced
techniques such as machine learning and artificial intelligence
to identify issues early
•continued investment in the capability of our people and the
efficiency of our processes to help customers resolve their
complaints as quickly as possible.
Further information on customer complaint management
is in our 2020 ESG Supplement available at anz.com/cs.
Assisting potentially vulnerable customers
to access their money
At the start of the COVID-19 pandemic around 7,000 of our
customers only held a passbook account at ANZ. These
accounts do not have the option of an ATM card or access to
internet or phone banking. Customers with these accounts
are typically over 70 years old with their pension income paid
into this account.
We recognised that our customers may have had difficulty
accessing their money in the event of a temporary branch
closure, or if they wanted to self-isolate. Our bankers were
able to reach over 5,000 of these customers to check in on
them considering their specific vulnerability during the
COVID-19 pandemic. We also sent letters with information
on everyday accounts with a Visa debit card that can be
used for online/phone shopping, and ATM/store withdrawals.
It also includes access to internet banking and no monthly
account service fees.
We developed a new process enabling customers to open
an everyday account from their home entirely over the
phone. We also implemented a technology change to
enable passbook customers to establish a recurring transfer
by phone to automatically transfer regular income, such
as pension payments, from their passbook account
to their new everyday account.
21
ANZ 2020 Annual Report

Improving the availability of suitable and affordable housing
Housing-related lending is a key activity of
the bank. We lend to home owners and
investors, and for property development
and infrastructure. We believe we can play a
role in helping improve the availability and
affordability of housing, including support
for innovative housing delivery models across
the private, public and not-for-profit sectors.
At the end of 2018 we committed to fund
and facilitate $1 billion of investment
by 2023 to deliver around 3,200 more
affordable, secure and sustainable homes
to buy and rent in Australia. We have
exceeded this target.
1
In addition to the $1.02 billion of investment in
Australia, we have also funded and facilitated
around NZ$1.35 billion to support the delivery
of social and sustainable housing across
New Zealand.
We have continued to build our housing
supply pipeline through direct engagement
with our clients (new and existing),
supporting innovative models to finance
new supply.
This year we have:
•jointly arranged two additional bond
issuances for the Commonwealth’s
National Housing Finance and Investment
Corporation (NHFIC), including the largest
social bond for housing in Australia
($562 million)
•arranged bonds for Kāinga Ora (Housing
New Zealand Corporation) to support the
delivery of more social and sustainable
housing (jointly NZ$1 billion; solely
NZ$300 million)
•supported the first Assemble Model,
designed to bridge the gap between
renting and owning a home to market
2
•invested in the development of a
Specialist Disability Accommodation
(SDA) pipeline
•helped build the case f
or institutional
investment in long-term rental housing
through the backing of a range of
‘build-to-hold’ projects.
We have committed to increase our
target to fund and facilitate $10 billion
of investment by 2030 to deliver more
affordable, accessible and sustainable
homes to buy and rent in Australia
and New Zealand.
1. Due to the lag between financing and commencement of development, number of homes will be audited and disclosed once projects have been delivered. 2. The Assemble Model is a
new ‘build-to-rent-to-own’ hybrid model that bridges the gap between renting and owning a home. It offers residents a five-year lease with the option to purchase their home at the end of
the lease. The purchase price is fixed from the start of the lease, giving residents a set goal to save towards and mitigating the risk of being priced out of the market during the rental period.
DELIVERING ACCESSIBLE HOUSING OPTIONS TO MARKET
HOUSING
As part of the roll-out of the National
Disability Insurance Scheme (NDIS) in
Australia the government has contributed
funding to Specialist Disability
Accommodation (SDA) to encourage
investment in the development of new
high-quality housing for eligible people.
Our Corporate and Institutional Health
team is developing its expertise and
capacity to ensure our ability to support
this much needed housing supply to
market. The benefits to help deliver better
connection and opportunity for people
in SDA are key drivers of our interest in
investing in this emerging asset class.
Over the course of this year, ANZ has
provided credit approved commitments
in excess of $100 million to the SDA sector
and closed its first transactions, partnering
with our clients to deliver SDA housing
and to aid them to grow a pipeline of
new homes across the country.
We have also worked with our existing
property clients to facilitate the inclusion
of SDA as a pre-sale element in their
property developments. This has allowed
them to partner with developer, Summer
Housing, to include disability housing in
mixed developments, providing residents
with access to services and supports.
Our support is broader than debt capital,
with the Summer Foundation receiving
a 2019/20 ANZ Community Grant to
support the roll-out of their Tenancy
Matching service.
“I am thrilled to be assisting people to
navigate their own housing journey,
courtesy of the ANZ Community
Foundation, which funded a Summer
Foundation project to deliver housing
workshops in Tasmania for people with
disability and their families,” said Liz Ellis,
Summer Foundation convenor.
The workshops helped participants to
identify where they wanted to live and
to consider their specific housing needs
and preferences. They also provided
guidance on the different housing
models available – including SDA
(through the NDIS) and affordable housing.
Summer Housing project
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In the last 12 months,
we have lent over
NZ$18b, helping
more than 55,000
customers in New
Zealand buy a home.
In the last 12 months,
we have lent over
$60b, helping
more than 170,000
customers in Australia
buy a home.
LINKS TO 2020 GROUP PERFORMANCE FRAMEWORK
Despite the serious challenges faced by the banking sector and community this year, our actions over previous years to simplify
and strengthen the bank provided us with the capacity to support our customers at a time of need and strengthen our long-term
relationships. While the focus has been on assisting customers in need, there has also been opportunity to build new customer
relationships and enable more digital services that have been especially valued in a restricted COVID-19 environment. Institutional
performance in key customer satisfaction/relationship strength surveys continued to be a highlight, and a new online payments
experience has been processing ~1 million payments daily and providing digital self-service for Institutional customers.
See section 4.5.3 of the Remuneration report for more details.
INVESTING IN SOCIAL AND AFFORDABLE HOUSING IN NEW ZEALAND
HOUSING
Following the wellbeing bonds we arranged for Housing New Zealand Corporation in 2019, this year we jointly led NZ$1 billion
of bond issuances and a sole placement of NZ$300 million for Kāinga Ora – Homes and Communities, to deliver an additional 8,000
new public housing and transitional housing places. All new homes will be built to 6 Homestar, meaning they will far exceed
Building Code (NZ) standards for warmth, dryness and health.
As part of Kāinga Ora’s ongoing build program, already more than 3,000 public housing homes have been built with this rating
around New Zealand. Not only are these new homes warm and dry, they also contribute to improved financial wellbeing of tenants,
with energy savings estimated to be NZ$570 per household every year.
Kāinga Ora brings together the KiwiBuild Unit, Housing New Zealand and its development subsidiary HLC, and is designed to enable
a more cohesive approach to delivering the government’s priorities for housing and urban development in New Zealand.
23
ANZ 2020 Annual Report

CUSTOMER STORY
OvOeriwW
General Manager, Richard Seymour recalls
the moment he first realised they were in
for tough times.
“I have a really vivid memory of when the
pin was pulled on the Melbourne Grand
Prix in March and I knew we were in for a
world of change.”
An ANZ customer for almost two decades,
Richard found himself drawing on his
strong relationship with the bank,
developing a roadmap to guide the
business through the pandemic.
“With the help of ANZ and our business
advisor, we put together a vision which saw
us quickly pivot to engaging directly with
customers through an online platform. In a
matter of months, we’ve been able to grow
what was around 5% of direct sales to
customers, to around 35%.”
Mount Zero’s customers have always valued
its sense of brand, the foundation of which,
according to Richard, is its proud heritage
as a family business that values
sustainability and supports ‘local’.
“This has really resonated with our
customers during the pandemic, as they’ve
been able to reach out to a business
directly that was already quite tangible to
them, and not just a paper wrapper on a
product on a supermarket shelf. They know
who we are, where we are from and what
we stand for, and they’ve supported us for
these reasons.”
“As horrible as the outlook is for many small
businesses due to the pandemic, it has
presented an opportunity to drive change
and come out stronger on the other side, and
for that, we’re really grateful,” says Richard.
Opportunities arise in
challenging times
Mount Zero Olives is a small,
family-owned and operated
business in the Grampians in
regional Victoria, producing
and processing certified
organic olives, olive oil
and table fruit.
They also partner with
local growers to produce a
range of pulses and grains.
Supplying predominantly
to restaurants throughout
Australia, the business
has been hit hard by the
COVID-19 pandemic.
24
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Our divisions
Australia Retail and Commercial
Operating environment
Between drought, bushfires and COVID-19 it
has been a tough year for the economy and
many of our customers.
Unprecedented levels of fiscal stimulus
have so far sheltered Australia from the
worst economic impacts and some areas of
the economy are seeing opportunity, such
as online retail, home exercise equipment
and pet supplies.
Retail customers are accelerating their
shift to online and mobile banking, limiting
branch visits and moving away from cash,
credit cards and personal loans. Instead
they’ve been saving more, reducing debt
and refinancing their mortgages.
Although Australia is yet to return to normal
activity, businesses are increasingly adapting
to the new environment. Many of our
commercial customers have proactively
managed costs, been conservative with
capital, and innovated during this crisis.
While we face headwinds from the
economic contraction, lower business
confidence and higher unemployment, we
are focused on supporting our customers,
adapting to the changing environment,
and preparing for a more digital future.
Strategy and focus
Our goal is to be a simpler, more efficient,
well-managed business, that is the bank
of choice for Australian home owners and
business owners. Our priorities are to
continue to fix our past mistakes, grow
strategically and sustainably, reshape our
business for a post-COVID world and
prepare for a digitally-enabled and highly
automated future. We are investing in the
business through the economic cycle while
continuing to reduce costs to a more
sustainable level.
Fixing past mistakes and returning money
owed to customers quickly remains an
important focus. Since April 2018 we have
remediated approximately 2.9 million
customer accounts and issued refunds
of approximately $223 million.
We further simplified the business,
including by introducing a more targeted
approach in the Financial Advice business
to focus on affluent and high net worth
clients, and announced the sale of 1,300
offsite ATMs to Armaguard.
Across our branch network, we invested
heavily to open digital branches providing
customers with new self-service options,
including smart (deposit taking) ATMs and
business cash deposit machines. We also
restored momentum in the home loan
book growing it by ~$10 billion in the
year to $275 billion.
We launched our new Online Business
Lending platform providing small businesses
with conditional approval for up to $200,000
in unsecured lending in as little as 20 minutes,
and access to funds within four days.
Performance highlights
Our response to the shifting environment
has had a very real short-term financial
impact – on revenue, profitability and returns.
Cash profit declined by 27% in 2020
compared to the prior year. Through
continued discipline, costs remain
well managed, flat year on year.
Mortgage sales volumes are back to 2017
levels, and Retail and Commercial deposits
are up by $12.7 billion and $13.9 billion
respectively. With lower levels of demand
for credit, commercial lending was flat.
In response to the pandemic we have
provided assistance to our retail and
commercial customers, including deferrals
on home loans, personal loans, credit cards,
business loans and asset finance as well as
temporary overdraft increases. Around
95,000 home loans and 23,000 business
loans received repayment deferrals. We also
increased the size of our hardship team and,
diverted branch staff to support the 65%
increase in customer calls for support.
We contributed to communities through
our bushfire financial relief package for
customers, donated more than $1 million
to support customers and communities
impacted by the fires, and extended our
special paid leave for employees who
volunteer in emergency services.
We received a number of awards, including
Money Magazine’s Mobile Banking App of
the Year, ANZ Canstar’s Small Business Bank
of the Year Award for the third consecutive
year and Agribusiness Bank of the Year
Award. ANZ Private Bank won a number
of awards, notably ranking #1 in four
categories in Euromoney’s peer-voted
Private Banking and Wealth Management
2020 Survey, including Best Overall.
"This year has been an extremely tough time
for our customers. We know not every business
will survive but we also know there is opportunity
for others. We will be working closely with
our customers – no matter their situation –
to understand their need and to find solutions
that will help them succeed in the future."

Mark Hand, Gr
oup Executive Australia
Retail and Commercial Banking
25
ANZ 2020 Annual Report

Institutional
Operating conditions
The external environment was challenging
in 2020, particularly in the second half as
COVID-19 impacted the global economy
and supply chains. The pandemic led to
sharply lower levels of activity in every
geography and many sectors, and introduced
significant uncertainty about the future for
our Institutional customers. These immediate
challenges were also conflated with disruptive
structural change and geopolitical issues.
At the same time, these disruptions resulted
in strong activity in our markets and lending
businesses, which responded swiftly to market
volatility and unprecedented demand for
liquidity. With a presence in 33 markets
globally, our diverse business was prepared
to support our customers and staff in our
home markets and internationally.
The pandemic has increased competition, and
record low interest rates continue to narrow
margins and place pressure on revenue.
Slower global demand and competition
led to lower trade finance volumes and
revenues. In the face of these conditions,
Institutional continues to sharpen its focus
on the right customers in priority sectors
and further invest in digital, data and
automation to strengthen the business.
Strategy and focus
In 2016, Institutional laid out a strategy to
build the best bank for clients moving goods
and capital across the region. Our aim was to
be simpler for our customers and employees,
resilient through the cycle and increase return
on equity. We became more targeted and
focused on customers who would benefit
from regional growth, had a link to our home
markets, valued our network and were in
industries where ANZ had strong expertise.
Four years on, this strategy is well
progressed. We have reshaped the business,
diversified our revenue streams with greater
emphasis on lower capital-intensive products,
consistently reduced operating costs, and
strengthened our culture, while clearly
establishing our position as the leading
relationship bank in the region.
In the early days of the pandemic we were
able to move quickly to support our key
customers, and in the 6 months to end-
March provided $16 billion
1
in additional
lending globally. We maintained a
disciplined approach to pricing for risk
and capital management, and undertook
rigorous stress testing to manage credit risk.
Lending volumes declined in the second
half as global capital market conditions
improved, enabling customers to access
debt and equity markets and repay bank
debt. Credit Risk Weighted Assets ended
the year broadly flat.
Through the pandemic, our digital channels
came to the fore, and payment volumes
increased 9.4% year on year. We supported
hundreds of customers working from home
by providing secure remote access via web
and mobile, and helped reduce customer
net losses from fraud by 62%.
We were recognised for supporting our
customers, and we maintained our leading
market positions across key geographies
(#1 in Australia and New Zealand
2
, #5 in
Asia
3
for market penetration). This included
#1 for overall relationship quality in Asia
3

and #1 for Net Promoter Score in
Australia and New Zealand
2
.
Performance highlights
Institutional continued to deliver the benefits
of a simpler, more disciplined and resilient
business in 2020, delivering 1% cash profit
growth compared to the prior year despite
tougher economic conditions. Net loans and
advances declined 4% after peaking in the
middle of the year, while customer deposits
grew 3%.
The results demonstrated the value
of customer, product and geographic
diversification within the business. In a
low interest rate environment, Transaction
Banking and Corporate Finance revenue
declined in 2020, down 15% and 1%
respectively. Markets revenue increased by
49%, as customers sought to manage their
financial risks amidst heightened volatility
in Global Markets.
Geographically, lower profit in Australia was
offset in Asia Pacific, Europe & America and
New Zealand, mainly due to higher markets
revenue as customers managed foreign
exchange, interest rate, credit and
commodity price risks.
The Division’s focus on productivity
contributed to another year of cost reduction,
with lower full time equivalent staff, property
efficiencies and reduced discretionary spend.
Credit charges increased with tougher
economic conditions and lower forecast
economic growth, however, the credit
quality of the book remains strong.
Through 2020, ANZ Institutional helped
arrange the largest social bond by an
Australian issuer for the National Housing
Finance and Investment Corporation, as well
as $72 billion in funding for the Australian
Government’s COVID-19 support package.
1. Institutional Gross Loans and Advances excluding FX and Markets 2. Peter Lee Associates 2020 Large Corporate and Institutional Relationship Banking surveys, Australia & New Zealand.
3. Greenwich Associates 2019 Asian Large Corporate Banking study
“In Institutional, our global network positioned us
well to move quickly to respond to the pandemic
and support our valued, long-term customers.
We also mobilised our digital channels to manage
a sharp rise in transaction volumes, while working
closely with our customers to keep them cyber-safe.”
Mark Whelan,
Group Executive Institutional
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Operating conditions
Throughout the COVID-19 pandemic New
Zealand’s economy remained in an enviable
position relative to many others.
The housing market responded to record
low home loan rates, while being shielded
from the economic slowdown by the
mortgage payment deferral scheme and
the government’s wage subsidy scheme.
Surveyed business activity indicators
have increased since February 2020, now at
similar levels to pre-pandemic, brightening
the outlook for near-term growth.
However, uncertainty, rising unemployment
and winding down of income support
measures will cause some discomfort,
and the impact of the closed border will
play a role in the economy for some time.
Helpfully, and providing some offset,
New Zealand’s export prices are holding
up, indicated by ongoing resilience in
export prices relative to other commodities
and strong operational models in our
core industries.
The Reserve Bank of New Zealand has
taken a medium-term outlook with a
current focus on quantitative easing.
They confirmed increased capital
requirements, originally due to start taking
effect from July 2020, have been delayed
by at least one year.
Business focus
We remain committed to delivering great
customer experiences and outcomes.
ANZ New Zealand implemented key
government-led initiatives in response to
COVID-19 and a major program of reduced
fees, charges and interest rates.
New Zealand
1. Adjusting for the sale of UDC
“ As New Zealand’s largest bank, we’ve been in a unique
position to assist thousands of businesses and many more
individuals through what has been a tough year for many.
Despite a challenging year, I’m proud that we’ve been able
to continue to support our customers, our communities
and our people.”
Antonia Watson, Chief Executive Officer New Zealand
ANZ led the waiving of Merchant Service
Fees on existing customers’ contactless
debit capability for a limited time and
permanently reduced them after the
COVID-19 lockdown.
Since the pandemic we have provided
financial help to around 43,000 personal,
home and business loan customers through
repayment deferrals, restructures or
adjustments, covering lending of around
NZ$27 billion.
Data and digital initiatives included the
launch of our electronic verification and
use of data to identify customers who
may be experiencing hardship.
We continued refining our physical
presence to fewer, improved branches
and reduced hours for selected regional
branches, enabling an efficient and
simplified operating model. ANZ New
Zealand is part of an industry-led trial
for banking hubs in regional areas.
We completed the sale of UDC Finance
Limited to Shinsei Bank in line with our
simplification strategy.
We announced the Bonus Bonds Business
would close to new investment and that
we intend to start winding up the scheme
by the end of October 2020.
In the environmental space, ANZ provided
public submissions to government, completed
New Zealand’s first sustainability-linked loan
and arranged the country’s first inflation-
linked sustainability bond.
We aided farmers’ decision-making through
proprietary digital tools including our dairy
and red meat dashboards and a geospatial
tool that analyses weather, soil and
contour data.
Performance highlights
Despite difficult conditions, we maintained
a leading position in core banking products
with ~31% share of mortgages and ~33%
share of households deposits (August 2020)
and ~22% share of KiwiSaver (June 2020).
Net loan and advances were flat for the year,
underlying
1
net loans and advances grew
by 3%, driven by home lending growth of
6%, and the housing market has remained
reasonably resilient.
Customer deposits grew 9% aided by
inflows from the government’s wage subsidy
scheme and increased system liquidity
following quantitative easing measures
from the RBNZ.
Revenue was impacted by interest-margin
pressure from record low interest rates,
simplifying and reducing fees, and a range of
fee waivers initiated to support customers.
Higher credit impairment charges had a
material impact on our results with a
substantial increase in collective provisions,
recognising the possible impacts of future
economic and operating conditions.
Despite a trying year, our staff continued
to play a role in their communities. Many
helped to plant more than 25,000 trees
across New Zealand as part of our
partnership with Sustainable Coastlines,
and volunteered over 6,000 hours.
Our payroll giving scheme allocated over
NZ $650,000 to 60 charities, and staff
donating to the ANZ New Zealand Staff
Foundation grew from 24.5% to 25.9%.
ANZ donated a total of NZ$2m to Women’s
Refuge, Age Concern New Zealand and the
Salvation Army’s foodbank network to
support people through COVID-19, and
NZ$1m to grassroots cricket and netball
clubs and initiatives nation wide.
27
ANZ 2020 Annual Report

LIFE BEYOND THE BRANCH
EMPLOYEE STORY
1. Requests for COVID-19 assistance received between 1 March 2020 and 31 May 2020.
Our people
Much of our focus this
year has been on mobilising
resources to support the
changing needs of our
customers and business
during the COVID-19
pandemic.
The ‘Beyond the Branch’ program was launched earlier this year and assists
branch employees to move to business areas requiring additional resources
to meet increased customer demand as a result of COVID-19.
Many branch employees have moved
into the Collections and Hardship team
as part of the program. We have also
set up ‘hubs’ in Western Australia, with
Queensland and New South Wales soon
to follow, so as to ‘tap into’ the capability
of branch staff outside of Victoria.
Solarah Jupp has recently moved
from a branch into the Collections
and Hardship team.
“I originally applied for 'Beyond the
Branch' as I believed the roles suited
my skillset and I was really looking for
a new challenge. Going through this
experience has meant the world to me
– it has broadened my career horizons
far beyond what I could have thought
possible in branch. I feel excited for the
future and I’m looking forward to the
next challenge.”
As at 30 September, 197 'Beyond the
Branch' roles have been filled, with roles
available in every state in Australia.
We benefit from transferring our
branch employees’ customer focus
and experience to the areas of greatest
customer need – including our Customer
Contact Centre, Customer Service
Operations and Customer Resolution
– and employees benefit from the
opportunity to diversify their skillset
and broaden their career.
The program involves:
•identifying the in-demand roles
that are a match for branch
employees;
•distr
ibuting these roles across
Australia, rather than having them
based in our Melbourne head office;
•actively promoting and providing
visibility of the opportunities; and
•soliciting the suppor
t of senior
branch staff to advocate for the
program and actively support
people moving into these roles.
While we have continued to develop the
culture, capabilities and behaviours needed
to deliver our strategy, our top priority has
been to protect our people, keeping them
safe and well. As discussed on pages 8–9,
our Group-wide COVID-19 response plan
includes supports for vulnerable employees,
employees working from home and those
on the frontline supporting our customers.
Mobilising our resources
to meet demand
During March we began to experience a
dramatic increase in calls to our dedicated
hardship team in Australia. We received
around four years worth of hardship
applications in the space of only three
months as almost 94,000
1
customers
impacted by COVID-19 sought assistance.
In response, we developed COVID-19 ‘Talent
Mobility Principles’, the purpose of which
was to ensure we had ‘the right people, in
the right locations, at the right time’, to
meet customer and community needs
during the pandemic.
A campaign was run across Australia,
New Zealand and India to help employees
self-identify their skills and desire to move
into critical areas of the business, such as
our Customer Contact Centre. Over 1,000
hours of customised virtual training was
delivered to over 700 staff across our
Customer Service Operations team and
branches to assist them to move temporarily
to in-demand roles. We have also recruited
approximately 185 new hardship consultants
and provided over 23,000 hours of training
to our Customer Connect (Hardship) team
to ensure ongoing support for our customers
on a COVID-19 assistance package.
28
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Culture
The success of our strategy is dependent
on embedding a culture focused on
delivering great customer outcomes,
making things simpler and always learning.
This work is underpinned by our purpose
and values.
We are taking steps to improve our culture
and are enhancing how we track and
measure our progress. Our Enterprise
Culture Steering Group (ECSG), chaired by
the CEO and whose membership includes
other members of the Executive Committee,
plays a critical role in guiding our efforts
by helping us to understand our cultural
strengths and development areas.
This year the ECSG has considered the
way our organisational culture has changed
during COVID-19, including the opportunities
and risks created by the pandemic – for
example, cross-team collaboration and a
focus on execution were identified as
strengths that have enabled us to deliver
positive customer outcomes.
Culture assessments
Our Internal Audit group has continued
to conduct culture reviews throughout the
year, supporting businesses and functions
to understand their culture and impact
on ANZ’s aspirational and risk culture.
Assessments are undertaken through a
combination of quantitative and qualitative
analysis, including surveys, focus groups
and interviews. Since 2016, we have
conducted nearly 2,000 focus groups and
interviews and more than 25,000 employees
have participated in culture surveys.
Once complete, a report on cultural
themes, including underlying issues and
related impacts, is provided to the business.
The business must then develop an action
plan to mitigate any identified cultural
challenges. The plan is monitored and
the effectiveness of the actions in shifting
towards the desired culture is reviewed
before it is ‘closed’.
Internal Audit completed 18 culture reviews
in 2020, 11 of which were re-assessments.
Actions undertaken to address cultural
challenges have generally been effective,
particularly where leaders have taken
ownership of outcomes. There are
some reoccurring themes with respect
to challenges, and we are seeking to
tackle these through initiatives focused
on leadership engagement and change
programs; networking sessions to improve
collaboration and role clarity across functions;
and career development opportunities
such as secondments and ‘job shadowing’.
Accountability and
Consequence Framework
In 2020, we continued to strengthen
and embed the Accountability and
Consequence Framework (A&CF). The
Consequence Review Group (CRG), which
is chaired by the CEO, supports the Board
in monitoring the implementation and
ongoing effectiveness of ANZ’s A&CF, being
cognisant of its impact on the culture of
ANZ. The CRG reviews material events,
accountability and the application of
suitable consequences where appropriate.
See section 6 of the Remuneration
report for more details.
Changes to remuneration
As part of the Group’s Reimagining Reward
program effective 1 October 2019, we made
adjustments to the remuneration mix for
staff, which included replacing individual
variable remuneration for around 80% of
employees with variable remuneration
based on the overall performance of the
Group. These changes respond to many of
the concerns about ‘bonus culture’ raised in
the final report of the Royal Commission,
and form part of the wide-ranging reforms
for 2020 regarding how we reward, recognise
and manage the performance of employees.
We are implementing the recommendations
from Stephen Sedgwick’s ‘Retail Banking
Remuneration Review’, which is focused
on strengthening the alignment of retail
bank incentives, sales practices and good
customer outcomes. Recommendations
ANZ is delivering independently are now
100% complete and were implemented
ahead of the October 2020 deadline. We
will continue to work with industry to
progress the remaining recommendations.
Management provides regular updates to
the Board Human Resources Committee
on progress.
In April, our engagement
result increased to 86%
(up from the 77% in 2019),
with increases across all
areas of the bank. This is a
testament to the resilience
of our people and their
ability to adapt to the
new pressures
and challenges
presented by
COVID-19.
94% of employees said
ANZ is supporting them
during the pandemic, and
95% said senior leaders
have been
communicating
effectively.
In response to COVID-19
we launched the ‘Team
Health Check’, a new
team wellbeing survey,
and we continue to run
regular pulse surveys to
measure engagement
– results have remained
relatively stable
since April.
Employee engagement
up 9
points
29
ANZ 2020 Annual Report

LINKS TO 2020 GROUP PERFORMANCE FRAMEWORK
In a challenging year, significant capacity and attention was focused on managing through COVID-19 and the Australian bushfires,
however, strong progress was still made on key priorities including embedding our new reward framework, building strategic and
leadership capabilities, and strengthening governance, accountability and culture. Highlights include a nine point increase in our
employee engagement score, reflecting our strong support for employees and clear senior leader communication during the
pandemic, as well as the enablement of significant increases in our remote working capacity.
See section 4.5.3 of the Remuneration report for more details.
Building workforce capability
To help our leaders support their teams
through COVID-19, we provided additional
guidance aligned to two of our desired
leadership behaviours (referred to as our
‘New Ways of Leading’), ‘Creating Shared
Clarity’ and ‘Empowering People’. We want
our people leaders to display these behaviours
in order to inspire and engage their teams,
helping them to deliver on the bank’s
strategic imperatives. When we surveyed
our people in July, we saw an increase in
leaders modelling all of these behaviours.
We introduced a ‘Leading Through Change’
program for our 7,500 people leaders in
July, to help them lead with confidence and
optimism during this period of ongoing and
accelerated change. On completion, leaders
are provided with new tools to support
themselves and their teams to improve
focus, adapt faster and be more productive.
We have also introduced a simpler and
more flexible approach to performance
management. This includes giving
employees the ability to create and document
meaningful performance and growth
objectives in our new People+ system.
We are continuing to develop priority
capabilities aligned with our strategy and
aimed at ‘future-proofing’ our workforce
– data and engineering are two key
capabilities on which we are focused.
We have recruited more than 500 software
and systems engineers over the course of
the year. The COVID-19 pandemic has had
little effect on supply of this capability in
the market and critical engineering talent
remains scarce. In response, we are
investing in innovative recruitment
strategies and have a dedicated team
working on talent marketing, proactive
sourcing, and continuous improvement
of the recruitment approach.
We have continued to invest in the
capabilities of our people through the
provision of training and development
programs. Almost 970,000 hours of learning
were delivered in 2020, including over
530,000 hours of compliance training. Our
Way of Learning (OWL), our digital social
learning platform, enabled employees to
access learning materials relevant to their
current roles and future career aspirations
while working from home. The ability to
access digital content anywhere, anytime
and on any device led to a 29% increase in
self-directed content access across the bank.
Diversity and inclusion
We want our workforce to reflect the
communities we serve and believe that
leveraging the diversity of our people will
drive innovation, making us a better bank
for our customers.
As we come to the end of our current suite
of public diversity and inclusion targets,
we have been reflecting on our progress
and challenges.
Our Women in Leadership objective focuses
our effort on the categories with the lowest
levels of female representation, being our
Senior Executive, Executive and Senior
Manager populations of the bank. This work
is the key to closing our gender pay gap.
Both our Key Management Personnel
and Group Executive Committee are now
gender balanced. The representation of
Women in Leadership
1
increased this year
to 33.4 % (up from 32.5% as at September
2019), falling short of our target of
34.1% by the end of 2020. Our progress
is monitored monthly by the CEO and
the Group Execution and Performance
Committee, and will remain a focus.
Over the last four years we have launched
our Spectrum Program – a tailored program
to support autistic individuals into the
workforce – and our Return to Work
Program for people who have taken a career
break. We have welcomed new employee
networks including Cultural Diversity &
Inclusion, Faith and Mental Health &
Wellbeing and been recognised as a leading
employer for LGBTIQ+ inclusion, inclusion of
people with disability and women. We are
developing our second ‘Stretch’ Reconciliation
Action Plan (RAP), reflecting and building on
the lessons learnt from our previous RAPs.
We have promoted the participation of
people from under-represented groups
in our workforce, including Aboriginal
and Torres Strait Islander peoples, people
with disability and refugees. Challenging
conditions, including most recently the
COVID-19 pandemic, have impacted our
goal of recruiting >1000 people from
under-represented groups. We recruited
185 people from under-represented groups
in 2020, bringing the total recruited since
2016 to 919.
We are currently finalising our new
Diversity and Inclusion strategy and it will
inform our approach and commitments
for 2021 and beyond.
Our new Diversity and Inclusion Policy
is available at anz.com/corporate
governance.
1. Measures representation at the Senior Manager, Executive and Senior Executive levels. Includes all employees regardless of leave status but not contractors (who are included in FTE).
Be
curious
Create
shared
clarity
Empower
people
Connect
with empathy
Grow people
selflessly
OUR NEW WAYS OF LEADING
30
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The program will be delivered to female
small business owners in rural areas across
Fiji, Kiribati, Solomon Islands, Tonga,
and Vanuatu.
Deputy Team Leader for Inclusive Growth
at the UNDP Pacific Office in Fiji, Patrick
Tuimalealiifano, said the partnership is
more than just balancing a budget.
“A big part of our work is on helping women
in low income households to have financial
security and control over their future and
the future of their families.
“Building financial literacy and business
acumen translates into confidence and over
time we start seeing these women emerge
as community leaders, entrepreneurs
and successful businesswomen.
The MoneyMinded program is helping
Pacific people create a positive vision for
their future,” he said.
ANZ Regional Executive Pacific, Tessa Price,
said the partnership with UNDP enables
ANZ MoneyMinded to reach deeper into
rural communities and target different
groups of people, particularly women.
“We’ve already done a lot of work with
a number of different groups, including
seasonal workers who receive MoneyMinded
training before they travel to Australia and
New Zealand. This partnership with the
UNDP means we will be reaching straight
to the heart of rural communities and
to women who are at the heart of the
household,” she said.
Building financial wellbeing
in the Pacific
COMMUNITY STORY
FINANCIAL WELLBEING
According to participants
surveyed in the 2019
MoneyMinded Impact
Report, almost 50% of
people in Fiji and Kiribati
frequently run short of
money for food and other
regular expenses.
To help improve this
situation ANZ has partnered
with the United Nations
Development Programme
(UNDP) to deliver its
adult financial education
programs, MoneyMinded
and Business Basics.
31
ANZ 2020 Annual Report

Financial wellbeing
Helping improve the financial wellbeing of our customers is core to our strategy.
We have in particular demonstrated a long-term commitment to helping disadvantaged
people build money management skills and savings capabilities through our financial
inclusion programs.
Being in control of personal and household finances generates improved long-term
financial health and wellbeing, community connectedness and social participation.
More broadly, it also contributes to the social and economic development of communities.
Our financial inclusion programs
Saver Plus was developed by ANZ and the Brotherhood of St Laurence in 2003,
and is co-funded by ANZ and the Australian Government.
Program participants open an ANZ savings account, set a savings goal and save
towards it regularly over 10 months while also attending MoneyMinded financial
education sessions. On reaching their goal, savings are matched by ANZ dollar for
dollar, up to $500, which must be spent on education.
Since 2003, Saver Plus has helped more than 47,770 lower-income Australians save
over $24 million to support their own and their children’s educational needs, with
ANZ providing over $19 million in matched funds.
MoneyMinded supports adults with low levels of financial literacy and those on
lower incomes across 15 markets, including Australia and New Zealand. It is delivered
by community partner organisations in Australia and New Zealand, and a mix of
community organisations and ANZ employees in Asia and the Pacific.
MoneyBusiness has been operating since 2005 and is designed to build the money
management skills and confidence of Aboriginal and Torres Strait Islanders. Since
inception, it has reached over 82,520 participants and has been delivered in over
320 communities through either Australian Government-funded service providers
or ANZ’s partners.
“I am in control of my life and my money for the first time
since having children. Thank you to Saver Plus for being
a part of that positive journey in getting my life and
happiness back!”
Saver Plus participant
Our community
Strong relationships with our stakeholders and the broader community is one of our key value
drivers. We are supporting the communities in which we live and work to recover from the
bushfires that devastated parts of Australia earlier this year, and through the COVID-19 pandemic.
1. Figure includes forgone revenue of $105 million, being the cost of providing low or fee free accounts to a range of customers such as government benefit recipients, not-for-profit
organisations and students.
We are investing in the
community through our
financial literacy programs,
as well as through local
partnerships with the
not-for-profit sector,
sponsorship, grants, and
staff volunteering and
workplace giving.
In 2020:
20.5% of our employees
volunteered over
66,000 hours to
community organisations,
we matched employee
donations, collectively
contributing almost
$3.9 million to
charitable organisations
in Australia, New Zealand
and Fiji
investing a total
$139.5 million in
the community
1
32
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LINKS TO 2020 GROUP PERFORMANCE FRAMEWORK
We have continued to regain community trust following the Royal Commission, and while we know this year has been difficult for many
people, we have had the opportunity prove the value we provide to the community. Our focus on our purpose and values, combined
with strong governance and leadership, has enabled us to help support the community. While across the industry community sentiment
scores have fluctuated during the year, in the RepTrak survey ANZ led for the majority of 2020 and was ranked second based on July to
September results. We achieved an A- rating in the 2019 CDP climate change assessment, the leading score for Australian banks.
See section 4.5.3 of the Remuneration report for more details.
Supporting Australia’s rural
and regional communities
Since 2003, we have been helping build
vibrant and sustainable rural communities
through our Seeds of Renewal financial grants
program, administered by the Foundation
for Rural and Regional Renewal (FRRR).
The program has provided more than
$5 million to help over 800 community
groups. In 2020 we again donated $250,000
to enable local community programs that
support the ongoing prosperity of
regional Australia.
Bushfire relief – helping
communities rebuild
In January 2020, we donated $1 million to
support our customers and the communities
affected by bushfires, including $300,000 to
volunteer fire services across New South
Wales, Victoria and South Australia.
We also matched a further $100,000 of
employee donations to volunteer fire services,
and allocated $500,000 to support local
community services as well as home loan
customers who lost their homes to bushfires
and suffered ongoing financial hardship.
Our $50 billion sustainable finance target
now includes $1 billion specifically for
funding and facilitating initiatives that
support customers and communities
impacted by disasters. Capital may be
allocated for weather related events (such
as bushfires, floods and cyclones) or to
build resilience against non-weather
related disasters such as pandemics.
Workplace giving
Our workplace giving program enables
employees in Australia to make contributions
to around 30 charity partners – many of
which operate in areas aligned to our
priority areas of financial wellbeing,
environmental sustainability and housing –
through regular pre-tax payroll deductions.
Donations are ‘double matched’ – for every
dollar donated by an employee (up to
$5,000 per employee in a tax year) through
the program, ANZ donates two dollars.
Our employees in New Zealand and Fiji
can also donate through payroll to their
respective staff foundations (charitable
trusts that provide small grants) and
ANZ double matches donations.
Volunteering
Our Volunteer Leave Policy, which applies
to permanent, regular and fixed-term
employees provides for at least one day
of paid volunteer leave each year.
This year we also made available extended
special paid leave for employees who
volunteer in emergency services to ensure
they were financially supported while they
served their community during the
bushfire season.
Contribution to public policy
We seek to contribute constructively to
public policy formation and understand
the perspectives of our community’s
elected representatives, policymakers
and regulators. We contribute to policy
formation on business, economic, social
and environmental issues affecting our
customers and shareholders.
We are also a member of a number of
industry associations that contribute to
public policy debate and formation.
In 2020, our key membership
payments included:
Australian Banking Association
$3,258, 203
Business Council of Australia
$93,500
New Zealand Bankers’ Association
NZ $309,079
Business New Zealand
NZ $40,250
We understand that our stakeholders are
interested in the position we take on issues
such as data security, privacy and climate
change, and our membership of industry
associations that develop policies and
undertake advocacy on these issues.
This year, in response to stakeholder
feedback, we reviewed the alignment of
ANZ’s policy position on climate change
with those of our industry associations.
The outcomes of this review will be
on anz.com/shareholder.
We have also committed to review our
memberships of industry associations at
least every three years. The results of any
such review, including any material changes
to our position, will be publicly disclosed.
Community organisation receives funding boost with Seeds of Renewal grant
In 2020, ANZ announced a grant of $15,000 to a NSW community organisation, ‘North Coast Community College’ for an Indigenous
land management employment pathway project. The money contributed to strengthening economic participation and employment
related activities for Aboriginal communities through the establishment of a training program run as a social enterprise.
33
OveriwiwrOHHo cratluPf

We support the Paris Agreement’s goal of transitioning to net zero emissions by 2050 and
are committed to playing our part.
Our approach to climate change
Engaging with 100 of our largest emitting business customers on their transition plans
We have engaged with 83 of our largest
emitting business customers to support
them to establish, and where appropriate,
strengthen existing low carbon transition
plans. This engagement will inform the
development of a model that can be
applied across our customer base.
Within each industry our customers
have different starting points. Through
customer discussions and reviews of
public disclosures we are developing a
better understanding of our customers’
preparation for, and management of, their
climate-related risks and opportunities.
Insights we have gained from customer
conversations include:
Energy: our engagement in this sector
has initially focused on customers with
thermal coal operations; however, we are
broadening this to include our largest oil
and gas producing customers. While the
impacts of COVID-19 have affected
short-term demand, some customers are
continuing to see strong demand for
high-quality, low-cost Australian thermal
coal for use in high efficiency, lower
emissions (HELE) plants across Asia; their
strategy is focused on developing high
quality thermal coal assets and they are
committed to improving their external
disclosures.
Other customers have undertaken
scenario analysis (aligned with
recommendations of the Financial Stability
Board Taskforce on Climate-related Financial
Disclosures (TCFD)), revealing that some
of their commodities will not perform
well under a low carbon transition; in
response, they are limiting expenditure
on thermal coal (with most capital directed
to maintenance rather than expansion),
or seeking to divest those assets. Some
companies are starting to set firmer targets
to work with their suppliers and customers
to seek to reduce the emissions associated
with the use of their mining commodities,
ie ‘Scope 3’ emissions.
Transport: a key customer in the airline
sector has committed to carbon neutral
growth from 2020 and halving 2005
emissions from international flights
by 2050. This aligns with the goals of the
international aviation sector.
Buildings: a number of customers have
established and are now implementing
net zero by 2030 carbon targets that will be
achieved largely through improved energy
efficiency and onsite solar installations.
IN SUPPORTING THE 2050 GOAL, OUR APPROACH IS TO:
Support transitioning
industries to help grow
the economy
Help our customers by
encouraging them to
identify climate risks and
opportunities, create
transition plans and report
publicly on their progress
Reduce our own impact
by managing and reducing
emissions from our own
operations
We understand the impact – positive and
negative – our financing has on climate
change. Through our lending decisions, we
support companies and projects that
contribute to reducing emissions and that
are resilient to a changing climate. We are
confident we can do this in parallel with
supporting strong economic growth.
Through our disclosures, we seek to provide
investors and other stakeholders with
information enabling them to assess the
adequacy of our approach to climate
change and our ability to manage the
associated risks and opportunities.
This year we released an updated Climate
Change Statement (available on anz.com/cs)
that outlines our approach and strengthened
commitments in support of a global transition
to net zero emissions. We are focused on
lowering emissions in key sectors, in a way
that carefully considers the potential for
community impacts and how we can
mitigate these.
34
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Our progress on the TCFD
OUR PROGRESS TO DATEFOCUS AREAS – 2021/22BEYOND 2020 VISION
GOVERNANCE
• Board Risk Committee oversees management of climate-related risks
• Board Ethics, Environment, Social and Governance Committee
approves climate-related objectives, goals and targets
•
Ethics and R
esponsible Business Committee (executive management)
oversees our approach to environment, social and governance (ESG)
and reviews climate-related risks and opportunities
•
Align with regulatory guidance on
climate-related risk governance,
including stress testing of selected
portfolios
•
An enhanced
risk management
framework that
anticipates potential
climate-related impacts,
and associated
regulatory requirements
STRATEGY
• Climate Change Statement (available on anz.com) reaffirms
support for the Paris Agreement goals and transition to a net
zero carbon economy
•

M
anaging the net zero carbon transition focuses on an orderly and just
transition that gives careful consideration to the impacts on communities
•
P
articipated in a United Nations Environment Program Finance
Industry (UNEP FI) working group on TCFD scenario analysis that
issued recommendations and methods to assess portfolio
transition and physical risks
•

L
ow carbon products and services within our Institutional business
focused on climate-related opportunities
•

Analysis of flood-r
elated risks for our home loan portfolio
in a major regional location of Australia
• Test-pilot of socio-economic indicators showing financial resilience
of home loan customers with respect to flood risk
• Extending analysis of flood-related
risks to incorporate bushfire and other
risks relating to retail customers
•
Include climate risk reference in
lending guidance documents for
relevant industry sectors, used
by our front line bankers
•
ANZ business strategy
more closely aligned
to a resilient and
sustainable economy
that supports the
Paris Agreement
and UN Sustainable
Development Goals
RISK MANAGEMENT
• Climate change risk added to Group and Institutional
Risk Appetite Statements
•
Climat
e change identified as a Principal Risk and Uncertainty in
our UK Disclosure and Transparency Rules (DTR) Submission
•
Guidelines and training provided to over 1,000 of our Institutional
bankers on customers’ transition plan discussions
•
Enhanced financial analysis and str
onger credit approval terms
applied to agricultural property purchases in regions of low average
rainfall or measured variability
•

Ne
w agribusiness customers assessed for financial resilience and
understanding of rainfall and climate trends in their area, and water
budgets considered if irrigating
•
Supporting 100 of our largest emitting
customers to develop and disclose
their transition plans
•
Customer engagement to identify
customer or sector-specific transition
or physical risks, focused on corporate
and Institutional customers
•

D
evelop an enhanced climate risk
management framework that strengthens
our governance and anticipates
potential climate-related impacts and
associated regulatory requirements
•
Further integrate
assessment of climate-
related risks into our
Group Risk management
framework
•
Standard discussions
with business customers
include climate-related
risks and opportunities
•
Assessment of customer
transition plans part of
standard lending decisions
and portfolio analysis
METRICS AND TARGETS
• Support 100 of our largest emitting customers to establish or
strengthen low carbon transition plans by 2021, with metrics
developed to track progress
•
New metrics to enable our progress to be tracked in reducing
‘financed emissions’, beginning with two key sectors: commercial
property and power generation. Metrics are tailored to each sector
(eg. carbon emissions per square metre of net lettable space for
commercial property) and disclosed every 12 months
•
$50 billion target to fund and facilitate sustainable solutions by 2025
•

T
arget to procure 100% renewable electricity for ANZ’s operations
by 2025
•
Ongoing emissions r
eduction targets for ANZ energy use aligned
with the Paris Agreement goals
• Complete transition plan engagement
with high emitting customers and
consider how to integrate into
customer assessments
•

S
et targets to reduce metrics for
‘financed emissions’ for key sectors
towards a net zero goal by 2050
•

C
onsider expanding new metrics for
measuring impact of our progress on
environmental sustainability to other
key sectors
•

C
ontinue to evolve our
reporting with leading
practices to measure the
alignment of our lending
with the Paris
Agreement goals
•
Reduce ANZ’s
operational emissions
in line with the
decarbonisation
trajectory of the Paris
Agreement goals
This is the fourth year we have reported using the TCFD. For detailed information see ‘ANZ 2020 Climate-related Financial Disclosures’
on anz.com/annualreport
35
ANZ 2020 Annual Report

We are supporting household, business and financial practices that improve environmental
sustainability. One way we do this is through encouraging and supporting 100 of our largest
emitting customers to establish, and where appropriate, strengthen existing low carbon
transition plans, by 2021.
Supporting Wesfarmers to transition
to net zero emissions
CUSTOMER STORY
ENVIRONMENTAL SUSTAINABILITY
“For us, transitioning to achieve net zero
emissions from our business is about doing
what’s right and good for the environment,
and we want to step up and contribute
in a responsible way. It’s also what our
customers believe in and want from us,
and so from that perspective it also
makes good business sense.”
To achieve its goals, Naomi says Wesfarmers
is pulling on numerous levers to significantly
reduce its emissions.
“We’re investing heavily in energy
efficiencies in our retail businesses through
new technology, solar panels and LED
lighting. And in our industrial business
we’re investing catalyst technologies
to reduce emissions intensity.”
Wesfarmers has banked with ANZ since the
1980s and we are supporting the company
in its transition journey.
“We value the role ANZ plays as a key
banking partner – especially with respect
to the open and constructive dialogue we
have with them on our transition agenda,”
says Naomi.
Headquartered in
Western Australia and
with around 107, 000
employees, Wesfarmers
Limited is one of Australia’s
largest listed companies,
with diversified operations
spanning across almost
30 retail and industrial
businesses.
Better known for its consumer brands such
as Bunnings, Kmart and Officeworks, it also
has interests in fertilisers, chemicals and in
the energy sector.
In September this year, it announced an
accelerated agenda to set and achieve net
zero emissions for its retail operations by
2030, and its industrial businesses by 2050.
This is on top of existing 2025 emissions
reduction targets.
Naomi Flutter, an Executive General
Manager at Wesfarmers said its climate
action was driven by a commitment to
contributing positively to the global goal
of achieving net zero emissions by 2050.
36
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According to Hamish Reid, Director of
Sustainability and Brand at Synlait, “we
need to act now and we need to be bold.
It’s both a matter of mitigating climate-
related risks and at the same time, seizing
opportunities to reimagine all aspects
of our business and value chain.”
Synlait is implementing a range of initiatives
to reduce emissions and deliver long-term
financial benefits.
Targets relating to climate, welfare, water
and waste have been set – including an
off-farm² 50% reduction in GHG emissions
per kg of product by 2028, and an on-farm
35% reduction in GHG emissions per kg of
milk solids by 2028.
Within its on-farm certification program,
Lead With Pride™, educational resources
and milk price incentives are being offered
to its farmer suppliers to implement best
practice GHG mitigation techniques. It
has also recently opted for an energy and
emissions efficient electrode boiler, rather
than the traditional coal-fired boiler, to
run its fresh milk and cream facility in
Canterbury, NZ.
Synlait has been an ANZ customer since
2000, when the company’s founders bought
their first few Canterbury dairy farms, before
then expanding into processing in 2008. In
2019, ANZ arranged and funded a NZ$50 million
sustainability linked loan which has supported
Synlait’s sustainability agenda.
“ANZ enabled us to enter into an ESG linked
loan, sending two strong signals to our
stakeholders. First, that leading banks today
recognise that sustainability performance
results in lower risk, and second, that
sustainability performance can lead to
financial benefits. Having a diversity of
like-minded partners accompanying us
in our transition is critical for us to achieve
our goals,” says Hamish.
Another customer ANZ is assisting with
its transition towards a low carbon future
is Silver Fern Farms Limited.
Since 2018, the grass-fed red meat
processing and exporting company has
reduced its GHG emissions by 8%, and
reduced its fossil fuel usage by 12% since
2017. It is targeting a 30% reduction on
2005 levels of the GHG emissions intensity
of its operations per tonne of product
before 2030.
“We’ve taken a number of steps to embed
sustainability within our company, from
being the first red meat processor to certify
our carbon footprint in New Zealand, to
having strong Board involvement in our
sustainability agenda, to incorporating
sustainability and climate reporting into
our parent co-operative’s external
disclosures,” says Justin Courtney, Head
of Communications and Sustainability
from Silver Fern Farms.
Silver Fern Farms uses a ‘whole of farm’
system approach to reduce carbon in the
supply chain as a way to enhance the
natural, biodiverse farming environments
in New Zealand.
“In addition to our own initiatives, such
as sourcing animals from farms rich in
biodiversity and sourcing electricity from
100% renewable sources, we’re proactively
working with suppliers to better understand
their carbon footprints and where the
opportunities lie to reduce and optimise
carbon absorption on their farms,” says Justin.
The engagement with our largest emitting
customers on their transition plans is a top
priority for ANZ, as we seek to support them
to manage the climate-related risks and
opportunities. Synlait and Silver Fern Farms
are just two out of the 100 customers we
are engaging with on their transition plans.
1. www.mpi.govt.nz/protection-and-response/environment-and-natural-resources/emissions-trading-scheme/agriculture-and-greenhouse-gases/ 2. On-farm: Synlait’s farmer suppliers
(scope 3). Off-farm: Synlait’s own manufacturing processes (scope 1 and 2) and non-farm scope 3 emissions.
CUSTOMER STORY
ENVIRONMENTAL SUSTAINABILITY
Greenhouse Gas Emissions
(GHG) from the food
and fibre sector, (and its
associated waste) account
for around half of New
Zealand’s total emissions.¹
Synlait Milk Limited is
working hard to reduce
emissions in line with its
commitment to the Paris
Agreement goals.
New Zealand’s agribusinesses leading
the way on transition planning
37
ANZ 2020 Annual Report

SHAREHOLDERS
BOARD OF DIRECTORS
Board reserved powers and delegation of authority
CHIEF EXECUTIVE OFFICER


GROUP EXECUTIVE COMMITTEE

Governance
Digital Business
and Technology
Committee
Ethics, Environment,
Social and Governance
Committee
Human
Resources
Committee
Audit
Committee
Nomination and
Board Operations
Committee
Risk
Committee
Corporate Governance Framework
ANZZs strong governance framework provides a solid structure for eOective and responsible
decision-making within the organisation.
Board of Directors
The Board is responsible for the oversight of ANZ and its sound and
prudent management, with specific duties as set out in its charter
available at anz.com/corporategovernance.
There are six principal Board Committees – the Audit Committee,
the Ethics, Environment, Social and Governance Committee, the Risk
Committee, the Human Resources Committee, the Digital Business
and Technology Committee and the Nomination and Board
Operations Committee.
Each Committee has its own charter setting out its roles and
responsibilities. At management level, the Group Executive
Committee comprises ANZ’s most senior executives. There is a
delegations of authority framework that clearly outlines those
matters delegated to the CEO and other members of senior
management.
For further detail on ANZ’s governance framework see our
2020 Corporate Governance Statement available at
anz.com/corporategovernance.
Full biography details can be found on our website at
anz.com/directors and on pages 44–48 of this report.
38
Entvnitr
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Chairman, Independent Non-Executive Director
PAUL O'SULLIVAN
Independent Non-Executive DirectorIndependent Non-Executive Director
Chief Executive Officer, Executive Director
SHAYNE ELLIOTT
Independent Non-Executive DirectorIndependent Non-Executive Director
Independent Non-Executive DirectorIndependent Non-Executive Director
JOHN MACFARLANE
JANE HALTON, AO PSM
ILANA ATLAS, AO PAULA DWYER
GRAEME LIEBELT
RT HON SIR JOHN KEY, GNZM AC
39
ANZ 2020 Annual Report

Directors’ meetings
The number of Board, and Board Committee, meetings held during the year and each Directors’ attendance at those meetings are set out below:
Board
Risk
Committee
Audit
Committee
Human
Resources
Committee
Ethics,
Environment,
Social and
Governance
Committee
Digital Business
and Technology
Committee
Special
Committee
of the Board
1
Nominations
and Board
Operations
Shares
Committee
1
ABABABABABABABABAB
PAUL O'SULLIVAN
111155555511
ILANA ATLAS, AO
14148866551111
PAULA DWYER
141477886611
SHAYNE ELLIOTT
141422
DAVID GONSKI, AC
2
141477886655661133
JANE HALTON, AO PSM
141466556611
RT HON SIR JOHN KEY, GNZM AC
141477556511
GRAEME LIEBELT
141477886611
JOHN MACFARLANE
141477886611
Column A Indicates the number of meetings the Director was eligible to attend as a member. Column B Indicates the number of meetings attended. The Chairman became an ex-officio
member of the Risk, Audit, Human Resources, Ethics, Environment, Social and Governance, Digital Business and Technology and Nomination and Board Operations Committees on 28 October
2020, upon David Gonski's retirement. With respect to Committee meetings, the table above records attendance of Committee members. Any Director is entitled to attend these meetings
and from time to time Directors attend meetings of Committees of which they are not a member. 1. The meetings of the Special Committee of the Board and Shares Committee as referred
to in the table above include those conducted by written resolution. 2. David Gonski retired as Chairman and as a Non-Executive Director on 28 October 2020.
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Executive Committee
Below from left to right
1

Emma Gray
Group Executive Data and Automation
Joined the Executive Committee on 1 May 2020
2

Maile Carnegie
Group Executive Digital and Australia Transformation
Joined the Executive Committee on 27 June 2016.
3

Farhan Faruqui
Group Executive International
Joined the Executive Committee on 1 February 2016.
4

Gerard Florian
Group Executive Technology
Joined the Executive Committee on 30 January 2017.
5

Alexis George
Deputy Chief Executive Officer and
Group Executive Wealth Australia
Joined the Executive Committee on 1 December 2016.
6

Kathryn van der Merwe
Group Executive Talent and Culture
Joined the Executive Committee on 1 May 2017.
7

Kevin Corbally
Group Chief Risk Officer
Joined the Executive Committee on 19 March 2018.
8

Mark Whelan
Group Executive Institutional
Joined the Executive Committee* on 20 October 2014.
9

Antonia Watson
Chief Executive Officer New Zealand
Joined the Executive Committee on 17 June 2019.
10

Shayne Elliott
Chief Executive Officer
(appointed CEO on 1 January 2016).
Joined the Executive Committee* on 1 June 2009.
11

Michelle Jablko
Chief Financial Officer
Joined the Executive Committee on 18 July 2016.
12

Mark Hand
Group Executive Australia Retail
and Commercial Banking
Joined the Executive Committee on 15 May 2018.
*previously known as Management Board.
Full biography details can be found on our website at anz.com/exco.
41
ANZ 2020 Annual Report

CRISIS MANAGEMENT
The Board and its Committees engage in key strategic, governance and oversight activities
each year. The list below is not a comprehensive list of all the matters but is illustrative to
provide stakeholders with an insight into some of the key matters considered by the
Board during the year.
Board areas of focus
Over the year, Australia and the world has faced many crises,
and the Board and its Committees have played an active role
in providing oversight of the impact of and ANZ’s response
to, them, including the bushfires in Australia and the
COVID-19 pandemic.
In relation to the Australian bushfires, this included reviewing ANZ’s
customer relief response, the impact to our customers, staff and the
economy generally, ANZ’s public commitments and contributions,
and ANZ’s next steps to support ongoing resilience for communities
affected by this and future disasters. In addition to this, the Board
attended a bushfire marketplace where ANZ hosted at its Melbourne
Head Office small business customers and their peers who had
been impacted by the devastating bushfires in Victoria where
customers sold their goods and services.
In relation to the COVID-19 pandemic, the Board adopted a
multi-faceted approach utilising the range of its Committees as
well as discussions at the Board itself. At the onset of the pandemic,
Directors received a weekly informal briefing as to developments,
supplemented with more detailed discussions at Board and
Committee meetings.
Key topics of those discussions included:
•the measur
es put in place to support our customers, customer
take up of those measures, ANZ’s delivery of those measures and
ongoing communications with impacted customers;
•the impac
t of the pandemic on the economy (domestic and
international, looking at both the immediate and longer-term
impacts of the pandemic), on various industries, and ANZ’s risk
approach to them, including risk appetite settings;
•discussions r
egarding the impact of the pandemic on the
financial performance and position of the Group, including in
relation to capital requirements and the payment of dividends
to shareholders;
•the impac
t of the pandemic on ANZ’s people, and the different
geographic responses undertaken in the jurisdictions ANZ
operates in, the steps ANZ was taking to protect and support its
people and to prepare and equip them for operating remotely,
including looking at the potential cultural impacts this may have.
The Board also had numerous discussions in relation to geopolitical
matters and their potential impact on ANZ’s operations.
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