ANZ CAPITAL MANAGEMENTOVERVIEW
AUSTRALIA1• ANZ reports to APRA on a Level 1 and Level 2 basis, and measures capital adequacy on a Level 1 and Level 2 basis. ANZ is not yet
required to maintain capital on a Level 3 basis (APRA have yet to conclude required timing for Level 3 capital requirements)• For ANZ, Level 1 in the context of APRA supervision, primarily comprises Australia and New Zealand Banking Group Limited (the parentincluding offshore branches) but excludes offshore banking subsidiaries.
• For ANZ, Level 2 in the context of APRA supervision, includes the consolidated ANZ Group excluding associates, insurance and funds
management entities, commercial non-financial entities and certain securitisation vehicles• Consequently, the primary difference between Level 1 and Level 2 is ANZBGL’s banking subsidiaries (such as ANZ New Zealand BankLimited) which are part of the Level 2 regulatory consolidation but excluded from Level 1• ANZ is required to hold 3 types of regulatory capital, Common Equity Tier 1 capital, Additional Tier 1 capital and Tier 2 capital. ANZ
reports its capital ratios as follows:
Regulatory capital definition
Common Equity Tier 1 (CET1) capital
Shareholders’ equity adjusted for specific
items

Tier 1 Capital
Tier 2 Capital
Total Capital
CET1 Capital plus certain securities with complying Subordinated debt instruments which
Tier 1 plus Tier 2 Capital
loss absorbing characteristics known as Additional have a minimum term of 5 years at issue
Tier 1 (AT1) Capital
dateOUTSIDE AUSTRALIA1• In addition to APRA, the Company’s branch operations and major banking subsidiary operations are also overseen by local regulatorssuch as the Reserve Bank of New Zealand, the US Federal Reserve, the UK Prudential Regulation Authority, the Monetary Authority ofSingapore, the Hong Kong Monetary Authority and the China Banking and Insurance Regulatory Commission. They may impose
minimum capitalisation levels on operations in their individual jurisdictions

1. As detailed in ANZ 2019 Annual Report, pages 179 & 180

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ANZ CAPITAL MANAGEMENTCAPITAL RATIOS – FULL YEAR 2019 (30 SEPTEMBER 2019)Basel III APRA Level 2 Common Equity Tier 1 (CET1)
Common Equity Tier 1 Capital (AUD m)
Total Risk Weighted Assets (AUD m)

Sep-1947,355
416,961Mar-1945,528396,291

Sep-1844,691
390,820

11.4%

11.5%

11.4%

Sep-1943,095379,539

Mar-1942,100376,196

Sep-1843,277373,751

Common Equity Tier 1 Capital Ratio

11.4%

11.2%

11.6%

Basel III RBNZ Common Equity Tier 1 (CET1)
Common Equity Tier 1 Capital (NZD m)
Total Risk Weighted Assets (NZD m)

Sep-1910,447
97,070Mar-199,683
85,254

Sep-18
9,081
82,147

Common Equity Tier 1 Capital Ratio

10.8%

11.4%

11.1%

Common Equity Tier 1 Capital Ratio

Basel III APRA Level 1 Extended licensed Common Equity Tier 1 (CET1)
Common Equity Tier 1 Capital (AUD m)
Total Risk Weighted Assets (AUD m)

ANZ Capital ratios are disclosed in regulatory and financial disclosures available on the ANZ shareholder website (anz.com/shareholder/centre):
Basel III APRA ratios:Basel III RBNZ ratios:

https://www.anz.com/shareholder/centre/reporting/regulatory-disclosure/https://www.anz.com/shareholder/centre/reporting/results-announcement/
https://www.anz.com/shareholder/centre/reporting/new-zealand-disclosure-statement/2