![]() ![]() Australia and # New Zealand Banking # Group Limited #### 2025 Annual Report ![]() #### Contents Overview Our 2025 reporting suite 1 Op erating environment Our operating environment 2 Our ambition and strategy 4 Ab out our business 6 Governance Di rectors 8 Ri sk management 12 Performance overview 18 Remuneration report 32 Directors’ report 72 Financial report 75 Glossary 211 ![]() #### Our 2025 reporting suite Annual Report structure The various elements of the Directors’ Report, including the Operating and Financial Review, are covered on pages 1 to 31. Commentary on our performance overview contained on pages 18 to 31 references information reported in the Financial Report pages 75 to 210. The Remuneration Report on pages 32 to 71 and the Financial Report on pages 75 to 210 have been audited by KPMG. This report covers all ANZBGL operations worldwide over which, unless otherwise stated, we had control for the financial year 1 October 2024 to 30 September 2025. Monetary amounts in this document are reported in Australian dollars, unless otherwise stated. #### ANZ Group #### HoldingsLimited #### ABN 16 659 510 791 2025 Full Year Results Announcement anz.com/results 2025 ANZGHL Annual Report anz.com/annualreport 2025 Corporate GovernanceStatement anz.com/corporategovernance 2025 Climate Report anz.com/esgreport 2025 ESG Report anz.com/esgreport Australia and NewZealand #### Banking Group Limited #### ABN 11 005 357 522 2025 ANZBGL Annual Report anz.com/annualreport 2025 Basel III Pillar 3 Disclosure anz.com/results 2025 United Kingdom DisclosureandTransparency RulesSubmission (when released) anz.com/results Disclaimer & important notices The material in this report contains general background information about the Group’s activities current as at 7November 2025. It is information given in summary form and does not purport to be complete. It is not intended to be and should not be relied upon as advice to investors or potential investors, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment isappropriate. Forward-looking statements This report may contain forward-looking statements or opinions including statements regarding our intent, belief orcurrent expectations with respect to theGroup’s business operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices. Those maers are subject to risks and uncertainties that could cause the actual results and financial position ofthe Group to dier materially from the information presented herein. When used in the report, the words ‘forecast’, ‘estimate’, ‘goal’, ‘indicator’, ‘plan’, ‘ambition’, ‘modelling’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, asthey relate to the Group and its management, are intended to identify forward-looking statements or opinions. Those statements are usually predictive incharacter; or may be aected by inaccurate assumptions or unknown risks and uncertainties or may dier materially from results ultimately achieved. As such, these statements should not be relied upon when making investment decisions. There can be no assurance that actual outcomes will not dier materially from any forward-looking statements or opinions contained herein. Also see the Risk management section on pages 12 to 17 in relation to risks that may aect forward-looking statements or opinions, and the `Key Judgements and Estimates’ identified in various places in the AnnualReport. The forward-looking statements or opinions only speak as at 7 November 2025 and no representation is made as totheir correctness on or aer this date. No member of the Group undertakes to publicly release the result of any revisions to these statements to reflect events or circumstances aer this date to reflect theoccurrence of unanticipated events. 1 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Our operating #### environment Global growth has slowed marginally from 3.3% in 2024. The 3.2% we currently expect for 2025 would be the weakest growth since 2020's pandemic- dominated decline but is still well above the 1% growth broadly accepted as the benchmark for global recession. The United States economy has slowed most noticeably, although New Zealand and parts of Asia have also seen weaker activity. Europe and some other economies, including Australia, have been able to grow more quickly despite this backdrop, at least partly because of the beneficial influence of lower interest rates. Growth in China has been broadly stable despite the significance of its trading relationship with the United States. China's export dependency has declined in recent years, which has provided some insulation from taris. But China is still a production- intensive economy, only some of which is consumed domestically. The only-marginal global slowdown hassupported the redirection of China's exports to markets away from the United States, which has kept GDP growth on aneven keel. But consumer prices have been flat since 2023, suggesting productive capacity has grown more quickly than demand. #### Economic outlook The imposition of taris by the United States has interrupted paerns of trade and raised uncertainty. But taris are also adding to the supply-side constraints that were already a challenge. Geopolitical realignments, stronger defence spending, and the rebirth of industry policy in advanced economies have put pressure on productivity. Interest rate reductions are, consequently, likely to be gradual and sporadic. Economic growth is below trend in many jurisdictions. Bond markets are likely to remain alert to fiscal slippage, including inthe United States. Private sector balance sheets, in general, are in solid shape, which limits the risk of a sharper slowdown in growth. In some cases borrowers are using lower interest rates to improve balance sheets further, rather than borrowing more to spend or invest. China is facing slower credit growth andadjusting to soer structural drivers of demand. An ageing demographic suggests a shi in the mix of activity over time, including in the commodity sector. India, however, remains the world's fastest growing large economy and the remainder of Asia is growing faster than the global average. #### In some cases #### borrowers are using lower interest rates to #### improve balance sheets #### further, rather than borrowing more to #### spend or invest. #### Global growth has slowed only marginally this year #### and Asia remains the fastest growing region. 2 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Global 3.2 3.2 1.8 1.7 1.9 3.4 5.1 4.8 4.6 3.5 3.3 3.4 1.8 2.5 2.4 0.3 2.6 2.8 US China (Mainland) New Zealand AustraliaAsia (ex-Mainland China & India) 2025 f 2026 f 2027 f Source: Bloomberg, Macrobond, IMF, ANZ Research as at October 2025 f = forecast GDP growth US Euro area UK New Zealand JapanAustralia 1.75 3.75 3.75 3.25 3.50 3.35 3.60 2.25 3.00 1.00 0.50 2025 f 2026 f 2027 \* Source: Bloomberg, ANZ Research as at October 2025 \* ANZ Research forecasts are to end of year, except 2027, which is to June 2027. f = forecast Monetary policy rates Australian household balance sheet Source: ABS, Bloomberg, Macrobond, ANZ Research 90 92 94 96 98 00 02 04 06 14 18 20 22 24 261608 10 12 AUD, tm 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Total household liabilities Current financial assets (total assets less property and super) China trade shares Source: GAC, Bloomberg, Macrobond, ANZ Research 00 02 04 06 08 10 12 14 16 24 2618 20 22 % 8 9 10 11 12 13 14 15 16 17 Total trade: ASEAN Total trade: EU Total trade: US 3 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Our ambition #### and strategy #### Our ambition is for ANZ to unlock #### our potential to win the preference of customers, shareholders and #### the community. Australia and New Zealand Banking Group Limited 2025 Annual Report4 ![]() #### Customer first With market leading, dierentiated and superior propositions, wewill raise the standard of every digital and human interaction for ourcustomers. #### Simplicity To set the market standard for productivity, we will deliver organisational simplification, divest non-core assets and improve eciency. #### Resilience Leading the industry in trust, safety and risk management, we will adhere to the highest standards of non-financial risk management and strengthen end-to-end accountability across thebank. #### Delivering value To sustainably improve our financial performance, we will create lasting value by delivering higher returning growth and results that maer for ourstakeholders. #### Delivering on this vision In delivering these priorities, we are supported by our core enablers: Culture People Technology #### Measuringsuccess under ANZ 2030 Strategy #### We will measure our progress with a set of key metrics aligned with #### our strategic pillars. 1. Separate for Australia Retail, Australia Commercial, New Zealand Personal & NewZealand Business. 2. For Australia Retail and Commercial MFI relationships are based on who consumers perceive to be their main bank. New Zealand Retail MFI definition: customers with income greater than or equal to $1000 in a month or customers with deposits greater than or equal to $2000 in the month or customers with POStransactions in at least 8 different merchants in a month. NZ Business MFI definition: More than 5 POS transactions or at least 10 customer-initiated transactions. 3. Coalition Greenwich Large Corporate Relationship Banking survey (Australia, New Zealand) and Coalition Greenwich Voice of Client Asian Corporate Banking Study. Pillar Key performance indicator Customer first Strategic Net Promoter Score "(NPS)", 1 Net Main Financial Institution "(MFI)" customer growth in Retail and Commercial, 2 Relationship strength position for Institutional, 3 Simplicity Cost to Income "(CTI)" ratio, % Deliver Gross cost savings in FY26 Suncorp Bank cost synergies Resilience NFR remediation progress Common Equity Tier 1 "(CET1)" Capital Ratio Delivering value Return on Tangible Equity "(ROTE)", % Revenue / Risk-weighted assets, % Our strategy is focused on the four strategic pillars: 5 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### About our business We operate across a diverse business structure We have a combination of two scale markets in Australiaand New Zealand, two market-leading positions, in Institutional and New Zealand, and a well-diversified business model which includes Asia. Well executed, this combination is more powerful than asingle market or single segment concentration. We have the right strategic perimeter, and we are banking the right customer segments in the right geographies. #### Our Business Model Australia Retail Banking products and services provided to Australian consumers including home loans, deposits, credit cards and personal loans. Australia Commercial Banking products and services provided to small-to-medium enterprises, large commercial customers and high-net-worth individuals and family groups inAustralia. Institutional Services to institutional and corporate clients, including governments, via Transaction Banking, Corporate Finance and Markets business units. Suncorp Bank Banking and related services toretail, commercial, small andmedium enterprises and agribusiness customers inAustralia. New Zealand Banking products and services provided to New Zealand customers through Personal, Business and Agribusiness units. Pacific Banking products and services provided to retail and commercial customers, and to governments located in the Pacific region. Group Centre Supporting functions including technology, property, risk management, financial management, treasury, human resources, corporate aairs, and shareholder functions. Italso includes minority investments in Asia. 6 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Asia China Hong Kong India Indonesia Japan Laos Malaysia The Philippines Singapore South Korea Taiwan Thailand Vietnam Pacific Cook Islands Fiji Kiribati Papua New Guinea Samoa Solomon Islands Timor–Leste Tonga Vanuatu Europe France Germany United Kingdom Middle East United Arab Emirates (Dubai) United States ofAmerica Rest of the world 1. On a cash profit basis. Excludes non-core items included in statutory 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 20. Australia $2,933 million New Zealand $2,158 million Rest of the world $840 million #### Our international presence and profit composition by geography 1 The European Union is one of the largest economies in the world, and ANZ’s presence in Frankfurt places us at the centre of this dynamic region. Since receiving our German banking licence in 1985, ANZ has grown into a trusted partner for some of Germany and Switzerland’s largest multinational companies. With deep institutional banking expertise, our team are well-positioned to help clients capitalise on the evolving opportunities in Europe – from energy transition to industrial transformation. Our team’s focus is clear: to support clients with trade and investment flows across Europe, Australia, New Zealand and Asia Pacific. #### 40 years in Germany 7 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Relevant other directorships Chairman: ANZGHL (from 2022), Western Sydney Airport Corporation (from2017) and St Vincent’s Health Australia (from 2025, Director from 2019). Relevant former directorships held in last three years include Former Chairman: Singtel Optus Pty Limited (2014-2025, Director from 2004) and Norfina Limited (Suncorp Bank) (2025-2025, Director from 2025). Former Director: Indara Digital Infrastructure (formerly Australian Tower Network Pty Ltd) (2021-2023). #### Directors As at the date of this report, there are ten members on the Board of Directors of ANZBGL. Their names, positions within ANZBGL and relevant other directorships are described below. Nuno Matos joined the Board as Chief Executive Ocer and Executive Director on 12 May 2025. Shayne Ellio, who had served in that role since 2016, retired on 11 May 2025. Alison Gerry joined the Board on 9 May 2025 as an Independent Non-Executive Director. Jane Halton, AO PSM ceased as an Independent Non-Executive Director on31 March 2025, having served on the Board since 2016. Relevant other directorships Director: ANZGHL (from 2025) and the Financial Markets Foundation for Children (from 2025). Nuno Matos Chief Executive Ocer and Executive Director since May 2025 Paul O’Sullivan Chairman, Independent Non-Executive Director since November 2019 8 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Relevant other directorships Director: Norfina Limited (Suncorp Bank) (from 2024) and ASX Clearing and Selement Boards (from 2025). Relevant former directorships held in last three years include Former Director: Barrenjoey Capital Partners Group Holdings Pty Limited (2020-2024). Relevant other directorships Chairman: Infratil Limited (from 2022, Director from 2014). Director: ANZGHL (from 2025) and AirNew Zealand Limited (from 2021). Relevant former directorships heldinlast three years include Former Chairman: Sharesies Group Limited (2020-2025). Former Director: ANZ Bank New Zealand Limited (2019-2025). Relevant other directorships Chairman: Norfina Limited (Suncorp Bank) (from 2025, Director from 2025). Director: ANZGHL (from 2024) and AustalLimited (from 2025). Senior Advisor: Privatus Capital Partners (from 2024). Relevant former directorships held in last three years include Former Director: Credit Suisse (Australia) Limited (2019-2024). Alison Gerry Independent Non-Executive Director since May 2025 Richard Gibb Independent Non-Executive Director since February 2024 John Cincoa Independent Non-Executive Director since February 2024 9 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Relevant other directorships Chairman: Australia Pacific Airports Corporation (from 2024). Director: ANZGHL (from 2022), Norfina Limited (Suncorp Bank) (from 2024), BHP Group Limited (from 2020) and Infrastructure Victoria (from 2023). Relevant former directorships held in last three years include Former Director: The Baker Heart & Diabetes Institute (2013-2023) and Stockland (2018-2024). Relevant other directorships Chairman: Regis Healthcare Limited (Director from 2017, Chairman from 2018). Director: Assemble Communities (from 2017). Relevant other directorships Chairman: McKinnon (from 2024). President: Commonwealth Remuneration Tribunal (from 2024). Director: ANZGHL (from 2023) and Fonterra Co-operative Group Limited (from2020). Member: Board Advisory Group, Bain & Company (from 2021). Senior Advisor: Pollination (from 2023). Relevant former directorships held in last three years include Former Director: Abacus Group Holdings (2018-2022), Endeavour Group Limited (2021-2023) and Woolworths Group Limited (2016-2025). Former Pro Chancellor: Western Sydney University (2018-2024). Holly Kramer Independent Non-Executive Director since August 2023 Christine O’Reilly Independent Non-Executive Director since November 2021 Graham Hodges Non-Executive Director since February 2023 10 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Relevant other directorships Chairman: ANZ Bank New Zealand Limited (from 2024, Director from 2021) and Mercury NZ Limited (from 2024, Director from 2017). Director: ANZGHL (from 2024) and the NEXT Foundation (from 2017). Relevant former directorships held in last three years include Former Chairman: Fisher & Paykel Healthcare Corporation Limited (2020- 2024, Director from 2015). Former Director: Fonterra Co-operative Group Limited (2016-2024). Relevant other directorships Director: ANZGHL (from 2022), ANZ Group Services Pty Ltd (from 2022), Sonrai Security Inc (from 2021) and Pexa Australia Limited (from 2023). Advisor: World Fuel Services (from 2023). Je Smith Independent Non-Executive Director since August 2022 Sco St John Independent Non-Executive Director since March 2024 11 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Risk management At ANZ, risk management is a foundational pillar that enables us to deliver on our purpose: to shape a world where people and communities thrive. In an increasingly complex and dynamic environment, we recognise that our ability to identify, assess, and manage risk is critical to delivering on customer commitments, maintaining trust, protecting our stakeholders, and achieving sustainable growth. #### Our Risk Management Framework (RMF) Aligned with APRA’s CPS 220 standard, our Risk Management Framework (RMF) is designed to support ANZ’s strategic objectives. It is acknowledged that the risk management framework will be updated and strengthened, including to beer reflect the importance of non-financial risks as part of the RCRP. In April 2025, ANZ confirmed it had entered into a court enforceable undertaking (CEU) with the Australian Prudential Regulation Authority (APRA) for maers relating to Non-financial risk management practices and risk culture across the Group. On 30 September 2025, ANZ submied its Root Cause Remediation Plan (RCRP) to APRA as required by the CEU. We acknowledge that our risk culture and management of non-financial risk isnot where it needs to be nor what our regulators legitimately expect from us. We are commied to addressing that and making a sustainable step-change in risk culture and non-financial risk management, supported by strong execution disciplines, creating a more resilient, stronger ANZ for our customers, our shareholders, our people, and the communities we operate in. The Board is ultimately responsible for establishing and overseeing the ANZ Group’s RMF which is supported by the Group’s underlying systems, structures, policies, procedures, processes and people. These help identify, monitor and manage our material risks. We categorise these material risks as financial, non- financial and strategic risks. Further detail on how ANZ manages financial risk is provided in Note 17 of the Financial Report. The Board has delegated authority totheBoard Risk Commiee (BRC) to develop and monitor compliance with the Group’s risk management policies. TheCommiee reports regularly to the Board on its activities. The key pillars ofourGroup RMF include: • The Risk Management Strategy (RMS)outlines how risk management supports the Group’s purpose and strategy, the responsibilities of the Group Chief Risk Ocer and the riskfunction, and the values and behaviours that guide risk decision- making. The RMS describes each material risk and how it is managed, including policies, standards, and procedures. It also details how risks areidentified, measured, evaluated, monitored, reported, and controlled ormitigated, along with the oversight mechanisms and commiees in place. • The R isk Appetite Statement (RAS), articulates the maximum level of riskthe Group is willing to accept in pursuing its strategic objectives and itsoperating plans considering its shareholders’, depositors’ and customers’ interests. • The Group Strategic Planning Process outlines the approach to implementing ANZ Group’s strategic objectives, considering the Material Risks the Bank might have to navigate to achieve its goals. The governance and oversight of risk management, while embedded in day-to-day activities, is also the focus of commiees and regular forums across the bank (see diagram next page). The commiees and forums discuss and monitor known and emerging risks, review management plans and monitor progress to address known issues. 12 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Principal Board Commiees Audit Commiee Risk Commiee Digital Business and Technology Commiee Nomination and Board Operations Commiee People & Culture Commiee #### Board of Directors Executive Commiee ANZ’s most senior executives meet regularly to discuss performance and review shared initiatives. Enterprise Accountability Group GroupDivision Country Credit Ratings System Oversight Commiee Capital and Stress Testing Oversight Commiee Regional or Country Risk Management Commiees Country Assets and Liability Commiees Credit and Market Risk Commiee Group Asset and Liability Commiee Operational Risk Executive Commiee Climate & Environment Commiee Investment Commiee Group Executive People Commiee Divisional/ Functional Accountability Groups Divisional Initiatives Review Commiees/ Project Advisory Councils Divisional Risk Management Commiees #### Key Management Commiees Risk management is operationalised using the Three Lines-of-Defence Model. Each line of defence has defined roles, responsibilities and escalation paths to support risk management at ANZ. The first line of defence, comprising business and enablement functions, manages day-to-day risks and controls. The second line, the Risk function, provides independent oversight and challenges decisions aecting the Group’s risk profile. Internal Audit, the third line, oers independent evaluation and assurance on the eectiveness of the Group’s RMF. Suncorp Bank currently operates an independent RMF. Suncorp Bank’s Risk Management Framework (RMF) will be retired and will be transitioned to the ANZ RMF once migration is complete. 13 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 1. includes ANZ Plus, ANZ Classic, ANZ Bank New Zealand and Suncorp Bank. #### Our risk culture Risk culture is an important part ofour organisational culture, influencing decision-making through shared values, behaviours, and practices. Our Risk Principles form an important part of the RMF by guiding risk management and fostering an appropriate risk culture across the Group. Despite our strong focus on risk culturethere is still a requirement for further improvement. Our expectations forcontinuous improvement in risk culture have not been met in key businesses across the Group. ANZ has commied under the RCRP to reviewing and strengthening our approach to risk culture,to support the Group to meet theevolving expectations of our customers our shareholders, the community and regulators. Risk culture is driven across the Group through completion of risk culture plans, awareness activities and delivery of the Group wide non-financial risk framework. Divisional and Functional level maturity assessments assist the Board to form a view of ANZ’s overall risk culture annually. Risk culture is embedded in performance and remuneration (see the Remuneration Report), and recognition programs such asRisk Role Models. External Environment The Groups’ financial performance is closely linked to the political, economic and financial conditions in the markets and regions in which ANZ, its customers and its counterparties carry on business. The current external environment is shaped by significant global events, particularly geopolitical conditions that impact economic stability, regulatory environments and financial markets. Geopolitics ANZ faces a more complex, dynamic, andchallenging geopolitical environment across its 29 markets. Sweeping and uncertain US trade policies have upended trade norms, and triggered market volatility. Meanwhile, intensifying US– Chinarivalry is driving economic security concerns and accelerating supply chain decoupling – particularly in technology, critical minerals, and advanced manufacturing. Conflicts in the Middle East and Ukraine persist and continue to pose escalation risks. But despite facing the highest geopolitical risk in decades, supply chains have proven surprisingly agile, and the international system continues to show resilience in managing risk events. ANZ was the first major Australian bank toestablish a dedicated Geopolitical Risk function and continues to build upon this to manage compounding and evolving geopolitical risks. To support our business, Geopolitical Risk has increased the pace of assessments and advice this year. Thisincludes more briefings to clients andexpanded engagement across the bank to upli geopolitical understanding. The team continues to provide quarterly updates to key senior risk commiees, works closely with Country Risk and in-country teams to monitor regional flashpoints, and coordinates with the ANZFusion Cell, an internal group that manages crisis response, by providing timely, relevant strategic assessments and consolidating internal communication of existing risks. Scams ANZ continues to invest in measures to protect customers and the community from scams and other financial crimes. In2025, ANZ prevented and recovered more than $220 million 1 in scam and fraudrelated funds. Our latest measures for ANZ customers (Classic and Plus) include the launch of Digital Padlock and Confirmation of Payee. Digital Padlock gives ANZ customers the ability to instantly lock down access to their accounts if they suspect they are being targeted by cybercriminals. Confirmation of Payee empowers customers to verify the payee details, by confirming whether the account name matches the details held by the receiving bank. ANZ also partnered with other major banks to develop the world’s first inter- bank fraud and scams intelligence-sharing network, BioCatch Trust. This provides ANZ with a real-time risk score of a receiving bank on the Trust network, enhancing our ability to detect complex scam typologies, while reducing friction for legitimate customers. For ANZ Plus customers, we introduced the Call Safe feature, which helps customers and service teams verify the identity of the person they are speaking to before discussing personal or sensitive information, or taking certain actions on their behalf. Education was a continued focus. ANZ’sfinancial education program MoneyMinded established a customer referral pathway for repeat and entrenched scams victims to access afree scams financial education workshop. We published new content on ANZ’s security hub on anz.com to enhance customer understanding of common scam types and cyber threats, and we engaged customers through personalised scams education messages across our digital channels. Technological Disruptions andChange ANZ serves a diverse set of customers across retail, commercial, institutional, and financial sectors, delivering tailored digital channels and products in 29 markets. The financial landscape is rapidly evolving due to regulatory change, industry innovation, and shiing customer expectations, accompanied by increased technology and geopolitical risks. In response, ANZ prioritises operational resilience, customer protection and robust compliance. Our emphasis on meeting APRA’s CPS230 standard demonstrates ANZ’s internal resilience, and our leadership in payments industry collaboration on resilience reflects our commitment to maintaining payments network continuity and confidence. Operating within a complex environment dependent on technology; critical infrastructure; financial networks and vendors, ANZ continues to advance digitisation, automation and customer protections. Across Asia, our Transactive Global roll out has driven digital transformation, improved fraud detection and driven simplification whilst improving non-financial risk across the region. Across the Pacific we have improved customer access to digital and faster payments. In Australia and New Zealand we continue investment in upliing anomaly detection, recoverability and resilience at the same time as delivering enhanced fraud and scam detection. Across all our solutions, we focus on resilience by design to anticipate and withstand disruptions, further strengthening our operational resilience. 14 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() #### Material risks The material risks facing the Group, and how these risks are managed, are summarised below. Risk type Description Managing the risk Capital adequacy risk The risk of loss arising from the Group failing to maintain the level of capital required by prudential regulators and other key stakeholders (shareholders, debt investors, depositors, rating agencies, etc.) to support the Group’s consolidated operations and risk appetite. We pursue an active approach to capital management, which is designed to protect the interests of depositors, creditors and shareholders through ongoing review, and Board approval, of the level and composition of our capital base against key policy objectives. Credit risk The risk of financial loss resulting from: • a cou nterparty failing to fulfil its obligations; or • a dec rease in credit quality of a counterparty resulting in a deterioration of value. Our credit risk framework is top down, being defined by credit principles, policies and requirements. Credit policies, requirements and procedures cover all aspects of the credit life cycle from initial approval and risk grading, through to ongoing management and problem debt management. Liquidity and funding risk The risk that the Group is unable to meet its payment obligations as they fall due, including: • rep aying depositors or maturing wholesale debt; or • the G roup having insucient capacity to fund increases in assets. The Group recognises the inherent liquidity and funding risk in the balance sheet and has established a set of key principles, to mitigate and control liquidity and funding risk. Our framework is top down, being defined by liquidity principles and policies. A liquidity limit framework is in place with liquidity limits set based on a liquidity stress testing framework. Market risk The risk stems from our trading and balance sheet activities and is the risk to the Group’s earnings arising from: • cha nges in interest rates, foreign exchange rates, credit spreads, volatility, correlations; or • fluctuations in bond, commodity or equity prices. We have a detailed market risk management and control framework which includes incorporating an independent risk measurement approach to quantify the magnitude of market risk within the trading and balance sheet portfolios. This approach identifies the range of possible outcomes, that can be expected over a given period of time, and establishes the likelihood of those outcomes and allocates an appropriate amount of capital to support these activities. Strategic risk The risk that ANZ may not achieve its key strategic objectives due to ineective adaptation to changes in the operating environment undermining the bank’s capacity to pivot or refine strategies in response to evolving conditions. ANZ’s strategic risk management is underpinned by a rolling three-year business plan, updated annually to remain responsive to a changing environment. This plan is informed by structured analysis and reviewed by risk, Group Strategy and Executive Commiee to ensure alignment with ANZ’s risk appetite and long-term goals. Regular reviews of strategic objectives and market conditions support ongoing alignment and adaptability. Insights from these processes are presented to the Board to guide strategic decision-making. 15 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Risk type Description Managing the risk Climate risk The financial and non-financial risks arising from climate change including: • Phy sical risk – arising from both longer- term changes in climate (chronic risk) as well as changes to the frequency and magnitude of extreme weather events (acute risk). Examples of chronic physical risk drivers include rising sea levels, rising average temperatures and ocean acidification. Examples of acute physical risk drivers include heatwaves, floods, bushfires and cyclones; • Tra nsition risk – arising from the transition to a lower emissions economy, including changes in domestic and international policy and regulatory seings, technological innovation, social adaptation and market changes; or • Lia bility risk – in the form of potential litigation or regulatory action that may arise as a consequence of a failure to adequately consider or respond to the impacts of climate change (including physical and transition risks). This includes for example, the risk of greenwashing, which may arise where an entity is alleged to have misrepresented its climate-related risks, business credentials or strategies. We continue to integrate and embed climate risk within our Risk Management Framework While climate risk can be a driver of credit risk through lending to our customers, it may also result in other financial risks. Climate risks is also considered to be a driver of other material risks within our RMF. Climate-related financial and non-financial risks are managed through the risk management strategies associated with these risks. Financial crime risk The risk of facilitating financial crime including non-compliance with ANZ policies, or regulatory expectations. It includes the following non-financial risk themes: Financial Crime – The risk of facilitating money laundering, terrorism financing, sanctions evasion, or bribery and corruptionevents. Internal Fraud – Fraud/the aempted or perpetrated by an internal party (or parties) (i.e. an ANZ employee or contingent worker, including instances where an employee is acting in collusion with external parties). External Fraud – Fraud aempted or perpetrated without the deliberate involvement of an ANZ employee or contingent worker. We maintain a financial crime risk management program that anticipates and navigates criminal threats. The Financial Crime Portfolio continues to be responsible for ensuring that ANZ meets its regulatory obligations through its Anti-Money Laundering/Counter Terrorism Financing Sanctions, Anti-Bribery & Anti- Corruption and Anti-Fraud Programs and Policies. Thisallows ANZ to deliver detection, investigative and intelligence capability focused on identifying, mitigating, and managing financial crime risk to help protect the community. We continue to maintain our partnership with the Australian Transaction Report and Analysis Centre (AUSTRAC) Fintel Alliance and through membership of the Financial Crime Prevention Network in New Zealand to increase the resilience of the financial sector to prevent exploitation by criminals, and support investigations into serious crime and national security. 16 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() For further information about the principal risks and uncertainties that the ANZBGL Group faces, refer to Principal Risks and Uncertainties section contained within the ‘2025 United Kingdom Disclosure and Transparency Rules Submission’ available at anz.com/shareholder/centre/reporting/regulatory-disclosure Risk type Description Managing the risk Compliance & conduct risk The risks of legal or regulatory actions, material financial loss, or loss of reputation caused by ANZ failing to: • comp ly with laws, regulations, prudential standards, licences, codes or policies; • appropr iately manage customer interests and market integrity. It includes the non-financial risk themes of conduct and regulatory risk. ANZ manages compliance and conduct risks pursuant to ANZ’s Risk Management Strategy, ANZ Non-Financial Risk Framework and related policies. Resilience risk The risk of material adverse impacts of operational disruption events on ANZ Group, its customers, and the financial system. It includes the non-financial risk themes of operational resilience, data, third party, technology and information security (including cyber). ANZ manages resilience through our Non-Financial Risk Framework supported by resilience policies, standards and procedures designed to protect critical operations to safeguard customer interests and uphold financial stability. The framework covers the approach to business continuity and incident response management, and incorporates key controls such as risk assessments, scenario testing, and crisis management protocols. The framework is regularly reviewed to reflect emerging threats, operational dependencies, lessons learned from real events, regulatory expectations, and industry best practices. Specifically, data risk is governed to ensure accuracy, integrity, and ethical use; information security and cyber risk are mitigated through layered controls, continuous monitoring, and enhanced cyber resilience strategies to defend against threats like AI-enabled aacks; operational resilience is maintained by identifying critical services and ensuring continuity within defined tolerance through monitoring, continuity planning and testing and Third Party Risk Management Framework; and technology risk is managed by focusing on information technology (IT) systems resilience, stability, and secure change processes aligned with regulatory expectations. Operational risk The risk of loss resulting from inadequate or failed internal processes, people, systems, or from external events. This includes the non-financial risk themes of model, physical security, transaction processing, people, legal, statutory reporting and tax, and change execution. The management of operational risk is prescribed in the Non-Financial Risk Framework, which ANZ continues to review and evolve to ensure that it supports the delivery of consistent processes and repeatable outcomes for ANZ customers. There is an increased focus on change execution risk which refers to the risk that change initiatives may fail to deliver intended outcomes due to breakdowns in planning, delivery, stakeholder engagement, and adoption. This risk is linked to the Group’s strategic priorities. The Group is adjusting its risk taxonomy to ensure risk management, governance, and oversight are concentrated where they are most needed. 17 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Performance overview 18 The results of the Group’s operations and financial position are set out on pages 18-31. Pages 2-7 outline the Group’s strategy and prospects. Discussion of our approach to risk management, including a summary of our key material risks, is outlined on pages 12-17. Discussion or disclosure of further business strategies and prospects for future financial years have not been included in this report because, in the opinion of the directors, it would be likely to result in unreasonable prejudice to the Group. #### Group profit results 2025 2024 Statutory Cash Statutory Cash Income Statement $m $m $m $m Net interest income 17,903 17,903 16,037 16,037 Other operating income 4,245 3,958 4,484 4,746 Operating income 22,148 21,861 20,521 20,783 Operating expenses (12,866) (12,723) (10,669) (10,669) Profit before credit impairment and income tax 9,282 9,138 9,852 10,114 Credit impairment (charge)/release (435) (435) (406) (406) Profit before income tax 8,847 8,703 9,446 9,708 Income tax expense (2,771) (2,731) (2,816) (2,888) Non-controlling interests (41) (41) (35) (35) Profit attributable to shareholders of the Company 6,035 5,931 6,595 6,785 Statutory profit attributable to shareholders of the Company decreased $560 million on the prior year to $6,035 million. Statutory return on tangible equity decreased 90 bps to 9.4%. The Group uses cash profit, a non-IFRS measure, to assess the performance of its business activities and enables comparison with our peer group. We calculate cash profit by adjusting statutory profit for non-core items. In general, it represents the financial performance of our core business activities. We use cash profit internally to set targets and incentivise our Senior Executives and leaders through our remuneration plans. Refer to page 20 for adjustments between statutory and cash profit. The adjustments made in arriving at cash profit are included in statutory profit which is subject to audit within the context of the external auditor’s audit of the 2025 Financial Report. Cash profit is not subject to audit by the external auditor. A number of intangible assets were recognised as part of the Suncorp Bank acquisition accounting and the amortisation of these intangible assets is treated as a cash profit adjustment from 2025. Except for this new item, the adjustments between statutory and cash profit have been determined on a consistent basis across each of the periods presented. Suncorp Bank acquisition On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Norfina Limited (formerly known as Suncorp-Metway Limited, and trading as Suncorp Bank). As a result of this, 2025 and 2024 include 12 months and 2 months results respectively. 2024 results also include the following acquisition related adjustments recognised by the Group post transaction completion, with an after-tax charge of $196 million: • Collectively assessed credit impairment charge of $244 million ($171 million after tax) for Suncorp Bank’s performing loans and advances. In accordance with Australian Accounting Standards requirements, the Group consolidated Suncorp Bank’s loans and advances on 31 July 2024, however the Group was not permitted to recognise an allowance for ECL on the performing loans and advances, leading to a proportional reduction in acquisition-related goodwill that would otherwise have been recognised. Subsequently, the Group was required to recognise a collectively assessed allowance for ECL estimated using the Group’s ECL methodologies, with a corresponding collectively assessed credit impairment charge recognised in the Group’s Income Statement. • Accelerated software amortisation expense of $36 million ($25 million after tax) on alignment to the Group’s software capitalisation policy. During 2025, the Group completed its purchase price allocation (PPA) to identify and measure the assets acquired and liabilities assumed at acquisition date. The significant adjustments to provisionally determined balances arising from the PPA exercise included the recognition of core deposit and brand intangible assets, fair value adjustments to gross loans and advances to reflect changes in interest rates and credit since loan origination, provisions for contingent liabilities and related indemnities and related deferred tax balances with a corresponding decrease to goodwill of $56 million from the provisional goodwill disclosed at 30 September 2024. The final goodwill balance of $1,346 million is attributable to the assembled workforce and expected synergies arising from the economies of scale from the integration and consolidation of platforms and funding benefits. The impacts on the 2024 provisional balances are disclosed in Note 33 Suncorp Bank acquisition. Prior period has not been restated. Australia and New Zealand Banking Group Limited 2025 Annual Report18 ![]() #### Group profit results (continued) 2025 Significant items During 2025, the Group recognised several significant items which impacted statutory and cash profit as summarised below: PT Panin impairment The Group recognised a pre-tax charge of $285 million (after-tax: $285 million) in respect of an impairment of the Group’s equity accounted investment in PT Bank Pan Indonesia Tbk (PT Panin) to adjust its carrying value in line with its value-in-use (VIU) calculation. This was recognised in the Group Centre division. This had no impact to CET1 capital as it resulted in an equivalent reduction in capital deductions. Staff redundancies In September 2025, the Group announced changes to simplify the bank, strengthen focus on its priorities and deliver for its customers. As a result of the change the Group expects approximately 3,500 employees to depart by September 2026 and to reduce engagements with consultants and other third parties impacting approximately 1,000 managed services contractors. The Group recognised a pre-tax charge of $579 million (after-tax: $408 million) across the Group in the second half of 2025 associated with these changes. ASIC settlement In September 2025, the Group entered into an agreement with the Australian Securities and Investments Commission (ASIC) to resolve five matters within its Australia Markets and Australia Retail businesses that were the subject of separate regulatory investigations. Under the agreement, which requires Federal Court approval, the Group is subject to total penalties of $240 million. The Group recognised a pre-tax charge of $271 million (after-tax: $264 million) comprising $240 million of ASIC penalties and $31 million of various costs associated with the matters. This was recognised across the Australia Retail and Institutional divisions. Suncorp Bank migration The Group announced at the October 2025 Strategy Day its intention to bring forward the integration of Suncorp Bank by June 2027 to accelerate value creation for shareholders, to benefit customers, and to significantly reduce operational complexity. The Group recognised a pre-tax charge of $97 million (after-tax: $68 million) relating to costs associated with existing contracts that extend beyond the revised migration date. This was recognised in the Suncorp Bank division. The financial impacts from these significant items are summarised below: C a s h P r o f i t I m p a c t A u s t r a l i a R e t a i l $ m A u s t r a l i a C o m m e r c i a l $ m I n s t i t u t i o n a l $ m N e w Z e a l a n d $ m S u n c o r p B a n k $ m P a c i f i c $ m G r o u p C e n t r e $ m T o t a l $ m Operating income - - - - - - (285) (285) Operating expenses (410) 3 (165) (11) (169) (3) (192) (947) Profit/(Loss) before income tax (410) 3 (165) (11) (169) (3) (477) (1,232) Income tax (expense)/benefit 88 (1) 10 3 50 1 56 207 Cash profit (322) 2 (155) (8) (119) (2) (421) (1,025) 19 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 19 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Group performance Key measures of our financial performance are set out below. Adjustments between statutory profit and cash profit ($m) Adjustments between statutory profit and cash profit are summarised below: A djustment Comment for the adjustment Economic hedges 2025: $128 million gain 2024: $264 million loss Revenue and expense hedges 2025: $76 million gain 2024: $7 4 million gain The Group enters into economic hedges to manage its interest rate and foreign exchange risk which, in accordance with accounting standards, result in fair value gains and losses being recognised within the Income Statement. We remove the fair value adjustments from cash profit since the profit or loss resulting from the hedge transactions will reverse over time to match with the profit or loss from the economically hedged item as part of cash profit. This includes gains and losses arising from derivatives not designated in accounting hedge relationships but which are considered to be economic hedges, including hedges of foreign currency debt issuances and foreign exchange denominated revenue and expense streams, primarily NZD and USD (and USD correlated), as well as ineffectiveness from designated accounting hedges. Gains on economic hedges in 2025 related to funding-related swaps, principally from the strengthening of the USD against the AUD and NZD. Losses in 2024 related to funding-related swaps, principally from narrowing USD/EUR and USD/JPY currency basis spreads. Further losses in 2024 were driven by the impact of falling AUD and NZD yield curves on net pay fixed economic hedge positions. The gain on revenue and expense hedges in 2025 was driven by the appreciation of the AUD against the NZD. The gain in 2024 was mainly driven by the appreciation of the AUD against the USD and NZD. A mortisation of a cquired intangibles 2025: $100 million loss 2024: nil The acquisition of Suncorp Ban k resulted in the recognition of intangible assets of $685 million comprising core deposit and brand intangibles, which are being amortised over their useful lives ranging between 3 to 6 years. The amortisation is removed from cash profit as the assets and associated amortisation only arise through acquisition accounting and would not occur in the ordinary course of business. 1.54 1.57 2025 2024 Net interest margin – cash (%) 2020 Operating expenses to operating income - cash (%) Credit impairment charge /(release) – cash ($m) Cash profit ($m) 58.2 51.3 2025 2024 435 406 2025 2024 5,931 6,785 2025 2024 9.2 10.6 2025 2024 Common equity tier 1 (%) 12.0 12.2 2025 2024 Return on tangible equity – cash (%) 100 2025 Statutory profit attributable to shareholders of the Company Economic hedges Revenue and expense hedges Amortisation of acquired intangibles 2025 Cash profit attributable to shareholders of the Company 6,035 (128) (76) 5,931 20 Australia and New Zealand Banking Group Limited 2025 Annual Report 20 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 20 #### Group performance Key measures of our financial performance are set out below. Adjustments between statutory profit and cash profit ($m) Adjustments between statutory profit and cash profit are summarised below: A djustment Comment for the adjustment Economic hedges 2025: $128 million gain 2024: $264 million loss Revenue and expense hedges 2025: $76 million gain 2024: $7 4 million gain The Group enters into economic hedges to manage its interest rate and foreign exchange risk which, in accordance with accounting standards, result in fair value gains and losses being recognised within the Income Statement. We remove the fair value adjustments from cash profit since the profit or loss resulting from the hedge transactions will reverse over time to match with the profit or loss from the economically hedged item as part of cash profit. This includes gains and losses arising from derivatives not designated in accounting hedge relationships but which are considered to be economic hedges, including hedges of foreign currency debt issuances and foreign exchange denominated revenue and expense streams, primarily NZD and USD (and USD correlated), as well as ineffectiveness from designated accounting hedges. Gains on economic hedges in 2025 related to funding-related swaps, principally from the strengthening of the USD against the AUD and NZD. Losses in 2024 related to funding-related swaps, principally from narrowing USD/EUR and USD/JPY currency basis spreads. Further losses in 2024 were driven by the impact of falling AUD and NZD yield curves on net pay fixed economic hedge positions. The gain on revenue and expense hedges in 2025 was driven by the appreciation of the AUD against the NZD. The gain in 2024 was mainly driven by the appreciation of the AUD against the USD and NZD. A mortisation of a cquired intangibles 2025: $100 million loss 2024: nil The acquisition of Suncorp Ban k resulted in the recognition of intangible assets of $685 million comprising core deposit and brand intangibles, which are being amortised over their useful lives ranging between 3 to 6 years. The amortisation is removed from cash profit as the assets and associated amortisation only arise through acquisition accounting and would not occur in the ordinary course of business. 1.54 1.57 2025 2024 Net interest margin – cash (%) 2020 Operating expenses to operating income - cash (%) Credit impairment charge /(release) – cash ($m) Cash profit ($m) 58.2 51.3 2025 2024 435 406 2025 2024 5,931 6,785 2025 2024 9.2 10.6 2025 2024 Common equity tier 1 (%) 12.0 12.2 2025 2024 Return on tangible equity – cash (%) 100 2025 Statutory profit attributable to shareholders of the Company Economic hedges Revenue and expense hedges Amortisation of acquired intangibles 2025 Cash profit attributable to shareholders of the Company 6,035 (128) (76) 5,931 20 Australia and New Zealand Banking Group Limited 2025 Annual Report #### Group cash profit performance Cash profit ($m) 2025 2024 $m $m Movt Net interest income 17,903 16,037 12% Other operating income 3,958 4,746 -17% Operating income 21,861 20,783 5% Operating expenses (12,723) (10,669) 19% Profit before credit impairment and income tax 9,138 10,114 -10% Credit impairment (charge)/release (435) (406) 7% Profit before income tax 8,703 9,708 -10% Income tax expense (2,731) (2,888) -5% Non-controlling interests (41) (35) 17% Cash profit attributable to shareholders of the Company 5,931 6,785 -13% Cash profit attributable to shareholders of the Company decreased $854 million (13%) compared with 2024. Net interest income increased $1,866 million (12%) driven by a $136.0 billion (13%) increase in average interest earning assets, partially offset by a 3 bps decrease in net interest margin. The increase in average interest earning assets was driven by the acquisition of Suncorp Bank, lending growth, higher Markets activities, and higher cash and liquid assets. The decrease of 3 bps was driven by unfavourable assets and deposit pricing, and unfavourable wholesale funding impact, partially offset by higher earnings on capital and replicating portfolio, and favourable impact from Suncorp Bank acquisition. Other operating income decreased $788 million (17%) driven by a decrease of $454 million in the Markets business unit from lower trading gains across Rates, Credit and Commodities, a $285 million decrease from impairment of PT Bank Pan Indonesia Tbk (PT Panin), and a $64 million decrease in net fee and commission income mainly from the Institutional (excluding Markets business unit) division. Operating expenses increased $2,054 million (19%) driven the impact of Suncorp Bank acquisition, staff redundancies from operating model changes, ASIC settlement, and Suncorp Bank accelerated migration, partially offset by productivity initiatives. Credit impairment increased $29 million (7%) driven by a $177 million increase in individually assessed credit impairment, partially offset by $148 million decrease in collectively assessed credit impairment driven by the Suncorp Bank acquisition related collectively assessed credit impairment charge of $244 million in 2024, partially offset by the higher collectively assessed credit impairment charge in 2025. 1,866 151 2024 Cash profit attributable to shareholders of the Company Net interest income Other operating income Operating expenses Credit impairment Income tax expense & non-controlling interests 2025 Cash profit attributable to shareholders of the Company 6,785 (788) (2,054) (29) 5,931 21 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 21 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Analysis of cash profit performance Net interest income Group net interest margin (bps) 2025 2024 $m $m Movt Net interest income 1 17,903 16,037 12% Net interest margin (%) 1 1.54 1.57 -3 bps Average interest earning assets 1,160,327 1,024,290 13% Average deposits and other borrowings 971,840 859,844 13% 1. Includes the major bank levy of -$451 million (2024: -$389 million). Net interest income increased $1,866 million (12%) driven by a $136.0 billion (13%) increase in average interest earning assets, partially offset by a 3 bps decrease in net interest margin. Net interest margin decreased 3 bps driven by unfavourable assets and deposit pricing impacts due to pricing competition, and unfavourable wholesale funding impact. This was partially offset by higher earnings on capital and replicating portfolio, and favourable impact from Suncorp Bank acquisition. Average interest earning assets increased $136.0 billion (13%) driven by the acquisition of Suncorp Bank, lending growth across all divisions particularly in the Australia Retail and Institutional (excluding Markets business unit), higher Markets activities, and higher cash and liquid assets. Average deposits and other borrowings increased $112.0 billion (13%) from the impact of Suncorp Bank acquisition, and growth across at-call deposits, term deposits, repurchase agreements and commercial paper. 3 1 3 2024 Cash net interest margin Assets pricing Deposits pricing Wholesale funding Capital & replicating portfolio Assets & funding mix Group Centre liquids Markets activities Suncorp Bank impact 2025 Cash net interest margin 157 (2) (3) (3) (2) 0 154 22 Australia and New Zealand Banking Group Limited 2025 Annual Report 22 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 22 #### Analysis of cash profit performance Net interest income Group net interest margin (bps) 2025 2024 $m $m Movt Net interest income 1 17,903 16,037 12% Net interest margin (%) 1 1.54 1.57 -3 bps Average interest earning assets 1,160,327 1,024,290 13% Average deposits and other borrowings 971,840 859,844 13% 1. Includes the major bank levy of -$451 million (2024: -$389 million). Net intere st income increased $1,866 million (12%) driven by a $136.0 billion (13%) increase in average interest earning assets, partially offset by a 3 bps decrease in net interest margin. Net interest margin decreased 3 bps driven by unfavourable assets and deposit pricing impacts due to pricing competition, and unfavourable wholesale funding impact. This was partially offset by higher earnings on capital and replicating portfolio, and favourable impact from Suncorp Bank acquisition. Average interest earning assets increased $136.0 billion (13%) driven by the acquisition of Suncorp Bank, lending growth across all divisions particularly in the Australia Retail and Institutional (excluding Markets business unit), higher Markets activities, and higher cash and liquid assets. Average deposits and other borrowings increased $112.0 billion (13%) from the impact of Suncorp Bank acquisition, and growth across at-call deposits, term deposits, repurchase agreements and commercial paper. 3 1 3 2024 Cash net interest margin Assets pricing Deposits pricing Wholesale funding Capital & replicating portfolio Assets & funding mix Group Centre liquids Markets activities Suncorp Bank impact 2025 Cash net interest margin 157 (2) (3) (3) (2) 0 154 22 Australia and New Zealand Banking Group Limited 2025 Annual Report Other operating income Other operating income ($m) 2025 2024 $m $m Movt Net fee and commission income 1 1,790 1,854 -3% Markets other operating income 1,861 2,315 -20% PT Panin impairment (285) - n/a Other 1 592 577 3% Total cash other operating income 3,958 4,746 -17% 1. Excluding the Markets business unit. The Markets business unit is managed on a total revenue basis, with the Net interest income and Other operating income individually not being a true reflection of overall return for the business. Markets Net interest income and Other operating income are summarised in the table below with corresponding commentaries provided on a total Markets income basis. 2025 2024 Markets income $m $m Movt Net interest income 2 278 (131) large Other operating income 2 1,861 2,315 -20% Total 2,139 2,184 -2% 2. Net interest income includes funding costs in the Franchise trading book, primarily on commodity assets, where the related revenue is recognised as Other operating income. Net fee and commission income decreased $64 million (3%) driven by lower non-lending fees in the Institutional division, higher customer remediation, lower insurance commission in the Australia Retail division, lower cards revenue in the New Zealand division, partially offset by the impact of Suncorp Bank acquisition. Markets income decreased $45 million (2%) with a $454 million decrease in Other operating income, partially offset by a $409 million increase in Net interest income. The net $45 million decrease was attributable to decreases in derivative valuation adjustments driven by lower gains from credit and funding spread movements, Commodities revenue due to non-repeat of larger trading gains in the prior year, and Credit & Capital Markets revenue from reduced trading gains. This was partially offset by increases in Balance Sheet revenue from higher average levels of investment securities and increased yields, and Rates revenue due to increased customer activity. PT Panin impairment of $285 million to adjust PT Panin’s carrying value in line with its VIU calculation. 15 2024 Cash other operating income Net fee and commission Markets other operating income PT Panin impairment 2025 Cash other operating income 4,746 (64) (454) (285) 3,958 Other 1 1 23 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 23 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Operating expenses Operating expenses ($m) 2025 2024 $m $m Movt Personnel 6,714 6,140 9% Premises 736 688 7% Technology 2,220 1,894 17% Restructuring 764 235 large Other 2,289 1,712 34% Total cash operating expenses 12,723 10,669 19% Full time equivalent staff 42,640 42,142 1% Average full time equivalent staff 42,711 40,379 6% Personnel expenses increased $574 million (9%) driven by the impact of Suncorp Bank acquisition ($385 million) and inflationary impacts on wages, partially offset by benefits from productivity initiatives. Premises expenses increased $48 million (7%) driven by the impact of Suncorp Bank acquisition ($49 million). Technology expenses increased $326 million (17%) driven by the impact of Suncorp Bank acquisition ($192 million), accelerated software amortisation and impairment on certain technology assets, higher software licence costs and inflationary impacts on vendor costs. This was partially offset by benefits from technology simplification. Restructuring expenses increased $529 million driven by operating model changes to drive a cost reset across the Group announced in the second half of 2025, and Suncorp Bank accelerated migration ($97 million). Other expenses increased $577 million (42%) driven by the impact of Suncorp Bank acquisition ($119 million), ASIC settlement ($271 million), other legal matters and higher investment spend. 574 48 326 529 577 2024 Cash operating expenses Personnel Premises Technology Restructuring Other 2025 Cash operating expenses 10,669 12,723 24 Australia and New Zealand Banking Group Limited 2025 Annual Report 24 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 24 Operating expenses Operating expenses ($m) 2025 2024 $m $m Movt Personnel 6,714 6,140 9% Premises 736 688 7% Technology 2,220 1,89 4 17% Restructuring 764 235 large Other 2,289 1,712 34% Total cash operating expenses 12,723 10,669 19% Full time equivalent staff 42,640 42,142 1% Average full time equivalent staff 42,711 40,379 6% Personnel expenses increased $574 million (9%) driven by the impact of Suncorp Bank acquisition ($385 million) and inflationary impacts on wages, partially offset by benefits from productivity initiatives. Premises expenses increased $48 million (7%) driven by the impact of Suncorp Bank acquisition ($49 million). Technology expenses increased $326 million (17%) driven by the impact of Suncorp Bank acquisition ($192 mill ion), accelerated software amortisation and impairment on certain technology assets, higher software licence costs and inflationary impacts on vendor costs. This was partially offset by benefits from technology simplification. Restructuring expenses increased $529 million driven by operating model changes to drive a cost reset across the Group announced in the second half of 2025, and Suncorp Bank accelerated migration ($97 million). Other expenses increased $577 million (42%) driven by the impact of Suncorp Bank acquisition ($119 million), ASIC settlement ($271 million), other legal matters and higher investment spend. 574 48 326 529 577 2024 Cash operating expenses Personnel Premises Technology Restructuring Other 2025 Cash operating expenses 10,669 12,723 24 Australia and New Zealand Banking Group Limited 2025 Annual Report Credit impairment 2025 2024 Movt Collectively assessed credit impairment charge/(release) ($m) 114 262 -56% Individually assessed credit impairment charge/(release) ($m) 321 144 large Credit impairment charge/(release) ($m) 435 406 7% Gross impaired assets ($m) 2,538 1,693 50% Credit risk weighted assets ($b) 369.6 361.2 2% Total allowance for expected credit losses (ECL) ($m) 4,778 4,555 5% Individually assessed allowance for ECL as % of gross impaired assets 15.7% 18.2% Collectively assessed allowance for ECL as % of credit risk weighted assets 1.18% 1.18% Collectively assessed credit impairment charge/(release) ($m) The collectively assessed impairment charge of $114 million for 2025 was driven by methodology changes to uplift ECL modelled outcomes mainly in the Australian home loan portfolio, deterioration in credit risk profile, and portfolio growth. This was partially offset by reduction in management temporary adjustments and improvement in economic outlook. The collectively assessed impairment charge of $262 million for 2024 was driven by deterioration in credit risk profile across all divisions, the acquisition accounting adjustment in respect of acquired Suncorp Bank performing loans and advances, and portfolio growth. This was partially offset by a reduction in management temporary adjustments as anticipated risks are now represented in the portfolio credit profiles, and an improvement in economic outlook. Individually assessed credit impairment charge/(release) ($m) The individually assessed credit impairment charge increased $177 million driven by the Institutional division ($110 million) due to higher impairments on several single name customers and lower write-backs and recoveries, the Australia Commercial division ($55 million) due to impairment flows in the SME Banking and Agri portfolios, and the Suncorp Bank division ($24 million) due to new impairments in the commercial property portfolio. 262 114 215 5 2024 Collectively assessed credit impairment charge Australia Retail Australia Commercial Institutional New Zealand Suncorp Bank Pacific (2) Group Centre 2025 Collectively assessed credit impairment charge (33) (69) (33) (231) 144 321 3 55 110 24 2024 Individually assessed credit impairment charge Australia Retail Australia Commercial Institutional New Zealand Suncorp Bank Pacific Group Centre 2025 Individually assessed credit impairment charge (14) (1) 0 25 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 25 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Gross impaired assets by division ($m) Gross impaired assets increased $845 million (50%) driven by increases in the Australia Retail division ($568 million) due to restructured home loan facilities, the Institutional division ($96 million) due to several single name customers, the Suncorp Bank division ($96 million) due to new impairments in the commercial property and home loan portfolio, and the Australia Commercial division ($94 million) mainly due to a new single name impairment in the Agri portfolio. Total allowance for expected credit losses ($m) The allowance for ECL increased $223 million driven by a $132 million increase in collectively assessed allowance for ECL, and a $91 million increase in the individually assessed allowance for ECL. The increase in collectively assessed allowance for ECL was driven by methodology changes to uplift ECL modelled outcomes mainly in the Australian home loan portfolio ($380 million), deterioration in credit risk profile ($92 million), portfolio growth ($4 million) and the impact of foreign currency translation ($18 million). This was partially offset by reduction in management temporary adjustments ($215 million) and improvement in economic outlook ($147 million) from a revision to modelling assumptions for the downside and severe scenarios and improvement in base case economic assumptions. The increase in individually assessed allowance for ECL was driven by increases across the Institutional division ($70 million) due to higher impairments on several single name customers and lower write-backs, the Suncorp Bank division ($19 million) due to new impairment in the commercial property portfolio, and the Australia Commercial division ($18 million) due to impairment flows in the SME Banking and Agri portfolios. 568 94 96 96 2024 Gross impaired assets Australia Retail Australia Commercial Institutional New Zealand Suncorp Bank Pacific Group Centre 2025 Gross impaired assets (7) (2) - 2,538 1,693 129 59 39 1 2024 Total allowance for expected credit losses Australia Retail Australia Commercial Institutional New Zealand Suncorp Bank Pacific Group Centre 2025 Total allowance for expected credit losses 4,555 4,676 (27) (75) (3) 26 Australia and New Zealand Banking Group Limited 2025 Annual Report 26 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 26 Gross impaired assets by division ($m) Gross impaired assets increased $845 million (50%) driven by increases in the Australia Retail division ($568 million) due to restructured home loan facilities, the Institutional division ($96 million) due to several single name customers, the Suncorp Bank division ($96 million) due to new impairments in the commercial property and home loan portfolio, and the Australia Commercial division ($94 million) mainly due to a new single name impairment in the Agri portfolio. Total allowance for expected credit losses ($m) The allowance for ECL increased $223 million driven by a $132 million increase in collectively assessed allowance for ECL, and a $91 million increase in the individually assessed allowance for ECL. The increase in collectively assessed allowance for ECL was driven by methodology changes to uplift ECL modelled outcomes mainly in the Australian home loan portfolio ($380 million), deterioration in credit risk profile ($92 million), portfolio growth ($4 million) and the impact of foreign currency translation ($18 million). This was partially offset by reduction in management temporary adjustments ($215 million) and improvement in economic outlook ($147 million) from a revision to modelling assumptions for the downside and severe scenarios and improvement in base case economic assumptions. The increase in individually assessed allowance for ECL was driven by increases across the Institutional division ($70 million) due to higher impairments on several single name customers and lower write-backs, the Suncorp Bank division ($19 million) due to new impairment in the commercial property portfolio, and the Australia Commercial division ($18 million) due to impairment flows in the SME Banking and Agri portfolios. 568 94 96 96 2024 Gross impaired assets Australia Retail Australia Commercial Institutional New Zealand Suncorp Bank Pacific Group Centre 2025 Gross impaired assets (7) (2) - 2,538 1,693 129 59 39 1 2024 Total allowance for expected credit losses Australia Retail Australia Commercial Institutional New Zealand Suncorp Bank Pacific Group Centre 2025 Total allowance for expected credit losses 4,555 4,676 (27) (75) (3) 26 Australia and New Zealand Banking Group Limited 2025 Annual Report 27 #### Divisional performance Australia Australia New Suncorp Group 2025 Retail Commercial Institutional Zealand Bank Pacific Centre Group Net interest margin 1 1.83% 2.53% 0.75% 2.60% 2.08% 3.34% n/a 1.54% Operating expenses to operating income 68.4% 43.6% 45.2% 38.8% 62.9% 73.1% n/a 58.2% Cash profit ($m) 1,048 1,302 2,608 1,609 418 43 (1,097) 5,931 Net loans and advances ($b) 348.8 67.2 216.1 122.9 73.2 1.7 - 830.0 Customer deposits ($b) 186.5 118.9 282.2 101.6 56.2 3.7 - 749.2 Number of FTE 11,023 3,480 6,368 6,689 2,671 986 11,423 42,640 Australia Australia New Suncorp Group 2024 Retail Commercial Institutional Zealand Bank 2 Pacific Centre Group Net interest margin 1 1.91% 2.59% 0.75% 2.57% 1.93% 3.88% n/a 1.57% Operating expenses to operating income 59.7% 43.0% 41.7% 38.8% 73.2% 64.5% n/a 51.3% Cash profit ($m) 1,607 1,342 2,858 1,536 (122) 60 (496) 6,785 Net loans and advances ($b) 332.5 65.0 210.5 123.5 70.9 1.7 - 804.0 Customer deposits ($b) 176.8 116.3 264.4 100.9 54.7 3.6 (0.1) 716.6 Number of FTE 10,832 3,294 6,272 6,756 2,798 985 11,205 42,142 1. The net interest margin excluding Markets business unit was 2.25% (2024: 2.35%) for the Group and 2.20% (2024: 2.38%) for the Institutional division. 2. 2024 Suncorp Bank cash profit reflects 2 months of earnings post acquisition and Suncorp Bank acquisition related adjustment charge after tax of $196 million. 27 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 27 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 28 #### Divisional performance Australia Retail Lending volumes increased driven by home loan growth. Net interest margin decreased driven by lower asset margin from home loan pricing competition, unfavourable deposit margin reflecting impact of lower cash rates and higher net funding costs. This was partially offset by higher deposit margins from pricing optimisation, and higher earnings on replicating portfolio. Other operating income decreased driven by lower insurance-related income and higher customer remediation. Operating expenses increased driven by higher restructuring expense, ASIC settlement, inflationary impacts, higher customer remediation, and higher investment spend. This was partially offset by benefits from productivity initiatives. Credit impairment increased driven by higher collectively assessed credit impairment. Australia Commercial Lending volumes increased driven by Diversified & Specialist Businesses. Net interest margin decreased driven by lower asset margin from pricing competition, unfavourable deposit margin, and unfavourable deposit mix with a shift towards lower margin savings and term deposits. This was partially offset by higher earnings on replicating portfolio, and lower net funding costs. Other operating income decreased driven by higher customer remediation. Operating expenses increased driven by inflationary impacts, partially offset by lower restructuring expense, lower investment spend and benefits from productivity initiatives. Credit impairment increased driven by higher individually assessed credit impairment charge due to impairment flows in the SME Banking and Agri portfolios, partially offset by lower collectively assessed credit impairment. Institutional Lending volumes increased driven by Corporate Finance, partially offset by Transaction Banking. Net interest margin (excl. Markets business unit) decreased driven by lower cash rates, lower asset margin due to lending competition, and unfavourable deposit mix and margins. Other operating income decreased driven by Markets from lower trading gains across Rates, Credit and Commodities. Operating expenses increased driven by ASIC settlement and inflationary impacts. This was partially offset by benefits from productivity initiatives and lower restructuring expense. Credit impairment increased driven by higher individually assessed credit impairment due to higher impairments on several single name customers and lower write-backs and recoveries, partially offset by lower collectively assessed credit impairment. New Zealand Lending volumes increased driven by home loan growth. Net interest margin increased driven by favourable lending margin, partially offset by unfavourable deposit margin. Other operating income decreased driven by lower card revenue. Operating expenses increased driven by inflationary impacts, partially offset by lower restructuring expense, lower investment spend, and benefits from productivity initiatives. Credit impairment decreased driven by lower collectively assessed credit impairment, and lower individually assessed credit impairment charge. Suncorp Bank As Suncorp Bank was acquired by the Group on 31 July 2024, 2024 includes only 2 months results. 2024 results also included acquisition related adjustments of $196 million loss after tax comprising a collectively assessed credit impairment charge of $244 million ($171 million after tax) for Suncorp Bank’s performing loans and advances, and an accelerated software amortisation expense of $36 million ($25 million after tax) on alignment to the Group’s software capitalisation policy. Pacific Cash profit decreased driven by lower net interest income and higher operating expenses. Group Centre Cash loss increased primarily driven by PT Panin impairment, and staff redundancies. 28 Australia and New Zealand Banking Group Limited 2025 Annual Report 28 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 28 #### Divisional performance Australia Retail Lending volumes increased driven by home loan growth. Net interest margin decreased driven by lower asset margin from home loan pricing competition, unfavourable deposit margin reflecting impact of lower cash rates and higher net funding costs. This was partially offset by higher deposit margins from pricing optimisation, and higher earnings on replicating portfolio. Other operating income decreased driven by lower insurance-related income and higher customer remediation. Operating expenses increased driven by higher restructuring expense, ASIC settlement, inflationary impacts, higher customer remediation, and higher investment spend. This was partially offset by benefits from productivity initiatives. Credit impairment increased driven by higher collectively assessed credit impairment. Australia Commercial Lending volumes increased driven by Diversified & Specialist Businesses. Net interest margin decreased driven by lower asset margin from pricing competition, unfavourable deposit margin, and unfavourable deposit mix with a shift towards lower margin savings and term deposits. This was partially offset by higher earnings on replicating portfolio, and lower net funding costs. Other operating income decreased driven by higher customer remediation. Operating expenses increased driven by inflationary impacts, partially offset by lower restructuring expense, lower investment spend and benefits from productivity initiatives. Credit impairment increased driven by higher individually assessed credit impairment charge due to impairment flows in the SME Banking and Agri portfolios, partially offset by lower collectively assessed credit impairment. Institutional Lending volumes increased driven by Corporate Finance, partially offset by Transaction Banking. Net interest margin (excl. Markets business unit) decreased driven by lower cash rates, lower asset margin due to lending competition, and unfavourable deposit mix and margins. Other operating income decreased driven by Markets from lower trading gains across Rates, Credit and Commodities. Operating expenses increased driven by ASIC settlement and inflationary impacts. This was partially offset by benefits from productivity initiatives and lower restructuring expense. Credit impairment increased driven by higher individually assessed credit impairment due to higher impairments on several single name customers and lower write-backs and recoveries, partially offset by lower collectively assessed credit impairment. New Zealand Lending volumes increased driven by home loan growth. Net interest margin increased driven by favourable lending margin, partially offset by unfavourable deposit margin. Other operating income decreased driven by lower card revenue. Operating expenses increased driven by inflationary impacts, partially offset by lower restructuring expense, lower investment spend, and benefits from productivity initiatives. Credit impairment decreased driven by lower collectively assessed credit impairment, and lower individually assessed credit impairment charge. Suncorp Bank As Suncorp Bank was acquired by the Group on 31 July 2024, 2024 includes only 2 months results. 2024 results also included acquisition related adjustments of $196 million loss after tax comprising a collectively assessed credit impairment charge of $244 million ($171 million after tax) for Suncorp Bank’s performing loans and advances, and an accelerated software amortisation expense of $36 million ($25 million after tax) on alignment to the Group’s software capitalisation policy. Pacific Cash profit decreased driven by lower net interest income and higher operating expenses. Group Centre Cash loss increased primarily driven by PT Panin impairment, and staff redundancies. 28 Australia and New Zealand Banking Group Limited 2025 Annual Report #### Financial position of the Group Condensed balance sheet As at 2025 2024 $b $b Movt Assets Cash / Settlement balances owed to ANZ / Collateral paid 188.4 166.5 13% Trading assets and investment securities 213.8 186.0 15% Derivative financial instruments 47.5 54.4 -13% Net loans and advances 830.0 804.0 3% Other 18.0 18.7 -4% Total assets 1,297.7 1,229.6 6% Liabilities Settlement balances owed by ANZ / Collateral received 38.5 22.8 69% Deposits and other borrowings 956.4 905.2 6% Derivative financial instruments 43.9 55.3 -21% Debt issuances 169.3 156.4 8% Other 19.1 21.1 -9% Total liabilities 1,227.2 1,160.8 6% Total equity 70.4 68.8 2% Cash / Settlement balances owed to ANZ / Collateral paid increased $21.9 billion (13%) driven by increases in settlement balances owed to ANZ ($17.9 billion), short-dated reverse repurchase agreements ($12.1 billion) and the impact of foreign currency translation, partially offset by lower balances with central banks ($9.6 billion). Trading assets and investment securities increased $27.8 billion (15%) driven by increases in government and semi-government bonds and treasury bills, increase in commodity assets, and the impact of foreign currency translation. Derivative financial assets and liabilities decreased $6.9 billion (13%) and $11.4 billion (21%) respectively driven by market movements, primarily the depreciation of the NZD and AUD against USD. Net loans and advances increased $26.0 billion (3%) driven by increases across the Australia Retail ($16.3 billion), New Zealand ($4.9 billion) and Suncorp Bank ($2.4 billion) divisions due to home loan growth, and the Institutional division ($2.9 billion) due to higher core lending volumes, partially offset by the impact of foreign currency translation. Settlement balances owed by ANZ / Collateral received increased $15.7 billion (69%) driven by increases in cash clearing accounts. Deposits and other borrowings increased $51.2 billion (6%) driven by higher customer deposits across the Institutional ($12.8 billion), Australia Retail ($9.7 billion), New Zealand ($5.1 billion) and Australia Commercial ($2.7 billion) divisions, increases in deposits from banks and repurchase agreements ($11.2 billion), certificates of deposit ($3.2 billion), and commercial paper ($1.9 billion), and the impact of foreign currency translation. Debt issuances increased $12.9 billion (8%) driven by the issue of new senior and subordinated debt, partially offset by the redemption of ANZ Capital Notes 5. 29 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 29 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Liquidity Aver age 2025 2024 Total liquid assets ($b) 1 312.8 273.9 Liquidity Coverage Ratio (LCR) 1 132% 133% 1. Full year average, calculated as prescribed per APRA Prudential Regulatory Standard (APS 210 Liquidity) and consistent with APS 330 requirements. Group holds a portfolio of high quality unencumbered liquid assets in order to protect the Group’s liquidity position in a severely stressed environment, as well as to meet regulatory requirements. High Quality Liquid Assets comprise three categories, with the definitions consistent with Basel 3 LCR: • Highest-quality liquid assets (HQLA1): Cash, highest credit quality government, central bank or public sector securities eligible for repurchase with central banks to provide same-day liquidity. • High-quality liquid assets (HQLA2): High credit quality government, central bank or public sector securities, high quality corporate debt securities and high quality covered bonds eligible for repurchase with central banks to provide same-day liquidity. • Alternative liquid assets (ALA): Eligible securities listed by the RBNZ. Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and the risk appetite set by the ANZBGL Board. The LCR remained above the regulatory minimum of 100% throughout this period. Funding 2025 2024 $b $b W holesale funding instruments 265.7 248.9 Customer deposits 749.2 716.6 Other liabilities 212.3 195.4 Shareholders’ equity 70.4 68.8 T otal liabilities and shareholders’ equity 1,297.6 1,229.7 Net Stable Funding Ratio 115% 116% The Group targets a diversified funding base, avoiding undue concentrations by investor type, maturity, market source and currency. Net Stable Funding Ratio remained above the regulatory minimum of 100% throughout this period. During 2025, the Group issued $36.7 billion of term wholesale funding (excluding unsubordinated debt with shorter tenors of 12 to 18 months). 30 Australia and New Zealand Banking Group Limited 2025 Annual Report 30 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 30 Liquidity Aver age 2025 2024 Total liquid assets ($b) 1 312.8 273.9 Liquidity Coverage Ratio (LCR) 1 132% 133% 1. Full year average, calculated as prescribed per APRA Prudential Regulatory Standard (APS 210 Liquidity) and consistent with APS 330 requirements. Group holds a portfolio of high quality unencumbered liquid assets in order to protect the Group’s liquidity position in a severely stressed environment, as well as to meet regulatory requirements. High Quality Liquid Assets comprise three categories, with the definitions consistent with Basel 3 LCR: • Highest-quality liquid assets (HQLA1): Cash, highest credit quality government, central bank or public sector securities eligible for repurchase with central banks to provide same-day liquidity. • High-quality liquid assets (HQLA2): High credit quality government, central bank or public sector securities, high quality corporate debt securities and high quality covered bonds eligible for repurchase with central banks to provide same-day liquidity. • Alternative liquid assets (ALA): Eligible securities listed by the RBNZ. Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and the risk appetite set by the ANZBGL Board. The LCR remained above the regulatory minimum of 100% throughout this period. Funding 2025 2024 $b $b W holesale funding instruments 265.7 248.9 Customer deposits 749.2 716.6 Other liabilities 212.3 195.4 Shareholders’ equity 70.4 68.8 T otal liabilities and shareholders’ equity 1,297.6 1,229.7 Net Stable Funding Ratio 115% 116% The Group targets a diversified funding base, avoiding undue concentrations by investor type, maturity, market source and currency. Net Stable Funding Ratio remained above the regulatory minimum of 100% throughout this period. During 2025, the Group issued $36.7 billion of term wholesale funding (excluding unsubordinated debt with shorter tenors of 12 to 18 months). 30 Australia and New Zealand Banking Group Limited 2025 Annual Report Capital management 2025 2024 Movt Common Equity Tier 1 (Level 2) - APRA Basel III 12.0% 12.2% Credit risk weighted assets ($b) 369.6 361.2 2% Total risk weighted assets ($b) 458.5 446.6 3% APRA Leverage Ratio 4.4% 4.7% The Group’s capital management framework includes managing to Board approved risk appetite settings and maintaining all regulatory requirements. APRA requirements at Level 1 and Level 2 include ANZ operating at or above APRA’s expectation for Domestic Systematically Important Banks (D-SIBs). APRA, under the authority of the Banking Act 1959, sets minimum regulatory requirements for banks including what is acceptable as regulatory capital and provides methods of measuring the risks incurred by ANZ Bank Group. The ANZ Bank Group’s Common Equity Tier 1 ratio was 12.0% based on APRA Basel III standards, exceeding APRA’s minimum requirements. It increased 25 bps driven by cash earnings, an increase due to decrease in capital floor driven by volume management between standardised and IRB RWA, and an increase in IRRBB RWA. This was partially offset by dividends paid during the year. At 30 September 2025, ANZ Bank Group’s APRA Leverage Ratio was 4.4% which is above the 3.5% minimum for internal ratings-based (IRB) ADIs, including ANZ. Dividends ANZBGL paid the following dividends during the year: • $2,472 million 2024 final dividend to ANZ BH Pty Ltd on 20 December 2024; • $2,108 million 2024 interim dividend to ANZ BH Pty Ltd on 1 July 2025. On 7 November 2025, the Directors proposed a final dividend of $2,476 million be paid on 19 December 2025, to ANZ BH Pty Ltd. Further details on dividends paid during the year ended 30 September 2025 are set out in Note 6 Dividends in the Financial Report. 31 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 31 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Remuneration report 1. LTVR restricted rights comprise 100% of the CRO’s LTVR. Holly Kramer Chair – People & Culture Commiee #### Remuneration report #### 2025 Remuneration #### Report – audited Dear Shareholder, 2025 has been an eventful and challenging year for ANZ. While we were pleased to welcome our new CEO, Nuno Matos, we have also had to confront the impact of issues resulting from non-financial risk (NFR) shortcomings at the bank. From a remuneration outcome perspective, the Board carefully weighed up a range of factors in its deliberations, including the reputational and financial impacts of a number of maers, referred to throughout the 2025 Remuneration Report as ‘NFR Maers’. These included a selement with ASIC, the imposition of a Court Enforceable Undertaking with APRA, and the findings from independent reviews into the root causes regarding NFR management and the 2024 Markets trading issues. The Board also balanced a full year statutory profit that was 10% lower than 2024, against a range of accomplishments in the year. These include the achievement of synergy targets related to the Suncorp Bank acquisition, significant uplis in active ANZ Plus customers - many of which are new-to-bank, achievement of our four environmental ESG targets, recognition of Institutional as a market leading business, and enhancement of a number of digital propositions in New Zealand including the modern banking platform core. Similarly, it was important to acknowledge the way that our executives have met the challenge of delivering the APRA Root Cause Remediation Plan and have embraced the vision and changes led by our CEO to transform ANZ into a leading bank in terms of customer and shareholder outcomes. First strike and shareholderfeedback Finally, we were mindful of our shareholdersfeedback from 2024, where we experienced a strike against our Remuneration Report. The Chairman and I met with many of our shareholders over the course of 2025, to beer understand the key drivers behind their voting decisions. Weare appreciative of the candid feedback, and we have endeavoured to incorporate that into our decision-making for 2025. 2025 Group Scorecard The 2025 Group Scorecard outcome was30% (of maximum), which was significantly impacted by the Risk Modifier as a result of the various NFR Maers. More detail on the Group Scorecard assessment can be found in section 6.1.1. The Group Scorecard accounts for 100% of the CEO’s Short Term Variable Remuneration (STVR), 25% to 50% of Disclosed Executives’ STVR and is an input into the overall employee variable remuneration pool. We believe that the Group Scorecard reflects what was a challenging year for ANZ. 2025 variable remunerationdecisions Irrespective of the 2025 Group Scorecard outcome, the Board held executives to account for the maers discussed above. This resulted in the following outcomes: 1. STVR: Despite the issues predating his arrival, the CEO proposed a 0% STVR for himself to lead by example and as a reflection of his commitment to the ANZ team. The Board approved this outcome and determined that 0% STVR was also appropriate for our current and former Australian based executive leadership team (excluding two executives in acting roles), in recognition of their collective accountability for NFR management. This means that neither our current nor former CEO received STVR for the year. 2. LTVR: In accordance with our framework, the Board completed a risk-based pre grant assessment when determining the 2026 restricted rights component of the Long Term Variable Remuneration (LTVR) grants for current executives, which comprise 50% of the LTVR opportunity. 1 Spe cifically, the Group Executive Institutional had a 50% reduction to his 2026 LTVR and the Chief Risk Ocer (CRO) was ineligible for 2026 LTVR as aresult of his move to a non-Group Executive role – reflecting their accountability for shortcomings identified in Institutional Markets. The Group Executive Australia Commercial had a 25% reduction to 2026 LTVR reflecting accountability for NFR Maers in Commercial. 3. Malus: The former CEO and three former executives who le the bank during the year were not eligible for 2026 LTVR grants. Therefore, the Board determined that some or all equity due to vest in November/December 2025 would be forfeited for these individuals (i.e. malus) to ensure overall consequences were appropriate and proportionate. In the case of our former CEO, who was ultimately accountable for the various NFR Maers, and the former Group Executive Australia Retail, who was accountable for shortcomings in Retail, the Board also forfeited the calendar year 2026 equity on foot. See section 10.1.1 for details of the application of malus. The below table summarises the variable remuneration decisions determined by the Board for each Disclosed Executive as part of the 2025 performance and remuneration review process. The Board considered the overall impact across 2024 and 2025, during which many of the NFR Maers came to light, to determine the appropriate outcomes with respect to 2025 STVR, 2026 LTVR, and the application of malus. The total 2024 and 2025 value forfeited is shown as a percentage of current annual fixed remuneration (FR) rather than variable remuneration, to enable ease of comparison across Disclosed Executives – i.e. diering LTVR eligibility and pro-rated STVR for some individuals makes variable remuneration a more challenging reference point. The Board considers that the major reductions are a demonstration of a strong accountability culture and is commied to continuing to clearly link remuneration outcomes to performance. Changes for 2026 Taking into consideration feedback from various shareholders, the Board agreed to remove LTVR restricted rights from the minimum shareholding calculation for Executive Commiee members, and change the minimum shareholding requirement (MSR) from 200% of fixed Australia and New Zealand Banking Group Limited 2025 Annual Report32 ![]() #### Remuneration report 1. LTVR restricted rights comprise 100% of the CRO’s LTVR. Holly Kramer Chair – People & Culture Commiee #### Remuneration report #### 2025 Remuneration #### Report – audited Dear Shareholder, 2025 has been an eventful and challenging year for ANZ. While we were pleased to welcome our new CEO, Nuno Matos, we have also had to confront the impact of issues resulting from non-financial risk (NFR) shortcomings at the bank. From a remuneration outcome perspective, the Board carefully weighed up a range of factors in its deliberations, including the reputational and financial impacts of a number of maers, referred to throughout the 2025 Remuneration Report as ‘NFR Maers’. These included a selement with ASIC, the imposition of a Court Enforceable Undertaking with APRA, and the findings from independent reviews into the root causes regarding NFR management and the 2024 Markets trading issues. The Board also balanced a full year statutory profit that was 10% lower than 2024, against a range of accomplishments in the year. These include the achievement of synergy targets related to the Suncorp Bank acquisition, significant uplis in active ANZ Plus customers - many of which are new-to-bank, achievement of our four environmental ESG targets, recognition of Institutional as a market leading business, and enhancement of a number of digital propositions in New Zealand including the modern banking platform core. Similarly, it was important to acknowledge the way that our executives have met the challenge of delivering the APRA Root Cause Remediation Plan and have embraced the vision and changes led by our CEO to transform ANZ into a leading bank in terms of customer and shareholder outcomes. First strike and shareholder feedback Finally, we were mindful of our shareholdersfeedback from 2024, where we experienced a strike against our Remuneration Report. The Chairman and I met with many of our shareholders over the course of 2025, to beer understand the key drivers behind their voting decisions. Weare appreciative of the candid feedback, and we have endeavoured to incorporate that into our decision-making for 2025. 2025 Group Scorecard The 2025 Group Scorecard outcome was30% (of maximum), which was significantly impacted by the Risk Modifier as a result of the various NFR Maers. More detail on the Group Scorecard assessment can be found in section 6.1.1. The Group Scorecard accounts for 100% of the CEO’s Short Term Variable Remuneration (STVR), 25% to 50% of Disclosed Executives’ STVR and is an input into the overall employee variable remuneration pool. We believe that the Group Scorecard reflects what was a challenging year for ANZ. 2025 variable remuneration decisions Irrespective of the 2025 Group Scorecard outcome, the Board held executives to account for the maers discussed above. This resulted in the following outcomes: 1. STVR: Despite the issues predating his arrival, the CEO proposed a 0% STVR for himself to lead by example and as a reflection of his commitment to the ANZ team. The Board approved this outcome and determined that 0% STVR was also appropriate for our current and former Australian based executive leadership team (excluding two executives in acting roles), in recognition of their collective accountability for NFR management. This means that neither our current nor former CEO received STVR for the year. 2. LTVR: In accordance with our framework, the Board completed a risk-based pre grant assessment when determining the 2026 restricted rights component of the Long Term Variable Remuneration (LTVR) grants for current executives, which comprise 50% of the LTVR opportunity. 1 Spe cifically, the Group Executive Institutional had a 50% reduction to his 2026 LTVR and the Chief Risk Ocer (CRO) was ineligible for 2026 LTVR as aresult of his move to a non-Group Executive role – reflecting their accountability for shortcomings identified in Institutional Markets. The Group Executive Australia Commercial had a 25% reduction to 2026 LTVR reflecting accountability for NFR Maers in Commercial. 3. Malus: The former CEO and three former executives who le the bank during the year were not eligible for 2026 LTVR grants. Therefore, the Board determined that some or all equity due to vest in November/December 2025 would be forfeited for these individuals (i.e. malus) to ensure overall consequences were appropriate and proportionate. In the case of our former CEO, who was ultimately accountable for the various NFR Maers, and the former Group Executive Australia Retail, who was accountable for shortcomings in Retail, the Board also forfeited the calendar year 2026 equity on foot. See section 10.1.1 for details of the application of malus. The below table summarises the variable remuneration decisions determined by the Board for each Disclosed Executive as part of the 2025 performance and remuneration review process. The Board considered the overall impact across 2024 and 2025, during which many of the NFR Maers came to light, to determine the appropriate outcomes with respect to 2025 STVR, 2026 LTVR, and the application of malus. The total 2024 and 2025 value forfeited is shown as a percentage of current annual fixed remuneration (FR) rather than variable remuneration, to enable ease of comparison across Disclosed Executives – i.e. diering LTVR eligibility and pro-rated STVR for some individuals makes variable remuneration a more challenging reference point. The Board considers that the major reductions are a demonstration of a strong accountability culture and is commied to continuing to clearly link remuneration outcomes to performance. Changes for 2026 Taking into consideration feedback from various shareholders, the Board agreed to remove LTVR restricted rights from the minimum shareholding calculation for Executive Commiee members, and change the minimum shareholding requirement (MSR) from 200% of fixed 52 Australia and New Zealand Banking Group Limited 2025 Annual Report52 #### Contents 1. Key Management Personnel (KMP) 54 2. Remuneration governance 55 3. Executive performance and remuneration approach 56 4. Five-year performance 57 5. Executive performance and remuneration framework 59 6. Executive remuneration outcomes 68 7. Accountability and Consequence Framework 78 8. Internal governance 80 9. Non-Executive Director (NED) remuneration 81 10. Other statutory information 83 Variable Remuneration decisions by Board as part of 2025 review process Malus 1 Total 2024 & 2025 Forfeited 2 2025 STVR 2026 LTVR Full Face Value Value % of Fixed Remuneration Current CEO N Matos $0 Proposed a zero outcome for his time as CEO during 2025 – part-year STVR 100% of LTVR value Full 2026 LTVR value plus portion for commencement as CEO in 2025 $0.975m 39% Former CEO S Ellio $0 Reflects accountability as former CEO for NFR Maers and resulting financial and reputational impacts Not eligible Not eligible for 2026 LTVR - noting 2025 LTVR of $3.2m was forfeited prior to 2024 AGM $7. 3 9 m $13.49m 539% Current Disclosed Executives Board applied its discretion to adjust STVR to zero, with exception of individuals in Acting roles and A Watson whose outcomes are determined by the ANZ NZ Board 50% of full LTVR opportunity (restricted rights) is subject to a risk based pre grant assessment. The below adjustments vs full LTVR opportunity were made to ensure appropriate overall consequences, balanced against future focused nature of this award M Whelan $0 0% of restricted rights (50% of full LTVR) $3.5m 235% K Corbally $0 Not eligible $2.1m 162% - 212% 3 C Morgan $0 50% of restricted rights (75% of full LTVR) $2.1m 183% E Clements $0 $1.3m 144% F Faruqui $0 $1.75m 137% A Watson $692K $0.8m 74% B Rush (Acting) $229K n/a M Bullock (Acting) $155K Not eligible n/a Former Disclosed Executives M Carnegie $0 Not eligible $2.9m $4.4m 339% G Florian $0 Not eligible $0.24m $1.78m 141% A Strong $0 Not eligible $0.16m $1.16m 129% 1. Malus reflects the downward adjustment of unvested deferred variable remuneration. Full face value calculated based on the one day volume weighted average price (VWAP) of ANZGHL shares traded on the ASX on 30 September 2025 multiplied by the number of deferred shares and/or rights. 2. Represents the impact of the Board’s decisions in 2024 and 2025, with the total opportunity forfeited representing the total STVR/LTVR dollar forfeited (compared to maximum/full opportunity) plus the estimated full face value of forfeited equity. 3. 162% represents forfeited value due to Board’s decision that K Corbally not eligible for 2026 LTVR. 212% represents estimated value if eligible and Board’s intention for 50% to be forfeited. Lowest relative impact Highest relative impact remuneration to 150% of fixed remuneration (excluding the CEO). While these changes likely mean it will take a longer period for executives to accumulate the MSR, the five-year requirement to meet the MSR remains unchanged. Delivering the 2026 component of the Root Cause Remediation Plan (RCRP) in response to the Court Enforceable Undertaking is critical for ANZ, not only tostrengthen NFR management but to support ANZ’s cultural transformation. Therefore, to reinforce its importance, the Group and Executive scorecards will have a specific Risk/RCRP objective weighted at 25%. This is in addition to the Risk Modifier that will also have an additional impact if there are material shortfalls in RCRP delivery. To accommodate this significant weighting, the financial component of scorecards will reduce from50% to 45% for the three-year RCRPdelivery program. Non-Executive Director (NED) fees For 2025 there was no change to NED fees following the annual NED fee review. Conclusion As we look forward to 2026, my Board colleagues and I are focused on the achievement of ANZ’s 2030 strategy. We have agreed with management a 2026 Group Scorecard, which underpins delivery and has been designed to reward the ambitious targets that we have set. Holly Kramer Chair – People & Culture Commiee 53 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 33 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() The Remuneration Report for Australia and New Zealand Banking Group Limited (ANZBGL) outlines our remuneration strategy and structure and the remuneration practices that apply to Key Management Personnel (KMP). This report has been prepared, and audited, as required by the Corporations Act 2001. It forms part of the Directors’ Report. This report includes disclosures for the full financial year 2025 – 1 October 2024 to 30 September 2025. Ordinary shares and employee equity, i.e. deferred shares, deferred share rights, performance rights and restricted rights held prior to 3 January 2023 1 were previously ANZBGL related equity – post the listing of ANZGHL the equity was converted to ANZGHL related equity. References to ‘the Board’ throughout this report mean the Boards of ANZGHL and ANZBGL. The ANZ Group Scorecard approach disclosures in Section 5.3 and the 2025 ANZ Group Scorecard outcomes disclosures in Section 6.1.1 relate to ANZGHL rather than ANZBGL given this forms the basis for determining performance and remuneration outcomes for the CEO and Disclosed Executives. KMP are Directors of the Group (or entity) whether executive directors or otherwise, and those personnel with a key responsibility for the strategic direction and management of the Group (or entity), i.e. members of the Group Executive Commiee (ExCo) who have Financial Accountability Regime (FAR) Accountability and who report to the CEO, referred to as Disclosed Executives. 1. ANZ Group Holdings Limited (ANZGHL) replaced Australia and New Zealand Banking Group Limited (ANZBGL) as the listed entity on 3 January 2023 under a scheme of arrangement approved by shareholders at the AGM on 15 December 2022. #### 1.1 Disclosed Executive and Non-Executive Director #### changes There were several changes to our KMP during the 2025 year: • Jane Halton retired as a Non-Executive Director (NED) on 31 March 2025. • Alison Gerry commenced as a NED on 9May 2025. • Shayne Ellio concluded as CEO and Executive Director on 11 May 2025. • Nuno Matos commenced as CEO and Executive Director on 12 May 2025. • Antony Strong concluded as Group Executive, Strategy & Transformation 1 July 2025. • Maile Carnegie concluded as Group Executive, Australia Retail on 1 July 2025, with Bruce Rush appointed as Acting Group Executive, Australia Retail & CEO Suncorp Bank from 2 July 2025. Subsequently Pedro Rodeia appointed Group Executive, Australia Retail from 17November 2025. • Gerard Florian concluded as Group Executive, Technology & Group Services on 4 August 2025, with Michael Bullock appointed as Acting Group Executive, Technology & Group Services from 5 August 2025. Subsequently Donald Patra appointed Group Chief Information Ocer from 24 November 2025. • Stephen White appointed as Group Executive Operations from 29 October 2025. • Kevin Corbally will step down from the role of Chief Risk Ocer (CRO), and be appointed Managing Director, Capital Management Institutional. He will continue to serve as CRO until the commencement of Christine Palmer, appointed Group CRO from 1 December 2025. #### 1.2 Key Management Personnel (KMP) detail The KMP whose remuneration is disclosed in this year’s report are: 2025 NEDs – Current P O’Sullivan Chairman J Cincoa Director (ANZBGL NED only) A Gerry Director from 9 May 2025 R Gibb Director G Hodges Director (ANZBGL NED only) H Kramer Director C O’Reilly Director J Smith Director S St John Director 2025 NEDs – Former J Halton Former Director – retired 31 March 2025 2025 CEO and Disclosed Executives – Current N Matos CEO and Executive Director from 12 May 2025 M Bullock Acting Group Executive, Technology & Group Services from 5 August 2025 E Clements Group Executive, Talent & Culture (GE T&C) K Corbally Chief Risk Ocer (CRO) F Faruqui Chief Financial Ocer (CFO) C Morgan Group Executive, Australia Commercial B Rush Acting Group Executive, Australia Retail & CEO Suncorp Bank from 2 July 2025 A Watson Group Executive and CEO, New Zealand M Whelan Group Executive, Institutional 2025 CEO and Disclosed Executives – Former S Ellio Former CEO and Executive Director – concluded in role 11 May 2025 and ceased employment 30 September 2025 M Carnegie Former Group Executive, Australia Retail – concluded in role 1 July 2025 and ceased employment 1 August 2025 G Florian Former Group Executive, Technology & Group Services – concluded in role 4 August 2025 and ceasing employment 7 November 2025 A Strong Former Group Executive, Strategy & Transformation – concluded in role and ceased employment 1 July 2025 See section 1.1 regarding changes to KMP announced in 2025, eective for 2026. No additional changes to KMP to those announced since the end of 2025 up to the date of signing the Directors’ Report. 1. Key Management Personnel (KMP) 1.1 Disclosed Executive and Non-Executive Director changes 1.2 Key Management Personnel (KMP) detail 34 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() The Remuneration Report for Australia and New Zealand Banking Group Limited (ANZBGL) outlines our remuneration strategy and structure and the remuneration practices that apply to Key Management Personnel (KMP). This report has been prepared, and audited, as required by the Corporations Act 2001. It forms part of the Directors’ Report. This report includes disclosures for the full financial year 2025 – 1 October 2024 to 30 September 2025. Ordinary shares and employee equity, i.e. deferred shares, deferred share rights, performance rights and restricted rights held prior to 3 January 2023 1 were previously ANZBGL related equity – post the listing of ANZGHL the equity was converted to ANZGHL related equity. References to ‘the Board’ throughout this report mean the Boards of ANZGHL and ANZBGL. The ANZ Group Scorecard approach disclosures in Section 5.3 and the 2025 ANZ Group Scorecard outcomes disclosures in Section 6.1.1 relate to ANZGHL rather than ANZBGL given this forms the basis for determining performance and remuneration outcomes for the CEO and Disclosed Executives. KMP are Directors of the Group (or entity) whether executive directors or otherwise, and those personnel with a key responsibility for the strategic direction and management of the Group (or entity), i.e. members of the Group Executive Commiee (ExCo) who have Financial Accountability Regime (FAR) Accountability and who report to the CEO, referred to as Disclosed Executives. 1. ANZ Group Holdings Limited (ANZGHL) replaced Australia and New Zealand Banking Group Limited (ANZBGL) as the listed entity on 3 January 2023 under a scheme of arrangement approved by shareholders at the AGM on 15 December 2022. #### 1.1 Disclosed Executive and Non-Executive Director #### changes There were several changes to our KMP during the 2025 year: • Jane Halton retired as a Non-Executive Director (NED) on 31 March 2025. • Alison Gerry commenced as a NED on 9May 2025. • Shayne Ellio concluded as CEO and Executive Director on 11 May 2025. • Nuno Matos commenced as CEO and Executive Director on 12 May 2025. • Antony Strong concluded as Group Executive, Strategy & Transformation 1 July 2025. • Maile Carnegie concluded as Group Executive, Australia Retail on 1 July 2025, with Bruce Rush appointed as Acting Group Executive, Australia Retail & CEO Suncorp Bank from 2 July 2025. Subsequently Pedro Rodeia appointed Group Executive, Australia Retail from 17November 2025. • Gerard Florian concluded as Group Executive, Technology & Group Services on 4 August 2025, with Michael Bullock appointed as Acting Group Executive, Technology & Group Services from 5 August 2025. Subsequently Donald Patra appointed Group Chief Information Ocer from 24 November 2025. • Stephen White appointed as Group Executive Operations from 29 October 2025. • Kevin Corbally will step down from the role of Chief Risk Ocer (CRO), and be appointed Managing Director, Capital Management Institutional. He will continue to serve as CRO until the commencement of Christine Palmer, appointed Group CRO from 1 December 2025. #### 1.2 Key Management Personnel (KMP) detail The KMP whose remuneration is disclosed in this year’s report are: 2025 NEDs – Current P O’Sullivan Chairman J Cincoa Director (ANZBGL NED only) A Gerry Director from 9 May 2025 R Gibb Director G Hodges Director (ANZBGL NED only) H Kramer Director C O’Reilly Director J Smith Director S St John Director 2025 NEDs – Former J Halton Former Director – retired 31 March 2025 2025 CEO and Disclosed Executives – Current N Matos CEO and Executive Director from 12 May 2025 M Bullock Acting Group Executive, Technology & Group Services from 5 August 2025 E Clements Group Executive, Talent & Culture (GE T&C) K Corbally Chief Risk Ocer (CRO) F Faruqui Chief Financial Ocer (CFO) C Morgan Group Executive, Australia Commercial B Rush Acting Group Executive, Australia Retail & CEO Suncorp Bank from 2 July 2025 A Watson Group Executive and CEO, New Zealand M Whelan Group Executive, Institutional 2025 CEO and Disclosed Executives – Former S Ellio Former CEO and Executive Director – concluded in role 11 May 2025 and ceased employment 30 September 2025 M Carnegie Former Group Executive, Australia Retail – concluded in role 1 July 2025 and ceased employment 1 August 2025 G Florian Former Group Executive, Technology & Group Services – concluded in role 4 August 2025 and ceasing employment 7 November 2025 A Strong Former Group Executive, Strategy & Transformation – concluded in role and ceased employment 1 July 2025 See section 1.1 regarding changes to KMP announced in 2025, eective for 2026. No additional changes to KMP to those announced since the end of 2025 up to the date of signing the Directors’ Report. 1. Key Management Personnel (KMP) 1.1 Disclosed Executive and Non-Executive Director changes 1.2 Key Management Personnel (KMP) detail 54 Australia and New Zealand Banking Group Limited 2025 Annual Report 2. Remuneration governance 2.1 First strike and shareholder feedback 2.2 The People & Culture Commiee 2.1 First strike and #### shareholder feedback At the AGM in 2024, ANZ recorded a ‘first strike’ against our Remuneration Report. The Chairman and the Chair of the People & Culture Commiee met with many of our shareholders over the course of 2025, to beer understand the key drivers behind their voting decisions. Feedback from some shareholders thatintheir view reflected that 2024 remuneration outcomes were misaligned, particularly given issues raised by APRA and ASIC, as outlined in the Chairman’s 2024 message. Importantly, 2024 outcomes were determined based on information knownat that time. The Board highlighted that reviews were ongoing, and full accountability would be established once these had been concluded. In light of the findings from independent reviews completed in 2025 and in accordance with CPS 511, the Board deliberated on the degree of accountability for each executive when determining 2025 variable remuneration outcomes. In addition, the Board considered the combined impact of remuneration outcomes over 2024 and 2025. Given the above, the Board has sought to enhance transparency in the 2025 Remuneration Report, particularly regarding the Board’s decision-making for 2025 of variable remuneration outcomes and how risk management and non- financial considerations were factored into those decisions. The Board are appreciative of the candid feedback from shareholders and have endeavoured to incorporate that into the decision-making for 2025. #### 2.2 The People & Culture #### Commiee 2.2.1 Role of the People & CultureCommiee The Board is ultimately responsible for and oversees ANZ Group’s Performance and Remuneration Framework and its eective application throughout the ANZ Group. The People & Culture Commiee’s role is to assist the Board in its oversight of the eective operation of the Performance and Remuneration Framework and other Talent & Culture (T&C) maers. It has beendelegated authority to act as the remuneration commiee for ANZBGL. During the year the People & Culture Commiee met on six occasions and reviewed and approved, or made recommendations to the Board on maersincluding: • remuneration for the CEO and other key executives broader than those disclosed in the Remuneration Report in accordance with ANZ’s Board level Performance and Remuneration Policies, and fees for the NEDs; • maers related to Performance and Remuneration Framework compliance with APRA’s Prudential Standard CPS 511 Remuneration; • annual objectives seing, reporting andassessment of the ANZ Group Scorecard and annual variable remuneration spend; • performance and reward outcomes forkey senior executives, including the consideration of material events that have either occurred or came to light during the year; • the release, further deferral or application of malus of deferred remuneration or clawback; • key senior executive appointments andterminations; • the review of ANZ’s Board level Performance and Remuneration Policies, and the Accountability & Consequence Framework (A&CF); • building capabilities required to deliveron our strategy; • succession plans for key senior executives; and • culture, diversity and inclusion, employee engagement, and how wework. 2.2.2 Link between remunerationand risk The People & Culture Commiee has a strong focus on the relationship between business performance, risk management and remuneration, aligned with our business strategy. The chairs of the Risk and Audit Commiees and the full Board (ANZGHL andANZBGL) are in aendance for specific People & Culture Commiee meetings. A joint meeting of the People & Culture, Risk and Audit Commiees was held to review: • material risk, conduct and audit events that either occurred or came to light in 2025; • 2025 performance and variable remuneration recommendations at both the Group, CEO and Disclosed Executive level. To further strengthen the link between remuneration and risk: • the Board had three NEDs, in addition to the Chairman, in 2025 who served on both the People & Culture Commiee and the Risk Commiee; • the People & Culture Commiee has free and unfeered access to risk and financial control personnel, noting that the CRO and CFO aend People & Culture Commiee meetings for specific agenda items; • the CRO together with GE T&C and Group General Manager Internal Audit (GGM IA) provides an independent report to the People & Culture Commiee on the most material risk, conduct and audit events as relevant to help inform considerations of performance and remuneration, and accountability and consequences at the Group, Divisional and individual level; • the CRO also provides an independent report to assist the Board in their assessment of performance and remuneration outcomes for the CEO and Disclosed Executives; • the chairs of the Risk and Audit Commiees are asked to provide input to ensure appropriate consideration of all relevant risk and internal audit issues; • the ANZ Group Scorecard and Divisional Scorecards include a Risk Modifier, a key element that forms an integral part of each framework’s assessment and directly impacts the overall outcomes; and • the LTVR restricted rights pre grant and pre vest assessments undertaken by the Board are primarily based on non-financial risk outcomes. More details about the role of the People & Culture Commiee, including its Charter, can be found on our website. Go to anz.com > Our company > Strong governance framework > ANZ People & Culture Commiee Charter Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 35 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 3. Executive performance and remuneration approach 3.1 Summary of approach 3.2 Alignment of remuneration and risk #### ANZ’s ambition and strategy 1 Is underpinned by our Performance and Remuneration Policies which include our Reward Principles: Aract, motivate and keep great people Reward our people for doing the right thing having regard to our customers and shareholders Focus on how things are achieved as much as what is achieved Fair and simple to understand With remuneration delivered to our CEO and Disclosed Executives through: Fixed remuneration (FR) Performance linked variable remuneration Short Term Variable Remuneration (STVR) Long Term Variable Remuneration (LTVR) Linked to shareholder interests through: • Substantial shareholding requirements, see Section 8.3 – around 80% of variable remuneration at maximum opportunity is deferred into ANZ equity and 75% for the CRO to ensure alignment with shareholder interests and to ensure focus on long-term value creation • Significant variable remuneration deferral up to 5 and 6 years in ANZ equity • Significant weighting to the LTVR component, i.e. around 60% of variable remuneration, which includes Relative and Absolute Total Shareholder Return (TSR) hurdles • Consideration of the shareholder experience in respect of the share price and dividend in determining individual outcomes 1. See the ‘Our ambition and strategy’ section of the Annual Report. #### 3.1 Summary of approach The following overview highlights how the executive performance and remuneration framework supports ANZ’s ambition and strategy and is aligned to shareholder interests. 2.2.3 Conflicts of interest To help mitigate potential conflicts of interest: • management are not in aendance when their own performance or remuneration is being discussed by the People & Culture Commiee or Board; • the CRO’s remuneration arrangements dier to other Disclosed Executives to preserve the independence of the role; • the Enterprise Accountability Group (EAG) also has processes in place to help mitigate conflicts of interest as outlined in section 7; and • the People & Culture Commiee seeks input from a number of sources to inform their consideration of performance and remuneration outcomes for the CEO and Disclosed Executives including: – independent reports from Risk, Finance, Talent and Culture, and Internal Audit; – material risk, conduct and audit event data provided by the CRO; and – input from both the Audit Commiee and the Risk Commiee of the Board. 2.2.4 External advisors provided information but not recommendations The People & Culture Commiee canengage independent external advisors asneeded. Throughout the year, the People & CultureCommiee and management received information from the following external advisors: Ashurst, Deloie, EY,PayIQ Executive Pay and PricewaterhouseCoopers. This information related to market data, marketpractices, analysis and modelling,legislative requirements andthe interpretation of governance andregulatory requirements. During the year, ANZ did not receive any remuneration recommendations from external advisors about the remuneration of KMP. ANZ employs in-house remuneration professionals who provide recommendations to the People & Culture Commiee and the Board. The Board made its decisions independently, using the information provided and with careful regard to ANZ’s key strategic priorities, ambition and values, risk appetite, and theANZ Group Performance and Remuneration Framework, ANZ’s Board level Performance and Remuneration Policies and ANZ’s Reward Principles 36 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 3. Executive performance and remuneration approach 3.1 Summary of approach 3.2 Alignment of remuneration and risk #### ANZ’s ambition and strategy 1 Is underpinned by our Performance and Remuneration Policies which include our Reward Principles: Aract, motivate and keep great people Reward our people for doing the right thing having regard to our customers and shareholders Focus on how things are achieved as much as what is achieved Fair and simple to understand With remuneration delivered to our CEO and Disclosed Executives through: Fixed remuneration (FR) Performance linked variable remuneration Short Term Variable Remuneration (STVR) Long Term Variable Remuneration (LTVR) Linked to shareholder interests through: • Substantial shareholding requirements, see Section 8.3 – around 80% of variable remuneration at maximum opportunity is deferred into ANZ equity and 75% for the CRO to ensure alignment with shareholder interests and to ensure focus on long-term value creation • Significant variable remuneration deferral up to 5 and 6 years in ANZ equity • Significant weighting to the LTVR component, i.e. around 60% of variable remuneration, which includes Relative and Absolute Total Shareholder Return (TSR) hurdles • Consideration of the shareholder experience in respect of the share price and dividend in determining individual outcomes 1. See the ‘Our ambition and strategy’ section of the Annual Report. #### 3.1 Summary of approach The following overview highlights how the executive performance and remuneration framework supports ANZ’s ambition and strategy and is aligned to shareholder interests. 2.2.3 Conflicts of interest To help mitigate potential conflicts of interest: • management are not in aendance when their own performance or remuneration is being discussed by the People & Culture Commiee or Board; • the CRO’s remuneration arrangements dier to other Disclosed Executives to preserve the independence of the role; • the Enterprise Accountability Group (EAG) also has processes in place to help mitigate conflicts of interest as outlined in section 7; and • the People & Culture Commiee seeks input from a number of sources to inform their consideration of performance and remuneration outcomes for the CEO and Disclosed Executives including: – independent reports from Risk, Finance, Talent and Culture, and Internal Audit; – material risk, conduct and audit event data provided by the CRO; and – input from both the Audit Commiee and the Risk Commiee of the Board. 2.2.4 External advisors provided information but not recommendations The People & Culture Commiee canengage independent external advisors as needed. Throughout the year, the People & CultureCommiee and management received information from the following external advisors: Ashurst, Deloie, EY,PayIQ Executive Pay and PricewaterhouseCoopers. This information related to market data, marketpractices, analysis and modelling,legislative requirements andthe interpretation of governance andregulatory requirements. During the year, ANZ did not receive any remuneration recommendations from external advisors about the remuneration of KMP. ANZ employs in-house remuneration professionals who provide recommendations to the People & Culture Commiee and the Board. The Board made its decisions independently, using the information provided and with careful regard to ANZ’s key strategic priorities, ambition and values, risk appetite, and theANZ Group Performance and Remuneration Framework, ANZ’s Board level Performance and Remuneration Policies and ANZ’s Reward Principles 56 Australia and New Zealand Banking Group Limited 2025 Annual Report #### 4.1 Five-year ANZ financial performance summary When determining variable remuneration outcomes for the CEO, Disclosed Executives and employees, a range of dierent financial indicators are considered. The Group uses cash profit as a measure of performance for the Group’s ongoing business activities, as this provides a basis to assess Group and Divisional performance against earlier periods and against peer institutions. The adjustments made in arriving at cash profit are included in statutory profit which is subject to audit. Although cash profit is not audited, the external auditor has informed the Audit Commiee that, with the exception of the new cash profit adjustment in 2025 in respect of the amortisation of acquired intangible assets recognised in 2025 as part of the Suncorp Bank acquisition, the cash profit adjustments have been determined on a consistent basis across each period presented. 2025 statutory profit is down 10% compared to the prior financial year, while cash profit is down 14%, with both measures impacted by significant items during the year. During 2024 the Group commenced a $2 billion share buy-back to return surplus capital to its shareholders, which up to 30 September 2025 has resulted in the Group returning $1,175m of capital to shareholders via the acquisition of 39.5 million shares on the market. As announced on 13 October 2025, the remaining share-buy back has now been ceased. 4. Five-year performance 4.1 Five-year ANZ financial performance summary 4.2 Historical performance and remuneration outcomes #### 3.2 Alignment of remuneration and risk Alignment of remuneration and risk Variable remuneration for the CEO and Disclosed Executives is aligned to risk management through: Assessing behaviours based on ANZ’s values and risk/compliance standards including the FAR Determining variable remuneration outcomes with risk as a modifier – impacting outcomes at both a Group Scorecard and individual level Weighting the measurement of remuneration outcomes toward the longer-term with a significant proportion at risk Emphasising risk in the determination and vesting of LTVR restricted rights (Section 5.4.2) Reinforcing the importance of risk culture in driving sustainable long-term performance in the LTVR design Providing material weight to non-financial metrics, particularly risk, in line with APRA requirements Ensuring risk measures are considered over a long-time horizon of up to 5 and 6 years Determining accountability 1 andapplying consequences where appropriate Strengthening risk consequences with clawback (Section 5.5) Prohibiting the hedging of unvested equity Variable remuneration can be adjusted downwards, including to zero, allowing the Board to hold executives accountable, individually or collectively, for the longer-term impacts of their decisions and actions. 1. The term ‘accountability’ is used in the broader sense – i.e. taken to mean that the CEO/Disclosed Executives are ultimately responsible for the effective management of risk and the performance of the bank, and therefore should bear appropriate consequences for the impacts of the matters. As used in this report, the term should not be taken to mean accountability under FAR, unless otherwise stated. Where referring to FAR accountability, the term ‘Accountability’ will be capitalised. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 37 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() ANZ’s financial performance 1 , including cash profit 2 , over the last five years. 2021 2022 2023 2024 2025 Statutory profit aributable to ordinary shareholders ($m) 6,162 7,119 7,106 6,535 5,891 Cash profit ($m, unaudited) 6,181 6,496 7,41 3 6,725 5,787 Cash profit - continuing operations ($m, unaudited) 6,198 6,515 7,413 6,725 5,787 Cash profit before provisions and tax - continuing operations ($m, unaudited) 8,396 8,968 10,766 10,068 9,019 Return on equity - cash (%) - continuing operations (unaudited) 9.9 10.4 11.0 9.7 8.1 Basic earnings per share - cash - continuing operations (cents,unaudited) 216.5 228.8 247. 3 224.3 194.7 1. The Group completed the divestment of its Aligned Dealer Group business, its Onepath Pensions and Investment business, and life insurance business across the 2020 and 2019 financial years. The financial results of these divested businesses were treated as discontinued operations in 2022 and 2021. The Group ceased reporting discontinued and continuing operations from completion in 2022. On 1 October 2023, the Group adopted AASB 17 Insurance Contracts (AASB 17), applied AASB 17 effective 1 October 2022 and restated prior period comparative information. 2. Cash profit excludes non-core items included in statutory profit. The net after tax gain adjusted from statutory profit to arrive at cash profit was $104m for 2025, made up of several items. It is provided to assist readers understand the results of the core business activities of the Group. #### 4.2 Historical performance and remuneration outcomes The table below shows the link between financial performance and variable remuneration outcomes 1 over the past five years, noting that risk and other factors have also impacted outcomes. 2021 2022 2023 2024 2025 Current CEO STVR outcome (% of maximum opportunity) - - - - 0% Former CEO STVR 2 outcome (% of maximum opportunity) 53% 74% 96% 52% 0% Disclosed Executive STVR 3 outcome (average % of maximum opportunity 4 ) 60% 78% 89% 60% 10% Disclosed Executive STVR 3 outcome (range % of maximum opportunity 4 ) 46% - 66% 71% - 96% 80% - 100% 40% - 71% 0% - 64% LTVR/VR PR vesting outcome (% vested) 43.3% 51.6% n/a 0% 25% Share price 5 at 30 September ($) 28.15 22.8 25.66 30.48 33.21 Total dividend (cents per share) 142 146 175 166 166 Total shareholder return (12 month %) 70.7 -14 20 27 15.1 1. In prior year Remuneration Reports, STVR outcome was provided as a % of target. 2. Previously referred to as AVR pre-2022 for the former CEO. 3. Previously referred to as VR pre-2022 for Disclosed Executives. 4. Pre 2022, % of maximum opportunity applied to the full VR due to the combined VR structure for Disclosed Executives in those years. 5. On 1 October 2020, opening share price was $17.21. 38 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() ANZ’s financial performance 1 , including cash profit 2 , over the last five years. 2021 2022 2023 2024 2025 Statutory profit aributable to ordinary shareholders ($m) 6,162 7,119 7,106 6,535 5,891 Cash profit ($m, unaudited) 6,181 6,496 7,41 3 6,725 5,787 Cash profit - continuing operations ($m, unaudited) 6,198 6,515 7,413 6,725 5,787 Cash profit before provisions and tax - continuing operations ($m, unaudited) 8,396 8,968 10,766 10,068 9,019 Return on equity - cash (%) - continuing operations (unaudited) 9.9 10.4 11.0 9.7 8.1 Basic earnings per share - cash - continuing operations (cents,unaudited) 216.5 228.8 247. 3 224.3 194.7 1. The Group completed the divestment of its Aligned Dealer Group business, its Onepath Pensions and Investment business, and life insurance business across the 2020 and 2019 financial years. The financial results of these divested businesses were treated as discontinued operations in 2022 and 2021. The Group ceased reporting discontinued and continuing operations from completion in 2022. On 1 October 2023, the Group adopted AASB 17 Insurance Contracts (AASB 17), applied AASB 17 effective 1 October 2022 and restated prior period comparative information. 2. Cash profit excludes non-core items included in statutory profit. The net after tax gain adjusted from statutory profit to arrive at cash profit was $104m for 2025, made up of several items. It is provided to assist readers understand the results of the core business activities of the Group. #### 4.2 Historical performance and remuneration outcomes The table below shows the link between financial performance and variable remuneration outcomes 1 over the past five years, noting that risk and other factors have also impacted outcomes. 2021 2022 2023 2024 2025 Current CEO STVR outcome (% of maximum opportunity) - - - - 0% Former CEO STVR 2 outcome (% of maximum opportunity) 53% 74% 96% 52% 0% Disclosed Executive STVR 3 outcome (average % of maximum opportunity 4 ) 60% 78% 89% 60% 10% Disclosed Executive STVR 3 outcome (range % of maximum opportunity 4 ) 46% - 66% 71% - 96% 80% - 100% 40% - 71% 0% - 64% LTVR/VR PR vesting outcome (% vested) 43.3% 51.6% n/a 0% 25% Share price 5 at 30 September ($) 28.15 22.8 25.66 30.48 33.21 Total dividend (cents per share) 142 146 175 166 166 Total shareholder return (12 month %) 70.7 -14 20 27 15.1 1. In prior year Remuneration Reports, STVR outcome was provided as a % of target. 2. Previously referred to as AVR pre-2022 for the former CEO. 3. Previously referred to as VR pre-2022 for Disclosed Executives. 4. Pre 2022, % of maximum opportunity applied to the full VR due to the combined VR structure for Disclosed Executives in those years. 5. On 1 October 2020, opening share price was $17.21. 58 Australia and New Zealand Banking Group Limited 2025 Annual Report #### 5.1 Remuneration structure There are two core components of remuneration at ANZ – fixed remuneration and at risk variable remuneration. In structuring remuneration, the Board aims to find the right balance between fixed and variable remuneration (at risk), the way it is delivered (cash versus deferred remuneration) and appropriate deferral time frames (the short, medium and long-term). The Board sets and reviews annually the CEO and Disclosed Executives’ FR based on financial services market relativities and reflecting each executive’s responsibilities, performance, qualifications and experience. FR is delivered as cash and superannuation contributions. The CEO and Disclosed Executives’ variable remuneration is comprised of STVR and LTVR, consistent with external market practice. Information relating to variable remuneration delivery is detailed in sections 5.3 and 5.4. #### 5.2 Remuneration mix The CEO and Disclosed Executives 1 have an aligned remuneration mix of 30% FR, 30% STVR and 40% LTVR at maximum/full opportunity, and structure, with the exception of longer deferral for the CEO in line with APRA’s deferral 2 requirements. CEO Remuneration mix – CEO ($m) 2.500 2.500 +1.200 +1.300 + 1.688 +1.688 2.500 Minimum opportunity 8.375 (44% cash, 56% equity) Maximum/full opportunity 30% 30% 40% LTVR RRLTVR PRSTVR deferred sharesSTVR cashFR Disclosed Executives The dollar amounts in the below example are for illustrative purposes only, and are based on the FR value of $1.25m. Remuneration mix – Disclosed Executives 1 ($m) 1.250 Minimum opportunity 4.188 (45% cash, 55% equity) Maximum/full opportunity 1.250 1.250 +0.625 +0.625 +0.844 +0.844 30% 30% 40% LTVR RRLTVR PRSTVR deferred sharesSTVR cashFR 1. Excluding CRO and acting Group Executive roles. 2. At target performance, 63% of variable remuneration for the CEO and Disclosed Executives, and 56% of variable remuneration for the CRO is deferred for at least four years from the date the Board approved the variable remuneration in October, and the date shareholders approve the CEO’s LTVR, noting that this complies with the FAR minimum deferral requirement of 60% for the CEO and 40% for Disclosed Executives. 5. Executive performance and remuneration framework 5.1 Remuneration structure 5.2 Remuneration mix 5.3 STVR remuneration detail 5.4 LTVR remuneration detail 5.5 Board discretion Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 39 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Chief Risk Ocer To preserve the independence of the role and to minimise any conflicts of interest in carrying out the risk control function across the organisation, the CRO’s remuneration arrangements dier to other Disclosed Executives. While the STVR opportunity of 100% of FR is the same as the CEO and Disclosed Executives, the LTVR opportunity is dierent, i.e. 100% of FR instead of 135% of FR, reflecting the delivery of LTVR as 100% restricted rights instead of 50% performance rights and 50% restricted rights. Maximum variable remuneration opportunity is 200% of FR for the CRO. The CRO’s remuneration mix at maximum opportunity is 33.3% FR/33.3% STVR/33.3% LTVR. Acting Group Executive, Australia Retail and CEO Suncorp Bank Due to the acting nature of B Rush’s appointment, and that his role is classified as a FAR Accountable Person for Suncorp Bank, his remuneration arrangements dier to other Disclosed Executives. For the time spent in this acting role, his FR is set at $1.15 million per annum from 2 July 2025. His STVR maximum opportunity is set at 125% of FR and LTVR at 100% of FR at full opportunity. His remuneration mix at maximum opportunity is therefore 31% FR/38% STVR/31% LTVR. To ensure compliance with FAR and CPS 511 deferral requirements, his STVR will be delivered as 50% cash and 50% shares deferred over years 2 to 3, with his LTVR delivered as 100% restricted rights deferred over years 4 and 5. Acting Group Executive, Technology & Group Services Due to the acting nature of M Bullock’s appointment, his remuneration arrangements dier to other Disclosed Executives. For the time spent in this acting role, his FR is set at $1 million per annum from 5 August 2025. His Variable Remuneration (VR) maximum opportunity is set at 210% of FR at full opportunity. His remuneration mix at maximum opportunity is therefore 32% FR/68% VR. To ensure compliance with FAR and CPS 511 deferral requirements, his VR will be delivered as 60% cash and 40% shares deferred over years 4 and 5. #### 5.3 STVR remuneration detail In 2024, the People & Culture Commiee recommended and the Board approved, changes to the ANZ Group Scorecard and performance approach for financial year 2025 onward. The intention was to provide a greater focus on fewer, more meaningful objectives that would drive sustainable long-term performance, and to provide a more transparent link between performance and remuneration outcomes. This approach is also consistent with shareholder feedback. Key changes arising from this review included: • reduction in the number of objectives and indicators; • provision of weighting for each objective rather than at the category level only; • introduction of threshold/target/stretch targets for each indicator; • increase in the performance assessment weighting for Group performance for frontline Disclosed Executives, from 25% to 40%, torecognise the increase in Group-wide priorities, excluding the Group Executive and CEO, New Zealand; and • increase in the weighting of financial measures from 40% to 50% in the Group and Divisional Scorecards. Key features of the STVR are detailed in the table below: STVR element Detail Objective To align with the achievement of stretching performance objectives that support our business strategy and drive long-term sustainable outcomes for shareholders, with material weight provided to non- financial measures in accordance with Prudential Standard CPS 511 Remuneration. Maximum opportunity 100% of FR. Eligibility CEO and Disclosed Executives. Link to performance Based on Group and individual performance. ANZ Group Scorecard At the start of each year, the ANZ Group Scorecard is agreed upon by the Board and is designed to be stretching. For the CEO, STVR is assessed on ‘What’ assessment (ANZ Group Scorecard) x ‘How’ Modifier. Divisional Scorecards At the start of each year, stretching performance objectives are set for Disclosed Executives through Divisional Scorecards, aligned with the ANZ Group Scorecard. For Disclosed Executives, STVR is assessed on ‘What’ assessment (ANZ Group Scorecard and Divisional Scorecards) x ‘How’ Modifier. The weighting to Divisional Scorecards varies from 50% to 75% for Disclosed Executives. Scorecard weightings The ANZ Group Scorecard weighting for Disclosed Executives varies based on role focus. To reinforce the importance of collective accountability and contribution to Group outcomes, for 2025 the Group weightings increased from 25% to 40% for frontline Disclosed Executives (excluding Group Executive & CEO, New Zealand). The CRO retained a 25% weighting to reinforce independence of the role: • 50% weighting for enablement Disclosed Executives: CFO, Group Executive Strategy & Transformation, GE T&C, and Group Executive Technology & Group Services; • 40% weighting for frontline Disclosed Executives: Group Executive Australia Retail, Group Executive Australia Commercial, and Group Executive Institutional; • 25% weighting for CRO, and Group Executive & CEO New Zealand. 40 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Chief Risk Ocer To preserve the independence of the role and to minimise any conflicts of interest in carrying out the risk control function across the organisation, the CRO’s remuneration arrangements dier to other Disclosed Executives. While the STVR opportunity of 100% of FR is the same as the CEO and Disclosed Executives, the LTVR opportunity is dierent, i.e. 100% of FR instead of 135% of FR, reflecting the delivery of LTVR as 100% restricted rights instead of 50% performance rights and 50% restricted rights. Maximum variable remuneration opportunity is 200% of FR for the CRO. The CRO’s remuneration mix at maximum opportunity is 33.3% FR/33.3% STVR/33.3% LTVR. Acting Group Executive, Australia Retail and CEO Suncorp Bank Due to the acting nature of B Rush’s appointment, and that his role is classified as a FAR Accountable Person for Suncorp Bank, his remuneration arrangements dier to other Disclosed Executives. For the time spent in this acting role, his FR is set at $1.15 million per annum from 2 July 2025. His STVR maximum opportunity is set at 125% of FR and LTVR at 100% of FR at full opportunity. His remuneration mix at maximum opportunity is therefore 31% FR/38% STVR/31% LTVR. To ensure compliance with FAR and CPS 511 deferral requirements, his STVR will be delivered as 50% cash and 50% shares deferred over years 2 to 3, with his LTVR delivered as 100% restricted rights deferred over years 4 and 5. Acting Group Executive, Technology & Group Services Due to the acting nature of M Bullock’s appointment, his remuneration arrangements dier to other Disclosed Executives. For the time spent in this acting role, his FR is set at $1 million per annum from 5 August 2025. His Variable Remuneration (VR) maximum opportunity is set at 210% of FR at full opportunity. His remuneration mix at maximum opportunity is therefore 32% FR/68% VR. To ensure compliance with FAR and CPS 511 deferral requirements, his VR will be delivered as 60% cash and 40% shares deferred over years 4 and 5. #### 5.3 STVR remuneration detail In 2024, the People & Culture Commiee recommended and the Board approved, changes to the ANZ Group Scorecard and performance approach for financial year 2025 onward. The intention was to provide a greater focus on fewer, more meaningful objectives that would drive sustainable long-term performance, and to provide a more transparent link between performance and remuneration outcomes. This approach is also consistent with shareholder feedback. Key changes arising from this review included: • reduction in the number of objectives and indicators; • provision of weighting for each objective rather than at the category level only; • introduction of threshold/target/stretch targets for each indicator; • increase in the performance assessment weighting for Group performance for frontline Disclosed Executives, from 25% to 40%, torecognise the increase in Group-wide priorities, excluding the Group Executive and CEO, New Zealand; and • increase in the weighting of financial measures from 40% to 50% in the Group and Divisional Scorecards. Key features of the STVR are detailed in the table below: STVR element Detail Objective To align with the achievement of stretching performance objectives that support our business strategy and drive long-term sustainable outcomes for shareholders, with material weight provided to non- financial measures in accordance with Prudential Standard CPS 511 Remuneration. Maximum opportunity 100% of FR. Eligibility CEO and Disclosed Executives. Link to performance Based on Group and individual performance. ANZ Group Scorecard At the start of each year, the ANZ Group Scorecard is agreed upon by the Board and is designed to be stretching. For the CEO, STVR is assessed on ‘What’ assessment (ANZ Group Scorecard) x ‘How’ Modifier. Divisional Scorecards At the start of each year, stretching performance objectives are set for Disclosed Executives through Divisional Scorecards, aligned with the ANZ Group Scorecard. For Disclosed Executives, STVR is assessed on ‘What’ assessment (ANZ Group Scorecard and Divisional Scorecards) x ‘How’ Modifier. The weighting to Divisional Scorecards varies from 50% to 75% for Disclosed Executives. Scorecard weightings The ANZ Group Scorecard weighting for Disclosed Executives varies based on role focus. To reinforce the importance of collective accountability and contribution to Group outcomes, for 2025 the Group weightings increased from 25% to 40% for frontline Disclosed Executives (excluding Group Executive & CEO, New Zealand). The CRO retained a 25% weighting to reinforce independence of the role: • 50% weighting for enablement Disclosed Executives: CFO, Group Executive Strategy & Transformation, GE T&C, and Group Executive Technology & Group Services; • 40% weighting for frontline Disclosed Executives: Group Executive Australia Retail, Group Executive Australia Commercial, and Group Executive Institutional; • 25% weighting for CRO, and Group Executive & CEO New Zealand. 60 Australia and New Zealand Banking Group Limited 2025 Annual Report STVR element Detail Delivery vehicles and security issued 50% cash, 50% deferred shares (DS). The number of deferred shares to be granted is calculated based on the volume weighted average price (VWAP) of the shares traded on the ASX in the five trading days leading up to and including 1 October, i.e. in line with the beginning of the financial year. Allocations prior to the 2022 financial year were based on the VWAP in the five trading days leading up to and including the date of grant. In some cases, we may grant deferred share rights to executives instead of deferred shares. Each deferred share right entitles the holder to one ordinary share. Performance period One year. 2025 ANZ Group Scorecard performance measures and Risk Modifier Weight Objective Key Performance Indicator 1 35% Deliver strong financial outcomes; focused on high quality growth and returns Cash NPAT (v Plan) $m Cash ROE (Internal Expected Loss (IEL) basis v Plan) 2 15% Drive productivity; leverage AI, our geographic network and how we partner, to drive transformational change across the bank Productivity (based on FY24 baseline) 3 10% Deliver value from the Suncorp Bank acquisition; manage Suncorp Bank well, growing high value Suncorp customer deposits and deliver the benefits of integration as planned Suncorp Bank Funds under Management (Deposits) Integration cost net of synergies 4 10% Grow the number of active ANZ Plus customers and launch new products and features; by executing our roadmap, deepening engagement, and scaling the migration of existing customers Number of active ANZ Plus customers Percentage of ANZ Plus customers engaged with a Financial Wellbeing (FWB) feature Number of ANZ transact and save customers migrated to ANZ Plus 5 15% Improve core platform resilience: a) Deliver Key NFR Transformation Initiatives Complete the implementation of all 16 risk themes in I.AM Amplified Deliver a clear and well progressed plan for fully sustainably embedding the I.AM Amplified transformation Identify and map ANZ’s critical operations (as defined under CPS 230) with all dependencies, tolerance seings and Business continuity plans defined in Operational Resilience Management (ORM) ready to operate 5% b) Launch and progress the implementation of the Modern Banking Platform Core in NZ Successfully launch Term Deposits on Modern Banking Platform (MBP) to Personal customers in the live production environment 6 10% Strengthen our reputation; enhancing our employee value proposition and our social license to operate Improved Inclusion Index Deliver Environmental ESG targets as planned Key Consideration 1 Demonstrable progress and on track to achieve ‘Sound’ risk culture rating 2 Continue to enhance our approach to managing financial and non-financial risk management including critical data management 3 Continue to strengthen our reputation and confidence with the community and regulators Delivery 1 and deferral period Year 2 DS 25% Year 3 DS 25% Year 1 Cash 50% Downward adjustment including malus and clawback Subject to the Board’s ongoing discretion to apply in-year adjustments, malus and clawback – considered by the Board before any scheduled release of deferred remuneration. 1. If the CEO receives above target STVR, the amount above target will be delivered as 40% cash and 60% DS (20% year 4, 20% year 5, 20% year 6) to ensure compliance with the minimum deferral requirements with respect to FAR and APRA’s Prudential Standard CPS 511 Remuneration. FinancialRisk Strategic Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 41 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 5.3.1 Performance assessment of STVR The following provides a summary of the performance assessment approach for the CEO and Disclosed Executives in respect of assessment of performance against scorecards. • Compliance with the FAR is the gateway that requires the Accountable Person to meet their obligations in line with their Accountability Statement under the FAR. • The ‘What’ assessment comprises the outcome of the ANZ Group Scorecard and Divisional Scorecard. Each Scorecard is subject to a Risk Modifier 1 as detailed below. • The ‘How’ Modifier is used to adjust the ‘What’ assessment outcome. It considers a macro view of the individual’s approach to risk, demonstration of ANZ behaviours, and their contribution to building a successful ExCo team. See below for further detail on the performance assessment approach of STVR. 1. Note for the CRO, Risk is incorporated in the Scorecard rather than as a separate Modifier. FAR Compliance Gateway ‘How’ Modifier % Key Inputs: • Risk Standards Assessment • Behaviours ANZ Group Scorecard assessment % Weighting CEO: 100% CRO, GE NZ: 25% Frontline DEs: 40% Enablement DEs: 50% Divisional Scorecard assessment % Weighting CEO: n/a CRO, GE NZ: 75% Frontline DEs: 60% Enablement DEs: 50% ‘What’ assessment Overall Performance Assessment % Key Inputs: • Informs STVR outcome CEO performance The CEO’s STVR is assessed against the ANZ Group Scorecard, adjusted by the ‘How’ Modifier, which takes into consideration the CEO’s leadership of ANZ’s values and behaviours and ANZ’s risk and compliance standards. The weighting to financial performance for the CEO is around 50% in 2025 noting that the CEO’s STVR is not formulaic. At the end of the financial year, the People & Culture Commiee reviews and recommends to the Board for approval the CEO’s overall performance taking into consideration: i. Performance against the ANZ Group Scorecard ii. 'How' Modifier which includes: a. Risk Standards Assessment i. Control function reports from the CRO on risk management, CFO on financial performance, GE T&C on talent and culture maers and GGM IA on internal audit maers ii. Material risk, audit and conduct events that have either occurred or come to light during the year b. Behaviours iii. Input from the Chairman iv. Compliance with FAR obligations v. Input from both the Audit Commiee and the Risk Commiee of the Board Disclosed Executive performance At the end of the financial year, the People & Culture Commiee recommends to the Board for approval the performance of each Disclosed Executive 1 against: i. the ANZ Group Scorecard – 25% to 50% weighting ii. their Divisional Scorecard – 50% to 75% weighting iii. 'How' Modifier as detailed for the CEO iv. Compliance with FAR obligations v. Input from both the Audit Commiee and the Risk Commiee of the Board Similar to the ANZ Group Scorecard, the Divisional Scorecards include the key Scorecard categories of Financial and Strategic, with Risk acting as a Modifier. 2 The weighting of each element varies to reflect the responsibilities of each individual’s role. The Financial element weightings range from 25% to 50%. 1. Performance arrangements for the CRO are addressed additionally by the Risk Committee. Performance arrangements for the Group Executive & CEO New Zealand are determined and approved by the ANZ NZ HR Committee/ANZ NZ Board in consultation with and endorsed by the People & Culture Committee/Board, consistent with their respective regulatory obligations. 2. Except for the CRO who has a percentage weighting assigned to risk measures. 42 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 5.3.1 Performance assessment of STVR The following provides a summary of the performance assessment approach for the CEO and Disclosed Executives in respect of assessment of performance against scorecards. • Compliance with the FAR is the gateway that requires the Accountable Person to meet their obligations in line with their Accountability Statement under the FAR. • The ‘What’ assessment comprises the outcome of the ANZ Group Scorecard and Divisional Scorecard. Each Scorecard is subject to a Risk Modifier 1 as detailed below. • The ‘How’ Modifier is used to adjust the ‘What’ assessment outcome. It considers a macro view of the individual’s approach to risk, demonstration of ANZ behaviours, and their contribution to building a successful ExCo team. See below for further detail on the performance assessment approach of STVR. 1. Note for the CRO, Risk is incorporated in the Scorecard rather than as a separate Modifier. FAR Compliance Gateway ‘How’ Modifier % Key Inputs: • Risk Standards Assessment • Behaviours ANZ Group Scorecard assessment % Weighting CEO: 100% CRO, GE NZ: 25% Frontline DEs: 40% Enablement DEs: 50% Divisional Scorecard assessment % Weighting CEO: n/a CRO, GE NZ: 75% Frontline DEs: 60% Enablement DEs: 50% ‘What’ assessment Overall Performance Assessment % Key Inputs: • Informs STVR outcome CEO performance The CEO’s STVR is assessed against the ANZ Group Scorecard, adjusted by the ‘How’ Modifier, which takes into consideration the CEO’s leadership of ANZ’s values and behaviours and ANZ’s risk and compliance standards. The weighting to financial performance for the CEO is around 50% in 2025 noting that the CEO’s STVR is not formulaic. At the end of the financial year, the People & Culture Commiee reviews and recommends to the Board for approval the CEO’s overall performance taking into consideration: i. Performance against the ANZ Group Scorecard ii. 'How' Modifier which includes: a. Risk Standards Assessment i. Control function reports from the CRO on risk management, CFO on financial performance, GE T&C on talent and culture maers and GGM IA on internal audit maers ii. Material risk, audit and conduct events that have either occurred or come to light during the year b. Behaviours iii. Input from the Chairman iv. Compliance with FAR obligations v. Input from both the Audit Commiee and the Risk Commiee of the Board Disclosed Executive performance At the end of the financial year, the People & Culture Commiee recommends to the Board for approval the performance of each Disclosed Executive 1 against: i. the ANZ Group Scorecard – 25% to 50% weighting ii. their Divisional Scorecard – 50% to 75% weighting iii. 'How' Modifier as detailed for the CEO iv. Compliance with FAR obligations v. Input from both the Audit Commiee and the Risk Commiee of the Board Similar to the ANZ Group Scorecard, the Divisional Scorecards include the key Scorecard categories of Financial and Strategic, with Risk acting as a Modifier. 2 The weighting of each element varies to reflect the responsibilities of each individual’s role. The Financial element weightings range from 25% to 50%. 1. Performance arrangements for the CRO are addressed additionally by the Risk Committee. Performance arrangements for the Group Executive & CEO New Zealand are determined and approved by the ANZ NZ HR Committee/ANZ NZ Board in consultation with and endorsed by the People & Culture Committee/Board, consistent with their respective regulatory obligations. 2. Except for the CRO who has a percentage weighting assigned to risk measures. 62 Australia and New Zealand Banking Group Limited 2025 Annual Report #### 5.4 LTVR remuneration detail The LTVR has two components – LTVR performance rights and LTVR restricted rights. The weighting of LTVR at full opportunity is 50:50 for the CEO and Disclosed Executives with the exception of the CRO and Acting Group Executive, Australia Retail and CEO Suncorp Bank, whose allocations are 100% LTVR restricted rights. The Acting Group Executive, Technology & Group Services is not eligible to receive LTVR. Having a risk-based focus reflects the intent of APRA’s Prudential Standard CPS 511 Remuneration in ensuring remuneration arrangements appropriately incentivise individuals to prudently manage risks. The performance conditions are designed to ensure there is focus on both material risk events and building a strong risk culture over the longer term. The award of restricted rights ensures that LTVR provides material weight to non-financial measures (as required under CPS 511 Remuneration), as well as supporting long-term alignment with shareholders. The following tables detail features of the LTVR performance rights and LTVR restricted rights. This is the LTVR approach that applied to the 2025 LTVR award granted in November 2024. 5.4.1 LTVR performance rights (PR) – CEO and Disclosed Executives excluding the CRO 1 LTVR PR element Detail Objective To align with the achievement of stretching performance objectives that support our business strategy and drive long-term sustainable outcomes for shareholders, with material weight provided to non- financial measures in accordance with Prudential Standard CPS 511 Remuneration. Full opportunity CEO and Disclosed Executives (excluding the CRO 1 ) 67.5% of FR. Eligibility CEO and Disclosed Executives excluding the CRO. 1 Link to performance Relative and Absolute Total Shareholder Returns outcomes. Delivery vehicle and security issued Performance rights – each performance right is a right to acquire one ordinary ANZ share at nil cost subject to meeting of performance conditions. Performance period Four years from 1 October 2024 to 30 September 2028. Performance measures The performance rights are subject to two performance hurdles: • 75% weighting – Relative Total Shareholder Return (RTSR) measures ANZ’s share price movement, dividends paid, and any return on capital compared with the RTSR performance over the performance period of a comparator group of companies comprising select financial services companies as detailed below. • 25% weighting – Compound annual growth rate of Absolute Total Shareholder Return (ATSR) equalling or exceeding ANZ’s weighted average cost of capital (WACC). The ATSR hurdle is an internal hurdle focused on ANZ achieving or exceeding a threshold level of growth being the WACC over the performance period. Value is created for shareholders when the ATSR exceeds ANZ’s WACC. The Board will review and approve any changes to the WACC on a quarterly basis throughout the performance period, based on the output from the Capital Asset Pricing Model (CAPM) methodology, which takes into consideration the risk-free bond rate, the market risk premium and the beta – i.e. the volatility of ANZ’s historical share price relative to the market. Performance hurdles RTSR If ANZ’s TSR when compared to the TSR of the constituents of the comparator group: The percentage of performance rights which will vest is: Does not reach the 50 th percentile 0% Reaches or exceeds the 50 th percentile 50%, plus 2% for every one percentile increase above the 50 th percentile up to the 75 th percentile Reaches or exceeds the 75 th percentile 100% ATSR If the ATSR of ANZ: The percentage of performance rights which will vest is: Does not reach the threshold 2 0% Reaches the threshold 50% Exceeds the threshold but does not reach 150% of threshold Progressive pro-rata vesting between 50% and 100%, on a straight line basis Reaches or exceeds 150% of threshold 100% 1. Also excluding acting Group Executives. 2. Based on the WACC at the start of the performance period, the ATSR threshold was 9.75% and the full vesting level was based on an ATSR of 14.63%; this may be subject to change based on the WACC over the performance period unless the Board exercises discretion to set it otherwise. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 43 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Holding period The holding period commences the day aer the end of the four-year performance period, and finishes on the 4 th , 5 th or 6 th anniversary of grants. Deferral period The deferral period is the sum of the four-year performance period and the applicable holding period. ~2 yr HP ~1 yr HP 4-year Performance Period Deferral period = 4-year Performance Period + Holding Period (HP) Year 4 CEO: 33% / DE: 50% Year 5 CEO: 33% / DE: 50% Year 6 CEO 34% Exercise period Performance rights can only be exercised at the end of the relevant deferral period when the rights vest and become exercisable. There is a two-year exercise period which commences at the end of the relevant deferral period. Downward adjustment including malus and clawback Subject to the Board’s ongoing discretion to apply malus and clawback – considered by the Board before any scheduled release of deferred remuneration. Comparator companies When considering an appropriate cohort of peers for benchmarking RTSR performance, the Board take into consideration organisations with a similar scope of activities, common geographical focus, broadly comparable risk compliance and regulatory profiles, and relative stability and transparency across market cycles. The Select Financial Services (SFS) comparator group 3 is made up of: Bank of Queensland Limited; Bendigo and Adelaide Bank Limited; Commonwealth Bank of Australia Limited; Macquarie Group Limited; National Australia Bank Limited; Standard Chartered PLC; and Westpac Banking Corporation. Dividends A dividend equivalent payment is made in respect of performance rights that vest. These are accrued from the beginning of the holding period to the end of the relevant deferral period. For example, performance rights with a five-year deferral period will have dividends accrued for approximately a one-year period. Grant value and calculation of number ofrights The number of performance rights before any consideration of the pre grant assessment outcome is calculated as follows: CEO and Disclosed Executives (excluding the CRO and acting Group Executives): FR x 67.5% / five-day VWAP 4 = estimated number of performance rights granted Satisfying vesting On vesting, the Board may determine to sele the relevant LTVR performance rights with a cash equivalent payment, rather than with shares. 3. As previously disclosed in the 2024 Remuneration Report, in July 2023 the Board approved the removal of Suncorp Group Limited from the comparator group, post the Suncorp Bank acquisition. This change applied to both prior awards currently on foot and future LTVR awards of performance rights from financial year 2025. 4. The value the Board uses to determine the number of performance rights to be allocated to the CEO and Disclosed Executives is the face value of ANZGHL shares traded on the ASX in the five trading days leading up to and including 1 October, i.e. the beginning of the financial year and the LTVR performance period. 5.4.2 LTVR restricted rights (RR) – CEO and Disclosed Executives 1 LTVR RR element Detail Objective To align with the achievement of stretching performance objectives that support our business strategy and drive long-term sustainable outcomes for shareholders, with material weight provided to non- financial measures in accordance with Prudential Standard CPS 511 Remuneration. Full opportunity CEO and Disclosed Executives 1 (excluding CRO and Acting Group Executive, Australia Retail and CEO Suncorp Bank) 67.5% of FR, CRO and Acting Group Executive, Australia Retail and CEO Suncorp Bank 100% of FR. Eligibility CEO and Disclosed Executives. 1 Link to performance Subject to both a pre grant and pre vest assessment based on risk-based measures. Delivery vehicle and security issued Restricted rights – each restricted right is a right to acquire one ordinary ANZ share at nil cost subject to meeting of applicable performance conditions. 1. Excluding Acting Group Executive, Technology & Group Services. 44 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Holding period The holding period commences the day aer the end of the four-year performance period, and finishes on the 4 th , 5 th or 6 th anniversary of grants. Deferral period The deferral period is the sum of the four-year performance period and the applicable holding period. ~2 yr HP ~1 yr HP 4-year Performance Period Deferral period = 4-year Performance Period + Holding Period (HP) Year 4 CEO: 33% / DE: 50% Year 5 CEO: 33% / DE: 50% Year 6 CEO 34% Exercise period Performance rights can only be exercised at the end of the relevant deferral period when the rights vest and become exercisable. There is a two-year exercise period which commences at the end of the relevant deferral period. Downward adjustment including malus and clawback Subject to the Board’s ongoing discretion to apply malus and clawback – considered by the Board before any scheduled release of deferred remuneration. Comparator companies When considering an appropriate cohort of peers for benchmarking RTSR performance, the Board take into consideration organisations with a similar scope of activities, common geographical focus, broadly comparable risk compliance and regulatory profiles, and relative stability and transparency across market cycles. The Select Financial Services (SFS) comparator group 3 is made up of: Bank of Queensland Limited; Bendigo and Adelaide Bank Limited; Commonwealth Bank of Australia Limited; Macquarie Group Limited; National Australia Bank Limited; Standard Chartered PLC; and Westpac Banking Corporation. Dividends A dividend equivalent payment is made in respect of performance rights that vest. These are accrued from the beginning of the holding period to the end of the relevant deferral period. For example, performance rights with a five-year deferral period will have dividends accrued for approximately a one-year period. Grant value and calculation of number ofrights The number of performance rights before any consideration of the pre grant assessment outcome is calculated as follows: CEO and Disclosed Executives (excluding the CRO and acting Group Executives): FR x 67.5% / five-day VWAP 4 = estimated number of performance rights granted Satisfying vesting On vesting, the Board may determine to sele the relevant LTVR performance rights with a cash equivalent payment, rather than with shares. 3. As previously disclosed in the 2024 Remuneration Report, in July 2023 the Board approved the removal of Suncorp Group Limited from the comparator group, post the Suncorp Bank acquisition. This change applied to both prior awards currently on foot and future LTVR awards of performance rights from financial year 2025. 4. The value the Board uses to determine the number of performance rights to be allocated to the CEO and Disclosed Executives is the face value of ANZGHL shares traded on the ASX in the five trading days leading up to and including 1 October, i.e. the beginning of the financial year and the LTVR performance period. 5.4.2 LTVR restricted rights (RR) – CEO and Disclosed Executives 1 LTVR RR element Detail Objective To align with the achievement of stretching performance objectives that support our business strategy and drive long-term sustainable outcomes for shareholders, with material weight provided to non- financial measures in accordance with Prudential Standard CPS 511 Remuneration. Full opportunity CEO and Disclosed Executives 1 (excluding CRO and Acting Group Executive, Australia Retail and CEO Suncorp Bank) 67.5% of FR, CRO and Acting Group Executive, Australia Retail and CEO Suncorp Bank 100% of FR. Eligibility CEO and Disclosed Executives. 1 Link to performance Subject to both a pre grant and pre vest assessment based on risk-based measures. Delivery vehicle and security issued Restricted rights – each restricted right is a right to acquire one ordinary ANZ share at nil cost subject to meeting of applicable performance conditions. 1. Excluding Acting Group Executive, Technology & Group Services. 64 Australia and New Zealand Banking Group Limited 2025 Annual Report Performance period Four years from 1 October 2024 to 30 September 2028. Pre grant assessment Determines whether any reduction should be made to LTVR restricted rights grant value. Based on whether ANZ has met in the prior financial year and plans to meet over the four-year performance period, the following prudential minimums: Step 1 Assess Prudential soundness Step 2 Assess risk measures Step 3 Apply Board discretion • Nil award if ANZ does not meet capital ratio and liquidity prudential minimums. • Consideration of any Material Risk Outcomes 2 fro m executive actions or inactions which are expected to/or have resulted in significant impacts. • Consideration of any significant adverse change in APRA’s Active Supervision level. • Consideration of Risk Culture (additional measure for pre vest) that examines whether or not ANZ has maintained (or made progress towards) a sound risk culture, considering both executive actions or inactions. • Board to determine whether any reduction should be made to LTVR restricted rights outcome based on consideration of a range of factors, including: – the outcomes from steps 1 and 2; – the impact, if any, of the issue/s on ANZ’s reputation/standing in the market; – whether the issue was specific to ANZ, the banking industry or the broader market; – any impacts already applied (e.g. regarding downward adjustment mechanisms, pre grant assessment impact to LTVR restricted rights); – whether any impact should be made on an individual or collective basis. The assessments are not intended to be formulaic given the circumstances requiring the application of Board discretion will typically be dierent or unique, however a Board decision making framework is in place to guide the Board in applying discretion. Pre vest assessment Determines whether the LTVR restricted rights amount granted should vest in full and is based on outcomes over the four-year performance period. The pre vest assessment also takes into consideration any adjustments already applied for the same event/outcomes in either the current or prior years, i.e. adjustments to STVR and LTVR, malus and clawback, to ensure the overall impact is fair and proportionate to the severity of the outcome. Step 1 Assess Prudential soundness Step 2 Assess risk measures Step 3 Apply Board discretion • Nil award if ANZ does not meet capital ratio and liquidity prudential minimums. • Consideration of any Material Risk Outcomes 2 fro m executive actions or inactions which are expected to/or have resulted in significant impacts. • Consideration of any significant adverse change in APRA’s Active Supervision level. • Consideration of Risk Culture (additional measure for pre vest) that examines whether or not ANZ has maintained (or made progress towards) a sound risk culture, considering both executive actions or inactions. • Board to determine whether any reduction should be made to LTVR restricted rights outcome based on consideration of a range of factors, including: – the outcomes from steps 1 and 2; – the impact, if any, of the issue/s on ANZ’s reputation/standing in the market; – whether the issue was specific to ANZ, the banking industry or the broader market; – any impacts already applied (e.g. regarding downward adjustment mechanisms, pre grant assessment impact to LTVR restricted rights); – whether any impact should be made on an individual or collective basis. 2. Considers all risk types including capital adequacy risk, liquidity and funding risk, credit risk, market risk, climate risk, non-financial risk and strategic risk. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 45 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Holding period The holding period commences the day aer the end of the four-year performance period, and finishes on the 4 th , 5 th or 6 th anniversary of grants. Deferral period The deferral period is the sum of the four-year performance period and the applicable holding period. ~2 yr HP ~1 yr HP 4-year Performance Period Deferral period = 4-year Performance Period + Holding Period (HP) Year 4 CEO: 33% / DE: 50% Year 5 CEO: 33% / DE: 50% Year 6 CEO 34% Exercise period Restricted rights can only be exercised at the end of the relevant deferral period when the rights vest and become exercisable. There is a two-year exercise period which commences at the end of the relevant deferral period. Downward adjustment including malus and clawback Subject to the Board’s ongoing discretion to apply malus and clawback – considered by the Board before any scheduled release of deferred remuneration. Dividends A dividend equivalent payment is made in respect of restricted rights that vest. These are accrued from the beginning of the deferral period to the end of the relevant deferral period. For example, restricted rights with a five-year deferral period will have dividends accrued for approximately a five-year period. Grant value and calculation of number of rights The number of restricted rights before any consideration of the outcome from the pre grant assessment is calculated as follows: CEO and Disclosed Executives (excluding CRO): FR x 67.5%/five-day VWAP 3 = estimated number of restricted rights granted CRO: FR x 100% five-day VWAP 3 = estimated number of restricted rights granted Material risk outcomes process The consideration of material risk outcomes is a key process that forms part of our broader Accountability and Consequence Framework (A&CF) (Section 7), and is a comprehensive boom-up process designed to ensure that all relevant events are surfaced and considered appropriately. Key steps include: • Risk, conduct and audit events are reported in ANZ’s Compliance & Operational Risk System. • Divisional Accountability Groups review serious risk, conduct and audit events, and provide recommendations regarding accountability and consequences, where appropriate. • Enterprise Accountability Group (EAG) reviews recommendations of the Divisional Accountability Groups and makes final determination (with some exceptions where local Board approval is required or for material risk takers and other non-administrative direct reports to the CEO, where Board approval is required). • People & Culture Commiee reviews the most serious risk, conduct and audit events as part of independent report from CRO, and determines impacts at the Group, Division and individual level for the CEO and ExCo. Satisfying vesting On vesting, the Board may determine to sele the relevant LTVR restricted rights with a cash equivalent payment, rather than with shares. 3. The value the Board uses to determine the number of restricted rights to be allocated to the CEO and Disclosed Executives is the face value of ANZGHL shares traded on the ASX in the five trading days leading up to and including 1 October (beginning of the financial year and LTVR performance period). 46 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Holding period The holding period commences the day aer the end of the four-year performance period, and finishes on the 4 th , 5 th or 6 th anniversary of grants. Deferral period The deferral period is the sum of the four-year performance period and the applicable holding period. ~2 yr HP ~1 yr HP 4-year Performance Period Deferral period = 4-year Performance Period + Holding Period (HP) Year 4 CEO: 33% / DE: 50% Year 5 CEO: 33% / DE: 50% Year 6 CEO 34% Exercise period Restricted rights can only be exercised at the end of the relevant deferral period when the rights vest and become exercisable. There is a two-year exercise period which commences at the end of the relevant deferral period. Downward adjustment including malus and clawback Subject to the Board’s ongoing discretion to apply malus and clawback – considered by the Board before any scheduled release of deferred remuneration. Dividends A dividend equivalent payment is made in respect of restricted rights that vest. These are accrued from the beginning of the deferral period to the end of the relevant deferral period. For example, restricted rights with a five-year deferral period will have dividends accrued for approximately a five-year period. Grant value and calculation of number of rights The number of restricted rights before any consideration of the outcome from the pre grant assessment is calculated as follows: CEO and Disclosed Executives (excluding CRO): FR x 67.5%/five-day VWAP 3 = estimated number of restricted rights granted CRO: FR x 100% five-day VWAP 3 = estimated number of restricted rights granted Material risk outcomes process The consideration of material risk outcomes is a key process that forms part of our broader Accountability and Consequence Framework (A&CF) (Section 7), and is a comprehensive boom-up process designed to ensure that all relevant events are surfaced and considered appropriately. Key steps include: • Risk, conduct and audit events are reported in ANZ’s Compliance & Operational Risk System. • Divisional Accountability Groups review serious risk, conduct and audit events, and provide recommendations regarding accountability and consequences, where appropriate. • Enterprise Accountability Group (EAG) reviews recommendations of the Divisional Accountability Groups and makes final determination (with some exceptions where local Board approval is required or for material risk takers and other non-administrative direct reports to the CEO, where Board approval is required). • People & Culture Commiee reviews the most serious risk, conduct and audit events as part of independent report from CRO, and determines impacts at the Group, Division and individual level for the CEO and ExCo. Satisfying vesting On vesting, the Board may determine to sele the relevant LTVR restricted rights with a cash equivalent payment, rather than with shares. 3. The value the Board uses to determine the number of restricted rights to be allocated to the CEO and Disclosed Executives is the face value of ANZGHL shares traded on the ASX in the five trading days leading up to and including 1 October (beginning of the financial year and LTVR performance period). 66 Australia and New Zealand Banking Group Limited 2025 Annual Report #### 5.5 Board discretion Variable remuneration is ‘at risk’ remuneration and can range from zero to maximum opportunity. At the end of the financial year, the Board 1 approves variable remuneration recommendations for the CEO and each Disclosed Executive following lengthy and detailed discussions and assessment, supported by comprehensive analysis of performance from a number of sources. Board discretion is applied when determining all CEO and Disclosed Executive variable remuneration outcomes including: • the outcomes of the ANZ Group and Divisional Scorecards; • STVR and LTVR outcomes for each financial year; • LTVR vesting outcomes (including pre vest assessment); and • downward adjustment of variable remuneration as part of consequence management, in accordance with applicable law and any terms and conditions provided (see below). Downward adjustment of variable remuneration The Board may choose to exercise the following options or a combination of these at any time, but will always consider their use, if any of the circumstances specified by Prudential Standard CPS 511 Remuneration occur. • In year adjustment is the primary adjustment mechanism under ANZ’s A&CF; further deferral/freezing, malus and/or clawback will be considered if not able to proportionally impact in year adjustment. • In year adjustment, further deferral/freezing and malus are applicable to all employees, while clawback is limited to select employees (primarily the CEO, Disclosed Executives and senior employees in jurisdictions where clawback regulations apply). 1. In year adjustment The most common type of downward adjustment, which reduces the amount of variable remuneration an employee may have otherwise been awarded for that year. 2. Further deferral/freezing Delays the decision to pay/ allocate variable remuneration, or further defers the vesting of deferred remuneration or freezes vested/unexercised shares and rights. This would typically only be considered where an investigation is pending/underway. 3. Malus Is an adjustment to reduce the value of all or part of deferred remuneration before it has vested. Malus is used in cases of more serious performance or behaviour issues. Any and all variable remuneration we award or grant to an employee is subject to ANZ’s on-going and absolute discretion to apply malus and adjust variable remuneration downward (including to zero) at any time before the relevant variable remuneration vests. 4. Clawback Is the recovery of variable remuneration that has already vested or been paid (up to two years from vesting/payment or a longer period as determined by Board discretion, policy or applicable law). This would typically only be considered if the other types of downward adjustment/other consequences are considered inadequate given the severity of the situation. Before any scheduled vesting of deferred remuneration, the Board (for the CEO, Disclosed Executives and other specified roles) and/ or the Enterprise Accountability Group (EAG) (for other employees) considers whether any further deferral, malus, or clawback should be applied (Section 7). 1. Remuneration arrangements for the Group Executive and CEO, New Zealand are determined and approved by the ANZ NZ Board in consultation with and endorsed by the Board, consistent with their respective regulatory obligations. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 47 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 6. Executive remuneration outcomes 6.1 Short term variable remuneration (STVR) 6.2 Long term variable remuneration (LTVR) 6.3 2025 Received remuneration 6.4 2025 Statutory remuneration – CEO and Disclosed Executives #### Remuneration outcomes have been presented in the following three ways: 01. Awarded remuneration – STVR and LTVR (Sections 6.1.2, 6.2.1 and 6.2.2) 02. Received remuneration (Sections 6.2.1, 6.3) 03. Statutory remuneration (Section 6.4) #### 6.1 Short term variable remuneration (STVR) 6.1.1 ANZ Group Scorecard – 2025 outcomes On the following pages we have outlined ANZ’s 2025 Group Scorecard and provided a summary of outcomes for each Scorecard objective to inform the overall assessment for 2025. Scorecard objectives represent the key focus of the scorecard and basis for assessing performance. Scorecard key performance indicators (KPIs) help inform the assessment of performance against the objective, along with additional quantitative and qualitative inputs as appropriate. Reflects actual cash and the deferred component of STVR awarded in the year. As non-cash components are subject to future vesting outcomes, the awarded value may be higher or lower than the future realised value. Reflects the actual remuneration received in the year, i.e. cash paid and the value of previously awarded STVR deferred shares and LTVR restricted rights/performance rights which vested in the year. Reflects remuneration in accordance with Australian Accounting Standards which includes FR and the amortised accounting value of equity based variable remuneration, not the actual awarded or received value in respect of the relevant financial year, i.e. includes the value of STVR and LTVR expensed in the year. This is dierent to remuneration received in 2025, which includes prior year awards which vested. 48 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 6. Executive remuneration outcomes 6.1 Short term variable remuneration (STVR) 6.2 Long term variable remuneration (LTVR) 6.3 2025 Received remuneration 6.4 2025 Statutory remuneration – CEO and Disclosed Executives #### Remuneration outcomes have been presented in the following three ways: 01. Awarded remuneration – STVR and LTVR (Sections 6.1.2, 6.2.1 and 6.2.2) 02. Received remuneration (Sections 6.2.1, 6.3) 03. Statutory remuneration (Section 6.4) #### 6.1 Short term variable remuneration (STVR) 6.1.1 ANZ Group Scorecard – 2025 outcomes On the following pages we have outlined ANZ’s 2025 Group Scorecard and provided a summary of outcomes for each Scorecard objective to inform the overall assessment for 2025. Scorecard objectives represent the key focus of the scorecard and basis for assessing performance. Scorecard key performance indicators (KPIs) help inform the assessment of performance against the objective, along with additional quantitative and qualitative inputs as appropriate. Reflects actual cash and the deferred component of STVR awarded in the year. As non-cash components are subject to future vesting outcomes, the awarded value may be higher or lower than the future realised value. Reflects the actual remuneration received in the year, i.e. cash paid and the value of previously awarded STVR deferred shares and LTVR restricted rights/performance rights which vested in the year. Reflects remuneration in accordance with Australian Accounting Standards which includes FR and the amortised accounting value of equity based variable remuneration, not the actual awarded or received value in respect of the relevant financial year, i.e. includes the value of STVR and LTVR expensed in the year. This is dierent to remuneration received in 2025, which includes prior year awards which vested. 68 Australia and New Zealand Banking Group Limited 2025 Annual Report 2025 ANZ Group Scorecard Key Performance Indicator (KPI) KPI result 75% 100% 125% Weight Objective Threshold Target Exceed 1 35% Deliver strong financial outcomes; focused on high quality growth and returns Cash NPAT (v Plan) $m $5,787 or $6,140 adjusted 1 Cash ROE (Internal Expected Loss (IEL) basis v Plan) 7.00% or 7.49% adjusted 1 2 15% Drive productivity; leverage AI, our geographic network and how we partner, to drive transformational change across the bank Productivity (based on FY24 baseline) $343m 3 10% Deliver value from the Suncorp Bank acquisition; manage Suncorp Bank well, growing high value Suncorp customer deposits and deliver the benefits of integration as planned Suncorp Bank Funds under Management (Deposits) $2.64bn Integration cost net of synergies $ 47.9 m 4 10% Grow the number of active ANZ Plus customers and launch new products and features; by executing our roadmap, deepening engagement, and scaling the migration of existing customers Number of active ANZ Plus customers 863K Percentage of ANZ Plus customers engaged with a Financial Wellbeing (FWB) feature 49.4% Number of ANZ transact and save customers migrated to ANZ Plus 0 (adjusted approach) 5 15% Improve core platform resilience: a) Deliver Key NFR Transformation Initiatives Complete the implementation of all 16 risk themes in I.AM Amplified All 16 risk themes now live Deliver a clear and well progressed plan for fully sustainably embedding the I.AM Amplified transformation Plan has been superseded by the APRA Enforceable Undertaking, and subsequent actions Identify and map ANZ’s critical operations (as defined under CPS 230) with all dependencies, tolerance seings and Business continuity plans defined in Operational Resilience Management (ORM) ready tooperate CPS 230 is live 5% b) Launch and progress the implementation of the Modern Banking Platform Core in NZ Successfully launch Term Deposits on Modern Banking Platform (MBP) to Personal customers in the live production environment Target delivered 6 10% Strengthen our reputation; enhancing our employee value proposition and our social license to operate Improved InclusionIndex 67. 3 % Deliver Environmental ESG targets 2 as planned 2 targets exceeded, 2 targets achieved ANZ Group Scorecard Assessment (pre-Risk Modifier) Below target 1. There were several material items impacting the evaluation of 2025 financial performance which were not factored into the original Plan approved by the Board, such as large scale restructuring and ASIC imposed penalties and customer remediation. The Board considered the various relevant items and determined an adjusted value for the Scorecard assessment related to the impairment of the Panin carrying value ($285m) and the accelerated recognition of future costs attributable to the accelerated Suncorp Bank migration timelines ($68m). 2. These are a subset of ANZ’s ESG targets, which are set out in the 2025 ESG Report. The basis of measurement used for assessing achievement of the ESG targets in the Remuneration Report may differ to that used in the ESG Report. FinancialStrategic 6,572 7,302 7,667 8.24% 9.16% 9.62% $76m 800K 38% 500K n/a 16 n/a n/a 19 n/a 69.9% All 4 ESG targets achieved n/a Plan Delivered n/a $2.044bn $343m Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 49 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Risk Modifier Key Consideration Outcomes The overarching Risk Modifier assessment is focused on risk discipline ensuring good customer and regulatory outcomes. As part of the Board’s determination of the Risk Modifier outcome, the following considerations have been taken into account. Taking into consideration the below and the various NFR Maers, a significant risk modifier was applied. 1 Demonstrable progress and on track to achieve ‘Sound’ risk culture rating Below standard 2 Continue to enhance our approach to managing financial and non-financial risk management including critical data management 3 Continue to strengthen our reputation and confidence with the community and regulators Risk Modifier Assessment Significant adjustment Overall ANZ Group Scorecard ‘What’ Assessment (post-Risk Modifier) 30% of Maximum Overall 2025 ANZ Group Scorecard ‘What’ Assessment 6.1.2 CEOs and DEs STVR – 2025 outcomes The STVR awarded tables show a year-on-year comparison of STVR awarded to the current and former CEOs, and current and former Disclosed Executives for the 2024 and 2025 performance periods. STVR awarded reflects actual cash and the deferred shares component of STVR awarded in respect of the relevant financial year. As non-cash components are subject to future vesting outcomes, the awarded value may be higher or lower than the future realised value. Current CEO While the current CEO N Matos is not accountable for the various NFR Maers due to his commencement in May 2025, the CEO proposed and the Board approved a zero STVR outcome for 2025 (0% of maximum opportunity). Former CEO The Board determined that an STVR outcome for S Ellio of zero (0% of maximum opportunity) was appropriate for 2025 having regard to the overall performance of the Group, and his accountability as the former CEO for the various NFR Maers. Whilst the table below shows the 2024 STVR awarded to S Ellio as previously disclosed in the 2024 Remuneration Report, the 2024 STVR deferred shares have subsequently been subject to the application of malus (see People & Culture Commiee Chair leer). Risk Overall Assessment The Group Scorecard accounts for 100% of the CEO’s STVR, 25% to 50% of Disclosed Executives’ STVR and is an input into the overall employee variable remuneration pool. In 2025, ANZ delivered mixed results across financial and strategic objectives covering customer, risk, people and reputation. Financial performance was below threshold, impacted by lower than planned revenue and higher expenses from remediation and restructuring activities, however this was partially oset by cost saving and productivity initiatives. The Suncorp Bank acquisition exceeded synergy targets, and Suncorp Bank continued to achieve strong financial and customer outcomes. Similarly, ANZ’s Institutional and NZ businesses continued to perform strongly. While ANZ Plus customer growth was strong, surpassing targets, migration to the new platform was deferred due to the planned change in migration approach from a product focus to a single ANZ Plus front end for the benefit of all customers. Positive progress was also made on ANZ’s ESG targets and the implementation of the modern banking platform core in NZ. However, shortcomings in ANZ’s NFR management and risk culture resulted in impacts to the customer experience, significant remediation costs, a penalty from ASIC, an additional $250m capital overlay, and ANZ entering a Court Enforceable Undertaking with APRA. As a result, ANZ’s reputation was impacted and the Board considered it appropriate to apply a significant adjustment to the overall assessment of performance via the Risk Modifier, with an overall 2025 performance outcome of 30% of maximum. The Board believes that this outcome appropriately reflects what was a challenging year for ANZ. Irrespective of the overall assessment, given the particular circumstances and challenges facing ANZ, no STVR was awarded this year to the current and former CEO and our Australian based executive leadership team. Importantly, the journey towards a stronger, more customer focused, simplified and resilient ANZ has commenced, with clear lessons learned and a renewed focus on sustainable growth and stakeholder confidence. 50 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Risk Modifier Key Consideration Outcomes The overarching Risk Modifier assessment is focused on risk discipline ensuring good customer and regulatory outcomes. As part of the Board’s determination of the Risk Modifier outcome, the following considerations have been taken into account. Taking into consideration the below and the various NFR Maers, a significant risk modifier was applied. 1 Demonstrable progress and on track to achieve ‘Sound’ risk culture rating Below standard 2 Continue to enhance our approach to managing financial and non-financial risk management including critical data management 3 Continue to strengthen our reputation and confidence with the community and regulators Risk Modifier Assessment Significant adjustment Overall ANZ Group Scorecard ‘What’ Assessment (post-Risk Modifier) 30% of Maximum Overall 2025 ANZ Group Scorecard ‘What’ Assessment 6.1.2 CEOs and DEs STVR – 2025 outcomes The STVR awarded tables show a year-on-year comparison of STVR awarded to the current and former CEOs, and current and former Disclosed Executives for the 2024 and 2025 performance periods. STVR awarded reflects actual cash and the deferred shares component of STVR awarded in respect of the relevant financial year. As non-cash components are subject to future vesting outcomes, the awarded value may be higher or lower than the future realised value. Current CEO While the current CEO N Matos is not accountable for the various NFR Maers due to his commencement in May 2025, the CEO proposed and the Board approved a zero STVR outcome for 2025 (0% of maximum opportunity). Former CEO The Board determined that an STVR outcome for S Ellio of zero (0% of maximum opportunity) was appropriate for 2025 having regard to the overall performance of the Group, and his accountability as the former CEO for the various NFR Maers. Whilst the table below shows the 2024 STVR awarded to S Ellio as previously disclosed in the 2024 Remuneration Report, the 2024 STVR deferred shares have subsequently been subject to the application of malus (see People & Culture Commiee Chair leer). Risk Overall Assessment The Group Scorecard accounts for 100% of the CEO’s STVR, 25% to 50% of Disclosed Executives’ STVR and is an input into the overall employee variable remuneration pool. In 2025, ANZ delivered mixed results across financial and strategic objectives covering customer, risk, people and reputation. Financial performance was below threshold, impacted by lower than planned revenue and higher expenses from remediation and restructuring activities, however this was partially oset by cost saving and productivity initiatives. The Suncorp Bank acquisition exceeded synergy targets, and Suncorp Bank continued to achieve strong financial and customer outcomes. Similarly, ANZ’s Institutional and NZ businesses continued to perform strongly. While ANZ Plus customer growth was strong, surpassing targets, migration to the new platform was deferred due to the planned change in migration approach from a product focus to a single ANZ Plus front end for the benefit of all customers. Positive progress was also made on ANZ’s ESG targets and the implementation of the modern banking platform core in NZ. However, shortcomings in ANZ’s NFR management and risk culture resulted in impacts to the customer experience, significant remediation costs, a penalty from ASIC, an additional $250m capital overlay, and ANZ entering a Court Enforceable Undertaking with APRA. As a result, ANZ’s reputation was impacted and the Board considered it appropriate to apply a significant adjustment to the overall assessment of performance via the Risk Modifier, with an overall 2025 performance outcome of 30% of maximum. The Board believes that this outcome appropriately reflects what was a challenging year for ANZ. Irrespective of the overall assessment, given the particular circumstances and challenges facing ANZ, no STVR was awarded this year to the current and former CEO and our Australian based executive leadership team. Importantly, the journey towards a stronger, more customer focused, simplified and resilient ANZ has commenced, with clear lessons learned and a renewed focus on sustainable growth and stakeholder confidence. 70 Australia and New Zealand Banking Group Limited 2025 Annual Report Awarded STVR in the relevant financial year – CEOs Actual STVR STVR as % of Financial year STVR maximum opportunity $ Total STVR $ STVR cash $ STVR deferred shares $ Maximum opportunity Current CEO N Matos 1 2025 975,000 - - - 0% Former CEO S Ellio 1 2025 1,525,000 - - - 0% 2024 2,500,000 1,300,000 650,000 650,000 52% 1. 2025 STVR based on time as a CEO (N Matos, S Elliott). Disclosed Executives STVR outcomes for Disclosed Executives continue to dier year-on-year demonstrating the variability in performance year-on-year and the at risk nature of this element of remuneration (i.e. it is not guaranteed and may be adjusted up or down ranging from zero to a maximum opportunity). Most Disclosed Executives received a 2025 STVR outcome of zero as a result of the various NFR Maers, with the exception of the following three individuals: • the Group Executive and CEO, New Zealand whose remuneration outcomes are determined and approved by the ANZ NZ Board in consultation with and endorsed by the Board in accordance with respective regulatory obligations; and • the two acting Disclosed Executives as the individuals are in role on an acting basis. 2025 STVR outcomes for Disclosed Executives ranged from 0% to 64% of maximum opportunity. To ensure an overall fair and proportionate consequence for the various NFR Maers, downward Board discretion was also applied to LTVR restricted rights for select individuals as a result of the 2026 risk based pre grant assessments. Similarly, malus was applied to the calendar year 2025 and 2026 vestings of previously deferred remuneration for select executives (see section 10.1.1). Awarded STVR in the relevant financial year – Disclosed Executives Actual STVR STVR as % of Financial year STVR maximum opportunity $ Total STVR $ STVR cash $ STVR deferred shares $ Maximum opportunity Current Disclosed Executives M Bullock 1 2025 336,000 155,000 93,000 62,000 46% E Clements 1 2025 850,000 - - - 0% 2024 784,000 470,400 235,200 235,200 60% K Corbally 2025 1,300,000 - - - 0% 2024 1,300,000 624,000 312,000 312,000 48% F Faruqui 2025 1,275,000 - - - 0% 2024 1,275,000 885,000 442,500 442,500 69% C Morgan 2025 1,150,000 - - - 0% 2024 1,135,000 650,000 325,000 325,000 57% B Rush 1 2025 359,375 228,519 114,260 114,260 64% A Watson 2 2025 1,115,606 692,131 346,066 346,066 62% 2024 1,129,635 797,660 398,830 398,830 71% M Whelan 2025 1,500,000 - - - 0% 2024 1,500,000 595,000 297,500 297,500 40% 1. STVR based on time as a Disclosed Executive in 2024 (E Clements), 2025 (M Bullock, B Rush, M Carnegie, G Florian, A Strong). 2. Paid in NZD and converted to AUD. Year to date average exchange rate used to convert NZD to AUD as at 30 September for the relevant year. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 51 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Actual STVR STVR as % of Financial year STVR maximum opportunity $ Total STVR $ STVR cash $ STVR deferred shares $ Maximum opportunity Former Disclosed Executives M Carnegie 1 2025 975,000 - - - 0% 2024 1,300,000 865,000 432,500 432,500 67% G Florian 1 2025 1,060,500 - - - 0% 2024 1,262,500 865,000 432,500 432,500 69% A Strong 1 2025 675,000 - - - 0% 2024 850,000 580,000 290,000 290,000 68% 1. STVR based on time as a Disclosed Executive in 2024 (E Clements), 2025 (M Bullock, B Rush, M Carnegie, G Florian, A Strong). #### 6.2 Long term variable remuneration (LTVR) The LTVR rewards for the achievement of longer term strategic objectives, drives outperformance relative to peers, and creates long-term sustained value for all stakeholders. 6.2.1 CEOs and DEs LTVR – 2025 outcomes 2025 Received LTVR 2020 performance rights granted to the former CEO and Disclosed Executives (excluding the CRO) in December 2020, reached the end of their performance period in November 2024. Based on performance against hurdles, 25% of the performance rights vested. The remaining 75% of rights lapsed and executives received no value from this proportion of the awards. Performance rights vesting outcomes Over four years Hurdle Grant date 1 First date exercisable 1 ANZ TSR/ CAGR 2 TSR Median TSR/ CAGR 2 TSR threshold target Upper quartile TSR/CAGR 2 TSR maximum target % vested Overall performance rights outcome 75% relative TSR Select Financial Services (SFS) comparator group 07-Dec-20 22-Nov-24 103.31% 124.57% 133.45% 0% 25% vested and 75% lapsed 25% absolute CAGR 2 TSR 07-Dec-20 22-Nov-24 19.42% 8.5% 12.75% 100% 1. Grant date for the former CEO was 16 December 2020, and date first exercisable was 16 December 2024. The former CEO’s performance period was the same as the performance period for Disclosed Executives. 2. Compound Annual Growth Rate (CAGR). 2025 Awarded LTVR and pre grant assessment outcome This section relates to 2025 LTVR awards allocated in November 2024 as part of the 2024 review process, whereas the next section (6.2.2) relates to 2026 LTVR awards to be allocated in November/December 2025 as part of the 2025 review process. As disclosed in the 2024 Remuneration Report and informed by information available at that time, the Board determined in October 2024 that the 2025 LTVR restricted rights (50% of full LTVR opportunity), should be awarded at 90% of full opportunity to current Disclosed Executives (November 2024) and the former CEO (December 2024 post 2024 AGM) due to risk considerations. This adjustment formed part of a holistic assessment (i.e. including consideration of risk adjustments impacting STVR), to ensure a proportionate collective impact for the NFR maers contributing to the additional capital overlay. This resulted in a total 2025 LTVR award (awarded at the start of the 2025 financial year) at 95% of full opportunity (90% of full opportunity for the CRO, whose LTVR is delivered wholly in restricted rights). 52 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Actual STVR STVR as % of Financial year STVR maximum opportunity $ Total STVR $ STVR cash $ STVR deferred shares $ Maximum opportunity Former Disclosed Executives M Carnegie 1 2025 975,000 - - - 0% 2024 1,300,000 865,000 432,500 432,500 67% G Florian 1 2025 1,060,500 - - - 0% 2024 1,262,500 865,000 432,500 432,500 69% A Strong 1 2025 675,000 - - - 0% 2024 850,000 580,000 290,000 290,000 68% 1. STVR based on time as a Disclosed Executive in 2024 (E Clements), 2025 (M Bullock, B Rush, M Carnegie, G Florian, A Strong). #### 6.2 Long term variable remuneration (LTVR) The LTVR rewards for the achievement of longer term strategic objectives, drives outperformance relative to peers, and creates long-term sustained value for all stakeholders. 6.2.1 CEOs and DEs LTVR – 2025 outcomes 2025 Received LTVR 2020 performance rights granted to the former CEO and Disclosed Executives (excluding the CRO) in December 2020, reached the end of their performance period in November 2024. Based on performance against hurdles, 25% of the performance rights vested. The remaining 75% of rights lapsed and executives received no value from this proportion of the awards. Performance rights vesting outcomes Over four years Hurdle Grant date 1 First date exercisable 1 ANZ TSR/ CAGR 2 TSR Median TSR/ CAGR 2 TSR threshold target Upper quartile TSR/CAGR 2 TSR maximum target % vested Overall performance rights outcome 75% relative TSR Select Financial Services (SFS) comparator group 07-Dec-20 22-Nov-24 103.31% 124.57% 133.45% 0% 25% vested and 75% lapsed 25% absolute CAGR 2 TSR 07-Dec-20 22-Nov-24 19.42% 8.5% 12.75% 100% 1. Grant date for the former CEO was 16 December 2020, and date first exercisable was 16 December 2024. The former CEO’s performance period was the same as the performance period for Disclosed Executives. 2. Compound Annual Growth Rate (CAGR). 2025 Awarded LTVR and pre grant assessment outcome This section relates to 2025 LTVR awards allocated in November 2024 as part of the 2024 review process, whereas the next section (6.2.2) relates to 2026 LTVR awards to be allocated in November/December 2025 as part of the 2025 review process. As disclosed in the 2024 Remuneration Report and informed by information available at that time, the Board determined in October 2024 that the 2025 LTVR restricted rights (50% of full LTVR opportunity), should be awarded at 90% of full opportunity to current Disclosed Executives (November 2024) and the former CEO (December 2024 post 2024 AGM) due to risk considerations. This adjustment formed part of a holistic assessment (i.e. including consideration of risk adjustments impacting STVR), to ensure a proportionate collective impact for the NFR maers contributing to the additional capital overlay. This resulted in a total 2025 LTVR award (awarded at the start of the 2025 financial year) at 95% of full opportunity (90% of full opportunity for the CRO, whose LTVR is delivered wholly in restricted rights). 72 Australia and New Zealand Banking Group Limited 2025 Annual Report The restricted rights component of LTVR was subject to a pre grant assessment by the Board (outcomes are summarised below), and will be subject to a pre vest assessment by the Board of non-financial measures at the end of the four-year performance period to determine whether the restricted rights should vest in full. Restricted rights 2025 pre grant assessment (Section 5.4.2) Step Action Outcome Step 1 Assess Prudential Soundness Met Step 2 Assess Risk Measures Not met Step 3 Apply Board discretion No adjustment Pre grant assessment outcome 90% The performance rights component of LTVR is subject to TSR hurdles, which will determine the level of vesting and subsequent value of performance rights at the end of the performance period. Former CEO LTVR: 2025 LTVR was to be subject to shareholder approval at the 2024 AGM. Prior to the 2024 AGM, the former CEO forfeited his 2025 LTVR award of $3,206,250 (128.25% of FR, which would have been delivered in the form of 53% performance rights and 47% restricted rights) resulting in the withdrawal of the resolution. Current and former Disclosed Executives' LTVR: 2025 LTVR awarded at 95% of their full opportunity (128.25% of FR, and 90% for the CRO), delivered as part performance rights and part restricted rights (except for the CRO whose LTVR was delivered wholly in restricted rights). 2025 Awarded LTVR – CEOs and Disclosed Executives Actual LTVR 1 LTVR as % of LTVR full opportunity 1 $ Total LTVR 1 $ LTVR performance rights $ LTVR restricted rights $ Full opportunity Current CEO 2 and Current Disclosed Executives 3 E Clements 1,147,500 1,090,125 573,750 516,375 95% K Corbally 1,300,000 1,170,000 - 1,170,000 90% F Faruqui 1,721,250 1,635,188 860,625 774,563 95% C Morgan 1,552,500 1,474,875 776,250 698,625 95% A Watson 4 1,525,007 1,448,756 762,503 686,253 95% M Whelan 2,025,000 1,923,750 1,012,500 911,250 95% Former CEO and Former Disclosed Executives S Ellio 5 3,375,000 - - - 0% M Carnegie 1,755,000 1,667,250 877,500 789,750 95% G Florian 1,704,375 1,619,156 852,188 766,969 95% A Strong 1,215,000 1,154,250 607,500 546,750 95% 1. LTVR full opportunity based on FR at start of financial year. 2. N Matos did not receive a 2025 LTVR award, however approval will be sought from shareholders at the 2025 AGM to‘top up’ his 2026 LTVR award in recognition of his commencement as CEO in 2025. 3. 2025 LTVR award granted in November 2024 - prior to M Bullock and B Rush becoming Disclosed Executives. 4. Awarded in NZD and converted to AUD. Year to date average exchange rate used to convert NZD to AUD as at 30 September for the relevant year. 5. S Elliott forfeited his 2025 LTVR resulting in the withdrawal of the resolution seeking shareholder approval at the 2024 AGM of the proposed grant of restricted rights and performance rights to the former CEO. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 53 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 6.2.2 CEO and DEs LTVR – 2026 outcomes 2026 Awarded LTVR and pre grant assessment outcome Taking into account the findings of independent reviews into the NFR Root Causes and the Markets maers completed in 2025, the Board determined in October 2025 that the 2026 LTVR restricted rights (50% of full LTVR opportunity), should be awarded at 100% of full opportunity to three of the current Disclosed Executives (November 2025) and the current CEO (December 2025 post 2025 AGM). The Board also determined that two of the current Disclosed Executives will have their 2026 LTVR restricted rights impacted by the risk based pre grant assessment: the Group Executive, Institutional will be awarded zero of full restricted rights opportunity, and the Group Executive, Australia Commercial will be awarded 50% of full restricted rights opportunity. This decision was balanced against the future focused nature of this award and the need to ensure overall consequences were appropriate. Following the announcement of the CRO stepping out of a Disclosed Executive role, he is not eligible to receive 2026 LTVR. The former CEO and former Disclosed Executives are also not eligible to receive 2026 LTVR. The restricted rights component of LTVR was subject to a pre grant assessment by the Board (outcomes are summarised below), and will be subject to a pre vest assessment by the Board of non-financial measures at the end of the four-year performance period to determine whether the restricted rights should vest in full. Restricted rights 2026 pre grant assessment (Section 5.4.2) Step Action Outcome Step 1 Assess Prudential Soundness Met Step 2 Assess Risk Measures Not met Step 3 Apply Board discretion Assessed at individual level Pre grant assessment outcome 0% to 100% The performance rights component of LTVR is subject to TSR hurdles, which will determine the level of vesting and subsequent value of performance rights at the end of the performance period. Current CEO LTVR: 2026 LTVR is subject to shareholder approval at the 2025 AGM – 2026 LTVR award of $4,691,250, delivered in the form of 50% performance rights and 50% restricted rights. 2026 LTVR includes a ‘top up’ in recognition of his commencement as CEO in 2025 (noting that N Matos did not receive a 2025 LTVR award). Current Disclosed Executives' LTVR: 2026 LTVR awarded at between 50% and 100% of their full opportunity, delivered as part performance rights and part restricted rights. 2026 LTVR opportunity – CEOs and Disclosed Executives LTVR as % of full opportunity 1 2026 LTVR restricted rights pre grant assessment outcome LTVR restricted rights (50% of full opportunity) LTVR performance rights (50% of full opportunity) Total 2026 LTVR Current CEO and Current Disclosed Executives N Matos 2 100% 50% 50% 100% M Bullock 3 - - - - E Clements 100% 50% 50% 100% K Corbally 4 - - - - F Faruqui 100% 50% 50% 100% C Morgan 50% 25% 50% 75% B Rush 5 100% 100% - 100% A Watson 100% 50% 50% 100% M Whelan 0% 0% 50% 50% Former CEO and Former Disclosed Executives S Ellio 6 - - - - M Carnegie 6 - - - - G Florian 6 - - - - A Strong 6 - - - - 1. LTVR full opportunity based on FR at start of financial year. 2. N Matos did not receive a 2025 LTVR award, however approval will be sought from shareholders at the 2025 AGM to ‘top up’ his 2026 LTVR award in recognition of his commencement as CEO in 2025. 3. M Bullock is not eligible to receive 2026 LTVR, in accordance with the remuneration structure for his role. 4. K Corbally is not eligible to receive 2026 LTVR, following the announcement that he will step down from the CRO role. 5. B Rush is eligible to receive 2026 LTVR, in accordance with the remuneration structure for his role (FAR Accountable Person for Suncorp Bank). 6. The former CEO and former Disclosed Executives are not eligible to receive 2026 LTVR. 54 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 6.2.2 CEO and DEs LTVR – 2026 outcomes 2026 Awarded LTVR and pre grant assessment outcome Taking into account the findings of independent reviews into the NFR Root Causes and the Markets maers completed in 2025, the Board determined in October 2025 that the 2026 LTVR restricted rights (50% of full LTVR opportunity), should be awarded at 100% of full opportunity to three of the current Disclosed Executives (November 2025) and the current CEO (December 2025 post 2025 AGM). The Board also determined that two of the current Disclosed Executives will have their 2026 LTVR restricted rights impacted by the risk based pre grant assessment: the Group Executive, Institutional will be awarded zero of full restricted rights opportunity, and the Group Executive, Australia Commercial will be awarded 50% of full restricted rights opportunity. This decision was balanced against the future focused nature of this award and the need to ensure overall consequences were appropriate. Following the announcement of the CRO stepping out of a Disclosed Executive role, he is not eligible to receive 2026 LTVR. The former CEO and former Disclosed Executives are also not eligible to receive 2026 LTVR. The restricted rights component of LTVR was subject to a pre grant assessment by the Board (outcomes are summarised below), and will be subject to a pre vest assessment by the Board of non-financial measures at the end of the four-year performance period to determine whether the restricted rights should vest in full. Restricted rights 2026 pre grant assessment (Section 5.4.2) Step Action Outcome Step 1 Assess Prudential Soundness Met Step 2 Assess Risk Measures Not met Step 3 Apply Board discretion Assessed at individual level Pre grant assessment outcome 0% to 100% The performance rights component of LTVR is subject to TSR hurdles, which will determine the level of vesting and subsequent value of performance rights at the end of the performance period. Current CEO LTVR: 2026 LTVR is subject to shareholder approval at the 2025 AGM – 2026 LTVR award of $4,691,250, delivered in the form of 50% performance rights and 50% restricted rights. 2026 LTVR includes a ‘top up’ in recognition of his commencement as CEO in 2025 (noting that N Matos did not receive a 2025 LTVR award). Current Disclosed Executives' LTVR: 2026 LTVR awarded at between 50% and 100% of their full opportunity, delivered as part performance rights and part restricted rights. 2026 LTVR opportunity – CEOs and Disclosed Executives LTVR as % of full opportunity 1 2026 LTVR restricted rights pre grant assessment outcome LTVR restricted rights (50% of full opportunity) LTVR performance rights (50% of full opportunity) Total 2026 LTVR Current CEO and Current Disclosed Executives N Matos 2 100% 50% 50% 100% M Bullock 3 - - - - E Clements 100% 50% 50% 100% K Corbally 4 - - - - F Faruqui 100% 50% 50% 100% C Morgan 50% 25% 50% 75% B Rush 5 100% 100% - 100% A Watson 100% 50% 50% 100% M Whelan 0% 0% 50% 50% Former CEO and Former Disclosed Executives S Ellio 6 - - - - M Carnegie 6 - - - - G Florian 6 - - - - A Strong 6 - - - - 1. LTVR full opportunity based on FR at start of financial year. 2. N Matos did not receive a 2025 LTVR award, however approval will be sought from shareholders at the 2025 AGM to ‘top up’ his 2026 LTVR award in recognition of his commencement as CEO in 2025. 3. M Bullock is not eligible to receive 2026 LTVR, in accordance with the remuneration structure for his role. 4. K Corbally is not eligible to receive 2026 LTVR, following the announcement that he will step down from the CRO role. 5. B Rush is eligible to receive 2026 LTVR, in accordance with the remuneration structure for his role (FAR Accountable Person for Suncorp Bank). 6. The former CEO and former Disclosed Executives are not eligible to receive 2026 LTVR. 74 Australia and New Zealand Banking Group Limited 2025 Annual Report #### 6.3 2025 Total received remuneration This table shows the remuneration the current and former CEOs and current and former Disclosed Executives actually received in relation to the 2025 financial year as cash paid, or in the case of prior equity awards, the value which vested or lapsed/forfeited in 2025, i.e. vesting/lapse/forfeiture from November/December 2024. See section 10.1.1 for details on deferred variable remuneration which vested or lapsed/forfeited during the 2025 year. FR adjustments were received by two current Disclosed Executives (E Clements and C Morgan) and one former Disclosed Executive (AStrong) eective 1 October 2024 to maintain or improve market positioning, approved by the Board in October 2024. There were no other adjustments to FR for Disclosed Executives in 2025. 2025 Total received remuneration – CEOs and Disclosed Executives Received value includes the value of prior equity awards which vested in that year Fixed remuneration $ Cash variable remuneration $ Total cash $ Deferred variable remuneration which vested in Nov/Dec 2024 1 $ Actual remuneration received 2 $ Deferred variable remuneration which lapsed/forfeited in Nov/Dec 2024 1,3 $ Current CEO and Current Disclosed Executives N Matos 4 975,000 - 975,000 - 975,000 - M Bullock 4 160,000 93,000 253,000 - 253,000 - E Clements 5 850,000 - 850,000 304,580 1,154,580 - K Corbally 1,300,000 - 1,300,000 1,564,131 2,864,131 - F Faruqui 1,275,000 - 1,275,000 1,307,991 2,582,991 (825,688) C Morgan 5 1,150,000 - 1,150,000 329,760 1,479,760 - B Rush 4 288,397 114,260 402,656 - 402,656 - A Watson 6 1,115,606 346,066 1,461,672 1,058,998 2,520,670 (761,273) M Whelan 1,500,000 - 1,500,000 1,356,173 2,856,173 (825,688) Former CEO and Former Disclosed Executives S Ellio 2,500,000 - 2,500,000 2,773,971 5,273,971 (3,488,272) M Carnegie 4 1,092,000 - 1,092,000 1,173,955 2,265,955 (930,782) G Florian 4 1,388,750 - 1,388,750 1,119,112 2,507,862 (844,476) A Strong 4,5 675,000 - 675,000 552,313 1,227,313 - 1. Point in time value of previously deferred remuneration granted as deferred shares and/or rights, and is based on the one day VWAP of ANZGHL shares traded on the ASX on the date of vesting or lapsing/forfeiture multiplied by the number of deferred shares and/or rights. See section 10.1.1 for details. 2. The sum of fixed remuneration, cash STVR and deferred variable remuneration which vested during the year. 3. The lapsed/forfeited values relate to 75% of the performance rights awarded in December 2020 lapsing in November 2024 due to the performance hurdles not being met. 4. Fixed remuneration based on time as CEO (N Matos)/Disclosed Executive (M Bullock, B Rush, M Carnegie, G Florian, A Strong). 5. Fixed remuneration reflects increases applied from 1 October 2024 to maintain or improve market positioning (E Clements, C Morgan, A Strong). 6. Paid in NZD and converted to AUD. Year to date average exchange rate used to convert NZD to AUD as at 30 September for the relevant year. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 55 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### 6.4 2025 Statutory remuneration – CEO and Disclosed Executives The following table outlines the statutory remuneration disclosed in accordance with Australian Accounting Standards. While it shows the FR awarded (cash and superannuation contributions) and also the cash component of the 2025 variable remuneration award, it does not show the actual variable remuneration awarded or total received in 2025 (Sections 6.1.2, 6.2.1 and 6.2.2), nor does it reflect the application of malus applied to unvested equity as detailed in section 10.1.1. Instead, the table shows the amortised accounting value for this financial year of deferred remuneration (including prior year awards). 1. Cash salary includes any adjustments required to reflect the use of ANZ’s Lifestyle Leave Policy for the period in the KMP role. 2. Non monetary benefits generally consist of company- funded benefits (and the associated Fringe Benefits Tax) such as car parking, taxation services and costs met by the Company in relation to relocation/accommodation. 3. The total cash incentive relates to the cash component of STVR only. The relevant amortisation of the STVR deferred components is included in share-based payments and has been amortised over the vesting period. The total STVR was approved by the ANZBGL and ANZGHL Boards in October 2025, and in addition for A Watson by the ANZ NZ Board in October 2025. 100% of the cash component of the STVR awarded for the 2024 and 2025 years vested to the executive in the applicable financial year. 4. For Australian based executives other than N Matos, the 2024 and 2025 superannuation contributions reflect the Superannuation Guarantee Contribution based on the Maximum Contribution Base. As N Matos is a holder of a long stay visa, his fixed remuneration does not include the Superannuation Guarantee Contribution, however he is able to elect voluntary superannuation contributions. A Watson participates in KiwiSaver where ANZ provides an employer superannuation contribution matching member contributions up to 4% of total gross pay. KiwiSaver employer superannuation contributions are also contributed on top of cash STVR at the time of payment. 5. For Australian based executives, long service leave accrued takes into consideration the impact of changes to the Superannuation Guarantee percentage. Year-on-year fluctuations in long service leave accrued relate to the impact of historical fixed remuneration increases on the accrual as calculated at the end of each financial year and the Superannuation Guarantee percentage. 6. As required by AASB 2 Share-based payments, the amortisation value includes a proportion of the fair value (taking into account market-related vesting conditions) of all equity that had not yet fully vested as at the commencement of the financial year. The fair value is determined at grant date and is allocated on a straight-line basis over the relevant vesting period. The amount included as remuneration neither relates to, nor indicates, the benefit (if any) that the executive may ultimately realise if the equity becomes exercisable. No terms of share-based payments have been altered or modified during the financial year. There were no cash settled share-based payments or any other form of share-based payment compensation during the financial year for the current or former CEOs or current or former Disclosed Executives. 2025 Statutory remuneration – CEO and Disclosed Executives Short–term employee benefits Post– employment Long–term employee benefits Share–based payments 6 Total amortisation value of Long service leave accrued during the year 5 $ Variable remuneration Other equity allocations 7 Financial year Cash salary 1 $ Non monetary benefits 2 $ Total cash incentive 3 $ Super contributions 4 $ Deferred shares $ Deferred share rights $ Restricted rights $ Performance rights $ Deferred shares $ Termination benefits $ Total remuneration $ Current CEO and Current Disclosed Executives N Matos 8 2025 975,000 52,228 - - 14,408 - - - - - - 1,041,636 M Bullock 8 2025 151,781 8,774 93,000 8,219 2,313 3,889 28,963 - - - - 296,939 E Clements 8,9 2025 819,551 12,710 - 30,449 24,259 177,824 - 170,159 92,268 - - 1,327,220 2024 755,468 13,042 235,200 28,532 62,803 258,379 - 74,331 41,931 - - 1,469,686 K Corbally 2025 1,270,051 10,210 - 29,949 17,940 262,990 106,601 627,587 - - - 2,325,328 2024 1,271,968 10,394 312,000 28,032 28,812 504,806 184,609 412,784 - - - 2,753,405 F Faruqui 2025 1,245,051 24,043 - 29,949 18,636 318,456 1,023 418,445 342,243 - - 2,397,846 2024 1,246,968 15,990 442,500 28,032 19,593 587,723 11,970 276,254 339,842 - - 2,968,872 C Morgan 9 2025 1,119,551 22,124 - 30,449 17,267 181,405 - 322,058 176,676 55,156 - 1,924,686 2024 1,106,468 33,024 325,000 28,532 17,191 248,970 - 193,884 109,398 238,340 - 2,300,807 B Rush 8 2025 280,910 - 114,260 7,487 22,945 14,852 - 28,580 - - - 469,034 A Watson 5,10 2025 1,056,978 18,938 346,066 60,279 8,542 408,520 - 370,899 310,191 - - 2,580,413 2024 1,043,345 10,870 398,830 64,667 7,560 494,722 - 244,918 294,280 - - 2,559,192 M Whelan 2025 1,470,051 10,210 - 29,949 20,239 290,184 - 490,988 393,757 - - 2,705,378 2024 1,471,968 10,394 297,500 28,032 31,775 589,980 - 323,689 378,985 - - 3,132,323 Former CEO and Former Disclosed Executives S Ellio 8,11 2025 2,462,551 21,730 - 37,449 - 802,902 - 1,866,081 1,492,733 - 999,208 7,682,654 2024 2,471,968 10,394 650,000 28,032 34,899 983,953 - 470,353 1,050,043 - - 5,699,642 M Carnegie 8,12 2025 1,061,551 23,103 - 30,449 - 405,453 - 1,559,907 929,167 - 708,122 4,717,752 2024 1,271,468 30,510 432,500 28,532 24,194 537,168 - 278,624 318,478 - - 2,921,474 G Florian 8,13 2025 1,333,083 19,106 - 42,638 - 396,513 - 1,494,480 924,111 - 465,331 4,675,262 2024 1,234,468 21,358 432,500 28,032 19,520 519,518 - 262,636 314,818 - - 2,832,850 A Strong 8,9,14 2025 645,051 6,383 - 29,949 - 300,202 - 1,023,405 546,818 - 368,829 2,920,637 2024 821,968 - 290,000 28,032 33,855 382,072 - 173,812 94,524 - - 1,824,263 56 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() #### 6.4 2025 Statutory remuneration – CEO and Disclosed Executives The following table outlines the statutory remuneration disclosed in accordance with Australian Accounting Standards. While it shows the FR awarded (cash and superannuation contributions) and also the cash component of the 2025 variable remuneration award, it does not show the actual variable remuneration awarded or total received in 2025 (Sections 6.1.2, 6.2.1 and 6.2.2), nor does it reflect the application of malus applied to unvested equity as detailed in section 10.1.1. Instead, the table shows the amortised accounting value for this financial year of deferred remuneration (including prior year awards). 1. Cash salary includes any adjustments required to reflect the use of ANZ’s Lifestyle Leave Policy for the period in the KMP role. 2. Non monetary benefits generally consist of company- funded benefits (and the associated Fringe Benefits Tax) such as car parking, taxation services and costs met by the Company in relation to relocation/accommodation. 3. The total cash incentive relates to the cash component of STVR only. The relevant amortisation of the STVR deferred components is included in share-based payments and has been amortised over the vesting period. The total STVR was approved by the ANZBGL and ANZGHL Boards in October 2025, and in addition for A Watson by the ANZ NZ Board in October 2025. 100% of the cash component of the STVR awarded for the 2024 and 2025 years vested to the executive in the applicable financial year. 4. For Australian based executives other than N Matos, the 2024 and 2025 superannuation contributions reflect the Superannuation Guarantee Contribution based on the Maximum Contribution Base. As N Matos is a holder of a long stay visa, his fixed remuneration does not include the Superannuation Guarantee Contribution, however he is able to elect voluntary superannuation contributions. A Watson participates in KiwiSaver where ANZ provides an employer superannuation contribution matching member contributions up to 4% of total gross pay. KiwiSaver employer superannuation contributions are also contributed on top of cash STVR at the time of payment. 5. For Australian based executives, long service leave accrued takes into consideration the impact of changes to the Superannuation Guarantee percentage. Year-on-year fluctuations in long service leave accrued relate to the impact of historical fixed remuneration increases on the accrual as calculated at the end of each financial year and the Superannuation Guarantee percentage. 6. As required by AASB 2 Share-based payments, the amortisation value includes a proportion of the fair value (taking into account market-related vesting conditions) of all equity that had not yet fully vested as at the commencement of the financial year. The fair value is determined at grant date and is allocated on a straight-line basis over the relevant vesting period. The amount included as remuneration neither relates to, nor indicates, the benefit (if any) that the executive may ultimately realise if the equity becomes exercisable. No terms of share-based payments have been altered or modified during the financial year. There were no cash settled share-based payments or any other form of share-based payment compensation during the financial year for the current or former CEOs or current or former Disclosed Executives. 2025 Statutory remuneration – CEO and Disclosed Executives Short–term employee benefits Post– employment Long–term employee benefits Share–based payments 6 Total amortisation value of Long service leave accrued during the year 5 $ Variable remuneration Other equity allocations 7 Financial year Cash salary 1 $ Non monetary benefits 2 $ Total cash incentive 3 $ Super contributions 4 $ Deferred shares $ Deferred share rights $ Restricted rights $ Performance rights $ Deferred shares $ Termination benefits $ Total remuneration $ Current CEO and Current Disclosed Executives N Matos 8 2025 975,000 52,228 - - 14,408 - - - - - - 1,041,636 M Bullock 8 2025 151,781 8,774 93,000 8,219 2,313 3,889 28,963 - - - - 296,939 E Clements 8,9 2025 819,551 12,710 - 30,449 24,259 177,824 - 170,159 92,268 - - 1,327,220 2024 755,468 13,042 235,200 28,532 62,803 258,379 - 74,331 41,931 - - 1,469,686 K Corbally 2025 1,270,051 10,210 - 29,949 17,940 262,990 106,601 627,587 - - - 2,325,328 2024 1,271,968 10,394 312,000 28,032 28,812 504,806 184,609 412,784 - - - 2,753,405 F Faruqui 2025 1,245,051 24,043 - 29,949 18,636 318,456 1,023 418,445 342,243 - - 2,397,846 2024 1,246,968 15,990 442,500 28,032 19,593 587,723 11,970 276,254 339,842 - - 2,968,872 C Morgan 9 2025 1,119,551 22,124 - 30,449 17,267 181,405 - 322,058 176,676 55,156 - 1,924,686 2024 1,106,468 33,024 325,000 28,532 17,191 248,970 - 193,884 109,398 238,340 - 2,300,807 B Rush 8 2025 280,910 - 114,260 7,487 22,945 14,852 - 28,580 - - - 469,034 A Watson 5,10 2025 1,056,978 18,938 346,066 60,279 8,542 408,520 - 370,899 310,191 - - 2,580,413 2024 1,043,345 10,870 398,830 64,667 7,560 494,722 - 244,918 294,280 - - 2,559,192 M Whelan 2025 1,470,051 10,210 - 29,949 20,239 290,184 - 490,988 393,757 - - 2,705,378 2024 1,471,968 10,394 297,500 28,032 31,775 589,980 - 323,689 378,985 - - 3,132,323 Former CEO and Former Disclosed Executives S Ellio 8,11 2025 2,462,551 21,730 - 37,449 - 802,902 - 1,866,081 1,492,733 - 999,208 7,682,654 2024 2,471,968 10,394 650,000 28,032 34,899 983,953 - 470,353 1,050,043 - - 5,699,642 M Carnegie 8,12 2025 1,061,551 23,103 - 30,449 - 405,453 - 1,559,907 929,167 - 708,122 4,717,752 2024 1,271,468 30,510 432,500 28,532 24,194 537,168 - 278,624 318,478 - - 2,921,474 G Florian 8,13 2025 1,333,083 19,106 - 42,638 - 396,513 - 1,494,480 924,111 - 465,331 4,675,262 2024 1,234,468 21,358 432,500 28,032 19,520 519,518 - 262,636 314,818 - - 2,832,850 A Strong 8,9,14 2025 645,051 6,383 - 29,949 - 300,202 - 1,023,405 546,818 - 368,829 2,920,637 2024 821,968 - 290,000 28,032 33,855 382,072 - 173,812 94,524 - - 1,824,263 76 Australia and New Zealand Banking Group Limited 2025 Annual Report 7. Other equity allocations (C Morgan) relate to the employment arrangements of deferred variable remuneration forfeited and bonus opportunity forgone as a result of joining ANZ. 8. Remuneration based on time as a KMP in either 2024 (E Clements) or 2025 (N Matos, M Bullock, B Rush, S Elliott, M Carnegie, G Florian, A Strong). 9. 2025 fixed remuneration reflects increases applied from 1 October 2024 to maintain or improve market positioning (E Clements, C Morgan, A Strong). 10. Paid in NZD and converted to AUD. 11. 2025 remuneration for S Elliott based on time as a KMP up to date of cessation 30 September 2025 (noting that his annual FR for 2025 was $2.5m). Share-based payments include the expensing treatment on retirement for unvested deferred remuneration - unvested deferred remuneration remains subject to vesting conditions. Termination benefits reflect payment for accrued annual leave and long service leave and payment in lieu of notice in accordance with his contract, payable on cessation of employment. Year-on-year increase in total remuneration relates to the future year expensing treatment of unvested deferred remuneration brought forward for disclosure purposes only and the provision of contractual items on termination. 12. 2025 remuneration for M Carnegie based on time as a KMP up to date of cessation 1 August 2025 (noting that her annual FR for 2025 was $1.3m). Share-based payments include the expensing treatment on retirement for unvested deferred remuneration - unvested deferred remuneration remains subject to vesting conditions. Termination benefits reflect payment for accrued annual leave and long service leave and payment in lieu of notice in accordance with her contract, payable on cessation. 13. 2025 remuneration for G Florian based on time as a KMP up to date of cessation 7 November 2025 (noting that his annual FR for 2025 was $1.2625m). Share-based payments include the expensing treatment on retirement for unvested deferred remuneration - unvested deferred remuneration remains subject to vesting conditions. Termination benefits reflect payment for accrued annual leave and long service leave and payment in lieu of notice in accordance with his contract, payable on cessation of employment. 14. 2025 remuneration for A Strong based on time as a KMP up to date of cessation 1 July 2025 (noting that his annual FR for 2025 was $0.9m). Share-based payments include the expensing treatment on retirement for unvested deferred remuneration - unvested deferred remuneration remains subject to vesting conditions. Termination benefits reflect payment for accrued annual leave and long service leave and payment in lieu of notice in accordance with his contract, payable on cessation of employment. Note that the statutory remuneration for the former CEO and former Disclosed Executives is disclosed up to the date they ceased employment with ANZ, rather than the date they ceased in role. Short–term employee benefits Post– employment Long–term employee benefits Share–based payments 6 Total amortisation value of Long service leave accrued during the year 5 $ Variable remuneration Other equity allocations 7 Financial year Cash salary 1 $ Non monetary benefits 2 $ Total cash incentive 3 $ Super contributions 4 $ Deferred shares $ Deferred share rights $ Restricted rights $ Performance rights $ Deferred shares $ Termination benefits $ Total remuneration $ Current CEO and Current Disclosed Executives N Matos 8 2025 975,000 52,228 - - 14,408 - - - - - - 1,041,636 M Bullock 8 2025 151,781 8,774 93,000 8,219 2,313 3,889 28,963 - - - - 296,939 E Clements 8,9 2025 819,551 12,710 - 30,449 24,259 177,824 - 170,159 92,268 - - 1,327,220 2024 755,468 13,042 235,200 28,532 62,803 258,379 - 74,331 41,931 - - 1,469,686 K Corbally 2025 1,270,051 10,210 - 29,949 17,940 262,990 106,601 627,587 - - - 2,325,328 2024 1,271,968 10,394 312,000 28,032 28,812 504,806 184,609 412,784 - - - 2,753,405 F Faruqui 2025 1,245,051 24,043 - 29,949 18,636 318,456 1,023 418,445 342,243 - - 2,397,846 2024 1,246,968 15,990 442,500 28,032 19,593 587,723 11,970 276,254 339,842 - - 2,968,872 C Morgan 9 2025 1,119,551 22,124 - 30,449 17,267 181,405 - 322,058 176,676 55,156 - 1,924,686 2024 1,106,468 33,024 325,000 28,532 17,191 248,970 - 193,884 109,398 238,340 - 2,300,807 B Rush 8 2025 280,910 - 114,260 7,487 22,945 14,852 - 28,580 - - - 469,034 A Watson 5,10 2025 1,056,978 18,938 346,066 60,279 8,542 408,520 - 370,899 310,191 - - 2,580,413 2024 1,043,345 10,870 398,830 64,667 7,560 494,722 - 244,918 294,280 - - 2,559,192 M Whelan 2025 1,470,051 10,210 - 29,949 20,239 290,184 - 490,988 393,757 - - 2,705,378 2024 1,471,968 10,394 297,500 28,032 31,775 589,980 - 323,689 378,985 - - 3,132,323 Former CEO and Former Disclosed Executives S Ellio 8,11 2025 2,462,551 21,730 - 37,449 - 802,902 - 1,866,081 1,492,733 - 999,208 7,682,654 2024 2,471,968 10,394 650,000 28,032 34,899 983,953 - 470,353 1,050,043 - - 5,699,642 M Carnegie 8,12 2025 1,061,551 23,103 - 30,449 - 405,453 - 1,559,907 929,167 - 708,122 4,717,752 2024 1,271,468 30,510 432,500 28,532 24,194 537,168 - 278,624 318,478 - - 2,921,474 G Florian 8,13 2025 1,333,083 19,106 - 42,638 - 396,513 - 1,494,480 924,111 - 465,331 4,675,262 2024 1,234,468 21,358 432,500 28,032 19,520 519,518 - 262,636 314,818 - - 2,832,850 A Strong 8,9,14 2025 645,051 6,383 - 29,949 - 300,202 - 1,023,405 546,818 - 368,829 2,920,637 2024 821,968 - 290,000 28,032 33,855 382,072 - 173,812 94,524 - - 1,824,263 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 57 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 7.1 Board considerations of #### consequences for material #### risk, audit and conduct events Considerations regarding accountability and consequences for our most senior executives are considered and determined by the People & Culture Commiee and Board, including the application of malus and clawback (Section 5.5) for the CEO and Disclosed Executives. When determining consequences, consideration is given to the level of accountability, and the severity of the issue, including customer impacts. Consequences may include, for example, one or more of the following: counselling, formal warnings, impacts to in-year performance and remuneration outcomes or the application of malus to previously deferred remuneration and ultimately termination of employment or clawback for the most serious issues. As part of our standard process, reports on the most material risk, audit and conduct issues are presented to the People & Culture, Risk and Audit Commiees at a joint meeting. This information is considered by the Board when assessing the performance of the Group and in determining the performance and remuneration outcomes of the CEO and Disclosed Executives. The Board has exercised its discretion in 2025 to apply malus to the unvested deferred remuneration held by the former CEO, three former Disclosed Executives and other former executives. #### 7.2 Role of the Enterprise #### Accountability Group The Enterprise Accountability Group (EAG) is the governance mechanism for the operation of the Accountability and Consequence Framework (A&CF), and reviews accountability and consequences for employees below the CEO and ExCo/ Disclosed Executives. The EAG is chaired by the CEO and members include the CRO, CFO and GE T&C. It operates under the delegated authority of the People & Culture Commiee, and is responsible for: • supporting the Board in monitoring the implementation and ongoing eectiveness of ANZ’s A&CF; • reviewing the most material risk, conduct and audit events to determine accountability and the application of consequences, where appropriate; • providing guidance to the Divisions and considering initiatives across the Divisions to strengthen risk behaviours; • acknowledging material positive risk events and recognising risk role models, whose achievements are profiled across the organisation; • approving the release or application of downward adjustment for deferred variable remuneration (noting that for the CEO and Disclosed Executives this is approved by the Board). The EAG has processes in place to ensure that we mitigate the risk of conflicts of interest in reviewing events and determining accountability and consequences. For example, when undertaking accountability reviews, a recommendation regarding the review leader and scope must be approved by the CRO (or in the case of an event involving Group Risk by the CEO), to ensure the individual is capable of undertaking an impartial and unbiased review. #### 7.3 Risk role models In 2025, 142 individuals were recognised by the EAG for role modelling outstanding risk behaviours through their eorts to identify, manage and mitigate the organisation’s risks and contribute to a strong risk culture. Recognition included a personalised e-mail from the CEO, local recognition events, and having their achievement profiled on our intranet and in internal newsleers. #### 7.4 Compliance with #### Prudential Standard CPS 511 #### Remuneration ANZ’s A&CF is an integral part of our enterprise approach to meeting the requirements of APRA’s Prudential Standard CPS 511 Remuneration. We introduced clawback provisions for the CEO and our Disclosed Executives eective 2022, in addition to existing downward adjustment tools such as in-year adjustment, further deferral andmalus. In 2025, we have continued to raise employee awareness with respect to accountability and consequences through 7. Accountability and Consequence Framework 7.1 Board considerations of consequences for material risk, audit and conduct events 7.2 Role of the Enterprise Accountability Group 7.3 Risk role models 7.4 Compliance with Prudential Standard CPS 511 Remuneration 7.5 Evolving the Accountability & Consequence Framework 7.6 Speak up culture 7.7 Application of consequences 58 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 7.1 Board considerations of #### consequences for material #### risk, audit and conduct events Considerations regarding accountability and consequences for our most senior executives are considered and determined by the People & Culture Commiee and Board, including the application of malus and clawback (Section 5.5) for the CEO and Disclosed Executives. When determining consequences, consideration is given to the level of accountability, and the severity of the issue, including customer impacts. Consequences may include, for example, one or more of the following: counselling, formal warnings, impacts to in-year performance and remuneration outcomes or the application of malus to previously deferred remuneration and ultimately termination of employment or clawback for the most serious issues. As part of our standard process, reports on the most material risk, audit and conduct issues are presented to the People & Culture, Risk and Audit Commiees at a joint meeting. This information is considered by the Board when assessing the performance of the Group and in determining the performance and remuneration outcomes of the CEO and Disclosed Executives. The Board has exercised its discretion in 2025 to apply malus to the unvested deferred remuneration held by the former CEO, three former Disclosed Executives and other former executives. #### 7.2 Role of the Enterprise #### Accountability Group The Enterprise Accountability Group (EAG) is the governance mechanism for the operation of the Accountability and Consequence Framework (A&CF), and reviews accountability and consequences for employees below the CEO and ExCo/ Disclosed Executives. The EAG is chaired by the CEO and members include the CRO, CFO and GE T&C. It operates under the delegated authority of the People & Culture Commiee, and is responsible for: • supporting the Board in monitoring the implementation and ongoing eectiveness of ANZ’s A&CF; • reviewing the most material risk, conduct and audit events to determine accountability and the application of consequences, where appropriate; • providing guidance to the Divisions and considering initiatives across the Divisions to strengthen risk behaviours; • acknowledging material positive risk events and recognising risk role models, whose achievements are profiled across the organisation; • approving the release or application of downward adjustment for deferred variable remuneration (noting that for the CEO and Disclosed Executives this is approved by the Board). The EAG has processes in place to ensure that we mitigate the risk of conflicts of interest in reviewing events and determining accountability and consequences. For example, when undertaking accountability reviews, a recommendation regarding the review leader and scope must be approved by the CRO (or in the case of an event involving Group Risk by the CEO), to ensure the individual is capable of undertaking an impartial and unbiased review. #### 7.3 Risk role models In 2025, 142 individuals were recognised by the EAG for role modelling outstanding risk behaviours through their eorts to identify, manage and mitigate the organisation’s risks and contribute to a strong risk culture. Recognition included a personalised e-mail from the CEO, local recognition events, and having their achievement profiled on our intranet and in internal newsleers. #### 7.4 Compliance with #### Prudential Standard CPS 511 #### Remuneration ANZ’s A&CF is an integral part of our enterprise approach to meeting the requirements of APRA’s Prudential Standard CPS 511 Remuneration. We introduced clawback provisions for the CEO and our Disclosed Executives eective 2022, in addition to existing downward adjustment tools such as in-year adjustment, further deferral and malus. In 2025, we have continued to raise employee awareness with respect to accountability and consequences through 7. Accountability and Consequence Framework 7.1 Board considerations of consequences for material risk, audit and conduct events 7.2 Role of the Enterprise Accountability Group 7.3 Risk role models 7.4 Compliance with Prudential Standard CPS 511 Remuneration 7.5 Evolving the Accountability & Consequence Framework 7.6 Speak up culture 7.7 Application of consequences 78 Australia and New Zealand Banking Group Limited 2025 Annual Report explicit references to the A&CF (including remuneration consequences) in employee training and communications and performance and remuneration policies. In addition, as part of our annual performance and remuneration process, we have provided People Leaders with guidance regarding appropriate (and in some cases, mandatory) remuneration consequences for conduct and performance issues, including insights from consequences applied in the previous year. These activities are part of our continued focus on consistency in the application of remuneration consequence across ANZ globally. #### 7.5 Evolving the Accountability #### & Consequence Framework Our A&CF is designed to support our commitment that when things go wrong, we fix them and hold executives (current and former where we can), to account where appropriate. We are also focused on ensuring that we learn from root causes of events, mitigate the risk of future recurrences and continuously seek to strengthen our risk culture. We review the eectiveness of the A&CF every year and implement enhancements to further strengthen the A&CF based on regulatory and internal stakeholder input. #### 7.6 Speak up culture We continue to raise employee awareness of, and promote the various ways employees can speak up and raise issues and ideas for improvement including initiatives such as: targeted jurisdiction and business- specific awareness sessions, designed to build trust in the process and promote speak up channels; digital communications designed to build confidence and trust in the Whistleblower Program and process; monitoring of responses in our employee engagement surveys. Key risk and speak up scores, including ‘My people leader (the person I report to) demonstrates personal accountability for managing risk and sound risk behaviours (92%)‘, ‘In my team I can raise issues and concerns about risk management without fear of reprisals’ (90%), ‘In my team, it feels safe to ask questions, make mistakes, highlight problems & take social risks (85%)’ and ‘When I speak up, my ideas, opinions and concerns are heard’ (80%) remained high, in keeping with 2024, 2023 and 2022 results. 1 7.7 Application of #### consequences In 2025, there were 1,569 employee relations cases involving alleged breaches of our Code, with 567 resulting in a formal consequence or the employee leaving ANZ, up from 488 in 2024. Outcomes following investigations of breaches this year included 127 terminations, 337 warnings and 103 employees leaving ANZ. In relation to the application of consequences to our senior leadership population (senior executives, executives and senior managers), 36 current and former employees (20 in 2024) had a consequence applied as a result of the application of our Code of Conduct Policy and/or findings of accountability for a relevant event. Consequences included warnings, impacts on performance and remuneration outcomes and dismissal. All employees and contractors across the enterprise are required to complete mandatory learning modules. Permanent employees who fail to complete their mandatory learning requirements within 30 days of the due date are (in the absence of genuinely exceptional circumstances) ineligible for any FR increase or variable remuneration award as part of our annual Performance and Remuneration Review. In 2025, the mandatory learning course compliance rate across the enterprise was 99.86%. 1. Results reported are taken from the Q2 and/or Q4 employee engagement surveys, and Risk Culture Survey. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 59 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### 8.1 CEO and Disclosed Executives’ contract terms and equity treatment The details of the contract terms and the equity treatment on termination (in accordance with the Conditions of Grant) relating to the CEO and Disclosed Executives are below. Although they are similar, they vary in some cases to suit dierent circumstances. Type of contract Permanent ongoing employment contract. Notice on resignation • 12 months by CEO; • 6 months by Disclosed Executives. 1 Notice on termination byANZ 2 • 12 months by ANZ for CEO and Disclosed Executives. 3 However, ANZ may immediately terminate an individual’s employment at any time in the case of serious misconduct. In that case, the individual will be entitled only to payment of FR up to the date of their termination and their statutory entitlements. How unvested equity is treated on leaving ANZ Executives who resign or are terminated will forfeit all their unvested deferred equity – unless the Board determines otherwise. If an executive is terminated due to redundancy or they are classified as a ‘good leaver’, unless the Board determines otherwise, then: • their STVR (deferred shares/share rights) 4 remain on foot and are released at the original vesting date; • their LTVR (restricted rights/performance rights) 4 remain on foot and are released at the original vesting date (to the extent that the performance hurdles are met). On an executive’s death or total and permanent disablement, their deferred equity vests. Unvested equity remains subject to malus post termination. Change of control (applies to the CEO only) If a change of control or other similar event occurs, then we will test the performance conditions applying to the CEO’s LTVR (restricted rights/performance rights). They will vest to the extent that the performance conditions are satisfied. 1. 3 months for acting Group Executive roles. 2. For E Clements, K Corbally, F Faruqui, C Morgan, B Rush, M Whelan, M Carnegie, G Florian and A Strong, their contracts state that in particular circumstances they may be eligible for a retrenchment benefit in accordance with the relevant ANZ policy, as varied from time to time. For M Bullock and A Watson, notice on retrenchment is 6 weeks and compensation on retrenchment is calculated on a scale up to a maximum of 79 weeks after 25 years’ service. 3. 3 months by ANZ for M Bullock and 6 months for B Rush. 4. For grants awarded from and including 20 August 2025, where all ‘good leaver’ criteria are satisfied the employee must also agree to enter into a separation agreement with ANZ. #### 8.2 Hedging prohibition All deferred equity must remain at risk until it has fully vested. Accordingly, executives and their associated persons must not enter into any schemes that specifically protect the unvested value of equity allocated. If they do so, then they would forfeit the relevant equity. #### 8.3 CEO and Disclosed Executives’ minimum shareholding requirement (MSR) We expect the CEO and each Disclosed Executive to hold ANZ issued securities. The CEO and Disclosed Executives are required: • to accumulate ANZ issued securities – over a five-year period from their appointment to the value of: – 200% of FR (150% of FR from 2026) for each Disclosed Executive; – 200% of FR for the CEO; and • to maintain this shareholding while they are an executive of ANZ. Executives are permied to sell ANZ issued securities to meet taxation obligations on employee equity even if below the approved requirement. However, tax obligations for the purpose of these requirements is limited to that arising from the initial taxing point event (i.e. when the deferred shares vest or rights are exercised). ANZ issued securities include all vested and unvested equity (excluding performance rights and from 2026 also restricted rights). Basedon equity holdings as at 30 September 2025, all executives who have served five years met their holding requirements. 8. Internal governance 8.1 CEO and Disclosed Executives’ contract terms and equity treatment 8.2 Hedging prohibition 60 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() #### 8.1 CEO and Disclosed Executives’ contract terms and equity treatment The details of the contract terms and the equity treatment on termination (in accordance with the Conditions of Grant) relating to the CEO and Disclosed Executives are below. Although they are similar, they vary in some cases to suit dierent circumstances. Type of contract Permanent ongoing employment contract. Notice on resignation • 12 months by CEO; • 6 months by Disclosed Executives. 1 Notice on termination byANZ 2 • 12 months by ANZ for CEO and Disclosed Executives. 3 However, ANZ may immediately terminate an individual’s employment at any time in the case of serious misconduct. In that case, the individual will be entitled only to payment of FR up to the date of their termination and their statutory entitlements. How unvested equity is treated on leaving ANZ Executives who resign or are terminated will forfeit all their unvested deferred equity – unless the Board determines otherwise. If an executive is terminated due to redundancy or they are classified as a ‘good leaver’, unless the Board determines otherwise, then: • their STVR (deferred shares/share rights) 4 remain on foot and are released at the original vesting date; • their LTVR (restricted rights/performance rights) 4 remain on foot and are released at the original vesting date (to the extent that the performance hurdles are met). On an executive’s death or total and permanent disablement, their deferred equity vests. Unvested equity remains subject to malus post termination. Change of control (applies to the CEO only) If a change of control or other similar event occurs, then we will test the performance conditions applying to the CEO’s LTVR (restricted rights/performance rights). They will vest to the extent that the performance conditions are satisfied. 1. 3 months for acting Group Executive roles. 2. For E Clements, K Corbally, F Faruqui, C Morgan, B Rush, M Whelan, M Carnegie, G Florian and A Strong, their contracts state that in particular circumstances they may be eligible for a retrenchment benefit in accordance with the relevant ANZ policy, as varied from time to time. For M Bullock and A Watson, notice on retrenchment is 6 weeks and compensation on retrenchment is calculated on a scale up to a maximum of 79 weeks after 25 years’ service. 3. 3 months by ANZ for M Bullock and 6 months for B Rush. 4. For grants awarded from and including 20 August 2025, where all ‘good leaver’ criteria are satisfied the employee must also agree to enter into a separation agreement with ANZ. #### 8.2 Hedging prohibition All deferred equity must remain at risk until it has fully vested. Accordingly, executives and their associated persons must not enter into any schemes that specifically protect the unvested value of equity allocated. If they do so, then they would forfeit the relevant equity. #### 8.3 CEO and Disclosed Executives’ minimum shareholding requirement (MSR) We expect the CEO and each Disclosed Executive to hold ANZ issued securities. The CEO and Disclosed Executives are required: • to accumulate ANZ issued securities – over a five-year period from their appointment to the value of: – 200% of FR (150% of FR from 2026) for each Disclosed Executive; – 200% of FR for the CEO; and • to maintain this shareholding while they are an executive of ANZ. Executives are permied to sell ANZ issued securities to meet taxation obligations on employee equity even if below the approved requirement. However, tax obligations for the purpose of these requirements is limited to that arising from the initial taxing point event (i.e. when the deferred shares vest or rights are exercised). ANZ issued securities include all vested and unvested equity (excluding performance rights and from 2026 also restricted rights). Basedon equity holdings as at 30 September 2025, all executives who have served five years met their holding requirements. 8. Internal governance 8.1 CEO and Disclosed Executives’ contract terms and equity treatment 8.2 Hedging prohibition 8.3 CEO and Disclosed Executives’ shareholding guidelines 80 Australia and New Zealand Banking Group Limited 2025 Annual Report 9. Non-Executive Director (NED) remuneration 9.1 NED Remuneration structure 9.2 2025 Statutory remuneration – NEDS #### 9.1 NED Remuneration structure The People & Culture Commiee reviewed NED fees and determined not to increase fees for 2025. The fee structure is applicable to NEDs of ANZGHL and ANZBGL, and provides a single fee covering both Boards (i.e. membership of ANZGHL and ANZBGL Boards/Commiees). Currently the fee structure applies irrespective of whether NEDs serve on one or more Boards. NEDs receive a fee for being a Director of the Board, and additional fees for either chairing, or being a member of a Board Commiee. The Chairman of the Board does not receive additional fees for serving on a Board Commiee. In seing Board and Commiee fees, the following are considered: general industry practice, ASX Corporate Governance Principles and Recommendations, the responsibilities and risks aached to the NED role, the time commitment expected of NEDs on Group and Company maers, and fees paid to NEDs of comparable companies. ANZ compares NED fees to a comparator group of Australian listed companies with a similar market capitalisation, with particular focus on the major financial services institutions. This is considered an appropriate group, given similarity in size and complexity, nature of work and time commitment by NEDs. To maintain NED independence and impartiality: • NED fees are not linked to the performance of the Group; and • NEDs are not eligible to participate in any of the Group’s variable remuneration arrangements. The current aggregate fee pool for NEDs of $4m was approved by shareholders at the 2012 AGM. The annual total of NEDs’ fees, including superannuation contributions, is within this agreed limit. This table shows the NED fee policy structure for 2025, which remains unchanged from 2024. NED fee policy structure – 2025 Chair fee Member fee Board 1,2 $850,000 $245,000 Audit Commiee $68,000 $34,000 Risk Commiee $68,000 $34,000 People & Culture Commiee $68,000 $34,000 Digital Business & Technology Commiee $68,000 $34,000 Ethics, Environment, Social & Governance Commiee $68,000 $34,000 1. Including superannuation. 2. The Chairman of the Board does not receive additional fees for serving on a Board Committee. The Chairman of the Board and NEDs do not receive a fee for serving on the Nomination and Board Operations Committee. NED minimum shareholding requirement (MSR) We expect our NEDs to hold ANZ issued securities. NEDs are required: • to accumulate ANZ issued securities – over a five-year period from their appointment to the value of: – 100% of the NED member fee for Directors; – 100% of the Chairman fee for the Chairman; and • to maintain this shareholding while they are a Director of ANZ. Based on the ANZ share price as at 30 September 2025, all NEDs who have served five years met their holding requirement. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 61 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### 9.2 2025 Statutory remuneration – NEDs The following table outlines the statutory remuneration of NEDs 1 disclosed in accordance with Australian Accounting Standards. 1. In addition to the fees shown below the following NEDs were awarded fees relating to other ANZ entities: • Paul O’Sullivan awarded $97,893 in 2025 for his role as Former Chair of Norfina Limited (Suncorp Bank). • John Cincotta awarded $247,275 in 2025 ($35,743 in 2024) for his role as NED of Norfina Limited (Suncorp Bank). • Richard Gibb awarded $84,822 in 2025 for his role as Chair of Norfina Limited (Suncorp Bank). • Christine O’Reilly awarded $247,275 in 2025 ($35,743 in 2024) for her role as NED of Norfina Limited (Suncorp Bank). • Scott St John awarded NZD 385,000 in 2025 (NZD 324,342 in 2024) for his roles as Chair and NED of ANZ Bank New Zealand Limited. • Jane Halton awarded $241,890 in 2025 ($60,984 in 2024) for her role as Former Chair of Norfina Limited (Suncorp Bank). 2025 Statutory remuneration – NEDs Short-term NED benefits Post- employment Financial year Fees 1 $ Non monetary benefits 2 $ Super contributions 1 $ Total remuneration 3 $ Current Non-Executive Directors P O’Sullivan 2025 820,051 - 29,949 850,000 2024 821,968 - 28,032 850,000 J Cincoa 4 2025 283,051 - 29,949 313,000 2024 177,802 184 18,253 196,239 A Gerry 4 2025 102,703 - 11,169 113,872 R Gibb 4 2025 351,051 - 29,949 381,000 2024 206,291 184 18,253 224,728 G Hodges 2025 283,051 - 29,949 313,000 2024 284,968 184 28,032 313,184 H Kramer 2025 363,347 - 29,949 393,296 2024 328,577 184 28,032 356,793 C O'Reilly 2025 351,051 - 29,949 381,000 2024 362,484 - 28,032 390,516 J Smith 2025 351,051 - 29,949 381,000 2024 347,332 - 28,032 375,364 S St John 4 2025 314,699 - 29,949 344,648 2024 146,879 - 14,800 161,679 Former Non-Executive Directors J Halton 4 2025 175,534 - 14,966 190,500 2024 358,281 - 28,032 386,313 Total of all Non-Executive Directors 2025 3,395,589 - 265,727 3,661,316 2024 3,034,582 736 219,498 3,254,816 1. Year-on-year differences in fees relate to Committee membership changes and also changes to the superannuation Maximum Contribution Base. 2. Non monetary benefits generally consist of company-funded benefits (and the associated Fringe Benefits Tax) such as welcome gifts from the ANZ NZ Board. 3. Long-term benefits and share-based payments do not apply for the NEDs. 4. Remuneration based on time as a NED in either 2024 (J Cincotta, R Gibb and S St John) or 2025 (A Gerry and J Halton). 62 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() #### 9.2 2025 Statutory remuneration – NEDs The following table outlines the statutory remuneration of NEDs 1 disclosed in accordance with Australian Accounting Standards. 1. In addition to the fees shown below the following NEDs were awarded fees relating to other ANZ entities: • Paul O’Sullivan awarded $97,893 in 2025 for his role as Former Chair of Norfina Limited (Suncorp Bank). • John Cincotta awarded $247,275 in 2025 ($35,743 in 2024) for his role as NED of Norfina Limited (Suncorp Bank). • Richard Gibb awarded $84,822 in 2025 for his role as Chair of Norfina Limited (Suncorp Bank). • Christine O’Reilly awarded $247,275 in 2025 ($35,743 in 2024) for her role as NED of Norfina Limited (Suncorp Bank). • Scott St John awarded NZD 385,000 in 2025 (NZD 324,342 in 2024) for his roles as Chair and NED of ANZ Bank New Zealand Limited. • Jane Halton awarded $241,890 in 2025 ($60,984 in 2024) for her role as Former Chair of Norfina Limited (Suncorp Bank). 2025 Statutory remuneration – NEDs Short-term NED benefits Post- employment Financial year Fees 1 $ Non monetary benefits 2 $ Super contributions 1 $ Total remuneration 3 $ Current Non-Executive Directors P O’Sullivan 2025 820,051 - 29,949 850,000 2024 821,968 - 28,032 850,000 J Cincoa 4 2025 283,051 - 29,949 313,000 2024 177,802 184 18,253 196,239 A Gerry 4 2025 102,703 - 11,169 113,872 R Gibb 4 2025 351,051 - 29,949 381,000 2024 206,291 184 18,253 224,728 G Hodges 2025 283,051 - 29,949 313,000 2024 284,968 184 28,032 313,184 H Kramer 2025 363,347 - 29,949 393,296 2024 328,577 184 28,032 356,793 C O'Reilly 2025 351,051 - 29,949 381,000 2024 362,484 - 28,032 390,516 J Smith 2025 351,051 - 29,949 381,000 2024 347,332 - 28,032 375,364 S St John 4 2025 314,699 - 29,949 344,648 2024 146,879 - 14,800 161,679 Former Non-Executive Directors J Halton 4 2025 175,534 - 14,966 190,500 2024 358,281 - 28,032 386,313 Total of all Non-Executive Directors 2025 3,395,589 - 265,727 3,661,316 2024 3,034,582 736 219,498 3,254,816 1. Year-on-year differences in fees relate to Committee membership changes and also changes to the superannuation Maximum Contribution Base. 2. Non monetary benefits generally consist of company-funded benefits (and the associated Fringe Benefits Tax) such as welcome gifts from the ANZ NZ Board. 3. Long-term benefits and share-based payments do not apply for the NEDs. 4. Remuneration based on time as a NED in either 2024 (J Cincotta, R Gibb and S St John) or 2025 (A Gerry and J Halton). 82 Australia and New Zealand Banking Group Limited 2025 Annual Report Type of equity 1 Number granted 2 Equity fair value (for 2025 grants only) $ Grant date First date exercisable Date of expiry Vested Lapsed/ Forfeited Exercised/Sold Vested and exercis- able as at 30 Sep 2025 4 Unexer- cisable as at 30 Sep 2025 5 Malus 6 Name Number % Value 3 $ Number % Value 3 $ Number % Value 3 $ Current CEO and Current Disclosed Executives N Matos 7 M Bullock 7 E Clements DS 2,285 22-Nov-21 22-Nov-24 - 2,285 100 73,890 - - - - - - 2,285 - - DS 3,032 22-Nov-22 22-Nov-24 - 3,032 100 98,045 - - - - - - 3,032 - - DS 4,102 22-Nov-23 22-Nov-24 - 4,102 100 132,646 - - - - - - 4,102 - - DS 3,928 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 3,928 - DS 3,927 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 3,927 - RR 8,451 25.80 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 8,451 - RR 8,451 24.39 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 8,451 - PR 7,0 42 13.32 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 7, 042 - PR 2,347 8.85 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 2,347 - PR 7,0 42 12.01 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 7,042 - PR 2,347 8.74 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 2,347 - K Corbally DS 3,720 7-Dec-20 22-Nov-24 - 3,720 100 120,293 - - - (3,720) 100 120,293 - - - DS 4,431 22-Nov-21 22-Nov-24 - 4,431 100 143,284 - - - (4,431) 100 143,284 - - - DS 9,590 1-Oct-22 22-Nov-24 - 9,590 100 310,110 - - - (9,590) 100 310,110 - - - DS 10,511 1-Oct-23 22-Nov-24 - 10,511 100 339,892 - - - (10,511) 100 339,892 - - - DS 5,106 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 5,106 - DS 5,106 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 5,106 - DSR 20,118 7-Dec-20 22-Nov-24 22-Nov-24 20,118 100 650,552 - - - (20,118) 100 650,552 - - - RR 19,148 25.80 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 19,148 - RR 19,148 24.39 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 19,148 - #### 10.1 Equity holdings For the equity granted to the former CEO and Disclosed Executives in November/December 2024, all deferred shares were purchased on the market. For deferred share rights and performance rights, which vested to the former CEO and Disclosed Executives in November/December 2024, where the rights were not able to be satisfied through the reallocation of previously forfeited shares they were satisfied through the on market purchase of shares. 10.1.1 CEO and Disclosed Executives’ equity granted, vested, exercised/sold and lapsed/forfeited The table below sets out details of deferred shares and rights that we granted to the CEO and Disclosed Executives: • during the 2025 year, relating to 2024 Performance and Remuneration Review outcomes; or • in prior years and that then vested, were exercised/sold or which lapsed/were forfeited during the 2025 year. For the former CEO and former Disclosed Executives, this table also includes all employee equity that remained on foot at the date of cessation of employment and the application of malus. Equity granted, vested, exercised/sold and lapsed/forfeited – CEO and Disclosed Executives 10. Other statutory information 10.1 Equity holdings 10.2 Loans 10.3 Other transactions Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 63 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Type of equity 1 Number granted 2 Equity fair value (for 2025 grants only) $ Grant date First date exercisable Date of expiry Vested Lapsed/ Forfeited Exercised/Sold Vested and exercis- able as at 30 Sep 2025 4 Unexer- cisable as at 30 Sep 2025 5 Malus 6 Name Number % Value 3 $ Number % Value 3 $ Number % Value 3 $ F Faruqui DS 5,241 22-Nov-21 22-Nov-24 - 5,241 100 169,477 - - - (5,241) 100 162,666 - - - DS 12,949 1-Oct-22 22-Nov-24 - 12,949 100 418,729 - - - (12,949) 100 398,006 - - - DS 11,844 1- Oct-23 22-Nov-24 - 11,844 100 382,997 - - - (11,844) 100 364,042 - - - DS 7,242 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 7, 242 - DS 7,24 2 30.18 1- Oct-24 22-Nov-26 - - - - - - - - - - - 7, 242 - DSR 1,904 7-Dec-20 22-Nov-24 22-Nov-24 1,904 100 61,569 - - - (1,904) 100 61,569 - - - RR 12,676 25.80 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 12,676 - RR 12,676 24.39 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 12,676 - PR 25,534 7-Dec-20 22-Nov-24 22-Nov-26 - - - (25,534) 100 (825,688) - - - - - - PR 8,511 7-Dec-20 22-Nov-24 22-Nov-26 8,511 100 275,219 - - - (5,000) 59 153,682 3,511 - - PR 10,564 13.32 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 10,564 - PR 3,521 8.85 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 3,521 - PR 10,564 12.01 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 10,564 - PR 3,521 8.74 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 3,521 - C Morgan DS 5,082 20-Aug-23 20-Aug-25 - 5,082 100 170,178 - - - - - - 5,082 - - DS 4,935 1-Oct-23 22-Nov-24 - 4,935 100 159,582 - - - - - - 4,935 - - DS 5,319 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 5,319 - DS 5,319 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 5,319 - RR 11,434 25.80 22-Nov-24 22- Nov-28 22-Nov-30 - - - - - - - - - - 11,434 - RR 11,434 24.39 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 11,434 - PR 9,528 13.32 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 9,528 - PR 3,176 8.85 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 3,176 - PR 9,528 12.01 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 9,528 - PR 3,176 8.74 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 3,176 - B Rush 7 A Watson DS 1,451 7-Dec-20 22-Nov-24 - 1,451 100 46,921 - - - - - - 1,451 - - DS 2,085 22-Nov-21 22-Nov-23 - - - - - - - (2,085) 100 63,054 - - - DS 4,961 22-Nov-21 22-Nov-24 - 4,961 100 160,423 - - - - - - 4,961 - - DS 9,162 1-Oct-22 22-Nov-23 - - - - - - - (3,915) 43 118,396 5,247 - - DS 9,162 1-Oct-22 22-Nov-24 - 9,162 100 296,270 - - - - - - 9,162 - - DS 9,328 1-Oct-23 22-Nov-24 - 9,328 100 301,638 - - - - - - 9,328 - - DS 6,527 30.18 1- Oct-24 22-Nov-25 - - - - - - - - - - - 6,527 - DS 6,527 30.18 1- Oct-24 22-Nov-26 - - - - - - - - - - - 6,527 - RR 11,231 25.80 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 11,231 - RR 11,231 24.39 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 11,231 - PR 23,542 7-Dec-20 22-Nov-24 22-Nov-26 - - - (23,542) 100 (761,273) - - - - - - PR 7,847 7-Dec-20 22-Nov-24 22-Nov-26 7,847 100 253,747 - - - ( 7,847) 100 250,206 - - - PR 9,359 13.32 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 9,359 - PR 3,119 8.85 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 3,119 - PR 9,359 12.01 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 9,359 - PR 3,119 8.74 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 3,119 - M Whelan DS 1,574 7-Dec-20 22-Nov-24 - 1,574 100 50,898 - - - (1,574) 100 50,188 - - - DS 5,849 22-Nov-21 22-Nov-24 - 5,849 100 189,138 - - - (5,849) 100 186,499 - - - DS 11,595 1-Oct-22 22-Nov-24 - 11,595 100 374,945 - - - (11,595) 100 369,714 - - - DS 14,410 1- Oct-23 22-Nov-24 - 14,410 100 465,973 - - - (14,410) 100 459,471 - - - DS 4,869 30.18 1- Oct-24 22-Nov-25 - - - - - - - - - - - 4,869 - DS 4,869 30.18 1- Oct-24 22-Nov-26 - - - - - - - - - - - 4,869 - RR 14,914 25.80 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 14,914 - 64 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Type of equity 1 Number granted 2 Equity fair value (for 2025 grants only) $ Grant date First date exercisable Date of expiry Vested Lapsed/ Forfeited Exercised/Sold Vested and exercis- able as at 30 Sep 2025 4 Unexer- cisable as at 30 Sep 2025 5 Malus 6 Name Number % Value 3 $ Number % Value 3 $ Number % Value 3 $ RR 14,914 24.39 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 14,914 - PR 25,534 7-Dec-20 22-Nov-24 22-Nov-26 - - - (25,534) 100 (825,688) - - - - - - PR 8,511 7-Dec-20 22-Nov-24 22-Nov-26 8,511 100 275,219 - - - (8,511) 100 271,378 - - - PR 12,428 13.32 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 12,428 - PR 4,142 8.85 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 4,142 - PR 12,428 12.01 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 12,428 - PR 4,142 8.74 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 4,142 - Former CEO and Former Disclosed Executives S Elliott 8 DS 2,710 7-Dec-20 22-Nov-24 - 2,710 100 87,633 - - - (2,710) 100 75,896 - - - DS 7,220 22-Nov-21 22-Nov-24 - 7,220 100 233,472 - - - ( 7, 2 20 ) 100 202,202 - - - DS 3,610 22-Nov-21 22-Nov-25 - - - - - - - - - - - 3,610 (3,610) DS 20,156 1-Oct-22 22-Nov-24 - 20,156 100 651,781 - - - (20,156) 100 564,485 - - - DS 19,740 1-Oct-23 22-Nov-24 - 19,740 100 638,328 - - - (19,740) 100 552,834 - - - DS 19,739 1-Oct-23 22-Nov-25 - - - - - - - - - - - 19,739 (19,739) DS 3,158 1- Oct-23 22-Nov-26 - - - - - - - - - - - 3,158 (3,158) DS 3,158 1- Oct-23 22-Nov-27 - - - - - - - - - - - 3,158 - DS 3,158 1- Oct-23 22-Nov-28 - - - - - - - - - - - 3,158 - DS 10,638 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 10,638 (10,638) DS 10,638 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 10,638 (10,638) RR 24,138 15-Dec-22 15-Dec-26 15-Dec-28 - - - - - - - - - - 24,138 (24,138) RR 24,138 15-Dec-22 15-Dec-27 15-Dec-29 - - - - - - - - - - 24,138 - RR 24,869 15-Dec-22 15-Dec-28 15-Dec-30 - - - - - - - - - - 24,869 - RR 21,984 21-Dec-23 21-Dec-27 21-Dec-29 - - - - - - - - - - 21,984 - RR 21,984 21-Dec-23 21-Dec-28 21-Dec-30 - - - - - - - - - - 21,984 - RR 22,651 21-Dec-23 21-Dec-29 21-Dec-31 - - - - - - - - - - 22,651 - PR 119,481 16-Dec-20 16-Dec-24 16-Dec-26 - - - (119,481) 100 (3,488,272) - - - - - - PR 39,827 16-Dec-20 16-Dec-24 16-Dec-26 39,827 100 1,162,757 - - - (39,827) 100 1,115,387 - - - PR 94,765 16-Dec-21 16-Dec-25 16-Dec-27 - - - - - - - - - - 94,765 (94,765) PR 31,588 16-Dec-21 16-Dec-25 16-Dec-27 - - - - - - - - - - 31,588 (31,588) PR 18,103 15-Dec-22 15-Dec-26 15-Dec-28 - - - - - - - - - - 18,103 (18,103) PR 6,034 15-Dec-22 15-Dec-26 15-Dec-28 - - - - - - - - - - 6,034 (6,034) PR 18,103 15-Dec-22 15-Dec-27 15-Dec-29 - - - - - - - - - - 18,103 - PR 6,034 15-Dec-22 15-Dec-27 15-Dec-29 - - - - - - - - - - 6,034 - PR 18,652 15-Dec-22 15-Dec-28 15-Dec-30 - - - - - - - - - - 18,652 - PR 6,217 15-Dec-22 15-Dec-28 15-Dec-30 - - - - - - - - - - 6,217 - PR 16,488 21-Dec-23 21-Dec-27 21-Dec-29 - - - - - - - - - - 16,488 - PR 5,496 21-Dec-23 21-Dec-27 21-Dec-29 - - - - - - - - - - 5,496 - PR 16,488 21-Dec-23 21-Dec-28 21-Dec-30 - - - - - - - - - - 16,488 - PR 5,496 21-Dec-23 21-Dec-28 21-Dec-30 - - - - - - - - - - 5,496 - PR 16,988 21-Dec-23 21-Dec-29 21-Dec-31 - - - - - - - - - - 16,988 - PR 5,662 21-Dec-23 21-Dec-29 21-Dec-31 - - - - - - - - - - 5,662 - M Carnegie 8 DS 1,980 22-Nov-19 22-Nov-23 - - - - - - - (1,980) 100 59,554 - - - DS 116 7-Dec-20 22-Nov-22 - - - - - - - (116) 100 3,489 - - - DS 3,549 7-Dec-20 22-Nov-23 - - - - - - - (3,549) 100 106,747 - - - DS 1,774 7-Dec-20 22-Nov-24 - 1,774 100 57,365 - - - (1,774) 100 53,358 - - - DS 8,220 22-Nov-21 22-Nov-22 - - - - - - - (8,220) 100 247,241 - - - DS 6,165 22-Nov-21 22-Nov-23 - - - - - - - (6,165) 100 185,431 - - - DS 4,110 22-Nov-21 22-Nov-24 - 4,110 100 132,904 - - - (4,110) 100 123,621 - - - Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 65 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Type of equity 1 Number granted 2 Equity fair value (for 2025 grants only) $ Grant date First date exercisable Date of expiry Vested Lapsed/ Forfeited Exercised/Sold Vested and exercis- able as at 30 Sep 2025 4 Unexer- cisable as at 30 Sep 2025 5 Malus 6 Name Number % Value 3 $ Number % Value 3 $ Number % Value 3 $ DS 2,055 22-Nov-21 22-Nov-25 - - - - - - - - - - - 2,055 (2,055) DS 9,970 1-Oct-22 22-Nov-23 - - - - - - - (9,970) 100 299,878 - - - DS 9,969 1-Oct-22 22-Nov-24 - 9,969 100 322,366 - - - (9,969) 100 299,848 - - - DS 10,857 1-Oct-23 22-Nov-24 - 10,857 100 351,081 - - - (10,857) 100 326,557 - - - DS 10,856 1- Oct-23 22-Nov-25 - - - - - - - - - - - 10,856 (10,856) DS 7,079 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 7,079 (7,079) DS 7,078 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 7,078 (7,078) RR 18,286 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 18,286 (18,286) RR 18,286 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 18,286 - RR 17,321 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 17,321 - RR 17,321 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 17,321 - RR 12,925 25.80 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 12,925 - RR 12,925 24.39 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 12,925 - PR 28,784 7-Dec-20 22-Nov-24 1-Nov-25 - - - (28,784) 100 (930,782) - - - - - - PR 9,594 7-Dec-20 22-Nov-24 1-Nov-25 9,594 100 310,239 - - - - - - 9,594 - - PR 31,759 22-Nov-21 22-Nov-25 22-Feb-26 - - - - - - - - - - 31,759 (31,759) PR 10,586 22-Nov-21 22-Nov-25 22-Feb-26 - - - - - - - - - - 10,586 (10,586) PR 13,715 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 13,715 - PR 4,571 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 4, 571 - PR 13,715 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 13,715 - PR 4,571 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 4,571 - PR 12,991 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 12,991 - PR 4,330 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 4,330 - PR 12,991 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 12,991 - PR 4,330 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 4,330 - PR 10,771 13.32 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 10,771 - PR 3,590 8.85 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 3,590 - PR 10,771 12.01 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 10,771 - PR 3,590 8.74 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 3,590 - G Florian 8 DS 1,609 7-Dec-20 22-Nov-24 - 1,609 100 52,030 - - - (1,609) 100 46,744 - - - DS 4,884 22-Nov-21 22-Nov-24 - 4,884 100 157,933 - - - (4,884) 100 141,888 - - - DS 2,442 22-Nov-21 22-Nov-25 - - - - - - - - - - - 2,442 - DS 9,590 1-Oct-22 22-Nov-24 - 9,590 100 310,110 - - - (9,590) 100 278,604 - - - DS 9,820 1-Oct-23 22-Nov-24 - 9,820 100 317,547 - - - (9,817) 100 285,199 3 - - DS 9,820 1-Oct-23 22-Nov-25 - - - - - - - - - - - 9,820 - DS 7,079 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 7,079 (7,079) DS 7,078 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 7,078 - RR 16,823 22-Nov-22 22-Nov-26 22-Nov-28 - - - - - - - - - - 16,823 - RR 16,823 22-Nov-22 22-Nov-27 22-Nov-29 - - - - - - - - - - 16,823 - RR 16,821 22-Nov-23 22-Nov-27 22-Nov-29 - - - - - - - - - - 16,821 - RR 16,821 22-Nov-23 22-Nov-28 22-Nov-30 - - - - - - - - - - 16,821 - RR 12,552 25.80 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 12 ,552 - RR 12,552 24.39 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 12,552 - PR 26,115 7-Dec-20 22-Nov-24 22-Nov-26 - - - (26,115) 100 (844,476) - - - - - - PR 8,705 7-Dec-20 22-Nov-24 22-Nov-26 8,705 100 281,492 - - - (8,705) 100 257,234 - - - PR 37,74 3 22-Nov-21 22-Nov-25 22-Nov-27 - - - - - - - - - - 37,743 - PR 12,581 22-Nov-21 22-Nov-25 22-Nov-27 - - - - - - - - - - 12,581 - 66 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Type of equity 1 Number granted 2 Equity fair value (for 2025 grants only) $ Grant date First date exercisable Date of expiry Vested Lapsed/ Forfeited Exercised/Sold Vested and exercis- able as at 30 Sep 2025 4 Unexer- cisable as at 30 Sep 2025 5 Malus 6 Name Number % Value 3 $ Number % Value 3 $ Number % Value 3 $ DS 2,055 22-Nov-21 22-Nov-25 - - - - - - - - - - - 2,055 (2,055) DS 9,970 1-Oct-22 22-Nov-23 - - - - - - - (9,970) 100 299,878 - - - DS 9,969 1-Oct-22 22-Nov-24 - 9,969 100 322,366 - - - (9,969) 100 299,848 - - - DS 10,857 1-Oct-23 22-Nov-24 - 10,857 100 351,081 - - - (10,857) 100 326,557 - - - DS 10,856 1- Oct-23 22-Nov-25 - - - - - - - - - - - 10,856 (10,856) DS 7,079 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 7,079 (7,079) DS 7,078 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 7,078 (7,078) RR 18,286 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 18,286 (18,286) RR 18,286 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 18,286 - RR 17,321 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 17,321 - RR 17,321 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 17,321 - RR 12,925 25.80 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 12,925 - RR 12,925 24.39 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 12,925 - PR 28,784 7-Dec-20 22-Nov-24 1-Nov-25 - - - (28,784) 100 (930,782) - - - - - - PR 9,594 7-Dec-20 22-Nov-24 1-Nov-25 9,594 100 310,239 - - - - - - 9,594 - - PR 31,759 22-Nov-21 22-Nov-25 22-Feb-26 - - - - - - - - - - 31,759 (31,759) PR 10,586 22-Nov-21 22-Nov-25 22-Feb-26 - - - - - - - - - - 10,586 (10,586) PR 13,715 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 13,715 - PR 4,571 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 4 ,571 - PR 13,715 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 13,715 - PR 4,571 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 4,571 - PR 12,991 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 12,991 - PR 4,330 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 4,330 - PR 12,991 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 12,991 - PR 4,330 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 4,330 - PR 10,771 13.32 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 10,771 - PR 3,590 8.85 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 3,590 - PR 10,771 12.01 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 10,771 - PR 3,590 8.74 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 3,590 - G Florian 8 DS 1,609 7-Dec-20 22-Nov-24 - 1,609 100 52,030 - - - (1,609) 100 46,744 - - - DS 4,884 22-Nov-21 22-Nov-24 - 4,884 100 157,933 - - - (4,884) 100 141,888 - - - DS 2,442 22-Nov-21 22-Nov-25 - - - - - - - - - - - 2,442 - DS 9,590 1-Oct-22 22-Nov-24 - 9,590 100 310,110 - - - (9,590) 100 278,604 - - - DS 9,820 1-Oct-23 22-Nov-24 - 9,820 100 317,547 - - - (9,817) 100 285,199 3 - - DS 9,820 1-Oct-23 22-Nov-25 - - - - - - - - - - - 9,820 - DS 7,079 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 7,079 (7,079) DS 7,078 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 7,078 - RR 16,823 22-Nov-22 22-Nov-26 22-Nov-28 - - - - - - - - - - 16,823 - RR 16,823 22-Nov-22 22-Nov-27 22-Nov-29 - - - - - - - - - - 16,823 - RR 16,821 22-Nov-23 22-Nov-27 22-Nov-29 - - - - - - - - - - 16,821 - RR 16,821 22-Nov-23 22-Nov-28 22-Nov-30 - - - - - - - - - - 16,821 - RR 12,552 25.80 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 1 2,552 - RR 12,552 24.39 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 12,552 - PR 26,115 7-Dec-20 22-Nov-24 22-Nov-26 - - - (26,115) 100 (844,476) - - - - - - PR 8,705 7-Dec-20 22-Nov-24 22-Nov-26 8,705 100 281,492 - - - (8,705) 100 257,234 - - - PR 37,74 3 22-Nov-21 22-Nov-25 22-Nov-27 - - - - - - - - - - 37,743 - PR 12,581 22-Nov-21 22-Nov-25 22-Nov-27 - - - - - - - - - - 12,581 - 86 Australia and New Zealand Banking Group Limited 2025 Annual Report 1. Types of equity: Deferred shares (DS), deferred share rights (DSR), restricted rights (RR) and performance rights (PR). 2. For the purpose of the five highest paid executive disclosures, Executives are defined as Disclosed Executives or other members of the ExCo. For the 2025 financial year the five highest paid executives include five Disclosed Executives. Rights granted to Disclosed Executives as remuneration in 2025 are included in the table. No rights have been granted to the CEO, Disclosed Executives or the five highest paid executives since the end of 2025 up to the Directors’ Report sign-off date. 3. The point in time value of deferred shares and or rights is based on the one day VWAP of ANZGHL shares traded on the ASX on the date of vesting, lapsing/forfeiture or exercising/sale/ transfer out of trust, multiplied by the number of deferred shares and/ or rights. The exercise price for all rights is $0.00. No terms or conditions of grant of the share-based payment transactions have been altered or modified during the reporting period. 4. The number vested and exercisable is the number of shares, and/or rights that remain vested as at 30 September 2025 (or the date ceased as a KMP). No shares and/or rights were vested and unexercisable. 5. Performance rights granted in prior years (by grant date) that remained unexerciseable at 30 September 2025 (or date ceased as a KMP) include: (see table on the right). 6. Malus reflects the downward adjustment of unvested deferred variable remuneration. 7. Equity transactions disclosed from date commenced as a KMP. There were no disclosable transactions for N Matos, M Bullock or B Rush. 8. Equity transactions disclosed up to date ceased as a KMP. Nov-21 Nov-22 Nov-23 Nov-24 N Matos - - - - M Bullock - - - - E Clements - - 21,316 18,778 K Corbally - - - - F Faruqui 54,006 36,572 33,976 28,170 C Morgan - 18,421 30,244 25,408 B Rush - - - - A Watson 51,117 32,442 30,098 24,956 M Whelan 60,266 42,716 39,970 33,140 S Elliott 126,353 73,143 66,618 - M Carnegie 42,345 36,572 34,642 28,722 G Florian 50,324 33,644 33,642 27,89 2 A Strong - 21,944 22,650 19,884 Performance rights historically granted to S Elliott were approved by shareholders at the relevant ANZ AGMs in accordance with ASX Listing Rule 10.14. Type of equity 1 Number granted 2 Equity fair value (for 2025 grants only) $ Grant date First date exercisable Date of expiry Vested Lapsed/ Forfeited Exercised/Sold Vested and exercis- able as at 30 Sep 2025 4 Unexer- cisable as at 30 Sep 2025 5 Malus 6 Name Number % Value 3 $ Number % Value 3 $ Number % Value 3 $ PR 12,617 22-Nov-22 22-Nov-26 22-Nov-28 - - - - - - - - - - 12,617 - PR 4,205 22-Nov-22 22-Nov-26 22-Nov-28 - - - - - - - - - - 4,205 - PR 12,617 22-Nov-22 22-Nov-27 22-Nov-29 - - - - - - - - - - 12,617 - PR 4,205 22-Nov-22 22-Nov-27 22-Nov-29 - - - - - - - - - - 4,205 - PR 12,616 22-Nov-23 22-Nov-27 22-Nov-29 - - - - - - - - - - 12,616 - PR 4,205 22-Nov-23 22-Nov-27 22-Nov-29 - - - - - - - - - - 4,205 - PR 12,616 22-Nov-23 22-Nov-28 22-Nov-30 - - - - - - - - - - 12,616 - PR 4,205 22-Nov-23 22-Nov-28 22-Nov-30 - - - - - - - - - - 4,205 - PR 10,460 13.32 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 10,460 - PR 3,486 8.85 22-Nov-24 22-Nov-28 22-Nov-30 - - - - - - - - - - 3,486 - PR 10,460 12.01 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 10,460 - PR 3,486 8.74 22-Nov-24 22-Nov-29 22-Nov-31 - - - - - - - - - - 3,486 - A Strong 8 DS 4,187 22-Nov-21 22-Nov-24 - 4,187 100 135,394 - - - (4,187) 100 117,260 - - - DS 6,132 22-Nov-22 22-Nov-24 - 6,132 100 198,289 - - - (6,132) 100 171,732 - - - DS 6,132 22-Nov-22 22-Nov-25 - - - - - - - - - - - 6,132 - DS 6,761 1-Oct-23 22-Nov-24 - 6,761 100 218,629 - - - (6,761) 100 189,347 - - - DS 6,760 1-Oct-23 22-Nov-25 - - - - - - - - - - - 6,760 - DS 4,746 30.18 1-Oct-24 22-Nov-25 - - - - - - - - - - - 4,746 (4,746) DS 4,746 30.18 1-Oct-24 22-Nov-26 - - - - - - - - - - - 4,74 6 - RR 10,972 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 10,972 - RR 10,972 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 10,972 - RR 11,325 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 11,325 - RR 11,325 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 11,325 - RR 8,948 25.80 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 8,948 - RR 8,948 24.39 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 8,948 - PR 8,229 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 8,229 - PR 2,743 22-Nov-22 22-Nov-26 22-Feb-27 - - - - - - - - - - 2,74 3 - PR 8,229 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 8,229 - PR 2,743 22-Nov-22 22-Nov-27 22-Feb-28 - - - - - - - - - - 2,74 3 - PR 8,494 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 8,494 - PR 2,831 22-Nov-23 22-Nov-27 22-Feb-28 - - - - - - - - - - 2,831 - PR 8,494 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 8,494 - PR 2,831 22-Nov-23 22-Nov-28 22-Feb-29 - - - - - - - - - - 2,831 - PR 7,457 13.32 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 7,457 - PR 2,485 8.85 22-Nov-24 22-Nov-28 22-Feb-29 - - - - - - - - - - 2,485 - PR 7,457 12.01 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 7,457 - PR 2,485 8.74 22-Nov-24 22-Nov-29 22-Feb-30 - - - - - - - - - - 2,485 - Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 67 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 10.1.2 NED, CEO and Disclosed Executives’ equity holdings The table below sets out details of equity held directly, indirectly or beneficially by each NED, the current and former CEOs and the current and former Disclosed Executives, including their related parties. Equity holdings – NED, CEO and Disclosed Executives Name Type of equity Opening balance at 1 Oct 2024 Granted during the year as remuneration 1 Received during the year on exercise of options or rights Resulting from any other changes during the year 2 Closing balance at 30 Sep 2025 3,4 Current Non-Executive Directors P O’Sullivan Ordinary shares 4,350 - - - 4,350 Capital notes 7 9,250 - - - 9,250 J Cincoa A Gerry 5 R Gibb Ordinary shares 1,032 - - 1,000 2,032 Capital notes 7 194 - - 146 340 Capital notes 8 196 - - 145 341 G Hodges Ordinary shares 184,401 - - - 184,401 H Kramer Ordinary shares 5,828 - - 1,765 7,593 C O'Reilly Ordinary shares 6,400 - - - 6,400 J Smith Ordinary shares 2,779 - - - 2,779 S St John Ordinary shares 3,000 - - 500 3,500 Former Non-Executive Directors J Halton 6 Ordinary shares 10,058 - - - 10,058 Current CEO and Current Disclosed Executives N Matos 5 M Bullock 5 Employee Share Oer 85 - - - 85 Deferred share rights 18,013 - - - 18,013 E Clements Deferred shares 30,081 7,855 - - 37,936 Ordinary shares 2,560 - - 1,942 4,502 Restricted rights 21,318 16,902 - - 38,220 Performance rights 21,316 18,778 - - 40,094 K Corbally Deferred shares 43,194 10,212 - (28,252) 25,154 Ordinary shares - - 20,118 (19,395) 723 Capital notes 6 1,400 - - - 1,400 Deferred share rights 42,948 - (20,118) - 22,830 Restricted rights 105,504 38,296 - - 143,800 F Faruqui Deferred shares 44,497 14,484 - (30,034) 28,947 Ordinary shares 130,152 - 1,545 (44,848) 86,849 Deferred share rights 1,904 - (1,904) - - Restricted rights 70,548 25,352 - - 95,900 Performance rights 158,599 28,170 (5,000) (25,534) 156,235 C Morgan Deferred shares 23,058 10,638 - - 33,696 Ordinary shares 1,222 - - 1,629 2,851 Restricted rights 48,666 22,868 - - 71,534 Performance rights 48,665 25,408 - - 74,073 B Rush 5 Deferred shares 2,225 - - - 2,225 Ordinary shares 63 - - - 63 Restricted rights 23,566 - - - 23,566 68 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 10.1.2 NED, CEO and Disclosed Executives’ equity holdings The table below sets out details of equity held directly, indirectly or beneficially by each NED, the current and former CEOs and the current and former Disclosed Executives, including their related parties. Equity holdings – NED, CEO and Disclosed Executives Name Type of equity Opening balance at 1 Oct 2024 Granted during the year as remuneration 1 Received during the year on exercise of options or rights Resulting from any other changes during the year 2 Closing balance at 30 Sep 2025 3,4 Current Non-Executive Directors P O’Sullivan Ordinary shares 4,350 - - - 4,350 Capital notes 7 9,250 - - - 9,250 J Cincoa A Gerry 5 R Gib b Ordinary shares 1,032 - - 1,000 2,032 Capital notes 7 194 - - 146 340 Capital notes 8 196 - - 145 341 G Hodges Ordinary shares 184,401 - - - 184,401 H Kramer Ordinary shares 5,828 - - 1,765 7,593 C O'Reilly Ordinary shares 6,400 - - - 6,400 J Smith Ordinary shares 2,779 - - - 2,779 S St John Ordinary shares 3,000 - - 500 3,500 Former Non-Executive Directors J Halton 6 Ordinary shares 10,058 - - - 10,058 Current CEO and Current Disclosed Executives N Matos 5 M Bul lock 5 Employee Share Oer 85 - - - 85 Deferred share rights 18,013 - - - 18,013 E Clements Deferred shares 30, 081 7,855 - - 37,936 Ordinary shares 2,560 - - 1,942 4,502 Restricted rights 21,318 16,902 - - 38,220 Performance rights 21,316 18,778 - - 40,094 K Corbally Deferred shares 43,194 10,212 - (28,252) 25,154 Ordinary shares - - 20,118 (19,395) 723 Capital notes 6 1,400 - - - 1,400 Deferred share rights 42,948 - (20,118) - 22,830 Restricted rights 105,504 38,296 - - 143,800 F Faruqui Deferred shares 44,497 14,484 - (30,034) 28,947 Ordinary shares 130,152 - 1,545 (44,848) 86,849 Deferred share rights 1,904 - (1,904) - - Restricted rights 70,548 25,352 - - 95,900 Performance rights 158,599 28,170 (5,000) (25,534) 156,235 C Morgan Deferred shares 23,058 10,638 - - 33,696 Ordinary shares 1,222 - - 1,629 2,851 Restricted rights 48,666 22,868 - - 71,534 Performance rights 48,665 25,408 - - 74,073 B Rush 5 Deferred shares 2,225 - - - 2,225 Ordinary shares 63 - - - 63 Restricted rights 23,566 - - - 23,566 88 Australia and New Zealand Banking Group Limited 2025 Annual Report Name Type of equity Opening balance at 1 Oct 2024 Granted during the year as remuneration 1 Received during the year on exercise of options or rights Resulting from any other changes during the year 2 Closing balance at 30 Sep 2025 3,4 A Watson Deferred shares 47,957 13,054 - (6,000) 55,011 Ordinary shares 37,179 - 7,847 (11,168) 33,858 Restricted rights 62,542 22,462 - - 85,004 Performance rights 145,046 24,956 ( 7, 8 47) (23,542) 138,613 M Whelan Deferred shares 50,761 9,738 - (33,428) 27,071 Ordinary shares 5,376 - 8,511 (11,785) 2,102 Restricted rights 82,688 29,828 - - 112,516 Performance rights 176,997 33,140 (8,511) (25,534) 176,092 Former CEO and Former Disclosed Executives S Ellio 6 Deferred shares 82,649 21,276 - (49,826) 54,099 Ordinary shares 540,288 - - (202,058) 338,230 Restricted rights 139,764 - - - 139,764 Performance rights 425,422 - (39,827) (119,481) 266,114 M Carnegie 6 Deferred shares 69,621 14,157 - (56,710) 27,068 Ordinary shares 45,878 - - 60,933 106,811 Restricted rights 71,214 25,850 - - 97,064 Performance rights 151,937 28,722 - (28,784) 151,875 G Florian 6 Deferred shares 38,165 14,157 - (25,900) 26,422 Ordinary shares 30,117 - - (29,358) 759 Restricted rights 67,288 25,104 - - 92,392 Performance rights 152,430 27,892 (8,705) (26,115) 145,502 A Strong 6 Deferred shares 29,972 9,492 - (17,080) 22,384 Ordinary shares 2,338 - - (828) 1,510 Restricted rights 44,594 17,896 - - 62,490 Performance rights 44,594 19,884 - - 64,478 1. Details of options/rights granted as remuneration during 2025 are provided in the previous table. 2. Shares resulting from any other changes during the year include the net result of any shares purchased (including under the ANZ Share Purchase Plan), forfeited, sold or acquired under the Dividend Reinvestment Plan. 3. The following shares (included in the holdings above) were held on behalf of the NEDs, CEO and Disclosed Executives (i.e., indirect beneficially held shares) as at 30 September 2025 (or the date ceased as a KMP): P O'Sullivan - 0, J Cincotta - 0, A Gerry - 0, R Gibb - 2,713, G Hodges - 45,584, H Kramer - 7,593, C O'Reilly - 0, J Smith - 0, S St John - 3,500, J Halton - 0, N Matos - 0, M Bullock - 85, E Clements - 37,936, K Corbally - 26,554, F Faruqui - 28,947, C Morgan - 33,696, B Rush - 2,225, A Watson - 55,011, M Whelan - 27,071, S Elliott - 390,774, M Carnegie - 27,068, G Florian - 26,422, A Strong - 22,384. 4. As at 30 September 2025 (or the date ceased as a KMP) zero options/rights were vested and unexerciseable and zero rights were vested and exercisable except for the following: F Faruqui - 3,511, M Carnegie - 9,594. 5. Commencing balance is based on holdings as at the date of commencement as a KMP. 6. Concluding balance is based on holdings as at the date ceased as a KMP. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 69 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### 10.2 Loans 10.2.1 Overview When we lend to NEDs, the CEO or Disclosed Executives, we do so in the ordinary course of business and on normal commercial terms and conditions that are no more favourable than those given to other employees or customers – this includes the term of the loan, the security required and the interest rate. Details of the terms and conditions of lending products can be found on anz.com. No amounts have been wrien o during the period, or individual assessed allowance for expected credit losses raised in respect of these balances. Total loans to NEDs, the CEO and Disclosed Executives, including their related parties at 30 September 2025 (including those with balances less than $100,000) was $22,800,086 (2024: $14,063,818) with interest paid of $812,868 (2024: $1,077,834) during the period. 10.2.2 NED, CEO and Disclosed Executives’ loan transactions The table below sets out details of loans outstanding to NEDs, the CEO and Disclosed Executives including their related parties, if – at any time during the year – the individual’s aggregate loan balance exceeded $100,000. Loan transactions – NED, CEO and Disclosed Executives Names Opening balance at 1 Oct 2024¹ $ Closing balance at 30 Sep 2025 $ Interest paid and payable in the reporting period² $ Highest balance in the reporting period $ Current Non–Executive Directors G Hodges 1,246,738 1,139,656 45,606 1,938,447 H Kramer 3,532,890 3,466,670 205,452 3,688,312 S St John 1,145,916 1,099,692 69,607 1,155,224 Current Disclosed Executives E Clements 3 16,032 11,373,577 283,581 11,572,994 M Whelan 1,495,365 1 ,4 47,730 91,519 1,554,342 Former CEO and Former Disclosed Executives S Ellio 4 1,968,205 25,144 26,624 2,020,985 G Florian 4 2,223,982 1,806,854 9,894 2,247,722 A Strong 4 2,406,222 2,391,512 80,392 2,446,711 Total 14,035,350 22,750,835 812,675 26,624,737 1. Opening balances have been adjusted for new and leaving KMP. 2. Actual interest paid after considering offset accounts. The loan balance is shown gross, however the interest paid takes into account the impact of offset amounts. 3. Includes the business loan of a related party. 4. Closing balance is as at the date ceased in a KMP role. 70 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() #### 10.2 Loans 10.2.1 Overview When we lend to NEDs, the CEO or Disclosed Executives, we do so in the ordinary course of business and on normal commercial terms and conditions that are no more favourable than those given to other employees or customers – this includes the term of the loan, the security required and the interest rate. Details of the terms and conditions of lending products can be found on anz.com. No amounts have been wrien o during the period, or individual assessed allowance for expected credit losses raised in respect of these balances. Total loans to NEDs, the CEO and Disclosed Executives, including their related parties at 30 September 2025 (including those with balances less than $100,000) was $22,800,086 (2024: $14,063,818) with interest paid of $812,868 (2024: $1,077,834) during the period. 10.2.2 NED, CEO and Disclosed Executives’ loan transactions The table below sets out details of loans outstanding to NEDs, the CEO and Disclosed Executives including their related parties, if – at any time during the year – the individual’s aggregate loan balance exceeded $100,000. Loan transactions – NED, CEO and Disclosed Executives Names Opening balance at 1 Oct 2024¹ $ Closing balance at 30 Sep 2025 $ Interest paid and payable in the reporting period² $ Highest balance in the reporting period $ Current Non–Executive Directors G Hodges 1,246,738 1,139,656 45,606 1,938,447 H Kramer 3,532,890 3,466,670 205,452 3,688,312 S St John 1,145,916 1,099,692 69,607 1,155,224 Current Disclosed Executives E Clements 3 16,032 11,373,577 283,581 11,572,994 M Whelan 1,495,365 1 ,4 47,730 91,519 1,554,342 Former CEO and Former Disclosed Executives S Ellio 4 1,968,205 25,144 26,624 2,020,985 G Florian 4 2,223,982 1,806,854 9,894 2,247,722 A Strong 4 2,406,222 2,391,512 80,392 2,446,711 Total 14,035,350 22,750,835 812,675 26,624,737 1. Opening balances have been adjusted for new and leaving KMP. 2. Actual interest paid after considering offset accounts. The loan balance is shown gross, however the interest paid takes into account the impact of offset amounts. 3. Includes the business loan of a related party. 4. Closing balance is as at the date ceased in a KMP role. 90 Australia and New Zealand Banking Group Limited 2025 Annual Report #### 10.3 Other transactions Other transactions with NEDs, the CEO and Disclosed Executives, and their related parties included deposits and guarantees. Other transactions – NED, CEO and Disclosed Executives Opening balance at 1 Oct 2024 1 $ Closing balance at 30 Sep 2025 2,3 $ Total KMP deposits 26,045,876 30,947,056 Total KMP guarantees received - 253,463 1. Opening balance is at 1 October 2024 or the date of commencement as a KMP if part way through the year and it has been adjusted to take into account timing variances. 2. Closing balance is at 30 September 2025 or at the date ceased in a KMP role if part way through the year. 3. Interest received on deposits for 2025 was $757,649 (2024: $854,222). Other transactions with KMP and their related parties included amounts paid to the Group in respect of bank fees and charges. The Group has reimbursed KMP for the costs incurred for security and secretarial services associated with the performance of their duties. These transactions are conducted on normal commercial terms and conditions are no more favourable than those given to other employees or customers. Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 71 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary #### Directors’ report 1 72 Australia and New Zealand Banking Group Limited 2025 Annual Report ### Direc ### tors’ Report The Directors’ Report for the financial year ended 30 September 2025 has been prepared in accordance with the requirements of the Corporations Act 2001. The information below forms part of this Directors’ Report: • Principal activities on page 6; • Operating and financial review on pages 18 to 31; • Dividends on page 31; • Information on the Directors on pages 8 to 11; • Remuneration report on pages 32 to 71. #### Significant changes in #### state of affairs There have been no significant changes in the Group’s state of affairs. #### Events since the end of #### the financial year There have been no significant events from 30 September 2025 to the date of signing this report. #### Participation in political #### party activities We aim to assist the democratic process in Australia by attending, hosting, and participating in paid events hosted by the major federal political parties. For the year ended 30 September 2025, we contributed $117,762 to participate in political activities hosted by the Australian Labor Party, the Liberal Party of Australia and the National Party of Australia. These activities included speeches, political functions and conferences, and policy dialogue forums. We disclose these contributions to the Australian Electoral Commission (AEC), noting the AEC’s reporting year is a different period to the Group’s financial year. #### Modern slavery reporting The Group is subject to the Australian Commonwealth’s Modern Slavery Act 2018 and United Kingdom’s Modern Slavery Act 2015. Our annual Modern Slavery and Human Trafficking Statements cover the actions we have taken to identify, assess and manage modern slavery risks in our operations and supply chain. Our Modern Slavery and Human Trafficking Statements are available at anz.com/esgreport. #### Environmental regulation We recognise the expectations of our stakeholders – customers, shareholders, staff, regulators and the community – to operate in a way that mitigates our environmental impact. In Australia, we meet the requirements of the National Greenhouse and Energy Reporting Act 2007 (Cth), which imposes reporting obligations where energy production, usage or greenhouse gas emissions trigger specified thresholds. We do not believe that our operations are subject to any particular and significant environmental regulation under a law of the Commonwealth of Australia or of an Australian State or Territory. We may become subject to environmental regulation as a result of our lending activities in the ordinary course of business and have developed policies, which are reviewed on a regular basis, to help identify and manage such environmental matters and regulations. Further details of our environmental performance, including progress against our targets and management of ESG material issues are available in the ESG Report, ESG Data and Frameworks Pack, and Climate Report available at anz.com/esgreport . #### Climate-related disclosures Voluntary climate reports have been prepared for the Group, including ANZBGL, in accordance with the Task Force on Climate-related Financial Disclosures recommendations since 2017. The 2025 Climate Report is available at anz.com/esgreport . ANZBGL has current obligations in relation to mandatory publication of climate- related disclosures under the New Zealand Financial Markets Conduct Act 2013 (FMCA) as a Climate Reporting Entity (CRE). For the financial year ended 30 September 2025, ANZBGL is relying on the exemption in clause 6 of the Financial Markets Conduct (Climate-related Disclosures – Australia and New Zealand Banking Group Limited) Exemption Notice 2024. The effect of relying on this exemption is that ANZBGL is not required to comply with the climate reporting obligations (including preparation and lodgement of climate statements) and the record-keeping obligations imposed under Part 7A of the FMCA for the financial year ended 30 September 2025. ANZ Bank New Zealand is also a CRE. It publishes an annual climate statement for itself and its subsidiaries in accordance with Part 7A of the FMCA. These can be accessed at anz.co.nz/about-us/ corporate-responsibility/environment/ . The climate statement for the reporting period ended 30 September 2025 will be published no later than 31 January 2026. Australia and New Zealand Banking Group Limited 2025 Annual Report72 ![]() 2 Directors’ report 73 #### Exter #### nal auditor The Group’s external auditor is KPMG. The Group appointed Peat, Marwick, Mitchell & Co (predecessor to KPMG) in 1969. The Board Audit Committee conducts a formal annual performance assessment of the external auditor, including whether to commence an external tender for the audit. The Board Audit Committee considered relevant factors including tenure, audit quality, local and international capability and experience, and independence. The Board Audit Committee also considered KPMG’s extensive knowledge and history as auditor of Suncorp Bank. The Board Audit Committee resolved to reappoint KPMG for the 30 September 2025 financial year audit. KPMG regularly rotates the Group Lead Audit Engagement Partner and the Engagement Quality Control Review Partner with the most recent rotation being for the financial years ended 30 September 2023 and 30 September 2020, respectively. Non-audit services Our Stakeholder Engagement Model for Relationship with the External Auditor (the Policy), which incorporates requirements of the Corporations Act 2001 and industry best practice, prevents the external auditor from providing services that are perceived to be in conflict with the role of the external auditor or breach independence requirements. This includes consulting advice and sub-contracting of operational activities normally undertaken by management, and engagements where the external auditor may ultimately be required to express an opinion on their own work. Specifically, the Policy: • limits the scope of non-audit services that may be provided; • requires that audit, audit-related and permitted non-audit services be considered in light of independence requirements and for any potential conflicts of interest before they are approved by the Audit Committee, or approved by the Chair of the Audit Committee (or delegate) and notified to the Audit Committee; and • requires pre-approval before the external auditor can commence any engagement for the Group. Further details about the Policy can be found in ANZGHL’s Corporate Governance Statement. The external auditor has confirmed to the Audit Committee that it has: • implemented procedures to ensure it complies with independence rules in applicable jurisdictions; and • complied with applicable policies and regulations in those jurisdictions regarding the provision of non-audit services, and the Policy. The Audit Committee has reviewed the non-a udit services provided by the external auditor during the 2025 financial year, and has confirmed that the provision of these services is consistent with the Policy, compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 and did not compromise the auditor independence requirements of the Corporations Act 2001. This has been formally advised by the Audit Committee to the Board of Directors. The categories of non-audit services supplied to the Group during the year ended 30 September 2025 by the external auditor, KPMG, or by another person or firm on KPMG’s behalf, and the amounts paid or payable (including GST) by the Group are as follows: Amount paid/ payable $’000’s Non-audit se rvices 2025 2024 Methodology, procedural, operational and administrative reviews 264 180 Total 264 180 Furt her details on the compensation paid to KPMG are provided in Note 32 Auditor Fees to the financial statements including details of audit-related services provided during the year of $7.95 million (2024: $6.79 million). For the reasons set out above, the Directors are satisfied that the provision of non-audit services by the external auditor during the year ended 30 September 2025 is compatible with the general standard of independence for external auditors imposed by the Corporations Act 2001 and did not compromise the auditor independence requirements of the Corporations Act 2001. #### Directors’ and Officers’ #### Indemnity ANZBGL’s Constitution (Rule 9.1) permits ANZBGL to: • Indemnify any officer or employee of ANZBGL or any of its related bodies corporate, or its auditor, against liabilities (so far as may be permitted under applicable law) incurred as such an officer, employee or auditor to a person (other than ANZBGL or a related body corporate), including liabilities incurred as a result of appointment or nomination by ANZBGL or related body corporate as a trustee or as an officer or employee of another corporation; and • Make payments in respect of legal costs incurred by an officer or employee or auditor in defending an action for a liability incurred as such an officer, employee or auditor, or in resisting or responding to actions taken by a government agency, a duly constituted Royal Commission or other official inquiry, a liquidator, administrator, trustee in bankruptcy or other authorised official. Our policy is tha t our employees should be protected from any liability they incur as a result of acting in the course of their employment, subject to appropriate conditions. Under the policy, we will indemnify employees and former employees against any liability they incur to any third party as a result of acting in good faith in the course of their employment and this extends to liability incurred as a result of their appointment/nomination by or at the request of the ANZ Group as an officer or employee of another corporation or body or as a trustee. 73 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 3 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. 74 Australia and New Zealand Banking Group Limited 2025 Annual Report The indemnity is subject to applicable law and certain exceptions. ANZBGL has entered into Indemnity Deeds with each of its Directors, with certain secretaries and former Directors of ANZBGL, and with certain employees and other individuals who act as directors or officers of related bodies corporate or of another company, to indemnify them against liabilities and legal costs of the kind mentioned in ANZBGL’s Constitution. During the fin ancial year, we have paid premiums for insurance for the benefit of the Directors and employees of the Group. In accordance with common commercial practice, the insurance prohibits disclosure of the nature of the liability insured against and the amount of the premium. #### Rounding of amounts ANZBGL is a company of the kind referred to in Australian Securities and Investments Commission Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 dated 24 March 2016 and, in accordance with that Instrument, amounts in the consolidated financial statements and this Directors’ Report have been rounded to the nearest million dollars unless specifically stated otherwise. This report is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors. #### Key management personnel #### and employee share andoption plans Paul O’Sullivan Chairman Nuno A Matos Managing Director The Remuneration Report contains details of Non-Executive Directors (NEDs), the Chief Executive Officer (CEO) and Disclosed Executives’ equity holdings and options/rights issued during the 2025 financial year. Note 29 Employee Share and Option Plans in the 2025 Financial Report contains details of the 2025 financial year and as at the date of signing the Directors’ Report: • Options/rights issued over shares granted to employees; • Shares issued as a result of the exercise of options/rights granted to employees; and • Other details about share options/ rights issued, including any rights to participate in any share issues. The names of all pe rsons who currently hold options/rights are entered in the register kept by ANZGHL pursuant to section 170 of the Corporations Act 2001. This register may be inspected free of charge. 7 November 2025 #### Lead Auditor’s Independence Declaration The Lea d Auditors Independence Declaration given under section 307C of the Corporations Act 2001 is set out below and forms part of the Directors’ Report for the year ended 30 September 2025. To: the Directors of Australia and New Zealand Banking Group Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Australia and New Zealand Banking Group Limited for the financial year ended 30 September 2025, there have been: • No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and • No contraventions of any applicable code of professional conduct in relation to the audit. KPMG Maria Trinci Partner 7 November 2025 Australia and New Zealand Banking Group Limited 2025 Annual Report74 ![]() #### Financial report #### Contents Consolidated Financial Statements Income Statement 76 Statement of Comprehensive Income 77 Balance Sheet 78 Cash Flow Statement 79 Statement of Changes in Equity 80 Notes to the Consolidated FinancialStatements Basis of preparation 1. About our Financial Statements 82 Financial performance 2. Net interest income 85 3. Other operating income 86 4. Operating expenses 88 5. Income tax 90 6. Dividends 93 7. Segment reporting 94 Financial assets and other tradingassets 8. Cash and cash equivalents 98 9. Trading assets 99 10. Derivative financial instruments 100 11. Investment securities 112 12. Net loans and advances 114 13. Allowance for expected credit losses 115 Financial liabilities 14. Deposits and other borrowings 125 15. Payables and other liabilities 126 16. Debt issuances 127 Financial instrument disclosures 17. Financial risk management 133 18. Fair value of financial assets and financial liabilities 154 20. Oseing 161 Non-financial assets 20. Goodwill and other intangible assets 163 Non-financial liabilities 21. Other provisions 167 Equity 22. Shareholders’ equity 169 23. Capital management 172 Consolidation and presentation 24. Controlled entities 175 25. Investments in associates 177 26. Structured entities 179 27. Assets pledged, collateral accepted, and financial assets transferred 182 Employee and related partytransactions 28. Superannuation and post- employment benefit obligations 184 29. Employee share and option plans 186 30. Related party disclosures 192 Other disclosures 31. Commitments, contingent liabilities and contingent assets 195 32. Auditor fees 198 33. Suncorp Bank acquisition 199 34. Events since the end of the financial year 200 Consolidated entity 201 disclosure statement Directors’ declaration 204 Independent auditor’s report 205 75 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 7575 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Income Statement Consolidated The Company 2025 2024 2025 2024 For the year ended 30 September Note $m $m $m $m Interest income 1 63,959 60,678 50,309 49,868 Interest expense (46,056) (44,641) (38,727) (38,622) Net interest income 2 17,903 16,037 11,582 11,246 Other operating income 3 4,245 4,484 5,452 9,791 Operating income 22,148 20,521 17,034 21,037 Operating expenses 4 (12,866) (10,669) (10,081) (8,777) Profit before credit impairment and income tax 9,282 9,852 6,953 12,260 Credit impairment (charge)/release 13 (435) (406) (428) (126) Profit before income tax 8,847 9,446 6,525 12,134 Income tax expense 5 (2,771) (2,816) (1,486) (1,879) Profit for the year 6,076 6,630 5,039 10,255 Comprising: Profit attributable to shareholders of the Company 6,035 6,595 5,039 10,255 Profit attributable to non-controlling interests 41 35 - - 1. Includes interest income calculated using the effective interest method on financial assets measured at amortised cost or fair value through other comprehensive income of $59,066 million (2024: $55,717 million) in the Group and $44,346 million (2024: $43,743 million) in the Company. The notes appearing on pages 82 to 200 form an integral part of these financial statements. 76 Australia and New Zealand Banking Group Limited 2025 Annual Report 76 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 76 Australia and New Zealand Banking Group Limited 2025 Annual Report #### Income Statement Consolidated The Company 2025 2024 2025 2024 For the year ended 30 September Note $m $m $m $m Interest income 1 63,959 60,678 50,309 49,868 Interest expense (46,056) (44,641) (38,727) (38,622) Net interest income 2 17,903 16,037 11,582 11,246 Other operating income 3 4,245 4,484 5,452 9,791 Operating income 22,148 20,521 17,034 21,037 Operating expenses 4 (12,866) (10,669) (10,081) (8,777) Profit before credit impairment and income tax 9,282 9,852 6,953 12,260 Credit impairment (charge)/release 13 (435) (406) (428) (126) Profit before income tax 8,847 9,446 6,525 12,134 Income tax expense 5 (2,771) (2,816) (1,486) (1,879) Profit for the year 6,076 6,630 5,039 10,255 Comprising: Profit attributable to shareholders of the Company 6,035 6,595 5,039 10,255 Profit attributable to non-controlling interests 41 35 - - 1. Includes interest income calculated using the effective interest method on financial assets measured at amortised cost or fair value through other comprehensive income of $59,066 million (2024: $55,717 million) in the Group and $44,346 million (2024: $43,743 million) in the Company. The notes appearing on pages 82 to 200 form an integral part of these financial statements. 76 Australia and New Zealand Banking Group Limited 2025 Annual Report #### Statement of Comprehensive Income Consolidated The Company 2025 2024 2025 2024 For the year ended 30 September $m $m $m $m Profit for th e year 6,076 6,630 5,039 10,255 Other comprehensive income Items that will not be reclassified subsequently to profit or loss Investment securities - equity securities at FVOCI (137) 148 (137) 145 Other reserve movements 1 (59) (17) (39) (6) Items that may be reclassified subsequently to profit or loss Foreign currency translation reserve (602) (930) 208 (399) Cash flow hedge reserve 843 2,069 723 1,888 Other reserve movements 508 (774) 455 (763) Income tax attributable to the above items (327) (402) (296) (344) Share of associates’ other comprehensive income 2 12 (23) - - Total comprehensive income for the year 6,314 6,701 5,953 10,776 Comprising total comprehensive income attributable to: Shareholders of the Company 6,308 6,676 5,953 10,776 Non-controlling interests 1 6 25 - - 1. The Group includes foreign currency translation differences attributable to non-controlling interests of -$35 million (2024: $10 million). 2. The Group’s share of associates’ other comprehensive income, that may be reclassified subsequently to profit or loss in the Group, includes: 2025 $m 2024 $m FVOCI reserve gain/(loss) 18 (10) Defined benefits gain/(loss) (6) (13) Total 12 (23) The notes appearing on pages 82 to 200 form an integral part of these financial statements. 77 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 77 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Balance Sheet Consolidated The Company 2025 2024 2025 2024 As at 30 September Note $m $m $m $m Assets Cash and cash equivalents 8 155,209 150,965 145,060 137,288 Settlement balances owed to ANZ 23,394 5,484 22,030 5,019 Collateral paid 9,831 10,090 8,552 8,797 Trading assets 9 48,248 45,755 40,608 38,427 Derivative financial instruments 10 47,480 54,370 50,531 57,627 Investment securities 11 165,540 140,262 136,585 113,966 Net loans and advances 12 829,986 804,032 612,855 588,998 Regulatory deposits 541 665 245 222 Due from controlled entities - - 24,390 24,315 Shares in controlled entities 24 - - 24,488 24,316 Investments in associates 25 1,140 1,415 - - Current tax assets 25 19 24 19 Deferred tax assets 5 3,327 3,302 2,953 2,750 Goodwill and other intangible assets 20 5,762 5,421 999 995 Premises and equipment 2,283 2,388 1,693 1,807 Other assets 4,905 5,417 3,456 3,645 Total assets 1,297,671 1,229,585 1,074,469 1,008,191 Liabilities Settlement balances owed by ANZ 31,144 16,188 27,189 11,317 Collateral received 7,428 6,583 6,579 6,061 Deposits and other borrowings 14 956,401 905,166 751,573 703,870 Derivative financial instruments 10 43,902 55,254 47,769 57,467 Due to controlled entities - - 27,055 25,660 Current tax liabilities 537 360 172 59 Deferred tax liabilities 5 226 64 183 61 Payables and other liabilities 15 15,147 18,594 12,153 14,474 Employee entitlements 688 644 488 457 Other provisions 21 2,479 1,584 1,959 1,319 Debt issuances 16 169,274 156,388 133,491 122,950 Total liabilities 1,227,226 1,160,825 1,008,611 943,695 Net assets 70,445 68,760 65,858 64,496 Shareholders' equity Ordinary share capital 22 27,053 27,065 26,976 26,988 Reserves 22 (1,379) (1,678) (735) (1,676) Retained earnings 22 44,032 42,602 39,617 39,184 Share capital and reserves attributable to shareholders of the Company 69,706 67,989 65,858 64,496 Non-controlling interests 22 739 771 - - Total shareholders' equity 70,445 68,760 65,858 64,496 The notes appearing on pages 82 to 200 form an integral part of these financial statements. 78 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() #### Cash Flow Statement Consolidated The Company 2025 2024 2025 2024 For the year ended 30 September $m $m $m $m Profit for the year 6,076 6,630 5,039 10,255 Adjustments to reconcile to net cash provided by/(used in) operating activities: Allowance for expected credit losses 435 406 428 126 Impairment of investment in associates 285 - - - Depreciation and amortisation 1,100 944 750 749 Goodwill and other intangible assets impairments 71 9 70 9 Net derivatives/foreign exchange adjustment 3,868 3,244 3,972 1,876 (Gain)/Loss on sale from divestments - 21 - - Other non-cash movements 10 (19) 104 111 Net (increase)/decrease in operating assets: Collateral paid 579 (1,968) 603 (1,581) Trading assets (20,740) (3,204) (19,217) (4,355) Net loans and advances (29,236) (33,546) (20,605) (30,642) Net intra-group loans and advances - - 1,665 (1,204) Other assets 26 (268) (477) (343) Net increase/(decrease) in operating liabilities: Deposits and other borrowings 50,130 43,060 39,097 41,140 Settlement balances owed by ANZ 15,331 (2,905) 16,056 (5,127) Collateral received 595 (3,368) 234 (2,922) Other liabilities (2,502) 2,010 (1,670) 1,347 Total adjustments 19,952 4,416 21,010 (816) Net cash provided by/(used in) operating activities 1 26,028 11,046 26,049 9,439 Cash flows from investing activities Acquisition of Suncorp Bank, net of cash acquired - (4,914) - (6,247) Investment securities assets: Purchases (83,292) (84,777) (71,410) (77,131) Proceeds from sale or maturity 59,746 47,542 51,074 42,662 Proceeds from divestments, net of cash disposed - 686 - - Net movement in shares in controlled entities - - (163) (21) Net investments in other assets (453) (604) (470) (486) Net cash provided by/(used in) investing activities (23,999) (42,067) (20,969) (41,223) Cash flows from financing activities Deposits and other borrowings (repaid)/drawn down (1,429) (1,014) - - Debt issuances: 2 Issue proceeds 45,938 50,604 37,241 46,870 Redemptions (38,584) (25,367) (31,346) (21,886) Dividends paid (4,665) (5,252) (4,627) (5,220) On-market purchase of treasury shares (126) (126) (126) (126) Repayment of lease liabilities (377) (342) (305) (271) Capital return - (2,000) - (2,000) ANZ Bank New Zealand Perpetual Preference Shares - 252 - - Net cash provided by/(used in) financing activities 757 16,755 837 17,367 Net increase/(decrease) in Cash and cash equivalents 2,786 (14,266) 5,917 (14,417) Cash and cash equivalents at beginning of year 150,965 168,154 137,288 154,408 Effects of exchange rate changes on Cash and cash equivalents 1,458 (2,923) 1,855 (2,703) Cash and cash equivalents at end of year 155,209 150,965 145,060 137,288 1. Net cash provided by/(used in) operating activities for the Group includes interest received of $64,001 million (2024: $59,657 million), interest paid of $46,965 million (2024: $43,537 million) and income taxes paid of $3,080 million (2024: $2,925 million). Net cash provided by/(used in) operating activities for the Company includes interest received of $50,320 million (2024: $49,705 million), interest paid of $39,189 million (2024: $38,351 million) and income taxes paid of $2,053 million (2024: $2,084 million). 2. Non-cash movements on Debt issuances include a loss of $5,542 million (2024: $711 million gain) from unrealised movements primarily due to fair value hedging adjustments and foreign exchange losses for the Group, and include a loss of $4,647 million (2024: $246 million gain) from unrealised movements primarily due to fair value hedging and foreign exchange losses for the Company. The notes appearing on pages 82 to 200 form an integral part of these financial statements. 79 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 79 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Statement of Changes in Equity Ordinary share capital Reserves Retained earnings Share capital and reserves attributable to shareholders of the Company Non- controlling interests Total shareholders’ equity Consolidated $m $m $m $m $m $m As at 1 October 2023 29,082 (1,796) 41,277 68,563 522 69,085 Profit or loss for the year - - 6,595 6,595 35 6,630 Other comprehensive income for the year - 101 (20) 81 (10) 71 Total comprehensive income for the year - 101 6,575 6,676 25 6,701 Transactions with equity holders in their capacity as equity holders: Dividends paid - - (5,267) (5,267) (32) (5,299) Other equity movements: Employee share and option plans (17) 23 4 10 - 10 ANZ Bank New Zealand Perpetual Preference Shares 1 - - (4) (4) 256 252 Capital return (2,000) - - (2,000) - (2,000) Other items - (6) 17 11 - 11 As at 30 September 2024 27,065 (1,678 ) 42,602 67,989 771 68,760 Profit or loss for the year - - 6,035 6,035 41 6,076 Other comprehensive income for the year - 296 (23) 273 (35) 238 Total comprehensive income for the year - 296 6,012 6,308 6 6,314 Transactions with equity holders in their capacity as equity holders: Dividends paid - - (4,580) (4,580) (38) (4,618) Other equity movements: Employee share and option plans (12) (1) 2 (11) - (11) Other items - 4 (4) - - - As at 30 September 2025 27,053 (1,379) 44,032 69,706 739 70,445 1. Perpetual preference shares issued by ANZ Bank New Zealand, a member of the Group, are considered non-controlling interests to the Group. Refer to Note 22 Shareholders’ equity for further details. The notes appearing on pages 82 to 200 form an integral part of these financial statements. 80 Australia and New Zealand Banking Group Limited 2025 Annual Report 80 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 80 Australia and New Zealand Banking Group Limited 2025 Annual Report #### Statement of Changes in Equity Ordinary share capital Reserves Retained earnings Share capital and reserves attributable to shareholders of the Company Non- controlling interests Total shareholders’ equity Consolidated $m $m $m $m $m $m As at 1 October 2023 29,082 (1,796) 41,277 68,563 522 69,085 Profit or loss for the year - - 6,595 6,595 35 6,630 Other comprehensive income for the year - 101 (20) 81 (10) 71 Total comprehensive income for the year - 101 6,575 6,676 25 6,701 Transactions with equity holders in their capacity as equity holders: Dividends paid - - (5,267) (5,267) (32) (5,299) Other equity movements: Employee share and option plans (17) 23 4 10 - 10 ANZ Bank New Zealand Perpetual Preference Shares 1 - - (4) (4) 256 252 Capital return (2,000) - - (2,000) - (2,000) Other items - (6) 17 11 - 11 As at 30 September 2024 27,065 (1,6 78) 42,602 67,989 771 68,760 Profit or loss for the year - - 6,035 6,035 41 6,076 Other comprehensive income for the year - 296 (23) 273 (35) 238 Total comprehensive income for the year - 296 6,012 6,308 6 6,314 Transactions with equity holders in their capacity as equity holders: Dividends paid - - (4,580) (4,580) (38) (4,618) Other equity movements: Employee share and option plans (12) (1) 2 (11) - (11) Other items - 4 (4) - - - As at 30 September 2025 27,053 (1,379) 44,032 69,706 739 70,445 1. Perpetual preference shares issued by ANZ Bank New Zealand, a member of the Group, are considered non-controlling interests to the Group. Refer to Note 22 Shareholders’ equity for further details. The notes appearing on pages 82 to 200 form an integral part of these financial statements. 80 Australia and New Zealand Banking Group Limited 2025 Annual Report #### Statement of Changes in Equity (continued) Ordinary share capital Reserves Retained earnings Total shareholders’ equity The Company $m $m $m $m As at 1 October 2023 29,005 (2,222) 34,195 60,978 Profit for the year - - 10,255 10,255 Other comprehensive income for the year - 527 (6) 521 Total comprehensive income for the year - 527 10,249 10,776 Transactions with equity holders in their capacity as equity holders: Dividends paid - - (5,267) (5,267) Other equity movements: Employee share and option plans (17) 23 4 10 Capital return (2,000) - - (2,000) Other items - (4) 3 (1) As at 30 September 2024 26,988 (1,676) 39,184 64,496 Profit for the year - - 5,039 5,039 Other comprehensive income for the year - 942 (28) 914 Total comprehensive income for the year - 942 5,011 5,953 Transactions with equity holders in their capacity as equity holders: Dividends paid - - (4,580) (4,580) Other equity movements: - Employee share and option plans (12) (1) 2 (11) As at 30 September 2025 26,976 (735) 39,617 65,858 The notes appearing on pages 82 to 200 form an integral part of these financial statements. 81 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 81 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Notes to the Financial Statements ## Notes to the ConsolidatedFinancial Statements 1. About our financial statements General information These are the consolidated financial statements for ANZBGL (the Company) and its controlled entities (together, the Group or Consolidated Entity) for the year ended 30 September 2025. The Company is a publicly listed company incorporated and domiciled in Australia with debt listed on securities exchanges. The Company is a subsidiary of ANZGHL and is regulated by APRA as an Authorised Deposit-taking Institution (ADI). The address of the Company’s registered office and its principal place of business is ANZ Centre, 833 Collins Street, Docklands, Victoria, Australia 3008. The Group provides banking and financial services to individuals and business customers and operates in and across 29 markets. On 7 November 2025, the Directors resolved to authorise the issue of these financial statements. Information in the financial statements is included only to the extent we consider it material and relevant to the understanding of the financial statements. A disclosure is considered material and relevant if, for example: • the amount is significant in size (quantitative fa ctor); • the informa tion is significant by nature (qualitative fa ctor); • the user cannot understand the Group’s results without the specific disclosure (qualitative factor); • the information is critical to a user’s understanding of the impact of significant changes in the Group’s business during the p eriod - for example, business acquisitions or disposals ( qualitative factor); • the information relates to an aspect of the Group’s operations that is important to its future performance (qualitative factor); and • the information is required under legislative requirements of the Corporations Act 2001, the Banking Act 1959 (Cth) or by the Group’s pr incipal regulators, including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). This section of th e financial statements: • outlines the basis upon which the Group’s financial statements have been prepared; an d • discusses any new accounting standards or regulations that directly impact the financial statements. Basis of preparation This financial report is a general purpose (Tier 1) financial report prepared by a ‘for profit’ entity, in accordance with Australian Accounting Standards (AASs) and other authoritative pronouncements of the Australian Accounting Standards Board (AASB), the Corporations Act 2001, and International Financial Reporting Standards (IFRS) and interpretations published by the International Accounting Standards Board (IASB). We present the financial statements of the Group in Australian dollars, which is the Company’s functional and presentation currency. We measure the financial statements of each entity in the Group using the currency of the primary economic environment in which that entity operates (the functional currency). We have rounded values to the nearest million dollars ($m), unless otherwise stated, as permitted under the ASIC Corporations (Rounding in Financial/Directors Report) Instrument 2016/191. Certain comparative amounts have been restated to conform with the basis of preparation in the current year. Basis of measurement and presentation The financial information has been prepared on a historical cost basis - except the following assets and liabilities which we have stated at their fair value: • derivative financial instruments and in the case of fair value hedging, a fair value adjustment made to the underlying hedged item; • financial instruments held for trading; • financial assets a nd financial liabilities designated at fair value through profit or loss (FVTPL); and • financial assets at fair value through other comprehensive income (FVOCI). In accordance with AASB 119 Employee Benefits we have measured defined benefit obligations using the Projected Unit Credit Method. Basis of consolidation The consolidated financial statements of the Group comprise the financial statements of the Company and all its subsidiaries. An entity, including a structured entity, is considered a subsidiary of the Group when we determine that the Company has control over the entity. Control exists when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. We assess power by examining existing rights that give the Company the current ability to direct the relevant activities of the entity. We have eliminated, on consolidation, the effect of all transactions between entities in the Group. 82 Australia and New Zealand Banking Group Limited 2025 Annual Report 82 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() 82 Notes to the Financial Statements ## Notes to the ConsolidatedFinancial Statements 1. About our financial statements General information These are the consolidated financial statements for ANZBGL (the Company) and its controlled entities (together, the Group or Consolidated Entity) for the year ended 30 September 2025. The Company is a publicly listed company incorporated and domiciled in Australia with debt listed on securities exchanges. The Company is a subsidiary of ANZGHL and is regulated by APRA as an Authorised Deposit-taking Institution (ADI). The address of the Company’s registered office and its principal place of business is ANZ Centre, 833 Collins Street, Docklands, Victoria, Australia 3008. The Group provides banking and financial services to individuals and business customers and operates in and across 29 markets. On 7 November 2025, the Directors resolved to authorise the issue of these financial statements. Information in the financial statements is included only to the extent we consider it material and relevant to the understanding of the financial statements. A disclosure is considered material and relevant if, for example: • the amount is significant in size (quantitative fa ctor); • the informa tion is significant by nature (qualitative fa ctor); • the user cannot understand the Group’s results without the specific disclosure (qualitative factor); • the information is critical to a user’s understanding of the impact of significant changes in the Group’s business during the p eriod - for example, business acquisitions or disposals ( qualitative factor); • the information relates to an aspect of the Group’s operations that is important to its future performance (qualitative factor); and • the information is required under legislative requirements of the Corporations Act 2001, the Banking Act 1959 (Cth) or by the Group’s pr incipal regulators, including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). This section of th e financial statements: • outlines the basis upon which the Group’s financial statements have been prepared; an d • discusses any new accounting standards or regulations that directly impact the financial statements. Basis of preparation This financial report is a general purpose (Tier 1) financial report prepared by a ‘for profit’ entity, in accordance with Australian Accounting Standards (AASs) and other authoritative pronouncements of the Australian Accounting Standards Board (AASB), the Corporations Act 2001, and International Financial Reporting Standards (IFRS) and interpretations published by the International Accounting Standards Board (IASB). We present the financial statements of the Group in Australian dollars, which is the Company’s functional and presentation currency. We measure the financial statements of each entity in the Group using the currency of the primary economic environment in which that entity operates (the functional currency). We have rounded values to the nearest million dollars ($m), unless otherwise stated, as permitted under the ASIC Corporations (Rounding in Financial/Directors Report) Instrument 2016/191. Certain comparative amounts have been restated to conform with the basis of preparation in the current year. Basis of measurement and presentation The financial information has been prepared on a historical cost basis - except the following assets and liabilities which we have stated at their fair value: • derivative financial instruments and in the case of fair value hedging, a fair value adjustment made to the underlying hedged item; • financial instruments held for trading; • financial assets a nd financial liabilities designated at fair value through profit or loss (FVTPL); and • financial assets at fair value through other comprehensive income (FVOCI). In accordance with AASB 119 Employee Benefits we have measured defined benefit obligations using the Projected Unit Credit Method. Basis of consolidation The consolidated financial statements of the Group comprise the financial statements of the Company and all its subsidiaries. An entity, including a structured entity, is considered a subsidiary of the Group when we determine that the Company has control over the entity. Control exists when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. We assess power by examining existing rights that give the Company the current ability to direct the relevant activities of the entity. We have eliminated, on consolidation, the effect of all transactions between entities in the Group. 82 Australia and New Zealand Banking Group Limited 2025 Annual Report 1. About our financial statements (continued) Foreign currency translation Transactions and balances Foreign currency transactions are translated into the relevant functional currency at the exchange rate prevailing at the date of the transaction. At the reporting date, monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the relevant spot rate. Any foreign currency translation gains or losses that arise are included in profit or loss in the period they arise. We measure translation differences on non-monetary items classified as FVTPL and report them as part of the fair value gain or loss on these items. For non-monetary items classified as investment securities measured at FVOCI, translation differences are included in other comprehensive income. Financial statements of foreign operations that have a functional currency that is not Australian dollars The financial statements of our foreign operations are translated into Australian dollars for consolidation into the Group financial statements using the following method: | | | | --- | --- | | Foreign currency item | Exchange rate used | | | | | assets and liabilities | | | | | | | The reporting date rate | | Equity | | | | | | | The initial investment date rate | | Income and expenses | | | | | | | The average rate for the period – but for a significant transaction if we believe the average rate is not reasonable, | | | | | | Then we use the rate at the date of the transaction | Exchange differences arising from the translation of financial statements of foreign operations are recognised in the foreign currency translation reserve in equity. When we dispose of a foreign operation, the cumulative exchange differences are transferred to profit or loss. Fiduciary activities The Group provides fiduciary services to third parties including custody, nominee and trustee services. This involves the Group holding assets on behalf of third parties and making decisions regarding the purchase and sale of financial instruments. If the Group is not the beneficial owner or does not control the assets, then we do not recognise these transactions in these financial statements, except when required by accounting standards or another legislative requirement. #### Key judgements and estimates In the process of applying the Group’s accounting policies, management has made a number of judgements and applied estimates and assumptions about past and future events. Further information on the key judgements and estimates that we consider material to the financial statements are contained within each relevant note to the financial statements. The global economy continues to face challenges reflecting the impacts of global uncertainties from continuing trade and geopolitical tensions, and impacts from climate change, which contribute to an elevated level of estimation uncertainty involved in the preparation of these financial statements. The Group is exposed to climate risk either directly through its operations or indirectly, for example, through lending to customers. Climate risk may also be a driver of other risks within our risk management framework. Our most material climate risks arise from lending to business and retail customers, which contribute to credit risk. The Group has made various accounting estimates in this Financial Report based on forecasts of economic conditions which reflect expectations and assumptions at 30 September 2025 about future events considered reasonable in the circumstances. Thus, there is a considerable degree of judgement involved in preparing these estimates. Actual economic conditions are likely to be different from those forecast since anticipated events frequently do not occur as expected, and the effect of these differences may significantly impact accounting estimates included in these financial statements. The significant accounting estimates impacted by these forecasts and associated uncertainties are predominantly related to expected credit losses and recoverable amounts of non-financial assets including investments in associates. The impact of these uncertainties on each of these accounting estimates is discussed in the relevant notes in this Financial Report, along with assumptions and judgements made in relation to other key estimates. Readers should consider these disclosures in light of the inherent uncertainties described above. 83 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 83 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 1. About our financial statements (continued) Accounting standards adopted in the period Accounting policies have been consistently applied to all periods presented, unless otherwise noted. Lease Liability in a Sale and Leaseback AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback amended AASB 16 Leases and specifies the accounting for variable lease payments by seller-lessees in sale and leaseback transactions. The amendment was effective from 1 October 2024 and did not have a material impact on the Group. Accounting standards not early adopted A number of new standards, amendments to standards and interpretations have been published but are not mandatory for the financial statements for the year ended 30 September 2025 and have not been applied by the Group in preparing these financial statements. Further details of these are set out below. AASB 18 Presentation and Disclosure in Financial Statements In June 2024, the AASB issued AASB 18 Presentation and Disclosure in Financial Statements (AASB 18) which updates and replaces requirements for the presentation and disclosure of information in financial statements. AASB 18 introduces new defined subtotals to be presented in the consolidated Income Statement, disclosure of management-defined performance measures and requirements for grouping of information. This standard will be effective for the financial year beginning 1 October 2027. We are currently assessing the impact of adopting this standard. Classification and measurement amendments to AASB 9 Financial Instruments In July 2024, the AASB issued AASB 2024-2 Amendments to Australian Accounting Standards - Classification and Measurement of Financial Instruments which amends requirements related to settling financial liabilities using an electronic payment system and assessing contractual cash flow characteristics of financial assets with environmental, social and corporate governance and similar features. The amendments will be effective for the financial year beginning 1 October 2026. We are currently assessing the impact of adopting this standard. Nature-dependent electricity contracts In February 2025, the AASB issued AASB 2025-1 Amendments to Australian Accounting Standards – Contracts Referencing Nature-dependent Electricity which enhances guidance on the application of the ‘own-use’ exemption on nature dependent power purchase agreements (PPAs) and hedge accounting requirements for PPAs that are classified as derivative financial instruments. The amendments also introduce new disclosure requirements for certain PPAs. The amendments will be effective for the financial year beginning 1 October 2026. We are currently assessing the impact of adopting these amendments. Related pronouncement of the AASB AASB Sustainability Reporting Standards In September 2024, the AASB published two sustainability standards: AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information, a voluntary standard for general sustainability-related financial disclosures, and AASB S2 Climate-related Disclosures (AASB S2), a mandatory standard that requires disclosure of climate-related financial risks and opportunities that could reasonably be expected to affect the Group’s cash flows, access to finance or cost of capital over the short, medium or long term. AASB S2 will be effective for the Group for the financial year beginning 1 October 2025. 84 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 84 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 84 1. About our financial statements (continued) Accounting standards adopted in the period Accounting policies have been consistently applied to all periods presented, unless otherwise noted. Lease Liability in a Sale and Leaseback AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback amended AASB 16 Leases and specifies the accounting for variable lease payments by seller-lessees in sale and leaseback transactions. The amendment was effective from 1 October 2024 and did not have a material impact on the Group. Accounting standards not early adopted A number of new standards, amendments to standards and interpretations have been published but are not mandatory for the financial statements for the year ended 30 September 2025 and have not been applied by the Group in preparing these financial statements. Further details of these are set out below. AASB 18 Presentation and Disclosure in Financial Statements In June 2024, the AASB issued AASB 18 Presentation and Disclosure in Financial Statements (AASB 18) which updates and replaces requirements for the presentation and disclosure of information in financial statements. AASB 18 introduces new defined subtotals to be presented in the consolidated Income Statement, disclosure of management-defined performance measures and requirements for grouping of information. This standard will be effective for the financial year beginning 1 October 2027. We are currently assessing the impact of adopting this standard. Classification and measurement amendments to AASB 9 Financial Instruments In July 2024, the AASB issued AASB 2024-2 Amendments to Australian Accounting Standards - Classification and Measurement of Financial Instruments which amends requirements related to settling financial liabilities using an electronic payment system and assessing contractual cash flow characteristics of financial assets with environmental, social and corporate governance and similar features. The amendments will be effective for the financial year beginning 1 October 2026. We are currently assessing the impact of adopting this standard. Nature-dependent electricity contracts In February 2025, the AASB issued AASB 2025-1 Amendments to Australian Accounting Standards – Contracts Referencing Nature-dependent Electricity which enhances guidance on the application of the ‘own-use’ exemption on nature dependent power purchase agreements (PPAs) and hedge accounting requirements for PPAs that are classified as derivative financial instruments. The amendments also introduce new disclosure requirements for certain PPAs. The amendments will be effective for the financial year beginning 1 October 2026. We are currently assessing the impact of adopting these amendments. Related pronouncement of the AASB AASB Sustainability Reporting Standards In September 2024, the AASB published two sustainability standards: AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information, a voluntary standard for general sustainability-related financial disclosures, and AASB S2 Climate-related Disclosures (AASB S2), a mandatory standard that requires disclosure of climate-related financial risks and opportunities that could reasonably be expected to affect the Group’s cash flows, access to finance or cost of capital over the short, medium or long term. AASB S2 will be effective for the Group for the financial year beginning 1 October 2025. 84 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report #### 2.Net interest income | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Interest income by type of financial asset | | | | | | Financial assets at amortised cost | 53,121 | 51,178 | 39,516 | 39,777 | | Investment securities at FVOCI | | | | | | | 5,945 | 4,539 | 4,830 | 3,966 | | Trading assets | | | | | | | 1,923 | 2,217 | 1,622 | 1,954 | | Financial assets at FVTPL | | | | | | | 2,970 | 2,744 | 3,015 | 2,821 | | External interest income | | | | | | | 63,959 | 60,678 | 48,983 | 48,518 | | Controlled entities' income | - | - | 1,326 | 1,350 | | Interest income | | | | | | | 63,959 | 60,678 | 50,309 | 49,868 | | Interest expense by type of financial liability | | | | | | Financial liabilities at amortised cost | (42,982) | (41,472) | (34,290) | (34,130) | | Securities sold short | | | | | | | (397) | (649) | (359) | (615) | | Financial liabilities at FVTPL | | | | | | | (2,226) | (2,131) | (2,161) | (1,977) | | External interest expense | | | | | | | (45,605) | (44,252) | (36,810) | (36,722) | | Controlled entities' expense | - | - | (1,471) | (1,511) | | Interest expense | | | | | | | (45,605) | (44,252) | (38,281) | (38,233) | | Major bank levy | (451) | (389) | (446) | (389) | | Net interest income | 17,903 | 16,037 | 11,582 | 11,246 | #### Recognition and measurement Net interest income Interest income and expense We recognise interest income and expense in net interest income for all financial instruments, including those classified as held for trading, assets measured at FVOCI, and assets and liabilities designated at FVTPL. We use the effective interest rate method to calculate the amortised cost of assets held at amortised cost and to recognise interest income on financial assets measured at amortised cost and FVOCI. The effective interest rate is the rate that discounts the stream of estimated future cash receipts or payments over the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or liability. For assets subject to prepayment, we determine their expected life on the basis of historical behaviour of the particular asset portfolio taking into account contractual obligations and prepayment experience. We recognise fees and costs, which form an integral part of the financial instrument (for example loan origination fees and costs), using the effective interest rate method. These are presented as part of interest income or expense depending on whether the underlying financial instrument is a financial asset or financial liability. Major Bank Levy The Major Bank Levy Act 2017 (levy or major bank levy) applies a rate of 0.06% to certain liabilities of ANZBGL. The levy represents a finance cost, and it is presented as interest expense in the Income Statement. 85 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 85 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 3. #### Other operating income | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | | | | | | | | | | | | | 2025 | 2024 | 2025 | 2024 | | | | | | | | | $m | $m | $m | $m | | Fee and commission income | | | | | | Lending fees | | | | | | 1 | | | | | | | | | | | | | 436 | 420 | 389 | 394 | | Non-lending fees | | | | | | | 2,283 | 2,272 | 1,501 | 1,551 | | Commissions | | | | | | | 63 | 75 | 37 | 48 | | Funds management income | | | | | | | 251 | 241 | 29 | 14 | | External fee and commission income | | | | | | | 3,033 | 3,008 | 1,956 | 2,007 | | Controlled entities' income | - | - | 189 | 192 | | Fee and commission income | | | | | | | 3,033 | 3,008 | 2,145 | 2,199 | | Fee and commission expense | (1,145) | (1,044) | (605) | (555) | | Net fee and commission income | | | | | | | 1,888 | 1,964 | 1,540 | 1,644 | | Other income | | | | | | Net foreign exchange earnings and other financial instruments income | | | | | | 2 | | | | | | | | | | | | | 2,348 | 2,166 | 1,751 | 1,941 | | Net income from insurance business | | | | | | | 95 | 122 | - | - | | Share of associates' profit/(loss) | | | | | | | 106 | 134 | - | - | | Release of foreign currency translation reserve on dissolution of entities | | | | | | | 15 | 22 | 15 | - | | Loss on disposal of investment in AmBank | | | | | | | - | (21) | - | - | | PT Panin impairment | | | | | | | (285) | - | - | - | | Dividends received from controlled entities | | | | | | | - | - | 2,016 | 6,104 | | Other | | | | | | | 78 | 97 | 130 | 102 | | Other income | | | | | | | 2,357 | 2,520 | 3,912 | 8,147 | | Other operating income | 4,245 | 4,484 | 5,452 | 9,791 | 1. Excludes fees treated as part of the effective yield calculation in Interest income. 2. Includes fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges entered into to manage interest rate and foreign exchange risk, ineffective portions of cash flow hedges, and fair value movements in financial assets and liabilities at FVTPL. 86 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 86 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 86 3. Other operating income Consol idated The Company 2025 2024 2025 2024 $m $m $m $m Fee and com mission income Lending fees 1 436 420 389 394 Non-lending fees 2,283 2,272 1,501 1,551 Commissions 63 75 37 48 Funds management income 251 241 29 14 External fee and commission income 3,033 3,008 1,956 2,007 Controlled entities' income - - 189 192 Fee and commission income 3,033 3,008 2,145 2,199 Fee and commission expense (1,145) (1,044) (605) (555) Net fee and commission income 1,888 1,964 1,540 1,644 Other income Net foreign exchange earnings and other financial instruments income 2 2,348 2,166 1,751 1,941 Net income from insurance business 95 122 - - Share of associates' profit/(loss) 106 134 - - Release of foreign currency translation reserve on dissolution of entities 15 22 15 - Loss on disposal of investment in AmBank - (21) - - PT Panin impairment (285) - - - Dividends received from controlled entities - - 2,016 6,104 Other 78 97 130 102 Other income 2,357 2,520 3,912 8,147 Other operating income 4,245 4,484 5,452 9,791 1. Excludes fees treated as part of the effective yield calculation in Interest income. 2. Includes fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges entered into to manage interest rate and foreign exchange risk, ineffective portions of cash flow hedges, and fair value movements in financial assets and liabilities at FVTPL. 86 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 3. Other operating income #### (continued) #### Recognition and measurement Other operating income Fee and commission revenue We recognise fee and commission revenue arising from contracts with customers (a) over time when the performance obligation is satisfied across more than one reporting period, or (b) at a point in time when the performance obligation is satisfied immediately or is satisfied within one reporting period. • lending fees exclude fees treated as part of the effective yield calculation of interest income. Lending fees include certain guarantee and commitment fees where the loan or guarantee is not likely to be drawn upon, and other fees charged for providing customers a distinct good or service that are recognised separately from the underlying lending product. • non-lending fees include fees associated with deposit and credit card accounts, interchange fees and fees charged for specific customer transactions such as international transaction fees. Where the Group provides multiple goods or services to a customer under the same contract, the Group allocates the transaction price of the contract to distinct performance obligations based on the relative stand-alone selling price of each performance obligation. Revenue is recognised as each performance obligation is satisfied. • commissions represent fees from third parties where we act as an agent by arranging a third party (such as an insurance provider) to provide goods and services to a customer. In such cases, we are not primarily responsible for providing the underlying good or service to the customer. If the Group collects funds on behalf of a third party when acting as an agent, we only recognise the net commission retained as revenue. When the commission is variable based on factors outside our control (such as a trail commission), revenue is only recognised if it is highly probable that a significant reversal of the variable amount will not be required in future periods. • funds management income represents fees earned from customers for providing financial advice and asset management services. Revenue is recognised either at the point the financial advice is provided or over the period in which the asset management services are delivered. Performance fees associated with funds management activities are only recognised when it becomes highly probable the performance hurdle will be achieved. Net foreign exchange earnings and other financial instruments income We recognise the following as net foreign exchange earnings and other financial instruments income: • exchange rate differences arising on the settlement of monetary items and translation differences on monetary items translated at rates different to those at which they were initially recognised or included in a previous financial report; • fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges that we use to manage interest rate and foreign exchange risk on funding instruments; • the ineffective portions of fair value hedges, cash flow hedges and net investment hedges; • immediately upon sale or repayment of a hedged item, the unamortised fair value adjustments to items designated as fair value hedges and amounts accumulated in equity related to designated cash flow hedges; • fair value movements on financial assets and financial liabilities at FVTPL or held for trading; • amounts released from the FVOCI reserve when a debt instrument classified as FVOCI is sold; and • the gain or loss on derecognition of financial assets or liabilities measured at amortised cost . Gain or loss on disposal of non-financial assets The gain or loss on the disposal of assets is the difference between the carrying value of the asset and the proceeds of disposal net of costs. This is recognised in Other income in the year in which control of the asset transfers to the buyer. Share of associates’ profit/(loss) The equity method is applied to accounting for associates. Under the equity method, our share of the after tax results of associates is included in the Income Statement and the Statement of Comprehensive Income. 87 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 87 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 4. Operating expenses | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | | | | | | | 2025 | 2024 | 2025 | 2024 | | | | | | | | | $m | $m | $m | $m | | Personnel | | | | | | Salaries and related costs | 5,955 | 5,475 | 4,017 | 3,938 | | Superannuation costs | | | | | | | 505 | 443 | 393 | 368 | | Equity-settled share-based payments | | | | | | | 121 | 139 | 108 | 124 | | Other | | | | | | | 133 | 83 | 89 | 53 | | Personnel | | | | | | | 6,714 | 6,140 | 4,607 | 4,483 | | Premises | | | | | | Rent | 87 | 74 | 56 | 52 | | Depreciation | | | | | | | 458 | 436 | 327 | 332 | | Other | | | | | | | 191 | 178 | 135 | 123 | | Premises | | | | | | | 736 | 688 | 518 | 507 | | Technology | | | | | | Depreciation and amortisation | 496 | 501 | 422 | 416 | | Subscription licences and outsourced services | | | | | | | 1,331 | 1,155 | 866 | 782 | | Other | | | | | | | 393 | 238 | 236 | 174 | | Technology | | | | | | | 2,220 | 1,894 | 1,524 | 1,372 | | Restructuring | 764 | 235 | 544 | 190 | | Other | | | | | | Advertising and public relations | 216 | 200 | 164 | 158 | | Professional fees | | | | | | | 957 | 766 | 841 | 716 | | Freight, stationery, postage and communication | | | | | | | 179 | 170 | 125 | 126 | | Card processing fees | | | | | | | 87 | 107 | 83 | 103 | | Amortisation and impairment of other intangible assets | | | | | | 1 | | | | | | | 144 | 7 | - | - | | Non-lending losses, frauds and forgeries | | | | | | 2 | | | | | | | 383 | 83 | 360 | 56 | | Other | | | | | | | 466 | 379 | 1,315 | 1,066 | | Other | | | | | | | 2,432 | 1,712 | 2,888 | 2,225 | | Operating expenses | 12,866 | 10,669 | 10,081 | 8,777 | 1. Includes $143 million amortisation of acquired intangible assets recognised as part of the acquisition accounting relating to the Suncorp Bank acquisition during 2025 (2024: nil) for the Group. 2. Includes $240 million of ASIC penalties during 2025 (2024: nil) for the Group and the Company. 88 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 88 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 88 4. Operating expenses Consol idated The Company 2025 2024 2025 2024 $m $m $m $m Personne l Salaries and related costs 5,955 5,475 4,017 3,938 Superannuation costs 505 443 393 368 Equity-settled share-based payments 121 139 108 124 Other 133 83 89 53 Personnel 6,714 6,140 4,607 4,483 Premises Rent 87 74 56 52 Depreciation 458 436 327 332 Other 191 178 135 123 Premises 736 688 518 507 Technology Depreciation and amortisation 496 501 422 416 Subscription licences and outsourced services 1,331 1,155 866 782 Other 393 238 236 174 Technology 2,220 1,894 1,524 1,372 Restructuring 764 235 544 190 Other Advertising and public relations 216 200 164 158 Professional fees 957 766 841 716 Freight, stationery, postage and communication 179 170 125 126 Card processing fees 87 107 83 103 Amortisation and impairment of other intangible assets 1 144 7 - - Non-lending losses, frauds and forgeries 2 383 83 360 56 Other 466 379 1,315 1,066 Other 2,432 1,712 2,888 2,225 Operating expenses 12,866 10,669 10,081 8,777 1. Includes $143 million amortisation of acquired intangible assets recognised as part of the acquisition accounting relating to the Suncorp Bank acquisition during 2025 (2024: nil) for the Group. 2. Includes $240 million of ASIC penalties during 2025 (2024: nil) for the Group and the Company. 88 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 4. Operating expenses (continued) #### Recognition and measurement Operating expenses Operating expenses are recognised as services are provided to the Group, over the period in which an asset is consumed, or once a liability is created. Salaries and related costs - annual leave, long service leave and other employee benefits Wages and salaries, annual leave and other employee entitlements expected to be paid or settled within twelve months of employees rendering service are measured at their nominal amounts using remuneration rates that the Group expects to pay when the liabilities are settled. We accrue employee entitlements relating to long service leave using an actuarial calculation. It includes assumptions regarding staff departures, leave utilisation and future salary increases. The result is then discounted using market yields at the reporting date. The market yields are determined from a blended rate of high quality corporate bonds with terms to maturity that closely match the estimated future cash outflows. If we expect to pay short term cash bonuses, then a liability is recognised when the Group has a present legal or constructive obligation to pay this amount (as a result of past service provided by the employee) and the obligation can be reliably measured. Personnel expenses also include share-based payments which may be cash or equity settled. We calculate the fair value of equity settled remuneration at grant date, which is then amortised over the vesting period, with a corresponding increase in share capital or the share option reserve as applicable. When we estimate the fair value, we take into account market vesting conditions, such as share price performance conditions. We take non-market vesting conditions, such as service conditions, into account by adjusting the number of equity instruments included in the expense. After the grant of an equity-based award, the amount we recognise as an expense is reversed when non-market vesting conditions are not met, for example an employee fails to satisfy the minimum service period specified in the award due to resignation, termination or notice of dismissal for serious misconduct. However, we do not reverse the expense if the award does not vest due to the failure to meet a market- based performance condition. Further information on share-based payment schemes operated by the Group during the current and prior year is included in Note 29 Employee share and option plans. 89 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 89 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 5. Income tax Income tax expense Reconciliation of the prima facie income tax expense on pre-tax profit with the income tax expense recognised in profit or loss: | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Profit before income tax | | | | | | | 8,847 | 9,446 | 6,525 | 12,134 | | Prima facie income tax expense at 30% | 2,654 | 2,834 | 1,958 | 3,640 | | Tax effect of permanent differences: | | | | | | Share of associates' (profit)/loss | (32) | (41) | - | - | | Interest on convertible instruments | | | | | | | 105 | 124 | 105 | 124 | | Overseas tax rate differential | | | | | | | (159) | (156) | (85) | (93) | | Provision for foreign tax on dividend repatriation | | | | | | | 33 | 36 | 29 | 33 | | Non-deductible ASIC penalties | | | | | | | 72 | - | 72 | - | | PT Panin impairment | | | | | | | 86 | - | - | - | | Rebatable and non-assessable dividends | | | | | | | - | - | (605) | (1,831) | | Other | | | | | | | 18 | (1) | 8 | (8) | | Subtotal | | | | | | | 2,777 | 2,796 | 1,482 | 1,865 | | Income tax (over)/under provided in previous years | (6) | 20 | 4 | 14 | | Income tax expense | | | | | | | 2,771 | 2,816 | 1,486 | 1,879 | | Current tax expense | 3,154 | 3,063 | 1,695 | 1,956 | | Adjustments recognised in the current year in relation to the | | | | | | current tax of prior years | | | | | | | (6) | 20 | 4 | 14 | | Deferred tax expense/(income) relating to the origination and | | | | | | reversal of temporary differences | | | | | | | (377) | (267) | (213) | (91) | | Income tax expense | | | | | | | 2,771 | 2,816 | 1,486 | 1,879 | | Australia | 1,299 | 1,481 | 1,082 | 1,476 | | Overseas | 1,472 | 1,335 | 404 | 403 | | Income tax expense | | | | | | | 2,771 | 2,816 | 1,486 | 1,879 | | Effective tax rate | 31.3% | 29.8% | 22.8% | 15.5% | 90 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 90 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 90 5. Income tax Income tax expense Reconciliation of the prima facie income tax expense on pre-tax profit with the income tax expense recognised in profit or loss: Consolidated The Company 2025 2024 2025 2024 $m $m $m $m Profit before income tax 8,847 9,446 6,525 12,134 Prima facie income tax expense at 30% 2,654 2,834 1,958 3,640 Tax effect of permanent differences: Share of associates' (profit)/loss (32) (41) - - Interest on convertible instruments 105 124 105 124 Overseas tax rate differential (159) (156) (85) (93) Provision for foreign tax on dividend repatriation 33 36 29 33 Non-deductible ASIC penalties 72 - 72 - PT Panin impairment 86 - - - Rebatable and non-assessable dividends - - (605) (1,831) Other 18 (1) 8 (8) Subtotal 2,777 2,796 1,482 1,865 Income tax (over)/under provided in previous years (6) 20 4 14 Income tax expense 2,771 2,816 1,486 1,879 Current tax expense 3,154 3,063 1,695 1,956 Adjustments recognised in the current year in relation to the current tax of prior years (6) 20 4 14 Deferred tax expense/(income) relating to the origination and reversal of temporary differences (377) (267) (213) (91) Income tax expense 2,771 2,816 1,486 1,879 Australia 1,299 1,481 1,082 1,476 Overseas 1,472 1,335 404 403 Income tax expense 2,771 2,816 1,486 1,879 Effective tax rate 31.3% 29.8% 22.8% 15.5% 90 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 5. Income tax (continued) Deferred tax assets and liabilities | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | | | | | | 1 | | | | | | | 2025 | 2024 | | | | | | 1 | | | | | | | | | $m | $m | $m | $m | | Deferred tax assets balances comprise temporary differences attributable to: | | | | | | Amounts recognised in the Income Statement: | | | | | | Collectively assessed allowances for expected credit losses | 1,249 | 1,216 | 952 | 898 | | Individually assessed allowances for expected credit losses | | | | | | | 114 | 86 | 84 | 60 | | Provision for employee entitlements | | | | | | | 316 | 309 | 236 | 234 | | Other provisions | | | | | | | 403 | 282 | 317 | 214 | | Software | | | | | | | 1,105 | 1,014 | 969 | 894 | | Lease liabilities | | | | | | | 492 | 523 | 390 | 416 | | Other | | | | | | | 241 | 206 | 188 | 165 | | Total | | | | | | | 3,920 | 3,636 | 3,136 | 2,881 | | Amounts recognised directly in Other Comprehensive Income: | | | | | | Foreign currency translation reserve | 36 | 15 | - | - | | Cash flow hedge reserve | | | | | | | - | 217 | - | 217 | | FVOCI reserve | | | | | | | 232 | 245 | 232 | 243 | | Other reserves | | | | | | | 9 | 2 | 7 | 1 | | Total | | | | | | | 277 | 479 | 239 | 461 | | Total deferred tax assets (before set-off) | 4,197 | 4,115 | 3,375 | 3,342 | | Set-off of deferred tax balances pursuant to set-off provisions | (870) | (813) | (422) | (592) | | Net deferred tax assets | | | | | | | 3,327 | 3,302 | 2,953 | 2,750 | | | | | | | | --- | --- | --- | --- | --- | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Deferred tax liabilities balances comprise temporary differences attributable to: | | | | | | Amounts recognised in the Income Statement: | | | | | | Intangible assets | 163 | - | - | - | | Provision for foreign tax on dividend repatriation | | | | | | | 113 | 112 | 64 | 61 | | Right-of-use assets | | | | | | | 420 | 446 | 334 | 352 | | Other | | | | | | | 182 | 222 | 74 | 182 | | Total | | | | | | | 878 | 780 | 472 | 595 | | Amounts recognised directly in Other Comprehensive Income: | | | | | | Cash flow hedge reserve | 65 | 32 | 2 | 1 | | FVOCI reserve | | | | | | | 102 | 15 | 91 | 13 | | Defined benefit obligations | | | | | | | 50 | 42 | 39 | 36 | | Other reserves | | | | | | | 1 | 8 | 1 | 8 | | Total | | | | | | | 218 | 97 | 133 | 58 | | Total deferred tax liabilities (before set-off) | 1,096 | 877 | 605 | 653 | | Set-off of deferred tax balances pursuant to set-off provisions | (870) | (813) | (422) | (592) | | Net deferred tax liabilities | | | | | | | 226 | 64 | 183 | 61 | 1. Comparative information have been restated to conform with the basis of preparation in the current year to better reflect the nature of the underlying balances. 91 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 91 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 5. Income tax(continued) Tax consolidation The Company and all its wholly owned Australian resident entities are part of a tax-consolidated group under Australian taxation law. ANZGHL is the head entity of the tax-consolidated group. We recognise each of the following in the separate financial statements of members of the tax consolidated group on a ‘group allocation’ basis: tax expense/income, and deferred tax liabilities/assets that arise from temporary differences for members of the tax- consolidated group. ANZGHL (as head entity of the tax-consolidated group) recognises current tax liabilities and assets of the tax-consolidated group. Under a tax funding arrangement between the entities in the tax-consolidated group, amounts are recognised as payable to or receivable by each member of the tax-consolidated group in relation to the tax contribution amounts paid or payable between members of the tax-consolidated group and the head entity ANZGHL. Members of the tax-consolidated group have also entered into a tax sharing agreement that provides for the allocation of income tax liabilities between the entities were the head entity to default on its income tax payment obligations . Unrecognised deferred tax assets and liabilities Unrecognised deferred tax assets related to unused realised tax losses (on revenue account) total $2 million (2024: $10 million) for the Group and $1 million (2024: nil) for the Company. Unrecognised deferred tax liabilities related to additional potential foreign tax costs (assuming all retained earnings in offshore branches and subsidiaries are repatriated) total $263 million (2024: $251 million) for the Group and $29 million (2024: $27 million) for the Company. #### Recognition and measurement Income tax expense Income tax expense comprises both current and deferred taxes and is based on the accounting profit adjusted for differences in the accounting and tax treatments of income and expenses (that is, taxable income). We recognise tax expense in profit or loss except when the tax relates to items recognised directly in equity and other comprehensive income, in which case we recognise the tax directly in equity or other comprehensive income respectively. Current tax expense Current tax is the tax we expect to pay on taxable income for the year, based on tax rates (and tax laws) which are enacted at the reporting date. We recognise current tax as a liability (or asset) to the extent that it is unpaid (or refundable). Deferred tax assets and liabilities We account for deferred tax using the balance sheet method. Deferred tax arises because the accounting income is not always the same as the taxable income. This creates temporary differences, which usually reverse over time. Until they reverse, we recognise a deferred tax asset, or liability, on the balance sheet. We measure deferred taxes at the tax rates that we expect will apply to the period(s) when the asset is realised, or the liability settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date. We offset current and deferred tax assets and liabilities only to the extent that: • they relate to income taxes imposed by the same taxation authority; • there is a legal right and intention to settle on a net basis; and • it is allowed under the tax law of the relevant jurisdiction. The Group does not recognise or disclose any deferred taxes arising from tax law enacted or substantively enacted in the jurisdictions in which the Group operates to implement the Pillar Two Model Rules published by The Organisation for Economic Co-Operation and Development. #### Key judgements and estimates Judgement is required in determining provisions held in respect of uncertain tax positions. The Group estimates its tax liabilities based on its understanding of the relevant law in each of the countries in which it operates and seeks independent advice where appropriate. 92 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 92 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 92 5. Income tax (continued) Tax consolidation The Company and all its wholly owned Australian resident entities are part of a tax-consolidated group under Australian taxation law. ANZGHL is the head entity of the tax-consolidated group. We recognise each of the following in the separate financial statements of members of the tax consolidated group on a ‘group allocation’ basis: tax expense/income, and deferred tax liabilities/assets that arise from temporary differences for members of the tax- consolidated group. ANZGHL (as head entity of the tax-consolidated group) recognises current tax liabilities and assets of the tax-consolidated group. Under a tax funding arrangement between the entities in the tax-consolidated group, amounts are recognised as payable to or receivable by each member of the tax-consolidated group in relation to the tax contribution amounts paid or payable between members of the tax-consolidated group and the head entity ANZGHL. Members of the tax-consolidated group have also entered into a tax sharing agreement that provides for the allocation of income tax liabilities between the entities were the head entity to default on its income tax payment obligations . Unrecognised deferred tax assets and liabilities Unrecognised deferred tax assets related to unused realised tax losses (on revenue account) total $2 million (2024: $10 million) for the Group and $1 million (2024: nil) for the Company. Unrecognised deferred tax liabilities related to additional potential foreign tax costs (assuming all retained earnings in offshore branches and subsidiaries are repatriated) total $263 million (2024: $251 million) for the Group and $29 million (2024: $27 million) for the Company. Income tax expense Income tax expense comprises both current and deferred taxes and is based on the accounting profit adjusted for differences in the accounting and tax treatments of income and expenses (that is, taxable income). We recognise tax expense in profit or loss except when the tax relates to items recognised directly in equity and other comprehensive income, in which case we recognise the tax directly in equity or other comprehensive income respectively. Current tax expense Current tax is the tax we expect to pay on taxable income for the year, based on tax rates (and tax laws) which are enacted at the reporting date. We recognise current tax as a liability (or asset) to the extent that it is unpaid (or refundable). Deferred tax assets and liabilities We account for deferred tax using the balance sheet method. Deferred tax arises because the accounting income is not always the same as the taxable income. This creates temporary differences, which usually reverse over time. Until they reverse, we recognise a deferred tax asset, or liability, on the balance sheet. We measure deferred taxes at the tax rates that we expect will apply to the period(s) when the asset is realised, or the liability settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date. We offset current and deferred tax assets and liabilities only to the extent that: • they relate to income taxes imposed by the same taxation authority; • there is a legal right and intention to settle on a net basis; and • it is allowed under the tax law of the relevant jurisdiction. The Group does not recognise or disclose any deferred taxes arising from tax law enacted or substantively enacted in the jurisdictions in which the Group operates to implement the Pillar Two Model Rules published by The Organisation for Economic Co-Operation and Development. Judgement is required in determining provisions held in respect of uncertain tax positions. The Group estimates its tax liabilities based on its understanding of the relevant law in each of the countries in which it operates and seeks independent advice where appropriate. #### Key judgements and estimates #### Recognition and measurement 92 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 6. Dividends Ordinary share dividends Dividends determined by the Company’s Board are recognised with a corresponding reduction of retained earnings on the dividend payment date. Accordingly, the final dividend proposed for the current financial year is paid in the following financial year. | | | | | --- | --- | --- | | | Amount | Total dividend | | Dividends | per share | $m | | Financial Year 2024 | | | | 2023 final dividend paid to ANZ BH Pty Ltd | 92 cents | 2,771 | | 2024 interim dividend paid to ANZ BH Pty Ltd | 83 cents | 2,496 | | Dividends paid during the y | | | | ear ended 30 September 2024 | | 5,267 | | Financial Year 2025 | | | | 2024 final dividend paid to ANZ BH Pty Ltd | 82 cents | 2,472 | | 2025 interim dividend paid to ANZ BH Pty Ltd | | | | | 70 cents | 2,108 | | Dividends paid during the year ended 30 September 2025 | | | | | | 4,580 | | | | | | | --- | --- | --- | --- | | | | Amount | Total dividend | | Dividends proposed and to be paid after year-end | Payment date | per share | $m | | 2025 final dividend | 19 December 2025 | 82 cents | 2,476 | Restrictions on the payment of dividends APRA’s written approval is required before paying dividends on the ordinary shares of the Company if: • the aggregate dividends exceed the Company’s after tax earnings (in calculating those after tax earnings, we take into account any payments we made on senior capital instruments) in the financial year to which they relate; or • the Group’s Common Equity Tier 1 capital ratio falls within capital range buffers specified by APRA. If the Company fails to pay a dividend or distribution on its ANZ Capital Notes or ANZ Capital Securities on the scheduled payment date, it may (subject to a number of exceptions) be restricted from resolving to pay or paying any dividend on the Company’s ordinary shares. 93 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 93 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 7. Segment reporting Description of segments The Group’s operating segments are presented on a basis that is consistent with the information provided internally to the Chief Executive Officer (CEO), who is the chief operating decision maker. This reflects the way the Group’s businesses are managed, rather than the legal structure of the Group. We measure the performance of operating segments on a cash profit basis. To calculate cash profit, we exclude items from profit after tax attributable to shareholders. The adjustments include impacts of economic hedges and revenue and expense hedges which represent timing differences that will reverse through earnings in the future. A number of intangible assets were recognised as part of the Suncorp Bank acquisition accounting and the amortisation of these intangible assets is treated as a cash profit adjustment from 2025. Transactions between divisions across segments within the Group are conducted on an arm’s-length basis and where relevant disclosed as part of the income and expenses of these segments. The reportable segments are divisions engaged in providing either different products or services or similar products and services in different geographical areas. They are as follows: Australia Retail The Australia Retail division provides a full range of banking services to Australian consumers. This includes Home Loans, Deposits, Credit Cards and Personal Loans. Products and services are provided via the branch network, home loan specialists, contact centres, a variety of self-service channels (digital and internet banking, website, ATMs and phone banking) and third-party brokers. Australia Commercial The Australia Commercial division provides a full range of banking products and financial services, including asset financing, across the following customer segments: SME Banking (small business owners and medium commercial customers), and Diversified & Specialist Businesses (large commercial customers, and high net worth individuals and family groups). Institutional The Institutional division services global institutional and corporate customers, and governments across Australia, New Zealand and International (including Papua New Guinea (PNG)) via the following business units: • Transaction Banking provides customers with working capital and liquidity solutions including documentary trade, supply chain financing, commodity financing as well as cash management solutions, deposits, payments and clearing. • Corporate Finance provides customers with loan products, loan syndication, specialised loan structuring and execution, project and export finance, debt structuring and acquisition finance, and sustainable finance solutions. • Markets provides customers with risk management services in foreign exchange, interest rates, credit, commodities, and debt capital markets in addition to managing the Group's interest rate exposure and liquidity position. New Zealand The New Zealand division comprises the following business units: • Personal provides a full range of banking and wealth management services to consumer and private banking customers. We deliver our services via our internet and app-based digital solutions and a network of branches, mortgage specialists, private bankers and contact centres. • Business & Agri provides a full range of banking services through our digital, branch and contact centre channels, and traditional relationship bank ing and sophisticated financial solutions through dedicated managers. These cover privately owned small and medium enterprises, and the agricultural business segment. Suncorp Bank The Suncorp Bank division provides banking and related services to retail, commercial, small and medium enterprises and agribusiness customers in Australia. Pacific The Pacific division provides products and services to retail and commercial customers (including multi-nationals) and to governments located in the Pacific region, excluding PNG which forms part of the Institutional division. Group Centre Group Centre division provides support to the operating divisions, including technology, property, risk management, financial management, treasury, strategy, marketing, human resources, corporate affairs, and shareholder functions. It also includes minority investments in Asia. 94 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 94 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 94 7. Segment reporting Description of segments The Group’s operating segments are presented on a basis that is consistent with the information provided internally to the Chief Executive Officer (CEO), who is the chief operating decision maker. This reflects the way the Group’s businesses are managed, rather than the legal structure of the Group. We measure the performance of operating segments on a cash profit basis. To calculate cash profit, we exclude items from profit after tax attributable to shareholders. The adjustments include impacts of economic hedges and revenue and expense hedges which represent timing differences that will reverse through earnings in the future. A number of intangible assets were recognised as part of the Suncorp Bank acquisition accounting and the amortisation of these intangible assets is treated as a cash profit adjustment from 2025. Transactions between divisions across segments within the Group are conducted on an arm’s-length basis and where relevant disclosed as part of the income and expenses of these segments. The reportable segments are divisions engaged in providing either different products or services or similar products and services in different geographical areas. They are as follows: Australia Retail The Australia Retail division provides a full range of banking services to Australian consumers. This includes Home Loans, Deposits, Credit Cards and Personal Loans. Products and services are provided via the branch network, home loan specialists, contact centres, a variety of self-service channels (digital and internet banking, website, ATMs and phone banking) and third-party brokers. Australia Commercial The Australia Commercial division provides a full range of banking products and financial services, including asset financing, across the following customer segments: SME Banking (small business owners and medium commercial customers), and Diversified & Specialist Businesses (large commercial customers, and high net worth individuals and family groups). Institutional The Institutional division services global institutional and corporate customers, and governments across Australia, New Zealand and International (including Papua New Guinea (PNG)) via the following business units: • Transaction Banking provides customers with working capital and liquidity solutions including documentary trade, supply chain financing, commodity financing as well as cash management solutions, deposits, payments and clearing. • Corporate Finance provides customers with loan products, loan syndication, specialised loan structuring and execution, project and export finance, debt structuring and acquisition finance, and sustainable finance solutions. • Markets provides customers with risk management services in foreign exchange, interest rates, credit, commodities, and debt capital markets in addition to managing the Group's interest rate exposure and liquidity position. New Zealand The New Zealand division comprises the following business units: • Personal provides a full range of banking and wealth management services to consumer and private banking customers. We deliver our services via our internet and app-based digital solutions and a network of branches, mortgage specialists, private bankers and contact centres. • Business & Agri provides a full range of banking services through our digital, branch and contact centre channels, and traditional relationship bank ing and sophisticated financial solutions through dedicated managers. These cover privately owned small and medium enterprises, and the agricultural business segment. Suncorp Bank The Suncorp Bank division provides banking and related services to retail, commercial, small and medium enterprises and agribusiness customers in Australia. Pacific The Pacific division provides products and services to retail and commercial customers (including multi-nationals) and to governments located in the Pacific region, excluding PNG which forms part of the Institutional division. Group Centre Group Centre division provides support to the operating divisions, including technology, property, risk management, financial management, treasury, strategy, marketing, human resources, corporate affairs, and shareholder functions. It also includes minority investments in Asia. 94 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 7. Segment reporting (continued) Operating segments Consolidated | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Australia | | | | | | | | | | Retail | | | | | | | | | | | Australia | | | | | | | | | | Commercial | Institutional | | | | | | | | | | | New | | | | | | | | | | Zealand | | | | | | | | | | | Suncorp | | | | | | | | | | Bank | Pacific | | | | | | | | | | | Group | | | | | | | | | | Centre | | | | | | | | | | | Group | | | | | | | | | | Total | | Year ended 30 September 2025 | $m | $m | $m | $m | $m | $m | $m | $m | | Net interest income | | | | | | | | | | | 5,246 | 3,180 | 4,154 | 3,239 | 1,640 | 108 | 336 | 17,903 | | Net fee and commission income | 513 | 275 | 677 | 383 | 53 | 12 | (25) | 1,888 | | Other income | | | | | | | | | | 1,2 | | | | | | | | | | | 113 | 31 | 1,981 | 2 | 13 | 77 | (147) | 2,070 | | Operating income | | | | | | | | | | 1,2 | | | | | | | | | | | 5,872 | 3,486 | 6,812 | 3,624 | 1,706 | 197 | 164 | 21,861 | | Operating expenses | | | | | | | | | | 3 | | | | | | | | | | | (4,015) | (1,520) | (3,081) | (1,407) | (1,073) | (144) | (1,483) | (12,723) | | Cash profit/(loss) before credit impairment | | | | | | | | | | and income tax | | | | | | | | | | | 1,857 | 1,966 | 3,731 | 2,217 | 633 | 53 | (1,319) | 9,138 | | Credit impairment (charge)/release | (289) | (102) | (31) | 19 | (36) | 4 | - | (435) | | Cash profit/(loss) before income tax | | | | | | | | | | | 1,568 | 1,864 | 3,700 | 2,236 | 597 | 57 | (1,319) | 8,703 | | Income tax (expense)/benefit | | | | | | | | | | 1,2,3 | | | | | | | | | | | (520) | (562) | (1,092) | (627) | (179) | (12) | 261 | (2,731) | | Non-controlling interests | | | | | | | | | | | - | - | - | - | - | (2) | (39) | (41) | | Cash profit/(loss) | | | | | | | | | | | 1,048 | 1,302 | 2,608 | 1,609 | 418 | 43 | (1,097) | 5,931 | | Economic hedges | | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | 128 | | Revenue and expense hedges | | | | | | | | | | 2 | | | | | | | | | | | | | | | | | | 76 | | Amortisation of acquired intangibles | | | | | | | | | | 3 | | | | | | | | | | | | | | | | | | (100) | | Profit attributable to shareholders of the Company | | | | | | | | | | | | | | | | | | 6,035 | | Includes non-cash items: | | | | | | | | | | Share of associates’ profit/(loss) | - | - | - | - | - | - | 106 | 106 | | Depreciation and amortisation | | | | | | | | | | 4 | | | | | | | | | | | (46) | (8) | (176) | (99) | (69) | (9) | (550) | (1,100) | | Investment in associates impairment | | | | | | | | | | | - | - | - | - | - | - | (285) | (285) | | Software impairment | | | | | | | | | | | (6) | - | - | - | - | - | (64) | (70) | | Equity-settled share-based payment expenses | | | | | | | | | | | (8) | (5) | (74) | (3) | (2) | (1) | (28) | (121) | | Credit impairment (charge)/release | | | | | | | | | | | (289) | (102) | (31) | 19 | (36) | 4 | - | (435) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Australia | | | | | | | | | | Retail | | | | | | | | | | | Australia | | | | | | | | | | Commercial | Institutional | | | | | | | | | | | New | | | | | | | | | | Zealand | | | | | | | | | | | Suncorp | | | | | | | | | | Bank | | | | | | | | | | 3 | | | | | | | | | | | | | | | | | | | | | Pacific | | | | | | | | | | | Group | | | | | | | | | | Centre | | | | | | | | | | | Group | | | | | | | | | | Total | | Financial position | | | | | | | | | | | $m | $m | $m | $m | $m | $m | $m | $m | | Goodwill | | | | | | | | | | | 100 | - | 1,193 | 1,526 | 1,346 | - | - | 4,165 | | Investments in associates | - | - | - | - | - | - | 1,140 | 1,140 | | Total external assets | | | | | | | | | | | 351,601 | 67,524 | 632,279 | 126,104 | 89,369 | 3,354 | 27,440 | 1,297,671 | | Total external liabilities | | | | | | | | | | | 190,522 | 123,936 | 502,702 | 120,644 | 82,791 | 3,858 | 202,773 | 1,227,226 | 1. The cash profit adjustment for economic hedges applies to the Institutional, New Zealand, Suncorp Bank and Group Centre divisions with $178 million gain recognised in Other operating income and $50 million expense recognised in Income tax expense. 2. The cash profit adjustment for revenue and expense hedges applies to the Group Centre division with $109 million gain recognised in Other operating income and $33 million expense recognised in Income tax expense. 3. The cash profit adjustment for amortisation of acquired intangibles applies to the Suncorp Bank division with $143 million loss recognised in Operating expenses and $43 million in Income tax benefit. 4. Group total depreciation and amortisation includes $143 million of amortisation of acquired intangibles recognised as a cash profit adjustment and applies to the Suncorp Bank division. 95 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 95 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 7. Segment reporting (continued) Operating segments C C o o n n s s o o l l i i d d a a t t e e d d | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Australia | | | | | | | | | | Retail | | | | | | | | | | | Australia | | | | | | | | | | Commercial | Institutional | | | | | | | | | | | New | | | | | | | | | | Zealand | | | | | | | | | | | Suncorp | | | | | | | | | | Bank | Pacific | | | | | | | | | | | Group | | | | | | | | | | Centre | | | | | | | | | | | Group | | | | | | | | | | Total | | Year ended 30 September 2024 | $m | $m | $m | $m | $m | $m | $m | $m | | Net interest income | 5,223 | 3,164 | 3,741 | 3,143 | 251 | 123 | 392 | 16,037 | | Net fee and commission income | 531 | 300 | 740 | 399 | 6 | 14 | (26) | 1,964 | | Other income | | | | | | | | | | 1,2 | | | | | | | | | | | | | | | | | | | | | 133 | 42 | 2,408 | - | - | 77 | 122 | 2,782 | | Operating income | | | | | | | | | | 1,2 | | | | | | | | | | | | | | | | | | | | | 5,887 | 3,506 | 6,889 | 3,542 | 257 | 214 | 488 | 20,783 | | Operating expenses | (3,516) | (1,507) | (2,875) | (1,376) | (188) | (138) | (1,069) | (10,669) | | Cash profit/(loss) before credit impairment | | | | | | | | | | and income tax | | | | | | | | | | | 2,371 | 1,999 | 4,014 | 2,166 | 69 | 76 | (581) | 10,114 | | Credit impairment (charge)/release | (71) | (80) | 10 | (28) | (243) | 8 | (2) | (406) | | Cash profit/(loss) before income tax | 2,300 | 1,919 | 4,024 | 2,138 | (174) | 84 | (583) | 9,708 | | Income tax (expense)/benefit | | | | | | | | | | 1,2 | | | | | | | | | | | | | | | | | | | | | (693) | (577) | (1,166) | (602) | 52 | (22) | 120 | (2,888) | | Non-controlling interests | - | - | - | - | - | (2) | (33) | (35) | | Cash profit/(loss) | 1,607 | 1,342 | 2,858 | 1,536 | (122) | 60 | (496) | 6,785 | | Economic hedges | | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | (264) | | Revenue and expense hedges | | | | | | | | | | 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | 74 | | Amortisation of acquired intangibles | | | | | | | | - | | Profit after tax attributable to shareholders | | | | | | | | 6,595 | Includes non-cash items: Share of associates’ profit/(loss) - - - - - - 134 134 Depreciation and amortisation (56) (6) (171) (107) (46) (9) (550) (945) Equity-settled share-based payment expenses (6) (5) (97) (5) - (1) (25) (139) Credit impairment (charge)/release (71) (80) 10 (28) (243) 8 (2) (406) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Australia | | | | | | | | | | Retail | | | | | | | | | | | Australia | | | | | | | | | | Commercial | Institutional | | | | | | | | | | | New | | | | | | | | | | Zealand | | | | | | | | | | | Suncorp | | | | | | | | | | Bank | | | | | | | | | | 3 | | | | | | | | | | | | | | | | | | | | | Pacific | | | | | | | | | | | Group | | | | | | | | | | Centre | | | | | | | | | | | Group | | | | | | | | | | Total | | Financial position | $m | $m | $m | $m | $m | $m | $m | $m | | Goodwill | 100 | - | 1,245 | 1,596 | 1,402 | - | - | 4,343 | | Investments in associates | - | - | - | - | - | - | 1,415 | 1,415 | | Total external assets | 335,356 | 65,456 | 574,998 | 127,032 | 87,185 | 3,162 | 36,396 | 1,229,585 | | Total external liabilities | 180,801 | 122,029 | 460,053 | 120,203 | 81,610 | 3,686 | 192,443 | 1,160,825 | 1. The cash profit adjustment for economic hedges applies to the Institutional, New Zealand, Suncorp Bank and Group Centre divisions with $368 million loss recognised in Other operating income and $104 million benefit recognised in Income tax expense. 2. The cash profit adjustment for revenue and expense hedges applies to the Group Centre division with $106 million gain recognised in Other operating income and $32 million expense recognised in Income tax expense. 3. Assets acquired and liabilities assumed are disclosed on a provisional basis. Refer to Note 33 Suncorp Bank acquisition for more information. 96 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 96 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 96 7. Segment reporting (continued) Operating segments C C o o n n s s o o l l i i d d a a t t e e d d Australia Retail Australia Commercial Institutional New Zealand Suncorp Bank Pacific Group Centre Group Total Year ended 30 September 2024 $m $m $m $m $m $m $m $m Net interest income 5,223 3,164 3,741 3,143 251 123 392 16,037 Net fee and commission income 531 300 740 399 6 14 (26) 1,964 Other income 1,2 133 42 2,408 - - 77 122 2,782 Operating income 1,2 5,887 3,506 6,889 3,542 257 214 488 20,783 Operating expenses (3,516) (1,507) (2,875) (1,376) (188) (138) (1,069) (10,669) Cash profit/(loss) before credit impairment and income tax 2,371 1,999 4,014 2,166 69 76 (581) 10,114 Credit impairment (charge)/release (71) (80) 10 (28) (243) 8 (2) (406) Cash profit/(loss) before income tax 2,300 1,919 4,024 2,138 (174) 84 (583) 9,708 Income tax (expense)/benefit 1,2 (693) (577) (1,166) (602) 52 (22) 120 (2,888) Non-controlling interests - - - - - (2) (33) (35) Cash profit/(loss) 1,607 1,342 2,858 1,536 (122) 60 (496) 6,785 Economic hedges 1 (264) Revenue and expense hedges 2 74 Amortisation of acquired intangibles - Profit after tax attributable to shareholders 6,595 Includes non-cash items: Share of associates’ profit/(loss) - - - - - - 134 134 Depreciation and amortisation (56) (6) (171) (107) (46) (9) (550) (945) Equity-settled share-based payment expenses (6) (5) (97) (5) - (1) (25) (139) Credit impairment (charge)/release (71) (80) 10 (28) (243) 8 (2) (406) Australia Retail Australia Commercial Institutional New Zealand Suncorp Bank 3 Pacific Group Centre Group Total Financial position $m $m $m $m $m $m $m $m Goodwill 100 - 1,245 1,596 1,402 - - 4,343 Investments in associates - - - - - - 1,415 1,415 Total external assets 335,356 65,456 574,998 127,032 87,185 3,162 36,396 1,229,585 Total external liabilities 180,801 122,029 460,053 120,203 81,610 3,686 192,443 1,160,825 1. The cash profit adjustment for economic hedges applies to the Institutional, New Zealand, Suncorp Bank and Group Centre divisions with $368 million loss recognised in Other operating income and $104 million benefit recognised in Income tax expense. 2. The cash profit adjustment for revenue and expense hedges applies to the Group Centre division with $106 million gain recognised in Other operating income and $32 million expense recognised in Income tax expense. 3. Assets acquired and liabilities assumed are disclosed on a provisional basis. Refer to Note 33 Suncorp Bank acquisition for more information. 96 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 7. Segment reporting (continued) Segment income by products and services The primary sources of our external income across all divisions are interest income and other operating income, which includes net fee and commission income, net foreign exchange earnings and other financial instruments income. The Australia Retail, Australia Commercial, New Zealand, Suncorp Bank, and Pacific divisions derive income from products and services in retail and commercial banking. The Institutional division derives its income from institutional products and market services. No single customer amounts to greater than 10% of the Group’s income. Geographical information The reportable segments operate across three geographical regions as follows: • Australia Retail division - Australia • Australia Commercial division - Australia • Institutional division - all three geographical regions • New Zealand division - New Zealand • Suncorp Bank division - Australia • Pacific division – Rest of World • Group Centre division - all three geographical regions The Rest of World geography includes Asia, Pacific, Europe and the Americas. The following table sets out total operating income earned and assets to be recovered in more than one year based on the geographical regions in which the Group operates. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Australia | | New Zealand | | Rest of World | | Total | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | $m | $m | $m | $m | | Total operating income | | | | | | | | | | | 14,180 | 12,794 | 4,893 | 4,400 | 3,075 | 3,327 | 22,148 | 20,521 | | Assets to be recovered in more than one year | | | | | | | | | | 1 | | | | | | | | | | | 524,001 | 498,091 | 123,343 | 121,455 | 36,347 | 25,444 | 683,691 | 644,990 | 1. Represents Net loans and advances based on the contractual maturity. 97 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 97 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Financial assets and other trading assets Outlined below is a description of how we classify and measure financial assets relevant to Note 8 to 13. #### Classification and measurement Financial assets - general There are three measurement classifications for financial assets under AASB 9 Financial Instruments (AASB 9): amortised cost, FVTPL and FVOCI. Financial assets are classified into these measurement classifications on the basis of two criteria: • the business model within which the financial asset is managed; and • the contractual cash flow characteristics of the financial asset (specifically whether the contractual cash flows represent solely payments of principal and interest). The resultant financial asset classifications are as follows: • Amortised cost: Financial assets with contractual cash flows that comprise solely payments of principal and interest and which are held in a business model whose objective is to collect their cash flows; • FVOCI: Financial assets with contractual cash flows that comprise solely payments of principal and interest and which are held in a business model whose objective is to collect their cash flows or to sell the assets; and • FVTPL: Any other financial assets not falling into the categories above are measured at FVTPL. Fair value option for financial assets A financial asset may be irrevocably designated on initial recognition: • at FVTPL when the designation eliminates or significantly reduces an accounting mismatch that would otherwise arise; or • at FVOCI for investments in equity securities, where that instrument is neither held for trading nor contingent consideration recognised by an acquirer in a business combination. 8. Cash and cash equivalents Cash and cash equivalents comprise coins, notes, money at call, reverse repurchase agreements of less than 3 months, balances held with central banks and other banks, and other cash equivalents that are readily convertible to known amounts of cash with insignificant risk of changes in value. | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Coins, notes and cash at bank | | | | | | | 1,203 | 1,196 | 824 | 843 | | Reverse repurchase agreements | 56,428 | 44,125 | 54,773 | 41,307 | | Balances with central banks | | | | | | 1 | | | | | | | 92,436 | 101,124 | 85,711 | 91,709 | | Balances with other banks and other cash equivalents | | | | | | 1 | | | | | | | 5,142 | 4,520 | 3,752 | 3,429 | | Cash and cash equivalents | | | | | | | 155,209 | 150,965 | 145,060 | 137,288 | 1. Comparative information have been restated to conform with the basis of preparation in the current year to better reflect the nature of the underlying cash and cash equivalents. 98 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 98 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 98 #### Financial assets and other trading assets Outlined below is a description of how we classify and measure financial assets relevant to Note 8 to 13. Financial assets - general There are three measurement classifications for financial assets under AASB 9 Financial Instruments (AASB 9): amortised cost, FVTPL and FVOCI. Financial assets are classified into these measurement classifications on the basis of two criteria: • the business model within which the financial asset is managed; and • the contractual cash flow characteristics of the financial asset (specifically whether the contractual cash flows represent solely payments of principal and interest). The resultant financial asset classifications are as follows: • Amortised cost: Financial assets with contractual cash flows that comprise solely payments of principal and interest and which are held in a business model whose objective is to collect their cash flows; • FVOCI: Financial assets with contractual cash flows that comprise solely payments of principal and interest and which are held in a business model whose objective is to collect their cash flows or to sell the assets; and • FVTPL: Any other financial assets not falling into the categories above are measured at FVTPL. Fair value option for financial assets A financial asset may be irrevocably designated on initial recognition: • at FVTPL when the designation eliminates or significantly reduces an accounting mismatch that would otherwise arise; or • at FVOCI for investments in equity securities, where that instrument is neither held for trading nor contingent consideration recognised by an acquirer in a business combination. 8. Cash and cash equivalents Cash and cash equivalents comprise coins, notes, money at call, reverse repurchase agreements of less than 3 months, balances held with central banks and other banks, and other cash equivalents that are readily convertible to known amounts of cash with insignificant risk of changes in value. Consolidated The Company 2025 2024 2025 2024 $m $m $m $m Coins, notes and cash at bank 1,203 1,196 824 843 Reverse repurchase agreements 56,428 44,125 54,773 41,307 Balances with central banks 1 92,436 101,124 85,711 91,709 Balances with other banks and other cash equivalents 1 5,142 4,520 3,752 3,429 Cash and cash equivalents 155,209 150,965 145,060 137,288 1. Comparative information have been restated to conform with the basis of preparation in the current year to better reflect the nature of the underlying cash and cash equivalents. #### Classification and measurement 98 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 9. Trading assets | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Government debt securities and notes | | | | | | | 34,809 | 35,276 | 28,601 | 28,796 | | Corporate and financial institution securities | 4,353 | 4,057 | 3,086 | 3,365 | | Commodities | | | | | | | 9,076 | 6,399 | 8,911 | 6,243 | | Equity and Other securities | | | | | | | 10 | 23 | 10 | 23 | | Total | | | | | | | 48,248 | 45,755 | 40,608 | 38,427 | #### Recognition and measurement Trading assets are financial instruments or other assets we either: • Acquire principally for the purpose of selling in the short-term; or • Hold as part of a portfolio we manage for short-term profit making. Trading assets include commodity inventories measured at fair value less cost to sell in accordance with the broker trader exemption under AASB 102 Inventories. We recognise purchases and sales of trading assets on trade date: • Initially, we measure them at fair value; and • Subsequentl y, we measure them in the Balance Sheet at their fair value with any change in fair value recognised in profit or loss. Assets disclosed as Trading assets are subject to t he general classification and measurement policy for Financial Assets outlined at the commencement of the Group’s financial assets disclosures on page 98. #### Key judgements and estimates Judgement is required when applying the valuation techniques used to determine the fair value of trading assets not valued using quoted market prices. Refer to Note 18 Fair value of financial assets and financial liabilities for further details. 2024 2025 35,276 23 4,057 6,399 34,809 10 4,353 9,076 Government debt securities and notes Corporate and financial institution securities Commodities Other securities 99 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 99 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 10. Derivative financial instruments | | | | | | | --- | --- | --- | --- | --- | | Consolidated | | | | | | | Assets | Liabilities | Assets | Liabilities | | | 2025 | 2025 | 2024 | 2024 | | Fair value | | | | | | | $m | $m | $m | $m | | Derivative financial instruments - held for trading | | | | | | | 47,242 | (43,564) | 53,889 | (54,798) | | Derivative financial instruments - designated in hedging relationships | 238 | (338) | 481 | (456) | | Derivative financial instruments | | | | | | | 47,480 | (43,902) | 54,370 | (55,254) | | | | | | | | --- | --- | --- | --- | --- | | The Company | | | | | | | Assets | Liabilities | Assets | Liabilities | | | 2025 | 2025 | 2024 | 2024 | | Fair value | | | | | | | $m | $m | $m | $m | | Derivative financial instruments - held for trading | | | | | | | 50,418 | (47,607) | 57,370 | (57,257) | | Derivative financial instruments - designated in hedging relationships | 113 | (162) | 257 | (210) | | Derivative financial instruments | | | | | | | 50,531 | (47,769) | 57,627 | (57,467) | Features Derivative financial instruments are contracts: • Whose value is derived from an underlying price index (or other variable) defined in the contract - sometimes the value is derived from more than one variable; • That require little or no initial net investment; and • That are settled at a future date. Movements in the price of the underlying variables, which cause the value of the contract to fluctuate, are reflected in the fair value of the derivative. Purpose The Group’s derivative financial instruments have been categorised as follows: | | | | --- | --- | | | | | rading | Derivatives held in order to: | | | • | | | meet customer needs for managing their own risks. | | | • | | | manage risks in the Group that are not in a designated hedge accounting relationship (some elements of balance | | | sheet management). | | | • | | | undertake market making and positioning activities to generate profits from short-term fluctuations in prices or margins. | | Designated in Hedging | | | Relationships | | | | Derivatives designated into hedge accounting relationships in order to minimise profit or loss volatility by matching | | | movements in underlying positions relating to: | | | • | | | hedges of the Group’s exposures to interest rate risk and currency risk. | | | • | | | hedges of other exposures relating to non-trading positions. | Types The Group offers or uses four different types of derivative financial instruments: | | | | --- | --- | | Forwards | A contract documenting the rate of interest, or the currency exchange rate, to be paid or received on a notional principal | | | amount at a future date. | | Futures | An exchange traded contract in which the parties agree to buy or sell an asset in the future for a price agreed on the | | | transaction date, with a net settlement in cash paid on the future date without physical delivery of the asset. | | Swaps | A contract in which two parties exchange one series of cash flows for another. | | Options | A contract in which the buyer of the contract has the right - but not the obligation - to buy (known as a ‘call option’) or to | | | sell (known as a ‘put option’) an asset or instrument at a set price on a future date. The seller has the corresponding | | | obligation to fulfil the transaction to sell or buy the asset or instrument if the buyer exercises the option. | 100 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 100 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 100 10. Derivative financial instruments Consolidated Assets Liabilities Assets Liabilities 2025 2025 2024 2024 Fair value $m $m $m $m Derivative financial instruments - held for trading 47,242 (43,564) 53,889 (54,798) Derivative financial instruments - designated in hedging relationships 238 (338) 481 (456) Derivative financial instruments 47,480 (43,902) 54,370 (55,254) The Company Assets Liabilities Assets Liabilities 2025 2025 2024 2024 Fair value $m $m $m $m Derivative financial instruments - held for trading 50,418 (47,607) 57,370 (57,257) Derivative financial instruments - designated in hedging relationships 113 (162) 257 (210) Derivative financial instruments 50,531 (47,769) 57,627 (57,467) Features Derivative financial instruments are contracts: • Whose value is derived from an underlying price index (or other variable) defined in the contract - sometimes the value is derived from more than one variable; • That require little or no initial net investment; and • That are settled at a future date. Movements in the price of the underlying variables, which cause the value of the contract to fluctuate, are reflected in the fair value of the derivative. Purpose The Group’s derivative financial instruments have been categorised as follows: T rading Derivatives held in order to: • meet customer needs for managing their own risks. • manage risks in the Group that are not in a designated hedge accounting relationship (some elements of balance sheet management). • undertake market making and positioning activities to generate profits from short-term fluctuations in prices or margins. Designated in Hedging Relationships Derivatives designated into hedge accounting relationships in order to minimise profit or loss volatility by matching movements in underlying positions relating to: • hedges of the Group’s exposures to interest rate risk and currency risk. • hedges of other exposures relating to non-trading positions. Types The Group offers or uses four different types of derivative financial instruments: Forwards A contract documenting the rate of interest, or the currency exchange rate, to be paid or received on a notional principal amount at a future date. Futures An exchange traded contract in which the parties agree to buy or sell an asset in the future for a price agreed on the transaction date, with a net settlement in cash paid on the future date without physical delivery of the asset. Swaps A contract in which two parties exchange one series of cash flows for another. Options A contract in which the buyer of the contract has the right - but not the obligation - to buy (known as a ‘call option’) or to sell (known as a ‘put option’) an asset or instrument at a set price on a future date. The seller has the corresponding obligation to fulfil the transaction to sell or buy the asset or instrument if the buyer exercises the option. 100 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 10. Derivative financial instruments (continued) Risks managed The Group offers and uses the instruments described above to manage fluctuations in the following: | | | | --- | --- | | Foreign Exchange | Currencies at current or determined rates of exchange. | | Interest Rate | Fixed or variable interest rates applying to money lent, deposited or borrowed. | | Commodity | Soft commodities (that is, agricultural products such as wheat, coffee, cocoa and sugar) and hard commodities (that | | | is, mined products such as gold, oil and gas). | | Credit | Risk of default by customers or third parties. | The Group uses a number of central clearing counterparties and exchanges to settle derivative transactions. Different arrangements for posting of collateral exist with these exchanges: • some transactions are subject to clearing arrangements which result in separate recognition of collateral assets and liabilities, with the carrying values of the associated derivative assets and liabilities held at their fair value. • other transactions, are legally settled by the payment or receipt of collateral which reduces the carrying values of the related derivative instruments by the amount paid or received. Derivative financial instruments – held for trading The majority of the Group’s derivative financial instruments are held for trading. The fair value of derivative financial instruments held for trading is: Consolidated | | | | | | | --- | --- | --- | --- | --- | | | Assets | Liabilities | Assets | Liabilities | | | | | | | | | 2025 | 2025 | 2024 | 2024 | | Fair value | | | | | | | $m | $m | $m | $m | | Interest rate contracts | | | | | | Forward rate agreements | 51 | (12) | 1 | (1) | | Futures contracts | | | | | | | 65 | (123) | 80 | (109) | | Swap agreements | | | | | | | 9,390 | (9,993) | 8,258 | (9,527) | | Options | | | | | | | 1,071 | (1,077) | 1,263 | (1,371) | | Total | | | | | | | 10,577 | (11,205) | 9,602 | (11,008) | | Foreign exchange contracts | | | | | | Spot and forward contracts | 14,183 | (13,592) | 20,008 | (21,445) | | Swap agreements | | | | | | | 18,673 | (13,819) | 21,961 | (19,612) | | Options | | | | | | | 739 | (962) | 779 | (835) | | Total | | | | | | | 33,595 | (28,373) | 42,748 | (41,892) | | Commodity and other contracts | 3,052 | (3,974) | 1,537 | (1,896) | | Credit default swaps | 18 | (12) | 2 | (2) | | Derivative financial instruments - held for trading | | | | | | 1 | | | | | | | 47,242 | (43,564) | 53,889 | (54,798) | 1. Includes derivatives held for balance sheet management which are not designated into accounting hedge relationships. 101 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 101 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 10. Derivative financial instruments (continued) Derivative financial instruments – held for trading (continued) The majority of the Company’s derivative financial instruments are held for trading. The fair value of derivative financial instruments held for trading is: | | | | | | | --- | --- | --- | --- | --- | | The Company | | | | | | | Assets | Liabilities | Assets | Liabilities | | | 2025 | 2025 | 2024 | 2024 | | Fair Value | | | | | | | $m | $m | $m | $m | | Interest rate contracts | | | | | | Forward rate agreements | 55 | (16) | 1 | (1) | | Futures contracts | | | | | | | | | | | | | 61 | (33) | 75 | (40) | | Swap agreements | | | | | | | 12,003 | (12,713) | 10,063 | (11,329) | | Options | | | | | | | 1,069 | (1,076) | 1,261 | (1,371) | | Total | | | | | | | 13,188 | (13,838) | 11,400 | (12,741) | | Foreign exchange contracts | | | | | | Spot and forward contracts | 13,574 | (13,208) | 19,396 | (20,141) | | Swap agreements | | | | | | | 19,807 | (15,543) | 24,224 | (21,611) | | Options | | | | | | | 736 | (960) | 772 | (829) | | Total | | | | | | | 34,117 | (29,711) | 44,392 | (42,581) | | Commodity and other contracts | 3,057 | (4,010) | 1,537 | (1,896) | | Credit default swaps | 56 | (48) | 41 | (39) | | Derivative financial instruments - held for trading | | | | | | 1 | | | | | | | 50,418 | (47,607) | 57,370 | (57,257) | 1. Includes derivatives held for balance sheet management which are not designated into accounting hedge relationships. 102 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 102 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 102 10. Derivative financial instruments (continued) Derivative financial instruments – held for trading (continued) The majority of the Company’s derivative financial instruments are held for trading. The fair value of derivative financial instruments held for trading is: The Company Assets Liabilities Assets Liabilities 2025 2025 2024 2024 Fair Value $m $m $m $m Interest rate contracts Forward rate agreements 55 (16) 1 (1) Futures contra cts 61 (33) 75 (40) Swap agreements 12,003 (12,713) 10,063 (11,329) Options 1,069 (1,076) 1,261 (1,371) Total 13,188 (13,838) 11,400 (12,741) Foreign exchange contracts Spot and forward contracts 13,574 (13,208) 19,396 (20,141) Swap agreements 19,807 (15,543) 24,224 (21,611) Options 736 (960) 772 (829) Total 34,117 (29,711) 44,392 (42,581) Commodity and other contracts 3,057 (4,010) 1,537 (1,896) Credit default swaps 56 (48) 41 (39) Derivative financial instruments - held for trading 1 50,418 (47,607) 57,370 (57,257) 1. Includes derivatives held for balance sheet management which are not designated into accounting hedge relationships. 102 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships Under the accounting policy choice provided by AASB 9, the Group has continued to apply the hedge accounting requirements of AASB 139 Financial Instruments: Recognition and Measurement (AASB 139). There are three types of hedge accounting relationships the Group utilises: | | | | | | --- | --- | --- | --- | | | Fair value hedge | Cash flow hedge | Net investment hedge | | Objective of this | | | | | hedging arrangement | | | | | | To hedge our exposure to changes to | | | | | the fair value of a recognised asset or | | | | | liability or unrecognised firm | | | | | commitment caused by interest rate or | | | | | foreign currency movements. | | | | | | To hedge our exposure to variability in | | | | | cash flows of a recognised asset or | | | | | liability, a firm commitment or a highly | | | | | probable forecast transaction caused | | | | | by interest rate, foreign currency and | | | | | other price movements. | | | | | | To hedge our exposure to exchange | | | | | rate differences arising from the | | | | | translation of our foreign operations | | | | | from their functional currency to | | | | | Australian dollars. | | Recognition of | | | | | effective hedge | | | | | portion | | | | | | The following are recognised in profit or | | | | | loss at the same time: | | | | | • | | | | | all changes in the fair value of the | | | | | underlying item relating to the | | | | | hedged risk; and | | | | | • | | | | | the change in the fair value of the | | | | | derivatives. | | | | | | We recognise the effective portion of | | | | | changes in the fair value of derivatives | | | | | designated as a cash flow hedge in the | | | | | cash flow hedge reserve. | | | | | | We recognise the effective portion of | | | | | changes in the fair value of the hedging | | | | | instrument in the foreign currency | | | | | translation reserve (FCTR). | | Recognition of | | | | | ineffective hedge | | | | | portion | | | | | | Recognised immediately in Other operating income. | | | | If a hedging | | | | | instrument expires, or | | | | | is sold, terminated, or | | | | | exercised; or no | | | | | longer qualifies for | | | | | hedge accounting | | | | | | When we recognise the hedged item in | | | | | profit or loss, we recognise the related | | | | | unamortised fair value hedge | | | | | adjustment in profit or loss. This may | | | | | occur over time if the hedged item is | | | | | amortised to profit or loss as part of the | | | | | effective yield over the period to | | | | | maturity. | | | | | | Only when we recognise the hedged | | | | | item in profit or loss is the amount | | | | | previously deferred in the cash flow | | | | | hedge reserve transferred to profit | | | | | or loss. | | | | | | The amount we defer in the foreign | | | | | currency translation reserve remains in | | | | | equity and is transferred to profit or | | | | | loss only when we dispose of, or | | | | | partially dispose of, the foreign | | | | | operation. | | Hedged item sold or | | | | | repaid | | | | | | We recognise the unamortised fair | | | | | value hedge adjustment immediately in | | | | | profit or loss. | | | | | | Amounts accumulated in equity are | | | | | transferred immediately to profit or | | | | | loss. | | | | | | The gain or loss, or applicable | | | | | proportion, we have recognised in | | | | | equity is transferred to profit or loss on | | | | | disposal or partial disposal of a foreign | | | | | operation. | 103 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 103 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The fair value of derivative financial instruments designated in hedging relationships is: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | | 2024 | | | | Consolidated | | | | | | | | | Nominal | | | | | | | | amount | Assets | Liabilities | | | | | | | | | Nominal | | | | | | | | amount | Assets | Liabilities | | | | | | | | | | | $m | $m | $m | $m | $m | $m | | Fair value hedges | | | | | | | | Foreign exchange spot and forward contracts | 599 | - | (1) | 571 | 14 | - | | Interest rate swap agreements | | | | | | | | | 192,596 | 46 | (273) | 175,849 | 226 | (253) | | Interest rate futures contracts | | | | | | | | | 599 | 1 | (1) | 3,151 | 11 | - | | Cash flow hedges | | | | | | | | Interest rate swap agreements | 133,923 | 136 | (62) | 154,968 | 200 | (196) | | Foreign exchange swap agreements | | | | | | | | | 705 | 52 | - | 654 | 26 | (7) | | Foreign exchange spot and forward contracts | | | | | | | | | 177 | 3 | (1) | 81 | 4 | - | | Net investment hedges | | | | | | | | Foreign exchange spot and forward contracts | - | - | - | 92 | - | - | | Derivative financial instruments - designated in | | | | | | | | hedging relationships | | | | | | | | | 328,599 | 238 | (338) | 335,366 | 481 | (456) | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | | 2024 | | | | The Company | | | | | | | | | Nominal | | | | | | | | amount | Assets | Liabilities | | | | | | | | | Nominal | | | | | | | | amount | Assets | Liabilities | | | $m | $m | $m | $m | $m | $m | | Fair value hedges | | | | | | | | Foreign exchange spot and forward contracts | 599 | - | (1) | 571 | 14 | - | | Interest rate swap agreements | | | | | | | | | 158,334 | 33 | (143) | 144,667 | 198 | (134) | | Interest rate futures contracts | | | | | | | | | 599 | 1 | (1) | 3,151 | 11 | - | | Cash flow hedges | | | | | | | | Interest rate swap agreements | 95,734 | 24 | (16) | 92,998 | 4 | (69) | | Foreign exchange swap agreements | | | | | | | | | 705 | 52 | - | 654 | 26 | (7) | | Foreign exchange spot and forward contracts | | | | | | | | | 177 | 3 | (1) | 81 | 4 | - | | Net investment hedges | | | | | | | | Foreign exchange spot and forward contracts | - | - | - | - | - | - | | Derivative financial instruments - designated in | | | | | | | | hedging relationships | | | | | | | | | 256,148 | 113 | (162) | 242,122 | 257 | (210) | 104 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 104 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 104 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The fair value of derivative financial instruments designated in hedging relationships is: 2025 2024 Consolidate d Nominal amount Assets Liabilities Nominal amount Assets Liabilities $m $m $m $m $m $m Fair value hedges Foreign exchange spot and forward contracts 599 - (1) 571 14 - Interest rate swap agreements 192,596 46 (273) 175,849 226 (253) Interest rate futures contracts 599 1 (1) 3,151 11 - Cash flow hedges Interest rate swap agreements 133,923 136 (62) 154,968 200 (196) Foreign exchange swap agreements 705 52 - 654 26 (7) Foreign exchange spot and forward contracts 177 3 (1) 81 4 - Net investment hedges Foreign exchange spot and forward contracts - - - 92 - - Derivative financial instruments - designated in hedging relationships 328,599 238 (338) 335,366 481 (456) 2025 2024 The Company Nominal amount Assets Liabilities Nominal amount Assets Liabilities $m $m $m $m $m $m Fair value hedges Foreign exchange spot and forward contracts 599 - (1) 571 14 - Interest rate swap agreements 158,334 33 (143) 144,667 198 (134) Interest rate futures contracts 599 1 (1) 3,151 11 - Cash flow hedges Interest rate swap agreements 95,734 24 (16) 92,998 4 (69) Foreign exchange swap agreements 705 52 - 654 26 (7) Foreign exchange spot and forward contracts 177 3 (1) 81 4 - Net investment hedges Foreign exchange spot and forward contracts - - - - - - Derivative financial instruments - designated in hedging relationships 256,148 113 (162) 242,122 257 (210) 104 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The maturity profile of the nominal amounts of our hedging instruments held is: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Consolidated | | | | | | | | | | | Average | | | | | | | | | | Less than | | | | | | | | | 3 | | | | | | | | | months | | | | | | | | | | 3 to 12 | | | | | | | | | months | | | | | | | | | | 1 to 5 | | | | | | | | | years | | | | | | | | | | After | | | | | | | | | 5 years | Total | | Nominal amount | | Rate | $m | $m | $m | $m | $m | | As | | | | | | | | | at 30 September 2025 | | | | | | | | | Fair value hedges | | | | | | | | | Interest rate | Interest rate | 2.89% | 7,619 | 20,388 | 94,000 | 71,188 | 193,195 | | Foreign exchange | HKD/AUD FX rate | | | | | | | | | | 5.14 | 599 | - | - | - | 599 | | Cash flow hedges | | | | | | | | | Interest rate | Interest rate | 3.22% | 11,883 | 42,949 | 78,576 | 515 | 133,923 | | Foreign exchange | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | | AUD/USD FX rate | | | | | | | | | | 0.74 | | | | | | | | | | 66 | 111 | - | 705 | 882 | | | USD/EUR FX rate | | | | | | | | | | 0.91 | | | | | | | Net investment hedges | | | | | | | | | Foreign exchange | NZD/AUD FX rate | - | - | - | - | - | - | | As at 30 September 2024 | | | | | | | | | Fair value hedges | | | | | | | | | Interest rate | Interest rate | 2.94% | 10,202 | 17,387 | 86,096 | 65,315 | 179,000 | | Foreign exchange | HKD/AUD FX rate | 5.26 | 571 | - | - | - | 571 | | Cash flow hedges | | | | | | | | | Interest rate | Interest rate | 3.11% | 20,417 | 42,091 | 91,589 | 871 | 154,968 | | Foreign exchange | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | | AUD/USD FX rate | 0.74 | | | | | | | | | | 20 | 61 | - | 654 | 735 | | | USD/EUR FX rate | 0.91 | | | | | | | Net investment hedges | | | | | | | | | Foreign exchange | NZD/AUD FX rate | 1.09 | - | 92 | - | - | 92 | 1. Hedges of foreign exchange risk cover multiple currency pairs. The table reflects the larger currency pairs only. 105 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 105 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | The Company | | | | | | | | | | | Average | | | | | | | | | | Less than | | | | | | | | | 3 | | | | | | | | | months | | | | | | | | | | 3 to 12 | | | | | | | | | months | | | | | | | | | | 1 to 5 | | | | | | | | | years | | | | | | | | | | After | | | | | | | | | 5 years | Total | | Nominal amount | | Rate | $m | $m | $m | $m | $m | | As | | | | | | | | | at 30 September 2025 | | | | | | | | | Fair value hedges | | | | | | | | | Interest rate Interest rate | | 2.88% | 7,619 | 17,741 | 69,868 | 63,705 | 158,933 | | Foreign exchange | HKD/AUD FX rate | | | | | | | | | | 5.14 | 599 | - | - | - | 599 | | Cash flow hedges | | | | | | | | | Interest rate Interest rate | | 3.01% | 5,449 | 29,828 | 59,963 | 494 | 95,734 | | Foreign exchange | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | | AUD/USD FX rate | | | | | | | | | | 0.74 | 66 | 111 | - | 705 | | | | | | | | | | 882 | | | USD/EUR FX rate | | | | | | | | | | 0.91 | | | | | | | Net investment hedges | | | | | | | | | Foreign exchange | NZD/AUD FX rate | - | - | - | - | - | - | | As at 30 September 2024 | | | | | | | | | Fair value hedges | | | | | | | | | Interest rate | Interest rate | 3.01% | 9,860 | 14,596 | 65,270 | 58,092 | 147,818 | | Foreign exchange | HKD/AUD FX rate | 5.26 | 571 | - | - | - | 571 | | Cash flow hedges | | | | | | | | | Interest rate | Interest rate | 2.55% | 8,580 | 16,580 | 67,080 | 758 | 92,998 | | Foreign exchange | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | | AUD/USD FX rate | 0.74 | 20 | 61 | - | 654 | 735 | | | USD/EUR FX rate | 0.91 | | | | | | | Net investment hedges | | | | | | | | | Foreign exchange | NZD/AUD FX rate | - | - | - | - | - | - | 1. Hedges of foreign exchange risk cover multiple currency pairs. The table reflects the larger currency pairs only. 106 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 106 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 106 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The Company Average Less than 3 months 3 to 12 months 1 to 5 years After 5 years Total Nominal amount Rate $m $m $m $m $m As a t 30 September 2025 Fair value hedges Interest rate Interest rate 2.88% 7,619 17,741 69,868 63,705 158,933 Foreign exchange HKD/AUD FX rate 5.14 599 - - - 599 Cash flow hedges Interest rate Interest rate 3.01% 5,449 29,828 59,963 494 95,734 Foreign exchange 1 AUD/USD FX rate 0.74 66 111 - 705 882 U SD/EUR FX rate 0.91 Net investment hedges Foreign exchange NZD/AUD FX rate - - - - - - As at 30 September 2024 Fair value hedges Interest rate Interest rate 3.01% 9,860 14,596 65,270 58,092 147,818 Foreign exchange HKD/AUD FX rate 5.26 571 - - - 571 Cash flow hedges Interest rate Interest rate 2.55% 8,580 16,580 67,080 758 92,998 Foreign exchange 1 AUD/USD FX rate 0.74 20 61 - 654 735 USD/EUR FX rate 0.91 Net investment hedges Foreign exchange NZD/AUD FX rate - - - - - - 1. Hedges of foreign exchange risk cover multiple currency pairs. The table reflects the larger currency pairs only. 106 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The impacts of ineffectiveness from our designated hedge relationships by type of hedge relationship and type of risk being hedged are: | | | | | | | --- | --- | --- | --- | --- | | | Ineffectiveness | | | | | | | | | Amou | | | | | | nt reclassified | | | | | | from the cash flow | | | | | | hedge reserve or FCTR | | | | | | to profit or loss | | | | | | 4 | | | | | | | | Consolidated | | | | | | | Change in value | | | | | | of hedging | | | | | | instrument | | | | | | 2 | | | | | | | | | | | | | Change in value | | | | | | of hedged item | | | | | | | Hedge ineffectiveness | | | | | | recognised in profit or | | | | | | loss | | | | | | 3 | | | | | | | | | As at 30 September 2025 | $m | $m | $m | $m | | Fair value hedges | | | | | | 1 | | | | | | | | | | | | Interest rate | (151) | 170 | 19 | - | | Foreign exchange | | | | | | | (28) | 28 | - | - | | Cash flow hedges | | | | | | 1 | | | | | | | | | | | | Interest | | | | | | rate | | | | | | | 856 | (852) | 4 | (6) | | Foreign exchange | | | | | | | 4 | (4) | - | (7) | | Net investment hedges | | | | | | 1 | | | | | | | | | | | | Foreign exchange | 23 | (23) | - | - | | As at 30 September 2024 | | | | | | Fair value hedges | | | | | | 1 | | | | | | | | | | | | Interest rate | (2,922) | 2,928 | 6 | - | | Foreign exchange | 36 | (36) | - | - | | Cash flow hedges | | | | | | 1 | | | | | | | | | | | | Interest rate | 2,175 | (2,0 | | | | | | 74) | 101 | (2) | | Foreign exchange | (3) | 3 | - | - | | Net investment hedges | | | | | | 1 | | | | | | | | | | | | Foreign exchange | 9 | (9) | - | - | | | | | | | | --- | --- | --- | --- | --- | | | Ineffectiveness | | | | | | | | | Amount reclassified | | | | | | from the cash flow | | | | | | hedge reserve or FCTR | | | | | | to profit or loss | | | | | | 4 | | | | | | | | The Company | | | | | | | Change in value | | | | | | of hedging | | | | | | instrument | | | | | | 2 | | | | | | | | | | | | | Change in value | | | | | | of hedged item | | | | | | | Hedge ineffectiveness | | | | | | recognised in profit or | | | | | | loss | | | | | | 3 | | | | | | | | | As at 30 September 2025 | $m | $m | $m | $m | | Fair value hedges | | | | | | 1 | | | | | | | | | | | | Interest rate | 109 | (95) | 14 | - | | Foreign exchange | | | | | | (28) | 28 | | - | - | | Cash flow hedges | | | | | | 1 | | | | | | | | | | | | Interest rate | | | | | | | 735 | (731) | 4 | (5) | | Foreign exchange | | | | | | | 4 | (4) | - | (7) | | Net investment hedges | | | | | | 1 | | | | | | | | | | | | Foreign exchange | - | - | - | - | | As | | | | | | at 30 September 2024 | | | | | | Fair value hedges | | | | | | 1 | | | | | | | | | | | | Interest rate | (2,811) | 2,817 | 6 | - | | Foreign exchange | 36 | (36) | - | - | | Cash flow hedges | | | | | | 1 | | | | | | | | | | | | Interest rate | 1,99 | | | | | | 4 | | | | | | | (1,8 | | | | | | 94) | 100 | (2) | | Foreign exchange | (3) | 3 | - | - | | Net investment hedges | | | | | | 1 | | | | | | | | | | | | Foreign exchange | - | - | - | - | 1. All hedging instruments are classified as derivative financial instruments. 2. Changes in value of hedging instruments is before any adjustments for Settle to Market clearing arrangements. 3. Recognised in Other operating income. 4. Recognised in Net interest income and Other operating income. 107 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 107 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The hedged items in relation to the Group’s fair value hedges are: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Carrying amount | | | | | | | | | | Accumulated fair value | | | | | | | | hedge adjustments on the | | | | | | | | hedged item | | | | Balance sheet | | Assets | Liabilities | Assets | Liabilities | | Consolidated | presentation | Hedged risk | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | | Fixed rate loans and advances | Net loans and advances | Interest rate | 982 | - | (25) | - | | Fixed rate deposits and other borrowings | | | | | | | | | Deposits and other | | | | | | | | borrowings | | | | | | | | | Interest rate | | | | | | | | | - | (2,267) | - | 6 | | Fixed rate debt issuance | Debt issuances | Interest rate | | | | | | | | | - | (71,300) | - | 1,068 | | Fixed rate investment securities at FVOCI | | | | | | | | 1 | | | | | | | | | Investment securities | Interest rate | 113,397 | - | 973 | - | | Equity securities at FVOCI | | | | | | | | 1 | | | | | | | | | Investment securities | Foreign exchange | 599 | - | 71 | - | | Total | | | | | | | | | | | 114,978 | (73,567) | 1,019 | 1,074 | | As at 30 September 2024 | | | | | | | | Fixed rate loans and advances | Net loans and advances | Interest rate | 1,546 | - | (30) | - | | Fixed rate debt issuance | Debt issuances | Interest rate | - | (73,805) | - | 1,284 | | Fixed rate investment securities at FVOCI | | | | | | | | 1 | | | | | | | | | Investment securities | Interest rate | 97,838 | - | 625 | - | | Equity securities at FVOCI | | | | | | | | 1 | | | | | | | | | Investment securities | Foreign exchange | 571 | - | 43 | - | | Total | | | 99,955 | (73,805) | 638 | 1,284 | 1. The carrying amount of debt and equity instruments at FVOCI does not include the fair value hedge adjustment. The fair value hedge adjustment is included in other comprehensive income. The cumulative amount of fair value hedge adjustments relating to ceased hedge relationships remaining on the Balance Sheet is nil (2024: $3 million). The hedged items in relation to the Company’s fair value hedges are: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Carrying amount | | | | | | | | | | Accumulated fair value | | | | | | | | hedge adjustments on the | | | | | | | | hedged item | | | | Balance sheet | | Assets | Liabilities | Assets | Liabilities | | The Company | presentation | Hedged risk | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | | Fixed rate loans and advances | Net loans and advances | Interest rate | 982 | - | (25) | - | | Fixed rate deposits and other borrowings | | | | | | | | | Deposits and other | | | | | | | | borrowings | | | | | | | | | Interest rate | | | | | | | | | - | (2,267) | - | 6 | | Fixed rate debt issuance | Debt issuances | Interest rate | | | | | | | | | - | (58,131) | - | 786 | | Fixed rate investment securities at FVOCI | | | | | | | | 1 | | | | | | | | | Investment securities | Interest rate | 93,143 | - | 548 | - | | Equity securities at FVOCI | | | | | | | | 1 | | | | | | | | | Investment securities | Foreign exchange | 599 | - | 71 | - | | Total | | | | | | | | | | | 94,724 | (60,398) | 594 | 792 | | As at 30 September 2024 | | | | | | | | Fixed rate loans and advances | Net loans and advances | Interest rate | 1,546 | - | (30) | - | | Fixed rate debt issuance | Debt issuances | Interest rate | | | | | | | | | - | | | | | | | | | (60,258) | | | | | | | | | - | | | | | | | | | 904 | | Fixed rate investment securities at FVOCI | | | | | | | | 1 | | | | | | | | | Investment securities | Interest rate | 81,276 | - | 538 | - | | Equity securities at FVOCI | | | | | | | | 1 | | | | | | | | | Investment securities | Foreign exchange | 571 | - | 43 | - | | Total | | | 83,393 | (60,258) | 551 | 904 | 1. The carrying amount of debt and equity instruments at FVOCI does not include the fair value hedge adjustment. The fair value hedge adjustment is included in other comprehensive income. The cumulative amount of fair value hedge adjustments relating to ceased hedge relationships remaining on the Balance Sheet is $nil million (2024: $3 million). 108 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 108 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 108 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The hedged items in relation to the Group’s fair value hedges are: Carrying amount Accumulated fair value hedge adjustments on the hedged item Balance sheet Assets Liabilities Assets Liabilities Consolidated presentation Hedged risk $m $m $m $m As at 30 September 2025 Fixed rate loans and advances Net loans and advances Interest rate 982 - (25) - Fixed rate deposits and other borrowings Deposits and other borrowings Interest rate - (2,267) - 6 Fixed rate debt issuance Debt issuances Interest rate - (71,300) - 1,068 Fixed rate investment securities at FVOCI 1 Investment securities Interest rate 113,397 - 973 - Equity securities at FVOCI 1 Investment securities Foreign exchange 599 - 71 - Total 114,978 (73,567) 1,019 1,074 As at 30 September 2024 Fixed rate loans and advances Net loans and advances Interest rate 1,546 - (30) - Fixed rate debt issuance Debt issuances Interest rate - (73,805) - 1,284 Fixed rate investment securities at FVOCI 1 Investment securities Interest rate 97,838 - 625 - Equity securities at FVOCI 1 Investment securities Foreign exchange 571 - 43 - Total 99,955 (73,805) 638 1,284 1. The carrying amount of debt and equity instruments at FVOCI does not include the fair value hedge adjustment. The fair value hedge adjustment is included in other comprehensive income. The cumulative amount of fair value hedge adjustments relating to ceased hedge relationships remaining on the Balance Sheet is nil (2024: $3 million). The hedged items in relation to the Company’s fair value hedges are: Carrying amount Accumulated fair value hedge adjustments on the hedged item Balance sheet Assets Liabilities Assets Liabilities The Company presentation Hedged risk $m $m $m $m As at 30 September 2025 Fixed rate loans and advances Net loans and advances Interest rate 982 - (25) - Fixed rate deposits and other borrowings Deposits and other borrowings Interest rate - (2,267) - 6 Fixed rate debt issuance Debt issuances Interest rate - (58,131) - 786 Fixed rate investment securities at FVOCI 1 Investment securities Interest rate 93,143 - 548 - Equity securities at FVOCI 1 Investment securities Foreign exchange 599 - 71 - Total 94,724 (60,398) 594 792 As at 30 September 2024 Fixed rate loans and advances Net loans and advances Interest rate 1,546 - (30) - Fixed rate debt issuance Debt issuances Interest rate - (60,258) - 904 Fixed rate investment securities at FVOCI 1 Investment securities Interest rate 81,276 - 538 - Equity securities at FVOCI 1 Investment securities Foreign exchange 571 - 43 - Total 83,393 (60,258) 551 904 1. The carrying amount of debt and equity instruments at FVOCI does not include the fair value hedge adjustment. The fair value hedge adjustment is included in other comprehensive income. The cumulative amount of fair value hedge adjustments relating to ceased hedge relationships remaining on the Balance Sheet is $nil million (2024: $3 million). 108 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The hedged items in relation to the Group’s cash flow and net investment hedges are: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | Cash flow | | | | | | | hedge reserve | | | | | | | | | Foreign currency | | | | | | | translation reserve | | | | | Continuing | | | | | | | hedges | | | | | | | | Discontinued | | | | | | | hedges | | | | | | | | Continuing | | | | | | | hedges | | | | | | | | Discontinued | | | | | | | hedges | | Consolidated | Hedged risk | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Cash flow hedges | | | | | | | Floating rate loans and advances | Interest rate | 407 | 15 | - | - | | Floating rate customer deposits | Interest rate | | | | | | | | (187) | 4 | - | - | | Foreign currency debt issuances | Foreign exchange | | | | | | | | (8) | - | - | - | | Highly probable forecast transactions | Foreign exchange | | | | | | | | 2 | - | - | - | | Net investment hedges | | | | | | | Foreign operations | Foreign exchange | - | - | 42 | 23 | | As at 30 September 2024 | | | | | | | Cash flow hedges | | | | | | | Floating rate loans and advances | Interest rate | (575) | - | - | - | | Floating rate customer deposits | Interest rate | (31) | - | - | - | | Foreign currency debt issuances | Foreign exchange | (7) | - | - | - | | Highly probable forecast transactions | Foreign exchange | 4 | - | - | - | | Net investment hedges | | | | | | | Foreign operations | Foreign exchange | - | - | 22 | 20 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | Cash flow | | | | | | | hedge reserve | | | | | | | | | Foreign currency | | | | | | | translation reserve | | | | | Continuing | | | | | | | hedges | | | | | | | | Discontinued | | | | | | | hedges | | | | | | | | Continuing | | | | | | | hedges | | | | | | | | Discontinued | | | | | | | hedges | | The Company | Hedged risk | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Cash flow hedges | | | | | | | Floating rate loans and advances | Interest rate | (23) | (1) | - | - | | Floating rate customer deposits | Interest rate | | | | | | | | 30 | 5 | - | - | | Foreign currency debt issuances | Foreign exchange | | | | | | | | (8) | - | - | - | | Highly probable forecast transactions | Foreign exchange | | | | | | | | 2 | - | - | - | | Net investment hedges | | | | | | | Foreign operations | Foreign exchange | - | - | - | - | | As at 30 September 2024 | | | | | | | Cash flow hedges | | | | | | | Floating rate loans and advances | Interest rate | (820) | - | - | - | | Floating rate cust | | | | | | | omer deposits | Interest rate | 105 | - | - | - | | Foreign currency debt issuances | Foreign exchange | (7) | - | - | - | | Highly probable forecast transactions | Foreign exchange | 4 | - | - | - | | Net investment hedges | | | | | | | Foreign operations | Foreign exchange | - | - | - | - | 109 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 109 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The table below details the reconciliation of the Group’s cash flow hedge reserve by risk type: | | | | | | --- | --- | --- | --- | | | Interest rate | | | | | | Foreign | | | | | currency | Total | | Consolidated | $m | $m | $m | | Balance at 1 October 2023 | (1,871) | (1) | (1,872) | | Fair value gains/(losses) | 2,074 | (3) | 2,071 | | Transferred to profit or loss | (2) | - | (2) | | Income taxes and others | (620) | | | | | | 1 | (619) | | Balance at 30 September 2024 | | | | | | (419) | (3) | (422) | | Fair value gains/(losses) | 852 | 4 | 856 | | Transferred to profit or loss | | | | | | (6) | (7) | (13) | | Income taxes and others | | | | | | (252) | 1 | (251) | | Balance at 30 September 2025 | | | | | | 175 | (5) | 170 | Hedges of net investments in a foreign operation resulted in a $23 million increase in FCTR during the year (2024: $9 million increase). The table below details the reconciliation of the Company’s cash flow hedge reserve by risk type: | | | | | | --- | --- | --- | --- | | | Interest rate | | | | | | Foreign | | | | | currency | Total | | The Company | $m | $m | $m | | Balance at 1 October 2023 | (1,823) | (1) | (1,824) | | Fair value gains/(losses) | 1,894 | (3) | 1,891 | | Transferred to profit or loss | (2) | - | (2) | | Income taxes and others | (569) | | | | | | 1 | | | | | | (568) | | Balance at 30 September 2024 | | | | | | (500) | (3) | (503) | | Fair value gains/(losses) | 731 | 4 | 735 | | Transferred to profit or loss | | | | | | (5) | (7) | (12) | | Income taxes and others | | | | | | (218) | 1 | (217) | | Balance at 30 September 2025 | | | | | | 8 | (5) | 3 | Hedges of net investments in a foreign operation resulted in nil impact in FCTR during the year (2024: $nil). 110 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 110 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 110 10. Derivative financial instruments (continued) Derivative financial instruments – designated in hedging relationships (continued) The table below details the reconciliation of the Group’s cash flow hedge reserve by risk type: Interest rate Foreign currency Total Consolidated $m $m $m Balance at 1 October 2023 (1,871) (1) (1,872) Fair value gains/(losses) 2,074 (3) 2,071 Transferred to profit or loss (2) - (2) Income taxes and others (620) 1 (619) Balance at 30 September 2024 (419) (3) (422) Fair value gains/(losses) 852 4 856 Transferred to profit or loss (6) (7) (13) Income taxes and others (252) 1 (251) Balance at 30 September 2025 175 (5) 170 Hedges of net investments in a foreign operation resulted in a $23 million increase in FCTR during the year (2024: $9 million increase). The table below details the reconciliation of the Company’s cash flow hedge reserve by risk type: Interest rate Foreign currency Total The Company $m $m $m Balance at 1 October 2023 (1,823) (1) (1,824) Fair value gains/(losses) 1,894 (3) 1,891 Transferred to profit or loss (2) - (2) Income taxes and others (569) 1 (568) Balance at 30 September 2024 (500) (3) (503) Fair value gains/(losses) 731 4 735 Transferred to profit or loss (5) (7) (12) Income taxes and others (218) 1 (217) Balance at 30 September 2025 8 (5) 3 Hedges of net investments in a foreign operation resulted in nil impact in FCTR during the year (2024: $nil). 110 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 10. Derivative financial instruments (continued) #### Recognition and measurement Recognition Initially and at each reporting date, we recognise all derivatives at fair value. If the fair value of a derivative is positive, then we carry it as an asset, but if its value is negative, then we carry it as a liability. Valuation adjustments are integral in determining the fair value of derivatives. This includes: • a credit valuation adjustment (CVA) to reflect the counterparty risk and/or event of default; and • a funding valuation adjustment (FVA) to account for funding costs and benefits in the derivatives portfolio. Derecognition of assets and liabilities We remove derivative assets from our Balance Sheet when the contracts expire or we have transferred substantially all the risks and rewards of ownership. We remove derivative liabilities from our Balance Sheet when the Group’s contractual obligations are discharged, cancelled or expired. With respect to derivatives cleared through a central clearing counterparty or exchange, derivative assets or liabilities may be derecognised in accordance with the principle above when collateral is settled, depending on the legal arrangements in place for each instrument. Impact on the Income Statement The recognition of gains or losses on derivative financial instruments depends on whether the derivative is held for trading or is designated in a hedge accounting relationship. For derivative financial instruments held for trading, gains or losses from changes in the fair value are recognised in profit or loss. For an instrument designated in a hedge accounting relationship, the recognition of gains or losses depends on the nature of the item being hedged. Refer to the table on page 103 for details of the recognition approach applied for each type of hedge accounting relationship. Sources of hedge accounting ineffectiveness may arise from differences in the interest rate reference rate, margins, or rate set differences and differences in discounting between the hedged items and the hedging instruments. Hedge effectiveness To qualify for hedge accounting under AASB 139, a hedge relationship is expected to be highly effective. A hedge relationship is highly effective only if the following conditions are met: • the hedge is expected to be highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk during the period for which the hedge is designated (prospective effectiveness); and • the actual results of the hedge are within the range of 80-125% (retrospective effectiveness). The Group monitors hedge effectiveness on a regular basis but at a minimum at each reporting date. #### Key judgements and estimates Judgement is required when we select the valuation techniques used to determine the fair value of derivatives, particularly the selection of valuation inputs that are not readily observable, and the application of valuation adjustments to certain derivatives. Refer to Note 18 Fair value of financial assets and financial liabilities for further details. 111 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 111 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 11. Investment securities | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | | | | | | | $m | | | | | | | $m | | | | | | | $m | | Investment securities measured at FVOCI | | | | | | Debt securities | 156,373 | 131,944 | 128,972 | 107,388 | | Equity securities | | | | | | | 955 | 1,065 | 950 | 1,060 | | Investment securities measured at amortised cost | | | | | | Debt securities | 7,520 | 7,091 | 5,971 | 5,356 | | Investment securities measured at FVTPL | | | | | | Debt securities | 692 | 162 | 692 | 162 | | Total | | | | | | | 165,540 | 140,262 | 136,585 | 113,966 | The maturity profile of investment securities is as follows: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Consolidated | | | | | | | | | Less than 3 | | | | | | | | months | | | | | | | | | 3 to 12 | | | | | | | | months | 1 to 5 years | After 5 years | | | | | | | | | No | | | | | | | | maturity | Total | | As at 30 September 2025 | $m | $m | $m | $m | $m | $m | | Government securities | | | | | | | | | 10,402 | 17,206 | 66,723 | 54,498 | - | 148,829 | | Corporate and financial institution securities | 235 | 1,824 | 9,956 | 246 | - | 12,261 | | Other securities | | | | | | | | | 572 | 389 | 985 | 1,549 | - | 3,495 | | Equity securities | | | | | | | | | - | - | - | - | 955 | 955 | | Total | | | | | | | | | 11,209 | 19,419 | 77,664 | 56,293 | 955 | 165,540 | | As at 30 September 2024 | | | | | | | | Government securities | 9,824 | 11,048 | 52,228 | 54,039 | - | 127,139 | | Corporate and financial institution securities | 485 | 1,326 | 6,565 | 328 | - | 8,704 | | Other securities | 490 | 386 | 578 | 1,900 | - | 3,354 | | Equity securities | - | - | - | - | 1,065 | 1,065 | | Total | 10,799 | 12,760 | 59,371 | 56,267 | 1,065 | 140,262 | During the year, the Group recognised a net gain of $28 million (2024: $8 million) in Other operating income from the recycling of gains/losses previously recognised in Other comprehensive income in respect of debt securities at FVOCI. 2024 2025 127,139 3,354 8,704 1,065 148,829 Government securities Corporate and financial institution securities Other securities Equity securities 3,495 12,261 955 112 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 112 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 112 11. Investment securities Consolidated The Company 2025 2024 2025 2024 $m $m $m $m Investment securities measured at FVOCI Debt securities 156,373 131,944 128,972 107,388 Equity securities 955 1,065 950 1,060 Investment securities measured at amortised cost Debt securities 7,520 7,091 5,971 5,356 Investment securities measured at FVTPL Debt securities 692 162 692 162 Total 165,540 140,262 136,585 113,966 The maturity profile of investment securities is as follows: Consolidated Less than 3 months 3 to 12 months 1 to 5 years After 5 years No maturity Total As at 30 September 2025 $m $m $m $m $m $m Government securities 10,402 17,206 66,723 54,498 - 148,829 Corporate and financial institution securities 235 1,824 9,956 246 - 12,261 Other securities 572 389 985 1,549 - 3,495 Equity securities - - - - 955 955 Total 11,209 19,419 77,664 56,293 955 165,540 As at 30 September 2024 Government securities 9,824 11,048 52,228 54,039 - 127,139 Corporate and financial institution securities 485 1,326 6,565 328 - 8,704 Other securities 490 386 578 1,900 - 3,354 Equity securities - - - - 1,065 1,065 Total 10,799 12,760 59,371 56,267 1,065 140,262 During the year, the Group recognised a net gain of $28 million (2024: $8 million) in Other operating income from the recycling of gains/losses previously recognised in Other comprehensive income in respect of debt securities at FVOCI. 2024 2025 127,139 3,354 8,704 1,065 148,829 Government securities Corporate and financial institution securities Other securities Equity securities 3,495 12,261 955 112 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 11. Investment securities (continued) The Company | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Less than 3 | | | | | | | | months | | | | | | | | | 3 to 12 | | | | | | | | months | 1 to 5 years | After 5 years | | | | | | | | | No | | | | | | | | maturity | Total | | As at 30 September 2025 | $m | $m | $m | $m | $m | $m | | Government securities | | | | | | | | | 9,482 | 15,546 | 51,301 | 46,466 | - | 122,795 | | Corporate and financial institution securities | 235 | 1,327 | 7,549 | 246 | - | 9,357 | | Other securities | | | | | | | | | 571 | 389 | 985 | 1,538 | - | 3,483 | | Equity securities | | | | | | | | | - | - | - | - | 950 | 950 | | Total | | | | | | | | | 10,288 | 17,262 | 59,835 | 48,250 | 950 | 136,585 | | As at 30 September 2024 | | | | | | | | Government securities | 9,213 | 8,454 | 38,158 | 46,719 | - | 102,544 | | Corporate and financial institution securities | 484 | 976 | 5,249 | 328 | - | 7,037 | | Other securities | 490 | 386 | 578 | 1,871 | - | 3,325 | | Equity securities | - | - | - | - | 1,060 | 1,060 | | Total | 10,187 | 9,816 | 43,985 | 48,918 | 1,060 | 113,966 | During the year, the Group recognised a net gain of $16 million (2024: $8 million) in Other operating income from the recycling of gains/losses previously recognised in Other comprehensive income in respect of debt securities at FVOCI. #### Recognition and measurement Investment securities are those financial assets in security form (that is, transferable debt or equity instruments) that are not held for trading purposes. By way of exception, bills of exchange (a form of security/transferable instrument) which are used to facilitate the Group’s customer lending activities are classified as Loans and advances (rather than Investment securities) to better reflect the substance of the arrangement. Equity investments not held for trading purposes may be designated at FVOCI on an instrument-by-instrument basis. If this election is made, gains or losses are not reclassified from Other comprehensive income to profit or loss on disposal of the investment. However, gains or losses may be reclassified within equity. Assets disclosed as Investment securities are subject to the general classification and measurement policy for financial assets outlined at the commencement of the Group’s financial asset disclosures on page 98. Additionally, expected credit losses associated with Investment securities - debt securities at amortised cost and Investment securities - debt securities at FVOCI are recognised and measured in accordance with the accounting policy outlined in Note 13 Allowance for expected credit losses. For Investment securities - debt securities at FVOCI, the allowance for Expected Credit Loss (ECL) is recognised in the FVOCI reserve in equity with a corresponding charge to profit or loss. #### Key judgements and estimates Judgement is required when we select valuation techniques used to determine the fair value of assets not valued using quoted market prices, particularly the selection of valuation inputs that are not readily observable. Refer to Note 18 Fair value of financial assets and financial liabilities for further details. 113 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 113 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 12. Net loans and advances The following table provides details of Net loans and advances: | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Overdrafts | | | | | | | 6,019 | 6,109 | 4,665 | 4,701 | | Credit cards | 6,205 | 6,713 | 5,125 | 5,571 | | Commercial bills | | | | | | | 3,739 | 4,401 | 3,739 | 4,401 | | Term loans – housing | | | | | | | 503,997 | 484,554 | 341,805 | 324,883 | | Term loans – non-housing | | | | | | | 309,086 | 301,284 | 256,681 | 248,498 | | Other | | | | | | | 955 | 924 | 965 | 845 | | Subtotal | | | | | | | 830,001 | 803,985 | 612,980 | 588,899 | | Unearned income | | | | | | 1 | | | | | | | (641) | (515) | (599) | (489) | | Capitalised brokerage and other origination costs | | | | | | 1 | | | | | | | 4,500 | 4,237 | 3,426 | 3,303 | | Gross loans and advances | | | | | | | 833,860 | 807,707 | 615,807 | 591,713 | | Allowance for expected credit losses (refer to Note 13) | (3,874) | (3,675) | (2,952) | (2,715) | | Net loans and advances | | | | | | | 829,986 | 804,032 | 612,855 | 588,998 | | Residual contractual maturity: | | | | | | Within one year | 146,295 | 159,042 | 123,248 | 133,701 | | More than one year | | | | | | | 683,691 | 644,990 | 489,607 | 455,297 | | Net loans and advances | | | | | | | 829,986 | 804,032 | 612,855 | 588,998 | | Carried on Balance Sheet at: | | | | | | Amortised cost | 799,588 | 779,246 | 583,639 | 564,559 | | Fair value through profit or loss | | | | | | | 30,398 | 24,786 | 29,216 | 24,439 | | Net loans and advances | | | | | | | 829,986 | 804,032 | 612,855 | 588,998 | 1. Amortised over the expected life of the loan. #### Recognition and measurement Loans and advances are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are facilities the Group provides directly to customers or through third party channels. Loans and advances are initially recognised at fair value plus transaction costs directly attributable to the issue of the loan or advance, which are primarily brokerage and other origination costs which we amortise over the estimated life of the loan. Subsequently, we then measure loans and advances at amortised cost using the effective interest rate method, net of any allowance for ECL, or at fair value when they are specifically designated on initial recognition as FVTPL, are classified as held for sale or when held for trading. Refer to Note 18 Fair value of financial assets and financial liabilities for further details. We classify contracts to lease assets and hire purchase agreements as finance leases if they transfer substantially all the risks and rewards of ownership of the asset to the customer or an unrelated third party. We include these facilities in ‘Other’ in the table above. The Group enters into transactions in which it transfers financial assets that are recognised on its Balance Sheet. When the Group retains substantially all of the risks and rewards of the transferred assets, the transferred assets remain on the Group’s Balance Sheet, however if substantially all the risks and rewards are transferred, the Group derecognises the asset. If the risks and rewards are partially retained and control over the asset is lost, the Group derecognises the asset. If control over the asset is not lost, the Group continues to recognise the asset to the extent of its continuing involvement. We separately recognise the rights and obligations retained, or created, in the transfer of assets as appropriate. Assets disclosed as Net loans and advances are subject to the general classification and measurement policy for financial assets outlined on page 98. Additionally, expected credit losses associated with loans and advances at amortised cost are recognised and measured in accordance with the accounting policy outlined in Note 13 Allowance for expected credit losses. 114 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 114 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 114 12. Net loans and advances The following table provides details of Net loans and advances: Consolidated The Company 2025 2024 2025 2024 $m $m $m $m Overdrafts 6,019 6,109 4,665 4,701 Credit cards 6,205 6,713 5,125 5,571 Commercial bills 3,739 4,401 3,739 4,401 Term loans – housing 503,997 484,554 341,805 324,883 Term loans – non-housing 309,086 301,284 256,681 248,498 Other 955 924 965 845 Subtotal 830,001 803,985 612,980 588,899 Unearned income 1 (641) (515) (599) (489) Capitalised brokerage and other origination costs 1 4,500 4,237 3,426 3,303 Gross loans and advances 833,860 807,707 615,807 591,713 Allowance for expected credit losses (refer to Note 13) (3,874) (3,675) (2,952) (2,715) Net loans and advances 829,986 804,032 612,855 588,998 Residual contractual maturity: Within one year 146,295 159,042 123,248 133,701 More than one year 683,691 644,990 489,607 455,297 Net loans and advances 829,986 804,032 612,855 588,998 Carried on Balance Sheet at: Amortised cost 799,588 779,246 583,639 564,559 Fair value through profit or loss 30,398 24,786 29,216 24,439 Net loans and advances 829,986 804,032 612,855 588,998 1. Amortised over the expected life of the loan. Loans and advances are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are facilities the Group provides directly to customers or through third party channels. Loans and advances are initially recognised at fair value plus transaction costs directly attributable to the issue of the loan or advance, which are primarily brokerage and other origination costs which we amortise over the estimated life of the loan. Subsequently, we then measure loans and advances at amortised cost using the effective interest rate method, net of any allowance for ECL, or at fair value when they are specifically designated on initial recognition as FVTPL, are classified as held for sale or when held for trading. Refer to Note 18 Fair value of financial assets and financial liabilities for further details. We classify contracts to lease assets and hire purchase agreements as finance leases if they transfer substantially all the risks and rewards of ownership of the asset to the customer or an unrelated third party. We include these facilities in ‘Other’ in the table above. The Group enters into transactions in which it transfers financial assets that are recognised on its Balance Sheet. When the Group retains substantially all of the risks and rewards of the transferred assets, the transferred assets remain on the Group’s Balance Sheet, however if substantially all the risks and rewards are transferred, the Group derecognises the asset. If the risks and rewards are partially retained and control over the asset is lost, the Group derecognises the asset. If control over the asset is not lost, the Group continues to recognise the asset to the extent of its continuing involvement. We separately recognise the rights and obligations retained, or created, in the transfer of assets as appropriate. Assets disclosed as Net loans and advances are subject to the general classification and measurement policy for financial assets outlined on page 98. Additionally, expected credit losses associated with loans and advances at amortised cost are recognised and measured in accordance with the accounting policy outlined in Note 13 Allowance for expected credit losses. #### Recognition and measurement 114 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 13. Allowance for expected credit losses | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | | 2024 | | | | | Collectively | | | | | | | | assessed | | | | | | | | $m | | | | | | | | | Individually | | | | | | | | assessed | | | | | | | | $m | | | | | | | | | Total | | | | | | | | $m | | | | | | | | | Collectively | | | | | | | | assessed | | | | | | | | $m | | | | | | | | | Individually | | | | | | | | assessed | | | | | | | | $m | | | | | | | | | Total | | | | | | | | $m | | Net loans and advances at amortised cost | 3,512 | 362 | 3,874 | 3,372 | 303 | 3,675 | | Off-balance sheet commitments | 833 | 37 | 870 | 841 | 5 | 846 | | Investment securities - debt securities at amortised cost | | | | | | | | | 34 | - | 34 | 34 | - | 34 | | Total | | | | | | | | | 4,379 | 399 | 4,778 | 4,247 | 308 | 4,555 | | Other comprehensive income | | | | | | | | Investment securities - debt securities at FVOCI | | | | | | | | 1 | | | | | | | | | 13 | - | 13 | 20 | - | 20 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | | 2024 | | | | The Company | | | | | | | | | Collectively | | | | | | | | assessed | | | | | | | | $m | | | | | | | | | Individually | | | | | | | | assessed | | | | | | | | $m | | | | | | | | | Total | | | | | | | | $m | | | | | | | | | Collectively | | | | | | | | assessed | | | | | | | | $m | | | | | | | | | Individually | | | | | | | | assessed | | | | | | | | $m | | | | | | | | | Total | | | | | | | | $m | | Net loans and advances at amortised cost | 2,687 | 265 | 2,952 | 2,495 | 220 | 2,715 | | Off-balance sheet commitments | 682 | 33 | 715 | 691 | 2 | 693 | | Investment securities - debt securities at amortised cost | | | | | | | | | 3 | - | 3 | 1 | - | 1 | | Total | | | | | | | | | 3,372 | 298 | 3,670 | 3,187 | 222 | 3,409 | | Other comprehensive income | | | | | | | | Investment securities - debt securities at FVOCI | | | | | | | | 1 | | | | | | | | | | | | | | | | | 9 | - | 9 | 14 | - | 14 | 1. For FVOCI assets, the allowance for ECL does not alter the carrying amount which remains at fair value. Instead, the allowance for ECL is recognised in Other comprehensive income with a corresponding charge to profit or loss. The following tables present the movement in the allowance for ECL for the year. Net loans and advances - at amortised cost Allowance for ECL is included in Net loans and advances. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | Consolidated | | | | | | | | Stage 1 | | | | | | | $m | | | | | | | | Stage 2 | | | | | | | $m | | | | | | | | Collectively | | | | | | | assessed | | | | | | | $m | | | | | | | | Individually | | | | | | | assessed | | | | | | | $m | | | | | | | | Total | | | | | | | $m | | As at 1 October 2023 | 1,227 | 1,624 | 329 | 366 | 3,546 | | Transfer between stages | 155 | (181) | (57) | 83 | - | | New and increased provisions (net of releases) | | | | | | | 1 | | | | | | | | (89) | 218 | 168 | 379 | 676 | | Write-backs | - | - | - | (177) | (177) | | Bad debts written off (excluding | | | | | | | recoveries) | - | - | - | | | | | | | | (316) | (316) | | Foreign currency translation and other movements | | | | | | | 2 | | | | | | | | (17) | (8) | 3 | (32) | (54) | | As at 30 September 2024 | 1,276 | 1,653 | 443 | 303 | 3,675 | | Transfer between stages | 170 | (173) | (106) | 109 | - | | New and increased provisions (net of releases) | (116) | 91 | 270 | 447 | 692 | | Write-backs | | | | | | | | - | - | - | (137) | (137) | | Bad debts written off (excluding recoveries) | | | | | | | | - | - | - | (346) | (346) | | Foreign currency translation and other movements | | | | | | | 2 | | | | | | | | 3 | (13) | 14 | (14) | (10) | | As at 30 September 2025 | | | | | | | | 1,333 | 1,558 | 621 | 362 | 3,874 | 1. Includes Suncorp Bank acquisition related collectively assessed allowance for ECL. Under accounting standards, these were initially recognised as Stage 1, and where relevant moving to Stage 2 after the date of acquisition, all presented within New and increased provisions (net of releases). 2. Other movements include the impacts of discount unwind on individually assessed allowance for ECL. 115 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 115 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 13. Allowance for expected credit losses (continued) | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | T | | | | | | | he Company | | | | | | | | Stage 1 | | | | | | | $m | | | | | | | | Stage 2 | | | | | | | $m | | | | | | | | Collectively | | | | | | | assessed | | | | | | | $m | | | | | | | | Individually | | | | | | | assessed | | | | | | | $m | | | | | | | | Total | | | | | | | $m | | As at 1 October 2023 | 1,026 | 1,239 | 251 | 279 | 2,795 | | Transfer between stages | 115 | (140) | (48) | 73 | - | | New and increased provisions (net of releases) | | | | | | | 1 | | | | | | | | (121) | 51 | 137 | 294 | 361 | | Write-backs | - | - | - | (132) | (132) | | Bad debts written off (excluding recoveries) | - | - | - | (274) | (274) | | Foreign currency translation and other movements | | | | | | | 2 | | | | | | | | (14) | - | (1) | (20) | (35) | | As at 30 September 2024 | 1,006 | 1,150 | 339 | 220 | 2,715 | | Transfer between stages | 99 | (101) | (91) | 93 | - | | New and increased provisions (net of releases) | (47) | 82 | 240 | 341 | 616 | | Write-backs | | | | | | | | - | - | - | (76) | (76) | | Bad debts written off (excluding recoveries) | | | | | | | | - | - | - | (296) | (296) | | Foreign currency translation and other movements | | | | | | | 2 | | | | | | | | 11 | (1) | - | (17) | (7) | | As at 30 September 2025 | | | | | | | | 1,069 | 1,130 | 488 | 265 | 2,952 | 1. Includes Suncorp Bank acquisition related collectively assessed allowance for ECL. Under accounting standards, these were initially recognised as Stage 1, and where relevant moving to Stage 2 after the date of acquisition, all presented within New and increased provisions (net of releases). 2. Other movements include the impacts of discount unwind on individually assessed allowance for ECL or the impact of divestments completed during the year. Off-balance sheet commitments - undrawn and contingent facilities Allowance for ECL is included in Other provisions. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | Consolidated | | | | | | | | Stage 1 | | | | | | | $m | | | | | | | | Stage | | | | | | | 2 | | | | | | | $m | | | | | | | | Collectively | | | | | | | assessed | | | | | | | $m | | | | | | | | Individually | | | | | | | assessed | | | | | | | $m | | | | | | | | Total | | | | | | | $m | | As at 1 October 2023 | 630 | 162 | 25 | 10 | 827 | | Transfer between stages | 18 | (17) | (1) | - | - | | New and increased provisions (net of releases) | 26 | 13 | 1 | 3 | 43 | | Write-backs | - | - | - | (7) | (7) | | Foreign currency translation | (16) | (2) | 2 | (1) | (17) | | As at 30 September 2024 | 658 | 156 | 27 | 5 | 846 | | Transfer between stages | 18 | (18) | (3) | 3 | - | | New and increased provisions (net of releases) | (43) | 25 | 6 | 31 | 19 | | Write-backs | | | | | | | | - | - | - | (3) | (3) | | Foreign currency translation | | | | | | | | 10 | (3) | - | 1 | 8 | | As at 30 September 2025 | | | | | | | | 643 | 160 | 30 | 37 | 870 | 116 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 116 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 116 13. Allowance for expected credit losses (continued) Stage 3 Th e Company Stage 1 $m Stage 2 $m Collectively assessed $m Individually assessed $m Total $m As at 1 October 2023 1,026 1,239 251 279 2,795 Transfer between stages 115 (140) (48) 73 - New and increased provisions (net of releases) 1 (121) 51 137 294 361 Write-backs - - - (132) (132) Bad debts written off (excluding recoveries) - - - (274) (274) Foreign currency translation and other movements 2 (14) - (1) (20) (35) As at 30 September 2024 1,006 1,150 339 220 2,715 Transfer between stages 99 (101) (91) 93 - New and increased provisions (net of releases) (47) 82 240 341 616 Write-backs - - - (76) (76) Bad debts written off (excluding recoveries) - - - (296) (296) Foreign currency translation and other movements 2 11 (1) - (17) (7) As at 30 September 2025 1,069 1,130 488 265 2,952 1. Includes Suncorp Bank acquisition related collectively assessed allowance for ECL. Under accounting standards, these were initially recognised as Stage 1, and where relevant moving to Stage 2 after the date of acquisition, all presented within New and increased provisions (net of releases). 2. Other movements include the impacts of discount unwind on individually assessed allowance for ECL or the impact of divestments completed during the year. Off-balance sheet commitments - undrawn and contingent facilities Allowance for ECL is included in Other provisions. Stage 3 Consolidated Stage 1 $m Stage 2 $m Colle ctively assessed $m Individually assessed $m Total $m As at 1 October 2023 630 162 25 10 827 Transfer between stages 18 (17) (1) - - New and increased provisions (net of releases) 26 13 1 3 43 Write-backs - - - (7) (7) Foreign currency translation (16) (2) 2 (1) (17) As at 30 September 2024 658 156 27 5 846 Transfer between stages 18 (18) (3) 3 - New and increased provisions (net of releases) (43) 25 6 31 19 Write-backs - - - (3) (3) Foreign currency translation 10 (3) - 1 8 As at 30 September 2025 643 160 30 37 870 116 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 13. Allowance for expected credit losses (continued) | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | T | | | | | | | he Company | | | | | | | | Stage 1 | | | | | | | $m | | | | | | | | Stage 2 | | | | | | | $m | | | | | | | | Collectively | | | | | | | assessed | | | | | | | $m | | | | | | | | Individually | | | | | | | assessed | | | | | | | $m | | | | | | | | Total | | | | | | | $m | | As at 1 October 2023 | 550 | 121 | 21 | 5 | 697 | | Transfer between stages | 15 | (13) | (2) | - | - | | New and increased provisions (net of releases) | 23 | (11) | 3 | - | 15 | | Write-backs | - | - | - | (3) | (3) | | Foreign currency translation and other movements | (15) | (1) | - | - | (16) | | As at 30 September 2024 | 573 | 96 | 22 | 2 | 693 | | Transfer between stages | 13 | (14) | (2) | 3 | - | | New and increased provisions (net of releases) | (36) | 12 | 3 | 29 | 8 | | Write-backs | | | | | | | | - | - | - | (2) | (2) | | Foreign currency translation | | | | | | | | 13 | 1 | 1 | 1 | 16 | | As at 30 September 2025 | | | | | | | | 563 | 95 | 24 | 33 | 715 | Investment securities - debt securities at amortised cost Allowance for ECL is included in Investment securities. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | Consolidated | | | | | | | | | | | | | | | Stage 1 | | | | | | | $m | | | | | | | | Stage 2 | | | | | | | $m | | | | | | | | Collectively | | | | | | | assessed | | | | | | | $m | | | | | | | | Individually | | | | | | | assessed | | | | | | | $m | | | | | | | | Total | | | | | | | $m | | As at 30 September 2024 | 34 | - | - | - | 34 | | As at 30 September 2025 | 34 | - | - | - | 34 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | The Company | | | | | | | | | | | | | | | Stage 1 | | | | | | | $m | | | | | | | | Stage 2 | | | | | | | $m | | | | | | | | Collectively | | | | | | | assessed | | | | | | | $m | | | | | | | | Individually | | | | | | | assessed | | | | | | | $m | | | | | | | | Total | | | | | | | $m | | As at 30 September 2024 | 1 | - | - | - | 1 | | As at 30 September 2025 | 3 | - | - | - | 3 | Investment securities - debt securities at FVOCI As FVOCI assets are measured at fair value, there is no separate allowance for ECL. Instead, the allowance for ECL is recognised in Other comprehensive income with a corresponding charge to profit or loss. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | Consolidated | | | | | | | | | | | | | | | Stage 1 | | | | | | | $m | | | | | | | | Stage 2 | | | | | | | $m | | | | | | | | Collectively | | | | | | | assessed | | | | | | | $m | | | | | | | | Individually | | | | | | | assessed | | | | | | | $m | | | | | | | | Total | | | | | | | $m | | As at 30 September 2024 | 20 | - | - | - | 20 | | As at 30 September 2025 | 13 | - | - | - | 13 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | The Company | | | | | | | | Stage 1 | | | | | | | $m | | | | | | | | Stage | | | | | | | 2 | | | | | | | $m | | | | | | | | Collectively | | | | | | | assessed | | | | | | | $m | | | | | | | | Individually | | | | | | | assessed | | | | | | | $m | | | | | | | | Total | | | | | | | $m | | As at 30 September 2024 | 14 | - | - | - | 14 | | As at 30 September 2025 | 9 | - | - | - | 9 | 117 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 117 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 13. Allowance for expected credit losses (continued) Credit impairment charge - Income Statement Credit impairment charge/(release) analysis | | | | | | | --- | --- | --- | --- | --- | | | Con | | | | | | s | | | | | | olidated | | | | | | | | Th | | | | | | e Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | New and increased provisions (net of releases) | | | | | | 1,2 | | | | | | | | | | | | - Collectively assessed | 114 | 262 | 155 | 11 | | - Individually assessed | | | | | | | 590 | 465 | 466 | 367 | | Write-backs | | | | | | 3 | | | | | | | (140) | (184) | (78) | (135) | | Recoveries of amounts previously written-off | | | | | | | (129) | (137) | (115) | (117) | | Total credit impairment charge | | | | | | | 435 | 406 | 428 | 126 | 1. Includes the impact of transfers between collectively assessed and individually assessed. 2. New and increased provisions (net of releases) includes: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Consolidated | | | | Company | | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | Collectively | | | | | | | | | | assessed | | | | | | | | | | $m | | | | | | | | | | | | | | | | | | | | | Individually | | | | | | | | | | assessed | | | | | | | | | | $m | | | | | | | | | | | Collectively | | | | | | | | | | assessed | | | | | | | | | | $m | | | | | | | | | | | Individually | | | | | | | | | | assessed | | | | | | | | | | $m | | | | | | | | | | | Collectively | | | | | | | | | | assessed | | | | | | | | | | $m | | | | | | | | | | | Individually | | | | | | | | | | assessed | | | | | | | | | | $m | | | | | | | | | | | Collectively | | | | | | | | | | assessed | | | | | | | | | | $m | | | | | | | | | | | Individually | | | | | | | | | | assessed | | | | | | | | | | $m | | Net loans and advances at amortised cost | 136 | 556 | 214 | 462 | 182 | 434 | (6) | 367 | | Off-balance sheet commitments | (15) | 34 | 40 | 3 | (24) | 32 | 15 | - | | Investment securities - debt securities at amortised cost | - | - | 3 | - | 2 | - | (1) | - | | Investment securities - debt securities at FVOCI | (7) | - | 5 | - | (5) | - | 3 | - | | Other financial asset | - | - | - | - | - | - | - | - | | Total | 114 | 590 | 262 | 465 | 155 | 466 | 11 | 367 | 3. Consists of write-backs in Net loans and advances at amortised cost of $137 million (2024: $177 million) for the Group and $76 million (2024: $132 million) for the Company, and Off-balance sheet commitments of $3 million (2024: $7 million) for the Group and $2 million (2024: $3 million) for the Company. The contractual amount outstanding on financial assets that were written off during the year and that are still subject to enforcement activity is $134 million (2024: $136 million) for the Group and $116 million (2024: $116 million) for the Company. 118 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 118 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 118 13. Allowance for expected credit losses (continued) Credit impairment charge - Income Statement Credit impairment charge/(release) analysis Con s olidated Th e Company 2025 2024 2025 2024 $m $m $m $m New and increased provisions (net of releases) 1,2 - Collectively assessed 114 262 155 11 - Individually assessed 590 465 466 367 Write-backs 3 (140) (184) (78) (135) Recoveries of amounts previously written-off (129) (137) (115) (117) Total credit impairment charge 435 406 428 126 1. Includes the impact of transfers between collectively assessed and individually assessed. 2. New and increased provisions (net of releases) includes: Consolidated Company 2025 2024 2025 2024 Collectively assessed $m Individually assessed $m Collectively assessed $m Individually assessed $m Collectively assessed $m Individually assessed $m Collectively assessed $m Individually assessed $m Net loans and advances at amortised cost 136 556 214 462 182 434 (6) 367 Off-balance sheet commitments (15) 34 40 3 (24) 32 15 - Investment securities - debt securities at amortised cost - - 3 - 2 - (1) - Investment securities - debt securities at FVOCI (7) - 5 - (5) - 3 - Other financial asset - - - - - - - - Total 114 590 262 465 155 466 11 367 3. Consists of write-backs in Net loans and advances at amortised cost of $137 million (2024: $177 million) for the Group and $76 million (2024: $132 million) for the Company, and Off-balance sheet commitments of $3 million (2024: $7 million) for the Group and $2 million (2024: $3 million) for the Company. The contractual amount outstanding on financial assets that were written off during the year and that are still subject to enforcement activity is $134 million (2024: $136 million) for the Group and $116 million (2024: $116 million) for the Company. 118 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 13. Allowance for expected credit losses #### (continued) #### Recognition and measurement Expected credit loss model The measurement of expected credit losses reflects an unbiased, probability weighted prediction which evaluates a range of scenarios and takes into account the time value of money, past events, current conditions and forecasts of future economic conditions. Expected credit losses are either measured over 12 months or the expected lifetime of the financial asset, depending on credit deterioration since origination, according to the following three-stage approach: • Stage 1: At the origination of a financial asset, and where there has not been a Significant Increase in Credit Risk (SICR) since origination, an allowance for ECL is recognised reflecting the expected credit losses resulting from default events that are possible within the next 12 months from the reporting date. For instruments with a remaining maturity of less than 12 months, expected credit losses are estimated based on default events that are possible over the remaining time to maturity. • Stage 2: Where there has been a SICR since origination, an allowance for ECL is recognised reflecting expected credit losses resulting from all possible default events over the expected life of a financial instrument. If credit risk were to improve in a subsequent period such that the increase in credit risk since origination is no longer considered significant, the exposure returns to a Stage 1 classification with ECL measured accordingly. • Stage 3: Where there is objective evidence of impairment, an allowance equivalent to lifetime ECL is recognised. Expected credit losses are estimated on a collective basis for exposures in Stage 1 and Stage 2, and on either a collective or individual basis when transferred to Stage 3. For financial assets that are credit-impaired on initial recognition, lifetime ECL are incorporated into the calculation of the effective interest rate on initial recognition. Consequently, these assets do not carry an expected credit loss allowance on initial recognition. The amount recognised as a provision for credit losses after initial recognition is equal to the change in the lifetime expected credit loss since initial recognition. Measurement of expected credit loss ECL is calculated as the product of the following credit risk factors at a facility level, discounted to incorporate the time value of money: • Probability of default (PD) - the estimate of the likelihood that a borrower will default over a given period; • Exposure at default (EAD) - the expected balance sheet exposure at default taking into account repayments of principal and interest, expected additional drawdowns and accrued interest; and • Loss given default (LGD) - the expected loss in the event of the borrower defaulting, expressed as a percentage of the facility's EAD, taking into account direct and indirect recovery costs. These credit risk factors are adjusted for current and forward-looking information through the use of macroeconomic variables. Expected life When estimating ECL for exposures in Stage 2 and 3, the Group considers the expected lifetime over which it is exposed to credit risk. For non-retail portfolios, the Group uses the maximum contractual period as the expected lifetime for non-revolving credit facilities. For non- retail revolving credit facilities, such as corporate lines of credit, the expected life reflects the Group’s contractual right to withdraw a facility as part of a contractually agreed annual review, after taking into account the applicable notice period. For retail portfolios, the expected lifetime is determined using a behavioural term, taking into account expected prepayment behaviour and events that give rise to substantial modifications. Definition of default, credit impaired and write-offs The definition of default used in measuring ECL is aligned to the definition used for internal credit risk management purposes across all portfolios. This definition is also in line with the regulatory definition of default. Default occurs when there are indicators that a debtor is unlikely to fully satisfy contractual credit obligations to the Group, or the exposure is 90 days past due. Financial assets, including those that are well secured, are considered credit impaired for financial reporting purposes when they default. When there is no realistic probability of recovery, loans are written off against the related impairment allowance on completion of the Group’s internal processes and when all reasonably expected recoveries have been collected. In subsequent periods, any recoveries of amounts previously written-off are recorded as a release to the credit impairment charge in the Income Statement. Modified financial assets If the contractual terms of a financial asset are modified or an existing financial asset is replaced with a new one for either credit or commercial reasons, an assessment is made to determine if the changes to the terms of the existing financial asset are considered substantial. This assessment considers both changes in cash flows arising from the modified terms as well as changes in the overall instrument risk profile; for example, changes in the principal (credit limit), term, or type of underlying collateral. Where a modification is considered non-substantial, the existing financial asset is not derecognised and its date of origination continues to be used to determine SICR. Where a modification is considered substantial, the existing financial asset is derecognised and a new financial asset is recognised at its fair value on the modification date, which also becomes the date of origination used to determine SICR for this new asset. 119 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 119 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 13. Allowance for expected credit losses #### (continued) Significant increase in credit risk Stage 2 assets are those that have experienced a SICR since origination. In determining what constitutes a SICR, the Group considers both qualitative and quantitative information: i. Internal credit rating grade For the majority of portfolios, the primary indicator of a SICR is a significant deterioration in the internal credit rating grade of a facility sinc e origination and is measured by the application of thresholds. For non-retail portfolios, a SICR is determined by comparing the Customer Credit Rating (CCR) applicable to a facility at reporting date to the CCR at origination of that facility. A CCR is assigned to each borrower which reflects the PD of the borrower and incorporates both borrower and non-borrower specific information, including forward-looking information. CCRs are subject to review at least annually or more frequently when an event occurs which could affect the credit risk of the customer. For retail portfolios, a SIC R is determined, depending on the type of facility, by either comparing the scenario weighted lifetim e PD at the reporting date to that at origination, or by reference to customer behavioural score thresholds. The scenario weighted lifetime probability of default may increase significantly if: • there has been a deterioration in the economic outlook, or an increase in economic uncertainty; or • there has been a deterioration in the customer’s overall credit position, or ability to manage their credit obligations. ii. Backstop criteria The Group uses 30 days past due arrears as a backstop criterion for both non-retail and retail portfolios. For retail portfolios only , facilities are required to demonstrate three to six months of good payment behaviour prior to being allocated back to Stage 1. Forward-looking information Forward-looking information is incorporated into both our assessment of whether a financial asset has experienced a SICR since origination and in our estimate of ECL. In applying forward-looking information for estimating ECL, the Group considers four probability-weighted forecast economic scenarios as follows: i. Base case scenario The base case scenario is the Group’s view of future macroeconomic conditions. It reflects the same basis of assumptions used by management for strategic planning and budgeting, and also informs the Group Internal Capital Adequacy Assessment Process which is the process the Group applies in strategic and capital planning over a 3-year time horizon; ii. Upside scenario The upside scenario is fixed by reference to average economic cycle conditions (not economic conditions prevailing at balance date) and is based on a combination of more optimistic economic events and uncertainty over long term horizons; and iii. Downside and iv. Severe downside scenario The downside and severe scenarios assume an economic downturn, both domestically and globally. Forecast macroeconomic variables for such scenarios are developed internally, reflecting plausible scenarios unfolding over a 5-year period given current economic conditions. These assumptions have been revised in 2025, reflecting a sharp rise in inflation, declining asset prices, and increases to unemployment. The impacts to underlying macroeconomic variables are deeper in the case of the severe scenario. The four scenarios are described in terms of macroeconomic variables used in the PD, LGD and EAD models (collectively the ECL models) depending on the lending portfolio and country of the borrower. Examples of the macroeconomic variables include unemployment rates, Gross Domestic Product (GDP) growth rates, residential property price indices, commercial property price indices and consumer price indices. Probability weighting of each scenario is determined by management considering the risks and uncertainties surrounding the base case economic scenario, as well as specific portfolio considerations where required. The Group Asset and Liability Committee (GALCO) is responsible for reviewing and approving the base case economic scenario and the Credit and Market Risk Committee (CMRC) approves the probability weights applied to each scenario. Where applicable, temporary adjustments may be made to account for situations where known or expected risks have not been adequately addressed in the modelling process. #### Recognition and measurement (continued) 120 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 120 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 120 13. Allowance for expected credit losses (continued) Significant increase in credit risk Stage 2 assets are those that have experienced a SICR since origination. In determining what constitutes a SICR, the Group considers both qualitative and quantitative information: i. Internal credit rating grade For the majority of portfolios, the primary indicator of a SICR is a significant deterioration in the internal credit rating grade of a facility sinc e origination and is measured by the application of thresholds. For non-retail portfolios, a SICR is determined by comparing the Customer Credit Rating (CCR) applicable to a facility at reporting date to the CCR at origination of that facility. A CCR is assigned to each borrower which reflects the PD of the borrower and incorporates both borrower and non-borrower specific information, including forward-looking information. CCRs are subject to review at least annually or more frequently when an event occurs which could affect the credit risk of the customer. For retail portfolios, a SIC R is determined, depending on the type of facility, by either comparing the scenario weighted lifetim e PD at the reporting date to that at origination, or by reference to customer behavioural score thresholds. The scenario weighted lifetime probability of default may increase significantly if: • there has been a deterioration in the economic outlook, or an increase in economic uncertainty; or • there has been a deterioration in the customer’s overall credit position, or ability to manage their credit obligations. ii. Backstop criteria The Group uses 30 days past due arrears as a backstop criterion for both non-retail and retail portfolios. For retail portfolios only , facilities are required to demonstrate three to six months of good payment behaviour prior to being allocated back to Stage 1. Forward-looking information Forward-looking information is incorporated into both our assessment of whether a financial asset has experienced a SICR since origination and in our estimate of ECL. In applying forward-looking information for estimating ECL, the Group considers four probability-weighted forecast economic scenarios as follows: i. Base case scenario The base case scenario is the Group’s view of future macroeconomic conditions. It reflects the same basis of assumptions used by management for strategic planning and budgeting, and also informs the Group Internal Capital Adequacy Assessment Process which is the process the Group applies in strategic and capital planning over a 3-year time horizon; ii. Upside scenario The upside scenario is fixed by reference to average economic cycle conditions (not economic conditions prevailing at balance date) and is based on a combination of more optimistic economic events and uncertainty over long term horizons; and iii. Downside and iv. Severe downside scenario The downside and severe scenarios assume an economic downturn, both domestically and globally. Forecast macroeconomic variables for such scenarios are developed internally, reflecting plausible scenarios unfolding over a 5-year period given current economic conditions. These assumptions have been revised in 2025, reflecting a sharp rise in inflation, declining asset prices, and increases to unemployment. The impacts to underlying macroeconomic variables are deeper in the case of the severe scenario. The four scenarios are described in terms of macroeconomic variables used in the PD, LGD and EAD models (collectively the ECL models) depending on the lending portfolio and country of the borrower. Examples of the macroeconomic variables include unemployment rates, Gross Domestic Product (GDP) growth rates, residential property price indices, commercial property price indices and consumer price indices. Probability weighting of each scenario is determined by management considering the risks and uncertainties surrounding the base case economic scenario, as well as specific portfolio considerations where required. The Group Asset and Liability Committee (GALCO) is responsible for reviewing and approving the base case economic scenario and the Credit and Market Risk Committee (CMRC) approves the probability weights applied to each scenario. Where applicable, temporary adjustments may be made to account for situations where known or expected risks have not been adequately addressed in the modelling process. #### (continued) #### Recognition and measurement (continued) 120 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 13. Allowance for expected credit losses #### (continued) #### Key judgements and estimates Collectively assessed allowance for expected credit losses In estimating collectively assessed ECL, the Group makes judgements and assumptions in relation to: • the selection of an estimation technique or modelling methodology; an d • the selection of inputs for those models, and the interdependencies between those inputs. The following table summarises the key judgements and assumptions in relation to the model inputs and the interdependencies between those inputs, and highlights significant changes during the current period. The judgements and associated assumptions have been made within the context of the uncertainty as to how various factors might impact the global economy and reflect historical experience and other factors that are considered to be relevant, including expectations of future events that are believed to be reasonable under the circumstances. The Group’s ECL estimates are inherently uncertain and, as a result, actual results may differ from these estimates. Judgement/Assumption Description Considerations for the year ended 30 September 2025 Determining when a SICR has occurred or reversed In the measurement of ECL, judgement is involved in deter mining whether there has been a SICR since initial recognition of a loan, which would result in it moving from Stage 1 to Stage 2. This is a key area of judgement since transition from Stage 1 to Stage 2 increases the ECL from an allowance based on the PD in the next 12 months, to an allowance for lifetime ECL. Subsequent decreases in credit risk resulting in transition from Stage 2 to Stage 1 may similarly result in significant changes in the ECL allowance. The setting of precise SICR trigger points requires judgement which may have a material impact upon the size of the ECL allowance. The Group monitors the effectiveness of SICR criteria on an ongoing basis. The determination of SICR was consistent with prior period. Measuring both 12- month and lifetime expected credit losses The PD, LGD and EAD factors used in determining ECL are point-in-time measures reflecting the relevant forward-looking information determined by management. Judgement is involved in determining which forward-looking information is relevant for particular lending portfolios and for determining each portfolio’s point-in-time sensitivity. In addition, judgement is required where behavioural characteristics are applied in estimating the lifetime of a facility which is used in measuring ECL. The PD, LGD and EAD models are subject to the Group’s model risk policy that stipulates periodic model monitoring and re-validation, and defines approval procedures and authorities according to model materiality. There were no material changes to the policy. Base case economic forecast The Group derives a forward-looking ‘base case’ economic scenario which reflects ANZ Economics’ view of future macroeconomic conditions. There have been no changes to the types of forward- looking variables (key economic drivers) used as model inputs. The base case assumptions have been updated to reflect a stabilisation in inflation in both Australia and New Zealand. Near-term growth forecasts have been reduced, reflecting the impacts of global uncertainty. A return to average GDP growth rates is forecast in Australia for 2026. In New Zealand, weaker GDP growth momentum pushes the return to average out to 2027. Further interest rate cuts in both economies are expected to contribute to a recovery in consumer spending. The level of unemployment is elevated in New Zealand but projected to fall, whereas it remains relatively low in Australia. The expected outcomes of key economic drivers for the base case scenario at 30 September 2025 are described below under the heading “Base case economic forecast assumptions”. 121 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 121 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 13. Allowance for expected credit losses #### (continued) | | | | | --- | --- | --- | | Judgement/Assumption | Description | | | | | Considerations for the year ended | | | | 30 September 2025 | | Probability weighting of | | | | each economic scenario | | | | (base case, upside, | | | | downside and severe | | | | downside scenarios) | | | | | | | | | Probability weighting of each economic scenario is | | | | determined by management considering the risks and | | | | uncertainties surrounding the base case economic | | | | scenario at each measurement date. | | | | The assigned probability weightings in Australia, New | | | | Zealand and Rest of World are subject to a high | | | | degree of inherent uncertainty and therefore the | | | | actual outcomes may be significantly different to | | | | those projected. | | | | | Probability weightings in Australia, New Zealand and | | | | Rest of World remain unchanged from the prior | | | | period, reflecting our assessment of the continuing | | | | downside risks in local and global economies, and | | | | uncertainties related to foreign policies. | | | | The probability weightings for current and prior | | | | periods are as detailed in the section below under the | | | | heading ‘Probability weightings’. | | Management temporary | | | | adjustments | | | | | Management temporary adjustments to the ECL | | | | allowance are used in circumstances where it is | | | | judged that our existing inputs, assumptions and | | | | model techniques do not capture all the risk factors | | | | relevant to our lending portfolios. Emerging local or | | | | global macroeconomic, microeconomic or political | | | | events, and natural disasters that are not incorporated | | | | into our current parameters, risk ratings, or forward- | | | | looking information are examples of such | | | | circumstances. | | | | | Management have continued to apply adjustments to | | | | accommodate risks associated with higher inflation | | | | and interest rates experienced over the last few years. | | | | Management overlays have been made for risks | | | | particular to home loans, credit cards and commercial | | | | lending in Australia, and for mortgages and | | | | commercial lending in New Zealand. The total amount | | | | of adjustments has decreased from the prior period | | | | as anticipated risks are now represented in the | | | | portfolio credit profiles. | | | | Management has considered and concluded no | | | | temporary adjustment is required at 30 September | | | | 2025 to the ECL in relation to climate or weather | | | | related events during the period. | Base case economic forecast assumptions Continuing uncertainties described above increase the risk of the economic forecast resulting in an understatement or overstatement of the ECL balance. The economic drivers of the base case economic forecasts, reflective of ANZ Economics’ view of future macroeconomic conditions used at 30 September 2025 are set out below. For the years following the near-term forecasts below, the ECL models apply simplified assumptions for the economic conditions to calculate lifetime loss. | | | | | | --- | --- | --- | --- | | | | Forecast calendar year | | | | 2025 | 2026 | 2027 | | Australia | | | | | GDP (annual % change) | 1.8 | 2.4 | 2.4 | | Unemployment rate (annual average) | 4.2 | 4.3 | 4.0 | | Residential property prices (annual % change) | 5.0 | 5.8 | 4.8 | | Consumer price index (annual average % change) | 2.5 | 2.6 | 2.4 | | New Zealand | | | | | GDP (annual % change) | 0.9 | 2.4 | 2.7 | | Unemployment rate (annual average) | 5.2 | 4.8 | 4.3 | | Residential property prices (annual % change) | 2.5 | 5.0 | 4.5 | | Consumer price index (annual average % change) | 2.7 | 1.9 | 2.0 | | Rest of World | | | | | GDP (annual % change) | 1.5 | 1.9 | 2.0 | | Consumer price index (annual average % change) | 3.0 | 2.4 | 2.0 | #### Key judgements and estimates (continued) 122 Notes to the consolidated financial statements (continued) 20 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 122 13. Allowance for expected credit losses (continued) Judgement/Assumption Description Considerations for the year ended 30 September 2025 Probability weighting of each economic scenario (base case, upside, downside and severe downside scenarios) Probability weighting of each economic scenario is determined by management considering the risks and uncertainties surrounding the base case economic scenario at each measurement date. The assigned probability weightings in Australia, New Zealand and Rest of World are subject to a high degree of inherent uncertainty and therefore the actual outcomes may be significantly different to those projected. Probability weightings in Australia, New Zealand and Rest of World remain unchanged from the prior period, reflecting our assessment of the continuing downside risks in local and global economies, and uncertainties related to foreign policies. The probability weightings for current and prior periods are as detailed in the section below under the heading ‘Probability weightings’. Management temporary adjustments Management temporary adjustments to the ECL allowance are used in circumstances where it is judged that our existing inputs, assumptions and model techniques do not capture all the risk factors relevant to our lending portfolios. Emerging local or global macroeconomic, microeconomic or political events, and natural disasters that are not incorporated into our current parameters, risk ratings, or forward- looking information are examples of such circumstances. Management have continued to apply adjustments to accommodate risks associated with higher inflation and interest rates experienced over the last few years. Management overlays have been made for risks particular to home loans, credit cards and commercial lending in Australia, and for mortgages and commercial lending in New Zealand. The total amount of adjustments has decreased from the prior period as anticipated risks are now represented in the portfolio credit profiles. Management has considered and concluded no temporary adjustment is required at 30 September 2025 to the ECL in relation to climate or weather related events during the period. Base case economic forecast assumptions Continuing uncertainties described above increase the risk of the economic forecast resulting in an understatement or overstatement of the ECL balance. The economic drivers of the base case economic forecasts, reflective of ANZ Economics’ view of future macroeconomic conditions used at 30 September 2025 are set out below. For the years following the near-term forecasts below, the ECL models apply simplified assumptions for the economic conditions to calculate lifetime loss. Forecast calendar year 2025 2026 2027 Australia GDP (annual % change) 1.8 2.4 2.4 Unemployment rate (annual average) 4.2 4.3 4.0 Residential property prices (annual % change) 5.0 5.8 4.8 Consumer price index (annual average % change) 2.5 2.6 2.4 New Zealand GDP (annual % change) 0.9 2.4 2.7 Unemployment rate (annual average) 5.2 4.8 4.3 Residential property prices (annual % change) 2.5 5.0 4.5 Consumer price index (annual average % change) 2.7 1.9 2.0 Rest of World GDP (annual % change) 1.5 1.9 2.0 Consumer price index (annual average % change) 3.0 2.4 2.0 ( ( c c o o n n t t i i n n u u e e d d ) ) #### Key judgements and estimates (continued) 122 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 13. Allowance for expected credit losses #### (continued) P P r r o o b b a a b b i i l l i i t t y y w w e e i i g g h h t t i i n n g g s s Probability weightings for each scenario are determined by management considering the risks and uncertainties surrounding the base case economic scenario including the uncertainties described above. The assigned probability weightings in Australia, New Zealand and Rest of World are subject to a high degree of inherent uncertainty and therefore the actual outcomes may be significantly different to those projected. The Group considers these weightings in each geography to provide estimates of the possible loss outcomes and taking into account short- and long-term inter-relationships within the Group’s credit portfolios. The average weightings applied across the Group are set out below: | | | | | | | --- | --- | --- | --- | --- | | | Consolidat | | | | | | ed | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | Base | 46% | 46% | 45% | 45% | | Upside | 1% | 1% | 0% | 0% | | Downside | 40% | 40% | 42% | 42% | | Severe downside | 13% | 13% | 13% | 13% | E E C C L L - - S S e e n n s s i i t t i i v v i i t t y y a a n n a a l l y y s s i i s s Given current economic uncertainties and the judgement applied to factors used in determining the expected default of borrowers in future periods, expected credit losses reported by the Group should be considered as a best estimate within a range of possible estimates. The table below illustrates the sensitivity of collectively assessed ECL to key factors used in determining it as at 30 September 2025: | | | | | | | --- | --- | --- | --- | --- | | | Consolidat | | | | | | ed | | The Company | | | | ECL | | | | | | $m | | | | | | | Impact | | | | | | $m | | | | | | | ECL | | | | | | $m | | | | | | | Impact | | | | | | $m | | If 1% o | | | | | | f Stage 1 facilities were included in Stage 2 | 4,428 | 49 | 3,414 | 42 | | If 1% of Stage 2 facilities were included in Stage 1 | 4,373 | (6) | 3,368 | (4) | | 100% upside scenario | 1,550 | (2,829) | 1,186 | (2,186) | | 100% base scenario | 1,997 | (2,382) | 1,525 | (1,847) | | 100% downside scenario | 4,458 | 79 | 3,361 | (11) | | 100% severe downside scenario | 9,913 | 5,534 | 7,582 | 4,210 | Individually assessed allowance for expected credit losses In estimating individually assessed ECL, the Group makes judgements and assumptions in relation to expected repayments, the realisable value of collateral, business prospects for the customer, competing claims and the likely cost and duration of the work-out process. Judgements and assumptions in respect of these matters have been updated to reflect amongst other things, the uncertainties described above. #### Key judgements and estimates (continued) 123 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 123 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Financial liabilities Outlined below is a description of how we classify and measure financial liabilities relevant to Note 14 to 16. #### Classification and measurement Financial liabilities Financial liabilities are measured at amortised cost, or FVTPL when they are held for trading. Additionally, financial liabilities can be designated at FVTPL where: • the designation eliminates or significantly reduces an accounting mismatch which would otherwise arise; • a group of financial liabilities are managed and their performance are evaluated on a fair value basis, in accordance with a documented risk management strategy; or • the financial liability contains one or more embedded derivatives unless: a) the embedded derivative does not significantly modify the cash flows that otherwise would be required by the contract; or b) the embedded derivative is closely related to the host financial liability. Where financial liabilities are designated as measured at fair value, gains or losses relating to changes in the entity’s own credit risk are included in Other comprehensive income, except where doing so would create or enlarge an accounting mismatch in profit or loss. 124 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 124 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 124 #### Financial liabilities Outlined below is a description of how we classify and measure financial liabilities relevant to Note 14 to 16. Financial liabilities Financial liabilities are measured at amortised cost, or FVTPL when they are held for trading. Additionally, financial liabilities can be designated at FVTPL where: • the designation eliminates or significantly reduces an accounting mismatch which would otherwise arise; • a group of financial liabilities are managed and their performance are evaluated on a fair value basis, in accordance with a documented risk management strategy; or • the financial liability contains one or more embedded derivatives unless: a) the embedded derivative does not significantly modify the cash flows that otherwise would be required by the contract; or b) the embedded derivative is closely related to the host financial liability. Where financial liabilities are designated as measured at fair value, gains or losses relating to changes in the entity’s own credit risk are included in Other comprehensive income, except where doing so would create or enlarge an accounting mismatch in profit or loss. #### Classification and measurement 124 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 14. Deposits and other borrowings | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Certificates of deposit | | | | | | | 45,761 | 42,206 | 40,386 | 35,434 | | Term deposits | 268,818 | 273,516 | 198,052 | 199,943 | | On demand and short term deposits | | | | | | | 419,068 | 383,014 | 319,973 | 288,228 | | Deposits not bearing interest | | | | | | | 61,336 | 60,104 | 42,085 | 41,386 | | Deposits from banks & securities sold under repurchase agreements | | | | | | | 111,802 | 98,550 | 106,861 | 94,513 | | Commercial paper and other borrowings | | | | | | | 49,616 | 47,776 | 44,216 | 44,366 | | Deposits and other borrowings | | | | | | 1 | | | | | | | 956,401 | 905,166 | 751,573 | 703,870 | | Residual contractual maturity: | | | | | | Within one year | 944,664 | 894,658 | 745,129 | 699,192 | | More than one year | | | | | | | 11,737 | 10,508 | 6,444 | 4,678 | | Deposits and other borrowings | | | | | | | 956,401 | 905,166 | 751,573 | 703,870 | | Carried on Balance Sheet at: | | | | | | Amortised cost | 898,713 | 862,165 | 700,582 | 662,910 | | Fair value through profit or loss | | | | | | | 57,688 | 43,001 | 50,991 | 40,960 | | Deposits and other borrowings | | | | | | | 956,401 | 905,166 | 751,573 | 703,870 | 1. Customer deposits balance of $749,222 million (2024: $716,634 million) for the Group and $560,110 million (2024: $529,557 million) for the Company includes Term deposits, On demand and short term deposits and Deposits not bearing interest. #### Recognition and measurement For deposits and other borrowings that: • are not designated at FVTPL on initial recognition, we measure them at amortised cost and recognise their interest expense using the effective interest rate method; and • are managed on a fair value basis, reduce or eliminate an accounting mismatch or contain an embedded derivative, we designate them as measured at FVTPL. Refer to Note 18 Fair value of financial assets and financial liabilities for further details. For deposits and other borrowings designated at fair value we recognise the amount of fair value gain or loss attributable to changes in the Group’s own credit risk in other comprehensive income in retained earnings. Any remaining amount of fair value gain or loss we recognise directly in profit or loss. Once we have recognised an amount in other comprehensive income, we do not later reclassify it to profit or loss. Securities sold under repurchase agreements represent a liability to repurchase the financial assets that remain on our balance sheet since the risks and rewards of ownership remain with the Group. Over the life of the repurchase agreement, we recognise the difference between the sale price and the repurchase price and charge it to interest expense in profit or loss. 2024 2025 Certificates of deposit Term deposits On demand and short term deposits Deposits not bearing interest Deposits from banks & securities sold under repurchase agreements 273,516 383,014 60,104 47,776 98,550 Commercial paper and other borrowings 42,206 268,818 419,068 61,336 49.616 111,802 45,761 125 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 125 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 15. Payables and other liabilities | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Co | | | | | | mpany | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Payables and accruals | | | | | | | 6,246 | 7,243 | 4,679 | 4,989 | | Liabilities at fair value | 3,960 | 6,023 | 3,775 | 5,677 | | Lease liabilities | | | | | | | 1,723 | 1,784 | 1,352 | 1,402 | | Trail commission liabilities | | | | | | | 2,106 | 2,055 | 1,715 | 1,606 | | Other liabilities | | | | | | | 1,112 | 1,489 | 632 | 800 | | Payables and other liabilities | | | | | | | 15,147 | 18,594 | 12,153 | 14,474 | #### Recognition and measurement The Group recognises liabilities when there is a present obligation to transfer economic resources as a result of past events. Below is the measurement basis for each item classified as other liabilities: • Payables, accruals and other liabilities are measured at the contractual amount payable or the best estimate of consideration required to settle the payable. • Liabilities at fair value relate to securities sold short, which we classify as held for trading and measure at FVTPL based on quoted prices in active markets. • Lease liabilities are initially measured at the present value of the future lease payments using the Group’s incremental borrowing rate at the lease commencement date. The carrying amount is then subsequently adjusted to reflect the interest on the lease liability, lease payments that have been made and any lease reassessments or modifications. • Trail commission liabilities are measured based on the present value of expected future trail commission payments taking into consideration average behavioural loan life and outstanding balances of broker originated loans. 126 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 126 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 126 15. Payables and other liabilities Consolidated The Co mpany 2025 2024 2025 2024 $m $m $m $m Payables and accruals 6,246 7,243 4,679 4,989 Liabilities at fair value 3,960 6,02 3 3,775 5,677 Lease liabilities 1,723 1,784 1,352 1,402 Trail commission liabilities 2,106 2,055 1,715 1,606 Other liabilities 1,112 1,489 632 800 Payables and other liabilities 15,147 18,594 12,153 14,474 The Group recognises liabilities when there is a present obligation to transfer economic resources as a result of past events. Below is the measurement basis for each item classified as other liabilities: • Payables, accruals and other liabilities are measured at the contractual amount payable or the best estimate of consideration required to settle the payable. • Liabilities at fair value relate to securities sold short, which we classify as held for trading and measure at FVTPL based on quoted prices in active markets. • Lease liabilities are initially measured at the present value of the future lease payments using the Group’s incremental borrowing rate at the lease commencement date. The carrying amount is then subsequently adjusted to reflect the interest on the lease liability, lease payments that have been made and any lease reassessments or modifications. • Trail commission liabilities are measured based on the present value of expected future trail commission payments taking into consideration average behavioural loan life and outstanding balances of broker originated loans. #### Recognition and measurement 126 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 16. Debt issuances The Group, primarily via ANZBGL and some of its banking subsidiaries (including ANZ Bank New Zealand and Norfina Limited (Suncorp Bank)), uses a variety of funding programmes to issue senior debt (including covered bonds and securitisations) and subordinated debt. The difference between senior debt and subordinated debt is that, in a winding up of an issuer, holders of senior debt of that issuer rank in priority to holders of subordinated debt of that issuer. Subordinated debt will be repaid by the relevant issuer only after the repayment of claims of its depositors and other creditors (including the senior debt holders) of that issuer. | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Senior debt | | | | | | | 106,782 | 94,152 | 83,768 | 72,183 | | Covered bonds | 12,985 | 18,931 | 8,433 | 13,853 | | Securitisation | | | | | | | 5,396 | 3,640 | - | - | | Total unsubordinated debt | | | | | | | 125,163 | 116,723 | 92,201 | 86,036 | | Subordinated debt | | | | | | - ANZBGL Additi | | | | | | onal Tier 1 capital | | | | | | | 7,452 | 8,277 | 7,479 | 8,330 | | - ANZBGL Tier 2 capital | | | | | | | 33,811 | 28,584 | 33,811 | 28,584 | | - Other subordinated debt securities | | | | | | | 2,848 | 2,804 | - | - | | Total subordinated debt | | | | | | | 44,111 | 39,665 | 41,290 | 36,914 | | Total debt issued | 169,274 | 156,388 | 133,491 | 122,950 | | Residual contractual maturity | | | | | | 1 | | | | | | : | | | | | | Within one year | 43,080 | 35,107 | 36,053 | 28,751 | | More than one year | | | | | | | 123,905 | 119,090 | 95,918 | 92,751 | | No maturity date (instruments in perpetuity) | | | | | | | 2,289 | 2,191 | 1,520 | 1,448 | | Total debt issued | | | | | | | 169,274 | 156,388 | 133,491 | 122,950 | | Carried on Balance Sheet at: | | | | | | Amortised cost | 166,504 | 154,572 | 129,703 | 120,155 | | Fair value through profit or loss | | | | | | | 2,770 | 1,816 | 3,788 | 2,795 | | Total debt issued | | | | | | | 169,274 | 156,388 | 133,491 | 122,950 | 1. Based on the final maturity date or, in the case of Additional Tier 1 capital securities, the mandatory conversion date (if any). Total debt issued by currency The table below shows the Group’s issued debt by currency of issue, which broadly represents the debt holders’ base location. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | Consolidated | | The C | | | | | | | ompany | | | | | 2025 | 2024 | 2025 | 2024 | | | | $m | $m | $m | $m | | USD | United States dollars | | | | | | | | 49,563 | 45,512 | 42,455 | 37,381 | | EUR | Euro | 27,751 | 26,325 | 21,687 | 20,911 | | AUD | Australian dollars | | | | | | | | 76,329 | 69,420 | 55,333 | 51,234 | | NZD | New Zealand dollars | | | | | | | | 1,675 | 1,074 | 62 | 65 | | JPY | Japanese yen | | | | | | | | 2,603 | 2,609 | 2,603 | 2,609 | | GBP | Pounds sterling | | | | | | | | 8,940 | 8,543 | 8,940 | 8,543 | | HKD | Hong Kong dollars | | | | | | | | 949 | 1,403 | 949 | 1,403 | | Other | Chinese yuan, Singapore dollars and Swiss francs | | | | | | | | 1,464 | 1,502 | 1,462 | 804 | | Total debt issued | | | | | | | | | 169,274 | 156,388 | 133,491 | 122,950 | Subordinated debt Subordinated debt is primarily issued externally by the Group out of its banking subsidiaries ANZBGL and ANZ Bank New Zealand. ANZ Holdings (New Zealand) Limited has also issued a perpetual subordinated debt security. The externally issued subordinated debt constitutes subordinated debt of both the Group and the relevant issuer. At 30 September 2025, all subordinated debt issued by ANZBGL qualifies as regulatory capital for ANZBGL. Depending on their terms and conditions, the subordinated debt instruments issued by ANZBGL are classified as either Additional Tier 1 (AT1) capital for ANZBGL (in the case of the ANZ Capital Notes (ANZ CN) and ANZ Capital Securities (ANZ CS)) or Tier 2 capital for ANZBGL (in the case of the term subordinated notes) for APRA’s capital adequacy purposes. Subordinated debt issued by ANZ Holdings (New Zealand) Limited or ANZ Bank New Zealand does not constitute regulatory capital for the Group for APRA’s capital adequacy purposes. Subordinated debt issued by ANZ Bank New Zealand will constitute tier 2 capital for ANZ Bank New Zealand for the purposes of the Reserve Bank of New Zealand’s (RBNZ) capital requirements. Subordinated debt issued by ANZ Holdings (New Zealand) Limited does not constitute regulatory capital for the RBNZ’s capital adequacy purposes. 127 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 127 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 16. Debt issuances (continued) AT1 capital All outstanding AT1 capital instruments issued by ANZBGL are Basel III fully compliant instruments (refer to Note 23 Capital management for further information about Basel III) for APRA’s capital adequacy purposes. Each of the ANZ CN and ANZ CS rank equally with each other. Distributions on the AT1 capital instruments are non-cumulative and subject to the issuer’s absolute discretion and certain payment conditions (including regulatory requirements). Distributions on ANZ CNs are franked in line with the franking applied to ANZGHL’s ordinary shares. Where specified, the AT1 capital instruments provide the issuer with an early redemption or conversion option on a specified date and in certain other circumstances (such as a tax or regulatory event). This redemption option is subject to APRA’s prior written approval. Each of the AT1 capital instruments will immediately convert into a variable number of ANZGHL’s ordinary shares (based on the average market price of the shares immediately prior to conversion less a 1% discount, subject to a maximum conversion number of ANZGHL’s ordinary shares) if: • ANZBGL’s Common Equity Tier 1 capital ratios are equal to or less than 5.125% - known as a Common Equity Capital Trigger Event; or • APRA notifies ANZBGL that, without the conversion or write-off of certain securities or a public sector injection of capital (or equivalent support), it considers that ANZBGL would become non-viable – known as a Non-Viability Trigger Event. Where specified, AT1 capital instruments mandatorily convert into a variable number of ANZGHL’s ordinary shares (based on the average market price of the shares immediately prior to conversion less a 1% discount): • on a specified mandatory conversion date; or • on an earlier date under certain circumstances as set out in the terms. However, this mandatory conversion is deferred for a specified period if certain conversion tests are not met. If the AT1 capital securities convert, and the holders receive ANZGHL ordinary shares, then: • the AT1 capital securities are transferred by the holders to ANZGHL for their face value; • ANZBGL shall redeem the securities and simultaneously issue ordinary shares to its parent ANZ BH Pty Ltd (based on ANZBGL’s share price calculated by reference to its consolidated net assets, subject to a maximum conversion number); and • ANZ BH Pty Ltd will issue shares to ANZGHL (based on ANZ BH Pty Ltd’s share price calculated by reference to its consolidated net assets, subject to a maximum conversion number). Preference shares issued by ANZ Bank New Zealand will constitute AT1 capital for ANZ Bank New Zealand for the purposes of the RBNZ’s capital requirements, however they will not constitute AT1 capital for the Group as the terms of the preference shares do not satisfy APRA’s capital requirements. Externally issued preference shares are included within non-controlling interests in Note 22 Shareholders’ equity. In accordance with its consultation paper, APRA has confirmed that its phase out of AT1 capital instruments will commence in January 2027. Refer to Note 23 Capital Management for more details on APRA’s AT1 consultation. The tables below show key details of the ANZBGL’s AT1 capital instruments on issue at 30 September in both the current and prior years: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | Consolidated | | The Company | | | | | 2025 | 2024 | 2025 | 2024 | | | | | $m | $m | $m | $m | | ANZBGL's Additional Tier 1 capital (perpetual subordinated securities) | | | | | | | | 1 | | | | | | | | | | | | | | | | ANZ Capital Notes | | | | | | | | AUD | 931m | | | | | | | | | ANZ CN5 | | | | | | 2 | | | | | | | | | | | - | 931 | - | 931 | | AUD | 1,500m | ANZ CN6 | | | | | | | | | 1,492 | 1,490 | 1,492 | 1,490 | | AUD | 1,310m | ANZ CN7 | | | | | | | | | 1,301 | 1,300 | 1,301 | 1,300 | | AUD | 1,500m | ANZ CN8 | | | | | | | | | 1,487 | 1,485 | 1,485 | 1,483 | | AUD | 1,700m | ANZ CN9 | | | | | | | | | 1,683 | 1,680 | 1,681 | 1,678 | | ANZ Capital Securities | | | | | | | | USD | 1,000m | ANZ Capital Securities | 1,489 | 1,391 | 1,520 | 1,448 | | Total ANZBGL Additional Tier 1 capital | | | | | | | | 3 | | | | | | | | | | | 7,452 | 8,277 | 7,479 | 8,330 | 1. Carrying values are net of issuance costs. 2. All of the ANZ CN5 were redeemed on 20 March 2025. 3. This forms part of ANZBGL’s qualifying AT1 capital. Refer to Note 23 Capital management for further details. 128 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 128 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 128 16. Debt issuances (continued) AT1 capital All outstanding AT1 capital instruments issued by ANZBGL are Basel III fully compliant instruments (refer to Note 23 Capital management for further information about Basel III) for APRA’s capital adequacy purposes. Each of the ANZ CN and ANZ CS rank equally with each other. Distributions on the AT1 capital instruments are non-cumulative and subject to the issuer’s absolute discretion and certain payment conditions (including regulatory requirements). Distributions on ANZ CNs are franked in line with the franking applied to ANZGHL’s ordinary shares. Where specified, the AT1 capital instruments provide the issuer with an early redemption or conversion option on a specified date and in certain other circumstances (such as a tax or regulatory event). This redemption option is subject to APRA’s prior written approval. Each of the AT1 capital instruments will immediately convert into a variable number of ANZGHL’s ordinary shares (based on the average market price of the shares immediately prior to conversion less a 1% discount, subject to a maximum conversion number of ANZGHL’s ordinary shares) if: • ANZBGL’s Common Equity Tier 1 capital ratios are equal to or less than 5.125% - known as a Common Equity Capital Trigger Event; or • APRA notifies ANZBGL that, without the conversion or write-off of certain securities or a public sector injection of capital (or equivalent support), it considers that ANZBGL would become non-viable – known as a Non-Viability Trigger Event. Where specified, AT1 capital instruments mandatorily convert into a variable number of ANZGHL’s ordinary shares (based on the average market price of the shares immediately prior to conversion less a 1% discount): • on a specified mandatory conversion date; or • on an earlier date under certain circumstances as set out in the terms. However, this mandatory conversion is deferred for a specified period if certain conversion tests are not met. If the AT1 capital securities convert, and the holders receive ANZGHL ordinary shares, then: • the AT1 capital securities are transferred by the holders to ANZGHL for their face value; • ANZBGL shall redeem the securities and simultaneously issue ordinary shares to its parent ANZ BH Pty Ltd (based on ANZBGL’s share price calculated by reference to its consolidated net assets, subject to a maximum conversion number); and • ANZ BH Pty Ltd will issue shares to ANZGHL (based on ANZ BH Pty Ltd’s share price calculated by reference to its consolidated net assets, subject to a maximum conversion number). Preference shares issued by ANZ Bank New Zealand will constitute AT1 capital for ANZ Bank New Zealand for the purposes of the RBNZ’s capital requirements, however they will not constitute AT1 capital for the Group as the terms of the preference shares do not satisfy APRA’s capital requirements. Externally issued preference shares are included within non-controlling interests in Note 22 Shareholders’ equity. In accordance with its consultation paper, APRA has confirmed that its phase out of AT1 capital instruments will commence in January 2027. Refer to Note 23 Capital Management for more details on APRA’s AT1 consultation. The tables below show key details of the ANZBGL’s AT1 capital instruments on issue at 30 September in both the current and prior years: Consolidated The Company 2025 2024 2025 2024 $m $m $m $m ANZBGL's Additional Tier 1 capital (perpetual subordinated securities) 1 ANZ Capital Notes AUD 931m ANZ CN5 2 - 931 - 931 AUD 1,500m ANZ CN6 1,492 1,490 1,492 1,490 AUD 1,310m ANZ CN7 1,301 1,300 1,301 1,300 AUD 1,500m ANZ CN8 1,487 1,485 1,485 1,483 AUD 1,700m ANZ CN9 1,683 1,680 1,681 1,678 ANZ Capital Securities USD 1,000m ANZ Capital Securities 1,489 1,391 1,520 1,448 Total ANZBGL Additional Tier 1 capital 3 7,452 8,277 7,479 8,330 1. Carrying values are net of issuance costs. 2. All of the ANZ CN5 were redeemed on 20 March 2025. 3. This forms part of ANZBGL’s qualifying AT1 capital. Refer to Note 23 Capital management for further details. 128 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 16. Debt issuances (continued) | | | | | | --- | --- | --- | --- | | ANZ Capital Notes | | | | | | | | | | | ANZ CN5 | ANZ CN6 | ANZ CN7 | | Issuer | ANZBGL | ANZBGL | ANZBGL | | Issue date | 28 September 2017 | 8 July 2021 | 24 March 2022 | | Issue amount | $931 million | $1,500 million | $1,310 million | | Face value per note | $100 | $100 | $100 | | Distribution frequency | Quarterly in arrears | Quarterly in arrears | Quarterly in arrears | | Distribution rate | Floating rate: (90 day Bank | | | | | Bill rate+3.8%)x(1-Australian | | | | | corporate tax rate) | | | | | | Floating rate: (90 day Bank | | | | | Bill rate+3.0%)x(1-Australian | | | | | corporate tax rate) | | | | | | Floating rate: (90 day Bank | | | | | Bill rate+2.7%)x(1-Australian | | | | | corporate tax rate) | | Issuer’s early redemption or conversion option | 20 March 2025 | | | | 1 | | | | | | | 20 March 2028 | 20 March 2029 | | Mandatory conversion date | 20 March 2027 | | | | 2 | | | | | | | 20 September 2030 | 20 September 2031 | | Common Equity Capital Trigger Event | Yes | Yes | Yes | | Non-Viability Trigger Event | Yes | Yes | Yes | | Carrying value (net of issue costs) | | | | | | Nil | $1,492 million | $1,301 million | | (2024: $931 million) | (2024: $1,4 | 90 million) | (2024: $1,300 million) | | | | | | --- | --- | --- | | | ANZ CN8 | ANZ CN9 | | Issuer | ANZBGL | ANZBGL | | Issue date | 24 March 2023 | 20 March 2024 | | Issue amount | $1,500 million | $1,700 million | | Face value per note | $100 | $100 | | Distribution frequency | Quarterly in arrears | Quarterly in arrears | | Distribution rate | Floating rate: (90 day Bank | | | | Bill rate+2.75%)x(1-Australian | | | | corporate tax rate) | | | | | Floating rate: (90 day Bank | | | | Bill rate+2.9%)x(1-Australian | | | | corporate tax rate) | | Issuer’s early redemption or conversion option | 20 March 2030 | 20 March 2031 | | Mandatory conversion date | 20 September 2032 | 20 September 2033 | | Common Equity Capital Trigger Event | Yes | Yes | | Non-Viability Trigger Event | Yes | Yes | | Carrying value (net of issue costs) | | | | | $1,487 million | $1,683 million | | | (2024: $1,485 million) | (2024: $1,680 million) | 1. All of the ANZ CN5 were redeemed on 20 March 2025. 2. The mandatory conversion date is no longer applicable as all of ANZ CN5 have been redeemed. 129 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 129 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 16. Debt issuances (continued) | | | | --- | --- | | ANZ Capital Securities | | | Issuer | ANZBGL, acting through its London branch | | Issue date | 15 June 2016 | | Issue amount | USD 1,000 million | | Face value | Minimum denomination of USD 200,000 and an integral multiple of USD 1,000 above that | | Interest frequency | Semi-annually in arrears | | Interest rate | Fixed at 6.75% p.a. until 15 June 2026. Reset on 15 June 2026 and each 5 year anniversary | | | to a floating rate: 5 year USD mid-market swap rate + 5.168% | | Issuer’s early redemption option | 15 June 2026 and each 5 year anniversary | | Common Equity Capital Trigger Event | Yes | | Non-Viability Trigger Event | Yes | | Carrying value (net of issue costs) | $1,489 million (2024: $1,391 million) | 130 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 130 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 130 16. Debt issuances (continued) ANZ Capital Securities Issuer ANZBGL, acting through its London branch Issue date 15 June 2016 Issue amount USD 1,000 million Face value Minimum denomination of USD 200,000 and an integral multiple of USD 1,000 above that Interest frequency Semi-annually in arrears Interest rate Fixed at 6.75% p.a. until 15 June 2026. Reset on 15 June 2026 and each 5 year anniversary to a floating rate: 5 year USD mid-market swap rate + 5.168% Issuer’s early redemption option 15 June 2026 and each 5 year anniversary Common Equity Capital Trigger Event Yes Non-Viability Trigger Event Yes Carrying value (net of issue costs) $1,489 million (2024: $1,391 million) 130 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 16. Debt issuances (continued) Tier 2 capital Convertible term subordinated notes issued by ANZBGL are Basel III fully compliant instruments for APRA’s capital adequacy purposes. If a Non-Viability Trigger Event occurs, each of the convertible term subordinated notes will immediately convert into ANZGHL ordinary shares (based on the average market price of the ANZGHL shares immediately prior to conversion less a 1% discount, subject to a maximum conversion number). If the Tier 2 capital securities convert, and the holders receive ANZGHL ordinary shares, then ANZBGL shall issue ordinary shares to its parent ANZ BH Pty Ltd (based on ANZBGL’s share price calculated by reference to its consolidated net assets, subject to a maximum conversion number) and ANZ BH Pty Ltd will issue shares to ANZGHL (calculated on the same basis). The table below shows the Tier 2 capital subordinated debt issued by ANZBGL at 30 September in the current and prior year: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Consolidated | | The Company | | | | | | Next optional call date – | Interest | | | | | | | | | | | 2025 | 2024 | 2025 | 2024 | | Currency | Face value | Maturity | subject to APRA’s prior approval | rate | | | | | | | | | | | $m | $m | $m | $m | | ANZBGL Tier 2 capital (term subordinated notes) | | | | | | | | | | JPY | 20,000m | 2026 | N/A | Fixed | 204 | 203 | 204 | 203 | | USD | 1,500m | 2026 | N/A | Fixed | | | | | | | | | | | 2,238 | 2,089 | 2,238 | 2,089 | | AUD | 225m | 2032 | 2027 | Fixed | | | | | | | | | | | 225 | 224 | 225 | 224 | | EUR | 1,000m | 2029 | 2024 | Fixed | | | | | | | | | | | - | 1,600 | - | 1,600 | | AUD | 265m | 2039 | N/A | Fixed | | | | | | | | | | | 189 | 189 | 189 | 189 | | USD | 1,250m | 2030 | 2025 | Fixed | | | | | | | | | | | - | 1,764 | - | 1,764 | | AUD | 1,250m | 2031 | 2026 | Floating | | | | | | | | | | | 1,250 | 1,250 | 1,250 | 1,250 | | USD | 1,500m | 2035 | 2030 | Fixed | | | | | | | | | | | 1,971 | 1,845 | 1,971 | 1,845 | | AUD | 330m | 2040 | N/A | Fixed | | | | | | | | | | | 223 | 225 | 223 | 225 | | AUD | 195m | 2040 | N/A | Fixed | | | | | | | | | | | 130 | 131 | 130 | 131 | | EUR | 750m | 2031 | 2026 | Fixed | | | | | | | | | | | 1,314 | 1,154 | 1,314 | 1,154 | | GBP | 500m | 2031 | 2026 | Fixed | | | | | | | | | | | 986 | 904 | 986 | 904 | | AUD | 1,450m | 2032 | 2027 | Fixed | | | | | | | | | | | 1,445 | 1,440 | 1,445 | 1,440 | | AUD | 300m | 2032 | 2027 | Floating | | | | | | | | | | | 300 | 290 | 300 | 290 | | JPY | 59,400m | 2032 | 2027 | Fixed | | | | | | | | | | | 598 | 597 | 598 | 597 | | SGD | 600m | 2032 | 2027 | Fixed | | | | | | | | | | | 726 | 684 | 726 | 684 | | AUD | 900m | 2034 | 2029 | Fixed | | | | | | | | | | | 905 | 907 | 905 | 907 | | USD | 1,250m | 2032 | N/A | Fixed | | | | | | | | | | | 1,880 | 1,817 | 1,880 | 1,817 | | EUR | 1,000m | 2033 | 2028 | Fixed | | | | | | | | | | | 1,807 | 1,642 | 1,807 | 1,642 | | AUD | 1,000m | 2038 | 2033 | Fixed | | | | | | | | | | | 1,005 | 1,007 | 1,005 | 1,007 | | AUD | 275m | 2033 | 2028 | Fixed | | | | | | | | | | | 275 | 275 | 275 | 275 | | AUD | 875m | 2033 | 2028 | Floating | | | | | | | | | | | 875 | 867 | 875 | 867 | | AUD | 1,435m | 2034 | 2029 | Floating | | | | | | | | | | | 1,435 | 1,415 | 1,435 | 1,415 | | AUD | 850m | 2034 | 2029 | Fixed | | | | | | | | | | | 813 | 850 | 813 | 850 | | USD | 1,000m | 2034 | 2029 | Fixed | | | | | | | | | | | 1,538 | 1,478 | 1,538 | 1,478 | | AUD | 1,900m | 2039 | 2034 | Fixed | | | | | | | | | | | 1,936 | 1,947 | 1,936 | 1,947 | | USD | 1,250m | 2035 | 2034 | Fixed | | | | | | | | | | | 1,843 | 1,790 | 1,843 | 1,790 | | SGD | 600m | 2034 | 2029 | Fixed | | | | | | | | | | | 736 | - | 736 | - | | AUD | 500m | 2035 | 2030 | Fixed | | | | | | | | | | | 508 | - | 508 | - | | AUD | 1,250m | 2035 | 2030 | Floating | | | | | | | | | | | 1,246 | - | 1,246 | - | | EUR | 1,000m | 2035 | 2030 | Fixed | | | | | | | | | | | 1,779 | - | 1,779 | - | | USD | 1,250m | 2036 | 2035 | Fixed | | | | | | | | | | | 1,937 | - | 1,937 | - | | AUD | 750m | 2040 | 2035 | Fixed | | | | | | | | | | | 752 | - | 752 | - | | AUD | 750m | 2045 | N/A | Fixed | | | | | | | | | | | 742 | - | 742 | - | | Total ANZBGL Tier 2 capital | | | | | | | | | | 1,2 | | | | | | | | | | | | | | | 33,811 | 28,584 | 33,811 | 28,584 | 1. Carrying values are net of issuance costs, and, where applicable, include fair value hedge accounting adjustments. 2. This forms part of ANZBGL’s qualifying Tier 2 capital. Refer to Note 23 Capital management for further details. 131 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 131 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 16. Debt issuances (continued) Other subordinated debt securities The term subordinated notes issued by ANZ Bank New Zealand constitute tier 2 capital under RBNZ requirements. However, they do not (among other things) contain a Non-Viability Trigger Event and therefore do not meet APRA’s requirements for Tier 2 capital instruments in order to qualify as regulatory capital for the Group. ANZ Holdings (New Zealand) Limited externally issued $800 million perpetual subordinated notes in 2024, however, they do not constitute tier 2 capital for either APRA’s or RBNZ’s capital adequacy purposes. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Consolidated | | The Company | | | | | | | Interest | | | | | | | | | | | 2025 | 2024 | 2025 | 2024 | | Currency | Face value | Maturity | Next optional call date | | | | | | | 1 | | | | | | | | | | | | | | rate | $m | $m | $m | $m | | Perpetual subordinated notes issued by ANZ Holdings (New Zealand) Limited | | | | | | | | | | 2 | | | | | | | | | | | | | | | | | | | | AUD | 800m | Perpetual | 2030 | Floating | 800 | 800 | - | - | | Term subordinated notes issued by ANZ Bank New Zealand Limited | | | | | | | | | | NZD | 600m | 2031 | 2026 | Fixed | 526 | 549 | - | - | | USD | 500m | 2032 | 2027 | Fixed | | | | | | | | | | | 746 | 708 | - | - | | USD | 500m | 2034 | 2029 | Fixed | | | | | | | | | | | 776 | 747 | - | - | | Other subordinated debt | | | | | | | | | | 3 | | | | | | | | | | | | | | | | | | | | | | | | | 2,848 | 2,804 | - | - | 1. Subject to APRA’s or RBNZ’s prior approval (as applicable). 2. The perpetual subordinated notes were issued by ANZ Holdings (New Zealand) Limited on 18 September 2024 with the proceeds invested in perpetual preference shares issued internally by ANZ Bank New Zealand (which constitute additional tier 1 capital for ANZ Bank New Zealand for the purposes of RBNZ’s capital requirements but not for the purposes of APRA’s capital requirements). 3. ANZ Bank New Zealand externally issued NZD 550 million of perpetual preference shares on 18 July 2022 and NZD 275 million of perpetual preference shares on 19 March 2024. These perpetual preference shares constitute AT1 capital for ANZ Bank New Zealand for the purposes of RBNZ’s capital requirements but not for the purposes of APRA’s capital requirements. These preference shares are included within non-controlling interests in Note 22 Shareholders’ equity. #### Recognition and measurement Debt issuances are initially recognised at fair value and are subsequently measured at amortised cost, except where designated at FVTPL. Interest expense on debt issuances is recognised using the effective interest rate method. Where the Group enters into a fair value hedge accounting relationship, the fair value attributable to the hedged risk is reflected in adjustments to the carrying value of the debt. Subordinated debt with capital-based conversion features (i.e. Common Equity Capital Trigger Events or Non-Viability Trigger Events) are considered to contain embedded derivatives that we account for separately at FVTPL. The embedded derivatives arise because the number of shares issued on conversion following any of those trigger events is subject to the maximum conversion number, however they have no significant value as of the reporting date given the remote nature of those trigger events . 132 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 132 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 132 16. Debt issuances (continued) Other subordinated debt securities The term subordinated notes issued by ANZ Bank New Zealand constitute tier 2 capital under RBNZ requirements. However, they do not (among other things) contain a Non-Viability Trigger Event and therefore do not meet APRA’s requirements for Tier 2 capital instruments in order to qualify as regulatory capital for the Group. ANZ Holdings (New Zealand) Limited externally issued $800 million perpetual subordinated notes in 2024, however, they do not constitute tier 2 capital for either APRA’s or RBNZ’s capital adequacy purposes. Consolidated The Company Interest 2025 2024 2025 2024 Currency Face value Maturity Next optional call date 1 rate $m $m $m $m Perpetual subordinated notes issued by ANZ Holdings (New Zealand) Limited 2 AUD 800m Perpetual 2030 Floating 800 800 - - Term subordinated notes issued by ANZ Bank New Zealand Limited NZD 600m 2031 2026 Fixed 526 549 - - USD 500m 2032 2027 Fixed 746 708 - - USD 500m 2034 2029 Fixed 776 747 - - Other subordinated debt 3 2,848 2,804 - - 1. Subject to APRA’s or RBNZ’s prior approval (as applicable). 2. The perpetual subordinated notes were issued by ANZ Holdings (New Zealand) Limited on 18 September 2024 with the proceeds invested in perpetual preference shares issued internally by ANZ Bank New Zealand (which constitute additional tier 1 capital for ANZ Bank New Zealand for the purposes of RBNZ’s capital requirements but not for the purposes of APRA’s capital requirements). 3. ANZ Bank New Zealand externally issued NZD 550 million of perpetual preference shares on 18 July 2022 and NZD 275 million of perpetual preference shares on 19 March 2024. These perpetual preference shares constitute AT1 capital for ANZ Bank New Zealand for the purposes of RBNZ’s capital requirements but not for the purposes of APRA’s capital requirements. These preference shares are included within non-controlling interests in Note 22 Shareholders’ equity. Debt issuances are initially recognised at fair value and are subsequently measured at amortised cost, except where designated at FVTPL. Interest expense on debt issuances is recognised using the effective interest rate method. Where the Group enters into a fair value hedge accounting relationship, the fair value attributable to the hedged risk is reflected in adjustments to the carrying value of the debt. Subordinated debt with capital-based conversion features (i.e. Common Equity Capital Trigger Events or Non-Viability Trigger Events) are considered to contain embedded derivatives that we account for separately at FVTPL. The embedded derivatives arise because the number of shares issued on conversion following any of those trigger events is subject to the maximum conversion number, however they have no significant value as of the reporting date given the remote nature of those trigger events . #### Recognition and measurement 132 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management Risk management framework and model Introduction The use of financial instruments is fundamental to the Group’s businesses of providing banking and other financial services to our customers. The associated financial risks (primarily credit, market, and liquidity risks) are a significant portion of the Group’s key material risks. We disclose details of all key material risks impacting the Group, and further information on the Group’s risk management activities, in the Governance and Risk Management sections of this Annual Report. This note details the Group’s financial risk management policies, processes and quantitative disclosures in relation to the key financial risks. | | | | --- | --- | | Key material financial risks | Key sections applicable to this risk | | Credit risk | | | The risk of financial loss resulting from: | | | • | | | a counterparty failing to fulfil its obligations; or | | | • | | | a decrease in credit quality of a counterparty resulting in a financial | | | loss. | | | Credit risk incorporates the risks associated with us lending to | | | customers who could be impacted by climate change, changes to | | | laws, regulations, or other policies adopted by governments or | | | regulatory authorities. Climate change impacts include both physical | | | risks (climate- or weather-related events) and transition risks resulting | | | from the adjustment to a low-emissions economy. Transition risks | | | include resultant changes to laws, regulations and policies noted | | | above. | | | | • | | | Credit risk o | | | verview, management and control responsibilities | | | • | | | Maximum exposure to credit risk | | | • | | | Credit quality | | | • | | | Concentrations of credit risk | | | • | | | Collateral management | | Market risk | | | The risk to the Group’s earnings arising from: | | | • | | | changes in interest rates, foreign exchange rates, credit spreads, | | | volatility and correlations; or | | | • | | | fluctuations in bond, commodity or equity prices. | | | | • | | | Market risk overview, management and control responsibilities | | | • | | | Measurement of market risk | | | • | | | Traded and non-traded market risk | | | • | | | Equity securities designated at FVOCI | | | • | | | Foreign currency risk – structural exposure | | Liquidity and funding risk | | | The risk that the Group is unable to meet payment obligations as they | | | fall due, including: | | | • | | | repaying depositors or maturing wholesale debt; or | | | • | | | the Group having insufficient capacity to fund increases in assets. | | | | • | | | Liquidity risk overview, management and control responsibilities | | | • | | | Key areas of measurement for liquidity risk | | | • | | | Liquidity risk outcomes | | | • | | | Residual contractual maturity analysis of the Group’s liabilities | 133 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 133 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Overview An overview of our risk management framework This overview is provided to aid the users of the financial statements in understanding the context of the financial disclosures required under AASB 7 Financial Instruments: Disclosures. It should be read in conjunction with the Governance and Risk Management sections of this Annual Report. The Board is responsible for establishing and overseeing the Group’s Risk Management Framework (RMF). The Board has delegated authority to the Board Risk Committee (BRC) to develop and monitor compliance with the Group’s risk management policies. The BRC reports regularly to the Board on its activities. The Board approves the strategic objectives of the Group including: • the Risk Appetite Statement (RAS), which sets out the Board’s expectations regarding the degree of risk that the Group is prepared to accept in pursuit of its strategic objectives and business plan; and • the Risk Management Strategy (RMS), which describes the Group’s strategy for managing risks and the key elements of the RMF that give effect to this strategy. This includes a description of each material risk, and an overview of how the RMF addresses each risk, with reference to the relevant policies, standards and procedures. It also includes information on how the Group identifies, measures, evaluates, monitors, reports and controls or mitigates material risks. The Group, through its training and management standards and procedures, aims to maintain a disciplined and robust control environment in which all employees understand their roles and obligations. At ANZ, risk is everyone’s responsibility. The Group has an independent risk management function, headed by the Chief Risk Officer who: • is responsible for overseeing the risk profile and the risk management framework; • can effectively challenge activities and decisions that materially affect the Group’s risk profile; and • has an independent reporting line to the BRC to enable the appropriate escalation of issues of concern. The Internal Audit Function reports directly to the Board Audit Committee (BAC). Internal Audit provides: • an independent evaluation of the Group’s RMF annually that seeks to ensure compliance with, and the effectiveness of, the risk management framework; • facilitation of a comprehensive review every three years that seeks to ensure the appropriateness, effectiveness and adequacy of the risk management framework; and • recommendations to improve the framework and/or work practices to strengthen the effectiveness of day-to-day operations. 134 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 134 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 134 17. Financial risk management (continued) Overview An overview of our risk management framework This overview is provided to aid the users of the financial statements in understanding the context of the financial disclosures required under AASB 7 Financial Instruments: Disclosures. It should be read in conjunction with the Governance and Risk Management sections of this Annual Report. The Board is responsible for establishing and overseeing the Group’s Risk Management Framework (RMF). The Board has delegated authority to the Board Risk Committee (BRC) to develop and monitor compliance with the Group’s risk management policies. The BRC reports regularly to the Board on its activities. The Board approves the strategic objectives of the Group including: • the Risk Appetite Statement (RAS), which sets out the Board’s expectations regarding the degree of risk that the Group is prepared to accept in pursuit of its strategic objectives and business plan; and • the Risk Management Strategy (RMS), which describes the Group’s strategy for managing risks and the key elements of the RMF that give effect to this strategy. This includes a description of each material risk, and an overview of how the RMF addresses each risk, with reference to the relevant policies, standards and procedures. It also includes information on how the Group identifies, measures, evaluates, monitors, reports and controls or mitigates material risks. The Group, through its training and management standards and procedures, aims to maintain a disciplined and robust control environment in which all employees understand their roles and obligations. At ANZ, risk is everyone’s responsibility. The Group has an independent risk management function, headed by the Chief Risk Officer who: • is responsible for overseeing the risk profile and the risk management framework; • can effectively challenge activities and decisions that materially affect the Group’s risk profile; and • has an independent reporting line to the BRC to enable the appropriate escalation of issues of concern. The Internal Audit Function reports directly to the Board Audit Committee (BAC). Internal Audit provides: • an independent evaluation of the Group’s RMF annually that seeks to ensure compliance with, and the effectiveness of, the risk management framework; • facilitation of a comprehensive review every three years that seeks to ensure the appropriateness, effectiveness and adequacy of the risk management framework; and • recommendations to improve the framework and/or work practices to strengthen the effectiveness of day-to-day operations. 134 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Credit risk Credit risk overview, management and control responsibilities Granting credit facilities to customers is one of the Group’s major sources of income. As this activity is also a principal risk, the Group dedicates considerable resources to its management. The Group assumes credit risk in a wide range of lending and other activities in diverse markets and in many jurisdictions. Credit risks arise from traditional lending to customers as well as from interbank, treasury, trade finance and capital markets activities around the world. Our credit risk management framework ensures we apply a consistent approach across the Group when we measure, monitor and manage the credit risk appetite set by the Board. The Board is assisted and advised by the BRC in discharging its duty to oversee credit risk. The BRC: • assists the Board in setting the credit risk appetite and credit strategies; and • approves credit transactions beyond the discretion of executive management. We quantify credit risk through an internal credit rating system (masterscales) to ensure consistency across exposure types and to provide a consistent framework for reporting and analysis. The system uses models and other tools to measure the following for customer exposures: | | | | --- | --- | | Probability of Default (PD) | Expressed by a Customer Credit Rating (CCR), reflecting the Group’s assessment of a customer’s ability to | | | service and repay debt. | | Exposure at Default (EAD) | The expected balance sheet exposure at default taking into account repayments of principal and interest, | | | expected additional drawdowns and accrued interest at the time of default. | | Loss Given Default (LGD) | Expressed by a Security Indicator (SI) ranging from A to G. The SI is calculated by reference to the | | | percentage of loan covered by security which the Group can realise if a customer defaults. The A-G scale | | | is supplemented by a range of other SIs which cover factors such as cash cover and sovereign backing. | | | For retail and some small business lending, we group exposures into large homogenous pools – and the | | | LGD is assigned at the pool level. | Our specialist credit risk teams develop and validate the Group’s PD and LGD rating models. The outputs from these models drive our day-to-day credit risk management decisions including origination, pricing, approval levels, regulatory capital adequacy, economic capital allocation, and credit provisioning. All customers with whom the Group has a credit relationship are assigned a CCR at origination via either of the following assessment approaches: | | | | --- | --- | | Large and more complex lending | Retail and some small business lending | | Rating models provide a consistent and structured assessment, with | | | judgement required around the use of out-of-model factors. We | | | handle credit approval on a dual approval basis, jointly with the | | | business writer and an independent credit officer. | | | | Automated assessment of credit applications using a combination of | | | scoring (application and behavioural), policy rules and external credit | | | reporting information. If the application does not meet the automated | | | assessment criteria, then it is subject to manual assessment. | We use the Group’s internal CCRs to manage the credit quality of financial assets. To enable wider comparisons, the Group’s CCRs are mapped to external rating agency scales as follows: | | | | | | | --- | --- | --- | --- | --- | | Credit Quality | | | | | | Description | | | | | | | Internal CCR | ANZ Customer Requirements | | | | | | | Moody’s | | | | | | Ratings | | | | | | | S&P Global | | | | | | Ratings | | Strong | CCR 0+ to 4- | Demonstrated superior stability in their operating and financial | | | | | | performance over the long-term, and whose earnings capacity | | | | | | is not significantly vulnerable to foreseeable events. | | | | | | | Aaa - Baa3 | AAA - BBB- | | Satisfactory | CCR 5+ to 6- | Demonstrated sound operational and financial stability over the | | | | | | medium to long-term, even though some may be susceptible to | | | | | | cyclical trends or variability in earnings. | | | | | | | Ba1 - B1 | BB | | | | | | + | | | | | | - B+ | | Weak | CCR 7+ to 8= | Demonstrated some operational and financial instability, with | | | | | | variability and uncertainty in profitability and liquidity projected to | | | | | | continue over the short and possibly medium term. | | | | | | | B2 - Caa | B | | | | | | - CCC | | Defaulted | CCR 8- to 10 | When doubt arises as to the collectability of a credit facility, the | | | | | | financial instrument (or ‘the facility’) is classified as defaulted. | | | | | | | N/A | N/A | 135 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 135 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Credit risk (continued) Maximum exposure to credit risk For financial assets recognised on the Balance Sheet, the maximum exposure to credit risk is the carrying amount. In certain circumstances there may be differences between the carrying amounts reported on the Balance Sheet and the amounts reported in the tables below. Principally, these differences arise in respect of financial assets that are subject to risks other than credit risk, such as equity instruments which are primarily subject to market risk, or bank notes and coins. For undrawn facilities, this maximum exposure to credit risk is the full amount of the committed facilities. For contingent exposures, the maximum exposure to credit risk is the maximum amount the Group would have to pay if the instrument is called upon. The table below shows our maximum exposure to credit risk of on-balance sheet and off-balance sheet positions before taking account of any collateral held or other credit enhancements. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Reported | | Excluded | | | | | | | | 1 | | | | | | | | | | | | | | | | | | Maximum exposure | | | | | | | | to credit risk | | | | | | | | | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | Consolidated | | | | | | | | | $m | $m | $m | $m | $m | $m | | On-balance sheet positions | | | | | | | | Net loans and advances | 829,986 | 804,032 | | - | 829,986 | 804,032 | | | | | | | | | | Other financial assets: | | | | | | | | Cash and cash equivalents | 155,209 | 150,965 | 1,203 | 1,196 | 154,006 | 149,769 | | Settlement balances owed to ANZ | | | | | | | | | 23,394 | 5,484 | 23,394 | 5,484 | - | - | | Collateral paid | | | | | | | | | 9,831 | 10,090 | - | - | 9,831 | 10,090 | | Trading assets | | | | | | | | | 48,248 | 45,755 | 9,076 | 6,399 | 39,172 | 39,356 | | Derivative financial instruments | | | | | | | | | 47,480 | 54,370 | - | - | 47,480 | 54,370 | | Investment securities | | | | | | | | | | | | | | | | - debt securities at amortised cost | 7,520 | 7,091 | - | - | 7,520 | 7,091 | | - debt securities at FVOCI | | | | | | | | | 156,373 | 131,944 | - | - | 156,373 | 131,944 | | - equity securities at FVOCI | | | | | | | | | 955 | 1,065 | 955 | 1,065 | - | - | | - debt securities at FVTPL | | | | | | | | | 692 | 162 | - | - | 692 | 162 | | Regulatory deposits | | | | | | | | | 541 | 665 | - | - | 541 | 665 | | Other financial assets | | | | | | | | 2 | | | | | | | | | 4,042 | 4,547 | - | - | 4,042 | 4,547 | | Total other financial assets | | | | | | | | | 454,285 | 412,138 | 34,628 | 14,144 | 419,657 | 397,994 | | Subtotal | 1,284,271 | 1,216,170 | 34,628 | 14,144 | 1,249,643 | 1,202,026 | | Off-balance sheet positions | | | | | | | | Undrawn and contingent facilities | | | | | | | | 3,4 | | | | | | | | | 241,224 | 233,054 | - | - | 241,224 | 233,054 | | Total | | | | | | | | 1,525,495 | 1,449,224 | 34,628 | 14,1 | 44 | 1,490,867 | 1,435,080 | 1. Coins, notes and cash at bank within Cash and cash equivalents; trade dated assets within Settlement balances owed to ANZ; precious metal exposures and carbon credits within Trading assets; and equity securities within Investment securities were excluded as they do not have credit risk exposure. 2. Other financial assets mainly comprise accrued interest and acceptances. 3. Undrawn and contingent facilities include guarantees, letters of credit and performance-related contingencies, net of collectively assessed and individually assessed allowance for ECL. 4. 2024 was restated to exclude commitments that can be unconditionally cancelled at any time without notice as they are not subject to ECL. 136 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 136 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 136 17. Financial risk management (continued) Credit risk (continued) Maximum exposure to credit risk For financial assets recognised on the Balance Sheet, the maximum exposure to credit risk is the carrying amount. In certain circumstances there may be differences between the carrying amounts reported on the Balance Sheet and the amounts reported in the tables below. Principally, these differences arise in respect of financial assets that are subject to risks other than credit risk, such as equity instruments which are primarily subject to market risk, or bank notes and coins. For undrawn facilities, this maximum exposure to credit risk is the full amount of the committed facilities. For contingent exposures, the maximum exposure to credit risk is the maximum amount the Group would have to pay if the instrument is called upon. The table below shows our maximum exposure to credit risk of on-balance sheet and off-balance sheet positions before taking account of any collateral held or other credit enhancements. Reported Excluded 1 Maximum exposure to credit risk 2025 2024 2025 2024 2025 2024 Consolidated $m $m $m $m $m $m On-balance sheet positions Net loans and advances 829,986 804,032 - 829,986 804,032 Other financial assets: Cash and cash equivalents 155,209 150,965 1,203 1,196 154,006 149,769 Settlement balances owed to ANZ 23,394 5,484 23,394 5,484 - - Collateral paid 9,831 10,090 - - 9,831 10,090 Trading assets 48,248 45,755 9,076 6,399 39,172 39,356 Derivative financial instruments 47,480 54,370 - - 47,480 54,370 Investment securities - debt securities at amortised cost 7,520 7,091 - - 7,520 7,091 - debt securities at FVOCI 156,373 131,944 - - 156,373 131,944 - equity securities at FVOCI 955 1,065 955 1,065 - - - debt securities at FVTPL 692 162 - - 692 162 Regulatory deposits 541 665 - - 541 665 Other financial assets 2 4,042 4,547 - - 4,042 4,547 Total other financial assets 454,285 412,138 34,628 14,144 419,657 397,994 Subtotal 1,284,271 1,216,170 34,628 14,144 1,249,643 1,202,026 Off-balance sheet positions Undrawn and contingent facilities 3,4 241,224 233,054 - - 241,224 233,054 Total 1,525,495 1,449,224 34,628 14,144 1,490,867 1,435,080 1. Coins, notes and cash at bank within Cash and cash equivalents; trade dated assets within Settlement balances owed to ANZ; precious metal exposures and carbon credits within Trading assets; and equity securities within Investment securities were excluded as they do not have credit risk exposure. 2. Other financial assets mainly comprise accrued interest and acceptances. 3. Undrawn and contingent facilities include guarantees, letters of credit and performance-related contingencies, net of collectively assessed and individually assessed allowance for ECL. 4. 2024 was restated to exclude commitments that can be unconditionally cancelled at any time without notice as they are not subject to ECL. 136 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Credit risk (continued) | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Reported | | Excluded | | | | | | 1 | | | | | | | | | | | | | | | | | | | | Maximum exposure | | | | | | | | to credit risk | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | The Company | | | | | | | | | $m | $m | $m | $m | $m | $m | | On-balance sheet positions | | | | | | | | Net loans and advances | 612,855 | 588,998 | - | - | 612,855 | 588,998 | | Other financial assets: | | | | | | | | Cash and cash equivalents | 145,060 | 137,288 | 824 | 843 | 144,236 | 136,445 | | Settlement balances owed to ANZ | | | | | | | | | 22,030 | 5,019 | 22,030 | 5,019 | - | - | | Collateral paid | | | | | | | | | 8,552 | 8,797 | - | - | 8,552 | 8,797 | | Trading assets | | | | | | | | | 40,608 | 38,427 | 8,911 | 6,243 | 31,697 | 32,184 | | Derivative financial instruments | | | | | | | | | 50,531 | 57,627 | - | - | 50,531 | 57,627 | | Investment securities | | | | | | | | - debt securities at amortised cost | 5,971 | 5,356 | - | - | 5,971 | 5,356 | | - debt securities at FVOCI | | | | | | | | | 128,972 | 107,388 | - | - | 128,972 | 107,388 | | - equity securities at FVOCI | | | | | | | | | 950 | 1,060 | 950 | 1,060 | - | - | | - debt securities at FVTPL | | | | | | | | | 692 | 162 | - | - | 692 | 162 | | Regulatory deposits | | | | | | | | | 245 | 222 | - | - | 245 | 222 | | Due from controlled entities | | | | | | | | | 24,390 | 24,315 | - | - | 24,390 | 24,315 | | Other financial assets | | | | | | | | 2 | | | | | | | | | 2,895 | 3,090 | - | - | 2,895 | 3,090 | | Total other financial assets | | | | | | | | | 430,896 | 388,751 | 32,715 | 13,165 | 398,181 | 375,586 | | Subtotal | 1,043,751 | 977,749 | 32,715 | 13,165 | 1,011,036 | 964,584 | | Off-balance sheet positions | | | | | | | | Undrawn and contingent facilities | | | | | | | | 3 | | | | | | | | | 201,252 | 194,343 | - | - | 201,252 | 194,343 | | Total | | | | | | | | | 1,245,003 | 1,172,092 | 32,715 | 13,165 | 1,212,288 | 1,158,927 | 1. Coins, notes and cash at bank within Cash and cash equivalents; trade dated assets within Settlement balances owed to ANZ; precious metal exposures, and carbon credits within Trading assets; and equity securities within Investment securities were excluded as they do not have credit risk exposure. 2. Other financial assets mainly comprise accrued interest and acceptances. 3. Undrawn and contingent facilities include guarantees, letters of credit and performance-related contingencies, net of collectively assessed and individually assessed allowance for ECL. 4. 2024 was restated to exclude commitments that can be unconditionally cancelled at any time without notice as they are not subject to ECL. 137 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 137 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Credit risk (continued) Credit quality An analysis of the Group’s credit risk exposure is presented in the following tables based on the Group’s internal credit quality rating by stage without taking account of the effects of any collateral or other credit enhancements: Net loans and advances | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | | Stage 1 | Stage 2 | | | | | | | | Collectively | | | | | | | assessed | | | | | | | | Individually | | | | | | | assessed | Total | | Consolidated | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Strong | 515,360 | 12,698 | - | - | 528,058 | | Satisfactory | | | | | | | | 193,577 | 36,906 | - | - | 230,483 | | Weak | | | | | | | | 17,922 | 14,787 | - | - | 32,709 | | Defaulted | | | | | | | | - | - | 6,955 | 1,018 | 7,973 | | Gross loans and advances at amortised cost | | | | | | | | 726,859 | 64,391 | 6,955 | 1,018 | 799,223 | | Allowance for ECL | (1,333) | (1,558) | (621) | (362) | (3,874) | | Net loans and advances at amortised cost | | | | | | | | 725,526 | 62,833 | 6,334 | 656 | 795,349 | | Coverage ratio | 0.18% | 2.42% | 8.93% | 35.56% | 0.48% | | Loans and advances at FVTPL | | | | | 30,398 | | Loans and advances purchased credit impaired | | | | | | | 1 | | | | | | | | | | | | 380 | | Unearned income | | | | | | | | | | | | (641) | | Capitalised brokerage and other origination costs | | | | | | | | | | | | 4,500 | | Net carrying amount | | | | | | | | | | | | 829,986 | | | | | | | | | --- | --- | --- | --- | --- | --- | | As at 30 September 2024 | | | | | | | Strong | 485,243 | 17,072 | - | - | 502,315 | | Satisfactory | 188,825 | 46,940 | - | - | 235,765 | | Weak | 15,538 | | | | | | | | 18,222 | - | - | 33,760 | | Defaulted | - | - | 5,976 | 832 | 6,808 | | Gross loans and advances at amortised cost | 689,606 | | | | | | | | 82,234 | 5,976 | 832 | 778,648 | | Allowance for ECL | (1,276) | (1,653) | (443) | (303) | (3,675) | | Net loans and advances at amortised cost | 688,330 | 80,581 | 5,533 | 529 | 774,973 | | Coverage ratio | 0.19% | 2.01% | 7.41% | 36.42% | 0.47% | | Loans and advances at FVTPL | | | | | 24,786 | | Loans and advances purchased credit impaired | | | | | | | 1 | | | | | | | | | | | | 551 | | Unearned income | | | | | (515) | | Capitalised brokerage and other origination costs | | | | | 4,237 | | Net carrying amount | | | | | 804,032 | 1. Represents Stage 3 exposures from Suncorp Bank at the date of acquisition recognised net of allowance for ECL. 138 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 138 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 138 17. Financial risk management (continued) Credit risk (continued) Credit quality An analysis of the Group’s credit risk exposure is presented in the following tables based on the Group’s internal credit quality rating by stage without taking account of the effects of any collateral or other credit enhancements: Net loans and advances Stage 3 Stage 1 Stage 2 Collectively assessed Individually assessed Total Consolidated $m $m $m $m $m As at 30 September 2025 Strong 515,360 12,698 - - 528,058 Satisfactory 193,577 36,906 - - 230,483 Weak 17,922 14,787 - - 32,709 Defaulted - - 6,955 1,018 7,973 Gross loans and advances at amortised cost 726,859 64,391 6,955 1,018 799,223 Allowance for ECL (1,333) (1,558) (621) (362) (3,874) Net loans and advances at amortised cost 725,526 62,833 6,334 656 795,349 Coverage ratio 0.18% 2.42% 8.93% 35.56% 0.48% Loans and advances at FVTPL 30,398 Loans and advances purchased credit impaired 1 380 Unearned income (641) Capitalised brokerage and other origination costs 4,500 Net carrying amount 829,986 As at 30 September 2024 Strong 485,243 17,072 - - 502,315 Satisfactory 188,825 46,940 - - 235,765 Weak 15,538 18,222 - - 33,760 Defaulted - - 5,976 832 6,808 Gross loans and advances at amortised cost 689,606 82,234 5,976 832 778,648 Allowance for ECL (1,276) (1,653) (443) (303) (3,675) Net loans and advances at amortised cost 688,330 80,581 5,533 529 774,973 Coverage ratio 0.19% 2.01% 7.41% 36.42% 0.47% Loans and advances at FVTPL 24,786 Loans and advances purchased credit impaired 1 551 Unearned income (515) Capitalised brokerage and other origination costs 4,237 Net carrying amount 804,032 1. Represents Stage 3 exposures from Suncorp Bank at the date of acquisition recognised net of allowance for ECL. 138 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Credit risk (continued) Net loans and advances | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | | Stage 1 | Stage 2 | | | | | | | | Collectively | | | | | | | assessed | | | | | | | | Individually | | | | | | | assessed | Total | | The Company | | | | | | | | $m | $m | $m | $m | $m | | As at 30 Sept | | | | | | | ember 2025 | | | | | | | Strong | 389,749 | 10,607 | - | - | 400,356 | | Satisfactory | | | | | | | | 127,996 | 26,591 | - | - | 154,587 | | Weak | | | | | | | | 13,035 | 9,972 | - | - | 23,007 | | Defaulted | | | | | | | | - | - | 5,219 | 595 | 5,814 | | Gross loans and advances at amortised cost | | | | | | | | 530,780 | 47,170 | 5,219 | 595 | 583,764 | | Allowance for ECL | (1,069) | (1,130) | (488) | (265) | (2,952) | | Net loans and advances at amortised cost | | | | | | | | 529,711 | 46,040 | 4,731 | 330 | 580,812 | | Coverage ratio | 0.20% | 2.40% | 9.35% | 44.54% | 0.51% | | Loans and advances at FVTPL | | | | | 29,216 | | Unearned income | | | | | (599) | | Capitalised brokerage and other origination costs | | | | | | | | | | | | 3,426 | | Net carrying amount | | | | | | | | | | | | 612,855 | | | | | | | | | --- | --- | --- | --- | --- | --- | | As at 30 September 2024 | | | | | | | Strong | 366,329 | 14,061 | - | - | 380,390 | | Satisfactory | | | | | | | | 121, | | | | | | | 820 | 33,813 | - | - | 155,633 | | Weak | 11,433 | | | | | | | | 11,9 | | | | | | | 45 | | | | | | | | - | | | | | | | | - | 23,378 | | Defaulted | - | - | 4,574 | 485 | 5,059 | | Gross loans and advances at amortised cost | 499,582 | 59,819 | 4,574 | 485 | 564,460 | | Allowance for ECL | (1,006) | (1,150) | (339) | (220) | (2,715) | | Net loans and advances at amortised cost | 498,576 | 58,669 | 4,235 | 265 | 561,745 | | Coverage ratio | 0.20% | 1.92% | 7.41% | 45.36% | 0.48% | | Loans and advances at FVTPL | | | | | 24,439 | | Unearned income | | | | | (489) | | Capitalised brokerage and other origination costs | | | | | 3,303 | | Net carrying amount | | | | | 588,998 | 139 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 139 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Credit risk (continued) Off-balance sheet commitments - undrawn and contingent facilities | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | | Stage 1 | Stage 2 | | | | | | | | Collectively | | | | | | | assessed | | | | | | | | Individually | | | | | | | assessed | Total | | | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Strong | 208,112 | 1,422 | - | - | 209,534 | | Satisfactory | | | | | | | | 27,128 | 3,287 | - | - | 30,415 | | Weak | | | | | | | | 691 | 1,225 | - | - | 1,916 | | Defaulted | | | | | | | | - | - | 142 | 87 | 229 | | Gross undrawn and contingent facilities subject to ECL | | | | | | | | 235,931 | 5,934 | 142 | 87 | 242,094 | | Allowance for ECL included in Other provisions (refer to Note 21) | (643) | (160) | (30) | (37) | (870) | | Net undrawn and contingent facilities subject to ECL | | | | | | | | 235,288 | 5,774 | 112 | 50 | 241,224 | | Coverage ratio | 0.27% | 2.70% | 21.13% | 42.53% | 0.36% | | | | | | | | | --- | --- | --- | --- | --- | --- | | As at 30 September 2024 | | | | | | | Strong | 200,720 | 1,497 | - | - | 202,217 | | Satisfactory | | | | | | | | 26,4 | | | | | | | 96 | 3,249 | - | - | 29,745 | | Weak | 880 | | | | | | | | 931 | - | | | | | | | | - | 1,811 | | Defaulted | - | - | 101 | 26 | 127 | | Gross undrawn and contingent facilities subject to ECL | 228,096 | 5,677 | 101 | 26 | 233,900 | | Allowance for ECL included in Other provisions (refer to Note 21) | (658) | (156) | (27) | (5) | (846) | | Net undrawn and contingent facilities subject to ECL | 227,438 | 5,521 | 74 | 21 | 233,054 | | Coverage ratio | 0.29% | 2.75% | 26.73% | 19.23% | 0.36% | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | | Stage 1 | Stage 2 | | | | | | | | Collectively | | | | | | | assessed | | | | | | | | Individually | | | | | | | assessed | Total | | The Company | | | | | | | | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Strong | 175,480 | 1,212 | - | - | 176,692 | | Satisfactory | | | | | | | | 21,768 | 2,169 | - | - | 23,937 | | Weak | | | | | | | | 543 | 619 | - | - | 1,162 | | Defaulted | | | | | | | | - | - | 110 | 66 | 176 | | Gross undrawn and contingent facilities subject to ECL | | | | | | | | 197,791 | 4,000 | 110 | 66 | 201,967 | | Allowance for ECL included in Other provisions (refer to Note 21) | (563) | (95) | (24) | (33) | (715) | | Net undrawn and contingent facilities subject to ECL | | | | | | | | 197,228 | 3,905 | 86 | 33 | 201,252 | | Coverage ratio | 0.28% | 2.38% | 21.82% | 50.00% | 0.35% | | | | | | | | | --- | --- | --- | --- | --- | --- | | As at 30 September 2024 | | | | | | | Strong | | | | | | | | 169,168 | | | | | | | | 1,317 | | | | | | | | - | | | | | | | | - | 170,485 | | Satisfactory | | | | | | | | 21,053 | | | | | | | | 2,225 | - | - | 23,278 | | Weak | 668 | 522 | - | - | 1,190 | | Defaulted | - | - | 66 | 17 | 83 | | Gross undrawn and contingent facilities subject to ECL | 190,889 | 4,064 | 66 | 17 | 195,036 | | Allowance for ECL included in Other provisions (refer to Note 21) | (573) | (96) | (22) | (2) | (693) | | Net undrawn and contingent facilities subject to ECL | 190,316 | 3,968 | 44 | 15 | 194,343 | | Coverage ratio | 0.30% | 2.36% | 33.33% | 11.76% | 0.36% | Consolidated 140 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 140 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 140 17. Financial risk management (continued) Credit risk (continued) Off-balance sheet commitments - undrawn and contingent facilities Stage 3 Stage 1 Stage 2 Collectively assessed Individually assessed Total $m $m $m $m $m As at 30 September 2025 Strong 208,112 1,422 - - 209,534 Satisfactory 27,128 3,287 - - 30,415 Weak 691 1,225 - - 1,916 Defaulted - - 142 87 229 Gross undrawn and contingent facilities subject to ECL 235,931 5,934 142 87 242,094 Allowance for ECL included in Other provisions (refer to Note 21) (643) (160) (30) (37) (870) Net undrawn and contingent facilities subject to ECL 235,288 5,774 112 50 241,224 Coverage ratio 0.27% 2.70% 21.13% 42.53% 0.36% As at 30 September 2024 Strong 200,720 1,497 - - 202,217 Satisfactory 26,4 96 3,249 - - 29,745 Weak 880 931 - - 1,811 Defaulted - - 101 26 127 Gross undrawn and contingent facilities subject to ECL 228,096 5,677 101 26 233,900 Allowance for ECL included in Other provisions (refer to Note 21) (658) (156) (27) (5) (846) Net undrawn and contingent facilities subject to ECL 227,438 5,521 74 21 233,054 Coverage ratio 0.29% 2.75% 26.73% 19.23% 0.36% Stage 3 Stage 1 Stage 2 Collectively assessed Individually assessed Total The Company $m $m $m $m $m As at 30 September 2025 Strong 175,480 1,212 - - 176,692 Satisfactory 21,768 2,169 - - 23,937 Weak 543 619 - - 1,162 Defaulted - - 110 66 176 Gross undrawn and contingent facilities subject to ECL 197,791 4,000 110 66 201,967 Allowance for ECL included in Other provisions (refer to Note 21) (563) (95) (24) (33) (715) Net undrawn and contingent facilities subject to ECL 197,228 3,905 86 33 201,252 Coverage ratio 0.28% 2.38% 21.82% 50.00% 0.35% As at 30 September 2024 Strong 169, 168 1,317 - - 170,485 Satisfactory 21,0 53 2,225 - - 23,278 Weak 668 522 - - 1,190 Defaulted - - 66 17 83 Gross undrawn and contingent facilities subject to ECL 190,889 4,064 66 17 195,036 Allowance for ECL included in Other provisions (refer to Note 21) (573) (96) (22) (2) (693) Net undrawn and contingent facilities subject to ECL 190,316 3,968 44 15 194,343 Coverage ratio 0.30% 2.36% 33.33% 11.76% 0.36% Consolidated 140 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Credit risk (continued) Investment securities - debt securities at amortised cost | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | | Stage 1 | Stage 2 | | | | | | | | Collectively | | | | | | | assessed | | | | | | | | Individually | | | | | | | assessed | Total | | Consolidated | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Strong | 5,937 | - | - | - | 5,937 | | Satisfactory | | | | | | | | 193 | - | - | - | 193 | | Weak | | | | | | | | 1,424 | - | - | - | 1,424 | | Gross investment securities - debt securities at amortised cost | | | | | | | | 7,554 | - | - | - | 7,554 | | Allowance for ECL | (34) | - | - | - | (34) | | Net investment securities - debt securities at amortised cost | | | | | | | | 7,520 | - | - | - | 7,520 | | Coverage ratio | 0.45% | - | - | - | 0.45% | | | | | | | | | | | | | | | | As at 30 September 2024 | | | | | | | Strong | 5,535 | - | - | - | 5,535 | | Satisfactory | 72 | - | - | - | 72 | | Weak | 1,518 | - | - | - | 1,518 | | Gross investment securities - debt securities at amortised cost | 7,125 | - | - | - | 7,125 | | Allowance for ECL | (34) | - | - | - | (34) | | Net investment securities - debt securities at amortised cost | 7,091 | - | - | - | 7,091 | | Coverage ratio | 0.48% | - | - | - | 0.48% | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | | | | | | | | | Stage 1 | Stage 2 | | | | | | | | Collectively | | | | | | | assessed | | | | | | | | Individually | | | | | | | assessed | Total | | The Company | | | | | | | | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Strong | 5,776 | - | - | - | 5,776 | | Satisfactory | | | | | | | | 153 | - | - | - | 153 | | Weak | | | | | | | | 45 | - | - | - | 45 | | Gross investment securities - debt securities at amortised cost | | | | | | | | 5,974 | - | - | - | 5,974 | | Allowance for ECL | (3) | - | - | - | (3) | | Net investment securities - debt securities at amortised cost | | | | | | | 5,971 | - | - | - | 5,971 | | | Coverage ratio | 0.05% | - | - | - | 0.05% | | | | | | | | | | | | | | | | As at 30 September 2024 | | | | | | | Strong | 5,273 | - | - | - | 5,273 | | Satisfactory | 41 | - | - | - | 41 | | Weak | 43 | - | - | - | 43 | | Gross investment securities - debt securities at amortised cost | 5,357 | - | - | - | 5,357 | | Allowance for ECL | (1) | - | - | - | (1) | | Net investment securities - debt securities at amortised cost | 5,356 | - | - | - | 5,356 | | Coverage ratio | 0.02% | - | - | - | 0.02% | 141 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 141 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Credit risk (continued) Investment securities - debt securities at FVOCI | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | | Stage 1 | Stage 2 | | | | | | | | Collectively | | | | | | | assessed | | | | | | | | Individually | | | | | | | assessed | Total | | Consolidated | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Strong | 156,373 | - | - | - | 156,373 | | Investment securities - debt securities at FVOCI | | | | | | | | 156,373 | - | - | - | 156,373 | | Allowance for ECL recognised in Other comprehensive income | (13) | - | - | - | (13) | | Coverage ratio | | | | | | | | 0.01% | - | - | - | 0.01% | | As at 30 September 2024 | | | | | | | Strong | 131,944 | - | - | - | 131,944 | | Investment securities - debt securities at FVOCI | 131,944 | - | - | - | 131,944 | | Allowance for ECL recognised in Other comprehensive income | (20) | - | - | - | (20) | | Coverage ratio | 0.02% | - | - | - | 0.02% | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Stage 3 | | | | | Stage 1 | Stage 2 | | | | | | | | Collectively | | | | | | | assessed | | | | | | | | Individually | | | | | | | assessed | Total | | The Company | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Strong | 128,972 | - | - | - | 128,972 | | Satisfactory | | | | | | | | - | - | - | - | - | | Investment securities - debt securities at FVOCI | | | | | | | | 128,972 | - | - | - | 128,972 | | Allowance for ECL recognised in Other comprehensive income | (9) | - | - | - | (9) | | Coverage ratio | | | | | | | | 0.01% | - | - | - | 0.01% | | As at 30 September 2024 | | | | | | | Strong | 107,388 | - | - | - | 107,388 | | Satisfactory | - | - | - | - | - | | Investment securities - debt securities at FVOCI | 107,388 | - | - | - | 107,388 | | Allowance for ECL recognised in Other comprehensive income | (14) | - | - | - | (14) | | Coverage ratio | 0.01% | - | - | - | 0.01% | 142 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 142 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 142 17. Financial risk management (continued) Credit risk (continued) Investment securities - debt securities at FVOCI Stage 3 Stage 1 Stage 2 Collectively assessed Individually assessed Total Consolidated $m $m $m $m $m As at 30 September 2025 Strong 156,373 - - - 156,373 Investment securities - debt securities at FVOCI 156,373 - - - 156,373 Allowance for ECL recognised in Other comprehensive income (13) - - - (13) Coverage ratio 0.01% - - - 0.01% As at 30 September 2024 Strong 131,944 - - - 131,944 Investment securities - debt securities at FVOCI 131,944 - - - 131,944 Allowance for ECL recognised in Other comprehensive income (20) - - - (20) Coverage ratio 0.02% - - - 0.02% Stage 3 Stage 1 Stage 2 Collectively assessed Individually assessed Total The Company $m $m $m $m $m As at 30 September 2025 Strong 128,972 - - - 128,972 Satisfactory - - - - - Investment securities - debt securities at FVOCI 128,972 - - - 128,972 Allowance for ECL recognised in Other comprehensive income (9) - - - (9) Coverage ratio 0.01% - - - 0.01% As at 30 September 2024 Strong 107,388 - - - 107, 388 Satisfactory - - - - - Investment securities - debt securities at FVOCI 107,388 - - - 107,388 Allowance for ECL recognised in Other comprehensive income (14) - - - (14) Coverage ratio 0.01% - - - 0.01% 142 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Credit risk (continued) Other financial assets | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Strong | | | | | | | 234,025 | 250,471 | 242,327 | 255,180 | | Satisfactory | | | | | | 1 | | | | | | | 21,170 | 7,954 | 20,673 | 7,474 | | Weak | | | | | | | 569 | 534 | 238 | 188 | | Total carrying amount | | | | | | | 255,764 | 258,959 | 263,238 | 262,842 | 1. Includes Investment Securities - debt securities at FVTPL of $692 million (2024: $162 million) for the Group and $692 million (2024: $162 million) for the Company. Concentrations of credit risk Credit risk becomes concentrated when a number of customers are engaged in similar activities, have similar economic characteristics, or have similar activities within the same geographic region – therefore, they may be similarly affected by changes in economic or other conditions. The Group monitors its credit portfolio to manage risk concentration and rebalance the portfolio. The Group also applies single customer counterparty limits to protect against unacceptably large exposures to one single customer. Composition of financial instruments that give rise to credit risk by industry group are presented below : | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Loans | | Other financial | | | | | | | | | | | | Off-balance sheet | | | | | | | | | | credit related | | | | | | and advances | | assets | | commitments | | Total | | | Consolidated | | | | | | | | | | | 2025 | 2024 | | | | | | | | | | 1 | | | | | | | | | | | 2025 | 2024 | | | | | | | | | | 1 | | | | | | | | | | | 2025 | 2024 | | | | | | | | | | 2 | | | | | | | | | | | 2025 | 2024 | | | $m | $m | $m | $m | $m | $m | $m | $m | | Agriculture, forestry, fishing and mining | | | | | | | | | | | 41,326 | 41,510 | 785 | 827 | 13,517 | 13,442 | 55,628 | 55,779 | | Business services | 7,845 | 7,992 | 227 | 210 | 5,968 | 5,326 | 14,040 | 13,528 | | Construction | | | | | | | | | | | 6,508 | 6,248 | 46 | 47 | 6,657 | 7,449 | 13,211 | 13,744 | | Electricity, gas and water supply | | | | | | | | | | | 11,590 | 8,370 | 876 | 853 | 11,192 | 9,959 | 23,658 | 19,182 | | Entertainment, leisure and tourism | | | | | | | | | | | 13,750 | 14,142 | 91 | 134 | 3,829 | 3,401 | 17,670 | 17,677 | | Financial, investment and insurance | | | | | | | | | | | 86,293 | 82,561 | 265,023 | 261,692 | 51,424 | 50,236 | 402,740 | 394,489 | | Government and official institutions | | | | | | | | | | | 2,436 | 4,303 | 143,039 | 125,591 | 1,173 | 1,152 | 146,648 | 131,046 | | Manufacturing | | | | | | | | | | | 26,053 | 29,067 | 1,573 | 995 | 23,205 | 24,172 | 50,831 | 54,234 | | Personal lending | | | | | | | | | | | 510,894 | 492,042 | 1,449 | 1,649 | 67,96 | 1 62,513 | 580,304 | 556,204 | | Property services | | | | | | | | | | | 69,285 | 63,667 | 1,452 | 960 | 19,513 | 19,429 | 90,250 | 84,056 | | Retail trade | | | | | | | | | | | 11,480 | 11,164 | 71 | 129 | 6,418 | 6,698 | 17,969 | 17,991 | | Transport and storage | | | | | | | | | | | 11,644 | 10,998 | 790 | 728 | 8,736 | 7,841 | 21,170 | 19,567 | | Wholesale trade | | | | | | | | | | | 12,706 | 13,736 | 1,107 | 903 | 11,439 | 10,795 | 25,252 | 25,434 | | Other | | | | | | | | | | | 18,191 | 18,185 | 3,162 | 3,310 | 11,062 | 11,487 | 32,415 | 32,982 | | Gross total | | | | | | | | | | | 830,001 | 803,985 | 419,691 | 398,028 | 242,094 | 233,900 | 1,491,786 | 1,435,913 | | Allowance for ECL | (3,874) | (3,675) | (34) | (34) | (870) | (846) | (4,778) | (4,555) | | Subtotal | | | | | | | | | | | 826,127 | 800,310 | 419,657 | 397,994 | 241,224 | 233,054 | 1,487,008 | 1,431,358 | | Unearned income | (641) | (515) | - | - | - | - | (641) | (515) | | Capitalised brokerage and other origination costs | 4,500 | 4,237 | - | - | - | - | 4,500 | 4,237 | | Maximum exposure to credit risk | | | | | | | | | | | 829,986 | 804,032 | 419,657 | 397,994 | 241,224 | 233,054 | 1,490,867 | 1,435,080 | 1. Comparative information have been restated to conform with the basis of preparation in the current year to better reflect the nature of the underlying balances. 2. 2024 was restated to exclude commitments that can be unconditionally cancelled at any time without notice as they are not subject to ECL. 143 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 143 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Credit risk (continued) Composition of financial instruments that give rise to credit risk by industry group are presented below: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Loans | | Other financial | | | | | | | | | | | | Off-balance sheet | | | | | | | | | | credit related | | | | | | | | | | | | | | | | and advances | | assets | | commitments | | Total | | | The Company | | | | | | | | | | | 2025 | 2024 | | | | | | | | | | 1 | | | | | | | | | | | 2025 | 2024 | | | | | | | | | | 1 | | | | | | | | | | | 2025 | 2024 | | | | | | | | | | 2 | | | | | | | | | | | 2025 | 2024 | | | $m | $m | $m | $m | $m | $m | $m | $m | | Agriculture, forestry, fishing and mining | | | | | | | | | | | 23,024 | 22,415 | 734 | 764 | 11,579 | 11,632 | 35,337 | 34,811 | | Business services | 6,958 | 7,093 | 208 | 201 | 5,334 | 4,810 | 12,500 | 12,104 | | Construction | | | | | | | | | | | 5,100 | 4,678 | 39 | 39 | 5,636 | 6,115 | 10,775 | 10,832 | | Electricity, gas and water supply | | | | | | | | | | | 10,452 | 7,780 | 563 | 639 | 9,551 | 8,818 | 20,566 | 17,237 | | Entertainment, leisure and tourism | | | | | | | | | | | 11,876 | 11,813 | 77 | 106 | 3,367 | 3,050 | 15,320 | 14,969 | | Financial, investment and insurance | | | | | | | | | | | 82,798 | 79,505 | 274,403 | 266,738 | 49,879 | 48,679 | 407,080 | 394,922 | | Government and official institutions | | | | | | | | | | | 2,430 | 4,274 | 113,973 | 100,134 | 565 | 394 | 116,968 | 104,802 | | Manufacturing | | | | | | | | | | | 22,709 | 25,274 | 1,486 | 922 | 20,599 | 22,000 | 44,794 | 48,196 | | Personal lending | | | | | | | | | | | 347,395 | 330,984 | 813 | 901 | 45,321 | 41,208 | 393,529 | 373,093 | | Property services | | | | | | | | | | | 53,790 | 48,737 | 1,286 | 799 | 17,568 | 17,236 | 72,644 | 66,772 | | Retail trade | | | | | | | | | | | 9,713 | 9,262 | 63 | 106 | 5,546 | 5,956 | 15,322 | 15,324 | | Transport and storage | | | | | | | | | | | 10,525 | 9,930 | 765 | 661 | 7,781 | 7,071 | 19,071 | 17,662 | | Wholesale trade | | | | | | | | | | | 10,850 | 11,676 | 1,054 | 866 | 9,836 | 9,358 | 21,740 | 21,900 | | Other | | | | | | | | | | | 15,360 | 15,478 | 2,721 | 2,711 | 9,405 | 8,709 | 27,486 | 26,898 | | Gross total | | | | | | | | | | | 612,980 | 588,899 | 398,185 | 375,587 | 201,967 | 195,036 | 1,213,132 | 1,159,522 | | Allowance for ECL | (2,952) | (2,715) | (3) | (1) | (715) | (693) | (3,670) | (3,409) | | Subtotal | | | | | | | | | | | 610,028 | 586,184 | 398,182 | 375,586 | 201,252 | 194,343 | 1,209,462 | 1,156,113 | | Unearned income | (599) | (489) | - | - | - | - | (599) | (489) | | Capitalised brokerage and other origination costs | 3,426 | 3,303 | - | - | - | - | 3,426 | 3,303 | | Maximum exposure to credit risk | | | | | | | | | | | 612,855 | 588,998 | 398,182 | 375,586 | 201,252 | 194,343 | 1,212,289 | 1,158,927 | 1. Comparative information have been restated to conform with the basis of preparation in the current year to better reflect the nature of the underlying balances. 2. 2024 was restated to exclude commitments that can be unconditionally cancelled at any time without notice as they are not subject to ECL. 144 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 144 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 144 17. Financial risk management (continued) Credit risk (continued) Composition of financial instruments that give rise to credit risk by industry group are presented below: Loans Other financial Off-balance sheet credit related and advances assets co mmitments Total The Company 2025 2024 1 2025 2024 1 2025 2024 2 2025 2024 $m $m $m $m $m $m $m $m Agriculture, forestry, fishing and mining 23,024 22,415 734 764 11,579 11,632 35,337 34,811 Business services 6,958 7,093 208 201 5,334 4,810 12,500 12,104 Construction 5,100 4,678 39 39 5,636 6,115 10,775 10,832 Electricity, gas and water supply 10,452 7,780 563 639 9,551 8,818 20,566 17,237 Entertainment, leisure and tourism 11,876 11,813 77 106 3,367 3,050 15,320 14,969 Financial, investment and insurance 82,798 79,505 274,403 266,738 49,879 48,679 407,080 394,922 Government and official institutions 2,430 4,274 113,973 100,134 565 394 116,968 104,802 Manufacturing 22,709 25,274 1,486 922 20,599 22,000 44,794 48,196 Personal lending 347,395 330,984 813 901 45,321 41,208 393,529 373,093 Property services 53,790 48,737 1,286 799 17,568 17,236 72,644 66,772 Retail trade 9,713 9,262 63 106 5,546 5,956 15,322 15,324 Transport and storage 10,525 9,930 765 661 7,781 7,071 19,071 17,662 Wholesale trade 10,850 11,676 1,054 866 9,836 9,358 21,740 21,900 Other 15,360 15,478 2,721 2,711 9,405 8,709 27,486 26,898 Gross total 612,980 588,899 398,185 375,587 201,967 195,036 1,213,132 1,159,522 Allowance for ECL (2,952) (2,715) (3) (1) (715) (693) (3,670) (3,409) Subtotal 610,028 586,184 398,182 375,586 201,252 194,343 1,209,462 1,156,113 Unearned income (599) (489) - - - - (599) (489) Capitalised brokerage and other origination costs 3,426 3,303 - - - - 3,426 3,303 Maximum exposure to credit risk 612,855 588,998 398,182 375,586 201,252 194,343 1,212,289 1,158,927 1. Comparative information have been restated to conform with the basis of preparation in the current year to better reflect the nature of the underlying balances. 2. 2024 was restated to exclude commitments that can be unconditionally cancelled at any time without notice as they are not subject to ECL. 144 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Credit risk (continued) Collateral management We use collateral for on and off-balance sheet exposures to mitigate credit risk if a counterparty cannot meet its repayment obligations. Where there is sufficient collateral, an expected credit loss is not recognised. This is largely the case for certain lending products, such as margin loans and reverse repurchase agreements that are secured by the securities purchased using the lending. For some products, the collateral provided by customers is fundamental to the product’s structuring, so it is not strictly the secondary source of repayment - for example, lending secured by trade receivables is typically repaid by the collection of those receivables. During the period there was no change in our collateral policies. The nature of collateral or security held for the relevant classes of financial assets is as follows: | | | | --- | --- | | Net loans and advances | | | Loans - housing and | | | personal | | | | Housing loans are secured by mortgage(s) over property and additional security may take the form of | | | guarantees and deposits. | | | Personal lending (including credit cards and overdrafts) is predominantly unsecured. If we take security, then it | | | is restricted to eligible vehicles, motor homes and other assets. | | Loans - business | Business loans may be secured, partially secured or unsecured. Typically, we take security by way of a | | | mortgage over property and/or a charge over the business or other assets. | | | If appropriate, we may take other security to mitigate the credit risk, such as guarantees, standby letters of | | | credit or derivative protection. | | Other financial assets | | | Trading assets, Investment | | | securities, Derivatives and | | | Other financial assets | | | | For trading assets, we do not seek collateral directly from the issuer or counterparty. However, the collateral | | | may be implicit in the terms of the instrument (for example, with an asset-backed security). The terms of debt | | | securities may include collateralisation. | | | For derivatives we will have large individual exposures to single name counterparties such as central clearing | | | houses, financial institutions, and other institutional clients. Open derivative positions with these counterparties | | | are aggregated and cash collateral (or other forms of eligible collateral) is exchanged daily through the | | | respective Credit Support Annex agreements. The collateral is provided by the counterparty when their position | | | is out of the money (or provided to the counterparty by the Group when our position is out of the money). | | | Credit risk will remain where the full amount of the derivative exposure is not covered by any collateral. | | Off-balance sheet positions | | | Undrawn and contingent | | | facilities | | | | Collateral for off-balance sheet positions is mainly held against undrawn facilities, and they are typically | | | performance bonds or guarantees. Undrawn facilities that are secured include housing loans secured by | | | mortgages over residential property and business lending secured by commercial real estate and/or charges | | | over business assets. | The table below shows the estimated value of collateral we hold and the net unsecured portion of credit exposures: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Maximum exposure to credit risk | | Total value of collateral | | | | | | | | 1 | | | | | | | | | | | | | | | | | | Unsecured portion of | | | | | | | | credit exposure | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | Consolidated | | | | | | | | | $m | $m | $m | $m | $m | $m | | Net loans and advances | | | | | | | | | 829,986 | 804,032 | 698,418 | 667,130 | 131,568 | 136,902 | | Other financial assets | 419,657 | 397,994 | 67,960 | 51,732 | 351,697 | 346,262 | | Off-balance sheet positions | | | | | | | | | 241,224 | 233,054 | 87,629 | 80,258 | 153,595 | 152,796 | | Total | | | | | | | | | 1,490,867 | 1,435,080 | 854,007 | 799,120 | 636,860 | 635,960 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Maximum exposure to credit risk | | Total value of collateral | | | | | | | | 1 | | | | | | | | | | | | | | | | | | Unsecured portion of | | | | | | | | credit exposure | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | The Company | | | | | | | | | $m | $m | $m | $m | $m | $m | | Net loans and advances | | | | | | | | | 612,855 | 588,998 | 493,566 | 463,804 | 119,289 | 125,194 | | Other financial assets | 398,182 | 375,586 | 61,133 | 46,950 | 337,049 | 328,636 | | Off-balance sheet positions | | | | | | | | | 201,252 | 194,343 | 60,363 | 52,804 | 140,889 | 141,539 | | Total | | | | | | | | | 1,212,289 | 1,158,927 | 615,062 | 563,558 | 597,227 | 595,369 | 1. In estimating the value of collateral for housing loans, customers are assumed to be meeting their insurance obligations for the properties over which the mortgages are secured. 145 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 145 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Market risk Market risk overview, management and control responsibilities Market risk stems from the Group’s trading and balance sheet management activities and the impact of changes and correlations between interest rates, foreign exchange rates, credit spreads, commodities, equities and the volatility within these asset classes. Within overall strategies and policies established by the BRC, business units and risk management have joint responsibility for the control of market risk at the Group level. The Market Risk team (a specialist risk management unit independent of the business) allocates market risk limits at various levels and monitors and reports on them daily. This detailed framework allocates individual limits to manage and control exposures using risk factors and profit and loss limits. Management, measurement and reporting of market risk is undertaken in two broad categories : Traded Market Risk Non-Traded Market Risk Risk of loss from changes in the value of financial instruments due to movements in price factors for both physical and derivative trading positions. Principal risk categories monitored are: 1. Currency risk – potential loss arising from changes in foreign exchange rates or their implied volatilities. 2. Interest rate risk – potential loss from changes in market interest rates or their implied volatilities. 3. Credit spread risk – potential loss arising from a movement in margin or spread relative to a benchmark. 4. Commodity risk – potential loss arising from changes in commodity prices or their implied volatilities. 5. Equity risk – potential loss arising from changes in equity prices. Risk of loss associated with the management of non-traded interest rate risk, liquidity risk and foreign exchange exposures. This includes interest rate risk in the banking book. This risk of loss arises from adverse changes in the overall and relative level of interest rates for different tenors, differences in the actual versus expected net interest margin, and the potential valuation risk associated with embedded options in financial instruments and bank products. Measurement of market risk We primarily manage and control market risk using Value at Risk (VaR), sensitivity analysis and stress testing. VaR measures the Group’s possible daily loss based on historical market movements. The Group’s VaR approach for both traded and non-traded risk is historical simulation. We use historical changes in market rates, prices and volatilities over a 500 business day window using a one-day holding period. Back testing is used to ensure our VaR models remain accurate. The Group measures VaR at a 99% confidence interval which means there is a 99% chance that a loss will not exceed the VaR for the relevant holding period. 146 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 146 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 146 17. Financial risk management (continued) Market risk Market risk overview, management and control responsibilities Market risk stems from the Group’s trading and balance sheet management activities and the impact of changes and correlations between interest rates, foreign exchange rates, credit spreads, commodities, equities and the volatility within these asset classes. Within overall strategies and policies established by the BRC, business units and risk management have joint responsibility for the control of market risk at the Group level. The Market Risk team (a specialist risk management unit independent of the business) allocates market risk limits at various levels and monitors and reports on them daily. This detailed framework allocates individual limits to manage and control exposures using risk factors and profit and loss limits. Management, measurement and reporting of market risk is undertaken in two broad categories : Traded Market Risk Non-Traded Market Risk Risk of loss from changes in the value of financial instruments due to movements in price factors for both physical and derivative trading positions. Principal risk categories monitored are: 1. Currency risk – potential loss arising from changes in foreign exchange rates or their implied volatilities. 2. Interest rate risk – potential loss from changes in market interest rates or their implied volatilities. 3. Credit spread risk – potential loss arising from a movement in margin or spread relative to a benchmark. 4. Commodity risk – potential loss arising from changes in commodity prices or their implied volatilities. 5. Equity risk – potential loss arising from changes in equity prices. Risk of loss associated with the management of non-traded interest rate risk, liquidity risk and foreign exchange exposures. This includes interest rate risk in the banking book. This risk of loss arises from adverse changes in the overall and relative level of interest rates for different tenors, differences in the actual versus expected net interest margin, and the potential valuation risk associated with embedded options in financial instruments and bank products. Measurement of market risk We primarily manage and control market risk using Value at Risk (VaR), sensitivity analysis and stress testing. VaR measures the Group’s possible daily loss based on historical market movements. The Group’s VaR approach for both traded and non-traded risk is historical simulation. We use historical changes in market rates, prices and volatilities over a 500 business day window using a one-day holding period. Back testing is used to ensure our VaR models remain accurate. The Group measures VaR at a 99% confidence interval which means there is a 99% chance that a loss will not exceed the VaR for the relevant holding period. 146 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Market risk (continued) Traded and non-traded market risk Traded market risk The table below shows the traded market risk VaR on a diversified basis by risk categories : | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Total Grou | | | | | | | | | | | | p | | Total Group (excl. Suncorp Bank) | | | | | | | | | | 2025 | 2024 | 2025 | | | | 2024 | | | | | Consolidated | | | | | | | | | | | | | As at | As at | As at | | | | | | | | | | | | | High for | | | | | | | | | | | | year | | | | | | | | | | | | | Low for | | | | | | | | | | | | year | | | | | | | | | | | | | Average | | | | | | | | | | | | for year | As at | | | | | | | | | | | | | High for | | | | | | | | | | | | year | | | | | | | | | | | | | Low for | | | | | | | | | | | | year | | | | | | | | | | | | | Average | | | | | | | | | | | | for year | | | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | | Traded value at risk 99% confidence | | | | | | | | | | | | Foreign exchange | 1.7 | 3.2 | 1.9 | 8.9 | 1.7 | 3.4 | 3.2 | 11.5 | 2.2 | 5.0 | | Interest rate | | | | | | | | | | | | | 3.9 | 6.5 | 3.8 | 8.5 | 3.8 | 5.5 | 6.4 | 19.2 | 4.8 | 8.7 | | Credit | | | | | | | | | | | | | 2.9 | 5.7 | 2.9 | 8.2 | 1.8 | 4.1 | 5.7 | 8.1 | 4.2 | 6.7 | | Commodities | | | | | | | | | | | | | 8.9 | 3.3 | 8.9 | 11.3 | 2.3 | 6.3 | 3.3 | 5.0 | 1.8 | 2.9 | | Equity | | | | | | | | | | | | | - | - | - | - | - | - | - | - | - | - | | Diversification benefit | | | | | | | | | | | | 1 | | | | | | | | | | | | | (8.6) | (10.0) | (8.8) | n/a | n/a | (9.6) | (9.9) | n/a | n/a | (10.2) | | Total VaR | | | | | | | | | | | | | 8.8 | 8.7 | 8.7 | 13.5 | 6.8 | 9.7 | 8.7 | 22.5 | 8.0 | 13.1 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | | | 2024 | | | | | The Company | | | | | | | | | | | As at | | | | | | | | | | | High for | | | | | | | | | | year | | | | | | | | | | | Low for | | | | | | | | | | year | | | | | | | | | | | Average | | | | | | | | | | for year | As at | | | | | | | | | | | High for | | | | | | | | | | year | | | | | | | | | | | Low for | | | | | | | | | | year | | | | | | | | | | | Average | | | | | | | | | | for year | | | $m | $m | $m | $m | $m | $m | $m | $m | | Traded value at risk 99% confidence | | | | | | | | | | Foreign exchange | 1.8 | 9.1 | 1.8 | 3.1 | 3.4 | 7.7 | 1.9 | 4.4 | | Interest rate | | | | | | | | | | | 4.0 | 7.4 | 3.8 | 5.3 | 5.6 | 18.4 | 4.7 | 8.5 | | Credit | | | | | | | | | | | 3.0 | 8.1 | 1.6 | 3.9 | 5.5 | 7.9 | 4.2 | 6.4 | | Commodity | | | | | | | | | | | 9.2 | 11.5 | 2.1 | 6.0 | 2.6 | 5.0 | 1.6 | 2.5 | | Equity | | | | | | | | | | | - | - | - | - | - | - | - | - | | Diversification benefit | | | | | | | | | | 1 | | | | | | | | | | | (9.6) | n/a | n/a | (9.1) | (9.0) | n/a | n/a | (9.2) | | Total VaR | | | | | | | | | | | 8.4 | 13.5 | 6.3 | 9.2 | 8.1 | 24.6 | 6.7 | 12.6 | 1. The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low VaR reported for the Group as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table. 147 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 147 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Market risk (continued) Non-traded market risk Balance sheet risk management The principal objectives of balance sheet risk management are to maintain acceptable levels of interest rate and liquidity risk to mitigate the negative impact of movements in interest rates on the earnings and market value of the Group’s banking book, while ensuring the Group maintains sufficient liquidity to meet its obligations as they fall due. Interest rate risk management Non-traded interest rate risk relates to the potential adverse impact of changes in market interest rates on the Group’s future Net interest income. This risk arises from two principal sources, namely mismatches between the repricing dates of interest bearing assets and liabilities; and the investment of capital and other non-interest bearing liabilities and assets. Interest rate risk is reported using VaR and scenario analysis (based on the impact of a 1% rate shock). The table below shows VaR figures for non-traded interest rate risk for the combined Group as well as Australia, New Zealand and Rest of World geographies which are calculated separately. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Total Group | | Total Group (excl. Suncorp Bank) | | | | | | | | | | | | | | | | | | | | | | 2025 | | 2024 | | | | | | | | | | | | | | | | | | | | | | | | 2025 | | | | 2024 | | | | | Consolidated | | | | | | | | | | | | | As at | As at | As at | | | | | | | | | | | | | High for | | | | | | | | | | | | year | | | | | | | | | | | | | Low for | | | | | | | | | | | | year | | | | | | | | | | | | | Average | | | | | | | | | | | | for year | As at | | | | | | | | | | | | | High for | | | | | | | | | | | | year | | | | | | | | | | | | | Low for | | | | | | | | | | | | year | | | | | | | | | | | | | Average | | | | | | | | | | | | for year | | | $m | $m | | | | | | | | | | | | | | | | | | | | | | | | | $m | $m | $m | $m | $m | $m | $m | $m | | Non-traded value at risk 99% | | | | | | | | | | | | | | | | | | | | | | | | Australia | 98.8 | 96.8 | | | | | | | | | | | | | | | | | | | | | | | | | 99.3 | 99.3 | 84.4 | 91.8 | 97.7 | 97.7 | 70.8 | 78.9 | | New Zealand | | | | | | | | | | | | | 23.6 | 27.4 | | | | | | | | | | | | | | | | | | | | | | | | | 23.6 | 25.5 | 20.6 | 23.1 | 27.4 | 28.2 | 24.3 | 25.9 | | Rest of World | | | | | | | | | | | | | 29.7 | 32.9 | | | | | | | | | | | | | | | | | | | | | | | | | 29.7 | 37.7 | 22.3 | 31.5 | 32.9 | 39.5 | 29.0 | 34.8 | | Diversification benefit | | | | | | | | | | | | 1 | | | | | | | | | | | | | (51.4) | (62.2) | | | | | | | | | | | | | | | | | | | | | | | | | (51.0) | n/a | n/a | (48.8) | (63.0) | n/a | n/a | (46.9) | | Total VaR | | | | | | | | | | | | | 100.7 | 94.9 | 101.6 | 101.8 | 94.6 | 97.6 | 95.0 | 99.5 | 81.3 | 92.7 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | | | 2024 | | | | | The Company | | | | | | | | | | | | | | | | | | | | | As at | | | | | | | | | | | High for | | | | | | | | | | year | | | | | | | | | | | Low for | | | | | | | | | | year | | | | | | | | | | | Average | | | | | | | | | | for year | As at | | | | | | | | | | | High for | | | | | | | | | | year | | | | | | | | | | | Low for | | | | | | | | | | year | | | | | | | | | | | Average | | | | | | | | | | for year | | | | | | | | | | | | | $m | $m | $m | $m | $m | $m | $m | $m | | Non-traded value at risk 99% | | | | | | | | | | | | | | | | | | | | Australia | 99.3 | 99.3 | 84.4 | 91.8 | 97.7 | 97.7 | 70.8 | 78.9 | | New Zealand | | | | | | | | | | | - | 0.1 | - | - | 0.0 | 0.1 | 0.0 | 0.0 | | Rest of World | | | | | | | | | | | 29.1 | 38.5 | 22.4 | 31.9 | 33.5 | 39.7 | 31.1 | 36.6 | | Diversification benefit | | | | | | | | | | 1 | | | | | | | | | | | (32.3) | n/a | n/a | (30.0) | (37.8) | n/a | n/a | (31.8) | | Total VaR | | | | | | | | | | | 96.1 | 99.7 | 89.6 | 93.7 | 93.4 | 93.4 | 74.2 | 83.7 | 1. The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low VaR reported for the Group as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table. 148 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 148 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 148 17. Financial risk management (continued) Market risk (continued) Non-traded market risk Balance sheet risk management The principal objectives of balance sheet risk management are to maintain acceptable levels of interest rate and liquidity risk to mitigate the negative impact of movements in interest rates on the earnings and market value of the Group’s banking book, while ensuring the Group maintains sufficient liquidity to meet its obligations as they fall due. Interest rate risk management Non-traded interest rate risk relates to the potential adverse impact of changes in market interest rates on the Group’s future Net interest income. This risk arises from two principal sources, namely mismatches between the repricing dates of interest bearing assets and liabilities; and the investment of capital and other non-interest bearing liabilities and assets. Interest rate risk is reported using VaR and scenario analysis (based on the impact of a 1% rate shock). The table below shows VaR figures for non-traded interest rate risk for the combined Group as well as Australia, New Zealand and Rest of World geographies which are calculated separately. Total Group Total Group (excl. Suncorp Bank) 2025 2024 2025 2024 Consolidated As at As at As at High for year Low for year Average for year As at High for year Low for year Average for year $m $m $m $m $m $m $m $m $m $m Non-traded value at risk 99% Australia 98.8 96.8 99.3 99.3 84.4 91.8 97.7 97.7 70.8 78.9 New Zealand 23.6 27.4 23.6 25.5 20.6 23.1 27.4 28.2 24.3 25.9 Rest of World 29.7 32.9 29.7 37.7 22.3 31.5 32.9 39.5 29.0 34.8 Diversification benefit 1 (51.4) (62.2) (51.0) n/a n/a (48.8) (63.0) n/a n/a (46.9) Total VaR 100.7 94.9 101.6 101.8 94.6 97.6 95.0 99.5 81.3 92.7 2025 2024 T h e Company As at High for year Low for year Average for year As at High for year Low for year Average for year $m $m $m $m $m $m $m $m Non-traded value at risk 99% Australia 99.3 99.3 84.4 91.8 97.7 97.7 70.8 78.9 New Zealand - 0.1 - - 0.0 0.1 0.0 0.0 Rest of World 29.1 38.5 22.4 31.9 33.5 39.7 31.1 36.6 Diversification benefit 1 (32.3) n/a n/a (30.0) (37.8) n/a n/a (31.8) Total VaR 96.1 99.7 89.6 93.7 93.4 93.4 74.2 83.7 1. The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low VaR reported for the Group as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table. 148 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Market risk (continued) We undertake scenario analysis to stress test the impact of extreme events on the Group’s market risk exposures (excluding Suncorp Bank). We model a 1% overnight parallel positive shift in the yield curve to determine the potential impact on our Net interest income over the next 12 months. This is a standard risk measure which assumes the parallel shift is reflected in all wholesale and customer rates. The table below shows the outcome of this risk measure for the current and previous financial years, expressed as a percentage of reported Net interest income. | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The C | | | | | | ompany | | | | 2025 | 2024 | 2025 | 2024 | | Impact of 1% rate shock on the next 12 months' net interest income | | | | | | As at period end | 1.52% | 0.68% | 1.48% | 0.38% | | Maximum exposure | | | | | | | 1.58% | 1.20% | 1.53% | 1.06% | | Minimum exposure | | | | | | | 1.09% | 0.27% | 0.89% | 0.09% | | Average exposure (in absolute terms) | | | | | | | 1.33% | 0.78% | 1.17% | 0.61% | Equity securities designated at FVOCI Our investment securities contain equity investment holdings which predominantly comprise Bank of Tianjin and other unlisted equities. The market risk impact on these equity investments is not captured by the Group’s VaR processes for traded and non-traded market risks. Therefore, the Group regularly reviews the valuations of the investments within the portfolio and assesses whether the investments are appropriately measured based on the recognition and measurement policies set out in Note 11 Investment securities. Foreign currency risk – structural exposures Our investment of capital in foreign operations - for example, branches, subsidiaries or associates with functional currencies other than the Australian Dollar - exposes the Group to the risk of changes in foreign exchange rates. Variations in the value of these foreign operations arising as a result of exchange differences are reflected in the foreign currency translation reserve in equity. Where considered appropriate, the Group enters into hedges of the foreign exchange exposures from its foreign operations. Similarly, the Group may enter into economic hedges against larger foreign exchange denominated revenue streams (primarily New Zealand Dollar, US Dollar and US Dollar correlated). The primary objective of hedging is to ensure that, if practical, the effect of changes in foreign exchange rates on the consolidated capital ratios are minimised. 149 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 149 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Liquidity and funding risk Liquidity risk overview, management and control responsibilities Liquidity risk is the risk that the Group is either: • unable to meet its payment obligations (including repaying depositors or maturing wholesale debt) when they fall due; or • does not have the appropriate amount, tenor and composition of funding and liquidity to fund increases in its assets. Management of liquidity and funding risks are overseen by GALCO. The Group’s liquidity and funding risks are governed by a set of Board-approved principles and include: • maintaining the ability to meet all payment obligations in the immediate term; • ensuring that the Group maintains Board-approved ‘survival horizons’ under a range of idiosyncratic, and general market, liquidity stress scenarios, at a country and Group-wide level, to meet cash flow obligations over the short to medium term; • maintaining strength in the Group’s balance sheet structure to ensure long term resilience in the liquidity and funding risk profile; • ensuring the liquidity management framework is compatible with local regulatory requirements; • preparing daily liquidity reports and scenario analysis to quantify the Group’s positions; • targeting a diversified funding base to avoid undue concentrations by investor type, maturity, market source and currency; • holding a portfolio of high-quality liquid assets to protect against adverse funding conditions and to support day-to-day operations; and • establishing detailed contingency plans to cover different liquidity crisis events. The Group operates under a non-operating holding company structure whereby: • ANZBGL operates its own liquidity and funding program, governance frameworks and reporting regime reflecting its ADI operations; • ANZGHL (parent entity) has no material liquidity risk given the structure and nature of the balance sheet; and • ANZ Non-Bank Group is not expected to have separate funding arrangements and will rely on ANZGHL for funding. A separate liquidity policy has been established for ANZGHL and ANZBGL Group to reflect the differing nature of liquidity risk inherent in each business model. ANZGHL will ensure that the parent entity and ANZ Non-Bank Group holds sufficient cash reserves to meet operating and financing requirements. Key areas of measurement for liquidity risk Scenario modelling of funding sources Group’s liquidity risk appetite is defined by a range of regulatory and internal liquidity metrics mandated by the ANZBGL Board. The metrics cover a range of scenarios of varying duration and level of severity. The objective of this framework is to: • Provide protection against shorter term extreme market dislocation and stress. • Maintain structural strength in the balance sheet by ensuring that an appropriate amount of longer-term assets are funded with longer-term funding. • Ensure that no undue timing concentrations exist in the Group’s funding profile. Key components of this framework include the Liquidity Coverage Ratio (LCR), which is a severe short term liquidity stress scenario, the Net Stable Funding Ratio (NSFR), a longer-term structural liquidity measure (both of which are mandated by banking regulators including APRA), and internally-developed liquidity scenarios for stress-testing purposes. Liquid assets Group holds a portfolio of high quality (unencumbered) liquid assets to protect Group’s liquidity position in a severely stressed environment and to meet regulatory requirements. High quality liquid assets comprise three categories consistent with Basel III LCR requirements: • Highest-quality liquid assets - cash and highest credit quality government, central bank or public sector securities eligible for repurchase with central banks to provide same-day liquidity. • High-quality liquid assets - high credit quality government, central bank or public sector securities, high quality corporate debt securities and high- quality covered bonds eligible for repurchase with central banks to provide same-day liquidity. • Alternative liquid assets (ALA) - eligible securities listed by RBNZ. Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and the risk appetite set by the ANZBGL Board. 150 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 150 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 150 17. Financial risk management (continued) Liquidity and funding risk Liquidity risk overview, management and control responsibilities Liquidity risk is the risk that the Group is either: • unable to meet its payment obligations (including repaying depositors or maturing wholesale debt) when they fall due; or • does not have the appropriate amount, tenor and composition of funding and liquidity to fund increases in its assets. Management of liquidity and funding risks are overseen by GALCO. The Group’s liquidity and funding risks are governed by a set of Board-approved principles and include: • maintaining the ability to meet all payment obligations in the immediate term; • ensuring that the Group maintains Board-approved ‘survival horizons’ under a range of idiosyncratic, and general market, liquidity stress scenarios, at a country and Group-wide level, to meet cash flow obligations over the short to medium term; • maintaining strength in the Group’s balance sheet structure to ensure long term resilience in the liquidity and funding risk profile; • ensuring the liquidity management framework is compatible with local regulatory requirements; • preparing daily liquidity reports and scenario analysis to quantify the Group’s positions; • targeting a diversified funding base to avoid undue concentrations by investor type, maturity, market source and currency; • holding a portfolio of high-quality liquid assets to protect against adverse funding conditions and to support day-to-day operations; and • establishing detailed contingency plans to cover different liquidity crisis events. The Group operates under a non-operating holding company structure whereby: • ANZBGL operates its own liquidity and funding program, governance frameworks and reporting regime reflecting its ADI operations; • ANZGHL (parent entity) has no material liquidity risk given the structure and nature of the balance sheet; and • ANZ Non-Bank Group is not expected to have separate funding arrangements and will rely on ANZGHL for funding. A separate liquidity policy has been established for ANZGHL and ANZBGL Group to reflect the differing nature of liquidity risk inherent in each business model. ANZGHL will ensure that the parent entity and ANZ Non-Bank Group holds sufficient cash reserves to meet operating and financing requirements. Key areas of measurement for liquidity risk Scenario modelling of funding sources Group’s liquidity risk appetite is defined by a range of regulatory and internal liquidity metrics mandated by the ANZBGL Board. The metrics cover a range of scenarios of varying duration and level of severity. The objective of this framework is to: • Provide protection against shorter term extreme market dislocation and stress. • Maintain structural strength in the balance sheet by ensuring that an appropriate amount of longer-term assets are funded with longer-term funding. • Ensure that no undue timing concentrations exist in the Group’s funding profile. Key components of this framework include the Liquidity Coverage Ratio (LCR), which is a severe short term liquidity stress scenario, the Net Stable Funding Ratio (NSFR), a longer-term structural liquidity measure (both of which are mandated by banking regulators including APRA), and internally-developed liquidity scenarios for stress-testing purposes. Liquid assets Group holds a portfolio of high quality (unencumbered) liquid assets to protect Group’s liquidity position in a severely stressed environment and to meet regulatory requirements. High quality liquid assets comprise three categories consistent with Basel III LCR requirements: • Highest-quality liquid assets - cash and highest credit quality government, central bank or public sector securities eligible for repurchase with central banks to provide same-day liquidity. • High-quality liquid assets - high credit quality government, central bank or public sector securities, high quality corporate debt securities and high- quality covered bonds eligible for repurchase with central banks to provide same-day liquidity. • Alternative liquid assets (ALA) - eligible securities listed by RBNZ. Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and the risk appetite set by the ANZBGL Board. 150 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Liquidity and funding risk (continued) Liquidity risk outcomes 1 Liquidity Coverage Ratio - ANZBGL’s Liquidity Coverage Ratio (LCR) averaged 132% for 2025, (2024: 133%) and above the regulatory minimum of 100%. Net Stable Funding Ratio - ANZBGL’s Net Stable Funding Ratio (NSFR) as at 30 September 2025 was 115% (2024: 116%), above the regulatory minimum of 100%. 1. This information is not within the scope of the external audit of the Group Financial Report by the Group’s external auditor, KPMG. The Liquidity Coverage Ratio and Net Stable Funding Ratio are non-IFRS disclosures and are disclosed as part of the Group's APS 330 Public Disclosure and disclosed in APRA Reporting Form ARF 210 Liquidity which will be subject to specific procedures in accordance with Prudential Standard APS 310 Audit and Related Matters. Liquidity crisis contingency planning Group maintains APRA-endorsed liquidity crisis contingency plans for analysing and responding to a liquidity threatening event at a country and Group- wide level. Key liquidity contingency crisis planning requirements and guidelines include: | | | | | --- | --- | --- | | Ongoing business management | Early signs/mild stress | Severe stress | | • establish crisis/severity levels | | | | • liquidity limits | | | | • early warning indicators | | | | | • monitoring and review | | | | • management actions not requiring | | | | business rationalisation | | | | | • activate contingency funding plans | | | | • management actions for altering asset and liability | | | | behaviour | | Assigned responsibility for internal and external communications and the appropriate timing to communicate. | | | Since the precise nature of any stress event cannot be known in advance, we design the plans to be flexible to the nature and severity of the stress event with multiple variables able to be accommodated in any plan . Group funding The Group monitors the composition and stability of its funding so that it remains within the Group’s funding risk appetite. This approach ensures that an appropriate proportion of the Group’s assets are funded by stable funding sources, including customer deposits; longer-dated wholesale funding (with a remaining term exceeding one year); and equity. | | | | --- | --- | | Funding plans prepared | Considerations in preparing funding plans | | • 3 year strategic plan prepared annually | | | • annual funding plan as part of the Group’s planning | | | process | | | • forecasting in light of actual results as a calibration to the | | | annual plan | | | | • customer balanc | | | e sheet growth | | | • changes in wholesale funding including: targeted funding volumes; markets; | | | investors; tenors; and currencies for senior, secured, subordinated, hybrid | | | transactions and market conditions | | | • liquidity stress testing | 151 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 151 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 17. Financial risk management (continued) Liquidity and funding risk (continued) Residual contractual maturity analysis of the group’s liabilities The tables below provide residual contractual maturity analysis of financial liabilities as at 30 September within relevant maturity groupings. All outstanding debt issuance and subordinated debt is profiled on the earliest date on which the Group may be required to pay. All at-call liabilities are reported in the ‘Less than 3 months’ category unless there is a longer minimum notice period. The amounts represent principal and interest cash flows and therefore may differ from equivalent amounts reported on Balance Sheet. It should be noted that this is not how the Group manages its liquidity risk. The management of this risk is detailed on page 150. | | | | | | | | --- | --- | --- | --- | --- | --- | | | Less than | | | | | | | 3 months | | | | | | | | | | | | | | | 3 to 12 | | | | | | | months | | | | | | | | 1 to 5 | | | | | | | years | | | | | | | | After | | | | | | | 5 years | Total | | Consolidated | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Settlement balances owed by ANZ | 31,144 | - | - | - | 31,144 | | Collateral received | | | | | | | | 7,428 | - | - | - | 7,428 | | Deposits and other borrowings | | | | | | | | 793,371 | 157,254 | 12,472 | 174 | 963,271 | | Liability for acceptances | | | | | | | | 222 | - | - | - | 222 | | Debt issuances | | | | | | | 1 | | | | | | | | 9,987 | 43,588 | 115,444 | 23,013 | 192,032 | | Derivative liabilities (excluding those held for balance sheet management) | | | | | | | 2 | | | | | | | | 40,814 | | | | 40,814 | | Lease liabilities | | | | | | | | 104 | 275 | 876 | 960 | 2,215 | | Derivative assets and liabilities (balance sheet management) | | | | | | | 3 | | | | | | | | | | | | | | - Funding: | | | | | | | Receive leg | (49,005) | (71,961) | (89,534) | (16,260) | (226,760) | | Pay leg | | | | | | | | 49,288 | 70,441 | 87,590 | 15,939 | 223,258 | | - Other balance sheet management: | | | | | | | Receive leg | (148,344) | (38,507) | (42,114) | (22,286) | (251,251) | | Pay leg | | | | | | | | 146,126 | 36,191 | 39,138 | 21,043 | 242,498 | | As at 30 September 2024 | | | | | | | Settlement balances owed by ANZ | 16,188 | - | - | - | 16,188 | | Collateral received | 6,583 | - | - | - | 6,583 | | Deposits and other borrowings | 744,041 | 158,247 | 11,040 | 199 | 913,527 | | Liability for acceptances | 425 | - | - | - | 425 | | Debt issuances | | | | | | | 1 | | | | | | | | 8,327 | 36,858 | 112,728 | 20,384 | 178,297 | | Derivative liabilities (excluding those held for balance sheet management) | | | | | | | 2 | | | | | | | | 47,622 | - | - | - | 47,622 | | Lease liabilities | 105 | 313 | 917 | 947 | 2,282 | | Derivative assets and liabilities (balance sheet management) | | | | | | | 3 | | | | | | | | | | | | | | - Funding: | | | | | | | Receive leg | (66,248) | (60,183) | (83,371) | (14,359) | (224,161) | | Pay leg | 66,981 | 60,260 | 84,472 | 14,661 | 226,374 | | - Other balance sheet management: | | | | | | | Receive leg | (189,769) | (42,388) | (36,763) | (21,831) | (290,751) | | Pay leg | 185,946 | 40,718 | 33,393 | 19,266 | 279,323 | 1. Callable wholesale debt instruments have been included at their next call date. Balance includes subordinated debt instruments that may be settled in cash or in equity, at the option of the Group and subordinated debt issued by ANZ New Zealand which constitutes Tier 2 capital under RBNZ requirements but does not qualify as the APRA Tier 2 requirements. 2. The full mark-to-market after any adjustments for Settle to Market of derivative liabilities (excluding those held for balance sheet management) is included in the ‘Less than 3 months’ category. 3. Includes derivatives designated into hedging relationships of $338 million (2024: $456 million) and $2,750 million (2024: $7,176 million) categorised as held for trading but form part of the Group’s balance sheet managed activities. At 30 September 2025, $193,177 million (2024: $184,890 million) of the Group’s undrawn facilities and $48,917 million (2024: $49,010 million) of its issued guarantees mature in less than 1 year, based on the earliest date on which the Group may be required to pay. 152 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 152 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 152 17. Financial risk management (continued) Liquidity and funding risk (continued) Residual contractual maturity analysis of the group’s liabilities The tables below provide residual contractual maturity analysis of financial liabilities as at 30 September within relevant maturity groupings. All outstanding debt issuance and subordinated debt is profiled on the earliest date on which the Group may be required to pay. All at-call liabilities are reported in the ‘Less than 3 months’ category unless there is a longer minimum notice period. The amounts represent principal and interest cash flows and therefore may differ from equivalent amounts reported on Balance Sheet. It should be noted that this is not how the Group manages its liquidity risk. The management of this risk is detailed on page 150. Less than 3 months 3 to 12 months 1 to 5 years After 5 years Total Consolidated $m $m $m $m $m As at 30 September 2025 Settlement balances owed by ANZ 31,144 - - - 31,144 Collateral received 7,428 - - - 7,428 Deposits and other borrowings 793,371 157,254 12,472 174 963,271 Liability for acceptances 222 - - - 222 Debt issuances 1 9,987 43,588 115,444 23,013 192,032 Derivative liabilities (excluding those held for balance sheet management) 2 40,814 40,814 Lease liabilities 104 275 876 960 2,215 Derivative assets and liabilities (balance sheet management) 3 - Funding: Receiv e leg (49,005) (71,961) (89,534) (16,260) (226,760) Pay leg 49,288 70,441 87,590 15,939 223,258 - Other balance sheet management: Receive leg (148,344) (38,507) (42,114) (22,286) (251,251) Pay leg 146,126 36,191 39,138 21,043 242,498 As at 30 September 2024 Settlement balances owed by ANZ 16,188 - - - 16,188 Collateral received 6,583 - - - 6,583 Deposits and other borrowings 744,041 158,247 11,040 199 913,527 Liability for acceptances 425 - - - 425 Debt issuances 1 8,327 36,858 112,728 20,384 178,297 Derivative liabilities (excluding those held for balance sheet management) 2 47,622 - - - 47,622 Lease liabilities 105 313 917 947 2,282 Derivative assets and liabilities (balance sheet management) 3 - Funding: Receiv e leg (66,248) (60,183) (83,371) (14,359) (224,161) Pay leg 66,981 60,260 84,472 14,661 226,374 - Other balance sheet management: Receive leg (189,769) (42,388) (36,763) (21,831) (290,751) Pay leg 185,946 40,718 33,393 19,266 279,323 1. Callable wholesale debt instruments have been included at their next call date. Balance includes subordinated debt instruments that may be settled in cash or in equity, at the option of the Group and subordinated debt issued by ANZ New Zealand which constitutes Tier 2 capital under RBNZ requirements but does not qualify as the APRA Tier 2 requirements. 2. The full mark-to-market after any adjustments for Settle to Market of derivative liabilities (excluding those held for balance sheet management) is included in the ‘Less than 3 months’ category. 3. Includes derivatives designated into hedging relationships of $338 million (2024: $456 million) and $2,750 million (2024: $7,176 million) categorised as held for trading but form part of the Group’s balance sheet managed activities. At 30 September 2025, $193,177 million (2024: $184,890 million) of the Group’s undrawn facilities and $48,917 million (2024: $49,010 million) of its issued guarantees mature in less than 1 year, based on the earliest date on which the Group may be required to pay. 152 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 17. Financial risk management (continued) Liquidity and funding risk (continued) | | | | | | | | --- | --- | --- | --- | --- | --- | | | Les | | | | | | | s than | | | | | | | 3 months | | | | | | | | 3 to 12 | | | | | | | months | | | | | | | | 1 to 5 | | | | | | | years | | | | | | | | After | | | | | | | 5 years | | | | | | | | Total | | The Company | | | | | | | | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | Settlement balances owed by ANZ | 27,189 | - | - | - | 27,189 | | Collateral received | | | | | | | | 6,579 | - | - | - | 6,579 | | Deposits and other borrowings | | | | | | | | 629,810 | 119,311 | 6,777 | 170 | 756,068 | | Liability for acceptances | | | | | | | | 191 | - | - | - | 191 | | Debt issuances | | | | | | | 1 | | | | | | | | 8,670 | 34,992 | 87,918 | 20,973 | 152,553 | | Derivative liabilities (excluding those held for balance sheet management) | | | | | | | 2 | | | | | | | | 44,833 | | | | 44,833 | | Lease liabilities | | | | | | | | 82 | 210 | 656 | 793 | 1,741 | | Derivative assets and liabilities (balance sheet management) | | | | | | | 3 | | | | | | | | | | | | | | - Funding: | | | | | | | Receive leg | (45,806) | (62,809) | (71,426) | (15,446) | (195,487) | | Pay leg | | | | | | | | 46,086 | 61,848 | 70,843 | 15,166 | 193,943 | | - Other balance sheet management: | | | | | | | Receive leg | (138,769) | (33,681) | (34,322) | (20,873) | (227,645) | | Pay leg | | | | | | | | 136,414 | 31,317 | 31,279 | 19,587 | 218,597 | | As at 30 September 2024 | | | | | | | Settlement balances owed by ANZ | 11,317 | - | - | - | 11,317 | | Collateral received | 6,061 | - | - | - | 6,061 | | Deposits and other borrowings | 589,605 | 114,499 | 4,813 | 197 | 709,114 | | Liability for acceptances | 329 | - | - | - | 329 | | Debt issuances | | | | | | | 1 | | | | | | | | 6,780 | 30,135 | 86,529 | 17,705 | 141,149 | | Derivative liabilities (excluding those held for balance sheet management) | | | | | | | 2 | | | | | | | | 52,979 | - | - | - | 52,979 | | Lease liabilities | 84 | 249 | 685 | 768 | 1,786 | | Derivative assets and liabilities (balance sheet management) | | | | | | | 3 | | | | | | | | | | | | | | - Funding: | | | | | | | Receive leg | (63,238) | (52,317) | (65,194) | (12,371) | (193,120) | | Pay leg | 63,728 | 52,291 | 66,280 | 12,677 | 194,976 | | - Other balance sheet management: | | | | | | | Receive leg | (185,273) | (36,714) | (29,311) | (20,391) | (271,689) | | Pay leg | 181,397 | 35,094 | 26,075 | 17,776 | 260,342 | 1. Callable wholesale debt instruments have been included at their next call date. Balance includes subordinated debt instruments that may be settled in cash or in equity, at the option of the Company. 2. The full mark-to-market after any adjustments for Settle to Market of derivative liabilities (excluding those held for balance sheet management) is included in the ‘Less than 3 months’ category. 3. Includes derivatives designated into hedging relationships of $162 million (2024: $210 million) and $2,774 million (2024: $4,278 million) categorised as held for trading but form part of the Company’s balance sheet managed activities. At 30 September 2025, $156,745 million (2024: $149,577 million) of the Company’s undrawn facilities and $45,221 million (2024: $45,459 million) of its issued guarantees mature in less than 1 year, based on the earliest date on which the Company may be required to pay. 153 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 153 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 18. Fair value of financial assets and financial liabilities Classification of financial assets and financial liabilities The Group recognises and measures financial instruments at either fair value or amortised cost, with a significant number of financial instruments on the Balance Sheet at fair value. Fair value is the best estimate of the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The following table sets out the classification of financial assets and liabilities according to their measurement bases together with their carrying amounts as recognised on the Balance Sheet. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | | | At amortised | | | | | | | | | cost | | | | | | | | | | At fair | | | | | | | | | value | Total | | | | | | | | | | At amortised | | | | | | | | | cost | | | | | | | | | | At fair | | | | | | | | | value | Total | | Consolidated | Note | $m | $m | $m | $m | $m | $m | | Financial assets | | | | | | | | | Cash and cash equivalents | 8 | 105,965 | 49,244 | 155,209 | 113,710 | 37,255 | 150,965 | | Settlement balances owed to ANZ | | | | | | | | | | | 23,394 | - | 23,394 | 5,484 | - | 5,484 | | Collateral paid | | | | | | | | | | | 9,831 | - | 9,831 | 10,090 | - | 10,090 | | Trading assets | 9 | | | | | | | | | | - | 48,248 | 48,248 | - | 45,755 | 45,755 | | Derivative financial instruments | 10 | | | | | | | | | | - | 47,480 | 47,480 | - | 54,370 | 54,370 | | Investment securities | 11 | | | | | | | | | | 7,520 | 158,020 | 165,540 | 7,091 | 133,171 | 140,262 | | Net loans and advances | 12 | | | | | | | | | | 799,588 | 30,398 | 829,986 | 779,246 | 24,786 | 804,032 | | Regulatory deposits | | | | | | | | | | | 541 | - | 541 | 665 | - | 665 | | Other financial assets | | | | | | | | | | | 4,042 | - | 4,042 | 4,547 | - | 4,547 | | Total | | | | | | | | | | | 950,881 | 333,390 | 1,284,271 | 920,833 | 295,337 | 1,216,170 | | Financial liabilities | | | | | | | | | Settlement balances owed by ANZ | | 31,144 | - | 31,144 | 16,188 | - | 16,188 | | Collateral received | | | | | | | | | | | 7,428 | - | 7,428 | 6,583 | - | 6,583 | | Deposits and other borrowings | 14 | | | | | | | | | | 898,713 | 57,688 | 956,401 | 862,165 | 43,001 | 905,166 | | Derivative financial instruments | 10 | | | | | | | | | | - | 43,902 | 43,902 | - | 55,254 | 55,254 | | Payables and other liabilities | 15 | | | | | | | | | | 11,187 | 3,960 | 15,147 | 12,571 | 6,023 | 18,594 | | Debt issuances | 16 | | | | | | | | | | 166,504 | 2,770 | 169,274 | 154,572 | 1,816 | 156,388 | | Total | | | | | | | | | | | 1,114,976 | 108,320 | 1,223,296 | 1,052,079 | 106,094 | 1,158,173 | 154 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 154 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 154 18. Fair value of financial assets and financial liabilities Classification of financial assets and financial liabilities The Group recognises and measures financial instruments at either fair value or amortised cost, with a significant number of financial instruments on the Balance Sheet at fair value. Fair value is the best estimate of the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The following table sets out the classification of financial assets and liabilities according to their measurement bases together with their carrying amounts as recognised on the Balance Sheet. 2025 2024 At amortised cost At fair value Total At am ortised cost At fair value Total Consolidated Note $m $m $m $m $m $m Financial assets Cash and cash equivalents 8 105,965 49,244 155,209 113,710 37,255 150,965 Settlement balances owed to ANZ 23,394 - 23,394 5,484 - 5,484 Collateral paid 9,831 - 9,831 10,090 - 10,090 Trading assets 9 - 48,248 48,248 - 45,755 45,755 Derivative financial instruments 10 - 47,480 47,480 - 54,370 54,370 Investment securities 11 7,520 158,020 165,540 7,091 133,171 140,262 Net loans and advances 12 799,588 30,398 829,986 779,246 24,786 804,032 Regulatory deposits 541 - 541 665 - 665 Other financial assets 4,042 - 4,042 4,547 - 4,547 Total 950,881 333,390 1,284 ,271 920,833 295,337 1,216,170 Financial liabilities Settlement balances owed by ANZ 31,144 - 31,144 16,188 - 16,188 Collateral received 7,428 - 7,428 6,583 - 6,583 Deposits and other borrowings 14 898,713 57,688 956,401 862,165 43,001 905,166 Derivative financial instruments 10 - 43,902 43,902 - 55,254 55,254 Payables and other liabilities 15 11,187 3,960 15,147 12,571 6,023 18,594 Debt issuances 16 166,504 2,770 169,274 154,572 1,816 156,388 Total 1,114,976 108,320 1,223 ,296 1,052,079 106,094 1,158,173 154 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 18. Fair value of financial assets and financial liabilities ( #### continued) Classification of financial assets and financial liabilities (continued) | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | | 2024 | | | | | | At amortised | | | | | | | | | cost | | | | | | | | | | At fair | | | | | | | | | value | Total | | | | | | | | | | At amortised | | | | | | | | | cost | | | | | | | | | | At fair | | | | | | | | | value | Total | | The Company | Note | $m | $m | $m | $m | $m | $m | | Financial assets | | | | | | | | | Cash and cash equivalents | 8 | 96,920 | 48,140 | 145,060 | 100,892 | 36,396 | 137,288 | | Settlement balances owed to ANZ | | | | | | | | | | | 22,030 | - | 22,030 | 5,019 | - | 5,019 | | Collateral paid | | | | | | | | | | | 8,552 | - | 8,552 | 8,797 | - | 8,797 | | Trading assets | 9 | | | | | | | | | | - | 40,608 | 40,608 | - | 38,427 | 38,427 | | Derivative financial instruments | 10 | | | | | | | | | | - | 50,531 | 50,531 | - | 57,627 | 57,627 | | Investment securities | 11 | | | | | | | | | | 5,971 | 130,614 | 136,585 | 5,356 | 108,610 | 113,966 | | Net loans and advances | 12 | | | | | | | | | | 583,639 | 29,216 | 612,855 | 564,559 | 24,439 | 588,998 | | Regulatory deposits | | | | | | | | | | | 245 | - | 245 | 222 | - | 222 | | Due from controlled entities | | | | | | | | | | | 22,443 | 1,947 | 24,390 | 21,864 | 2,451 | 24,315 | | Other financial assets | | | | | | | | | | | 2,895 | - | 2,895 | 3,090 | - | 3,090 | | Total | | | | | | | | | | | 742,695 | 301,056 | 1,043,751 | 709,799 | 267,950 | 977,749 | | Financial liabilities | | | | | | | | | Settlement balances owed by ANZ | | 27,189 | - | 27,189 | 11,317 | - | 11,317 | | Collateral received | | | | | | | | | | | 6,579 | - | 6,579 | 6,061 | - | 6,061 | | Deposits and other borrowings | 14 | | | | | | | | | | 700,582 | 50,991 | 751,573 | 662,910 | 40,960 | 703,870 | | Derivative financial instruments | 10 | | | | | | | | | | - | 47,769 | 47,769 | - | 57,467 | 57,467 | | Due to controlled entities | | | | | | | | | | | 26,731 | 324 | 27,055 | 25,560 | 100 | 25,660 | | Payables and other liabilities | 15 | | | | | | | | | | 8,378 | 3,775 | 12,153 | 8,797 | 5,677 | 14,474 | | Debt issuances | 16 | | | | | | | | | | 129,703 | 3,788 | 133,491 | 120,155 | 2,795 | 122,950 | | Total | | | | | | | | | | | 899,162 | 106,647 | 1,005,809 | 834,800 | 106,999 | 941,799 | 155 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 155 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 18. Fair value of financial assets and financial liabilities (continued) Financial assets and financial liabilities measured at fair value The fair valuation of financial assets and financial liabilities is generally determined at the individual instrument level. If the Group holds offsetting risk positions, then the portfolio exception in AASB 13 Fair Value Measurement (AASB 13) is used to measure the fair value of such groups of financial assets and financial liabilities. The Group measures the portfolio based on the price that would be received to sell a net long position (an asset) for a particular risk exposure, or to transfer a net short position (a liability) for a particular risk exposure. Fair value designation The Group designates certain loans and advances, deposits and other borrowings and debt issuances as FVTPL: • where they contain separable embedded derivatives and are managed on a fair value basis, the total fair value movements are recognised in profit or loss in the same period as the movement on any associated hedging instruments; or • in order to eliminate an accounting mismatch which would arise if the assets or liabilities were otherwise carried at amortised cost. This mismatch arises due to measuring the derivative financial instruments (used to mitigate interest rate risk of these assets or liabilities) at FVTPL. The Group’s approach ensures that it recognises the fair value movements on the assets or liabilities in profit or loss in the same period as the movement on the associated derivatives. The Group may also designate certain loans and advances, deposits and other borrowings and debt issuances as FVTPL where they are managed on a fair value basis to align the measurement with how the financial instruments are managed. Fair value approach and valuation techniques The Group uses valuation techniques to estimate the fair value of assets and liabilities for recognition, measurement and disclosure purposes where no quoted price in an active market for that asset or liability exists. This includes the following: | | | | --- | --- | | Asset or liability | Fair value approach | | Financial instruments classified as: | | | - Derivative financial assets and | | | financial liabilities (including trading | | | and non-trading) | | | - Repurchase agreements < 90 days | | | - Net loans and advances | | | - Deposits and other borrowings | | | - Debt issuances | | | | Discounted cash flow techniques are used whereby contractual future cash flows of the instrument are | | | discounted using wholesale market interest rates, or market borrowing rates for debt or loans with | | | similar maturities or yield curves appropriate for the remaining term to maturity. | | Other financial instruments held for | | | trading: | | | - Securities sold short | | | - Debt and equity securities | | | | Valuation techniques are used that incorporate observable market inputs for financial instruments with | | | similar credit risk, maturity and yield characteristics. | | | Equity securities where an active market does not exist are measured using comparable company | | | valuation multiples (such as price-to-book ratios). | | Financial instruments classified as: | | | - Investment securities – debt or equity | | | | Valuation techniques use comparable multiples (such as price-to-book ratios) or discounted cashflow | | | (DCF) techniques incorporating, to the extent possible, observable inputs from instruments with similar | | | characteristics. | There were no significant changes to valuation approaches during the current or prior periods. 156 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 156 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 156 18. Fair value of financial assets and financial liabilities (continued) Financial assets and financial liabilities measured at fair value The fair valuation of financial assets and financial liabilities is generally determined at the individual instrument level. If the Group holds offsetting risk positions, then the portfolio exception in AASB 13 Fair Value Measurement (AASB 13) is used to measure the fair value of such groups of financial assets and financial liabilities. The Group measures the portfolio based on the price that would be received to sell a net long position (an asset) for a particular risk exposure, or to transfer a net short position (a liability) for a particular risk exposure. Fair value designation The Group designates certain loans and advances, deposits and other borrowings and debt issuances as FVTPL: • where they contain separable embedded derivatives and are managed on a fair value basis, the total fair value movements are recognised in profit or loss in the same period as the movement on any associated hedging instruments; or • in order to eliminate an accounting mismatch which would arise if the assets or liabilities were otherwise carried at amortised cost. This mismatch arises due to measuring the derivative financial instruments (used to mitigate interest rate risk of these assets or liabilities) at FVTPL. The Group’s approach ensures that it recognises the fair value movements on the assets or liabilities in profit or loss in the same period as the movement on the associated derivatives. The Group may also designate certain loans and advances, deposits and other borrowings and debt issuances as FVTPL where they are managed on a fair value basis to align the measurement with how the financial instruments are managed. Fair value approach and valuation techniques The Group uses valuation techniques to estimate the fair value of assets and liabilities for recognition, measurement and disclosure purposes where no quoted price in an active market for that asset or liability exists. This includes the following: Asset or liability Fair value approach Financial instruments classified as: - Derivative financial assets and financial liabilities (including trading and non-trading) - Repurchase agreements < 90 days - Net loans and advances - Deposits and other borrowings - Debt issuances Discounted cash flow techniques are used whereby contractual future cash flows of the instrument are discounted using wholesale market interest rates, or market borrowing rates for debt or loans with similar maturities or yield curves appropriate for the remaining term to maturity. Other financial instruments held for trading: - Securities sold short - Debt and equity securities Valuation techniques are used that incorporate observable market inputs for financial instruments with similar credit risk, maturity and yield characteristics. Equity securities where an active market does not exist are measured using comparable company valuation multiples (such as price-to-book ratios). Financial instruments classified as: - Investment securities – debt or equity Valuation techniques use comparable multiples (such as price-to-book ratios) or discounted cashflow (DCF) techniques incorporating, to the extent possible, observable inputs from instruments with similar characteristics. There were no significant changes to valuation approaches during the current or prior periods. 156 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 18. Fair value of financial assets and financial liabilities (continued) Fair value hierarchy The Group categorises assets and liabilities carried at fair value into a fair value hierarchy in accordance with AASB 13 based on the observability of inputs used to measure the fair value: • Level 1 - valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - valuations using inputs other than quoted prices included within Level 1 that are observable for a similar asset or liability, either directly or indirectly; and • Level 3 - valuations where significant unobservable inputs are used to measure the fair value of the asset or liability. There were no significant changes to levelling approaches during the current or prior periods. The following table presents assets and liabilities carried at fair value in accordance with the fair value hierarchy: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Fair value measurements | | | | | | | | | | Quoted price | | | | | | | | | | in | | | | | | | | | | active markets | | | | | | | | | | (Level 1) | | | | | | | | | | | | Using | | | | | | | | | | observable inputs | | | | | | | | | | (Level 2) | | | | | | | | | | | | Using | | | | | | | | | | unobservable inputs | | | | | | | | | | (Level 3) | | Total | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | Consolidated | | | | | | | | | | | $m | $m | $m | $m | $m | $m | $m | $m | | Assets | | | | | | | | | | Cash and cash equivalents (measured at fair value) | - | - | 49,244 | 37,255 | - | - | 49,244 | 37,255 | | Trading assets | | | | | | | | | | 1 | | | | | | | | | | | 30,508 | 31,507 | 17,720 | 14,233 | 20 | 15 | 48,248 | 45,755 | | Derivative financial instruments | | | | | | | | | | 1 | | | | | | | | | | | 115 | 131 | 47,343 | 54,214 | 22 | 25 | 47,480 | 54,370 | | Investment securities | | | | | | | | | | 1 | | | | | | | | | | | 121,790 | 111,060 | 35,287 | 21,055 | 943 | 1,056 | 158,020 | 133,171 | | Net loans and advances | | | | | | | | | | | - | - | 30,310 | 24,429 | 88 | 357 | 30,398 | 24,786 | | Total | | | | | | | | | | | 152,413 | 142,698 | 179,904 | 151,186 | 1,073 | 1,453 | 333,390 | 295,337 | | Liabilities | | | | | | | | | | Deposits and other borrowings (designated at fair value) | - | - | 57,688 | 43,001 | - | - | 57,688 | 43,001 | | Derivative financial instruments | | | | | | | | | | 1 | | | | | | | | | | | 469 | 393 | 43,419 | 54,846 | 14 | 15 | 43,902 | 55,254 | | Payables and other liabilities | | | | | | | | | | | 3,517 | 5,804 | 443 | 219 | - | - | 3,960 | 6,023 | | Debt issuances (designated at fair value) | | | | | | | | | | | - | - | 2,770 | 1,816 | - | - | 2,770 | 1,816 | | Total | | | | | | | | | | | 3,986 | 6,197 | 104,320 | 99,882 | 14 | 15 | 108,320 | 106,094 | 1. During 2025, $6,621 million of assets were transferred from Level 1 to Level 2 (2024: $1,119 million transferred from Level 1 to Level 2) and $868 million of assets were transferred from Level 2 to Level 1 (2024: $4,913 million transferred from Level 2 to Level 1) and $49 million of assets were transferred from Level 3 to Level 2 (2024: $0 million transferred from Level 3 to Level 2) for the Group due to a change in the observability of market price and/or valuation inputs. There were no other material transfers between Level 1, Level 2 and Level 3 during the year. Transfers into and out of levels are measured at the beginning of the reporting period in which the transfer occurred. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Fair value measurements | | | | | | | | | | Quoted price in active | | | | | | | | | | markets | | | | | | | | | | (Level 1) | | | | | | | | | | | | Using observable | | | | | | | | | | inputs | | | | | | | | | | (Level 2) | | | | | | | | | | | | Using unobservable | | | | | | | | | | inputs | | | | | | | | | | (Level 3) | | Total | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | The Company | | | | | | | | | | | $m | $m | $m | $m | $m | $m | $m | $m | | Assets | | | | | | | | | | Cash and cash equivalents (measured at fair value) | - | - | 48,140 | 36,396 | - | - | 48,140 | 36,396 | | Trading assets | | | | | | | | | | 1 | | | | | | | | | | | 25,768 | 27,048 | 14,820 | 11,364 | 20 | 15 | 40,608 | 38,427 | | Derivative financial instruments | | | | | | | | | | 1 | | | | | | | | | | | 112 | 126 | 50,399 | 57,477 | 20 | 24 | 50,531 | 57,627 | | Investment securities | | | | | | | | | | 1 | | | | | | | | | | | 101,450 | 90,608 | 28,226 | 16,951 | 938 | 1,051 | 130,614 | 108,610 | | Net loans and advances | | | | | | | | | | | - | - | 29,128 | 24,082 | 88 | 357 | 29,216 | 24,439 | | Due from controlled entities | | | | | | | | | | | 19 | 246 | 1,928 | 2,205 | | - | 1,947 | 2,451 | | Total | | | | | | | | | | | 127,349 | 118,028 | 172,641 | 148,475 | 1,066 | 1,447 | 301,056 | 267,950 | | Liabilities | | | | | | | | | | Deposits and other borrowings (designated at fair value) | - | - | 50,991 | 40,960 | - | - | 50,991 | 40,960 | | Derivative financial instruments | | | | | | | | | | 1 | | | | | | | | | | | 379 | 324 | 47,376 | 57,131 | 14 | 12 | 47,769 | 57,467 | | Payables and other liabilities | | | | | | | | | | | 3,334 | 5,473 | 441 | 204 | - | - | 3,775 | 5,677 | | Debt issuances (designated at fair value) | | | | | | | | | | | - | - | 3,788 | 2,795 | - | - | 3,788 | 2,795 | | Due to controlled entities | | | | | | | | | | | - | - | 324 | 100 | - | - | 324 | 100 | | Total | | | | | | | | | | | 3,713 | 5,797 | 102,920 | 101,190 | 14 | 12 | 106,647 | 106,999 | 1. During 2025, $4,964 million of assets were transferred from Level 1 to Level 2 (2024: $1,119 million transferred from Level 1 to Level 2) and $751 million of assets were transferred from Level 2 to Level 1 (2024: $2,622 million transferred from Level 2 to Level 1) and $49 million of assets were transferred from Level 3 to Level 2 (2024: $0 million transferred from Level 3 to Level 2) for the Company due to a change in the observability of market price and/or valuation inputs. There were no other material transfers between Level 1, Level 2 and Level 3 during the year. Transfers into and out of levels are measured at the beginning of the reporting period in which the transfer occurred. 157 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 157 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 18. Fair value of financial assets and financial liabilities (continued) Fair value measurement incorporating unobservable market data Level 3 fair value measurements Level 3 financial instruments are a net asset of $1,059 million (2024: $1,438 million) for the Group and $1,052 million (2024: $1,435 million) for the Company. The assets and liabilities which incorporate significant unobservable inputs are: • equity and debt securities for which there is no active market or traded prices cannot be observed; • loans and advances measured at fair value for which there is no observable market data; and • derivatives referencing market rates that cannot be observed primarily due to lack of market activity. Lev el 3 transfers During the year $49 million of assets were transferred from Level 3 to Level 2 due to a change in the observability of market valuations inputs for the Group or the Company (2024: no material transfers into or out of Level 3). The material Level 3 financial instruments as at 30 September 2025 are listed as below: i) Investment securities - equity holdings classified as FVOCI Bank of Tianjin (BoT) The Group holds an investment in the Bank of Tianjin. The investment is valued based on comparative price-to-book (P/B) multiples (a P/B multiple is the ratio of the market value of equity to the book value of equity). The extent of judgement applied in determining the appropriate multiple and comparator group from which the multiple is derived resulted in the Level 3 classification. As at 30 September 2025, the BoT equity holding balance was $843 million (2024: $958 million). The decrease in the BoT fair valuation was due to a change in the P/B multiple and book value used in the valuation and foreign currency translation impacts over the year. Other equity investments The Group holds $100 million (2024: $98 million) and the Company holds $95 million (2024: $93 million) of unlisted equities classified as FVOCI, for which there are no active markets or traded prices available, resulting in a Level 3 classification. The decrease in unlisted equity holdings balance was mainly due to a downward revaluation of the equity instruments as well as disposals during the year. ii) Net loans and advances - classified as FVTPL Syndicated loans The Group holds $88 million (2024: $357 million) of syndicated loans for sale which are measured at FVTPL, for which there is no observable market data available. The decrease in the Level 3 loan balances was mainly due to scheduled repayments, a transfer of assets from Level 3 to Level 2 due to a change in the observability of market valuation inputs, as well as foreign currency translation impacts. Sensitivity to Level 3 data inputs When we make assumptions due to significant inputs to a valuation not being directly observable (Level 3 inputs), then changing these assumptions changes the Group’s estimate of the instrument’s fair value. Favourable and unfavourable changes are determined by changing the primary unobservable parameters used to derive the fair valuation. Investment securities - equity holdings The valuations of the equity investments are sensitive to variations in selected unobservable inputs, with valuation techniques used including P/B multiples and DCF. If for example, a 10% increase or decrease to the primary input into the valuations were to occur (such as the P/B multiple), it would result in a $94 million (2024: $106 million) increase or decrease in the fair value of the portfolio, which would be recognised in shareholders’ equity in the Group ($94 million for the Company (2024: $105 million)), with no impact to net profit or loss. Net loans and advances Syndicated loan valuations are sensitive to credit spreads in determining their fair valuation. For those syndicated loans which are primarily investment grade loans, an increase or decrease in credit spreads would have an immaterial impact on net profit or net assets of the Group. For the remaining syndicated loans, the Group may, where deemed necessary, utilise Credit Risk Insurance to mitigate the credit risks associated with those loans. The effect of this means an increase or decrease in credit spreads would also result in an immaterial impact to the net profit or net assets of the Group. Other The remaining Level 3 balance is immaterial and changes in inputs have a minimal impact on net profit and net assets of the Group. Deferred fair value gains and losses Where fair value is determined using unobservable inputs significant to the fair value of a financial instrument, the Group does not immediately recognise the difference between the transaction price and the amount determined based on the valuation technique (day one gain or loss) in profit or loss. After initial recognition, the Group recognises the deferred amount in profit or loss on a straight-line basis over the life of the transaction or until all inputs become observable. Day one gains and losses which have been deferred are not material. 158 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 158 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 158 18. Fair value of financial assets and financial liabilities (continued) Fair value measurement incorporating unobservable market data Level 3 fair value measurements Level 3 financial instruments are a net asset of $1,059 million (2024: $1,438 million) for the Group and $1,052 million (2024: $1,435 million) for the Company. The assets and liabilities which incorporate significant unobservable inputs are: • equity and debt securities for which there is no active market or traded prices cannot be observed; • loans and advances measured at fair value for which there is no observable market data; and • derivatives referencing market rates that cannot be observed primarily due to lack of market activity. Lev el 3 transfers During the year $49 million of assets were transferred from Level 3 to Level 2 due to a change in the observability of market valuations inputs for the Group or the Company (2024: no material transfers into or out of Level 3). The material Level 3 financial instruments as at 30 September 2025 are listed as below: i) Investment securities - equity holdings classified as FVOCI Bank of Tianjin (BoT) The Group holds an investment in the Bank of Tianjin. The investment is valued based on comparative price-to-book (P/B) multiples (a P/B multiple is the ratio of the market value of equity to the book value of equity). The extent of judgement applied in determining the appropriate multiple and comparator group from which the multiple is derived resulted in the Level 3 classification. As at 30 September 2025, the BoT equity holding balance was $843 million (2024: $958 million). The decrease in the BoT fair valuation was due to a change in the P/B multiple and book value used in the valuation and foreign currency translation impacts over the year. Other equity investments The Group holds $100 million (2024: $98 million) and the Company holds $95 million (2024: $93 million) of unlisted equities classified as FVOCI, for which there are no active markets or traded prices available, resulting in a Level 3 classification. The decrease in unlisted equity holdings balance was mainly due to a downward revaluation of the equity instruments as well as disposals during the year. ii) Net loans and advances - classified as FVTPL Syndicated loans The Group holds $88 million (2024: $357 million) of syndicated loans for sale which are measured at FVTPL, for which there is no observable market data available. The decrease in the Level 3 loan balances was mainly due to scheduled repayments, a transfer of assets from Level 3 to Level 2 due to a change in the observability of market valuation inputs, as well as foreign currency translation impacts. Sensitivity to Level 3 data inputs When we make assumptions due to significant inputs to a valuation not being directly observable (Level 3 inputs), then changing these assumptions changes the Group’s estimate of the instrument’s fair value. Favourable and unfavourable changes are determined by changing the primary unobservable parameters used to derive the fair valuation. Investment securities - equity holdings The valuations of the equity investments are sensitive to variations in selected unobservable inputs, with valuation techniques used including P/B multiples and DCF. If for example, a 10% increase or decrease to the primary input into the valuations were to occur (such as the P/B multiple), it would result in a $94 million (2024: $106 million) increase or decrease in the fair value of the portfolio, which would be recognised in shareholders’ equity in the Group ($94 million for the Company (2024: $105 million)), with no impact to net profit or loss. Net loans and advances Syndicated loan valuations are sensitive to credit spreads in determining their fair valuation. For those syndicated loans which are primarily investment grade loans, an increase or decrease in credit spreads would have an immaterial impact on net profit or net assets of the Group. For the remaining syndicated loans, the Group may, where deemed necessary, utilise Credit Risk Insurance to mitigate the credit risks associated with those loans. The effect of this means an increase or decrease in credit spreads would also result in an immaterial impact to the net profit or net assets of the Group. Other The remaining Level 3 balance is immaterial and changes in inputs have a minimal impact on net profit and net assets of the Group. Deferred fair value gains and losses Where fair value is determined using unobservable inputs significant to the fair value of a financial instrument, the Group does not immediately recognise the difference between the transaction price and the amount determined based on the valuation technique (day one gain or loss) in profit or loss. After initial recognition, the Group recognises the deferred amount in profit or loss on a straight-line basis over the life of the transaction or until all inputs become observable. Day one gains and losses which have been deferred are not material. 158 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 18. Fair value of financial assets and financial liabilities (continued) Financial assets and financial liabilities not measured at fair value The financial assets and financial liabilities listed below are carried at amortised cost on the Group’s Balance Sheet. While this is the value at which we expect the assets will be realised and the liabilities settled, the Group provides an estimate of the fair value of the financial assets and financial liabilities at balance date in the table below. Fair values of financial assets and liabilities carried at amortised cost not included in the table below approximate their carrying values. These financial assets and liabilities are either short term in nature or are floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Categorised int | | | | | | | | | | | | o fair value hierarchy | | | | | | | | | | | | | | Quot | | | | | | | | | | | | ed price | | | | | | | | | | | | in active markets | | | | | | | | | | | | (Level 1) | | | | | | | | | | | | | | Using | | | | | | | | | | | | observable inputs | | | | | | | | | | | | (Level 2) | | | | | | | | | | | | | | Using | | | | | | | | | | | | unobservable inputs | | | | | | | | | | | | (Level 3) | | | | | | At amortised cost | | | | | | | | Total fair value | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | Consolidated | | | | | | | | | | | | | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | | Financial assets | | | | | | | | | | | | Investment securities | 7,520 | 7,091 | - | - | 7,523 | 7,078 | - | - | 7,523 | 7,078 | | Net loans and advances | | | | | | | | | | | | | 799,588 | 779,246 | - | - | 12,167 | 17,693 | 788,001 | 761,657 | 800,168 | 779,350 | | Total | | | | | | | | | | | | | 807,108 | 786,337 | - | - | 19,690 | 24,771 | 788,001 | 761,657 | 807,691 | 786,428 | | Financial liabilities | | | | | | | | | | | | Deposits and other borrowings | 898,713 | 862,165 | - | - | 898,984 | 862,368 | - | - | 898,984 | 862,368 | | Debt issuances | | | | | | | | | | | | | 166,504 | 154,572 | 30,546 | 32,244 | 137,715 | 123,667 | - | - | 168,261 | 155,911 | | Total | | | | | | | | | | | | | 1,065,217 | 1,016,737 | 30,546 | 32,244 | 1,036,699 | 986,035 | - | - | 1,067,245 | 1,018,279 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Categorised into fair value hierarchy | | | | | | | | | | | | | | Quoted | | | | | | | | | | | | price in | | | | | | | | | | | | active markets | | | | | | | | | | | | | | Using observable | | | | | | | | | | | | inputs | | | | | | | | | | | | | | Using unobservable | | | | | | | | | | | | inputs | | | | | | At amortised cost | | (Level 1) | | (Level 2) | | (Level 3) | | Total fair value | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | The Company | | | | | | | | | | | | | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | | Financial assets | | | | | | | | | | | | Investment securities | 5,971 | 5,356 | - | - | 5,974 | 5,355 | - | - | 5,974 | 5,355 | | Net loans and advances | | | | | | | | | | | | | 583,639 | 564,559 | - | - | 11,617 | 17,335 | 572,044 | 547,021 | 583,661 | 564,356 | | Total | | | | | | | | | | | | | 589,610 | 569,915 | - | - | 17,591 | 22,690 | 572,044 | 547,021 | 589,635 | 569,711 | | Financial liabilities | | | | | | | | | | | | Deposits and other borrowings | 700,582 | 662,910 | - | - | 700,668 | 662,965 | - | - | 700,668 | 662,965 | | Debt issuances | | | | | | | | | | | | | 129,703 | 120,155 | 27,316 | 29,758 | 103,740 | 91,466 | - | - | 131,056 | 121,224 | | Total | | | | | | | | | | | | | 830,285 | 783,065 | 27,316 | 29,758 | 804,408 | 754,431 | - | - | 831,724 | 784,189 | 159 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 159 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 18. Fair value of financial assets and financial liabilities (continued) Financial assets and financial liabilities not measured at fair value (continued) The following table sets out the Group’s basis of estimating the fair values of financial assets and liabilities carried at amortised cost where the carrying value is not typically a reasonable approximation of fair value . | | | | --- | --- | | Financial asset and liability | Fair value approach | | Investment securities - debt securities at | | | amortised cost | | | | Calculated based on quoted market prices or observable inputs as applicable. If quoted market prices are | | | not available, we use a discounted cash flow model using a yield curve appropriate for the remaining term | | | to maturity of the debt instrument. The fair value reflects adjustments to credit spreads applicable for that | | | instrument. | | Net loans and advances to banks | Discounted cash flows using prevailing market rates for loans with similar credit quality. | | Net loans and advances to customers | Present value of future cash flows, discounted using a curve that incorporates changes in wholesale market | | | rates, the Group’s cost of wholesale funding and the customer margin, as appropriate. | | Deposit liability without a specified | | | maturity or at call | | | | The amount payable on demand at the reporting date. We do not adjust the fair value for any value we | | | expect the Group to derive from retaining the deposit for a future period. | | Interest bearing fixed maturity d | eposits | | and other borrowings and acceptances | | | with quoted market rates | | | | Market borrowing rates of interest for debt with a similar maturity are used to discount contractual cash | | | flows to derive the fair value. | | Debt issuances | Calculated based on quoted market prices or observable inputs as applicable. If quoted market prices are | | | not available, we use a discounted cash flow model using a yield curve appropriate for the remaining term | | | to maturity of the debt instrument. The fair value reflects adjustments to credit spreads applicable to the | | | Group for that instrument. | #### Key judgements and estimates A significant portion of financial instruments a re carried on the Balance Sheet at fair value. The Group therefore regularly evaluates the key valuation assumptions used in the determination of the fair valuation of financial instruments incorporated within the financial statements, as this can involve a high degree of judgement and estimation in determining the carrying values at the balance sheet date. In determining the fair valuation of financial instruments, the Group has considered the impact of related economic and market conditions on fair value measurement assumptions and the appropriateness of valuation inputs in these estimates, notably valuation adjustments, as well as the impact of these matters on the classification of financial instruments in the fair value hierarchy. Most of the valuation models the Group uses employ only observable market data as inputs. For certain financial instruments, we may use data that is not readily observable in current markets. If we use unobservable market data, then we need to exercise more judgement to determine fair value depending on the significance of the unobservable input to the overall valuation. Generally, we derive unobservable inputs from other relevant market data and compare them to observed transaction prices where available. When establishing the fair value of a financial instrument using a valuation technique, the Group also considers any required valuation adjustments in determining the fair value. We may apply adjustments (such as CVAs and FVAs – refer to Note 10 Derivative financial instruments) to reflect the Group’s assessment of factors that market participants would consider in determining fair value of a particular financial instrument. 160 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 160 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 160 18. Fair value of financial assets and financial liabilities (continued) Financial assets and financial liabilities not measured at fair value (continued) The following table sets out the Group’s basis of estimating the fair values of financial assets and liabilities carried at amortised cost where the carrying value is not typically a reasonable approximation of fair value . Financial asset and liability Fair value approach Investment securities - debt securities at amortised cost Calculated based on quoted market prices or observable inputs as applicable. If quoted market prices are not available, we use a discounted cash flow model using a yield curve appropriate for the remaining term to maturity of the debt instrument. The fair value reflects adjustments to credit spreads applicable for that instrument. Net loans and advances to banks Discounted cash flows using prevailing market rates for loans with similar credit quality. Net loans and advances to customers Present value of future cash flows, discounted using a curve that incorporates changes in wholesale market rates, the Group’s cost of wholesale funding and the customer margin, as appropriate. Deposit liability without a specified maturity or at call The amount payable on demand at the reporting date. We do not adjust the fair value for any value we expect the Group to derive from retaining the deposit for a future period. Interest bearing fixed maturity deposits and other borrowings and acceptances with quoted market rates Market borrowing rates of interest for debt with a similar maturity are used to discount contractual cash flows to derive the fair value. Debt issuances Calculated based on quoted market prices or observable inputs as applicable. If quoted market prices are not available, we use a discounted cash flow model using a yield curve appropriate for the remaining term to maturity of the debt instrument. The fair value reflects adjustments to credit spreads applicable to the Group for that instrument. A significant portion of financial instruments are carried on the Balance Sheet at fair value. The Group therefore regularly evaluates the key valuation assumptions used in the determination of the fair valuation of financial instruments incorporated within the financial statements, as this can involve a high degree of judgement and estimation in determining the carrying values at the balance sheet date. In determining the fair valuation of financial instruments, the Group has considered the impact of related economic and market conditions on fair value measurement assumptions and the appropriateness of valuation inputs in these estimates, notably valuation adjustments, as well as the impact of these matters on the classification of financial instruments in the fair value hierarchy. Most of the valuation models the Group uses employ only observable market data as inputs. For certain financial instruments, we may use data that is not readily observable in current markets. If we use unobservable market data, then we need to exercise more judgement to determine fair value depending on the significance of the unobservable input to the overall valuation. Generally, we derive unobservable inputs from other relevant market data and compare them to observed transaction prices where available. When establishing the fair value of a financial instrument using a valuation technique, the Group also considers any required valuation adjustments in determining the fair value. We may apply adjustments (such as CVAs and FVAs – refer to Note 10 Derivative financial instruments) to reflect the Group’s assessment of factors that market participants would consider in determining fair value of a particular financial instrument. #### Key judgements and estimates 160 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 19. Offsetting We offset financial assets and financial liabilities on the Balance Sheet (in accordance with AASB 132 Financial Instruments: Presentation) when there is: • a current legally enforceable right to set off the recognised amounts in all circumstances; and • an intention to settle the asset and liability on a net basis, or to realise the asset and settle the liability simultaneously. The following table identifies financial assets and financial liabilities which have not been offset but are subject to enforceable master netting agreements (or similar arrangements) and the related amounts not offset in the Balance Sheet. We have not taken into account the effect of over-collateralisation. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Amount subject to master netting agreement or similar | | | | | | Total amounts | | | | | | | | recognised | | | | | | | | in | | | | | | | | the | | | | | | | | Balance Sheet | | | | | | | | | Amounts not | | | | | | | | subject to | | | | | | | | master netting | | | | | | | | agreement or | | | | | | | | similar | Total | | | | | | | | | Financial | | | | | | | | instruments | | | | | | | | 4 | | | | | | | | | | | | | | | | | Financial | | | | | | | | collateral | | | | | | | | (received)/ | | | | | | | | pledged | | | | | | | | 4 | | | | | | | | | Net amount | | Consolidated | | | | | | | | | $m | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | | Derivative financial assets | | | | | | | | 1 | | | | | | | | | | | | | | | | | 47,480 | (1,886) | 45,594 | (29,164) | (12,710) | 3,720 | | Reverse repurchase, securities borrowing and | | | | | | | | similar agreements | | | | | | | | 2 | | | | | | | | | | | | | | | | - at amortised cost | 7,184 | (351) | 6,833 | (58) | (6,775) | - | | - at fair value through profit or loss | 74,634 | (10,802) | 63,832 | (2,442) | (61,314) | 76 | | Total financial assets | 129,298 | (13,039) | 116,259 | (31,664) | (80,799) | 3,796 | | | Derivative financial liabilities | | | | | | | | 1 | | | | | | | | | | | | | | | | | (43,902) | 1,732 | (42,170) | 29,164 | 5,979 | (7,027) | | Repurchase, securities lending and similar | | | | | | | | agreements | | | | | | | | 3 | | | | | | | | | | | | | | | | - at amortised cost | (3,885) | 2,803 | (1,082) | 58 | 1,024 | - | | - at fair value through profit or loss | (52,254) | 5,856 | (46,398) | 2,442 | 43,955 | (1) | | Total financial liabilities | (100,041) | 10,391 | (89,650) | 31,664 | 50,958 | (7,028) | | As at 30 September 2024 | | | | | | | | Derivative financial assets | | | | | | | | 1 | | | | | | | | | 54,370 | (3,534) | 50,836 | (38,192) | (7,702) | 4,942 | | Reverse repurchase, securities borrowing and | | | | | | | | similar agreements | | | | | | | | 2 | | | | | | | | | | | | | | | | - at amortised cost | 6,870 | (1,258) | 5,612 | - | (5,606) | 6 | | - at fair value through profit or loss | 57,032 | (12,183) | 44,849 | (1,957) | (42,830) | 62 | | Total financial assets | 118,272 | (16,975) | 101,297 | (40,149) | (56,138) | 5,010 | | Derivative financial liabilities | | | | | | | | 1 | | | | | | | | | (55,254) | 2,881 | (52,373) | 38,192 | 6,244 | (7,937) | | Repurchase, securities lending and similar | | | | | | | | agreements | | | | | | | | 3 | | | | | | | | | | | | | | | | - at amortised cost | (4,675) | 2,168 | (2,507) | - | 2,507 | - | | - at fair value through profit or loss | (39,640) | 14,185 | (25,455) | 1,957 | 23,484 | (14) | | Total financial liabilities | (99,569) | 19,234 | (80,335) | 40,149 | 32,235 | (7,951) | 1. Derivative assets and liabilities recognised in the Balance Sheet reflect the impact of certain central clearing collateral arrangements, whereby collateral that qualifies as legal settlement has reduced the carrying value of those associated derivative balances. 2. Reverse repurchase agreements: • with less than 90 days to maturity are presented in the Balance Sheet within Cash and cash equivalents; or • with 90 days or more to maturity are presented in the Balance Sheet within Net loans and advances. 3. Repurchase agreements are presented on the Balance Sheet within Deposits and other borrowings. 4. The amount of financial instruments and financial collateral disclosed is limited to the net balance sheet exposure of the relevant financial assets or liabilities, and any over-collateralisation is excluded from the tables. 161 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 161 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 19. Offsetting (continued) | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Amount subject to master netting agreement or similar | | | | | | Total amounts | | | | | | | | recognised | | | | | | | | in the | | | | | | | | Balance Sheet | | | | | | | | | Amounts not | | | | | | | | subject to | | | | | | | | master netting | | | | | | | | agreement or | | | | | | | | similar | | | | | | | | | Total | | | | | | | | | Financial | | | | | | | | instruments | | | | | | | | 4 | | | | | | | | | | | | | | | | | Financial | | | | | | | | collateral | | | | | | | | (received)/ | | | | | | | | pledged | | | | | | | | 4 | | | | | | | | | Net amount | | The Company | | | | | | | | | $m | $m | $m | $m | $m | $m | | As at 30 September 2025 | | | | | | | | Derivative financial assets | | | | | | | | 1 | | | | | | | | | 50,531 | (1,048) | 49,483 | (34,485) | (11,953) | 3,045 | | Reverse repurchase, securities borrowing and | | | | | | | | similar agreements | | | | | | | | 2 | | | | | | | | | | | | | | | | - at amortised cost | 6,633 | - | 6,633 | (58) | (6,575) | - | | - at fair value through profit or loss | 72,686 | (9,198) | 63,488 | (2,098) | (61,314) | 76 | | Total financial assets | 129,850 | (10,246) | 119,604 | (36,641) | (79,842) | 3,121 | | Derivative financial liabilities | | | | | | | | 1 | | | | | | | | | (47,769) | 1,060 | (46,709) | 34,485 | 5,944 | (6,280) | | Repurchase, securities lending and similar | | | | | | | | agreements | | | | | | | | 3 | | | | | | | | | | | | | | | | - at amortised cost | (2,619) | 2,561 | (58) | 58 | - | - | | - at fair value through profit or loss | (49,216) | 4,248 | (44,968) | 2,098 | 42,869 | (1) | | Total financial liabilities | (99,604) | 7,869 | (91,735) | 36,641 | 48,813 | (6,281) | | As at 30 September 2024 | | | | | | | | Derivative financial assets | | | | | | | | 1 | | | | | | | | | 57,627 | (2,527) | 55,100 | (43,360) | (7,258) | 4,482 | | Reverse repurchase, securities borrowing and | | | | | | | | similar agreements | | | | | | | | 2 | | | | | | | | | | | | | | | | - at amortised cost | 4,911 | (600) | 4,311 | - | (4,307) | 4 | | - at fair value through profit or loss | 56,173 | (11,596) | 44,577 | (1,685) | (42,830) | 62 | | Total financial assets | 118,711 | (14,723) | 103,988 | (45,045) | (54,395) | 4,548 | | Derivative financial liabilities | | | | | | | | 1 | | | | | | | | | (57,467) | 1,594 | (55,873) | 43,360 | 5,577 | (6,936) | | Repurchase, securities lending and similar | | | | | | | | agreements | | | | | | | | 3 | | | | | | | | | | | | | | | | - at amortised cost | (2,103) | 2,103 | - | - | - | - | | - at fair value th | | | | | | | | rough profit or loss | (38,903) | 14,099 | (24,804) | 1,685 | 23,106 | (13) | | Total financial liabilities | (98,473) | 17,796 | (80,677) | 45,045 | 28,683 | (6,949) | 1. Derivative assets and liabilities recognised in the Balance Sheet reflect the impact of certain central clearing collateral arrangements, whereby collateral that qualifies as legal settlement has reduced the carrying value of those associated derivative balances. 2. Reverse repurchase agreements: • with less than 90 days to maturity are presented in the Balance Sheet within Cash and cash equivalents; or • with 90 days or more to maturity are presented in the Balance Sheet within Net loans and advances. 3. Repurchase agreements are presented on the Balance Sheet within Deposits and other borrowings. 4. The amount of financial instruments and financial collateral disclosed is limited to the net balance sheet exposure of the relevant financial assets or liabilities, and any over collateralisation is excluded from the tables. 162 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 162 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 162 19. Offsetting (continued) Amount subject to master netting agreement or similar Total amounts recognised in the Balance Sheet Amounts not subject to master netting agreement or similar Total Financial instruments 4 Financial collateral (received)/ pledged 4 Net amount The Company $m $m $m $m $m $m As at 30 September 2025 Derivative financial assets 1 50,531 (1,048) 49,483 (34,485) (11,953) 3,045 Reverse repurchase, securities borrowing and similar agreements 2 - at amortised cost 6,633 - 6,633 (58) (6,575) - - at fair value through profit or loss 72,686 (9,198) 63,488 (2,098) (61,314) 76 Total financial assets 129,850 (10,246) 119,604 (36,641) (79,842) 3,121 Derivative financial liabilities 1 (47,769) 1,060 (46,709) 34,485 5,944 (6,280) Repurchase, securities lending and similar agreements 3 - at amortised cost (2,619) 2,561 (58) 58 - - - at fair value through profit or loss (49,216) 4,248 (44,968) 2,098 42,869 (1) Total financial liabilities (99,604) 7,869 (91,735) 36,641 48,813 (6,281) As at 30 September 2024 Derivative financial assets 1 57,627 (2,527) 55,100 (43,360) (7,258) 4,482 Reverse repurchase, securities borrowing and similar agreements 2 - at amortised cost 4,911 (600) 4,311 - (4,307) 4 - at fair value through profit or loss 56,173 (11,596) 44,577 (1,685) (42,830) 62 Total financial assets 118,711 (14,723) 103,988 (45,045) (54,395) 4,548 Derivative financial liabilities 1 (57,467) 1,594 (55,873) 43,360 5,577 (6,936) Repurchase, securities lending and similar agreements 3 - at amortised co st (2,103) 2,103 - - - - - at fair value th rough profit or loss (38,903) 14,099 (24,804) 1,685 23,106 (13) Total financial liabilities (98,473) 17,796 (80,677) 45,045 28,683 (6,949) 1. Derivative assets and liabilities recognised in the Balance Sheet reflect the impact of certain central clearing collateral arrangements, whereby collateral that qualifies as legal settlement has reduced the carrying value of those associated derivative balances. 2. Reverse repurchase agreements: • with less than 90 days to maturity are presented in the Balance Sheet within Cash and cash equivalents; or • with 90 days or more to maturity are presented in the Balance Sheet within Net loans and advances. 3. Repurchase agreements are presented on the Balance Sheet within Deposits and other borrowings. 4. The amount of financial instruments and financial collateral disclosed is limited to the net balance sheet exposure of the relevant financial assets or liabilities, and any over collateralisation is excluded from the tables. 162 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 20. Goodwill and other intangible assets | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Goodwill | | | | | | | | | | 1 | | | | | | | | | | | | Software | | Other Intangibles | | Total | | | Consolidated | | | | | | | | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | $m | $m | $m | $m | | Balance at start of year | | | | | | | | | | | 4,343 | 2,978 | 1,015 | 913 | 63 | 70 | 5,421 | 3,961 | | Additions | | | | | | | | | | 2 | | | | | | | | | | | (56) | 1,402 | 396 | 430 | 685 | - | 1,025 | 1,832 | | Amortisation expense | | | | | | | | | | 3 | | | | | | | | | | | - | - | (344) | (319) | (143) | - | (487) | (319) | | Impairment expense | | | | | | | | | | | - | - | (70) | (9) | (1) | (7) | (71) | (16) | | Foreign currency exchange difference | | | | | | | | | | | (122) | (37) | (1) | - | (3) | - | (126) | (37) | | Balance at end of year | | | | | | | | | | | 4,165 | 4,343 | 996 | 1,015 | 601 | 63 | 5,762 | 5,421 | | Cost | | | | | | | | | | 4 | | | | | | | | | | | 4,165 | 4,343 | 8,326 | 7,975 | 760 | 69 | 13,251 | 12,387 | | Accumulated amortisation | n/a | n/a | (7,330) | (6,960) | (159) | (6) | (7,489) | (6,966) | | Carrying amount | | | | | | | | | | | 4,165 | 4,343 | 996 | 1,015 | 601 | 63 | 5,762 | 5,421 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Goodwill | | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | | | | | Software | | Other Intangibles | | Total | | | The Company | | | | | | | | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | $m | $m | $m | $m | | Balance at start of year | | | | | | | | | | 62 | 62 | 933 | | 873 | - | - | 995 | 935 | | Additions | - | - | 386 | 343 | - | - | 386 | 343 | | Amortisation expense | | | | | | | | | | | - | - | (311) | (274) | - | - | (311) | (274) | | Impairment expense | | | | | | | | | | | - | - | (70) | (9) | - | - | (70) | (9) | | Foreign currency exchange difference | | | | | | | | | | | - | - | (1) | - | - | - | (1) | - | | Balance at end of year | | | | | | | | | | | 62 | 62 | 937 | 933 | - | - | 999 | 995 | | Cost | | | | | | | | | | 4 | | | | | | | | | | | 62 | 62 | 7,985 | 7,630 | 6 | 6 | 8,053 | 7,698 | | Accumulated amortisation | n/a | n/a | (7,048) | (6,697) | (6) | (6) | (7,054) | (6,703) | | Carrying amount | | | | | | | | | | | 62 | 62 | 937 | 933 | - | - | 999 | 995 | 1. Goodwill excludes notional goodwill in equity accounted investments. 2. The Group acquired Suncorp Bank during 2024 and provisionally accounted for the acquisition with the provisional goodwill balance of $1,402 million. The Group completed its purchase price allocation for the Suncorp Bank acquisition during 2025 and recognised a decrease to goodwill of $56 million and an increase to other intangibles of $685 million. Comparative information was not restated. 3. 2024 includes $36 million of accelerated amortisation expense from Suncorp Bank on alignment to the Group’s software capitalisation policy. 4. Includes impact of foreign currency translation differences. Impairment testing for cash generating units containing goodwill Goodwill acquired in a business combination is tested for impairment annually and whenever there are indicators of potential impairment. Goodwill is allocated at the date of acquisition to the cash generating unit (CGU) or group of CGUs that are expected to benefit from the synergies of the related business combination. Goodwill is considered to be impaired if the carrying amount of the relevant CGU exceeds its recoverable amount. We estimate the recoverable amount of each CGU to which goodwill is allocated using a fair value less costs of disposal (FVLCOD) approach, with a value-in-use (VIU) assessment performed where the FVLCOD is less than the carrying amount. Goodwill is allocated to the following CGUs based on the lowest level at which goodwill is monitored . | | | | | --- | --- | --- | | Cash generating units: | | | | | 2025 | | | | $m | | | | | 2024 | | | | $m | | Australia Retail | | | | | 100 | 100 | | Institutional | 1,193 | 1,245 | | New Zealand | | | | | 1,526 | 1,596 | | Suncorp Bank | | | | | 1,346 | 1,402 | 163 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 163 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 20. Goodwill and other intangible assets (continued) We estimate the FVLCOD of each CGU to which goodwill is allocated by applying observable price earnings multiples of comparable companies to the estimated future maintainable earnings of each CGU. A deduction is then made for estimated costs of disposal. The valuation is considered to be level 3 in the fair value hierarchy due to unobservable inputs used in the valuation. Management’s approach and the key assumptions used in determining FVLCOD are as follows: | | | | --- | --- | | Key assumption | Approach to determining the value (or values) for each key assumption | | Future maintainable earnings | Future maintainable earnings for each CGU is estimated as the sum of: | | | • | | | The Group’s 2026 financial plan for each CGU; and | | | • | | | An allocation of the central costs recorded outside of the CGUs to which goodwill is allocated. | | | Where relevant, adjustments are made to the Group’s financial plan to reflect the long-term expectations for items | | | such as expected credit losses. | | Price/Earnings (P/E) multiple | P/E multiples applicable to each CGU have been derived from a comparator group of publicly traded companies, | | | and include a 30% control premium, discussed below. | | | In the case of the New Zealand and Institutional CGUs, management has made downwards adjustments to P/E | | | multiples to address specific factors relevant to those CGUs. | | | A control premium has been applied which recognises the increased consideration a potential acquirer would be | | | willing to pay in order to gain sufficient ownership to achieve control over the relevant activities of the CGU. For each | | | CGU, the control premium has been estimated as 30% of the comparator group P/E multiple based on historical | | | transactions. | | Costs of disposal | Costs of disposal have been estimated as 2% of the fair value of the CGU based on those observed from historical | | | and recent transactions. | Our impairment testing did not result in the impairment of goodwill as at 30 September 2025. The FVLCOD estimates for each CGU are sensitive to assumptions about P/E multiples, future maintainable earnings and control premium (30%). However, each CGU would continue to show a surplus in recoverable amount over carrying amount even where other reasonably possible alternative estimates were used. 164 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 164 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 164 20. Goodwill and other intangible assets (continued) We estimate the FVLCOD of each CGU to which goodwill is allocated by applying observable price earnings multiples of comparable companies to the estimated future maintainable earnings of each CGU. A deduction is then made for estimated costs of disposal. The valuation is considered to be level 3 in the fair value hierarchy due to unobservable inputs used in the valuation. Management’s approach and the key assumptions used in determining FVLCOD are as follows: Key assumption Approach to determining the value (or values) for each key assumption Future maintainable earnings Future maintainable earnings for each CGU is estimated as the sum of: • The Group’s 2026 financial plan for each CGU; and • An allocation of the central costs recorded outside of the CGUs to which goodwill is allocated. Where relevant, adjustments are made to the Group’s financial plan to reflect the long-term expectations for items such as expected credit losses. Price/Earnings (P/E) multiple P/E multiples applicable to each CGU have been derived from a comparator group of publicly traded companies, and include a 30% control premium, discussed below. In the case of the New Zealand and Institutional CGUs, management has made downwards adjustments to P/E multiples to address specific factors relevant to those CGUs. A control premium has been applied which recognises the increased consideration a potential acquirer would be willing to pay in order to gain sufficient ownership to achieve control over the relevant activities of the CGU. For each CGU, the control premium has been estimated as 30% of the comparator group P/E multiple based on historical transactions. Costs of disposal Costs of disposal have been estimated as 2% of the fair value of the CGU based on those observed from historical and recent transactions. Our impairment testing did not result in the impairment of goodwill as at 30 September 2025. The FVLCOD estimates for each CGU are sensitive to assumptions about P/E multiples, future maintainable earnings and control premium (30%). However, each CGU would continue to show a surplus in recoverable amount over carrying amount even where other reasonably possible alternative estimates were used. 164 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 20. Goodwill and other intangible assets (continued) #### Recognition and measurement The table below details how we recognise and measure different intangible assets: | | | | | | --- | --- | --- | --- | | | Goodwill | Software | Other Intangibles | | Definition | Excess amount the Group has | | | | | paid in acquiring a business | | | | | over the fair value of the | | | | | identifiable assets acquired | | | | | and liabilities assumed. | | | | | | Purchased software owned by the Group is | | | | | capitalised. | | | | | Internal and external costs incurred in | | | | | building software and computer systems | | | | | costing greater than $20 million are | | | | | capitalised as assets. Those less than $20 | | | | | million are expensed in the year in which the | | | | | costs are incurred. | | | | | Costs incurred in planning or evaluating | | | | | software proposals or in maintaining | | | | | systems after implementation are | | | | | not capitalised. | | | | | | Management fee rights arising | | | | | from acquisition of funds | | | | | management business, core | | | | | deposit intangibles arising from | | | | | Suncorp Bank acquisition, and | | | | | other intangible assets arising from | | | | | contractual rights. | | Carrying value | Cost less any accumulated | | | | | impairment losses. | | | | | Allocated to the CGU to which | | | | | the acquisition relates. | | | | | | Initially, measured at cost or if acquired in a | | | | | business combination at the acquisition date | | | | | fair value. | | | | | Subsequently, carried at cost less | | | | | accumulated amortisation and impairment | | | | | losses. | | | | | | Initially, measured at fair value at | | | | | acquisition. | | | | | Subsequently, carried at cost less | | | | | accumulated amortisation and | | | | | impairment losses. | | Useful life | Indefinite. | | | | | Goodwill is reviewed for | | | | | impairment at least annually or | | | | | when there is an indication of | | | | | impairment. | | | | | | Except for major core infrastructure, | | | | | amortised over periods between | | | | | 2-5 years; however major core infrastructu | | | | | re | | | | | may be amortised over 7 years subject to | | | | | approval by the Audit Committee. | | | | | Purchased software is amortised over 2 | | | | | years unless it is considered integral to other | | | | | assets with a longer useful life. | | | | | | Management fee rights with an | | | | | indefinite life are reviewed for | | | | | impairment at least annually or | | | | | when there is an indication of | | | | | impairment. | | | | | Core deposits are amortised over | | | | | the expected life of 6 years. | | | | | Other intangible assets are | | | | | amortised over 3 years. | | Depreciation | | | | | method | | | | | | Not applicable. | Straight-line method. | Not applicable to indefinite life | | | | | intangible assets. Straight-line | | | | | method for assets with a finite life. | 165 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 165 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 20. Goodwill and other intangible assets (continued) #### Key judgements and estimates Management judgement is used to assess the recoverable value of goodwill and other intangible assets, and the useful economic life of an asset, or whether an asset has an indefinite life. We reassess the recoverability of the carrying value at each reporting date. Goodwill A number of ke y judgements are required in the determination of whether or not a goodwill balance is impaired including: • the level at which goodwill is allocated – consistent with prior periods the CGUs to which goodwill is allocated are the Group’s revenue generating segments that benefit from relevant historical business combinations generating goodwill. • determination of the carrying amount of each CGU which includes an allocation, on a reasonable and consistent basis, of corporate assets and liabilities that are not directly attributable to the CGUs to which goodwill is allocated. • assessment of the recoverable amount of each CGU including: o selection of the model used to determine the fair value – the Group has used the market multiple approach to estimate the fair value; and o selection of the key assumptions in respect of future maintainable earnings, the P/E multiple applied, including selection of an appropriate comparator group and determination of an appropriate control premium, and costs of disposal as described above. Software and other intangible assets At each reporting date, software and other intangible assets are assessed for indicators of impairment and, where such indicators are identified, an impairment test is performed. In the event that an asset’s carrying amount is determined to be greater than its recoverable amount, the carrying amount of the asset is written down immediately. Those assets not yet ready for use are tested for impairment annually. In addition, the expected useful lives of intangible assets are assessed at each reporting date. The assessment requires management judgement, and in relation to our software assets, a number of factors can influence the expected useful lives. These factors include changes to business strategy, significant divestments and the pace of technological change. 166 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 166 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 166 20. Goodwill and other intangible assets (continued) Management judgement is used to assess the recoverable value of goodwill and other intangible assets, and the useful economic life of an asset, or whether an asset has an indefinite life. We reassess the recoverability of the carrying value at each reporting date. Goodwill A number of ke y judgements are required in the determination of whether or not a goodwill balance is impaired including: • the level at which goodwill is allocated – consistent with prior periods the CGUs to which goodwill is allocated are the Group’s revenue generating segments that benefit from relevant historical business combinations generating goodwill. • determination of the carrying amount of each CGU which includes an allocation, on a reasonable and consistent basis, of corporate assets and liabilities that are not directly attributable to the CGUs to which goodwill is allocated. • assessment of the recoverable amount of each CGU including: o selection of the model used to determine the fair value – the Group has used the market multiple approach to estimate the fair value; and o selection of the key assumptions in respect of future maintainable earnings, the P/E multiple applied, including selection of an appropriate comparator group and determination of an appropriate control premium, and costs of disposal as described above. Software and other intangible assets At each reporting date, software and other intangible assets are assessed for indicators of impairment and, where such indicators are identified, an impairment test is performed. In the event that an asset’s carrying amount is determined to be greater than its recoverable amount, the carrying amount of the asset is written down immediately. Those assets not yet ready for use are tested for impairment annually. In addition, the expected useful lives of intangible assets are assessed at each reporting date. The assessment requires management judgement, and in relation to our software assets, a number of factors can influence the expected useful lives. These factors include changes to business strategy, significant divestments and the pace of technological change. #### Key judgements and estimates 166 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 21. Other provisions | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | ECL allowance on undrawn and contingent facilities | | | | | | 1 | | | | | | | 870 | 846 | 715 | 693 | | Customer remediation | 363 | 394 | 267 | 333 | | Restructuring costs | | | | | | | 620 | 80 | 462 | 70 | | Non-lending losses, frauds and forgeries | | | | | | | 451 | 90 | 366 | 77 | | Other | | | | | | | 175 | 174 | 149 | 146 | | Total other provisions | | | | | | | 2,479 | 1,584 | 1,959 | 1,319 | 1. Refer to Note 13 Allowance for expected credit losses for movement analysis. | | | | | | | --- | --- | --- | --- | --- | | | Customer | | | | | | remediation | | | | | | | Restructuring | | | | | | costs | | | | | | | Non-lending | | | | | | losses, frauds | | | | | | and forgeries | Other | | Consolidated | | | | | | | $m | $m | $m | $m | | Balance at 1 October 2024 | | | | | | | 394 | 80 | 90 | 174 | | New and increased provisions made during the year | 291 | 653 | 402 | 58 | | Provisions used during the year | | | | | | | (288) | (83) | (37) | (31) | | Unused amounts reversed during the year | | | | | | | (34) | (30) | (4) | (26) | | Balance at 30 September 2025 | | | | | | | 363 | 620 | 451 | 175 | | | | | | | | --- | --- | --- | --- | --- | | | Customer | | | | | | remediation | | | | | | | Restructuring | | | | | | costs | | | | | | | Non-lending | | | | | | losses, frauds | | | | | | and forgeries | Other | | The Company | | | | | | | $m | $m | $m | $m | | Balance at 1 October 2024 | | | | | | | 333 | 70 | 77 | 146 | | New and increased provisions made during the year | 240 | 493 | 290 | 53 | | Provisions used during the year | | | | | | | (274) | (72) | (1) | (26) | | Unused amounts reversed during the year | | | | | | | (32) | (29) | - | (24) | | Balance at 30 September 2025 | | | | | | | 267 | 462 | 366 | 149 | 167 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 167 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 21. Other provisions (continued) Customer remediation Customer remediation includes provisions for expected refunds to customers, remediation project costs and related customer and regulatory claims, penalties and litigation costs and outcomes. Restructuring costs Provisions for restructuring costs arise from activities related to changes in the scope of business undertaken by the Group or the manner in which that business is undertaken and include employee termination benefits. Costs relating to on-going activities are not provided for and are expensed as incurred. Non-lending losses, frauds and forgeries Non-lending losses include losses arising from certain legal actions and losses arising from forgeries, frauds and the correction of operational issues. The amounts recognised are the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties that surround the events and circumstances that affect the provision. Other Other provisions comprise various other provisions including workers compensation, make-good provisions associated with leased premises, warranties and indemnities provided in connection with various disposals of businesses and assets. #### Recognition and measurement The Group recognises provisions when there is a present obligation arising from a past event, an outfl ow of economic resources is probable, and the amount of the provision can be measured reliably. The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the timing and amount of the obligation. Where a provision is measured using the estimated cash flows required to settle the present obligation, its carrying amount is the present value of those cash flows . #### Key judgements and estimates The Group holds provisions for various obligations including cust omer remediation, restructuring costs, non-lending losses, frauds and forgeries and litigation related claims. These provisions involve judgements regarding the timing and outcome of future events, including estimates of expenditure required to satisfy such obligations. Where relevant, expert legal advice has been obtained and, in light of such advice, provisions and/or disclosures as deemed appropriate have been made. In relation to customer remediation, determining the amount of the provisions, which represent management’s best estimate of the cost of settling the identified matters, requires the exercise of significant judgement. It will often be necessary to form a view on a number of different assumptions, including the number of impacted customers, the average refund per customer, the associated remediation project costs, and the implications of regulatory exposures and customer claims having regard to their specific facts and circumstances. There is a heightened level of estimation uncertainty where the customer remediation provision relates to a legal proceeding or matter. The appropriateness of the underlying assumptions is reviewed on a regular basis against actual experience and other relevant evidence including expert legal advice, and adjustments are made to the provisions where appropriate. 168 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 168 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 168 21. Other provisions (continued) Customer remediation Customer remediation includes provisions for expected refunds to customers, remediation project costs and related customer and regulatory claims, penalties and litigation costs and outcomes. Restructuring costs Provisions for restructuring costs arise from activities related to changes in the scope of business undertaken by the Group or the manner in which that business is undertaken and include employee termination benefits. Costs relating to on-going activities are not provided for and are expensed as incurred. Non-lending losses, frauds and forgeries Non-lending losses include losses arising from certain legal actions and losses arising from forgeries, frauds and the correction of operational issues. The amounts recognised are the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties that surround the events and circumstances that affect the provision. Other Other provisions comprise various other provisions including workers compensation, make-good provisions associated with leased premises, warranties and indemnities provided in connection with various disposals of businesses and assets. The Group recognises provisions when there is a present obligation arising from a past event, an outflo w of economic resources is probable, and the amount of the provision can be measured reliably. The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the timing and amount of the obligation. Where a provision is measured using the estimated cash flows required to settle the present obligation, its carrying amount is the present value of those cash flows . The Group holds provisions for various obligations including cust omer remediation, restructuring costs, non-lending losses, frauds and forgeries and litigation related claims. These provisions involve judgements regarding the timing and outcome of future events, including estimates of expenditure required to satisfy such obligations. Where relevant, expert legal advice has been obtained and, in light of such advice, provisions and/or disclosures as deemed appropriate have been made. In relation to customer remediation, determining the amount of the provisions, which represent management’s best estimate of the cost of settling the identified matters, requires the exercise of significant judgement. It will often be necessary to form a view on a number of different assumptions, including the number of impacted customers, the average refund per customer, the associated remediation project costs, and the implications of regulatory exposures and customer claims having regard to their specific facts and circumstances. There is a heightened level of estimation uncertainty where the customer remediation provision relates to a legal proceeding or matter. The appropriateness of the underlying assumptions is reviewed on a regular basis against actual experience and other relevant evidence including expert legal advice, and adjustments are made to the provisions where appropriate. #### Recognition and measurement #### Key judgements and estimates 168 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 22. Shareholders’ equity Shareholders' equity | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Ordinary share capital | | | | | | | 27,053 | 27,065 | 26,976 | 26,988 | | Reserves | | | | | | Foreign currency translation reserve | | | | | | 1 | | | | | | | (941) | (360) | (134) | (341) | | Share option reserve | | | | | | | 104 | 105 | 104 | 105 | | FVOCI reserve | | | | | | | (690) | (979) | (708) | (937) | | Cash flow hedge reserve | | | | | | | 170 | (422) | 3 | (503) | | Transactions with non-controlling interests reserve | | | | | | | (22) | (22) | - | - | | Total reserves | | | | | | | (1,379) | (1,678) | (735) | (1,676) | | Retained earnings | 44,032 | 42,602 | 39,617 | 39,184 | | Share capital and reserves attributable to shareholders of the Company | | | | | | | 69,706 | 67,989 | 65,858 | 64,496 | | Non-controlling interests | 739 | 771 | - | - | | Total shareholders’ equity | | | | | | | 70,445 | 68,760 | 65,858 | 64,496 | 1. As a result of the closure of a number of international entities, the associated foreign currency translation reserve was recycled from Other comprehensive income to profit or loss, resulting in $15m gain recognised in Other operating income in 2025 (2024: $22 million gain). Ordinary share capital The table below details the movement in ordinary shares and share capital for the year . | | | | | | | --- | --- | --- | --- | --- | | | 2025 | | 2024 | | | Consolidated | | | | | | | Number of | | | | | | shares | | | | | | | $m | | | | | | | Number of | | | | | | shares | | | | | | | $m | | Balance at start of the year | 3,003,366,782 | 27,065 | 3,003,366,782 | 29,082 | | Employee share and option plans | - | (12) | - | (17) | | Capital return | | | | | | | | | | | | | - | - | - | (2,000) | | Balance at end of year | | | | | | | 3,003,366,782 | 27,053 | 3,003,366,782 | 27,065 | | | | | | | | --- | --- | --- | --- | --- | | | 2025 | | 2024 | | | The Company | | | | | | | Number of | | | | | | shares | | | | | | | $m | | | | | | | Number of | | | | | | shares | | | | | | | $m | | Balance at start of the year | 3,003,366,782 | 26,988 | 3,003,366,782 | 29,005 | | Employee share and option plans | - | (12) | - | (17) | | Capital return | | | | | | | | | | | | | - | - | - | (2,000) | | Balance at end of year | | | | | | | 3,003,366,782 | 26,976 | 3,003,366,782 | 26,988 | 169 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 169 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 22. Shareholders’ equity (continued) Non-controlling interests | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Profit attributabl | | | | | | | | e to | | | | | | | | non-controlling interests | | | | | | | | | | Equity attributable to | | | | | | | | non-controlling interests | | | | | | | | | | Dividend paid to | | | | | | | | non-controlling interests | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | Consolidated | | | | | | | | | $m | $m | $m | $m | $m | $m | | ANZ Bank New Zealand PPS | | | | | | | | 1 | | | | | | | | | 39 | 32 | 725 | 758 | 38 | 32 | | Other | 2 | 3 | 14 | 13 | - | - | | Total | | | | | | | | | 41 | 35 | 739 | 771 | 38 | 32 | 1. ANZ Bank New Zealand issued $256 million of perpetual preference shares in 2024 that are considered non-controlling interests to the Group. ANZ Bank New Zealand Preference Shares Perpetual Preference Shares (PPS) externally issued by ANZ Bank New Zealand Limited (ANZ Bank New Zealand), a member of the Group, are considered non-controlling interests of the Group. The key terms of the PPS are as follows: PPS dividends Holders of PPS are entitled to receive dividends that are discretionary, non-cumulative and subject to conditions. If a PPS dividend is not paid, there are certain restrictions on the ability of ANZ Bank New Zealand to pay a dividend on its ordinary shares. Holders of the PPS have no other rights participate in the profits or property of ANZ Bank New Zealand. Redemption features Holders of PPS have no right to require that the PPS be redeemed. ANZ Bank New Zealand may, at its option, redeem all of the PPS on an optional redemption date (being each scheduled quarterly dividend payment date from the first optional redemption date), or at any time following the occurrence of a tax event or regulatory event, subject to prior written approval of RBNZ and certain other conditions being met. 170 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 170 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 170 22. Shareholders’ equity (continued) Non-controlling interests Profit attributabl e to non-controlling interests Equity attributable to non-controlling interests Dividend paid to non-controlling interests 2025 2024 2025 2024 2025 2024 Consolidated $m $m $m $m $m $m ANZ Bank New Zealand PPS 1 39 32 725 758 38 32 Other 2 3 14 13 - - Total 41 35 739 771 38 32 1. ANZ Bank New Zealand issued $256 million of perpetual preference shares in 2024 that are considered non-controlling interests to the Group. ANZ Bank New Zealand Preference Shares Perpetual Preference Shares (PPS) externally issued by ANZ Bank New Zealand Limited (ANZ Bank New Zealand), a member of the Group, are considered non-controlling interests of the Group. The key terms of the PPS are as follows: PPS dividends Holders of PPS are entitled to receive dividends that are discretionary, non-cumulative and subject to conditions. If a PPS dividend is not paid, there are certain restrictions on the ability of ANZ Bank New Zealand to pay a dividend on its ordinary shares. Holders of the PPS have no other rights participate in the profits or property of ANZ Bank New Zealand. Redemption features Holders of PPS have no right to require that the PPS be redeemed. ANZ Bank New Zealand may, at its option, redeem all of the PPS on an optional redemption date (being each scheduled quarterly dividend payment date from the first optional redemption date), or at any time following the occurrence of a tax event or regulatory event, subject to prior written approval of RBNZ and certain other conditions being met. 170 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 22. Shareholders’ equity (continued) #### Recognition and measurement Ordinary shares Ordinary shares have no par value. They entitle holders to receive dividends, or proceeds available on winding up of the Company, in proportion to the number of fully paid ordinary shares held. They are recognised at the amount paid per ordinary share net of directly attributable costs. Every holder of fully paid ordinary shares present at a meeting of the Company in person, or by proxy, is entitled to: • on a show of hands, one vote; and • on a poll, one vote, for each share held. Reserves: Foreign currency translation reserve Includes differences arising on translation of assets and liabilities into Australian dollars when the functional currency of a foreign operation (including subsidiaries and branches) is not Australian dollars. In this reserve, we reflect any offsetting gains or losses on hedging these exposures, together with any tax effect. Cash flow hedge reserve Includes fair value gains and losses associated with the effective portion of designated cash flow hedging instruments together with any tax effect. FVOCI reserve Includes changes in the fair value of certain debt securities and equity securities included within Investment Securities together with any tax effect. In respect of debt securities classified as measured at FVOCI, the FVOCI reserve records accumulated changes in fair value arising subsequent to initial recognition, except for those relating to allowance for ECL, interest income and foreign currency exchange gains and losses which are recognised in profit or loss. As debt securities at FVOCI are recorded at fair value, the balance of the FVOCI reserve is net of the ECL allowance associated with such assets. When a debt security measured at FVOCI is derecognised, the cumulative gain or loss recognised in the FVOCI reserve in respect of that security is reclassified to profit or loss and presented in other operating income. In respect of the equity securities classified as measured at FVOCI, the FVOCI reserve records accumulated changes in fair value arising subsequent to initial recognition (including any related foreign exchange gains or losses). When an equity security measured at FVOCI is derecognised, the cumulative gain or loss recognised in the FVOCI reserve in respect of that security is not recycled to profit or loss. Share option reserve Includes amounts which arise on the recognition of share-based compensation expense. Transactions with non-controlling interests reserve Includes the impact of transactions with non-controlling shareholders in their capacity as shareholders. Non-controlling interests Share in the net assets of controlled entities attributable to equity interests which the Group does 171 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 171 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary not own directly or indirectly. ![]() 23. Capital management Capital management framework The Group’s capital management framework includes managing capital at Level 1 and Level 2. The Group’s framework includes managing to Board approved risk appetite settings and maintaining all regulatory requirements. APRA requirements at Level 1 and Level 2 include the Group operating at or above APRAs expectation for Domestic Systematically Important Banks (D-SIBs) following the implementation of APRA’s Capital Reform. All requirements were satisfied as at 30 September 2025. Capital management strategy The Group’s capital management strategy aims to protect the interests of depositors, creditors and shareholders. We achieve this through an Internal Capital Adequacy Assessment Process (ICAAP) whereby the Group conducts detailed strategic and capital planning over a 3-year time horizon. The process involves: • forecasting economic variables, financial performance of divisions and the financial impact of new strategic initiatives to be implemented during the planning period; • performing stress tests under different economic scenarios to determine the level of additional capital (stress capital buffer) needed to absorb losses that may be experienced under an economic downturn; • reviewing capital position and targets against the Group’s risk profile; and • developing a capital plan, taking into account capital ratio targets, ECM requirements, current and future capital issuances requirements and options around capital products, timing and markets to execute the capital plan under differing market and economic conditions. The capital plan is approved by the Board and updated as required. The Board and senior management are provided with regular updates of the Group’s capital position. Any material actions required to ensure ongoing prudent capital management are submitted to the Board for approval. Throughout the year, the Group maintained compliance with all the regulatory requirements related to Capital Adequacy in the jurisdictions in which it operates. 172 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 172 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 172 23. Capital management Capital management framework The Group’s capital management framework includes managing capital at Level 1 and Level 2. The Group’s framework includes managing to Board approved risk appetite settings and maintaining all regulatory requirements. APRA requirements at Level 1 and Level 2 include the Group operating at or above APRAs expectation for Domestic Systematically Important Banks (D-SIBs) following the implementation of APRA’s Capital Reform. All requirements were satisfied as at 30 September 2025. Capital management strategy The Group’s capital management strategy aims to protect the interests of depositors, creditors and shareholders. We achieve this through an Internal Capital Adequacy Assessment Process (ICAAP) whereby the Group conducts detailed strategic and capital planning over a 3-year time horizon. The process involves: • forecasting economic variables, financial performance of divisions and the financial impact of new strategic initiatives to be implemented during the planning period; • performing stress tests under different economic scenarios to determine the level of additional capital (stress capital buffer) needed to absorb losses that may be experienced under an economic downturn; • reviewing capital position and targets against the Group’s risk profile; and • developing a capital plan, taking into account capital ratio targets, ECM requirements, current and future capital issuances requirements and options around capital products, timing and markets to execute the capital plan under differing market and economic conditions. The capital plan is approved by the Board and updated as required. The Board and senior management are provided with regular updates of the Group’s capital position. Any material actions required to ensure ongoing prudent capital management are submitted to the Board for approval. Throughout the year, the Group maintained compliance with all the regulatory requirements related to Capital Adequacy in the jurisdictions in which it operates. 172 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 23. Capital management (continued) Regulatory environment Australia As the ANZ Bank Group is an ADI in Australia, it is primarily regulated by APRA under the Banking Act 1959 (Cth). ANZ Bank Group must comply with APRA’s minimum regulatory capital requirements, including prudential capital ratios and regulatory capital buffers at specific reporting levels that APRA sets and which are consistent with the global Basel III capital framework. This is the common framework for determining the appropriate level of bank regulatory capital as set by the Basel Committee on Banking Supervision. APRA minimum requirements are summarised below: Regulatory capital definition | | | | | | --- | --- | --- | --- | | Common Equity Tier 1 (CET1) Capital | | | | | | | | | | | ier 1 Capital | Tier 2 Capital | Total Capital | | Shareholders’ equity adjusted for specific | | | | | items. | | | | | | CET1 capital plus certain securities | | | | | | | | | | ith complying loss absorbing | | | | | characteristics known as Additional | | | | | | | | | | ier 1 Capital. | | | | | | Subordinated debt instruments which | | | | | have a minimum term of 5 years at issue | | | | | date. | | | | | | | | | | | ier 1 plus Tier 2 capital. | | | | | | | PRA Minimum Regulatory Capital Requirements | | | | | CET1 Ratio | | | | | | | | | | | ier 1 Ratio | Total Capital Ratio | | | CET1 capital divided by total risk weighted | | | | | assets which includes a prudential capital ratio | | | | | of at least 4.5% and 10.25% inclusive of | | | | | regulatory buffers. | | | | | | | | | | | ier 1 capital divided by total risk | | | | | | | | | | eighted assets which includes a | | | | | prudential capital ratio of at least | | | | | 6.0% and 11.75% inclusive of | | | | | regulatory buffers. | | | | | | | | | | | otal capital divided by total risk | | | | | | | | | | eighted assets which includes a | | | | | prudential capital ratio of at least 8.0% | | | | | and 16.75% inclusive of regulatory | | | | | buffers (including an additional 3% of | | | | | additional TLAC for D-SIBs). Refer below | | | | | | | | | | or details. | | | Reporting Levels | | | | | Level 1 | Level 2 | Level 3 | | | | | | | | he ADI on a stand-alone basis (that is | | | | | | | | | | NZBGL and specified subsidiaries which are | | | | | consolidated to form the ADI’s Extended | | | | | Licensed Entity). | | | | | | | | | | | he consolidated Group less certain | | | | | subsidiaries and associates that are | | | | | excluded under prudential standards. | | | | | | | | | | | conglomerate ANZGHL Group at the widest level. | | As at 30 September 2025, APRA requires the ADI to hold additional CET1 regulatory buffers as follows: • a capital conservation buffer (CCB) of 4.75% which is inclusive of the additional 1% surcharge for D-SIBs. APRA has determined that ANZ is a D-SIB. • a countercyclical capital buffer which is set on a jurisdictional basis. The requirement is currently set at 1% for Australia. Additionally in December 2021, APRA announced final Total Loss Absorbing Capacity (TLAC) requirements that require all D-SIBs, including the ANZ Bank Group, to increase its minimum total capital ratio requirement by 3% of RWA from January 2024, and a further 1.5% of RWA by January 2026 (total increase of 4.5%, resulting in a Total Capital ratio requirement inclusive of regulatory buffers of 18.25% from January 2026). APRA expects this to be predominantly met by Tier 2 capital, with an equivalent decrease in other senior funding. The Group is on track to meet these requirements as at reporting date. In December 2024, APRA confirmed that it will phase out the use of AT1 capital instruments to simplify and improve the effectiveness of bank capital in a crisis. In July 2025, APRA subsequently released a consultation paper on related technical amendments to its bank prudential framework to effect the removal of AT1 capital instruments and address impacts stemming from their removal. The changes are scheduled to come into effect from January 2027 with the main change being replacing the current requirement for 1.5% of AT1 with 0.25% of CET1 capital and 1.25% of Tier 2 capital. APRA intends to finalise amendments to its framework before the end of 2025. Insurance and funds management As required by APRA’s Prudential Standards, insurance and funds management activities are: • de-consolidated for the purposes of calculating capital adequacy; and • excluded from the risk-based capital adequacy framework. We deduct the investment in these controlled entities 100% from CET1 capital, and if we include any profits from these activities in the ANZ Bank Group’s results, then we exclude them from the determination of CET1 capital to the extent they have not been remitted. Outside Australia In addition to APRA, the Group’s branch operations and major banking subsidiary operations are also overseen by local regulators such as the Reserve Bank of New Zealand, the US Federal Reserve, the UK Prudential Regulation Authority, the Monetary Authority of Singapore, the Hong Kong Monetary Authority and the China Banking and Insurance Regulatory Commission. They may impose minimum capital levels on operations in their individual jurisdictions. 173 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 173 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 23. Capital management #### (continued) ANZ Bank Group 1 The following table provides details of ANZ Bank Group’s capital adequacy ratios at 30 September: | | | | | --- | --- | --- | | | Consolidated | | | | 2025 | 2024 | | | $m | $m | | Qualifying capital | | | | Tier 1 | | | | Shareholders' equity and non-controlling interests | 70,445 | 68,760 | | Prudential adjustments to shareholders' equity | | | | | (436) | (721) | | Gross Common Equity Tier 1 capital | | | | | 70,009 | 68,039 | | Deductions | (14,825) | (13,570) | | Common Equity Tier 1 capital | | | | | 55,184 | 54,469 | | Additional Tier 1 capital | | | | 2 | | | | | 7,357 | 8,207 | | Tier 1 capital | | | | | 62,541 | 62,676 | | Tier 2 capital | | | | 3 | | | | | 33,810 | 29,189 | | Total qualifying capital | | | | | 96,351 | 91,865 | | Capital adequacy ratios (Level 2) | | | | Common Equity Tier 1 | 12.0% | 12.2% | | Tier 1 | | | | | 13.6% | 14.0% | | Tier 2 | | | | | 7.4% | 6.5% | | Total capital ratio | | | | | 21.0% | 20.6% | | Risk weighted assets | | | | | 458,547 | 446,582 | 1. This information is not within the scope of the external audit of the Group Financial Report by the Group’s external auditor, KPMG. The information presented in this table is a regulatory requirement disclosed in Part A of ARF 110 Capital Adequacy which will be subject to audit in accordance with Prudential Standard APS 310 Audit and Related Matters. 2. This includes Additional Tier 1 capital of $7,452 million (2024: $8,277 million) (refer to Note 16 Debt issuances) and a regulatory adjustments and deductions of -$95 million (2024: -$70 million). 3. This includes Tier 2 capital of $33,811 million (2024: 28,584 million) (refer to Note 16 Debt issuances), a general reserve for impairment of financial assets of $1,710 million (2024: $1,711 million) and regulatory adjustments and deductions of -$1,711 million (2024: -$1,107 million). 174 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 174 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 174 23. Capital management (continued) ANZ Bank Group 1 The following table provides details of ANZ Bank Group’s capital adequacy ratios at 30 September: Consolidated 2025 2024 $m $m Qualifying capital Tier 1 Shareholders' equity and non-controlling interests 70,445 68,760 Prudential adjustments to shareholders' equity (436) (721) Gross Common Equity Tier 1 capital 70,009 68,039 Deductions (14,825) (13,570) Common Equity Tier 1 capital 55,184 54,469 Additional Tier 1 capital 2 7,357 8,207 Tier 1 capital 62,541 62,676 Tier 2 capital 3 33,810 29,189 Total qualifying capital 96,351 91,865 Capital adequacy ratios (Level 2) Common Equity Tier 1 12.0% 12.2% Tier 1 13.6% 14.0% Tier 2 7.4% 6.5% Total capital ratio 21.0% 20.6% Risk weighted assets 458,547 446,582 1. This information is not within the scope of the external audit of the Group Financial Report by the Group’s external auditor, KPMG. The information presented in this table is a regulatory requirement disclosed in Part A of ARF 110 Capital Adequacy which will be subject to audit in accordance with Prudential Standard APS 310 Audit and Related Matters. 2. This includes Additional Tier 1 capital of $7,452 million (2024: $8,277 million) (refer to Note 16 Debt issuances) and a regulatory adjustments and deductions of -$95 million (2024: -$70 million). 3. This includes Tier 2 capital of $33,811 million (2024: 28,584 million) (refer to Note 16 Debt issuances), a general reserve for impairment of financial assets of $1,710 million (2024: $1,711 million) and regulatory adjustments and deductions of -$1,711 million (2024: -$1,107 million). 174 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 24. Controlled entities | | | | | --- | --- | --- | | The ultimate parent of the Group is ANZ Group Holdings Limited | | | | | Incorporated in | | | | Australia | | | | | Nature of Business | | | | Holding Company | | The Group holds 100% of the voting interests in all controlled entities, unless noted otherwise. | | | | The material controlled entities of the Group are: | | | | Australia and New Zealand Banking Group Limited | Australia | Banking | | SBGH Limited | Australia | Holding Company | | Norfina Limited | Australia | Banking | | SME Management Pty Limited | Australia | Banking | | Norfina Covered Bond Trust | Australia | Finance | | ANZ Bank (Vietnam) Limited | | | | 1 | | | | | Vietnam | Banking | | ANZ Funds Pty. Ltd. | Australia | Holding Company | | ANZ Bank (Kiribati) Limited | | | | 1 | | | | (75% ownership) | Kiribati | Banking | | ANZ Bank (Samoa) Limited | | | | 1 | | | | | Samoa | Banking | | ANZ Bank (Vanuatu) Limited | | | | 2 | | | | | Vanuatu | Banking | | ANZ Holdings (New Zealand) Limited | | | | 1 | | | | | New Zealand | Holding Company | | ANZ Bank New Zealand Limited | | | | 1 | | | | | New Zealand | Banking | | ANZ Investment Services (New Zealand) Limited | | | | 1 | | | | | New Zealand | Funds Management | | ANZ New Zealand (Int’l) Limited | | | | 1 | | | | | New Zealand | Finance | | ANZ New Zealand Investments Holdings Limited | | | | 1 | | | | | New Zealand | Holding Company | | ANZ New Zealand Investments Limited | | | | 1 | | | | | New Zealand | Funds Management | | ANZNZ Covered Bond Trust | | | | 1,3 | | | | | New Zealand | Finance | | ANZ International Private Limited | | | | 1 | | | | | Singapore | Holding Company | | ANZcover Insurance Private Ltd | | | | 1 | | | | | Singapore | Captive-Insurance | | ANZ Lenders Mortgage Insurance Pty. Limited | Australia | Mortgage Insurance | | ANZ Residential Covered Bond Trust | | | | 3 | | | | | Australia | Finance | | Australia and New Zealand Bank (China) Company Limited | | | | 1 | | | | | China | Banking | | Australia and New Zealand Banking Group (PNG) Limited | | | | 1 | | | | | Papua New Guinea | Banking | | Institutional Securitisation Services Limited | Australia | Securitisation Manager | | PT Bank ANZ Indonesia | | | | 1 | | | | (99% ownership) | Indonesia | Banking | 1. Audited by overseas KPMG firms — either as part of the Group audit, or for standalone financial statements as required. 2. Audited by Law Partners. 3. Not owned by the Group. Control exists as the Group retains substantially all the risks and rewards of the operations. Changes to material controlled entities Citizens Bancorp and ANZ Guam Inc. were officially deregistered on 14 May 2025. Significant restrictions Controlled entities that are subject to prudential regulation may be required to maintain minimum capital or other regulatory requirements which may, from time to time, limit the entity’s ability to transfer assets, pay dividends or make other capital distributions to the parent entity or to other entities in the Group. The Group manages such restrictions within our risk management framework, as outlined in Note 17 Financial risk management and our capital management strategy, as outlined in Note 23 Capital management. As at 30 September 2025, restrictions on the ability of an entity within the Group to transfer assets, pay dividends or make other capital distributions to other entities in the Group were not material to the liquidity or capital management of the Group. 175 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 175 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 24. Controlled entities (continued) #### Recognition and measurement The Group’s subsidiaries are those entities it controls through: • being exposed to, or having rights to, variable returns from the entity; and • being able to affect those returns through its power over the entity. The Group assesses whether it has power over those entities by examining the Group’s existing rights to direct the relevant activities of the entity. If the Group sells or acquires subsidiaries during the year, it includes their operating results in the Group results up to the date of disposal or from the date of acquisition. When the Group’s control ceases, it derecognises the assets and liabilities of the subsidiary, any related non- controlling interest and other components of equity. If the Group’s ownership interest in a subsidiary changes in a way that does not result in a loss of control, then the Group accounts for that as a transaction with equity holders in their capacity as equity holders. All transactions between Group entities are eliminated on consolidation. 176 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 176 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 176 24. Controlled entities (continued) The Group’s subsidiaries are those entities it controls through: • being exposed to, or having rights to, variable returns from the entity; and • being able to affect those returns through its power over the entity. The Group assesses whether it has power over those entities by examining the Group’s existing rights to direct the relevant activities of the entity. If the Group sells or acquires subsidiaries during the year, it includes their operating results in the Group results up to the date of disposal or from the date of acquisition. When the Group’s control ceases, it derecognises the assets and liabilities of the subsidiary, any related non- controlling interest and other components of equity. If the Group’s ownership interest in a subsidiary changes in a way that does not result in a loss of control, then the Group accounts for that as a transaction with equity holders in their capacity as equity holders. All transactions between Group entities are eliminated on consolidation. #### Recognition and measurement 176 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 25. Investment in associates Significant associates of the Group are: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | Ordinary share | | | | | | | interest | | | | | | | | | Carrying | | | | | | | amount $m | | | Nam | | | | | | | e of entity | Principal activity | | | | | | | | 2025 | 2024 | 2025 | 2024 | | PT Bank Pan Indonesia Tbk (PT Panin) | Consumer and business bank | 39% | 39% | 1,140 | 1,415 | | Total carrying value of associates | | | | | | | 1 | | | | | | | | | | | 1,140 | 1,415 | 1. Includes the impact of foreign currency translation recognised in the foreign currency translation reserve. Financial information on significant associates Summarised financial information of PT Panin is presented in the table below. The summarised financial information is based on the associates’ IFRS financial information and may require the use of unaudited financial information as PT Panin has a 31 December financial year end. | | | | --- | --- | | | PT Bank Pan | | | Indonesia Tbk | | Principal place of business and country of incorporation | Indonesia | | | | | | --- | --- | --- | | | 2025 | 2024 | | | $m | $m | | Summarised results | | | | Operating income | 1,080 | 1,062 | | Profit/(Loss) for the year | | | | | 283 | 218 | | Other comprehensive income/(loss) | 76 | (41) | | Total comprehensive income/(loss) | | | | | 359 | 177 | | Less: Total comprehensive (income)/loss attributable to non–controlling interests | (10) | (19) | | Total comprehensive income/(loss) attributable to owners of associate | | | | | 349 | 158 | | Summarised financial position | | | | Total assets | | | | 1 | | | | | 19,708 | 20,616 | | Total liabilities | | | | 1 | | | | | 16,697 | 16,078 | | Total net assets | | | | 1 | | | | | 3,011 | 4,538 | | Less: Non-controlling interests of associate | (336) | (353) | | Net assets attributable to owners of associate | | | | | 2,675 | 4,185 | | Reconciliation to carrying amount of Group's interest in associate | | | | Carrying amount at the beginning of the year | 1,415 | 1,440 | | Group's share of total comprehensive income/(loss) | | | | | 118 | 42 | | Dividends received from associate | | | | | (37) | - | | Foreign currency translation reserve adjustments | | | | | (71) | (67) | | Impairment charges | | | | 2 | | | | | (285) | - | | Carrying amount at the end of the year | | | | | 1,140 | 1,415 | | Market value of Group's investment in associate | | | | 3 | | | | | 917 | 1,448 | 1. Includes market value adjustments (including goodwill) the Group made at the time of acquisition (and adjustments for any differences in accounting policies). 2. The Group recorded an impairment charge of $285 million in other operating income based on impairment assessments performed during 2025. 3. Market value is based on a price per share at reporting date and does not include any adjustments for the size of our holding. 177 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 177 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 25. Investment in associates (continued) Impairment assessment The Group assesses the carrying value of its investment in associates for impairment indicators. During the year, the Group identified an indicator of impairment as neither the market value of the investment in PT Panin (based on share price) nor the value-in-use (VIU) calculation supported the carrying value of the investment. Accordingly, the Group recorded an impairment charge of $285 million to bring the carrying value of the investment to its recoverable amount based on the outcome of the VIU calculation. The impairment is recognised in the Group Centre division. #### Recognition and measurement An associate is an entity for which the Group has significant influence over its operati ng and financial policies but which it does not control. The Group accounts for associates using the equity method. Its investments in associates are carried at cost plus the post-acquisition share of changes in the associate’s net assets less accumulated impairments. Dividends the Group receives from associates are recognised as a reduction in the carrying amount of the investment. The Group includes goodwill recognised by the associate in the carrying amount of the investment. It does not individually test the goodwill incorporated in the associates carrying amount for impairment. At least at each reporting date, the Group reviews investments in associates for any indication of impairment. If an indication of impairment exists, then the Group determines the recoverable amount of the associate using the higher of: • the associate’s fair value less cost of disposal; and • its VIU. We use a discounted cash flow methodology, and when applicable, other methodologies (such as capitalisation of earnings methodology), to determine the recoverable amount when determining a VIU. #### Key judgements and estimates Significant management judgment is required to determine the key assumptions underpinning the VIU calculation for PT Panin. Factors that may change in subsequent periods and lead to potential future impairments, or reversals of prior impairments, include changes in forecast earnings levels in the near and medium term and/or changes in the long-term growth forecasts, changes to required levels of regulatory capital and the post-tax discount rate arising from changes in the risk premium or risk-free rates. The key assumptions used in the VIU calculation are outlined below: A A s s a a t t 3 3 0 0 S S e e p p t t e e m m b b e e r r 2 2 0 0 2 2 5 5 P P T T P P a a n n i i n n | | | | --- | --- | | Post-tax discount rate | | | Terminal growth rate | | | Expected earnings growth (compound annual growth rate – 5 years) | | | Common Equity Tier 1 ratio (5-year average) | | | | 13.7% | | | 5.1% | | | 7.7% | | | 12.8% | The VIU calculations are sensitive to changes in the underlying assumptions with reasonably possible changes in key assumptions having a positive or negative impact on the VIU outcome, and as such the recoverable amount of the investment. • A change in the September 2025 post-tax discount rate by +/- 50bps would impact the VIU outcome for PT Panin by $(62 million)/$55 million; • A change in the September 2025 terminal growth rate by +/- 25bps would impact the VIU outcome for PT Panin by $32 million/($20 million). 178 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 178 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 178 25. Investment in associates (continued) Impairment assessment The Group assesses the carrying value of its investment in associates for impairment indicators. During the year, the Group identified an indicator of impairment as neither the market value of the investment in PT Panin (based on share price) nor the value-in-use (VIU) calculation supported the carrying value of the investment. Accordingly, the Group recorded an impairment charge of $285 million to bring the carrying value of the investment to its recoverable amount based on the outcome of the VIU calculation. The impairment is recognised in the Group Centre division. An associate is an entity for which the Group has significant influence over its operati ng and financial policies but which it does not control. The Group accounts for associates using the equity method. Its investments in associates are carried at cost plus the post-acquisition share of changes in the associate’s net assets less accumulated impairments. Dividends the Group receives from associates are recognised as a reduction in the carrying amount of the investment. The Group includes goodwill recognised by the associate in the carrying amount of the investment. It does not individually test the goodwill incorporated in the associates carrying amount for impairment. At least at each reporting date, the Group reviews investments in associates for any indication of impairment. If an indication of impairment exists, then the Group determines the recoverable amount of the associate using the higher of: • the associate’s fair value less cost of disposal; and • its VIU. We use a discounted cash flow methodology, and when applicable, other methodologies (such as capitalisation of earnings methodology), to determine the recoverable amount when determining a VIU. Significant management judgment is required to determine the key assumptions underpinning the VIU calculation for PT Panin. Factors that may change in subsequent periods and lead to potential future impairments, or reversals of prior impairments, include changes in forecast earnings levels in the near and medium term and/or changes in the long-term growth forecasts, changes to required levels of regulatory capital and the post-tax discount rate arising from changes in the risk premium or risk-free rates. The key assumptions used in the VIU calculation are outlined below: A A s s a a t t 3 3 0 0 S S e e p p t t e e m m b b e e r r 2 2 0 0 2 2 5 5 P P T T P P a a n n i i n n Post-tax discount rate Terminalgrowthrate Expected earnings growth (compound annual growth rate – 5 years) Common Equity Tier 1 ratio (5-year average) 13.7% 5.1% 7.7% 12.8% The VIU calculations are sensitive to changes in the underlying assumptions with reasonably possible changes in key a ssumptions having a positive or negative impact on the VIU outcome, and as such the recoverable amount of the investment. • A change in the September 2025 post-tax discount rate by +/- 50bps would impact the VIU outcome for PT Panin by $(62 million)/$55 million; • A change in the September 2025 terminal growth rate by +/- 25bps would impact the VIU outcome for PT Panin by $32 million/($20 million). #### Key judgements and estimates #### Recognition and measurement 178 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 26. Structured entities A Structured Entity (SE) is an entity that has been designed such that voting or similar rights are not the dominant factor in determining who controls the entity. SEs are generally established with restrictions on their ongoing activities in order to achieve narrow and well-defined objectives. SEs are classified as subsidiaries and consolidated when control exists. If the Group does not control an SE, then it is not consolidated. This note provides information on both consolidated and unconsolidated SEs. The Group’s involvement with SEs is as follows: | | | | --- | --- | | Type | Details | | Securitisation | The Group establishes SEs to securitise customer loans and advances that it has originated, in order to diversify | | | sources of funding for liquidity management. Securitisation programs include customer loans and advances | | | assigned to bankruptcy remote SEs to provide either security for obligations payable on notes issued by the SEs | | | to external investors or create assets held by the Group eligible for repurchase agreements with applicable central | | | banks. | | | The Group retains control over these SEs and therefore they are consolidated. Refer to Note 27 Assets pledged, | | | collateral accepted, and financial assets transferred for further details. | | | The Group also establishes SEs on behalf of customers to securitise their loans or receivables. The Group may | | | manage these securitisation vehicles or provide liquidity or other support. Additionally, the Group may acquire | | | interests in securitisation vehicles set up by third parties through holding securities issued by such entities. In | | | limited circumstances where control exists, the Group consolidates the SE. | | Covered bond issuances | Certain loans and advances have been assigned to bankruptcy remote SEs to provide security for issuances of | | | debt securities by the Group. The Group retains | control over these SEs and therefore they are consolidated. Refer | | | to Note 27 Assets pledged, collateral accepted | , and financial assets transferred for further details. | | | Structured finance arrangements | The Group is involved with SEs established: | | | • in connection with structured lending transactions to facilitate debt syndication and/or to ring-fence collateral; | | | and | | | • to own assets that are leased to customers in structured leasing transactions. | | | The Group may manage the SE, hold minor amounts of the SE’s capital, or provide risk management products | | | (derivatives) to the SE. In most instances, the Group does not control these SEs. In limited circumstances where | | | control exists, the Group consolidates the SE. | | Funds management activities | The Group is the scheme manager for a number of Managed Investment Schemes (MIS) in New Zealand. These | | | MIS are financed through the issue of units to investors and the Group considers them to be SEs. The Group’s | | | interests in these MIS are limited to receiving fees for services or providing risk management products | | | (derivatives). These interests do not create significant exposures that would allow the Group to control the funds. | | | Therefore, these MIS are not consolidated. | Consolidated structured entities Financial or other support provided to consolidated structured entities The Group provides financial support to consolidated SEs as outlined below. Securitisation and covered bond issuances The Group provides lending facilities, derivatives and commitments to these SEs and/or holds debt instruments hey have issued. Structured finance arrangements The assets held by these SEs are normally pledged as collateral for financing provided. Certain consolidated SEs are financed entirely by the Group while others are financed by syndicated loan facilities in which the Group is a participant. The financing provided by the Group includes lending facilities where the Group’s exposure is limited to he amount of the loan and any undrawn amount. Additionally, the Group has provided Letters of Support to these consolidated SEs confirming that the Group will not demand repayment of the financing provided for the ensuing 12-month period. The Group did not provide any non-contractual support to consolidated SEs during the year (2024: nil). Other than as disclosed above, the Group does not have any current intention to provide financial or other support to consolidated SEs. 179 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 179 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 26. Structured entities (continued) Unconsolidated structured entities Group’s interest in unconsolidated structured entities An ‘interest’ in an unconsolidated SE is any form of contractual or non-contractual involvement with an SE that exposes the Group to variability of returns from the performance of that SE. These interests include, but are not limited to: holdings of debt or equity securities; derivatives that pass-on risks specific to the performance of the SE, lending, loan commitments, financial guarantees, and fees from funds management activities. For the purpose of disclosing interests in unconsolidated SEs: • no disclosure is made if the Group’s involvement is not more than a passive interest - for example: when the Group’s involvement constitutes a typical customer-supplier relationship. On this basis, exposures to unconsolidated SEs that arise from lending, trading and investing activities are not considered disclosable interests - unless the design of the structured entity allows the Group to participate in decisions about the relevant activities (being those that significantly affect the entity’s returns). • ‘interests’ do not include derivatives intended to expose the Group to market-risk (rather than performance risk specific to the SE) or derivatives through which the Group creates, rather than absorbs, variability of the unconsolidated SE (such as purchase of credit protection under a credit default swap). The table below sets out the Group’s interests in unconsolidated SEs together with the maximum exposure to loss that could arise from those interests: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Securitisation | | Structured finance | | Total | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | $m | $m | | On-balance sheet interests | | | | | | | | Investment securities | 1,438 | 1,819 | - | - | 1,438 | 1,819 | | Gross loans and advances | | | | | | | | | 12,008 | 11,447 | 48 | 23 | 12,056 | 11,470 | | Total on-balance sheet | | | | | | | | | 13,446 | 13,266 | 48 | 23 | 13,494 | 13,289 | | Off-balance sheet interests | | | | | | | | Commitments (facilities undrawn) | 2,335 | 2,279 | - | - | 2,335 | 2,279 | | Guarantees | | | | | | | | | 50 | 50 | - | - | 50 | 50 | | Total off-balance sheet | | | | | | | | | 2,385 | 2,329 | - | - | 2,385 | 2,329 | | Maximum exposure to loss | 15,831 | 15,595 | 48 | 23 | 15,879 | 15,618 | In addition to the interests above, the Group earned funds management fees from unconsolidated investment funds of $188 million (2024: $184 million) during the year. The Group’s maximum exposure to loss represents the maximum amount of loss that the Group could incur as a result of its involvement with unconsolidated SEs if loss events were to take place - regardless of the probability of occurrence. This does not in any way represent the actual losses expected to be incurred. Furthermore, the maximum exposure to loss is stated gross of the effects of hedging and collateral arrangements entered into to mitigate the Group’s exposure to loss. The maximum exposure to loss has been determined as: • the carrying amount of Investment securities measured at amortised cost; and • the carrying amount plus the undrawn amount of any committed loans and advances. The size of unconsolidated SEs is indicated by total assets which vary by SE with the largest single SE having a value of approximately $4.8 billion. The Group did not provide any non-contractual support to unconsolidated SEs during the year (2024: nil) nor does it have any current intention to provide financial or other support to unconsolidated SEs. 180 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 180 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 180 26. Structured entities (continued) Unconsolidated structured entities Group’s interest in unconsolidated structured entities An ‘interest’ in an unconsolidated SE is any form of contractual or non-contractual involvement with an SE that exposes the Group to variability of returns from the performance of that SE. These interests include, but are not limited to: holdings of debt or equity securities; derivatives that pass-on risks specific to the performance of the SE, lending, loan commitments, financial guarantees, and fees from funds management activities. For the purpose of disclosing interests in unconsolidated SEs: • no disclosure is made if the Group’s involvement is not more than a passive interest - for example: when the Group’s involvement constitutes a typical customer-supplier relationship. On this basis, exposures to unconsolidated SEs that arise from lending, trading and investing activities are not considered disclosable interests - unless the design of the structured entity allows the Group to participate in decisions about the relevant activities (being those that significantly affect the entity’s returns). • ‘interests’ do not include derivatives intended to expose the Group to market-risk (rather than performance risk specific to the SE) or derivatives through which the Group creates, rather than absorbs, variability of the unconsolidated SE (such as purchase of credit protection under a credit default swap). The table below sets out the Group’s interests in unconsolidated SEs together with the maximum exposure to loss that could arise from those interests: Securitisation Structured finance Total 2025 2024 2025 2024 2025 2024 $m $m $m $m $m $m On-balance sheet interests Investment securities 1,438 1,819 - - 1,438 1,819 Gross loans and advances 12,008 11,447 48 23 12,056 11,470 Total on-balance sheet 13,446 13,266 48 23 13,494 13,289 Off-balance sheet interests Commitments (facilities undrawn) 2,335 2,279 - - 2,335 2,279 Guarantees 50 50 - - 50 50 Total off-balance sheet 2,385 2,329 - - 2,385 2,329 Maximum exposure to loss 15,831 15,595 48 23 15,879 15,618 In addition to the interests above, the Group earned funds management fees from unconsolidated investment funds of $188 million (2024: $184 million) during the year. The Group’s maximum exposure to loss represents the maximum amount of loss that the Group could incur as a result of its involvement with unconsolidated SEs if loss events were to take place - regardless of the probability of occurrence. This does not in any way represent the actual losses expected to be incurred. Furthermore, the maximum exposure to loss is stated gross of the effects of hedging and collateral arrangements entered into to mitigate the Group’s exposure to loss. The maximum exposure to loss has been determined as: • the carrying amount of Investment securities measured at amortised cost; and • the carrying amount plus the undrawn amount of any committed loans and advances. The size of unconsolidated SEs is indicated by total assets which vary by SE with the largest single SE having a value of approximately $4.8 billion. The Group did not provide any non-contractual support to unconsolidated SEs during the year (2024: nil) nor does it have any current intention to provide financial or other support to unconsolidated SEs. 180 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 26. Structured entities (continued) Sponsored unconsolidated structured entities The Group may also sponsor unconsolidated SEs in which it has no disclosable interest. For the purposes of this disclosure, the Group considers itself the ‘sponsor’ of an unconsolidated SE if it is the primary party involved in the design and establishment of that SE and: • the Group is the major user of that SE; or • the Group’s name appears in the name of that SE, or on its products; or • the Group provides implicit or explicit guarantees of that SE’s performance. The Group has sponsored the ANZ PIE Fund in New Zealand, which invests only in deposits with ANZ Bank New Zealand. The Group does not provide any implicit or explicit guarantees of the capital value or performance of investments in the ANZ PIE Fund. There was no income received from, nor assets transferred to, this entity during the year. #### Key judgements and estimates Significant judgement is required in assessing whether the Group has control over Structured Entities. Judgement is required to determine the existence of: • power over the relevant activities (being those that significantly affect the entity’s returns); • exposure to variable returns of the entity; and • the ability to use its power over the entity to affect the Group’s returns. 181 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 181 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 27. Assets pledged, collateral accepted, and financial assets transferred Amounts presented as collateral paid and received in the Balance Sheet relate to derivative liabilities and derivative assets respectively. The terms and conditions of those collateral agreements are included in the standard Credit Support Annex that forms part of the International Swaps and Derivatives Association Master Agreement under which most of the Group’s derivatives are executed. The following disclosures exclude these balances. In the normal course of business the Group enters into transactions where it pledges or transfers financial assets directly to third parties or to SEs. These transfers may result in the Group fully, or partially, derecognising those financial assets - depending on the Group’s exposure to the risks and rewards or control over the transferred assets. If the Group retains substantially all of the risks and rewards of a transferred asset, the transfer does not qualify for derecognition and the asset remains on the Group’s balance sheet in its entirety, with a corresponding liability recognised for proceeds from the transfer. Securitisations Net loans and advances include residential mortgages securitised under the Group’s securitisation programs which are assigned to bankruptcy remote SEs to provide security for obligations payable on the notes issued by the SEs. The holders of the issued notes have full recourse to the pool of residential mortgages which have been securitised and the Group cannot otherwise pledge or dispose of the transferred assets. In some instances, the Group is also the holder of the securitised notes issued by the SEs. In addition, the Group is entitled to any residual income of the SEs and sometimes enters into derivatives with the SEs. The Group retains the risks and rewards of the residential mortgages and continues to recognise the mortgages as financial assets and recognises an associated liability for the externally issued notes. The securitised notes issued externally are included within debt issuances. The Group is exposed to variable returns from its involvement with these securitisation SEs and has the ability to affect those returns through its power over the SEs activities. The SEs are therefore consolidated by the Group. Covered bonds The Group operates various global covered bond programs to raise funding in its primary markets. Net loans and advances include residential mortgages assigned to bankruptcy remote SEs associated with these covered bond programs. In respect of each program, a covered bond guarantor has guaranteed payments of interest and principal pursuant to a guarantee which is secured over its assets, including these residential mortgages. Substantially all of the assets of each covered bond guarantor consist of that covered bond guarantor’s equitable interests in mortgage loans secured by residential real estate. The covered bond holders have dual recourse to the issuer and the cover pool of assets. The issuer cannot otherwise pledge or dispose of the transferred assets, however, subject to legal arrangements it may repurchase and substitute assets as long as the required cover is maintained. The Group is required to maintain the cover pool at a level sufficient to cover the bond obligations. In addition, the Group is entitled to any residual income of the covered bond SEs (after all payments to the covered bond holders and external parties) and enters into derivatives with the SEs. The Group retains the majority of the risks and rewards of the residential mortgages and continues to recognise the mortgages as financial assets and recognises an associated liability for the externally issued covered bonds. The covered bonds issued externally are included within debt issuances. The Group is exposed to variable returns from its involvement with the covered bond SEs and has the ability to affect those returns through its power over the SEs activities. The SEs are therefore consolidated by the Group. Repurchase agreements Assets are charged or transferred as collateral to secure liabilities under repurchase agreements. Where the Group sells securities subject to repurchase agreements and retains substantially all the risks and rewards of ownership, then those assets do not qualify for derecognition. An associated liability is recognised in deposits and other borrowings for the consideration received from the counterparty. Structured finance arrangements The Group arranges funding for certain customer transactions through structured leasing. These transactions are recognised on the Group’s Balance Sheet as lease receivables or loans. At times, other financial institutions participate in the funding of these arrangements. This participation involves a proportionate transfer of the rights to the assets recognised by the Group. The participating banks have limited recourse to the leased assets and related proceeds. Where the Group continues to be exposed to substantially all of the risks and rewards of the transferred assets through a derivative or other continuing involvement, the Group does not derecognise the lease receivable or loan. Instead, the Group recognises an associated liability representing its obligations to the participating financial institutions. The tables below set out the balances of assets transferred or pledged that do not qualify for derecognition, along with the associated liabilities. 182 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 182 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 182 27. Assets pledged, collateral accepted, and financial assets transferred Amounts presented as collateral paid and received in the Balance Sheet relate to derivative liabilities and derivative assets respectively. The terms and conditions of those collateral agreements are included in the standard Credit Support Annex that forms part of the International Swaps and Derivatives Association Master Agreement under which most of the Group’s derivatives are executed. The following disclosures exclude these balances. In the normal course of business the Group enters into transactions where it pledges or transfers financial assets directly to third parties or to SEs. These transfers may result in the Group fully, or partially, derecognising those financial assets - depending on the Group’s exposure to the risks and rewards or control over the transferred assets. If the Group retains substantially all of the risks and rewards of a transferred asset, the transfer does not qualify for derecognition and the asset remains on the Group’s balance sheet in its entirety, with a corresponding liability recognised for proceeds from the transfer. Securitisations Net loans and advances include residential mortgages securitised under the Group’s securitisation programs which are assigned to bankruptcy remote SEs to provide security for obligations payable on the notes issued by the SEs. The holders of the issued notes have full recourse to the pool of residential mortgages which have been securitised and the Group cannot otherwise pledge or dispose of the transferred assets. In some instances, the Group is also the holder of the securitised notes issued by the SEs. In addition, the Group is entitled to any residual income of the SEs and sometimes enters into derivatives with the SEs. The Group retains the risks and rewards of the residential mortgages and continues to recognise the mortgages as financial assets and recognises an associated liability for the externally issued notes. The securitised notes issued externally are included within debt issuances. The Group is exposed to variable returns from its involvement with these securitisation SEs and has the ability to affect those returns through its power over the SEs activities. The SEs are therefore consolidated by the Group. Covered bonds The Group operates various global covered bond programs to raise funding in its primary markets. Net loans and advances include residential mortgages assigned to bankruptcy remote SEs associated with these covered bond programs. In respect of each program, a covered bond guarantor has guaranteed payments of interest and principal pursuant to a guarantee which is secured over its assets, including these residential mortgages. Substantially all of the assets of each covered bond guarantor consist of that covered bond guarantor’s equitable interests in mortgage loans secured by residential real estate. The covered bond holders have dual recourse to the issuer and the cover pool of assets. The issuer cannot otherwise pledge or dispose of the transferred assets, however, subject to legal arrangements it may repurchase and substitute assets as long as the required cover is maintained. The Group is required to maintain the cover pool at a level sufficient to cover the bond obligations. In addition, the Group is entitled to any residual income of the covered bond SEs (after all payments to the covered bond holders and external parties) and enters into derivatives with the SEs. The Group retains the majority of the risks and rewards of the residential mortgages and continues to recognise the mortgages as financial assets and recognises an associated liability for the externally issued covered bonds. The covered bonds issued externally are included within debt issuances. The Group is exposed to variable returns from its involvement with the covered bond SEs and has the ability to affect those returns through its power over the SEs activities. The SEs are therefore consolidated by the Group. Repurchase agreements Assets are charged or transferred as collateral to secure liabilities under repurchase agreements. Where the Group sells securities subject to repurchase agreements and retains substantially all the risks and rewards of ownership, then those assets do not qualify for derecognition. An associated liability is recognised in deposits and other borrowings for the consideration received from the counterparty. Structured finance arrangements The Group arranges funding for certain customer transactions through structured leasing. These transactions are recognised on the Group’s Balance Sheet as lease receivables or loans. At times, other financial institutions participate in the funding of these arrangements. This participation involves a proportionate transfer of the rights to the assets recognised by the Group. The participating banks have limited recourse to the leased assets and related proceeds. Where the Group continues to be exposed to substantially all of the risks and rewards of the transferred assets through a derivative or other continuing involvement, the Group does not derecognise the lease receivable or loan. Instead, the Group recognises an associated liability representing its obligations to the participating financial institutions. The tables below set out the balances of assets transferred or pledged that do not qualify for derecognition, along with the associated liabilities. 182 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 27. Assets pledged, collateral accepted, and financial assets transferred (continued) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Securitisations | | | | | | | | | | 2,3 | | | | | | | | | | | | Covered bonds | | | | | | | | | | | | Repurchase | | | | | | | | | | agreements | | | | | | | | | | | | Structured finance | | | | | | | | | | arrangements | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | Consolidated | | | | | | | | | | | $m | $m | $m | $m | $m | $m | $m | $m | | Carrying amount of assets transferred | | | | | | | | | | 1 | | | | | | | | | | | 5,470 | 3,730 | 32,510 | 34,235 | 57,574 | 45,709 | 3 | 15 | | Carrying amount of associated liabilities | 5,396 | 3,640 | 12,985 | 18,931 | 56,139 | 44,315 | 3 | 15 | 1. In addition to the assets noted in the above table, there were other carrying amount of assets pledged amounting to $7,199m (2024: $6,339m). This principally related to those pledged to central banks as security for liabilities. 2. Does not include transfers to internal structured entities where there are no external investors. 3. The securitisation noteholders have recourse only to the pool of residential mortgages which have been securitised. The carrying value of securitised assets and the associated liabilities approximates their fair value. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Securitisations | | | | | | | | | | 2,3 | | | | | | | | | | | | Covered bonds | | | | | | | | | | | | Repurchase | | | | | | | | | | agreements | | | | | | | | | | | | Structured finance | | | | | | | | | | arrangements | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | The Company | $m | $m | $m | $m | $m | $m | $m | $m | | Carrying amount of assets transferred | | | | | | | | | | 1 | | | | | | | | | | | 2,005 | 714 | 21,013 | 21,027 | 52,822 | 41,384 | - | - | | Carrying amount of associated liabilities | 2,005 | 714 | 21,013 | 21,027 | 51,835 | 41,006 | - | - | 1. In addition to the assets noted in the above table, there were other carrying amount of assets pledged amounting to $7,047m (2024: $6,203m). This principally related to those pledged to central banks as security for liabilities 2. Does not include transfers to internal structured entities where there are no external investors. 3. The securitisation noteholders have recourse only to the pool of residential mortgages which have been securitised. The carrying value of securitised assets and the associated liabilities approximates their fair value. Collateral accepted as security for assets The Group has received collateral associated with various financial transactions. Under certain arrangements the Group has the right to sell, or to repledge, the collateral received. These arrangements are governed by standard industry agreements. The fair value of collateral we have received and that which we have sold or repledged is as follows: | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Fair value of assets which can be sold or repledged | | | | | | | 88,193 | 68,145 | 86,006 | 65,329 | | Fair value of assets sold or repledged | 45,311 | 39,699 | 43,764 | 39,058 | 183 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 183 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 28. Superannuation and post-employment benefit obligations Set out below is a summary of amounts recognised in the Balance Sheet in respect of the defined benefit superannuation schemes: | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Co | | | | | | mpany | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Defined benefit obligation and scheme assets | | | | | | Present value of funded defined benefit obligations | (917) | (998) | (810) | (873) | | Fair value of scheme assets | | | | | | | 1,101 | 1,150 | 956 | 1,003 | | Net defined benefit asset | | | | | | | 184 | 152 | 146 | 130 | | As represented in the Balance Sheet | | | | | | Net liabilities arising from defined benefit obligations included in Payables and | | | | | | other liabilities | | | | | | | (4) | (4) | (4) | (4) | | Net assets arising from defined benefit obligations included in Other assets | | | | | | | 188 | 156 | 150 | 134 | | Net defined benefit asset | | | | | | | 184 | 152 | 146 | 130 | | Weighted average duration of the benefit payments reflected in the defined | | | | | | benefit obligation (years) | | | | | | | 10.7 | 11.3 | 10.9 | 10.9 | As at the most recent reporting dates of the schemes, the aggregate surplus of net market value of assets over the value of accrued benefits on a funding basis was $123 million (2024: $71 million surplus). In 2025, the Group made defined benefit contributions totaling $2 million (2024: $2 million). It expects to make contributions of approximately $2 million next financial year. Governance of the schemes and funding of the defined benefit sections The main defined benefit superannuation schemes in which the Group participates operate under trust law and are managed and administered on behalf of the members in accordance with the terms of the relevant trust deed and rules and all relevant legislation. These schemes have corporate trustees, which are wholly owned subsidiaries of the Group. The trustees are the legal owners of the assets, which are held separately from the assets of the Group, and are responsible for setting investment policy and agreeing funding requirements with the employer through the triennial actuarial valuation process. The Group has defined benefit arrangements in Australia, Japan, New Zealand, Philippines, Taiwan and United Kingdom. The defined benefit section of the ANZ Australian Staff Superannuation Scheme, the ANZ UK Staff Pension Scheme and the ANZ National Retirement Scheme in New Zealand are the three largest plans. They have been closed to new members since 1987, 2004 and 1991 respectively. None of the schemes had a material deficit, or surplus, at the last funding valuation. The Group has no present liability under any of the schemes’ trust deeds to fund a deficit (measured on a funding basis). A contingent liability of the Group may arise if any of the schemes were wound up. On 24 June 2024, the trustees of the ANZ UK Staff Pension Scheme (Scheme) executed a GBP 455 million bulk annuity insurance policy. The insurance policy was purchased using the existing assets of the Scheme. The transaction secured an insurance asset that fully matches pension liabilities of the Scheme and is therefore measured at an amount that matches the insured scheme liabilities. The Group retains ultimate responsibility for the benefits provided to the Scheme members. In accordance with AASB 119 Employee Benefits, the impact of this transaction was to record a remeasurement loss of GBP 15 million in other comprehensive income. #### Recognition and measurement Defined benefit superannuation schemes The Group operates a small number of defined benefit schemes. Independent actuaries calculate the liability and expenses related to providing benefits to employees under each defined benefit scheme. They use the Projected Unit Credit Method to value the liabilities. The Balance Sheet includes: • a defined benefit liability if the obligation is greater than the fair value of the scheme’s assets; and • an asset (capped to its recoverable amount) if the fair value of the scheme’s assets is greater than the obligation. In each reporting period, the movements in the net defined benefit liability/asset are recognised as follows: • the net movement relating to the current period’s service cost, net interest on the defined benefit liability, past service costs and other costs (such as the effects of any curtailments and settlements) as operating expenses; • remeasurements of the net defined benefit liability/asset (which comprise actuarial gains and losses and return on scheme assets, excluding interest income included in net interest) directly in retained earnings through other comprehensive income; and • contributions of the Group directly against the net defined benefit position. Defined contribution superannuation schemes The Group operates a number of defined contribution schemes. It also contributes (according to local law, in the various countries in which it operates) to Government and other plans that have the characteristics of defined contribution plans. The Group’s contributions to these schemes are recognised as personnel expenses when they are incurred . 184 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 184 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 184 28. Superannuation and post-employment benefit obligations Set out below is a summary of amounts recognised in the Balance Sheet in respect of the defined benefit superannuation schemes: Consolidated The Co mpany 2025 2024 2025 2024 $m $m $m $m Defined benefit obligation and scheme assets Present value of funded defined benefit obligations (917) (998) (810) (873) Fair value of scheme assets 1,101 1,150 956 1,003 Net defined benefit asset 184 152 146 130 As represented in the Balance Sheet Net liabilities arising from defined benefit obligations included in Payables and other liabilities (4) (4) (4) (4) Net assets arising from defined benefit obligations included in Other assets 188 156 150 134 Net defined benefit asset 184 152 146 130 Weighted average duration of the benefit payments reflected in the defined benefit obligation (years) 10.7 11.3 10.9 10.9 As at the most recent reporting dates of the sc hemes, the aggregate surplus of net market value of assets over the value of accrued benefits on a funding basis was $123 million (2024: $71 million surplus). In 2025, the Group made defined benefit contributions totaling $2 million (2024: $2 million). It expects to make contributions of approximately $2 million next financial year. Governance of the schemes and funding of the defined benefit sections The main defined benefit superannuation schemes in which the Group participates operate under trust law and are managed and administered on behalf of the members in accordance with the terms of the relevant trust deed and rules and all relevant legislation. These schemes have corporate trustees, which are wholly owned subsidiaries of the Group. The trustees are the legal owners of the assets, which are held separately from the assets of the Group, and are responsible for setting investment policy and agreeing funding requirements with the employer through the triennial actuarial valuation process. The Group has defined benefit arrangements in Australia, Japan, New Zealand, Philippines, Taiwan and United Kingdom. The defined benefit section of the ANZ Australian Staff Superannuation Scheme, the ANZ UK Staff Pension Scheme and the ANZ National Retirement Scheme in New Zealand are the three largest plans. They have been closed to new members since 1987, 2004 and 1991 respectively. None of the schemes had a material deficit, or surplus, at the last funding valuation. The Group has no present liability under any of the schemes’ trust deeds to fund a deficit (measured on a funding basis). A contingent liability of the Group may arise if any of the schemes were wound up. On 24 June 2024, the trustees of the ANZ UK Staff Pension Scheme (Scheme) executed a GBP 455 million bulk annuity insurance policy. The insurance policy was purchased using the existing assets of the Scheme. The transaction secured an insurance asset that fully matches pension liabilities of the Scheme and is therefore measured at an amount that matches the insured scheme liabilities. The Group retains ultimate responsibility for the benefits provided to the Scheme members. In accordance with AASB 119 Employee Benefits, the impact of this transaction was to record a remeasurement loss of GBP 15 million in other comprehensive income. Defined benefit superannuation schemes The Group operates a small number of defined benefit schemes. Independent actuaries calculate the liability and expenses related to providing benefits to employees under each defined benefit scheme. They use the Projected Unit Credit Method to value the liabilities. The Balance Sheet includes: • a defined benefit liability if the obligation is greater than the fair value of the scheme’s assets; and • an asset (capped to its recoverable amount) if the fair value of the scheme’s assets is greater than the obligation. In each reporting period, the movements in the net defined benefit liability/asset are recognised as follows: • the net movement relating to the current period’s service cost, net interest on the defined benefit liability, past service costs and other costs (such as the effects of any curtailments and settlements) as operating expenses; • remeasurements of the net defined benefit liability/asset (which comprise actuarial gains and losses and return on scheme assets, excluding interest income included in net interest) directly in retained earnings through other comprehensive income; and • contributions of the Group directly against the net defined benefit position. Defined contribution superannuation schemes The Group operates a number of defined contribution schemes. It also contributes (according to local law, in the various countries in which it operates) to Government and other plans that have the characteristics of defined contribution plans. The Group’s contributions to these schemes are recognised as personnel expenses when they are incurred . #### Recognition and measurement 184 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 28. Superannuation and post-employment benefit obligations (continued) #### Key judgements and estimates The main assumptions we use in valuing defined benefit obligations are listed in the table below. A change to any assumptions, or applying different assumptions, could have an effect on the Statement of Other Comprehensive Income and Balance Sheet . | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Sensitivity analysis | | | | | | | change in significant | | | | | | | assumptions | | | | | | | | Increase/(decrease) in | | | | | | | defined benefit obligation | | | | | | | 2025 | | | | | | | $m | | | | | | | | 2024 | | | | | | | $m | | Consolidated | | | | | | | | 2025 | | | | | | | | 2024 | | | | | Discount rate (% p.a.) | 1.3-5.65 | 1.5-5.35 | 0.5% increase | (45) | (45) | | Future salary in | | | | | | | creases (% p.a.) | 2.0-3.0 | 2.0-3.7 | | | | | Future pension indexation | | | | | | | In payment (% p.a.)/In deferment (% p.a.) | 2.0-3.0/2.5 | 2.3-3.3/2.8 | 0.5% increase | 35 | 36 | | Life expectancy at age 60 for current pensioners | | | 1 year increase | 35 | 34 | | – Males (years) | 26.4-27.7 | 26.3-28.4 | | | | | – Females (years) | 29.3-30.1 | 29.3-30.3 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | Sensitivity analysis | | | | | | | change in significant | | | | | | | assumptions | | | | | | | | Increase/(decrease) in | | | | | | | defined benefit obligation | | | | | | | 2025 | | | | | | | $m | | | | | | | | 2024 | | | | | | | $m | | The Co | | | | | | | mpany | | | | | | | | 2025 | 2024 | | | | | Discount rate (% p.a.) | 5.1-5.65 | 5.0-5.35 | 0.5% increase | (41) | (39) | | Future salary increases (% p. | | | | | | | a.) | 3.05 | 3.5 | | | | | Future pension indexation | | | | | | | In payment (% p.a.)/In deferment (% p.a.) | 2.6-3.0/2.5 | 2.6-3.3/2.8 | 0.5% increase | | | | | | | | 31 | | | | | | | | 30 | | Life expectancy at age 60 for current pensioners | | | 1 year increase | | | | | | | | 31 | | | | | | | | 30 | | – Males (years) | 26.4-27.7 | 26.3-28.4 | | | | | – Females (years) | 29.3-29.8 | 29.3-30.3 | | | | 185 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 185 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 29. Employee share and option plans The Group operates a number of employee share and option schemes under the ANZ Employee Share Acquisition Plan and the ANZ Share Option Plan which are operated by the Company. These are Group share-based payment arrangements under which shares in ANZGHL (ANZ shares) are allocated or granted to employees of the Group. ANZ Employee Share Acquisition Plan ANZ Employee Share Acquisition Plan schemes that operated during 2025 and 2024 were the Deferred Share Plan and the Variable Pay to Shares (VPS) Offer. The ANZ Incentive Plan (ANZIP) (the variable remuneration plan operating across the Group) has Short Term Variable Remuneration or Variable Remuneration delivered under the Deferred Share Plan or ANZ Share Option Plan for eligible employees. Deferred Share Plan i) ANZ Incentive Plan (ANZIP) – Short Term Variable Remuneration (STVR) and Variable Remuneration (VR) – deferred shares | | | | | | | --- | --- | --- | --- | --- | | Award Type | | | | | | | STVR (deferred shares) | | | | | | | STVR/VR historical (deferred | | | | | | shares) | | | | | | | VR (deferred shares) | | | | | | | VR historical (deferred | | | | | | shares) | | Eligibility | | | | | | | Chief Executive Officer (CEO), Group Executive Committee | | | | | | (ExCo) and Group General Manager Internal Audit (GGM IA) | | | | | | 1 | | | | | | . | | | | | | | | All other employees (excluding select roles in the United | | | | | | Kingdom (UK)/China/Hong Kong (HK) | | | | | | 2 | | | | | | ) in countries where | | | | | | deferred shares may be granted instead of deferred share | | | | | | rights. | | | Financial Year (FY) | | | | | | of grant | | | | | | | 2024 and 2023 Performance | | | | | | and Remuneration Review | | | | | | (PRR): granted in FY25 & FY24 | | | | | | | Historical grants: on foot | | | | | | during FY25 & FY24 | | | | | | | Grants from 1 Oct 2023 | | | | | | including 2024 PRR: granted | | | | | | in FY25 & FY24 | | | | | | | 2023 PRR: granted in FY24 | | | | | | Historical grants: on foot | | | | | | during FY25 & FY24 | | Grant approach | 50% of the CEO, ExCo and | | | GGM IA’s Short Term Variable | | | Remuneration (STVR) deferred | | | as shares. | | | | 50% of the CEO’s STVR, 25% | | | | of ExCo’s Variable | | | | Remuneration (VR) (except for | | | | the Chief Risk Officer (CRO)), | | | | and 33% of the CRO and | | | | GGM IA’s VR, deferred as | | | | shares. | | | | | If VR is at or exceeds AUD | | | | | 125,000, then 40% of total | | | | | VR amount is deferred as | | | | | shares. | | | | | | If VR is at or exceeds AUD | | | | | | 100,000, then 60% of total | | | | | | VR amount is deferred as | | | | | | shares. | | Conditions | | | | | | | Deferred over years two and three, where year 1 includes the | | | | | | performance period (i.e., 1 October to 30 September). Granted | | | | | | in late November. | | | | | | | | Deferred over a minimum of | | | | | | four years (including the | | | | | | performance period), vesting | | | | | | no faster than on a pro-rata | | | | | | basis and only after two | | | | | | years (i.e., 33% year two, | | | | | | 33% year three, 34% year | | | | | | four). | | | | | | | Deferred over years two, | | | | | | three and four, where year 1 | | | | | | includes the performance | | | | | | period. Granted in late | | | | | | November. | | Allocation value | Deferred shares granted | | | | | | based on the Volume | | | | | | Weighted Average Price | | | | | | (VWAP) of ANZ shares traded | | | | | | on the ASX in the five trading | | | | | | days leading up to and | | | | | | including 1 October. | | | | | | | Deferred shares granted based on the VWAP of ANZ shares traded on the ASX in the five | | | | | | trading days leading up to and including the date of grant. | | | 1. All ANZGHL/ANZBGL Financial Accountability Regime (FAR) Accountable Executives. 2. Specific deferral arrangements also exist under ANZIP for roles defined as specific country level Material Risk Takers (MRTs), in line with local regulatory requirements. i) Exceptional circumstances | | | | --- | --- | | Remuneration | | | forgone | | | | In exceptional circumstances, we grant deferred shares to certain employees when they start with the Group to | | | compensate them for remuneration they have forgone from their previous employer. The vesting period generally | | | aligns with the remaining vesting period of the remuneration they have forgone, and therefore varies between grants. | | Retention | We may grant deferred shares to high performing employees who are regarded as a significant retention risk to the | | | Group. | 186 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 186 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 186 29. Employee share and option plans The Group operates a number of employee share and option schemes under the ANZ Employee Share Acquisition Plan and the ANZ Share Option Plan which are operated by the Company. These are Group share-based payment arrangements under which shares in ANZGHL (ANZ shares) are allocated or granted to employees of the Group. ANZ Employee Share Acquisition Plan ANZ Employee Share Acquisition Plan schemes that operated during 2025 and 2024 were the Deferred Share Plan and the Variable Pay to Shares (VPS) Offer. The ANZ Incentive Plan (ANZIP) (the variable remuneration plan operating across the Group) has Short Term Variable Remuneration or Variable Remuneration delivered under the Deferred Share Plan or ANZ Share Option Plan for eligible employees. Deferred Share Plan i) ANZ Incentive Plan (ANZIP) – Short Term Variable Remuneration (STVR) and Variable Remuneration (VR) – deferred shares Award Type STVR (deferred shares) STVR/VR historical (deferred shares) VR (deferred shares) VR historical (deferred shares) Eligibility Chief Executive Officer (CEO), Group Executive Committee (ExCo) and Group General Manager Internal Audit (GGM IA) 1 . All other employees (excluding select roles in the United Kingdom (UK)/China/Hong Kong (HK) 2 ) in countries where deferred shares may be granted instead of deferred share rights. Financial Year (FY) of grant 2024 and 2023 Performance and Remuneration Review (PRR): granted in FY25 & FY24 Historical grants: on foot during FY25 & FY24 Grants from 1 Oct 2023 including 2024 PRR: granted in FY25 & FY24 2023 PRR: granted in FY24 Historical grants: on foot during FY25 & FY24 Grant approach 50% of the CEO, ExCo and GGM IA’s Short Term Variable Remuneration (STVR) deferred as shares. 50% of the CEO’s STVR, 25% of ExCo’s Variable Remuneration (VR) (except for the Chief Risk Officer (CRO)), and 33% of the CRO and GGM IA’s VR, deferred as shares. If VR is at or exceeds AUD 125,000, then 40% of total VR amount is deferred as shares. If VR is at or exceeds AUD 100,000, then 60% of total VR amount is deferred as shares. Conditions Deferred over years two and three, where year 1 includes the performance period (i.e., 1 October to 30 September). Granted in late November. Deferred over a minimum of four years (including the performance period), vesting no faster than on a pro-rata basis and only after two years (i.e., 33% year two, 33% year three, 34% year four). Deferred over years two, three and four, where year 1 includes the performance period. Granted in late November. Allocation value Deferred shares granted based on the Volume Weighted Average Price (VWAP) of ANZ shares traded on the ASX in the five trading days leading up to and including 1 October. Deferred shares granted based on the VWAP of ANZ shares traded on the ASX in the five trading days leading up to and including the date of grant. 1. All ANZGHL/ANZBGL Financial Accountability Regime (FAR) Accountable Executives. 2. Specific deferral arrangements also exist under ANZIP for roles defined as specific country level Material Risk Takers (MRTs), in line with local regulatory requirements. i i) Exceptional circumstances Remuneration forgone In exceptional circumstances, we grant deferred shares to certain employees when they start with the Group to compensate them for remuneration they have forgone from their previous employer. The vesting period generally aligns with the remaining vesting period of the remuneration they have forgone, and therefore varies between grants. Retention We may grant deferred shares to high performing employees who are regarded as a significant retention risk to the Group. 186 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 29. Employee share and option plans (continued) iii) Further information | | | | --- | --- | | Cessation | | | | Unless the Board | | | 1 | | | decides otherwise, employees forfeit their unvested deferred shares if they resign or are dismissed | | | for serious misconduct. The deferred shares may be held in trust beyond the deferral period. | | Dividends | | | | Dividends are reinvested in the Dividend Reinvestment Plan. | | Instrument | | | | Deferred share rights may be granted instead of deferred shares in some countries as locally appropriate (see deferred | | | share rights Section). | | Expensing value (fair | | | value) | | | | We expense the fair value of deferred shares on a straight-line basis over the relevant vesting period and we recognise | | | the expense as a share-based compensation expense with a corresponding increase in equity. Deferred shares are | | | expensed based on the one-day VWAP at the date of grant. | | 2025 and 2024 grants | | | | During the 2025 year, we granted 1,441,744 deferred shares (2024: 2,863,800) with a weighted average allocation | | | value of $31.99 (2024: $24.45). | | Downward adjustment | | | | | Deferred shares remain at risk and the Board has the discretion to adjust the number of deferred shares downwards, | | | including to zero at any time before the vesting date (malus), and limited to select employees | | | 2 | | | , recovery post vesting | | | (i.e., clawback). The Group’s downward adjustment provisions are detailed in Section 5.5 of the 2025 Remuneration | | | Report. | | | Board discretion was exercised to apply malus to 144,946 deferred shares in 2025 (2024: to 4,138 deferred shares). | 1. References to ‘the Board’ throughout this note means the Boards of ANZGHL and ANZBGL. 2. Clawback applies to the CEO, ExCo and GGM IA (for awards granted in the 2023, 2024 and 2025 financial years), and to select senior employees in jurisdictions where clawback regulations apply . Variable Pay to Shares (VPS) Offer | | | | --- | --- | | Eligibility, grant | | | approach and | | | conditions | | | | VPS provides employees in Australia the opportunity to receive up to $1,000 worth of ANZ shares with concessional | | | tax treatment (where criteria are met). All ANZ shares are held by a custodian or nominee appointed by the Trustee on | | | the Trustee’s behalf and are restricted for 3 years. During this time employees benefit from dividend payments which | | | are reinvested through the Dividend Reinvestment Plan (DRP) and have voting entitlements. After the restriction period | | | has been reached the shares can sold or transferred. | | Allocation value | | | | Granted based on the VWAP of ANZ shares traded on the ASX in the five trading days leading up to and including the | | | date of grant. | | Expensing value | | | (fair value) | | | | Expensed based on the one-day VWAP at the date of grant. | | 2025 and 2024 grants | | | | During the 2025 year, we granted 48,084 shares on 22 November 2024 (2024: 51,619) at an issue price of $32.36 | | | (2024: $24.20). | Expensing of the ANZ Employee Share Acquisition Plan | | | | --- | --- | | Expensing value | | | (fair value) | | | | The fair value of shares we granted during 2025 under the Deferred Share Plan and VPS Offer, measured as at the | | | date of grant of the shares, is $47.8 million (2024: $71.4 million) based on 1,489,828 shares | | | (2024: 2,915,419) with a weighted average VWAP of $32.06 (2024: $24.48). | 187 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 187 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 29. Employee share and option plans (continued) ANZ Share Option Plan Allocation We may grant selected employees options/rights which entitle them to acquire fully paid ordinary ANZ shares at a fixed price at the time the options/rights vest. Voting and dividend rights will be attached to the ordinary shares allocated on exercise of the options/rights. Each option/right entitles the holder to one ordinary share subject to the terms and conditions imposed on grant. Exercise price of options, determined in accordance with the rules of the plan, is generally based on the VWAP of the shares traded on the ASX in the week leading up to and including the date of grant. For rights, the exercise price is nil. Rules Prior to the exercise of the option/right, if ANZ changes its share capital due to a bonus share issue, pro-rata new share issue or reorganisation, the following adjustments are required: • Issue of bonus shares - When the holder exercises their option, they are also entitled to be issued the number of bonus shares they would have been entitled to had they held the underlying shares at the time of the bonus issue; • Pro-rata share offer - We will adjust the exercise price of the option in the manner set out in the ASX Listing Rules; and • Reorganisation - In respect of rights, if there is a bonus issue or reorganisation of ANZ’s share capital, then the Board may adjust the number of rights or the number of underlying shares so that there is no advantage or disadvantage to the holder. Holders otherwise have no other entitlements to participate: • in any new issue of ANZ securities before they exercise their options/rights; or • in a share issue of a body corporate other than ANZ (such as a subsidiary). Any portion of the award which vests may, at the Boards discretion, be satisfied by a cash equivalent payment rather than shares. Expensing value (fair value) We expense the fair value of options/rights on a straight-line basis over the relevant vesting period and we recognise the expense as a share-based compensation expense with a corresponding increase in equity. Factors considered in determining the fair value include: the market performance conditions, share price volatility, life of the instrument, dividend yield, and share price at grant date. Satisfying vesting Any portion of the award of options/rights (that have met the applicable time and performance conditions) may be satisfied by a cash equivalent payment rather than shares at Board discretion. In financial year 2025, all deferred share rights were satisfied through a share allocation, other than 96,757 deferred share rights (2024: 95,968) for which a cash payment was made. 2020 performance rights (PR), granted in December 2020, reached the end of their performance period in November 2024. Based on performance against hurdles, 25% of the PR vested. The remaining 75% of rights lapsed and executives received no value from this proportion of the awards. 100% of the PR granted in late 2019 (2019 PR award) were lapsed, as the performance hurdles were not met when tested in November 2023 – the end of the performance period. Cessation The provisions that apply if the employee’s employment ends are in Section 8.1 of the 2025 Remuneration Report. Downward adjustment As per Deferred Share Plan. 188 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 188 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 188 29. Employee share and option plans (continued) ANZ Share Option Plan Allocation We may grant selected employees options/rights which entitle them to acquire fully paid ordinary ANZ shares at a fixed price at the time the options/rights vest. Voting and dividend rights will be attached to the ordinary shares allocated on exercise of the options/rights. Each option/right entitles the holder to one ordinary share subject to the terms and conditions imposed on grant. Exercise price of options, determined in accordance with the rules of the plan, is generally based on the VWAP of the shares traded on the ASX in the week leading up to and including the date of grant. For rights, the exercise price is nil. Rules Prior to the exercise of the option/right, if ANZ changes its share capital due to a bonus share issue, pro-rata new share issue or reorganisation, the following adjustments are required: • Issue of bonus shares - When the holder exercises their option, they are also entitled to be issued the number of bonus shares they would have been entitled to had they held the underlying shares at the time of the bonus issue; • Pro-rata share offer - We will adjust the exercise price of the option in the manner set out in the ASX Listing Rules; and • Reorganisation - In respect of rights, if there is a bonus issue or reorganisation of ANZ’s share capital, then the Board may adjust the number of rights or the number of underlying shares so that there is no advantage or disadvantage to the holder. Holders otherwise have no other entitlements to participate: • in any new issue of ANZ securities before they exercise their options/rights; or • in a share issue of a body corporate other than ANZ (such as a subsidiary). Any portion of the award which vests may, at the Boards discretion, be satisfied by a cash equivalent payment rather than shares. Expensing value (fair value) We expense the fair value of options/rights on a straight-line basis over the relevant vesting period and we recognise the expense as a share-based compensation expense with a corresponding increase in equity. Factors considered in determining the fair value include: the market performance conditions, share price volatility, life of the instrument, dividend yield, and share price at grant date. Satisfying vesting Any portion of the award of options/rights (that have met the applicable time and performance conditions) may be satisfied by a cash equivalent payment rather than shares at Board discretion. In financial year 2025, all deferred share rights were satisfied through a share allocation, other than 96,757 deferred share rights (2024: 95,968) for which a cash payment was made. 2020 performance rights (PR), granted in December 2020, reached the end of their performance period in November 2024. Based on performance against hurdles, 25% of the PR vested. The remaining 75% of rights lapsed and executives received no value from this proportion of the awards. 100% of the PR granted in late 2019 (2019 PR award) were lapsed, as the performance hurdles were not met when tested in November 2023 – the end of the performance period. Cessation The provisions that apply if the employee’s employment ends are in Section 8.1 of the 2025 Remuneration Report. Downward adjustment As per Deferred Share Plan. 188 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 29. Employee share and option plans (continued) Option plans that operated during 2025 and 2024 i) Long Term Variable Remuneration (LTVR) and Variable Remuneration (VR) - restricted rights (RR), performance rights (PR), and deferred share rights (DSR) | | | | | | | --- | --- | --- | --- | --- | | Award Type | LTVR (RR & PR) | LTVR / VR historical (PR) | ANZIP VR (DSR) | ANZIP historical VR (DSR) | | Eligibility | CEO, ExCo and GGM IA | | | | | | 1 | | | | | | | CEO and ExCo | | | | | | 1 | | | | | | | | | | | | | All other employees (excluding select roles in the | | | | | | UK/China/HK | | | | | | 2 | | | | | | ) in countries where DSR may be granted | | | | | | instead of deferred shares | | | FY of grant | | | | | | | 2024 and 2023 PRR: granted in | | | | | | FY25 & FY24 | | | | | | | Historical grants: on foot during | | | | | | FY25 & FY24 | | | | | | | Grants from 1 Oct 2023 | | | | | | including 2024 PRR: | | | | | | granted in FY25 & FY24 | | | | | | | 2023 PRR: granted in FY24 | | | | | | Historical grants: on foot | | | | | | during FY25 & FY24 | | | Grant approach | | | | | | 50% of the CEO and ExCo’s | | | | | | (except for the CRO) LTVR was | | | | | | received as RR and 50% as PR. | | | | | | 100% of the CRO and GGM | | | | | | IA’s LTVR was received as RR. | | | | | | | 100% of the CEO’s LTVR and | | | | | | 50% of ExCo’s VR (except for | | | | | | the CRO who received 50% VR | | | | | | as DSR instead) was received | | | | | | as PR. | | | | | | | If VR is at or exceeds | | | | | | AUD 125,000, then 40% | | | | | | of total VR amount is | | | | | | deferred. | | | | | | | If VR is at or exceeds AUD | | | | | | 100,000, then 60% of total | | | | | | VR amount is deferred. | | Conditions | | | | | | | RR and PR provide a right to | | | | | | acquire one ordinary ANZ share | | | | | | at nil cost – subject to time and | | | | | | performance conditions. | | | | | | Awarded subject to: | | | | | | • RR: pre grant assessment | | | | | | (risk-based measures) | | | | | | • RR and PR: shareholder | | | | | | approval at Annual General | | | | | | Meeting (AGM) for CEO | | | | | | award | | | | | | Performance condition tested at | | | | | | end of four-year performance | | | | | | period: | | | | | | • RR: pre vest assessment | | | | | | (risk-based measures) | | | | | | • PR: relative and absolute | | | | | | Total Shareholder Return | | | | | | (TSR) hurdles | | | | | | Deferral period | | | | | | 3 | | | | | | = four-year | | | | | | performance period | | | | | | (commencing 1 October) + | | | | | | holding period (which | | | | | | commences the day after end | | | | | | of performance period and | | | | | | finishes on the 4 | | | | | | th | | | | | | , 5 | | | | | | th | | | | | | or 6 | | | | | | th | | | | | | | | | | | | anniversary of grants (CEO only | | | | | | for year 6). | | | | | | Further details provided in | | | | | | Section 5.4 of the 2025 | | | | | | Remuneration Report. | | | | | | | Awarded at the end of the year | | | | | | subject to shareholder approval | | | | | | at AGM for CEO award. | | | | | | PR performance condition | | | | | | tested (relative and absolute | | | | | | TSR hurdles) at the end of four- | | | | | | year performance period. | | | | | | The four-year performance | | | | | | period commenced on 22 | | | | | | November to 21 November four | | | | | | years later. | | | | | | The deferral period is four years. | | | | | | Further details are provided in | | | | | | Section 5.2.3a of the 2021 | | | | | | Remuneration Report. | | | | | | | DSR provide a right to | | | | | | acquire one ordinary | | | | | | ANZ share at nil cost | | | | | | after a specified vesting | | | | | | period. | | | | | | Deferred over a | | | | | | minimum of four years | | | | | | (including the | | | | | | performance period), | | | | | | vesting no faster than on | | | | | | a pro-rata basis and only | | | | | | after two years (i.e., 33% | | | | | | year two, 33% year | | | | | | three, 34% year four). | | | | | | | DSR provide a right to | | | | | | acquire one ordinary ANZ | | | | | | share at nil cost after a | | | | | | specified vesting period. | | | | | | Deferred over years two, | | | | | | three and four, where year 1 | | | | | | includes the performance | | | | | | period. | | Allocation value | | | | | | | Face value of ANZ shares traded on the ASX in the five trading | | | | | | days leading up to and including 1 October (beginning of the | | | | | | financial year). | | | | | | | | The fair value at the date of grant is used to determine | | | | | | the number of DSR to be allocated and is also used for | | | | | | expensing purposes. The fair value is adjusted for the | | | | | | absence of dividends during the vesting period. | | 1. All ANZGHL/ANZBGL FAR Accountable Executives. 2. Specific deferral arrangements also exist under ANZIP for roles defined as specific country level MRTs, in line with local regulatory requirements. 3. A dividend equivalent payment (DEP) is paid in cash at the end of the relevant deferral period, but is only made to the extent that all or part of the underlying rights meet the relevant performance condition and vest to the individual. Dividend equivalents accrue over the full deferral period for RR, and only during the holding period for PR. 189 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 189 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 29. Employee share and option plans (continued) | | | | | | | --- | --- | --- | --- | --- | | Award Type | LTVR (RR & PR) | LTVR / VR historical (PR) | ANZIP VR (DSR) | ANZIP historical VR (DSR) | | Allocation timing | | | | | | LTVR awarded around late November/December (subject to | | | | | | shareholder approval for CEO). | | | | | | | | | Granted in late November. | | | | Start of FY | End of FY | | | | 2025 grants | | | | | | | During 2025, we granted | | | | | | 253,852 RR and 206,950 PR | | | | | | (2024: 376,821 RR and | | | | | | 313,156 PR). | | | | | | | | During 2025, we granted 1,485,960 DSR (no | | | | | | performance hurdles) | | | | | | (2024: 3,588,912). | | | Downward | | | | | | adjustment | | | | | | | Board discretion was exercised to apply malus to 42,424 RR | | | | | and 209,743 PR in 2025 (2024: to nil RR and nil PR). | | | | | | | Board discretion was exercised to apply malus to 35,802 | | | | | deferred share rights in 2025 | | | | | (2024: nil). | ii) Exceptional circumstances Remuneration forgone As per Deferred Share Plan in countries where DSR may be granted instead of deferred shares. Retention Options, deferred share rights, restricted rights and performance rights on issue As at 7 November 2025, there were 456 holders of 4,666,946 DSR on issue, 13 holders of 993,664 RR on issue and 11 holders of 1,306,402 PR on issue. Options/rights movements This table shows the options/rights over unissued ANZ shares and their related weighted average (WA) exercise prices as at the beginning and end of 2025 and the movements during 2025: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Opening | | | | | | | | balance | | | | | | | | 1 Oct 2024 | Granted | Forfeited | | | | | | | | 1 | | | | | | | | | Expired | Exercised | | | | | | | | | Closing | | | | | | | | balance | | | | | | | | 30 Sep 2025 | | Number of options/rights | | | | | | | | | 8,351,100 | 1,946,762 | (503,804) | 0 | (2,806,021) | 6,988,037 | | WA exercise price | | | | | | | | | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | | WA closing share price | | | | | | $30.27 | | WA remaining contractual life | | | | | | 1.9 years | | WA exercise price of all exercisable | | | | | | | | options/rights outstanding | | | | | | | | | | | | | | $0.00 | | Outstanding number of exercisable | | | | | | | | options/rights | | | | | | | | | | | | | | 140,580 | 1. Refers to any circumstance where equity can be forfeited (for example on cessation, downward adjustment or performance conditions not met). This table shows the options/rights over unissued ANZ shares and their related weighted average exercise prices as at the beginning and end of 2024 and the movements during 2024: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Opening | | | | | | | | balance | | | | | | | | 1 Oct 2023 | Granted | Forfeited | | | | | | | | 1 | | | | | | | | | Expired | Exercised | | | | | | | | | Closing | | | | | | | | balance | | | | | | | | 30 Sep 2024 | | Number of options/rights | 6,719,516 | 4,278,889 | (632,985) | 0 | (2,014,320) | 8,351,100 | | WA exercise price | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | | WA closing share price | | | | | | | | | | | | | | $27.34 | | WA remaining contractual life | | | | | | 1.8 years | | WA exercise price of all exercisable | | | | | | | | options/rights outstanding | | | | | | | | | | | | | | $0.00 | | Outstanding number of exercisable | | | | | | | | options/rights | | | | | | | | | | | | | | 118,965 | 1. Refers to any circumstance where equity can be forfeited (for example on cessation, downward adjustment or performance conditions not met). All of the shares issued as a result of the exercise of options/rights during 2025 and 2024, were issued at a nil exercise price. 190 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 190 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australia and New Zealand Banking Group Limited 2025 Annual Report 190 29. Employee share and option plans (continued) Award Type LTVR (RR & PR) LTVR / VR historical (PR) ANZIP VR (DSR) ANZIP historical VR (DSR) Allocation timing LTVR awarded around late November/December (subject to shareholder approval for CEO). Granted in late November. Start of FY End of FY 2025 grants During 2025, we granted 253,852 RR and 206,950 PR (2024: 376,821 RR and 313,156 PR). During 2025, we granted 1,485,960 DSR (no performance hurdles) (2024: 3,588,912). Downward adjustment Board discretion was exercised to apply malus to 42,424 RR and 209,743 PR in 2025 (2024: to nil RR and nil PR). Board discretion was exercised to apply malus to 35,802 deferred share rights in 2025 (2024: nil). ii) Exceptional circumstances Remuneration forgone As per Deferred Share Plan in countries where DSR may be granted instead of deferred shares. Retention Options, deferred share rights, restricted rights and performance rights on issue As at 7 November 2025, there were 456 holders of 4,666,946 DSR on issue, 13 holders of 993,664 RR on issue and 11 holders of 1,306,402 PR on issue. Options/rights movements This table shows the options/rights over unissued ANZ shares and their related weighted average (WA) exercise prices as at the beginning and end of 2025 and the movements during 2025: Opening balance 1 Oct 2024 Granted Forfeited 1 Expired Exercised Closing balance 30 Sep 2025 Number of options/rights 8,351,100 1,946,762 (503,804) 0 (2,806,021) 6,988,037 WA exercise price $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 WA closing share price $30.27 WA remaining contractual life 1.9 years WA exercise price of all exercisable options/rights outstanding $0.00 Outstanding number of exercisable options/rights 140,580 1. Refers to any circumstance where equity can be forfeited (for example on cessation, downward adjustment or performance conditions not met). This table shows the options/rights over unissued ANZ shares and their related weighted average exercise prices as at the beginning and end of 2024 and the movements during 2024: Opening balance 1 Oct 2023 Granted Forfeited 1 Expired Exercised Closing balance 30 Sep 2024 Number of options/rights 6,719,516 4,278,889 (632,985) 0 (2,014,320) 8,351,100 WA exercise price $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 WA closing share price $27.34 WA remaining contractual life 1.8 years WA exercise price of all exercisable options/rights outstanding $0.00 Outstanding number of exercisable options/rights 118,965 1. Refers to any circumstance where equity can be forfeited (for example on cessation, downward adjustment or performance conditions not met). All of the shares issued as a result of the exercise of options/rights during 2025 and 2024, were issued at a nil exercise price. 190 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 29. Employee share and option plans (continued) As at the date of the signing of the Directors’ Report on 7 November 2025: • no options/rights over ordinary shares have been granted since the end of 2025; and • no shares have been issued as a result of the exercise of options/rights since the end of 2025. Fair value assumptions When determining the fair value, we apply the standard market techniques for valuation, including Monte Carlo and/or Black Scholes pricing models. We do so in accordance with the requirements of AASB 2 Share-based Payments. The models take into account early exercise of vested equity, non- transferability and internal/external performance hurdles (if any). The table below shows the significant assumptions we used as inputs into our fair value calculation of instruments granted during the period. We present the values as weighted averages, but the specific values we use for each allocation are the ones we use for the fair value calculation. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | | | | | | | | | | 2024 | | | | | Deferred | | | | | | | | share | | | | | | | | rights | | | | | | | | | Restricted | | | | | | | | rights | | | | | | | | | Performance | | | | | | | | rights | | | | | | | | | Deferred | | | | | | | | share | | | | | | | | rights | | | | | | | | | Restricted | | | | | | | | rights | | | | | | | | | Performance | | | | | | | | rights | | Exercise price ($) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Share closing price at grant date ($) | 32.28 | 32.29 | 32.26 | 24.38 | 24.60 | 24.66 | | Expected volatility of ANZ share price (%) | | | | | | | | 1 | | | | | | | | | 17.5 | 17.5 | 17.5 | 19.98 | 20.0 | 20.0 | | Equity term (years) | 2.1 | 6.5 | 6.5 | 2.1 | 6.6 | 6.6 | | Vesting period (years) | 2.0 | 4.5 | 4.5 | 2.0 | 4.6 | 4.6 | | Expected life (years) | 2.0 | 4.5 | 4.5 | 2.0 | 4.6 | 4.6 | | Expected dividend yield (%) | 5.7 | 5.7 | 5.8 | 6.5 | 6.5 | 6.5 | | Risk free interest rate (%) | 4.04 | 4.12 | 4.13 | 4.18 | 4.05 | 4.03 | | Fair value ($) | 28.86 | 25.15 | 11.70 | 21.44 | 18.44 | 10.32 | 1. Expected volatility represents a measure of the amount by which ANZ’s share price is expected to fluctuate over the life of the rights. The measure of volatility used in the model is the annualised standard deviation of the continuously compounded rates of return on the historical share price over a defined period of time preceding the date of grant. This historical average annualised volatility is then used to estimate a reasonable expected volatility over the expected life of the rights. Satisfying equity awards All shares underpinning equity awards may be purchased on market, reallocated or be newly issued shares, or a combination. The equity we purchased on market during 2025 (either under the ANZ Employee Share Acquisition Plan and the ANZ Share Option Plan, or to satisfy options or rights) for all employees amounted to 3,982,873 shares at an average price of $31.64 per share (2024: 5,211,778 shares at an average price of $24.17 per share). 191 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 191 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 30. Related party disclosures Key Management Personnel compensation Key Management Personnel (KMP) are Directors of ANZBGL (whether executive directors or otherwise), and those personnel with a key responsibility for the strategic direction and management of the Group (i.e., members of the Group Executive Committee (ExCo)) who have Financial Accountability Regime (FAR) accountability and who report to the CEO. KMP compensation included within total personnel expenses in Note 4 Operating expenses is as follows: | | | | | --- | --- | --- | | | Consolidated | | | | 2025 | 2024 | | | | 1 | | | | | | | $'000 | $'000 | | Short-term benefits | | | | | 18,070 | 20,017 | | Post-employment benefits | 633 | 572 | | Other long-term benefits | | | | | 147 | 280 | | Termination benefits | | | | | 2,541 | - | | Share-based payments | | | | | 17,335 | 11,199 | | Total | | | | | 38,726 | 32,068 | 1. Includes former disclosed KMP until the end of their employment. Key Management Personnel loan transactions Loans made to KMP are made in the ordinary course of business and on normal commercial terms and conditions that are no more favourable than those given to other employees or customers, including the term of the loan, security required and the interest rate. No amounts have been written off during the period, or individual provisions raised in respect of these balances. Details of the terms and conditions of lending products can be found on anz.com. The aggregate balance of loans (including credit card balances) made, guaranteed or secured, and undrawn facilities to KMP including their related parties, were as follows: | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $'000 | $'000 | $'000 | $'000 | | Loans advanced | | | | | | 1 | | | | | | | 22,800 | 14,064 | 21,694 | 12,906 | | Undrawn facilities | | | | | | 1 | | | | | | | 2,220 | 2,203 | 2,116 | 1,995 | | Interest charged | | | | | | 2 | | | | | | | 813 | 1,078 | 743 | 778 | 1. Balances are as at balance date (for KMP in office at balance date) or at the date of cessation of former KMP. Comparative balances have been adjusted for balances relating to new KMP, or KMP who departed in the prior year. 2. Interest charged is for all KMP’s during the period. Key Management Personnel holdings of ANZ securities KMP, including their related parties, held the Company’s subordinated debt and shares, share rights and options over shares in ANZGHL directly, indirectly or beneficially as shown below : | | | | | --- | --- | --- | | | Consolidate | | | | d | | | | 2025 | 2024 | | | Number | Number | | Shares, options and rights | | | | 1 | | | | | 3,355,638 | 3,600,849 | | Subordinated debt | | | | 1 | | | | | 11,331 | 11,040 | 1. Balances are as at balance date (for KMP in office at balance date) or at the date of cessation of former KMP. Comparative balances have been adjusted for balances relating to new KMP, or KMP who departed in the prior year. 192 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 192 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 192 30. Related party disclosures Key Management Personnel compensation Key Management Personnel (KMP) are Directors of ANZBGL (whether executive directors or otherwise), and those personnel with a key responsibility for the strategic direction and management of the Group (i.e., members of the Group Executive Committee (ExCo)) who have Financial Accountability Regime (FAR) accountability and who report to the CEO. KMP compensation included within total personnel expenses in Note 4 Operating expenses is as follows: Consolidated 2025 2024 1 $'000 $'000 Short-term benefits 18,070 20,017 Post-employment benefits 633 572 Other long-term benefits 147 280 Termination benefits 2,541 - Share-based payments 17,335 11,199 Total 38,726 32,068 1. Includes former disclosed KMP until the end of their employment. Key Management Personnel loan transactions Loans made to KMP are made in the ordinary course of business and on normal commercial terms and conditions that are no more favourable than those given to other employees or customers, including the term of the loan, security required and the interest rate. No amounts have been written off during the period, or individual provisions raised in respect of these balances. Details of the terms and conditions of lending products can be found on anz.com. The aggregate balance of loans (including credit card balances) made, guaranteed or secured, and undrawn facilities to KMP including their related parties, were as follows: Consolidated The Company 2025 2024 2025 2024 $'000 $'000 $'000 $'000 Loa ns advanced 1 22,800 14,064 21,69 4 12,906 Undrawn facilities 1 2,220 2,203 2,116 1,995 Inter est charged 2 813 1,078 743 778 1. Balances are as at balance date (for KMP in office at balance date) or at the date of cessation of former KMP. Comparative balances have been adjusted for balances relating to new KMP, or KMP who departed in the prior year. 2. Interest charged is for all KMP’s during the period. Key Management Personnel holdings of ANZ securities KMP, including their related parties, held the Company’s subordinated debt and shares, share rights and options over shares in ANZGHL directly, indirectly or beneficially as shown below : Consolidate d 2025 2024 Number Number Shares, options and rights 1 3,355,638 3,600,849 Subordinated debt 1 11,331 11,040 1. Balances are as at balance date (for KMP in office at balance date) or at the date of cessation of former KMP. Comparative balances have been adjusted for balances relating to new KMP, or KMP who departed in the prior year. 192 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 30. Related party disclosures (continued) Other transactions of Key Management Personnel and their related parties The aggregate of deposits of KMP and their related parties with the Group were $31 million (2024: $26 million) and with the Company were $27 million (2024: $23 million). Other transactions with KMP and their related parties include amounts paid to the Group in respect of investment management service fees, brokerage and bank fees and charges. The Group has reimbursed KMP for the costs incurred for security and secretarial services associated with the performance of their duties. These transactions are conducted on normal commercial terms and conditions no more favourable than those given to other employees or customers. Gifts were provided to KMP, including on their retirement, amounting to $9,005 during the year (2024: $7,005). Associates We disclose significant associates in Note 25 Investments in associates. During the course of the financial year, transactions conducted with all associates were on terms equivalent to those made on an arm’s length basis. | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | | The Company | | | 2025 | 2024 | 2025 | 2024 | | | $'000 | $'000 | $'000 | $'000 | | Amounts receivable from associates | | | | | | | 14 | 19 | - | - | | Amounts payable to associates | 1,197 | 1,064 | - | - | | Interest revenue from associates | | | | | | | - | - | - | - | | Interest expense to associates | | | | | | | 55 | 76 | - | - | | Other revenue from associates | | | | | | | - | - | - | - | | Other expenses paid to associates | | | | | | | 2,404 | 2,933 | - | - | | Dividend income from associates | | | | | | | 36,741 | 13,771 | - | - | | Undrawn facilities | | | | | | 1 | | | | | | | 914 | 962 | - | - | 1. Comparatives have been amended to include unutilised limits from credit cards. There have been no material guarantees given or received. No amounts receivable from associates have been written-off during the period, nor individual provisions raised in respect of these balances. Subsidiaries We disclose material controlled entities in Note 24 Controlled entities. During the financial year, subsidiaries conducted transactions with each other and with associates on terms equivalent to those on an arm’s length basis. As at 30 September 2025, we consider all outstanding amounts on these transactions to be fully collectible. Other intragroup transactions include providing management and administrative services, staff training, data processing and technology facilities, transfer of tax losses, and the leasing of premises and equipment. The Company also issued letters of comfort and guarantees in respect of certain subsidiaries in the normal course of business. 193 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 193 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 30. Related party disclosures (continued) Related entities Transactions with related entities include leasing arrangements, funding activities, deposits and tax funding arrangements. These transactions are conducted on terms equivalent to those on an arm’s length basis. As at 30 September 2025, we consider all outstanding amounts on these transactions to be fully recoverable. The following balances with related ANZ Group entities were outstanding at 30 September: | | | | | --- | --- | --- | | | 2025 | | | | $m | | | | | 2024 | | | | $m | | Amounts due from ultimate controlling entity | - | | | | | 36 | | Amounts due from other related entities | 630 | | | | | 755 | | Amounts due to ultimate controlling entity | 3 | | | | | 10 | | Amount due to parent entity | - | | | | | 47 | | Amounts due to other related entities | 311 | | | | | 315 | | Deposits from ultimate controlling entity | 1,029 | | | | | 1,258 | | Deposits from other related entities | 135 | | | | | 165 | | Undrawn facilities for other related entities | 122 | 105 | The following transactions occurred with related ANZ Group entities: | | | | | --- | --- | --- | | | 2025 | | | | $m | | | | | 2024 | | | | $m | | Dividend paid to parent entity | | | | | 4,580 | 5,267 | | Capital return to parent entity | | | | | - | 2,039 | | Interest paid to ultimate controlling entity | | | | | 44 | 28 | | Interest paid to other related entities | | | | | 54 | 45 | | Other expenses paid to other related entities | | | | | 19 | 7 | | Interest received from other related entities | | | | | 62 | 64 | | Other revenue received from other related entities | | | | | 27 | 34 | In addition, ANZBGL has right-of-use assets of $49 8 million (2024: $536 million) and lease liabilities of $618 million (2024: $672 million) with ANZ Group Services Pty Ltd at 30 September 2025. For the year ended 30 September 2025, the associated depreciation on the right-of-use assets was $37 million (2024: $43 million) and interest paid on the lease liabilities was $36 million (2024: $29 million) (the interest paid on lease liabilities has been included in the table above within interest paid to other related entities). 194 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 194 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 194 30. Related party disclosures (continued) Related entities Transactions with related entities include leasing arrangements, funding activities, deposits and tax funding arrangements. These transactions are conducted on terms equivalent to those on an arm’s length basis. As at 30 September 2025, we consider all outstanding amounts on these transactions to be fully recoverable. The following balances with related ANZ Group entities were outstanding at 30 September: 2025 $m 2024 $m Amounts due from ultimate controlling entity - 36 Amounts due from other related entities 630 755 Amounts due to ultimate controlling entity 3 10 Amount due to parent entity - 47 Amounts due to other related entities 311 315 Deposits from ultimate controlling entity 1,029 1,258 Deposits from other related entities 135 165 Undrawn facilities for other related entities 122 105 The following transactions occurred with related ANZ Group entities: 2025 $m 2024 $m Dividend paid to parent entity 4,580 5,267 Capital return to parent entity - 2,039 Interest paid to ultimate controlling entity 44 28 Interest paid to other related entities 54 45 Other expenses paid to other related entities 19 7 Interest received from other related entities 62 64 Other revenue received from other related entities 27 34 In addition, ANZBGL has right-of-use assets of $498 million (2024: $536 million) and lease liabilities of $618 million (2024: $672 million) with ANZ Group Services Pty Ltd at 30 September 2025. For the year ended 30 September 2025, the associated depreciation on the right-of-use assets was $37 million (2024: $43 million) and interest paid on the lease liabilities was $36 million (2024: $29 million) (the interest paid on lease liabilities has been included in the table above within interest paid to other related entities). 194 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 31. Commitments, contingent liabilities and contingent assets Credit related commitments and contingencies | | | | | | | --- | --- | --- | --- | --- | | | Consolidated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $m | $m | $m | $m | | Contract amount of: | | | | | | Undrawn facilities | | | | | | 1 | | | | | | | 193,177 | 184,890 | 156,746 | 149,577 | | Guarantees and letters of credit | | | | | | | 21,514 | 22,509 | 19,367 | 19,515 | | Performance related contingencies | | | | | | | 27,403 | 26,501 | 25,854 | 25,944 | | Total | | | | | | | 242,094 | 233,900 | 201,967 | 195,036 | 1. 2024 was restated to exclude commitments that can be unconditionally cancelled at any time without notice to align to current period presentation Undrawn facilities The majority of undrawn facilities are subject to customers maintaining specific credit and other requirements or conditions. Many of these facilities are expected to be only partially used, and others may never be used at all. As such, the total of the nominal principal amounts is not necessarily representative of future liquidity risks or future cash requirements. Based on the earliest date on which the Group may be required to pay, the full amount of undrawn facilities for the Group mature within 12 months. Guarantees, letters of credit and performance related contingencies Guarantees, letters of credit and performance related contingencies relate to transactions that the Group has entered into as principal. Letters of credit involve the Group issuing letters of credit guaranteeing payment in favour of an exporter. They are secured against an underlying shipment of goods or backed by a confirmatory letter of credit from another bank. Performance-related contingencies are liabilities that oblige the Group to make payments to a third party if the customer fails to fulfil its non-monetary obligations under the contract. To reflect the risks associated with these transactions, we apply the same credit origination, portfolio management and collateral requirements that we apply to loans. The contract amount represents the maximum potential amount that we could lose if the counterparty fails to meet its financial obligations. As the facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements. Based on the earliest date on which the Group may be required to pay, the full amount of guarantees and letters of credit and performance-related contingencies for the Group mature within 12 months. Contingent liabilities and contingent assets There are outstanding court proceedings, claims and possible claims for and against the Group. Where relevant, expert legal advice has been obtained and, in the light of such advice, provisions (refer to Note 21 Other provisions) and/or disclosures as deemed appropriate have been made. In some instances we have not disclosed the estimated financial impact of the individual items either because it is not practicable to do so or because such disclosure may prejudice the interests of the Group. A description of the contingent liabilities and contingent assets as at 30 September 2025 is set out below. Contingent liabilities Regulatory and customer exposures The Group regularly engages with its domestic and international regulators and other statutory and supervisory bodies. The nature of these regulatory interactions can be wide ranging and include regulatory investigations, surveillance and reviews, reportable situations, formal and informal inquiries and regulatory supervisory activities in Australia, New Zealand and globally. The Group also receives notices and requests for information from its regulators and other bodies from time to time as part of both industry-wide and Group-specific reviews and makes disclosures to its regulators at its own instigation. There has been a recent increase in the number of matters on which the Group has engaged with its regulators. Recent interactions relate to matters including: • markets transactions and data reporting; • the ASIC Matters Resolution Program within Australia Retail, which covers a range of areas, specifically: ANZ’s Online Saver product, hardship processes, deceased estates, breach reporting, event management, customer remediation and complaints; • anti-money laundering and counter-terrorism financing obligations, processes and procedures; • Common Reporting Standard and Foreign Account Tax Compliance Act obligations, processes and reporting; and • non-financial risk (NFR) management practices including the application of interest and fees on certain products and the financial accountability regime. The possible exposures associated with the Group’s regulatory interactions may include civil enforcement actions, criminal proceedings, fines and penalties, imposition of capital or liquidity requirements, customer remediation, the requirement to conduct independent reviews, sanctions or the exercise of other regulatory powers. There may also be exposures to customers, third parties and shareholders which are additional to any regulatory exposures. These could include class actions or claims for compensation or other remedies. The outcomes and total costs associated with these possible regulatory, customer and other exposures remain uncertain. 195 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 195 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 31. Commitments, contingent liabilities and contingent assets #### (continued) Contingent liabilities (continued) Non-financial risk management enforceable undertaking On 3 April 2025, the Group announced it had entered into a court enforceable undertaking (CEU) with APRA for matters relating to NFR management practices and risk culture across the Group and accepted an additional operational risk capital overlay of $250 million. The CEU followed ongoing conversations between the Group and APRA regarding APRA’s concerns about the Group’s NFR management practices and risk culture. It also followed the emergence of issues in ANZBGL’s Global Markets business which led to APRA in August 2024 expressing its concerns about the Group’s NFR uplift program of work. As part of the CEU agreed with APRA, the Group appointed an independent reviewer to conduct an enterprise-wide independent review to identify the root causes and behavioural drivers of shortcomings in ANZ’s NFR management practices and NFR culture. On 30 September 2025, ANZ submitted its Root Cause Remediation Plan (RCRP) to APRA as required by the CEU. ANZ has appointed Promontory to provide independent assurance of its progress against the RCRP. The CEU provides that upon any breach of the terms of the CEU, APRA may take regulatory action as it considers appropriate in the circumstances, including action under section 18A of the Banking Act 1959 (Cth). ASIC settlement on Australian Markets and Retail matters In September 2025, the Company entered into an agreement with the Australian Securities and Investments Commission (ASIC) to resolve five matters within its Australian Markets and Australia Retail businesses that were the subject of separate regulatory investigations. Under the agreement, which requires Federal Court approval, the Company is subject to the following penalties: • $85 million for the Company’s role as duration manager in the execution of a 2023 issuance of 10-year Treasury Bonds by the Australian Office of Financial Management (AOFM); • $40 million for submitting inaccurate monthly secondary bond turnover data to the AOFM over almost a two-year period, making a false or misleading annual attestation to the AOFM in relation to that data and failing to lodge a report with ASIC in respect of those inaccuracies; • $40 million for its failure to pay acquisition bonus interest on certain Online Saver accounts and displaying inaccurate rates; • $40 million for breaching its obligations in relation to its handling of customer hardship notices; and • $35 million relating to breaches of its obligations concerning deceased estates. A provision has been recognised for expected costs associated with these matters as at 30 September 2025. While the penalties expressed above have been submitted to the Court by the Company and ASIC on an agreed basis, the Court must satisfy itself that the submitted penalty is appropriate. The Court has power to order the agreed penalty or a different penalty. South African rate action In February 2017, the South African Competition Commission commenced proceedings against local and international banks including the Company alleging breaches of the cartel provisions of the South African Competition Act in respect of trading in the South African rand. The potential civil penalty or other financial impact is uncertain. Onepath superannuation litigation In December 2020, a class action was brought against OnePath Custodians, OnePath Life and the Company alleging that OnePath Custodians breached its obligations under superannuation legislation, and its duties as trustee, in respect of superannuation investments and fees. The claim also alleges that the Company was involved in some of OnePath Custodians’ investment breaches. An agreement to settle the claim was reached in October 2024. The Company will contribute $14 million to the settlement, which is covered by existing provisions held at 30 September 2025. The settlement is without admission of liability and remains subject to court approval. New Zealand loan information litigation In September 2021, a representative proceeding was brought against ANZ Bank New Zealand Limited, alleging breaches of disclosure requirements under consumer credit legislation in respect of variation letters sent to certain loan customers. ANZ Bank New Zealand Limited is defending the allegations. Security recovery actions Various claims have been made or are anticipated, arising from security recovery actions taken to resolve impaired assets. These claims will be defended. Warranties, indemnities and performance management fees The Group has provided warranties, indemnities and other commitments in favour of the seller/purchaser and other persons in connection with various acquisitions/disposals of businesses and assets and other transactions, covering a range of matters and risks. It is exposed to claims under those warranties, indemnities and commitments, some of which are currently active. The outcomes and total costs associated with these exposures remain uncertain. The Group has entered an arrangement to pay performance management fees to external fund managers in the event predetermined performance criteria are satisfied in relation to certain Group investments. The satisfaction of the performance criteria and associated performance management fee remains uncertain. 196 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 196 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 196 31. Commitments, contingent liabilities and contingent assets (continued) Contingent liabilities (continued) Non-financial risk management enforceable undertaking On 3 April 2025, the Group announced it had entered into a court enforceable undertaking (CEU) with APRA for matters relating to NFR management practices and risk culture across the Group and accepted an additional operational risk capital overlay of $250 million. The CEU followed ongoing conversations between the Group and APRA regarding APRA’s concerns about the Group’s NFR management practices and risk culture. It also followed the emergence of issues in ANZBGL’s Global Markets business which led to APRA in August 2024 expressing its concerns about the Group’s NFR uplift program of work. As part of the CEU agreed with APRA, the Group appointed an independent reviewer to conduct an enterprise-wide independent review to identify the root causes and behavioural drivers of shortcomings in ANZ’s NFR management practices and NFR culture. On 30 September 2025, ANZ submitted its Root Cause Remediation Plan (RCRP) to APRA as required by the CEU. ANZ has appointed Promontory to provide independent assurance of its progress against the RCRP. The CEU provides that upon any breach of the terms of the CEU, APRA may take regulatory action as it considers appropriate in the circumstances, including action under section 18A of the Banking Act 1959 (Cth). ASIC settlement on Australian Markets and Retail matters In September 2025, the Company entered into an agreement with the Australian Securities and Investments Commission (ASIC) to resolve five matters within its Australian Markets and Australia Retail businesses that were the subject of separate regulatory investigations. Under the agreement, which requires Federal Court approval, the Company is subject to the following penalties: • $85 million for the Company’s role as duration manager in the execution of a 2023 issuance of 10-year Treasury Bonds by the Australian Office of Financial Management (AOFM); • $40 million for submitting inaccurate monthly secondary bond turnover data to the AOFM over almost a two-year period, making a false or misleading annual attestation to the AOFM in relation to that data and failing to lodge a report with ASIC in respect of those inaccuracies; • $40 million for its failure to pay acquisition bonus interest on certain Online Saver accounts and displaying inaccurate rates; • $40 million for breaching its obligations in relation to its handling of customer hardship notices; and • $35 million relating to breaches of its obligations concerning deceased estates. A provision has been recognised for expected costs associated with these matters as at 30 September 2025. While the penalties expressed above have been submitted to the Court by the Company and ASIC on an agreed basis, the Court must satisfy itself that the submitted penalty is appropriate. The Court has power to order the agreed penalty or a different penalty. South African rate action In February 2017, the South African Competition Commission commenced proceedings against local and international banks including the Company alleging breaches of the cartel provisions of the South African Competition Act in respect of trading in the South African rand. The potential civil penalty or other financial impact is uncertain. Onepath superannuation litigation In December 2020, a class action was brought against OnePath Custodians, OnePath Life and the Company alleging that OnePath Custodians breached its obligations under superannuation legislation, and its duties as trustee, in respect of superannuation investments and fees. The claim also alleges that the Company was involved in some of OnePath Custodians’ investment breaches. An agreement to settle the claim was reached in October 2024. The Company will contribute $14 million to the settlement, which is covered by existing provisions held at 30 September 2025. The settlement is without admission of liability and remains subject to court approval. New Zealand loan information litigation In September 2021, a representative proceeding was brought against ANZ Bank New Zealand Limited, alleging breaches of disclosure requirements under consumer credit legislation in respect of variation letters sent to certain loan customers. ANZ Bank New Zealand Limited is defending the allegations. Security recovery actions Various claims have been made or are anticipated, arising from security recovery actions taken to resolve impaired assets. These claims will be defended. Warranties, indemnities and performance management fees The Group has provided warranties, indemnities and other commitments in favour of the seller/purchaser and other persons in connection with various acquisitions/disposals of businesses and assets and other transactions, covering a range of matters and risks. It is exposed to claims under those warranties, indemnities and commitments, some of which are currently active. The outcomes and total costs associated with these exposures remain uncertain. The Group has entered an arrangement to pay performance management fees to external fund managers in the event predetermined performance criteria are satisfied in relation to certain Group investments. The satisfaction of the performance criteria and associated performance management fee remains uncertain. 196 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 31. Commitments, contingent liabilities and contingent assets #### (continued) Contingent liabilities (continued) Clearing and settlement obligations Certain group companies have a commitment to comply with rules governing various clearing and settlement arrangements which could result in a credit risk exposure and loss if another member institution fails to settle its payment clearing activities. The Group’s potential exposure arising from these arrangements is unquantifiable in advance. Certain group companies hold memberships of central clearing houses, including ASX Clear (Futures), London Clearing House (LCH) SwapClear, Korea Exchange (KRX), Hong Kong Exchange (HKEX), the Clearing Corporation of India, Taiwan Futures Exchange and the Shanghai Clearing House. These memberships allow the relevant group company to centrally clear derivative instruments in line with cross-border regulatory requirements. Common to all of these memberships is the requirement for the relevant group company to make default fund contributions. In the event of a default by another member, the relevant group company could potentially be required to commit additional default fund contributions which are unquantifiable in advance. Parent entity guarantees Certain group companies have issued letters of comfort and guarantees in respect of certain subsidiaries in the normal course of business. Under these letters and guarantees, the issuing entity undertakes to ensure that those subsidiaries continue to meet their financial obligations, subject to certain conditions including that the subsidiary remains a controlled entity. Contingent assets National Housing Bank The Company is pursuing recovery of the proceeds of certain disputed cheques which were credited to the account of a former Grindlays customer in the early 1990s. The disputed cheques were drawn on the National Housing Bank (NHB) in India. Proceedings between Grindlays and NHB concerning the proceeds of the cheques were resolved in early 2002. Recovery is now being pursued from the estate of the Grindlays customer who received the cheque proceeds. Any amounts recovered are to be shared between the Company and NHB. 197 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 197 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() 32. Auditor fees | | | | | | | --- | --- | --- | --- | --- | | | Consol | | | | | | idated | | The Company | | | | 2025 | 2024 | 2025 | 2024 | | | $’000 | $’000 | $’000 | $’000 | | KPMG Australia | | | | | | Audit or review of financial reports | 14,923 | 11,016 | 12,304 | 10,486 | | Audit-related services | | | | | | 1 | | | | | | | | | | | | | 5,643 | 4,597 | 4,533 | 4,528 | | Non-audit services | | | | | | 2 | | | | | | | | | | | | | 168 | 27 | 168 | 27 | | Total | | | | | | 3 | | | | | | | | | | | | | 20,734 | 15,640 | 17,005 | 15,041 | | Overseas related practices of KPMG Australia | | | | | | Audit or review of financial reports | 6,163 | 5,930 | 2,223 | 2,058 | | Audit-related services | | | | | | 1 | | | | | | | | | | | | | 2,303 | 2,191 | 1,022 | 809 | | Non-audit services | | | | | | 2 | | | | | | | | | | | | | 96 | 153 | - | - | | Total | | | | | | | 8,562 | 8,274 | 3,245 | 2,867 | | Total auditor fees | | | | | | 4 | | | | | | | | | | | | | 29,296 | 23,914 | 20,250 | 17,908 | 1. Group audit-related services comprise prudential and regulatory services of $5.29 million (2024: $4.16 million), comfort letters $0.64 million (2024: $0.72 million) and other services $2.02 million (2024: $1.91 million). Company audit-related services comprise prudential and regulatory services of $3.94 million (2024: $3.76 million), comfort letters $0.59 million (2024: $0.68 million) and other services $1.03 million (2024: $0.90 million). 2. The nature of non-audit services for the Group includes methodology, procedural/operational and administrative reviews. Further details are provided in the Directors’ Report. 3. Inclusive of goods and services tax. 4. Total auditor fees do not include fees paid to other audit firms where KPMG is in a joint audit arrangement or not the auditor for the Group amounting to $0.76 million (2024: $0.80 million). Total auditor fees do not include fees paid to other audit firms where KPMG is in a joint audit arrangement or not the auditor for the Company amounting to $0.49 million (2024: $0.56 million). The Group’s Policy allows KPMG Australia or any of its related practices to provide assurance and other audit-related services that, while outside the scope of the statutory audit, are consistent with the role of an external auditor. These include regulatory and prudential reviews requested by regulators such as APRA. Any other services that are not audit or audit-related services are non-audit services. The Policy allows certain non-audit services to be provided where the service would not contravene auditor independence requirements. KPMG Australia or any of its related practices may not provide services that are perceived to be in conflict with the role of the external auditor or breach auditor independence. These include consulting advice and subcontracting of operational activities normally undertaken by management, and engagements where the external auditor may ultimately be required to express an opinion on its own work. 198 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 198 Australia and New Zealand Banking Group Limited 2025 Annual Report s ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 198 32. Auditor fees Consol idated The Company 2025 2024 2025 2024 $’000 $’000 $’000 $’000 KPMG Australia Audit or review of financial reports 14,923 11,0 16 12,304 10,486 Audit-related services 1 5,643 4,597 4,533 4,528 Non-audit services 2 168 27 168 27 Total 3 20,734 15,640 17,005 15,041 Overseas related practices of KPMG Australia Audit or review of financial reports 6,163 5,930 2,223 2,058 Audit-related services 1 2,303 2,191 1,022 809 Non-audit services 2 96 153 - - Total 8,562 8,274 3,245 2,867 Total au ditor fees 4 29,296 23,914 20,250 17,908 1. Group audit-related services comprise prudential and regulatory services of $5.29 million (2024: $4.16 million), comfort letters $0.64 million (2024: $0.72 million) and other services $2.02 million (2024: $1.91 million). Company audit-related services comprise prudential and regulatory services of $3.94 million (2024: $3.76 million), comfort letters $0.59 million (2024: $0.68 million) and other services $1.03 million (2024: $0.90 million). 2. The nature of non-audit services for the Group includes methodology, procedural/operational and administrative reviews. Further details are provided in the Directors’ Report. 3. Inclusive of goods and services tax. 4. Total auditor fees do not include fees paid to other audit firms where KPMG is in a joint audit arrangement or not the auditor for the Group amounting to $0.76 million (2024: $0.80 million). Total auditor fees do not include fees paid to other audit firms where KPMG is in a joint audit arrangement or not the auditor for the Company amounting to $0.49 million (2024: $0.56 million). The Group’s Policy allows KPMG Australia or any of its related practices to provide assurance and other audit-related services that, while outside the scope of the statutory audit, are consistent with the role of an external auditor. These include regulatory and prudential reviews requested by regulators such as APRA. Any other services that are not audit or audit-related services are non-audit services. The Policy allows certain non-audit services to be provided where the service would not contravene auditor independence requirements. KPMG Australia or any of its related practices may not provide services that are perceived to be in conflict with the role of the external auditor or breach auditor independence. These include consulting advice and subcontracting of operational activities normally undertaken by management, and engagements where the external auditor may ultimately be required to express an opinion on its own work. 198 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report #### 33.Suncorp Bank acquisition On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Norfina Limited (formerly known as Suncorp-Metway Limited, and trading as Suncorp Bank). During 2025, the Group completed its purchase price allocation (PPA), to identify and measure the assets acquired and liabilities assumed at acquisition date. The significant adjustments to provisionally determined balances arising from the PPA exercise included the recognition of core deposit and brand intangible assets, fair value adjustments to gross loans and advances to reflect changes in interest rates and credit since loan origination, provisions for contingent liabilities and related indemnities and related deferred tax balances with a corresponding decrease to goodwill of $56 million. The final goodwill balance of $1,346 million is attributable to the assembled workforce and expected synergies arising from the economies of scale from the integration and consolidation of platforms and funding benefits. It will not be deductible for tax purposes. The core deposit intangible was valued at $633 million under a discounted cash flow approach using a multi-period excess earnings model to calculate the present value of the funding costs savings obtained, comparing the difference between the cost of existing core deposits and the cost of alternative sources of funding over the expected life of the core deposit base. The discount rates used were calculated using the cost of capital plus a risk premium. The value of the core deposit intangible asset is influenced by its estimated lifespan and by fluctuations in the estimated costs of alternative funding options. The asset will be amortised over its expected life of 6 years. The table below sets out the PPA adjustments recognised in respect of the 31 July 2024 acquisition balance sheet. Prior periods have not been restated. | | | | | | --- | --- | --- | --- | | | Provisional | | | | | | Adjus | | | | | tments | | | | | | Final | | Assets acquired and liabilities assumed as at acquisition date | $m | $m | | | | | | $m | | Assets | | | | | Cash and cash equivalents | 1,333 | - | 1,333 | | Collateral paid | 80 | - | | | | | | 80 | | Trading assets | 2,307 | - | | | | | | 2,307 | | Derivative financial instruments | 310 | - | | | | | | 310 | | Investment securities | 9,920 | - | | | | | | 9,920 | | Gross loans and advances | 69,745 | (198) | | | | | | 69,547 | | Deferred tax assets | 48 | (48) | | | | | | - | | Intangible assets | 103 | 685 | | | | | | 788 | | Other assets | 431 | 11 | | | | | | 442 | | Total assets | 84,277 | 450 | | | | | | 84,727 | | Liabilities | | | | | Collateral received | 48 | - | 48 | | Deposits and other borrowings | 62,438 | (1) | | | | | | 62,437 | | Derivative financial instruments | 279 | - | | | | | | 279 | | Deferred tax liabilities | - | 269 | | | | | | 269 | | Payables and other liabilities | 731 | (6) | | | | | | 725 | | Provisions | 89 | 142 | | | | | | 231 | | Debt issuances | 15,847 | (10) | | | | | | 15,837 | | Total liabilities | 79,432 | 394 | | | | | | 79,826 | | Net assets acquired | 4,845 | 56 | 4,901 | | Cash consideration paid | | | | | 1 | | | | | | 6,247 | - | 6,247 | | Goodwill | 1,402 | (56) | | | | | | 1,346 | 1. The cash consideration of $6,247 million includes payment for Suncorp Bank’s Tier 2 notes ($606 million) and Capital Notes ($564 million). 199 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 199 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### 33.Suncorp Bank acquisition (continued) #### Recognition and measurement Business combinations are accounted for using the acquisition method of accounting. The cost of acquisition is measured at the fair value of the transferred consideration, including where relevant, any contingent consideration. Acquisition-related costs are expensed when incurred. Identifiable assets and liabilities, along with contingent consideration, are valued at their fair values on the acquisition date. Goodwill is calculated as the excess of the consideration over the net of identifiable assets and liabilities. The acquired business operations are included in our financial statements from the acquisition date. 34. Events since the end of the financial year Other than matters outlined in the Financial Report, there have been no significant events from 30 September 2025 to the date of signing this report. 200 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 200 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Australi a and New Zealand Banking Group Limited 2025 Annual Report 200 #### 33.Suncorp Bank acquisition (continued) Business combinations are accounted for using the acquisition method of accounting. The cost of acquisition is measured at the fair value of the transferred consideration, including where relevant, any contingent consideration. Acquisition-related costs are expensed when incurred. Identifiable assets and liabilities, along with contingent consideration, are valued at their fair values on the acquisition date. Goodwill is calculated as the excess of the consideration over the net of identifiable assets and liabilities. The acquired business operations are included in our financial statements from the acquisition date. 34. Events since the end of the financial year Other than matters outlined in the Financial Report, there have been no significant events from 30 September 2025 to the date of signing this report. #### Recognition and measurement 200 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report #### Consolidated Entity Disclosure Statement #### Basis of preparation This Consolidated Entity Disclosure Statement has been prepared in accordance with subsection 295(3A) of the Corporations Act 2001. The entities listed in the statement are for Australia and New Zealand Banking Group Limited and all its controlled entities as at 30 September 2025 in accordance with AASB 10 Consolidated Financial Statements. Entity Name Entity Type Place Formed or Incorporated % of Share Capital Held Tax Residency (Australia or Foreign Jurisdiction) ANZ Finance American Samoa, Inc Body Corporate American Samoa 100% American Samoa 1835 Funding Pty Limited Body Corporate Australia 100% Australia ACN 008 647 185 Pty Ltd 1 Body Corporate Australia 100% Australia ANZ Capital No. 1 Pty Ltd Body Corporate Australia 100% Australia ANZ Commodity Trading Pty Ltd Body Corporate Australia 100% Australia ANZ Fiduciary Services Pty Ltd Body Corporate Australia 100% Australia ANZ Funds Pty Ltd Body Corporate Australia 100% Australia ANZ Global Services and Operations Pty Limited Body Corporate Australia 100% Australia ANZ ILP Pty Ltd Body Corporate Australia 100% Australia ANZ International Private Limited Body Corporate Singapore 100% Australia ANZ Leasing (BWC Financing) Pty Ltd Body Corporate Australia 100% Australia ANZ Lenders Mortgage Insurance Pty Limited Body Corporate Australia 100% Australia ANZ Nominees Pty Ltd Body Corporate Australia 100% Australia ANZ Properties (Australia) Pty Ltd Body Corporate Australia 100% Australia ANZ Residential Covered Bond Trust Trust Australia N/A Australia ANZ Rewards No. 2 Pty Ltd Body Corporate Australia 100% Australia ANZ Securities (Holdings) Pty Ltd Body Corporate Australia 100% Australia ANZ Securities Limited Body Corporate Australia 100% Australia ANZ Wealth Australia Pty Ltd Body Corporate Australia 100% Australia ANZEST Pty Ltd Body Corporate Australia 100% Australia APOLLO Series 2008-1R Trust Trust Australia N/A Australia APOLLO Series 2017-1 Trust Trust Australia N/A Australia APOLLO Series 2017-2 Trust Trust Australia N/A Australia APOLLO Series 2018-1 Trust Trust Australia N/A Australia APOLLO Series 2022-1 Trust Trust Australia N/A Australia APOLLO Series 2023-1 Trust Trust Australia N/A Australia APOLLO Series 2024-1 Trust Trust Australia N/A Australia APOLLO Series 2025-1 Trust Trust Australia N/A Australia APOLLO Warehouse Trust No. 2 Trust Australia N/A Australia Australia and New Zealand Banking Group Limited Body Corporate Australia 100% Australia Esanda Finance Corporation Pty Ltd Body Corporate Australia 100% Australia Institutional Securitisation Services Limited Body Corporate Australia 100% Australia Kingfisher Trust 2008-1 Trust Australia N/A Australia Kingfisher Trust 2016-1 Trust Australia N/A Australia Kingfisher Trust 2019-1 Trust Australia N/A Australia Kingfisher Trust 2025-1 Trust Australia N/A Australia Norfina Advances Corporation Pty Ltd Body Corporate Australia 100% Australia Norfina Covered Bond Trust Trust Australia N/A Australia Norfina Limited Body Corporate Australia 100% Australia Postbank Equity Trust Trust Australia N/A Australia SBGH Limited Body Corporate Australia 100% Australia Shout for Good Pty Ltd Body Corporate Australia 100% Australia SME Management Pty Limited Body Corporate Australia 100% Australia 1. ACN 008 647 185 Pty Ltd is trustee of Postbank Equity Trust. 201 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 201 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Consolidated Entity Disclosure Statement (continued) Entity Name Entity Type Place Formed or Incorporated % of Share Capital Held Tax Residency (Australia or Foreign Jurisdiction) Votraint No. 1103 Pty Limited Body Corporate Australia 100% Australia Australia and New Zealand Bank (China) Company Limited Body Corporate China 100% China ANZ Pacific Operations Pte Ltd Body Corporate Fiji 100% Fiji ANZ Europe, S.A. Body Corporate France 100% France ANZ Capital Private Limited Body Corporate India 100% India ANZ Operations And Technology Private Limited Body Corporate India 100% India ANZ Support Services India Private Limited Body Corporate India 100% India PT Bank ANZ Indonesia Body Corporate Indonesia 99% Indonesia ANZ Securities (Japan), Ltd Body Corporate Japan 100% Japan ANZ Bank (Kiribati) Limited Body Corporate Kiribati 75% Kiribati ANZ Bank New Zealand Limited Body Corporate New Zealand 100% New Zealand ANZ Custodial Services New Zealand Limited Body Corporate New Zealand 100% New Zealand ANZ Holdings (New Zealand) Limited Body Corporate New Zealand 100% New Zealand ANZ Investment Services (New Zealand) Limited Body Corporate New Zealand 100% New Zealand ANZ National Staff Superannuation Limited Body Corporate New Zealand 100% New Zealand ANZ New Zealand (Int'l) Limited Body Corporate New Zealand 100% New Zealand ANZ New Zealand Investments Holdings Limited Body Corporate New Zealand 100% New Zealand ANZ New Zealand Investments Limited Body Corporate New Zealand 100% New Zealand ANZNZ Covered Bond Trust Trust New Zealand N/A New Zealand Arawata Assets Limited Body Corporate New Zealand 100% New Zealand Endeavour Finance Limited Body Corporate New Zealand 100% New Zealand Kingfisher NZ Trust 2008-1 Trust New Zealand N/A New Zealand OneAnswer Nominees Limited Body Corporate New Zealand 100% New Zealand 8 and 9 Chester Limited Body Corporate Papua New Guinea 100% Papua New Guinea Australia and New Zealand Banking Group (PNG) Limited Body Corporate Papua New Guinea 100% Papua New Guinea ANZ Global Services And Operations (Manila) Inc Body Corporate Philippines 100% Philippines ANZ Bank (Samoa) Limited Body Corporate Samoa 100% Samoa ANZcover Insurance Private Ltd Body Corporate Singapore 100% Singapore ANZ (Thai) Public Company Limited (in Liquidation) Body Corporate Thailand 100% Thailand ANZ Pensions (UK) Limited Body Corporate United Kingdom 100% United Kingdom ANZ Securities, Inc. Body Corporate United States 100% United States ANZ Bank (Vanuatu) Limited 1 Body Corporate Vanuatu 100% N/A La Serigne Limited 1 Body Corporate Vanuatu 100% N/A Whitehall Investments Ltd 1 Body Corporate Vanuatu 100% N/A ANZ Bank (Vietnam) Limited Body Corporate Vietnam 100% Vietnam 1. Vanuatu does not have a corporate tax regime and therefore the concept of tax residency does not apply. 202 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 202 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() Austra lia and New Zealand Banking Group Limited 2025 Annual Report 202 #### Consolidated Entity Disclosure Statement (continued) Entity Name Entity Type Place Formed or Incorporated % of Share Capital Held Tax Residency (Australia or Foreign Jurisdiction) Votraint No. 1103 Pty Limited Body Corporate Australia 100% Australia Australia and New Zealand Bank (China) Company Limited Body Corporate China 100% China ANZ Pacific Operations Pte Ltd Body Corporate Fiji 100% Fiji ANZ Europe, S.A. Body Corporate France 100% France ANZ Capital Private Limited Body Corporate India 100% India ANZ Operations And Technology Private Limited Body Corporate India 100% India ANZ Support Services India Private Limited Body Corporate India 100% India PT Bank ANZ Indonesia Body Corporate Indonesia 99% Indonesia ANZ Securities (Japan), Ltd Body Corporate Japan 100% Japan ANZ Bank (Kiribati) Limited Body Corporate Kiribati 75% Kiribati ANZ Bank New Zealand Limited Body Corporate New Zealand 100% New Zealand ANZ Custodial Services New Zealand Limited Body Corporate New Zealand 100% New Zealand ANZ Holdings (New Zealand) Limited Body Corporate New Zealand 100% New Zealand ANZ Investment Services (New Zealand) Limited Body Corporate New Zealand 100% New Zealand ANZ National Staff Superannuation Limited Body Corporate New Zealand 100% New Zealand ANZ New Zealand (Int'l) Limited Body Corporate New Zealand 100% New Zealand ANZ New Zealand Investments Holdings Limited Body Corporate New Zealand 100% New Zealand ANZ New Zealand Investments Limited Body Corporate New Zealand 100% New Zealand ANZNZ Covered Bond Trust Trust New Zealand N/A New Zealand Arawata Assets Limited Body Corporate New Zealand 100% New Zealand Endeavour Finance Limited Body Corporate New Zealand 100% New Zealand Kingfisher NZ Trust 2008-1 Trust New Zealand N/A New Zealand OneAnswer Nominees Limited Body Corporate New Zealand 100% New Zealand 8 and 9 Chester Limited Body Corporate Papua New Guinea 100% Papua New Guinea Australia and New Zealand Banking Group (PNG) Limited Body Corporate Papua New Guinea 100% Papua New Guinea ANZ Global Services And Operations (Manila) Inc Body Corporate Philippines 100% Philippines ANZ Bank (Samoa) Limited Body Corporate Samoa 100% Samoa ANZcover Insurance Private Ltd Body Corporate Singapore 100% Singapore ANZ (Thai) Public Company Limited (in Liquidation) Body Corporate Thailand 100% Thailand ANZ Pensions (UK) Limited Body Corporate United Kingdom 100% United Kingdom ANZ Securities, Inc. Body Corporate United States 100% United States ANZ Bank (Vanuatu) Limited 1 Body Corporate Vanuatu 100% N/A La Serigne Limited 1 Body Corporate Vanuatu 100% N/A Whitehall Investments Ltd 1 Body Corporate Vanuatu 100% N/A ANZ Bank (Vietnam) Limited Body Corporate Vietnam 100% Vietnam 1. Vanuatu does not have a corporate tax regime and therefore the concept of tax residency does not apply. 202 Notes to the consolidated financial statements (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report #### Consolidated Entity Disclosure Statement (continued) Determination of tax residency In determining tax residency, the consolidated entity has applied the following interpretations: Australian tax residency “Australian resident” has the meaning provided in the Income Tax Assessment Act 1997 (ITAA). In applying that definition, the consolidated entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5 and Practical Compliance Guideline PCG 2018-009. Foreign tax residency Where an entity is shown as being resident in a foreign jurisdiction, this is taken to mean a resident for the purposes of the law of the foreign jurisdiction relating to foreign income tax, within the meaning of the ITAA. #### Key concepts 203 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 203 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() #### Directors’ Declaration The Directors of Australia and New Zealand Banking Group Limited declare that: a) In the Directors’ opinion: i) the financial statements and notes of the Company and the Consolidated Entity are in accordance with the Corporations Act 2001, including: A. section 296, that they comply with the Australian Accounting Standards and any further requirements of the Corporations Regulations 2001; and B. section 297, that they give a true and fair view of the financial position of the Company and the Consolidated Entity as at 30 September 2025 and of their performance for the year ended on that date; and ii) the Consolidated Entity Disclosure Statement required by section 295(3A) of the Corporations Act 2001 and included on pages 201 to 203 of the financial report is true and correct; and iii) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. b) The notes to the financial statements of the Company and the Consolidated Entity include a statement that the financial statements and notes of the Company and the Consolidated Entity comply with International Financial Reporting Standards; and c) The Directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of the Directors. Paul D O’Sullivan Chairman 7 November 2025 Nuno A Matos Managing Director 204 Australia and New Zealand Banking Group Limited 2025 Annual Report 204 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() #### Directors’ Declaration 204 #### Directors’ Declaration The Directors of Australia and New Zealand Banking Group Limited declare that: a) In the Directors’ opinion: i) the financial statements and notes of the Company and the Consolidated Entity are in accordance with the Corporations Act 2001, including: A. section 296, that they comply with the Australian Accounting Standards and any further requirements of the Corporations Regulations 2001; and B. section 297, that they give a true and fair view of the financial position of the Company and the Consolidated Entity as at 30 September 2025 and of their performance for the year ended on that date; and ii) the Consolidated Entity Disclosure Statement required by section 295(3A) of the Corporations Act 2001 and included on pages 201 to 203 of the financial report is true and correct; and iii) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. b) The notes to the financial statements of the Company and the Consolidated Entity include a statement that the financial statements and notes of the Company and the Consolidated Entity comply with International Financial Reporting Standards; and c) The Directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of the Directors. Paul D O’Sullivan Chairman 7 November 2025 Nuno A Matos Managing Director 204 Australia and New Zealand Banking Group Limited 2025 Annual Report #### To the shareholders of Australia and New Zealand Banking Group Limited #### Report on the audit of the Financial Report Opinion We have audited the consolidated Financial Report of Australia and New Zealand Banking Group Limited (the Group Financial Report). We have also audited the Financial Report of Australia and New Zealand Banking Group Limited (the Company Financial Report). In our opinion, each of the accompanying Group Financial Report and Company Financial Report gives a true and fair view, including of the Group’s and of the Company’s financial position as at 30 September 2025 and of its financial performance for the year then ended, in accordance with the Corporations Act 2001, in compliance with Australian Accounting and the Corporations Regulations 2001. The respective Financial Reports of the Group and Company comprise: • Balance Sheets as at 30 September 2025 • Income Statements, Statements of Comprehensive Income, Statements of Changes in Equity, and Cash Flow Statements for the year then ended • Consolidated entity disclosure statement and accompanying basis of preparation as at 30 September 2025 • Notes, including material accounting policies • Directors’ Declaration The Group consists of Australia and New Zealand Banking Group Limited (the Company) and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards and International Standards on Auditing. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group and Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. Key Audit Matters The Key Audit Matters we identified for the Group and Company are: • Allowance for expected credit loss es • Subjective and complex valuation of certain financial instruments held at fair value • IT sys tems and controls. The Key Audit Matters of the G G r r o o u p are: • Carrying value of investment in PT Bank Pan Indonesia (PT Panin) • Acquisition accounting finalisation for the purchase of Suncorp Bank Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. 205 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 205 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Key Audit Matters (continued) Allowance for expected credit losses (Group $4,778m; Company $4,778m) Refer to Note 13 to the Financial Report. T T h h e e K K e e y y A A u u d d i i t t M M a a t t t t e e r r Allowance for expected credit losses (ECL) is a Key Audit Matter due to the significance of the loans and advances balances to the Group’s financial statements and the inherent complexity of the Group and Company’s expected credit loss models (ECL models) used to measure ECL allowances. These models are reliant on data and estimates including probability weighted economic scenarios and other key assumptions such as defining a significant increase in credit risk (SICR). AASB 9 Financial Instruments requires the Group and Company to measure ECL on a forward-looking basis reflecting a range of economic conditions. Temporary adjustments are made by the Group and Company to address known ECL model limitations or emerging trends in the loan portfolios. We exercise significant judgement in challenging the economic scenarios and the judgmental temporary adjustments the Group and Company applies. Additional subjectivity and judgement is applied in the Group and Company’s modelling due to the heightened uncertainty associated with the impact of the economic outlook and its impact on customers, increasing our audit effort thereon. H H o o w w t t h h e e m m a a t t t t e e r r w w a a s s a a d d d d r r e e s s s s e e d d i i n n o o u u r r a a u u d d i i t t Working with our credit and economic specialists, our audit procedures included assessing the Group’s accounting policies against the requirements of the accounting standard. Additionally, our procedures included testing the Group’s key controls in relation to: • The ECL model governance, monitoring and validation processes which involved assessment of mode l performance; • The assessment and approval of the forward-looking macroeconomic assumptions and scenario weightings through challenge applied by the Group’s internal governance processes; • Reconciliation of the data used in the ECL calculation process to gross balances recorded within the general ledger as well as source sy stems; • Customer credit rating (CCR), a key input into the SICR assumption for wholesale loans (non-retail loans). This covered elements such as: approval of new lending facilities against the Group’s lending policies, monitoring of counterparty credit quality against the Group’s exposure criteria for internal factors specific to the counterparty or external macroeconomic factors, and accuracy and timeliness of CCR and security indicator (SI) assessments against lending policies and regulatory requirements; • IT system controls which record retail loans lending arrears and group exposures into delinquency buckets, and which re-calculate individual allowances. We tested relevant General Information Technology Controls (GITCs) in relation to the key IT applications used by the Group in measuring ECL allowances as detailed in the IT Systems and Controls Key Audit Matter below. In addition to controls testing, our procedures included: • Obtaining an understanding of the Group’s processes to determine ECL allowances, evaluating the ECL model methodologies against established market practices and criteria in the accounting standards. Critically evaluating and challenging ECL model methodology enhancements implemented during the financial year; • Reperforming a sample of credit assessments for wholesale loans controlled by the Group’s workout and recovery team assessed as higher risk or impaired, and a sample of other loans, focusing on larger exposures assessed by the Group as showing signs of deterioration, or in areas of current and emerging risk; • For each loan sampled, we challenged the Group’s assessment of CCR and SI using the customer’s financial position, the valuation of security, and, where relevant, the risk of stranded assets, to inform our overall assessment of loan recoverability and the impact on the credit allowance. To do this, we used the information on the Group’s loan file, portfolio and industry reviews, external rating and publications and, we enquired regarding the facts and circumstances of the case with the Relationship Manager; • Exercising our judgement, our procedures included using our understanding of relevant industries and the macroeconomic environment and comparing data and assumptions used by the Group in recoverability assessments to externally sourced evidence, such as, externa l credit ratings, publicly available audited financial statements and comparable external valuations of collateral held. Where relevant, we assessed the forecast timing of future cash flows in the context of underlying valuations and approved business plans and challenged key assumptions in the valuations; • Recalculated the Customer Behaviour Scorecard (CBS), which is a key input into the SICR assumption for retail loans, for a sample of loans; • Assessing the accuracy of the Group’s ECL model estimates by re-performing, the calculation of the ECL allowance for all modelled ECL using our independently derived calculation tools and comparing this to the amount recorded by the Group; • Challenging the Group’s forward-looking macroeconomic assumptions and scenarios incorporated in the Group’s ECL models. We compared the Group’s forecast GDP, unemployment rates, CPI and property price indices to relevant publicly available macroeconomic information, and considered other known variables and information obtained through our other procedures to identify contradictory indicators; • Testing the implementation of the Group’s SICR methodology by re-performing the staging calculation for all loans taking into consideration movements in the CCR from loan origination and comparing our result to actual staging applied on an individual account level in the Group’s ECL model; • Assessing the accuracy of the data used in the ECL models by checking a sample of data fields, such as, account balance, CBS and CCR to relevant source systems; • Challenging key assumptions used by the Group in their temporary adjustments. This included: o Assessing temporary adjustments against the Group’s ECL model and data deficiencies identified in the Group’s model validation proces ses, particularly in light of the significant volatility in economic scenarios; o Assessing the completeness of temporary adjustments by checking the consistency of risks we identified in the loan portfolios against the Group’s assessment; o Assessing certain temporary adjustments identified by the Group against internal and external information; o Assessing the appropriateness of management’s release of certain key temporary adjustments, including the rationale and supporting evidence; o Recalculating a sample of temporary adjustments. • Assessing the appropriateness of the Group’s disclosures in the Financial Report, using our understanding obtained from our testing and against the requirements of the accounting standards. 206 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() ANZ 2024 Annual Report 206 Key Audit Matters (continued) Allowance for expected credit losses (Group $4,778m; Company $4,778m) Refer to Note 13 to the Financial Report. T T h h e e K K e e y y A A u u d d i i t t M M a a t t t t e e r r Allowance for expected credit losses (ECL) is a Key Audit Matter due to the significance of the loans and advances balances to the Group’s financial statements and the inherent complexity of the Group and Company’s expected credit loss models (ECL models) used to measure ECL allowances. These models are reliant on data and estimates including probability weighted economic scenarios and other key assumptions such as defining a significant increase in credit risk (SICR). AASB 9 Financial Instruments requires the Group and Company to measure ECL on a forward-looking basis reflecting a range of economic conditions. Temporary adjustments are made by the Group and Company to address known ECL model limitations or emerging trends in the loan portfolios. We exercise significant judgement in challenging the economic scenarios and the judgmental temporary adjustments the Group and Company applies. Additional subjectivity and judgement is applied in the Group and Company’s modelling due to the heightened uncertainty associated with the impact of the economic outlook and its impact on customers, increasing our audit effort thereon. H H o o w w t t h h e e m m a a t t t t e e r r w w a a s s a a d d d d r r e e s s s s e e d d i i n n o o u u r r a a u u d d i i t t Working with our credit and economic specialists, our audit procedures included assessing the Group’s accounting policies against the requirements of the accounting standard. Additionally, our procedures included testing the Group’s key controls in relation to: • The ECL model governance, monitoring and validation processes which involved assessment of mode l performance; • The assessment and approval of the forward-looking macroeconomic assumptions and scenario weightings through challenge applied by the Group’s internal governance processes; • Reconciliation of the data used in the ECL calculation process to gross balances recorded within the general ledger as well as source sy stems; • Customer credit rating (CCR), a key input into the SICR assumption for wholesale loans (non-retail loans). This covered elements such as: approval of new lending facilities against the Group’s lending policies, monitoring of counterparty credit quality against the Group’s exposure criteria for internal factors specific to the counterparty or external macroeconomic factors, and accuracy and timeliness of CCR and security indicator (SI) assessments against lending policies and regulatory requirements; • IT system controls which record retail loans lending arrears and group exposures into delinquency buckets, and which re-calculate individual allowances. We tested relevant General Information Technology Controls (GITCs) in relation to the key IT applications used by the Group in measuring ECL allowances as detailed in the IT Systems and Controls Key Audit Matter below. In addition to controls testing, our procedures included: • Obtaining an understanding of the Group’s processes to determine ECL allowances, evaluating the ECL model methodologies against established market practices and criteria in the accounting standards. Critically evaluating and challenging ECL model me thodology enhancements implemented during the financial year; • Reperforming a sample of credit assessments for wholesale loans controlled by the Group’s workout and recovery team assessed as higher risk or impaired, and a sample of other loans, focusing on larger exposures assessed by the Group as showing signs of deterioration, or in areas of current and emerging risk; • For each loan sampled, we challenged the Group’s assessment of CCR and SI using the customer’s financial position, the valuation of security, and, where relevant, the risk of stranded assets, to inform our overall assessment of loan recoverability and the impact on the credit allowance. To do this, we used the information on the Group’s loan file, portfolio and industry reviews, external rating and publications and, we enquired regarding the facts and circumstances of the case with the Relationship Manager; • Exercising our judgement, our procedures included using our understanding of relevant industries and the macroeconomic environment and comparing data and assumptions used by the Group in recoverability assessments to externally sourced evidence, such as, externa l credit ratings, publicly available audited financial statements and comparable external valuations of collateral held. Where relevant, we assessed the forecast timing of future cash flows in the context of underlying valuations and approved business plans and challenged key assumptions in the valuations; • Recalculated the Customer Behaviour Scorecard (CBS), which is a key input into the SICR assumption for retail loans, for a sample of loans; • Assessing the accuracy of the Group’s ECL model estimates by re-performing, the calculation of the ECL allowance for all modelled ECL using our independently derived calculation tools and comparing this to the amount recorded by the Group; • Challenging the Group’s forward-looking macroeconomic assumptions and scenarios incorporated in the Group’s ECL models. We compared the Group’s forecast GDP, unemployment rates, CPI and property price indices to relevant publicly available macroeconomic information, and considered other known variables and information obtained through our other procedures to identify contradictory indicators; • Testing the implementation of the Group’s SICR methodology by re-performing the staging calculation for all loans taking into consideration movements in the CCR from loan origination and comparing our result to actual staging applied on an individual account level in the Group’s ECL model; • Assessing the accuracy of the data used in the ECL models by checking a sample of data fields, such as, account balance, CBS and CCR to relevant source systems; • Challenging key assumptions used by the Group in their temporary adjustments. This included: o Assessing temporary adjustments against the Group’s ECL model and data deficiencies identified in the Group’s model validation proces ses, particularly in light of the significant volatility in economic scenarios; o Assessing the completeness of temporary adjustments by checking the consistency of risks we identified in the loan portfolios against the Group’s assessment; o Assessing certain temporary adjustments identified by the Group against internal and external information; o Assessing the appropriateness of management’s release of certain key temporary adjustments, including the rationale and supporting evidence; o Recalculating a sample of temporary adjustments. • Assessing the appropriateness of the Group’s disclosures in the Financial Report, using our understanding obtained from our testing and against the requirements of the accounting standards. 206 Independent auditor’s report (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 207 Key Audit Matters (continued) Subjective and complex valuation of certain financial instruments held at fair value: Group • Fair value of level 3 asset positions $1,343m • Fair value of level 3 liability positions $14m • Fair value of level 2 asset positions $1,608m\* • Fair value of level 2 liability positions $4,259m\* Company • Fair value of level 3 asset positions $1,190m • Fair value of level 3 liability positions $14m • Fair value of level 2 asset positions $1,343m\* • Fair value of level 2 liability positions $4,259m\* \* This KA M relates to our audit procedures for structured notes, derivatives (mainly cancellable swaps and FX options) and fair value adjustments (credit valuation adjustment and funding valuation adjustment) within the level 2 population, that are valued using more complex valuation models. Refer to Note 18 to the Group and Company Financial Reports. T T h h e e K K e e y y A A u u d d i i t t M M a a t t t t e e r r The fair value of the Group and Company’s Level 3 and certain Level 2 (Level 2) financial instruments is determined by the Group and Company’s application of valuation techniques which often involve the exercise of judgement and the use of assumptions and estimates. The valuation of Level 3 and Level 2 financial instruments held at fair value is a Key Audit Matter due to: • The high degree of estimation uncertainty and potentially significant range of reasonable outcomes associated with the valuation of financial instruments classified as Level 3 where significant pricing inputs used in the valuation methodology and models are not observa ble. • The complexity and subjectivity associated with the Group and Company’s valuation models for certain Level 2 derivatives and structured notes leading to an increase in estimation uncertainty. These factors increased the level of judgement applied by us and our audit effort thereon. In addressing this Key Audit Matter, we involved our valuation specialists to supplement our senior team members who understand the methods, assumptions and data relevant to the Group and Company’s valuation of financial instruments. H H o o w w t t h h e e m m a a t t t t e e r r w w a a s s a Our audit procedures in addressing this Key Audit Matter included: • Assessing the population of financial instruments held at fair value by the Group and Company to identify portfolios with a higher risk of misstatement arising from significant judgements over valuation either due to unobservable inputs or complex/subjecti ve models; • Testing the d esign and operating effectiveness of key controls relating specifically to these financial instruments, including those in relati on to: o independent price verification (IPV), including completeness of portfolios and valuation inputs subject to IPV; o model validation at inception and periodically, including assessment of model limitation and assumptions; o review, approval and challenge of daily profit and loss by a control function; o collateral manag ement process, including review and approval of margin reconciliations with clearing ho uses; and o review and approval of fair value adjustments (FVAs), including exit price and portfolio level adjustments. • In relation to the subjective valuation of certain Level 2 and Level 3 financial instruments, with our valuation specialists: o Assessing the reasonableness of key inputs and assumptions using comparable data in the market and available alternatives; o Comparing the Group and Company’s valuation methodology to industry practice and the criteria in the accounting standards; and o Independently revaluing a selection of financial instruments and FVAs of the Group and Company. This involved sourcing independent inputs from comparable data in the market and available alternatives. We challenged and assessed differences against the Group and Company’s valuations. • Assessing the appropriateness of the Group and Company’s disclosures in the Financial Report using our understanding obtained from our testing and against the requirements of the accounting standards. 207 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 207 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Key Audit Matters (continued) Carrying value of investments in PT Bank Pan Indonesia (PT Panin) ($1,140m) Refer to Note 25 to the Group Financial Report. T T h h e e K K e e y y A A u u d d i i t t M M a a t t t t e e r r The carrying value of the Group’s investment in PT Panin is a Key Audit Matter due to: • Indicators of impairment identified in the Group’s impairment assessment of non-lending assets under both the Fair Value Less Costs of Disposal (FVLCOD) and the Value in Use (VIU) method at times throughout the year and at 30 September 2025; • Historical and current volatility in the market price of the PT Panin shares; • Judgement required in evaluating key forward-looking assumptions such as: Forecast earnings, Terminal growth rates and Discount rates. • Recorded impairment charge of $285m for PT Panin. The presence of these conditions necessitated increased judgement by us to assess the Group’s valuation methods and associated investment value determined by the Group. We involved our valuation specialists to supplement our senior team members in assessing this Key Audit Matter. H H o o w w t t h h e e m m a a t t t t e e r r w w a a s s a a d d d d r r e e s s s s e e d d i i n n o o u u r r a a u u d d i i t t Working with our valuation specialists, our procedures included: • Evaluating the appropriateness of the recoverable amount methods applied by the Group against the requirements of the accounting st andards; • Independentl y evaluating FVLCOD method and assessing the market liquidity of the share price at the reporting date, in light of th e historical volatility in the market price; • Independently evaluating the valuation derived from the VIU method used by the Group. This included: o Assessing the integrity of the model used, including the accuracy of the underlying calculation formulas; o Assessing the Group’s key assumptions used in the model by comparing to external observable metrics, historical experience, our knowledge of the market and current market practice; o Independently developing a discount rate range considered comparable using publicly available market data for comparable entities, adjusted for factors specific to the investment and the market and industry it op erates in; o Comparing the forecast earnings contained in the model to the approved PT Panin financial plan, released financial results and against available market data; o Assessing the accuracy of previous forecasts to inform our evaluation of current forecasts incorporated in the model; o Considering the sensitivity of the model by varying key assumptions within a reasonable possible range. We did this to identify those assumptions at higher risk of bias or inconsistency in application and to focus our further procedures. • Recalculation of the impairment charge against disclosed amounts. • Assessing the Group’s disclosures in the Financial Report using our understanding obtained from our testing and against the requirements of th e accounting standards. IT systems and controls T T h h e e K K e e y y A A u u d d i i t t M M a a t t t t e e r r The Group’s businesses utilise many complex, interdependent Information Technology (IT) systems to process and record a high volume of transactions. The controls over access, changes to and operation of relevant IT systems are key to the recording of financial information and the preparation of a financial report which provides a true and fair view of the Group and Company’s financial position and performance. The IT systems and controls, as they impact the financial recording and reporting of the Group and Company’s transactions, is a Key Audit Matter as our audit approach could significantly differ depending on the effective operation of these Group and Company IT controls. We work with our IT specialists in this regard. H H o o w w t t h h e e m m a a t t t t e e r r w w a a s s a a d d d d r r e e s s s s e e d d i i n n o o u u r r a a u u d d i i t t Our testing focused on the technology control environments for key IT applications (systems) used in processing significant financial transactions and recording balances in the general ledgers, and the automated controls embedded within these systems which link the technology-enabled business processes. Working with our IT specialists our audit procedures included: • Assessing the governance and higher-level controls across the relevant IT environments, including policy design, policy review and awareness, and IT risk and cyber security management practices; • Testing the d esign and operating effectiveness of the Group’s key controls with respect to: o Access Control: user access management, including how users are on-boarded, monitored, and removed on a timely basis from key IT applications and infrastructure. We also tested controls for managing privileged roles and functions across relevant IT applications and the underlying infrastructure; o IT system change control: change management for systems relevant to financial reporting, including authorisation of changes prior to development, testing and approvals prior to migration into the production environment of key IT applications. We assessed appropriateness of users with access to release changes to IT application production environments agains t their job roles; o IT operations: access to and monitoring of system batch job schedules; • Design and operating effectiveness testing of key automated business process controls including those relating to enforcing segregation of duties to avoid conflicts from inappropriate role combinations within IT applications. We tested key controls over: o System configurations to perform calculations and mappings of financial transactions, identification of transactions requiring approval and automated reconciliation controls (both between systems and intra-system); and o Data integrity of key system reporting used in our audit procedures and the Group’s fi nancial reporting. 208 Independent auditor’s report (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report 208 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() ANZ 2024 Annual Report 208 Key Audit Matters (continued) Carrying value of investments in PT Bank Pan Indonesia (PT Panin) ($1,140m) Refer to Note 25 to the Group Financial Report. T T h h e e K K e e y y A A u u d d i i t t M M a a t t t t e e r r The carrying value of the Group’s investment in PT Panin is a Key Audit Matter due to: • Indicators of impairment identified in the Group’s impairment assessment of non-lending assets under both the Fair Value Less Costs of Disposal (FVLCOD) and the Value in Use (VIU) method at times throughout the year and at 30 September 2025; • Historical and current volatility in the market price of the PT Panin shares; • Judgement required in evaluating key forward-looking assumptions such as: Forecast earnings, Terminal growth rates and Discount rates. • Recorded impairment charge of $285m for PT Panin. The presence of these conditions necessitated increased judgement by us to assess the Group’s valuation methods and associated investment value determined by the Group. We involved our valuation specialists to supplement our senior team members in assessing this Key Audit Matter. H H o o w w t t h h e e m m a a t t t t e e r r w w a a s s a a d d d d r r e e s s s s e e d d i i n n o o u u r r a a u u d d i i t t Working with our valuation specialists, our procedures included: • Evaluating the appropriateness of the recoverable amount methods applied by the Group against the requirements of the accounting st andards; • Independentl y evaluating FVLCOD method and assessing the market liquidity of the share price at the reporting date, in light of th e historical volatility in the market price; • Independently evaluating the valuation derived from the VIU method used by the Group. This included: o Assessing the integrity of the model used, including the accuracy of the underlying calculation formulas; o Assessing the Group’s key assumptions used in the model by comparing to external observable metrics, historical experience, our knowledge of the market and current market practice; o Independently developing a discount rate range considered comparable using publicly available market data for comparable entities, adjusted for factors specific to the investment and the market and industry it op erates in; o Comparing the forecast earnings contained in the model to the approved PT Panin financial plan, released financial results and against available market data; o Assessing the accuracy of previous forecasts to inform our evaluation of current forecasts incorporated in the model; o Considering the sensitivity of the model by varying key assumptions within a reasonable possible range. We did this to identify those assumptions at higher risk of bias or inconsistency in application and to focus our further procedures. • Recalculation of the impairment charge against disclosed amounts. • Assessing the Group’s disclosures in the Financial Report using our understanding obtained from our testing and against the requirements of th e accounting standards. IT systems and controls T T h h e e K K e e y y A A u u d d i i t t M M a a t t t t e e r r The Group’s businesses utilise many complex, interdependent Information Technology (IT) systems to process and record a high volume of transactions. The controls over access, changes to and operation of relevant IT systems are key to the recording of financial information and the preparation of a financial report which provides a true and fair view of the Group and Company’s financial position and performance. The IT systems and controls, as they impact the financial recording and reporting of the Group and Company’s transactions, is a Key Audit Matter as our audit approach could significantly differ depending on the effective operation of these Group and Company IT controls. We work with our IT specialists in this regard. H H o o w w t t h h e e m m a a t t t t e e r r w w a a s s a a d d d d r r e e s s s s e e d d i i n n o o u u r r a a u u d d i i t t Our testing focused on the technology control environments for key IT applications (systems) used in processing significant financial transactions and recording balances in the general ledgers, and the automated controls embedded within these systems which link the technology-enabled business processes. Working with our IT specialists our audit procedures included: • Assessing the governance and higher-level controls across the relevant IT environments, including policy design, policy review and awareness, and IT risk and cyber security management practices; • Testing the d esign and operating effectiveness of the Group’s key controls with respect to: o Access Control: user access management, including how users are on-boarded, monitored, and removed on a timely basis from key IT applications and infrastructure. We also tested controls for managing privileged roles and functions across relevant IT applications and the underlying infrastructure; o IT system change control: change management for systems relevant to financial reporting, including authorisation of changes prior to development, testing and approvals prior to migration into the production environment of key IT applications. We assessed appropriateness of users with access to release changes to IT application production environments agains t their job roles; o IT operations: access to and monitoring of system batch job schedules; • Design and operating effectiveness testing of key automated business process controls including those relating to enforcing segregation of duties to avoid conflicts from inappropriate role combinations within IT applications. We tested key controls over: o System configurations to perform calculations and mappings of financial transactions, identification of transactions requiring approval and automated reconciliation controls (both between systems and intra-system); and o Data integrity of key system reporting used in our audit procedures and the Group’s fi nancial reporting. 208 Independent auditor’s report (continued)Australia and New Zealand Banking Group Limited 2025 Annual Report Key Audit Matters (continued) Acquisition accounting finalisation for the purchase of Suncorp Bank (Goodwill: $1,346m) Refer to Note 33 to the Group Financial Report. The Key Audit Matter On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank for a total cash consideration of $6.2bn. A provisional valuation was undertaken in relation to assets acquired and liabilities assumed at acquisition date in the prior reporting period and the Group updated this in the current year. Consequently, goodwill associated with the acquisition was adjusted. The finalisation of acquisition accounting for the purchase of Suncorp Bank is a Key Audit Matter due to: • The size of acquisition and its pervasive impact on the Financial Report. Consequently, it was a significant part of our audit. • Significant judgement required by the Group and effort for us, in gathering persuasive audit evidence regarding the Group’s det ermination of the fair value of identifiable intangible assets, including core deposit intangible, and other assets acquired and liabilities assumed, in particular loans and advances, deposits and borrowings. The Group engaged an external expert to determine the fair value of identifiable intangible assets and loans and advances. We involved our valuation specialists to supplement our senior audit team members in assessing this Key Audit Matter. How the matter was addressed in our audit Our procedures included: • We evaluated the Group’s acquisition accounting approach against accounting standard requirements and industry practice; • We assessed the Group’ s external expert report and assessed the objectivity, competence and scope of the Group’s expert; • Working with our valuation specialists, we evaluated the valuation methodology used to determine the fair value of core deposit intangible, considering accounting standards requirements and observed industry practices; • Working with our valuation specialists, we challenged the significant judgements made by the Group’s experts in determining the fair value of core deposit intangible and checked the integrity of the model used including mathematical accuracy of underlying calculations. This also included challenging the key assumptions applied: identification of core deposits, attrition rate, cost savings, discount rate; • Work ing with our valuation specialists, we assessed the fair value of material assets acquired and liabilities assumed. This included independently recalculating the fair value of loans and advances, deposits and borrowings and comparing to the fair value determined by the Group. We utilized professional judgment and independently established the assumptions used in the recalculation of the fair value; • We recalculated the goodwill balance recognised as a result of the acquisition and compared it to the goodwill amount recorded by the Group. We assessed the adequacy of disclosures in the financial report using our understanding obtained from our testing and against the requirements of the accounting standard. Other information Other Information is financial and non-financial information in Australia and New Zealand Banking Group Limited’s annual report which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinions on the Financial Reports does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group and Company, and in compliance with Australian Accounting Standards and the Corporations Regulations 2001 • implementing necessary internal control to enable the preparation of a Financial Report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group and Company, and that is free from material misstatement, whether due to fraud or error • assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. 209 Overview Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary 209 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary ![]() Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/media/bwvjcgre/ar1\_2024.pd f. This description forms part of our Auditor’s Report. These responsibilities also apply to our audits performed in accordance with International Standards on Auditing. #### Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Australia and New Zealand Banking Group Limited for the year ended 30 September 2025, complies with Section 300A of the Corporations Act 2001 and is prepared, in all material respects, in accordance with the accompanying basis of preparation to the Remuneration Report. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001 and the accompanying basis of preparation to the Remuneration Report. Our responsibilities We have audited the Remuneration Report included in pages 32 to 71 of the Directors’ report for the year ended 30 September 2025. Our responsibility is to express an opinion as to whether the Remuneration Report complies in all material respects with Section 300A of the Corporations Act 2001, based on our audit conducted in accordance with Australian Auditing Standards. KPMG M aria Trinci Partner Melbourne 7 November 2025 210 Australia and New Zealand Banking Group Limited 2025 Annual Report 210 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() ANZ 2024 Annual Report 210 Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/media/bwvjcgre/ar1\_2024.pd f. This description forms part of our Auditor’s Report. These responsibilities also apply to our audits performed in accordance with International Standards on Auditing. #### Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Australia and New Zealand Banking Group Limited for the year ended 30 September 2025, complies with Section 300A of the Corporations Act 2001 and is prepared, in all material respects, in accordance with the accompanying basis of preparation to the Remuneration Report. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001 and the accompanying basis of preparation to the Remuneration Report. Our responsibilities We have audited the Remuneration Report included in pages 32 to 71 of the Directors’ report for the year ended 30 September 2025. Our responsibility is to express an opinion as to whether the Remuneration Report complies in all material respects with Section 300A of the Corporations Act 2001, based on our audit conducted in accordance with Australian Auditing Standards. KPMG M aria Trinci Partner Melbourne 7 November 2025 210 Australia and New Zealand Banking Group Limited 2025 Annual Report #### Glossary #### Glossary 1 AASs means Australian Accounting Standards. AASB means Australian Accounting Standards Board. The term ‘AASB’ is commonly used when identifying AASs issued by the AASB. In doing so, the term is used together with the AAS number. ADI means Authorised Deposit-taking Institution as defined by APRA. ANZ Bank Group means ANZ BH Pty Ltd and each of its subsidiaries, including ANZBGL and ANZ Bank New Zealand Limited. ANZ Bank New Zealand means ANZ Bank New Zealand Limited. ANZBGL means Australia and New Zealand Banking Group Limited. ANZBGL Group means ANZBGL and each of its subsidiaries. ANZEST means ANZ Employee Share Trust. ANZ Group means the ANZGHL Group. ANZGHL means ANZ Group Holdings Limited. ANZGHL Group means ANZGHL and each of its subsidiaries, including ANZ BH Pty Ltd, ANZ Group Services Pty Ltd and ANZ NBH Pty Ltd. ANZ Non-Bank Group means ANZ NBH Pty Ltd and each of its subsidiaries, including the Group’s beneficial interests in the 1835i trusts and non-controlling interests in the ANZ Worldline Payment Solutions joint venture, and ANZ Group Services Pty Ltd. ANZ Research – Economics is a business unit within ANZ, which conducts analysis of key economic inputs and developments and assessment of the potential impacts on the local, regional and global economies. ANZ Share means a fully paid ordinary share in the capital of ANZ. APRA means Australian Prudential Regulation Authority. APS means ADI Prudential Standard. ASX means Australian Securities Exchange. AT1 means Additional Tier 1 capital. Basel Harmonisation ratios are the Group’s interpretation of Basel Calculation of RWA for credit risk regulations (effective 1 Jan 2023) documented in the Basel Framework and the ‘Australian Banking Association Basel 3.1 Capital Comparison Study’ (Mar 2023). This definition is for measures from March 2023 onwards. BCBS means Basel Committee on Banking Supervision. Board means ANZBGL Board of Directors. Cash profit is an additional measure of profit which is prepared on a basis other than in accordance with accounting standards. Cash profit represents the Group’s preferred measure of the result of the core business activities of the Group, enabling readers to assess Group and Divisional performance against prior periods and against peer institutions. To calculate cash profit, the Group excludes non-core items from statutory profit as noted below. These items are calculated consistently period on period so as not to discriminate between positive and negative adjustments. Gains and losses are adjusted where they are significant, or have the potential to be significant in any one period, and fall into one of three categories: 1. gains or losses included in earnings arising from changes in tax, legal or accounting legislation or other non-core items not associated with the core operations of the Group such as amortisation of intangible assets recognised in a business combination; 2. economic hedging impacts and similar accounting items that represent timing differences that will reverse through earnings in the future; and 3. accounting reclassifications between individual line items that do not impact reported results, such as credit risk on impaired derivatives. Cash profit is not a measure of cash flow or profit determined on a cash accounting basis. Collectively assessed allowance for expected credit loss represents the Expected Credit Loss (ECL), which incorporates forward- looking information and does not require an actual loss event to have occurred for a credit loss provision to be recognised. Company means Australia and New Zealand Banking Group Limited. Covered bonds are bonds issued by an ADI to external investors secured against a pool of the ADI’s assets (the cover pool) assigned to a bankruptcy remote special purpose entity. The primary assets forming the cover pool are mortgage loans. The mortgages remain on the issuer’s balance sheet. The covered bond holders have dual recourse to the issuer and the cover pool assets. The mortgages included in the cover pool cannot be otherwise pledged or disposed of but may be repurchased and substituted in order to maintain the credit quality of the pool. The Group issues covered bonds as part of its funding activities. Credit risk is the risk of financial loss resulting from the failure of the Group’s customers and counterparties to honour or perform fully the terms of a loan or contract. Credit risk weighted assets (CRWA) represent assets which are weighted for credit risk according to a set formula as prescribed in APS 112/113. Customer deposits represent term deposits, other deposits bearing interest, deposits not bearing interest and borrowing corporations’ debt excluding securitisation deposits. Customer remediation includes provisions for expected refunds to customers, remediation project costs and related customer and regulatory claims, penalties and litigation costs and outcomes. Derivative credit valuation adjustment - Over the life of a derivative instrument, the Group uses a model to adjust fair value to take into account the impact of counterparty credit quality. The methodology calculates the present value of expected losses over the life of the financial instrument as a function of probability of default, loss given default, expected credit risk exposure at default and an asset correlation factor. Impaired derivatives are also subject to a CVA. Expected credit loss (ECL) The determination of the ECL is dependent on credit deterioration since origination, according to the following three-stage approach: − Stage 1: At the origination of a financial asset, and subsequently where there has not been a Significant Increase in Credit Risk (SICR) since origination, an allowance for ECL is recognised reflecting the expected credit losses resulting from default events that are possible within the next 12 months from the reporting date. For instruments with a remaining maturity of less than 12 months, expected credit losses are estimated based on default events that are possible over the remaining time to maturity. #### Glossary 1 AASs means Australian Accounting Standards. AASB means Australian Accounting Standards Board. The term ‘AASB’ is commonly used when identifying AASs issued by the AASB. In doing so, the term is used together with the AAS number. ADI means Authorised Deposit-taking Institution as defined by APRA. ANZ Bank Group means ANZ BH Pty Ltd and each of its subsidiaries, including ANZBGL and ANZ Bank New Zealand Limited. ANZ Bank New Zealand means ANZ Bank New Zealand Limited. ANZBGL means Australia and New Zealand Banking Group Limited. ANZBGL Group means ANZBGL and each of its subsidiaries. ANZEST means ANZ Employee Share Trust. ANZ Group means the ANZGHL Group. ANZGHL means ANZ Group Holdings Limited. ANZGHL Group means ANZGHL and each of its subsidiaries, including ANZ BH Pty Ltd, ANZ Group Services Pty Ltd and ANZ NBH Pty Ltd. ANZ Non-Bank Group means ANZ NBH Pty Ltd and each of its subsidiaries, including the Group’s beneficial interests in the 1835i trusts and non-controlling interests in the ANZ Worldline Payment Solutions joint venture, and ANZ Group Services Pty Ltd. ANZ Research – Economics is a business unit within ANZ, which conducts analysis of key economic inputs and developments and assessment of the potential impacts on the local, regional and global economies. ANZ Share means a fully paid ordinary share in the capital of ANZ. APRA means Australian Prudential Regulation Authority. APS means ADI Prudential Standard. ASX means Australian Securities Exchange. AT1 means Additional Tier 1 capital. Basel Harmonisation ratios are the Group’s interpretation of Basel Calculation of RWA for credit risk regulations (effective 1 Jan 2023) documented in the Basel Framework and the ‘Australian Banking Association Basel 3.1 Capital Comparison Study’ (Mar 2023). This definition is for measures from March 2023 onwards. BCBS means Basel Committee on Banking Supervision. Board means ANZBGL Board of Directors. Cash profit is an additional measure of profit which is prepared on a basis other than in accordance with accounting standards. Cash profit represents the Group’s preferred measure of the result of the core business activities of the Group, enabling readers to assess Group and Divisional performance against prior periods and against peer institutions. To calculate cash profit, the Group excludes non-core items from statutory profit as noted below. These items are calculated consistently period on period so as not to discriminate between positive and negative adjustments. Gains and losses are adjusted where they are significant, or have the potential to be significant in any one period, and fall into one of three categories: 1. gains or losses included in earnings arising from changes in tax, legal or accounting legislation or other non-core items not associated with the core operations of the Group such as amortisation of intangible assets recognised in a business combination; 2. economic hedging impacts and similar accounting items that represent timing differences that will reverse through earnings in the future; and 3. accounting reclassifications between individual line items that do not impact reported results, such as credit risk on impaired derivatives. Cash profit is not a measure of cash flow or profit determined on a cash accounting basis. Collectively assessed allowance for expected credit loss represents the Expected Credit Loss (ECL), which incorporates forward- looking information and does not require an actual loss event to have occurred for a credit loss provision to be recognised. Company means Australia and New Zealand Banking Group Limited. Covered bonds are bonds issued by an ADI to external investors secured against a pool of the ADI’s assets (the cover pool) assigned to a bankruptcy remote special purpose entity. The primary assets forming the cover pool are mortgage loans. The mortgages remain on the issuer’s balance sheet. The covered bond holders have dual recourse to the issuer and the cover pool assets. The mortgages included in the cover pool cannot be otherwise pledged or disposed of but may be repurchased and substituted in order to maintain the credit quality of the pool. The Group issues covered bonds as part of its funding activities. Credit risk is the risk of financial loss resulting from the failure of the Group’s customers and counterparties to honour or perform fully the terms of a loan or contract. Credit risk weighted assets (CRWA) represent assets which are weighted for credit risk according to a set formula as prescribed in APS 112/113. Customer deposits represent term deposits, other deposits bearing interest, deposits not bearing interest and borrowing corporations’ debt excluding securitisation deposits. Customer remediation includes provisions for expected refunds to customers, remediation project costs and related customer and regulatory claims, penalties and litigation costs and outcomes. Derivative credit valuation adjustment - Over the life of a derivative instrument, the Group uses a model to adjust fair value to take into account the impact of counterparty credit quality. The methodology calculates the present value of expected losses over the life of the financial instrument as a function of probability of default, loss given default, expected credit risk exposure at default and an asset correlation factor. Impaired derivatives are also subject to a CVA. Expected credit loss (ECL) The determination of the ECL is dependent on credit deterioration since origination, according to the following three-stage approach: − Stage 1: At the origination of a financial asset, and subsequently where there has not been a Significant Increase in Credit Risk (SICR) since origination, an allowance for ECL is recognised reflecting the expected credit losses resulting from default events that are possible within the next 12 months from the reporting date. For instruments with a remaining maturity of less than 12 months, expected credit losses are estimated based on default events that are possible over the remaining time to maturity. 211211 Operating environment Governance Performance overview Remuneration report Directors’ report Financial report Glossary #### Glossary 2 − Stage 2: Where there has been a SICR since origination, allowance for ECL is recognised reflecting expected credit losses resulting from all possible default events over the expected life of a financial instrument. If credit risk were to improve in a subsequent period such that the increase in credit risk since origination is no longer considered significant, the exposure returns to a Stage 1 classification with ECL measured accordingly. − Stage 3: Where there is objective evidence of impairment, allowance equivalent to lifetime ECL is recognised. Fair value is an amount at which an asset or liability could be exchanged between knowledgeable and willing parties in an arm’s length transaction. Gross loans and advances (GLA) is made up of loans and advances, capitalised brokerage and other origination costs less unearned income. Group means Australia and New Zealand Banking Group Limited and its subsidiaries. IFRS means International Financial Reporting Standards. Impaired assets are those financial assets where doubt exists as to whether the full contractual amount will be received in a timely manner, or where concessional terms have been provided because of the financial difficulties of the customer. Individually assessed allowance for expected credit losses is assessed on a case-by-case basis for all individually managed impaired assets taking into consideration factors such as the realisable value of security (or other credit mitigants), the likely return available upon liquidation or bankruptcy, legal uncertainties, estimated costs involved in recovery, the market price of the exposure in secondary markets and the amount and timing of expected receipts and recoveries. Interest rate risk in the banking book (IRRBB) relates to the potential adverse impact of changes in market interest rates on the Group’s future net interest income. The risk generally arises from: 1. Repricing and yield curve risk - the risk to earnings or market as a result of changes in the overall level of interest rates and/or the relativity of these rates across the yield curve; 2. Basis risk - the risk to earnings or market value ar volatility in the interest margin applicable to banking book items; and 3. Optionality risk - the risk to earnings or market value arising from the existence of stand-alone or embedded options in banking book items. Level 1 in the context of APRA supervision, Australia and New Zealand Banking Group Limited consolidated with certain approved subsidiaries. Level 2 in the context of APRA supervision, means consolidated ANZ Bank Group, excluding insurance and funds management entities, commercial non-financial entities and certain securitisation vehicles. Level 3 in the context of APRA supervision, means ANZ Group, the conglomerate group at the widest level. Net interest margin is net interest income as a percentage of average interest earning assets. Net loans and advances represent gross loans and advances less allowance for expected credit losses. Net Stable Funding Ratio (NSFR) is the ratio of the amount of available stable funding (ASF) to the amount of required stable funding (RSF) defined by APRA. The amount of ASF is the portion of an ADI’s capital and liabilities expected to be a reliable source of funds over a one year time horizon. The amount of RSF is a function of the liquidity characteristics and residual maturities of an ADI’s assets and off- balance sheet activities. ADIs must maintain an NSFR of at least 100%. Net tangible assets equal share capital and reserves attributable to shareholders of the Company less goodwill and other intangible assets. NZX means New Zealand’s Exchange. RBA means Reserve Bank of Australia, Australia’s central bank. RBNZ means Reserve Bank of New Zealand, New Zealand’s central bank. Regulatory deposits are mandatory reserve deposits lodged with local central banks in accordance with statutory requirements. Return on average assets is the profit attributable to shareholders of the Company, divided by average total assets. Return on average ordinary shareholders’ equity is the profit attributable to shareholders of the Company, divided by average ordinary shareholders’ equity. Return on average tangible equity is the profit attributable to shareholders of the Company, divided by average ordinary shareholders’ equity less average goodwill and other intangible assets. Risk weighted assets (RWA) are risk weighted according to each asset’s inherent potential for default and what the likely losses would be in the case of default. In the case of non-asset backed risks (i.e. market and operational risk), RWA is determined by multiplying the capital requirements for those risks by 12.5. Settlement balances owed to/by ANZ represent financial assets and/or liabilities which are in the course of being settled. These may include trade dated assets and liabilities, vostro accounts and securities settlement accounts. #### Glossary 2 − Stage 2: Where there has been a SICR since origination, an allowance for ECL is recognised reflecting expected credit losses resulting from all possible default events over the expected life of a financial instrument. If credit risk were to improve in a subsequent period such that the increase in credit risk since origination is no longer considered significant, the exposure returns to a Stage 1 classification with ECL measured accordingly. − Stage 3: Where there is objective evidence of impairment, an allowance equivalent to lifetime ECL is recognised. Fair value is an amount at which an asset or liability could be exchanged between knowledgeable and willing parties in an arm’s length transaction. Gross loans and advances (GLA) is made up of loans and advances, capitalised brokerage and other origination costs less unearned income. Group means Australia and New Zealand Banking Group Limited and its subsidiaries. IFRS means International Financial Reporting Standards. Impaired assets are those financial assets where doubt exists as to whether the full contractual amount will be received in a timely manner, or where concessional terms have been provided because of the financial difficulties of the customer. Individually assessed allowance for expected credit losses is assessed on a case-by-case basis for all individually managed impaired assets taking into consideration factors such as the realisable value of security (or other credit mitigants), the likely return available upon liquidation or bankruptcy, legal uncertainties, estimated costs involved in recovery, the market price of the exposure in secondary markets and the amount and timing of expected receipts and recoveries. Interest rate risk in the banking book (IRRBB) relates to the potential adverse impact of changes in market interest rates on the Group’s future net interest income. The risk generally arises from: 1. Repricing and yield curve risk - the risk to earnings or market value as a result of changes in the overall level of interest rates and/or the relativity of these rates across the yield curve; 2. Basis risk - the risk to earnings or market value arising from volatility in the interest margin applicable to banking book items; and 3. Optionality risk - the risk to earnings or market value arising from the existence of stand-alone or embedded options in banking book items. Level 1 in the context of APRA supervision, Australia and New Zealand Banking Group Limited consolidated with certain approved subsidiaries. Level 2 in the context of APRA supervision, means consolidated ANZ Bank Group, excluding insurance and funds management entities, commercial non-financial entities and certain securitisation vehicles. Level 3 in the context of APRA supervision, means ANZ Group, the conglomerate group at the widest level. Net interest margin is net interest income as a percentage of average interest earning assets. Net loans and advances represent gross loans and advances less allowance for expected credit losses. Net Stable Funding Ratio (NSFR) is the ratio of the amount of available stable funding (ASF) to the amount of required stable funding (RSF) defined by APRA. The amount of ASF is the portion of an ADI’s capital and liabilities expected to be a reliable source of funds over a one year time horizon. The amount of RSF is a function of the liquidity characteristics and residual maturities of an ADI’s assets and off- balance sheet activities. ADIs must maintain an NSFR of at least 100%. Net tangible assets equal share capital and reserves attributable to shareholders of the Company less goodwill and other intangible assets. NZX means New Zealand’s Exchange. RBA means Reserve Bank of Australia, Australia’s central bank. RBNZ means Reserve Bank of New Zealand, New Zealand’s central bank. Regulatory deposits are mandatory reserve deposits lodged with local central banks in accordance with statutory requirements. Return on average assets is the profit attributable to shareholders of the Company, divided by average total assets. Return on average ordinary shareholders’ equity is the profit attributable to shareholders of the Company, divided by average ordinary shareholders’ equity. Return on average tangible equity is the profit attributable to shareholders of the Company, divided by average ordinary shareholders’ equity less average goodwill and other intangible assets. Risk weighted assets (RWA) are risk weighted according to each asset’s inherent potential for default and what the likely losses would be in the case of default. In the case of non-asset backed risks (i.e. market and operational risk), RWA is determined by multiplying the capital requirements for those risks by 12.5. Settlement balances owed to/by ANZ represent financial assets and/or liabilities which are in the course of being settled. These may include trade dated assets and liabilities, vostro accounts and securities settlement accounts. 212 Australia and New Zealand Banking Group Limited 2025 Annual Report ![]() ![]() Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 shareholder.anz.com NA ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]()