BALANCE SHEET As at 30 September Assets Cash and cash equivalents' Settlement balances owed to ANZ Collateral paid Trading securities Derivative financial instruments Available-for-sale assets Net loans and advances Regulatory deposits Assets held for sale Note 2018 2017 $m $m 00 8 84,636 68,048 2,319 5,504 11,043 8,987 902 37,722 43,605 10 68,423 62,518 11 74,284 69,384 12 603,938 574,331 882 2,015 29 45,248 7,970 Investments in associates 26 2,553 2,248 Current tax assets 268 30 Deferred tax assets 900 675 Goodwill and other intangible assets 20 4,930 6,970 Investments backing policy liabilities 37,964 Premises and equipment 1,833 1,965 Other assets 3,645 5,112 Total assets 942,624 897,326 Liabilities Settlement balances owed by ANZ Collateral received Deposits and other borrowings Derivative financial instruments Current tax liabilities Deferred tax liabilities Liabilities held for sale Policy liabilities External unit holder liabilities Payables and other liabilities Employee entitlements Other provisions Debt issuances 11,810 9,914 6,542 5,919 14 618,150 595,611 10 69,676 62,252 300 241 59 257 29 47,159 4,693 37,448 4,435 6,788 8,350 540 530 25 21 1,038 628 15 121,179 107,973 883,241 838,251 59,383 59,075 Total liabilities Net assets Shareholders' equity Ordinary share capital Reserves Retained earnings Share capital and reserves attributable to shareholders of the Company Non-controlling interests Total shareholders' equity 222222 27,205 29,088 323 37 31,715 29,834 59,243 58,959 140 116 59,383 59,075 BALANCE SHEET As at 30 September Assets 2019 $m $m Note 2020 Cash and cash equivalents Settlement balances owed to ANZ Collateral paid Trading securities Derivative financial instruments Investment securities Net loans and advances Regulatory deposits Assets held for sale Investments in associates Current tax assets Deferred tax assets Goodwill and other intangible assets Premises and equipment' Other assets Total assets 00 8 107,923 81,621 7,541 3,739 14,308 15,006 9012 50,913 43,169 10 135,331 120,667 11 93,391 83,709 12 617,093 615,258 801 879 29 22 1,831 26 2,164 2,957 161 265 2,124 1,356 20 20 4,379 4,861 3,013 1,924 3,144 3,895 1,042,286 981,137 Liabilities Settlement balances owed by ANZ 22,241 10,867 Collateral received 9,304 7,929 Deposits and other borrowings 14 682,333 Derivative financial instruments 10 134,711 637,677 120,951 Current tax liabilities 349 260 Deferred tax liabilities 80 67 Liabilities held for sale 29 2,121 Payables and other liabilities' 9,128 7,968 Employee entitlements 596 589 Other provisions Debt issuances 25 21 2,579 2,223 15 119,668 129,691 Total liabilities Net assets 980,989 920,343 61,297 60,794 Shareholders' equity Ordinary share capital Reserves Retained earnings Share capital and reserves attributable to shareholders of the Company Non-controlling interests Total shareholders' equity 222222 26,531 26,490 1,501 1,629 33,255 32,664 61,287 60,783 10 11 61,297 60,794 On adoption of AASB 16 on 1 October 2019, the Group recognised right-of-use assets of $1.6 billion presented within Premises and equipment and lease liabilities of $1.7 billion presented within Payables and other liabilities. This resulted in a reduction to opening retained earnings of $88 million and an increase in deferred tax assets of $37 million. Comparative information has not been restated. Refer to Note 1 for further details. The notes appearing on pages 117 to 225 form an integral part of these financial statements. CASH FLOW STATEMENT The Consolidated Cash Flow Statement includes discontinued operations. Please refer to Note 29 for cash flows associated with discontinued operations and cash and cash equivalents reclassified as held for sale. For the year ended 30 September Profit after income tax Adjustments to reconcile to net cash provided by/(used in) operating activities: Allowance for expected credit losses Impairment of investment in associates Depreciation and amortisation-2 Goodwill impairment (Profit)/loss on sale of premises and equipment Net derivatives/foreign exchange adjustment (Gain)/loss on sale from divestments Other non-cash movements Net (increase)/decrease in operating assets: Collateral paid Trading securities 2020 2019 $m $m 3,578 5,968 (3,046) 2,738 815 1,391 77 (8) 4,940 25 (137) (80) (356) 283 (3,493) (1,803) (7,941) (7,119) (10,268) (3,542) (76) (454) 51,875 7,006 Settlement balances owed by ANZ 11,476 (1,077) Collateral received 1,739 1,004 Other liabilities (9,581) 2,140 Total adjustments 48,706 (10,518) Net cash (used in)/provided by operating activities 52,284 (4,550) Cash flows from investing activities Net loans and advances Investments backing policy liabilities Other assets Net increase/(decrease) in operating liabilities: Deposits and other borrowings Investment securities assets: Purchases Proceeds from sale or maturity (40,029) (23,847) 28,642 21,228 Proceeds from divestments, net of cash disposed 1,309 2,121 Proceeds from/(Repayment of) IOOF secured notes (800) 800 Other assets (587) (508) Net cash (used in)/provided by investing activities (11,465) (206) Cash flows from financing activities Debt issuances. Issue proceeds Redemptions Dividends paid On market purchase of treasury shares Repayment of lease liabilities Share buyback Net cash (used in)/provided by financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of year' Includes depreciation of right-of-use assets recognised on 1 October 2019 following the adoption of AASB 16. Comparatives have not been restated. 12,260 25,900 (21,430) (22,958) (2,861) (4,471) (122) (112) (281) (1,120) (12,434) (2,761) 28,385 (7,517) 81,621 84,964 (2,083) 4,174 107,923 81,621 Includes accelerated amortisation of $197 million following the Group's change in the application of its software amortisation policy to reflect the shorter useful life of software caused by rapidly changing technology and business requirements. Refer to Note 20 Goodwill and Other Intangible Assets for further details. Net cash inflows/(outflows) from operating activities includes income taxes paid of $2,348 million (2019: $3,129 million). * Non-cash changes in debt issuances includes fair value hedging loss of $1,127 million (2019: $2,437 million loss) and foreign exchange gains of $1,623 million (2019: $3,815 million loss). Cash outflow for shares purchased to satisfy the dividend reinvestment plan are classified in Dividends paid. Relates to repayments of lease liabilities which the Group commenced recognising on 1 October 2019 following the adoption of AASB 16. Comparative information has not been restated. 7. Includes cash and cash equivalents recognised on the face of balance sheet of $107,923 million (2019: $81,621 million) with no amounts recorded as part of assets held for sale. (2019: nil). INCOME STATEMENT 2020 2019 For the year ended 30 September Note $m $m Interest income 24,426 31,077 Interest expense Net interest income Other operating income (10,377) (16,738) Net income from insurance business Share of associates' profit 2222 14,049 14,339 3,355 78 4,058 126 155 262 Operating income 17,637 18,785 Operating expenses 3 (9,383) (9,071) Profit before credit impairment and income tax 8,254 9,714 Credit impairment charge 13 (2,738) (794) Profit before income tax 5,516 8,920 Income tax expense 4 (1,840) (2,609) Profit after tax from continuing operations 3,676 6,311 Profit/(Loss) after tax from discontinued operations 29 (98) (343) 3,578 5,968 Profit for the year Comprising: Profit attributable to shareholders of the Company Profit attributable to non-controlling interests Earnings per ordinary share (cents) including discontinued operations Basic Diluted Earnings per ordinary share (cents) from continuing operations 3,577 5,953 1 15 Basic Diluted Dividend per ordinary share (cents) 66 665 126.4 210.0 118.0 201.9 129.8 121.1 222.1 213.0 60 160 Includes interest income calculated using the effective interest method of $23,837 million on financial assets measured at amortised cost or fair value through other comprehensive income (2019: $30,224 million). The notes appearing on pages 117 to 225 form an integral part of these financial statements. CASH FLOW STATEMENT The Consolidated Cash Flow Statement includes discontinued operations. Please refer to Note 29 for cash flows associated with discontinued operations and cash and cash equivalents reclassified as held for sale. For the year ended 30 September Profit after income tax Adjustments to reconcile to net cash provided by/(used in) operating activities: Provision for credit impairment Depreciation and amortisation (Profit)/loss on sale of premises and equipment Net derivatives/foreign exchange adjustment (Gain)/loss on sale from divestments Reclassification of businesses to held for sale Other non-cash movements Net (increase)/decrease in operating assets: Collateral paid Trading securities 2018 2017 $m $m 6,416 6,421 688 1,198 1,199 972 (4) (114) 6,721 (3,409) (594) 541 693 (55) (167) (1,648) 3,533 8,565 2,081 (24,739) (17,838) (3,914) (2,122) (973) 509 Net loans and advances Investments backing policy liabilities' Other assets Net increase/(decrease) in operating liabilities: Deposits and other borrowings 12,207 30,904 Settlement balances owed by ANZ 1,853 (627) Collateral received 186 (310) Life insurance contract policy liabilities' 4,263 2,260 Other liabilities (298) 215 Total adjustments 4,150 17,626 Net cash provided by operating activities? 10,566 24,047 Cash flows from investing activities Available-for-sale assets: Purchases (23,806) (27,220) Proceeds from sale or maturity 20,592 19,751 Proceeds from divestments 2,148 (5,213) Proceeds from Zurich reinsurance arrangement 1,000 Other assets 232 (148) Net cash provided by/(used in) investing activities 166 (12,830) Cash flows from financing activities Debt issuances: Issue proceeds Redemptions Dividends paid On market purchase of treasury shares Share buyback 25,075 (15,898) 25,128 (27,409) (4,563) (4,386) (114) (75) (1,880) Net cash provided by/(used in) financing activities 2,620 (6,742) Net increase in cash and cash equivalents 13,352 4,475 Cash and cash equivalents at beginning of year 68,048 66,220 Effects of exchange rate changes on cash and cash equivalents 3,564 (2,647) Cash and cash equivalents at end of year* 84,964 68,048 FINANCIAL REPORT INCOME STATEMENT For the year ended 30 September Interest income Interest expense Net interest income Other operating income Net funds management and insurance income 2018 2017 Note 30,327 $m $m 29,120 (15,813) (14,245) Share of associates' profit 2222 14,514 14,875 4,558 3,589 576 634 183 300 Operating income 19,831 19,398 Operating expenses 3 (9,248) (8,967) Profit before credit impairment and income tax 10,583 10,431 Credit impairment charge 13 (688) (1,198) Profit before income tax 9,895 9,233 Income tax expense 4 (2,784) (2,874) Profit after tax from continuing operations 7,111 6,359 29 (695) 62 6,416 6,421 Profit/(Loss) after tax from discontinued operations Profit for the year Comprising: Profit attributable to shareholders of the Company Profit attributable to non-controlling interests 6,400 6,406 16 15 Earnings per ordinary share (cents) including discontinued operations 6 221.6 220.1 Basic Diluted 6 212.1 210.8 Earnings per ordinary share (cents) from continuing operations Basic Diluted 245.6 218.0 234.2 208.8 Dividend per ordinary share (cents) 5 160 160 Information has been restated and presented on a continuing operations basis. Discontinued operations consists of OnePath pensions and investments and aligned dealer groups being sold to IOOF Holdings Limited and the life insurance business being sold to Zurich Financial Services Australia The notes appearing on pages 77 to 163 form an integral part of these financial statements. 66 STATEMENT OF CHANGES IN EQUITY As at 1 October 2016 Profit or loss from continuing operations Profit or loss from discontinued operations Other comprehensive income for the year from continuing operations Other comprehensive income for the year from discontinued operations Total comprehensive income for the year Transactions with equity holders in their capacity as equity holders': Dividends paid Dividend income on treasury shares held within the Group's life insurance statutory funds Dividend reinvestment plan Other equity movements': Treasury shares Wealth Australia adjustment Group employee share acquisition scheme Other items As at 30 September 2017 Share capital and reserves attributable to Non- Total Ordinary Retained shareholders controlling shareholders' share capital Reserves earnings of the Company interests equity $m $m $m $m $m $m 28,765 1,078 27,975 57,818 109 57,927 6,344 6,344 15 6,359 62 62 62 (1,019) 15 (1,004) (6) (1,010) (30) (30) (30) (1,049) 6,421 5,372 9 5,381 (4,609) (4,609) (1) (4,610) 26 26 26 198 198 198 Profit or loss from continuing operations Profit or loss from discontinued operations Other comprehensive income for the year from 69 69 69 56 56 56 8 21 29 (1) 28 29,088 37 29,834 58,959 116 59,075 7,095 7,095 16 7,111 (695) (695) - (695) 264 24 288 10 298 continuing operations Other comprehensive income for the year from 18 18 18 discontinued operations Total comprehensive income for the year 282 6,424 6,706 26 6,732 Transactions with equity holders in their capacity as equity holders': Dividends paid Dividend income on treasury shares held within the Group's life insurance statutory funds (4,585) (4,585) (2) (4,587) 24 24 24 Dividend reinvestment plan Group share buy-back (1,880) (1,880) (1,880) Other equity movements!: Treasury shares Wealth Australia adjustment (2) (2) (2) Group employee share acquisition scheme (1) (1) (1) Other items 4 18 22 22 As at 30 September 2018 27,205 323 31,715 59,243 140 59,383 STATEMENT OF CHANGES IN EQUITY Share capital and reserves attributable to Non- Total Ordinary Retained shareholders controlling shareholders' share capital Reserves earnings of the Company interests equity $m $m $m $m $m $m As at 1 October 2018 Impact on transition to AASB 9 Profit or loss from continuing operations Profit or loss from discontinued operations 27,205 323 31,737 59,265 140 59,405 14 (624) (610) - (610) 6,296 6,296 15 6,311 (343) (343) - (343) Other comprehensive income for the year from 1,393 58 1,451 5 1,456 continuing operations Other comprehensive income for the year from (97) (97) (97) discontinued operations Total comprehensive income for the year 1,296 6,011 7,307 20 7,327 Transactions with equity holders in their capacity as equity holders: Dividends paid (4,481) (4,481) Dividend income on treasury shares held within 12 12 the Group's life insurance statutory funds Group share buy-back (1,120) (1,120) (4,483) 12 (1,120) Other equity movements: Treasury shares Wealth Australia 405 405 405 discontinued operations adjustment Other items As at 30 September 2019 Impact on transition to AASB 16 (4) 9 5 (147) 26,490 1,629 32,664 60,783 11 (142) 60,794 (88) (88) - (88) Profit or loss from continuing operations Profit or loss from discontinued operations 3,675 3,675 1 3,676 (98) (98) - (98) Other comprehensive income for the year from continuing operations Total comprehensive income for the year Transactions with equity holders in their capacity as equity holders: Dividends paid Dividend Reinvestment Plan' (124) 14 (110) (1) (111) (124) 3,591 3,467 3,467 61 (2,922) (2,922) 61 (2,922) 61 Other equity movements: Group employee share acquisition scheme Other items As at 30 September 2020 (20) 26,531 (4) 1,501 10 33,255 (20) (20) 6 (1) 5 61,287 10 61,297 3.4 million shares were issued under the Dividend Reinvestment Plan (DRP) for the 2020 interim dividend (nil shares for the 2019 final Dividend; nil shares for the 2019 interim dividend as the shares were purchased on-market and provided directly to shareholders participating in the DRP). On-market share purchases for the DRP in 2020 were $185 million (2019: $432 million). The Company completed a $3.0 billion on-market share buy-back of ANZ ordinary shares purchasing $1,120 million worth of shares in 2019 resulting in 42.0 million shares being cancelled. The successor funds transfer performed in preparation for the sale of the Group's wealth business to Zurich and IOOF completed on 13 April 2019. As a result, the Group no longer eliminates the ANZ shares previously held in Wealth Australia discontinued operations (treasury shares). The notes appearing on pages 117 to 225 form an integral part of these financial statements