ANZ - 2021 Annual Report

Chairman’s message The bank has navigated a year of historic health and economic challenges while also supporting our customers and the community. As we reflect on the events of 2021, I don’t think many of us would have imagined enduring months of further lockdowns this year in Melbourne, Sydney and, most recently, Auckland. While it has been an incredibly difficult period for many, the future does look much brighter as we adjust to the new phase of living with the virus. Impressive vaccination rates provide hope and if we’ve taken anything from previous lockdowns, it has been the resilience of our people and our customers. From a bank perspective, we delivered a solid financial outcome. Our full-year statutory profit was up 72% to $6.16 billion. While improving economic conditions meant we were able to release some of the credit reserves we put in place for expected losses, the result also demonstrates the benefits of a diverse portfolio. Prudent risk management over many years has resulted in much lower than anticipated loss rates, capital buffers remain at an historically high-level with a CET1 of 12.3%, while earnings have returned to near where they were pre-COVID-19 and Total Shareholder Returns have substantially improved. The overall improved performance of the business has been reflected in our decision to restore dividends close to what they were before the pandemic struck and to lead the industry in returning capital to shareholders. In fact, on a pro-forma basis we will have approximately $6 billion of capital above ‘unquestionably strong’ and will continue to consider the best use of any surplus capital. Highlights this year have included New Zealand having a strong year and Institutional providing good returns for shareholders. However, we did face challenges and although revenue in our Australia Retail & Commercial business in Australia increased, elevated demand for home loans impacted our ability to process applications in a timely manner which resulted in a loss of market share. There was also a delay with one of our key digital transformation products. 4 OVERVIEW HOW WE CREATE VALUE PERFORMANCE OVERVIEW REMUNERATION REPORT DIRECTORS’ REPORT FINANCIAL REPORT SHAREHOLDER INFORMATION

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