Update on large/notable items in 1H22 results

Australia and New Zealand Banking Group Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 11 005 357 522
News Release
For Release: 29 April 2022
Update on large/notable items in 1H22 results

ANZ today announced its first half 2022 Statutory and Cash Profit will be impacted by a
number of large/notable items with a net after tax charge of $43 million (minimal impact on
CET1 capital):

• Net after tax gain of $205 million relating to divestments and business closures during
the period primarily driven by the gain on sale of the Merchant Acquiring Business in
exchange for a 49% interest in a new ANZ Worldline Payment Solutions partnership
1
.

• Tax charge of $126 million relating to withholding tax on a dividend payment from ANZ
Papua New Guinea. A capital injection was made into ANZ Papua New Guinea equivalent
to the dividend, net of withholding tax. This was to rebalance capital positions within the
Group in response to APRA’s changes in the capital requirements for subsidiaries
2
.

• After tax charge of $123 million in respect of customer remediation, covering increased
program costs and revised estimates to customer remediation predominantly in the
Australia Retail and Commercial division.

• Net after tax gain of $1 million comprised of restructuring charges, divested business
results and a litigation settlement.

The relevant large/notable items (continuing operations) templates, reflecting the tables
that will be shown in ANZ’s First Half 2022 Consolidated Financial Report & Dividend
Announcement, are included on the following pages.

ANZ’s First Half 2022 result will be announced on Wednesday 4 May 2022.







For media enquiries contact:

Stephen Ries
Head of Corporate Communications
+61 409 655 551



For analyst enquiries contact:

Jill Campbell
Group General Manager Investor Relations
+61 3 8654 7749

Cameron Davis
Executive Manager Investor Relations
+61 3 8654 7716


Approved for distribution by ANZ’s Continuous Disclosure Committee

1
See ANZ announcements of 15 December 2020 “ANZ enters joint venture with Worldline” and of 1 April 2022 “ANZ commences joint
venture with Worldline”.
2
See ANZ announcement of 15 October 2019 “APRA – subsidiary capital investment treatment update”

Large/Notable items - continuing operations

The Group has recognised some large/notable items within cash profit from continuing operations. These items are shown in the tables below.


March 2022 Half Year

March 2021 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Withholding
tax
$M
Total
$M
Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Asian
associate
items
$M
Total
$M
Cash Profit
Net interest income - - (3) - - - (3) - - (56) - - - (56)
Other operating income 193 87 (22) - - - 258 (238) 103 (18) - - (347) (500)
Operating income 193 87 (25) - - - 255 (238) 103 (74) - - (347) (556)
Operating expenses (19) (29) (148) (10) (30) - (236) - (29) (92) (69) (105) - (295)
Profit before credit impairment
and income tax
174 58 (173) (10) (30) - 19 (238) 74 (166) (69) (105) (347) (851)
Credit impairment (charge)/
release
(6) 2 - - - - (4) - 3 - - - - 3
Profit before income tax 168 60 (173) (10) (30) - 15 (238) 77 (166) (69) (105) (347) (848)
Income tax benefit/(expense)
and non-controlling interests
37 (18) 50 - (1) (126) (58) - (23) 58 21 29 - 85
Cash profit/(loss)
from continuing operations
205 42 (123) (10) (31) (126) (43) (238) 54 (108) (48) (76) (347) (763)


March 2022 Half Year September 2021 Half Year

Large/notable items included in continuing cash profit Large/notable items included in continuing cash profit

Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Withholding
tax
$M
Total
$M
Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Asian
associate
items
$M
Total
$M
Cash Profit


Net interest income - - (3) - - - (3) - - (30) - - - (30)
Other operating income 193 87 (22) - - - 258 - 77 (38) - - - 39
Operating income 193 87 (25) - - - 255 - 77 (68) - - - 9
Operating expenses (19) (29) (148) (10) (30) - (236) - (31) (93) - (22) - (146)
Profit before credit impairment
and income tax
174 58 (173) (10) (30) - 19 - 46 (161) - (22) - (137)
Credit impairment (charge)/
release
(6) 2 - - - - (4) - - - - - - -
Profit before income tax 168 60 (173) (10) (30) - 15 - 46 (161) - (22) - (137)
Income tax benefit/(expense)
and non-controlling interests
37 (18) 50 - (1) (126) (58) - (14) 48 - 6 - 40
Cash profit/(loss)
from continuing operations
205 42 (123) (10) (31) (126) (43) - 32 (113) - (16) - (97)

Large/Notable items - continuing operations

The Group has recognised some large/notable items within cash profit from continuing operations. The impact of these items on the divisional results are shown in the tables below.



March 2022 Half Year

March 2021 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Withholding
tax
$M
Total
$M
Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Asian
associate
items
$M
Total
$M
Profit before income tax
Australia Retail and Commercial 238 53 (167) - (14) - 110 (251) 59 (191) - (40) - (423)
Institutional - 7 (6) (10) (4) - (13) - 18 25 (69) (16) - (42)
New Zealand - - - - (6) - (6) 13 - - - (10) - 3
Pacific (18) - - - - - (18) - - - - (1) - (1)
Group Centre (52) - - - (6) - (58) - - - - (38) (347) (385)
Profit before income tax 168 60 (173) (10) (30) - 15 (238) 77 (166) (69) (105) (347) (848)
Income tax benefit/(expense)
and non-controlling interests
37 (18) 50 - (1) (126) (58) - (23) 58 21 29 - 85
Cash profit/(loss)
from continuing operations
205 42 (123) (10) (31) (126) (43) (238) 54 (108) (48) (76) (347) (763)


March 2022 Half Year

September 2021 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Withholding
tax
$M
Total
$M
Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Asian
associate
items
$M
Total
$M
Profit before income tax
Australia Retail and Commercial 238 53 (167) - (14) - 110 - 48 (146) - (12) - (110)
Institutional - 7 (6) (10) (4) - (13) - (2) 3 - (8) - (7)
New Zealand - - - - (6) - (6) - - (16) - 1 - (15)
Pacific (18) - - - - - (18) - - (2) - - - (2)
Group Centre (52) - - - (6) - (58) - - - - (3) - (3)
Profit before income tax 168 60 (173) (10) (30) - 15 - 46 (161) - (22) - (137)
Income tax benefit/(expense)
and non-controlling interests
37 (18) 50 - (1) (126) (58) - (14) 48 - 6 - 40
Cash profit/(loss)
from continuing operations
205 42 (123) (10) (31) (126) (43) - 32 (113) - (16) - (97)