ANZ National Bank Limited
Disclosure Statement
FOR THE SIX MONTHS ENDED 31 MARCH 2011 | NUMBER 61 ISSUED MAY 2011

ANZ National Bank Limited

General Disclosures

For the six months ended 31 March 2011

This Disclosure Statement has been issued in accordancewith the Order.

1

Disclosure Statement

The address for service is Level 6, 1 Victoria Street,
Wellington, New Zealand.

Contents
General Disclosures
Income Statement and Statementof Comprehensive Income
Statement of Changes in Equity
Balance Sheet
Condensed Cash Flow Statement
Notes to the Financial Statements
Conditions of Registration
Directors’ Statement
Auditors’ Report

Credit Rating Information
1
2
3
4
5
6
27
31
32

Glossary of Terms
In this Disclosure Statement unless the context otherwise
requires:(a) “Bank” means ANZ National Bank Limited;(b) “Banking Group” means ANZ National Bank Limited andall its controlled entities;(c) “Immediate Parent Company” means ANZ Holdings(New Zealand) Limited;(d) “NZ Branch” means the New Zealand branch officeof Australia and New Zealand Banking Group Limited;(e) “ANZ New Zealand” means the combined New Zealandoperations of Australia and New Zealand Banking Group
Limited;(f ) “Ultimate Parent Bank” means Australia and
New Zealand Banking Group Limited;(g) “Overseas Banking Group” means the worldwide
operations of Australia and New Zealand Banking Group
Limited including its controlled entities;(h) “RBNZ” means the Reserve Bank of New Zealand;(i) “APRA” means the Australian Prudential Regulation
Authority;(j) “the Order” means the Registered Bank DisclosureStatements (New Zealand Incorporated Registered
Banks) Order 2011; and(k) Any term or expression which is defined in, or in themanner prescribed by, the Order shall have the meaning
given in or prescribed by the Order.

The Bank has three credit ratings, which are applicable to its
long-term senior unsecured obligations which are payable
in New Zealand in New Zealand dollars.
The Bank’s Credit Ratings are:Rating Agency

Current
Credit Rating

Qualification

Standard & Poor’s

AA

Outlook Stable

Moody’s
Investors Service

Aa2

Review for Possible
Downgrade

Fitch Ratings

AA-

Outlook Positive

Guarantors
As at the date of signing of this Disclosure Statement the
only material obligations of the Bank that are guaranteed
are debt securities for which the Crown has issued a
Guarantee Eligibility Certificate under the New Zealand
Wholesale Funding Guarantee Facility (“Crown Wholesale
Guarantee”). The Crown closed the Crown Wholesale
Guarantee to new debt securities on 30 April 2010. The
closure did not affect debt securities previously issued withthe benefit of Crown Wholesale Guarantee.
Copies of the Wholesale Deed, and any Guarantee Eligibility
Certificate issued by the Crown in respect of the Bank, areavailable on the Treasury website treasury.govt.nz. The
address for service for any demand on the Crown under the
Crown Wholesale Guarantee is The Treasurer, New Zealand
Debt Management Office, 1 The Terrace, Wellington. Further
information on the Crown Wholesale Guarantee is provided
in the General Disclosure Statement for the year ended
30 September 2010, which is available at no charge:(a) on the Bank’s websites anz.co.nz and nationalbank.co.nz;
and(b) within two working days of a request, if a request
is made at Level 6, 1 Victoria Street, Wellington,
New Zealand (“the Registered Office”) or at any branchof ANZ or The National Bank of New Zealand.

Directorate
Dr D T Brash resigned as a director with effect from 2 May
2011. There have been no other changes to directors since
the authorisation date of the previous full year General
Disclosure Statement on 22 November 2010.

Auditors
KPMG
Chartered Accountants
10 Customhouse Quay
Wellington, New ZealandANZ National Bank Limited

Income Statement
Unaudited
6 months to
31/03/2011

Unaudited
6 months to
31/03/2010

AuditedYear to30/09/2010

Interest income

3,162

2,839

5,876

Interest expense

1,899

1,681

3,457

Net interest income

1,263

1,158

2,419

Net trading gains

140

16

39

Funds management and insurance income

126

91

218

141

229

445

$ millions

Other operating income

Note

2

Share of profit of equity accounted associates and jointly controlled entities
Operating income
Operating expenses

2

Profit before provision for credit impairment
Provision for credit impairment

7

Profit before income tax

36

42

1,530

3,163

910

748

1,565

761

782

1,598

78

314

436

683

468

1,162

192

101

335

491

367

827

Unaudited
6 months to
31/03/2011

Unaudited
6 months to
31/03/2010

AuditedYear to30/09/2010

491

367

827

Valuation gain before tax

11

59

53

Cumulative gain transferred to the income statement on sale of financial assets

(42)

-

(12)

Income tax expense

3

1
1,671

Profit after income tax

Statement of Comprehensive Income$ millions

Profit after income tax
Available-for-sale revaluation reserve

Cash flow hedging reserve
Valuation gain/(loss) before tax

(4)

2

89

Transferred to income statement

6

21

21

8

14

27

Other items recognised directly in equity
Actuarial gain on defined benefit schemes
Income tax credit/(expense) on items recognised directly in equity

6

(20)

(48)

Net income/(expense) recognised directly in equity

(15)

76

130

Total comprehensive income for the period

476

443

957

The notes to the financial statements form part of and should be read in conjunction with these financial statements

ANZ National Bank Limited
2–3

Statement of Changes in Equity
Unaudited
6 months to
31/03/2011

Unaudited
6 months to
31/03/2010

AuditedYear to30/09/2010

6,943

6,943

6,943

Balance at beginning of the period

58

25

25

Valuation gain recognised after tax

6

51

42

Transferred to income statement after tax

(29)

-

(9)

Balance at end of the period

35

76

58

102

23

23
64

$ millions

Ordinary share capital
Balance at beginning and end of period
Available-for-sale revaluation reserve

Cash flow hedging reserve
Balance at beginning of the period
Valuation gain/(loss) recognised after tax(2)

1

Transferred to income statement after tax

4

14

15

Balance at end of the period

104

38

102

Total reserves

139

114

160

3,342

3,097

3,097

491

367

827

6

10

18

Retained earnings
Balance at beginning of the period
Profit after income tax attributable to parent
Actuarial gain on defined benefit schemes after tax
Ordinary dividend paid

(430)

-

(600)

Balance at end of the period

3,409

3,474

3,342

Non-controlling interests
Balance at beginning of the period

1

-

-

Acquired in a business combination

-

1

1

Balance at end of the period

1

1

1

10,446

10,08810,088

Total comprehensive income for the period

476

443

957

Transactions with shareholders

(430)

-

(600)

-

1

1

10,492

10,532

10,446

Total equity
Balance at beginning of the period

Change in non-controlling interests
Balance at end of the period

The notes to the financial statements form part of and should be read in conjunction with these financial statements

ANZ National Bank Limited

Balance Sheet
Unaudited
31/03/2011

Unaudited
31/03/2010

Audited30/09/2010

Liquid assets

1,799

2,519

2,238

Due from other financial institutions

3,267

2,101

3,496

Trading securities

7,373

6,366

6,757

Derivative financial instruments

9,553

8,713

10,367

841

1,850

2,210
85,913$ millions

Note

AssetsAvailable-for-sale assets

85,36985,670Investments backing insurance policyholder liabilities

24

38

28

Insurance policy assets

169

106

138

Net loans and advances

5

-

500

6

Shares in associates and jointly controlled entities

145

144

144

Current tax assets

61

107

25

1,621

1,170

965

228

425

312

Due from Immediate Parent Company

Other assets
Deferred tax assets

331

305

311

3,532

3,563

3,548

Total assets

114,313

113,577

116,458

Interest earning and discount bearing assets

97,442

98,434

98,250Premises and equipment
Goodwill and other intangible assets

Liabilities
Due to other financial institutions

8

1,651

1,336

1,819

Deposits and other borrowings

9

68,34970,63670,29511--

Due to Immediate Parent Company
Derivative financial instruments

9,795

9,152

10,715

Payables and other liabilities

2,263

2,084

1,700

377

341

315

Bonds and notes

18,94816,85518,761

Loan capital

2,427

2,641

2,407

Total liabilities

103,821103,045

106,012

Net assets

10,492

10,532

10,446

6,943

6,943

6,943

Provisions

EquityOrdinary share capital

139

114

160

Retained earnings

3,409

3,474

3,342

Parent shareholders' equity

10,491

10,531

10,4451

1

1

Total equity

10,492

10,532

10,446

Interest and discount bearing liabilities

86,13986,573

86,956

Reserves

Non-controlling interests

The notes to the financial statements form part of and should be read in conjunction with these financial statements

ANZ National Bank Limited
4–5

Condensed Cash Flow Statement$ millions

Unaudited
6 months toNote 31/03/2011

Unaudited
6 months to
31/03/2010

AuditedYear to30/09/2010

Cash flows from operating activities
Interest received

3,088

2,775

5,636

Interest paid

(1,842)(1,734)(3,412)Other cash inflows provided by operating activities

468

433

910

Other cash outflows used in operating activities(957)(1,323)(2,105)

Cash flows from operating profits before changes in operating assets and liabilities

757

151

1,029

(1,379)(960)(1,775)

(622)

(809)

(746)

Net changes in operating assets and liabilities
Net cash flows used in operating activities

14

Cash flows from investing activities
Cash inflows provided by investing activities

-

2

8

Cash outflows used in investing activities

(62)

(317)

(370)

Net cash flows used in investing activities

(62)

(315)

(362)

Cash inflows provided by financing activities

3,617

2,791

5,481

Cash outflows used in financing activities(1,956)(3,233)(5,561)

Net cash flows provided by/(used in) financing activities

1,661

(442)

(80)

977

(1,566)(1,188)

3,577

4,765

4,765

4,554

3,199

3,577

Cash flows from financing activities

Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

14

The notes to the financial statements form part of and should be read in conjunction with these financial statements

ANZ National Bank Limited

Notes to the Financial Statements
1. Significant Accounting Policies(i) Reporting entity and statement of compliance
These financial statements are for the Banking Group for the six months ended 31 March 2011. They have been preparedin accordance with the requirements of NZ IAS 34 Interim Financial Reporting, and the Order, and should be read in
conjunction with the Banking Group’s financial statements for the year ended 30 September 2010.
(ii) Basis of measurement
These financial statements have been prepared on a going concern basis in accordance with historical cost concepts
except that the following assets and liabilities are stated at their fair value:• derivative financial instruments, including in the case of fair value hedging, the fair value of any applicable
underlying exposure;• financial instruments held for trading;• financial assets treated as available-for-sale; and• financial instruments designated at fair value through profit and loss.
Insurance policy assets are measured using the Margin on Services basis, and defined benefit obligations are measured
using the Projected Unit Credit method.
(iii) Changes in accounting policies
The accounting policies adopted by the Banking Group are consistent with those adopted and disclosed in the previous
full year General Disclosure Statement.
(iv) Presentation currency and rounding
The amounts contained in the financial statements are presented in millions of New Zealand dollars, unless otherwise
stated.
(v) Comparatives
Prior to 30 September 2010 some fee income integral to the effective interest rate of financial assets was presented inother operating income. Since this date this income has been classified to interest income, to more accurately reflect
the nature of the income.
Comparative data has been restated accordingly. For the period ended 31 March 2010 this reclassification has for the
Banking Group, increased interest income by $61 million and reduced other operating income by a corresponding
amount. There was no impact on total operating income or profit after income tax.
Certain other amounts in the comparative information have been reclassified to ensure consistency with the current
period’s presentation.
(vi) Principles of consolidation
The financial statements consolidate the financial statements of the Bank and its controlled entities.

2. Operating Income and Expenses
Other operating income for the six months ended 31 March 2011 includes a fair value loss of $92 million (six months ended
31/03/2010 $56 million gain; year ended 30/09/2010 $52 million gain) on the revaluation of financial assets and liabilities
designated at fair value and on hedging activities. Other operating income excluding these fair value adjustments is$233 million (six months ended 31/03/2010 $173 million; year ended 30/09/2010 $393 million).
Operating expenses include a one-off cost for the six months ended 31 March 2011 of $141 million incurred in relation to theplanned move to a single banking technology platform and a simplified regional management structure, which is expected todeliver further operational efficiencies and improved service levels and business outcomes.

3. Income Tax Expense$ millions

Income tax expense before change in tax provisions and the effect of changes in tax legislation
Changes in tax provisions

Unaudited
6 months to
31/03/2011

Unaudited
6 months to
31/03/2010

AuditedYear to30/09/2010

199

145

344

(4)

(44)

(54)

(3)

-

45

192

101

335

Effective tax rate (%) before change in tax provisions and the effect of changes in tax legislation

29.1%

31.0%

29.6%

Effective tax rate (%)

28.1%

21.6%

28.8%

Effect of changes in tax legislation
Income tax expense recognised in the income statement

ANZ National Bank Limited

4. Segmental Analysis
For segment reporting purposes, the Banking Group is organised into three major business segments – Retail, Commercial andInstitutional. Centralised back office and corporate functions support these segments. These segments are consistent withinternal reporting provided to the chief operating decision maker, being the Bank’s Chief Executive Officer.
During the six months ended 31 March 2011 a specialist standalone business banking unit was created within the Commercial
segment. Segmental reporting has been updated to reflect this and other minor changes to the Banking Group’s structure.
Comparative data has been adjusted to be consistent with the current period’s segment definitions.
RetailRetail provides banking products and services to individuals through separate ANZ and The National Bank of New Zealand
branded distribution channels. Personal banking customers have access to a wide range of financial services and products.
The Banking Group’s wealth businesses include private banking and investment services provided to high net worth individuals,
the OnePath wealth management and insurance businesses, and other investment products. This segment also includes otherprofit centres supporting the Retail Banking segment.
Commercial
Commercial provides services to Business Banking, Commercial & Agri, and UDC customers. Business Banking services areoffered to small enterprises (typically with annual revenues of less than $5 million). Commercial & Agri customers consist of
primarily privately owned medium to large enterprises. The Banking Group’s relationship with these businesses ranges from
simple banking requirements with revenue from deposit and transactional facilities, and cash flow lending, to more complex
funding arrangements with revenue sourced from a wider range of products. UDC is principally involved in the financing andleasing of plant, vehicles and equipment, mainly for small and medium sized businesses, as well as investment products.
Institutional
Institutional provides financial services to large multi-banked corporations, often global, who require sophisticated productand structuring solutions. The Institutional business unit includes the following specialised units:•••

Markets – provides foreign exchange, interest rate and commodity trading and sales-related services, origination,
underwriting, structuring, risk management and sale of credit and derivative products globally;
Transaction Banking – provides cash management, trade finance and international payments;
Specialised Lending – provides origination, credit analysis, structuring and execution of specific customer transactions.

Other
Other includes treasury and back office support functions, none of which constitutes a separately reportable segment.

6–7

Notes to the Financial Statements

ANZ National Bank Limited

Notes to the Financial Statements
Business segment analysis1
Retail2

Commercial

Institutional

Other3

Total

External revenues

644

1,496

264

(733)

1,671

Intersegment revenues

53

(791)

40

698

-

Total revenues

697

705

304

(35)

1,671

Profit before income tax

232

409

228

(186)

683

External revenues

651

1,484

(18)

(587)

1,530

Intersegment revenues

(158)

(837)

332

663

-

Total revenues

493

647

314

76

1,530

(2)

145

264

61

468
3,163

$ millions

Unaudited 6 months to 31/03/2011

Unaudited 6 months to 31/03/2010

Profit before income tax
Audited year to 30/09/2010
External revenues

1,311

2,976

109

(1,233)

Intersegment revenues(212)(1,629)

491

1,350

-

Total revenues

1,099

1,347

600

117

3,163

86

510

495

71

1,162

Profit before income tax
1
2
3

Intersegment transfers are accounted for and determined on an arm’s length or cost recovery basis.
The comparative periods’ results include a loss on acquisition of ING (NZ) Holdings Limited of $82 million.
This segment has negative external revenues as this segment incurs funding costs on behalf of the Banking Group and is reimbursed internally.

5. Net Loans and Advances$ millions

Note

Overdrafts

Unaudited
31/03/2011

Unaudited
31/03/2010

Audited30/09/2010

1,933

2,014

2,131

Credit card outstandings

1,386

1,417

1,388

Term loans – housing

44,09843,49543,887

Term loans – non-housing

38,59539,382

39,179Finance lease receivables

749

692

726

Gross loans and advances

86,76187,00087,311(1,264)(1,457)(1,398)Provision for credit impairment

7

Unearned finance income

(263)

(252)

(273)

Fair value hedge adjustment

153

378

279

Deferred fee revenue and expenses

(53)

(50)

(49)

Capitalised brokerage/mortgage origination fees

35

51

43

85,36985,67085,913

Total net loans and advances

The Bank has sold residential mortgages to the NZ Branch with a carrying value of $9,987 million as at 31 March 2011 (31/03/2010$10,029 million, 30/09/2010 $10,058 million). These assets qualify for derecognition as the Bank does not retain a continuing
involvement in the transferred assets.

ANZ National Bank Limited
8–9

Notes to the Financial Statements
6. Impaired Assets, Past Due Assets and Other Assets Under Administration
Individually impaired assets$ millions

Retail Other retailmortgages exposures

Non retail
exposures

Total

Unaudited 31/03/2011
Balance at beginning of the period

511

81

1,403

1,995

Transfers from productive

242

71

453

766

Transfers to productive

(30)

-

(16)

(46)

Assets realised or loans repaid

(188)

(30)

(253)

(471)

Write offs

(33)

(51)

(96)

(180)

Total impaired assets

502

71

1,491

2,064

Balance at beginning of the period

377

59

740

1,176

Transfers from productive

282

132

666

1,080

Transfers to productive

(7)

(1)

(52)

(60)
(373)

Unaudited 31/03/2010

Assets realised or loans repaid

(172)

(32)

(169)

Write offs

(36)

(63)

(20)

(119)

Total impaired assets

444

95

1,165

1,704

Audited 30/09/2010
Balance at beginning of the year

377

59

740

1,176

Transfers from productive

532

258

1,282

2,072

Transfers to productive

(20)

(2)

(73)

(95)

Assets realised or loans repaid

(321)

(111)

(454)

(886)

Write offs

(57)

(123)

(92)

(272)

Total impaired assets

511

81

1,403

1,995

Credit quality of financial assets that are past due but not impaired
A large portion of retail credit exposures, such as residential mortgages, are generally well secured. That is, the fair value of
associated security is sufficient to ensure that the Banking Group will recover the entire amount owing over the life of the
facility and there is reasonable assurance that collection efforts will result in payment of the amounts due in a timely manner.
Ageing analysis of loans that are past due but not impaired$ millions

Retail Other retailmortgages exposures

Non retail
exposures

Total

Unaudited 31/03/2011
1 to 5 days

309

112

491

912

6 to 29 days

510

113

103

726

1 to 30 days

819

225

594

1,638

30 to 59 days

242

45

312

599

60 to 89 days

73

21

193

287

90 days or over

162

45

106

313

1,296

336

1,205

2,837

ANZ National Bank Limited

Notes to the Financial Statements
Other assets under administration
Other assets under administration are any loans, not being impaired or 90 days past due, where the customer is in any form ofvoluntary or involuntary administration, including receivership, liquidation, bankruptcy or statutory management.
$ millions

Retail Other retailmortgages exposures

Non retail
exposures

Total

Unaudited 31/03/2011
Other assets under administration

-

-

12

12

Undrawn facilities with impaired customers

-

-

46

46

Other assets under administration

-

-

1

1

Undrawn facilities with impaired customers

-

-

100

100

Other assets under administration

-

-

4

4

Undrawn facilities with impaired customers

-

-

32

32

Unaudited 31/03/2010

Audited 30/09/2010

ANZ National Bank Limited
10 – 11

Notes to the Financial Statements
7. Provision for Credit Impairment$ millions

Retail Other retailmortgages exposures

Non retail
exposures

Total

533

793

Unaudited 31/03/2011
Collective provision
Balance at beginning of the period
Charge/(credit) to income statement
Balance at end of the period

111

149

(5)

1

(62)

(66)

106

150

471

727

Individual provision (individually impaired assets)
207

51

347

605

Charge to income statement

8

38

98

144

Recoveries of amounts previously written off

-

9

1

10

Bad debts written off

(33)

(51)

(96)

(180)

Discount unwind

(9)

(1)

(32)

(42)

Balance at beginning of the period

Balance at end of the period

173

46

318

537

Total provision for credit impairment

279

196

789

1,264

Collective provision charge/(credit)

(5)

1

(62)

(66)

Individual provision charge

8

38

98

144

Total charge to income statement

3

39

36

78

Balance at beginning of the period

121

159

518

798

Charge/(credit) to income statement

(4)

2

60

58

Balance at end of the period

117

161

578

856

Balance at beginning of the period

153

40

281

474

Charge to income statement

95

60

101

256

Recoveries of amounts previously written off

1

8

1

10

Bad debts written off

(36)

(63)

(20)

(119)

Discount unwind

(7)

(1)

(12)

(20)

Balance at end of the period

206

44

351

601

Total provision for credit impairment

323

205

929

1,457

Collective provision charge/(credit)

(4)

2

60

58

Individual provision charge

95

60

101

256

Total charge to income statement

91

62

161

314

Balance at beginning of the year

121

159

518

798

Charge/(credit) to income statement

(10)

(10)

15

(5)

Balance at end of the year

111

149

533

793

Balance at beginning of the year

153

40

281

474

Charge to income statement

125

120

196

441

2

17

2

21
(272)

Unaudited 31/03/2010
Collective provision

Individual provision (individually impaired assets)

Audited 30/09/2010
Collective provision

Individual provision (individually impaired assets)

Recoveries of amounts previously written off
Bad debts written off

(57)

(123)

(92)

Discount unwind

(16)

(3)

(40)

(59)

Balance at end of the year

207

51

347

605
1,398

Total provision for credit impairment

318

200

880

Collective provision charge/(credit)

(10)

(10)

15

(5)

Individual provision charge

125

120

196

441

Total charge to income statement

115

110

211

436

ANZ National Bank Limited

Notes to the Financial Statements
8. Repurchase Agreements
Included in due to other financial institutions, and deposits and other borrowings, are liabilities which are secured by securities
with a carrying amount of $390 million (31/03/2010 $36 million; 30/09/2010 $222 million) which were sold under agreements
to repurchase.

9. Deposits and Other Borrowings
Unaudited
31/03/2011

Unaudited
31/03/2010

Audited30/09/2010

2,666

3,950

3,245

Term deposits

35,67833,39434,687

Demand deposits bearing interest

20,095

19,62318,714

Deposits not bearing interest

5,455

4,895

4,964

1,584

1,358

1,378

10

-

-

65,48863,22062,988$ millions

Note

Amortised cost
Certificates of deposit

Secured debenture stock
Securities sold under agreement to repurchaseTotal deposits and other borrowings recognised at amortised cost

8

Fair value through profit or loss
Commercial paper

2,861

7,416

7,307

Total deposits and other borrowings recognised at fair value

2,861

7,416

7,307

Total deposits and other borrowings

68,34970,63670,295

2,164

1,898

2,111

Secured debenture stock is secured over:Carrying value of total tangible assets of UDC Finance Limited

Registered secured debenture stock is constituted and secured by a trust deed between UDC Finance Limited and its
independent trustee, Trustees Executors Limited. The trust deed creates floating charges over all the assets, primarily loans
and advances, of UDC Finance Limited.

10. Related Party Transactions
Unaudited
31/03/2011

Unaudited
31/03/2010

Audited30/09/2010

Total due from related parties

3,211

2,566

3,941

Total due to related parties

6,088

6,327

7,314

$ millions

ANZ National Bank Limited
12 – 13

Notes to the Financial Statements
11. Capital Adequacy
Capital ratios of the Banking Group under the Basel II internal models based approach (Unaudited)

Tier One Capital

31/03/2011

31/03/2010

30/09/2010

9.55%

9.54%

9.68%

RBNZ minimum Tier One Capital ratio

4.00%

4.00%

4.00%

Total Capital

12.87%

13.24%

13.11%

RBNZ minimum Total Capital ratio

8.00%

8.00%

8.00%

Capital as at 31 March 2011 (Unaudited)$mTier One Capital
Ordinary share capital

6,943

Revenue and similar reserves

3,057

Current period's profit after tax

491

Non-controlling interests

1

Less deductions from Tier One Capital
3,265

Goodwill
Software and other intangible assets

267

Future income tax benefits

46

Cash flow hedging reserve104

50% of expected loss to the extent higher than total eligible allowances for impairment

88
6,722

Total Tier One Capital
Tier Two Capital – Upper Level
Perpetual subordinated debt

1,196

Tier Two Capital – Lower Level
Term subordinated debt

1,231

Less deductions from Tier Two Capital
50% of expected loss to the extent higher than total eligible allowances for impairment

88

Total Tier Two Capital

2,339

Total Capital

9,061

Total required capital as at 31 March 2011 (Unaudited)
Risk weighted
exposure or
implied risk
Exposure atweighted Total capitaldefault
exposure2 requirement$ millions

Exposures subject to internal ratings based approach
Specialised lending exposures subject to slotting approach
Exposures subject to standardised approach

3,928

7,384

591

291

276

22

Equity exposures

220

935

75

2,212

786

63

Total credit risk

129,546

58,476

4,679

Operational risk

n/a

5,113

409

Market risk

n/a

3,886

311

Supervisory adjustment

Total capital requirement249,095

7,497

Other exposures1

1

119,326

n/a

2,914

233

129,546

70,3895,632

The supervisory adjustment includes an adjustment to the risk weighted exposure of retail mortgages in accordance with the Bank’s Conditionsof Registration.
Total credit risk weighted exposures include a scalar of 1.06 in accordance with the Bank’s Conditions of Registration.

ANZ National Bank Limited

Notes to the Financial Statements
Bank solo capital adequacy ratios under the Basel I approach (Unaudited)
31/03/2011

31/03/2010

30/09/2010

Tier One Capital

9.26%

9.01%

9.20%

Total Capital

11.60%

12.48%

11.46%

Total risk-weighted exposures ($ millions)73,202

72,846

72,487RBNZ minimum Tier One Capital

4.00%

4.00%

4.00%

RBNZ minimum Total Capital

8.00%

8.00%

8.00%

Basel I capital adequacy in respect of the Bank has been derived in accordance with the RBNZ document entitled ‘Capital
Adequacy Framework (Basel I Approach)’ (“BS2”), dated October 2010.
Implementation of the advanced internal ratings based approach to credit risk measurement
The Banking Group adheres to the standards of risk grading and risk quantification as set out for Internal Ratings Based (“IRB”)
banks in the RBNZ document BS2B.
Under this IRB Framework banks use their own measures for calculating the level of credit risk associated with customers andexposures, by way of the primary components of:
Probability of Default (“PD”) – an estimate of the level of risk of borrower default graded by way of rating models used bothat loan origination and for ongoing monitoring. For retail mortgage exposures the Banking Group is required to use the RBNZ
prescribed exposure weighted minimum PD of 1.25%;
Exposure at Default (“EAD”) – the expected facility exposure at default. Total credit risk-weighted exposures include a scalarof 1.06 in accordance with the Bank’s Conditions of Registration; andLoss Given Default (“LGD”) – an estimate of the potential economic loss on a credit exposure, incurred as a consequence ofobligor default and expressed as a percentage of the facility’s EAD. For retail mortgage exposures the Bank is required to apply
the downturn LGDs according to loan to value (“LVR”) bands as set out in BS2B. For Rural Banking exposures the Banking Groupis required to adopt RBNZ prescribed downturn LGDs which are more conservative than internal estimates.
For exposures classified under Specialised Lending, the Banking Group uses slotting tables supplied by the RBNZ rather thaninternal estimates.
The exceptions to IRB treatment are five minor portfolios where, due to systems constraints or other reasons, determining
these IRB risk estimates is not currently feasible or appropriate. Risk weights for these exposures are calculated under a separate
treatment as set out in the RBNZ document entitled ‘Capital Adequacy Framework (Standardised Approach)’ (“BS2A”), dated
October 2010.

ANZ National Bank Limited
14 – 15

Notes to the Financial Statements
Capital requirements by asset class under the IRB approach (Unaudited)

As at 31/03/2011

Total
exposureor principal
amount$m

Exposureweighted LGD
used for the
Exposure at
capitaldefault
calculation$m%

Exposureweighted
risk
weight%Riskweighted
exposure$m

Total capitalrequirement$mOn-balance sheet exposures
Corporate

34,90934,37137

65

23,691

1,895

Sovereign

6,959

6,959

5

1

59

5

Bank

4,995

3,423

60

14

507

41

Retail mortgages

41,372

41,37221

24

10,645852

Other retail

4,452

4,452

60

74

3,486

279

Total on-balance sheet exposures

92,687

90,57729

40

38,388

3,072

12,815

10,154

46

45

4,844

387

Off-balance sheet exposures
Corporate
Sovereign

61

61

5

-

-

-

Bank

956

825

49

16

139

11

Retail mortgages

5,563

5,119

18

20

1,080

86

Other retail

4,647

4,627

75

51

2,478

199

Total off-balance sheet exposures

24,042

20,786

46

39

8,541

683

Market related contracts
Corporate

64,653

1,918

58

49

998

80

Sovereign

14,807

566

5

1

5

-

Bank

600,653

5,479

65

20

1,163

93

Total market related contracts

680,113

7,963

59

26

2,166

173

Total credit risk exposures subject to the IRB approach

796,842

119,32634

39

49,095

3,928

ANZ National Bank Limited

Notes to the Financial Statements
IRB exposures by customer credit rating

As at 31/03/2011 (Unaudited)

Probabilityof default%

Exposureweighted LGD
used for the
Exposure at
capitaldefault
calculation$m%

Exposureweighted
risk
weight%Riskweighted
exposure$m

Total capitalrequirement
$m

24

1,547

124

Corporate
0-2

0.05

6,105

61

3-4

0.34

18,634

35

33

6,593

527

5

1.00

10,183

35

57

6,203

496

6

2.29

5,607

37

77

4,563

365

7-8

7.20

4,321

40

115

5,289

423

Default

100.00

1,593

46

316

5,338

427

4.74

46,44340

60

29,533

2,362

0

0.01

7,586

5

1

64

5

Total sovereign exposures

0.01

7,586

5

1

64

5

0.01

6,359

65

16

1,110

89

1

0.02

2,873

54

17

524

42

2-4

0.09

481

62

31

160

13

5-6

1.27

11

65

115

14

1

Total corporate exposures
Sovereign

Bank
0

7-8

6.77

-

65

217

1

-

Default

100.00

3

65

-

-

-

0.05

9,727

62

18

1,809

145

0-3

0.19

18,124

20

8

1,467

117

4

0.44

9,255

21

15

1,425

114

5

0.94

12,452

21

26

3,376

270

6

2.34

3,271

22

47

1,642

131

7-8

11.86

2,552

23

106

2,873

230

Default

100.00

837

33

106

942

76

3.03

46,491

21

24

11,725938

Total bank exposures
Retail mortgages

Total residential mortgage exposures
Other retail
0-2

0.09

21

77

18

4

-

3-4

0.30

4,210

72

36

1,588

127

5

1.11

1,943

66

68

1,402

112

6

2.62

1,575

60

81

1,352

108

7-8

11.23

1,162

68

119

1,460

117

Default

100.00

168

62

89

158

14

Total other retail exposures

4.12

9,079

68

62

5,964

478

Total credit risk exposures subject to the IRB approach

3.34

119,32634

39

49,095

3,928

Credit risk exposures subject to the IRB approach have been derived in accordance with BS2B and other relevant correspondencewith RBNZ setting out prescribed credit risk estimates.

ANZ National Bank Limited
16 – 17

Notes to the Financial Statements
Specialised lending subject to the slotting approach
Exposureamount$m

As at 31/03/2011 (Unaudited)

Risk Risk weighted
weightexposure%$m

Total capitalrequirement$mOn-balance sheet exposures
Strong

1,808

Good

3,053

Satisfactory

1,313
319

250

Weak
Default
Total on-balance sheet exposures

70

1,342

107

90

2,913

233

115

1,599

128

844

68

367

-

-

-

6,860

92

6,698

536

Average risk Risk weighted
weightexposure%$m

Total capitalrequirement$m

Exposureamount$m

Exposure atdefault
$m

771

556

Off-balance sheet exposures
Undrawn commitments and other off balance sheet exposures

103

608

49

Market related contracts

1,617

81

91

78

6

Total off-balance sheet exposures

2,388

637

102

686

55

Specialised lending exposures subject to the slotting approach have been calculated in accordance with BS2B.
The supervisory categories of specialised lending above are associated with specific risk-weights. These categories broadly
correspond to the following external credit assessments using Standard & Poor’s rating scale: Strong: BBB- or better;
Good: BB+ or BB, Satisfactory: BB- or B+; and Weak: B to C-.
Credit risk exposures subject to the standardised approach
Exposureamount$m

As at 31/03/2011 (Unaudited)

Risk Risk weighted
weightexposure%$m

Total capitalrequirement$mOn-balance sheet exposures
Corporates

58

100

61

5

Residential mortgages

2

36

1

-

Other retail

1

100

1

-

Default

2

150

3

-

Total on-balance sheet exposures

63

99

66

5

Average risk Risk weighted
weightexposure%$m

Total capitalrequirement$m

Exposureamount$m

Average credit
conversion
factor%Creditequivalentamount
$m

508

45

228

Off-balance sheet exposures
Undrawn commitments and otheroff balance sheet exposures

87

210

17

Risk Risk weighted
weightexposure%$m

Total capitalrequirement$m

Credit exposures subject to the Standardised Approach have been calculated in accordance with BS2A.
Equity Exposures
As at 31/03/2011 (Unaudited)

All other equity holdings not deducted from capital

Equity exposures have been calculated in accordance with BS2B.

Exposureamount
$m

220

400

935

75

ANZ National Bank Limited

Notes to the Financial Statements
Other exposures

As at 31/03/2011 (Unaudited)

Cash and gold bullion
New Zealand dollar denominated claims on the Crown and the RBNZ
Other assets
Total other IRB credit risk exposures

Exposureamount$m

Risk Risk weighted
weightexposure%$m

Total capitalrequirement
$m

186

-

-

1,284

-

-

-

742

100

786

63

2,212

34

786

63

Other exposures have been calculated in accordance with BS2B.
A risk weight of 100% applies to premises and equipment and all other exposures not otherwise defined in BS2B, except for
cash, gold, New Zealand dollar denominated claims on the Crown and the RBNZ, which receive a 0% risk weight.
Credit risk mitigation
The Banking Group assesses the integrity and ability of counterparties to meet their contractual financial obligations for
repayment. The Banking Group generally takes collateral security in the form of real property or a security interest in personal
property, except for major government, bank and corporate counterparties of strong financial standing. Longer term consumer
finance, in the form of housing loans, is generally secured against real estate while short term revolving consumer credit isgenerally unsecured.
As at 31 March 2011, under the IRB approach, the Banking Group had $1,334 million of Corporate exposures covered byguarantees, where the presence of the guarantees are judged to have reduced the underlying credit risk of the exposures.
Information on the total value of exposures covered by financial guarantees and eligible financial collateral is not disclosed, as
the effect of these guarantees and collateral on the underlying credit risk exposures is not considered to be material.
Operational risk
The Banking Group uses the Advanced Measurement Approach for determining its regulatory capital requirement for
operational risk calculated in accordance with BS2B. As at 31 March 2011 the Banking Group had an implied risk weighted
exposure of $5,113 million for operational risk and an operational risk capital requirement of $409 million.
Market risk
The aggregate market risk exposures below have been calculated in accordance with BS2B.
The peak end-of-day market risk exposures for the period are calculated separately for each category of exposure and may nothave occurred at the same time.
Implied risk weighted
exposure

Aggregate
capital charge

As at
$m

Peak
$m

As at
$m

Peak
$m

3,744

5,392

300

431

67

85

5

7

75

82

6

7

Unaudited 31/03/2011
Interest rate risk
Foreign currency risk
Equity risk

3,886

311

Pillar II capital for other material risks
The Banking Group has an Internal Capital Adequacy Assessment Process (“ICAAP”) which complies with the requirements of
the Bank’s Conditions of Registration.
Under the Banking Group’s ICAAP it identifies and measures all “other material risks”, which are those material risks that are notexplicitly captured in the calculation of the Banking Group’s tier one and total capital ratios. The other material risks identified
by the Banking Group include business risk, pension risk, insurance risk, premises and equipment risk and capitalised
origination fees risk.
The Banking Group’s internal capital allocation for these other material risks is $329 million (31/03/2010 $378 million;
30/09/2010 $401 million)

ANZ National Bank Limited
18 – 19

Notes to the Financial Statements
Retail mortgages by loan-to-valuation ratio (“LVR”)
As required by the RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by the Banking
Group’s valuation of the security property at origination of the exposure and commitments to lend include formal offers forhousing lending which may or may not be accepted by the customer.
Drawn andundrawn retailmortgages

Commitments
to lendTotal

20,003431

20,43460% - 69%

7,365

284

7,649

70% - 79%

8,972

574

9,546

80% - 89%

4,690

372

5,062

As at 31/03/2011 (Unaudited)$ millions

LVR range
0% - 59%Over 90%

4,206

38

4,244

Total

45,236

1,699

46,935

Note

Unaudited
31/03/2011

5

44,098Reconciliation of mortgage related amounts$ millions

Term loans – housing
Plus: short term housing loans classified as overdrafts

332

Less: housing loans made to corporate customers(3,058)On-balance sheet retail mortgage exposures subject to the IRB approach

41,372Off-balance sheet retail mortgage exposures subject to the IRB approach

5,563

Total retail mortgage exposures subject to the IRB approach (as per LVR analysis)

46,935

Terms of Tier Two Capital instruments
Loan capital is subordinated in right of payment in the event of liquidation or wind up to the claims of depositors and all
creditors of the Bank. The perpetual subordinated debt qualifies as Upper Level Tier Two Capital for capital adequacy purposes.
All other subordinated debt qualifies as Lower Level Tier Two Capital.
Loan capital$ millions

Unaudited
31/03/2011

AUD 265,740,000 perpetual subordinated floating rate loan361

AUD 43,767,507 term subordinated floating rate loan59

AUD 169,520,000 term subordinated floating rate loan

230

Term subordinated fixed rate bonds

950

Perpetual subordinated bond835

Total loan capital issued
Less: loan capital instruments held
Total loan capital

2,435
(8)
2,427

AUD 265,740,000 loan
This loan has no fixed maturity. Interest is payable half yearly in arrears based on BBSW + 0.95% p.a., with interest payments
due 15 March and 15 September.
AUD 43,767,507 loan
This loan has an ultimate maturity date of 15 September 2016. The Bank may elect to repay the loan on 15 September each year
commencing from 2011 through to 2015. All interest is payable half yearly in arrears, with interest payments due 15 March and
15 September. Interest is based on BBSW + 0.29% p.a. to 15 September 2011 and increases to BBSW + 0.79% p.a. thereafter.

ANZ National Bank Limited

Notes to the Financial Statements
AUD 169,520,000 loan
This loan has an ultimate maturity date of 18 September 2017. The Bank may elect to repay the loan on 17 September each year
commencing from 2012 through to 2016. All interest is payable half yearly in arrears, with interest payments due 17 March and
17 September. Interest is based on BBSW + 0.68% p.a. to 17 September 2012 and increases to BBSW + 1.18% p.a. thereafter.
NZD subordinated bonds
Term subordinated fixed rate bonds
Issue dateAmount $m

Coupon rate

Call date

Maturity date

15 September 2006

350

7.16%

15 September 201115 September 2016

2 March 2007

250

7.60%

2 March 2012

2 March 201723 July 2007

350

8.23%

23 July 201223 July 2017

As at 31 March 2011, these bonds carried an AA- rating by Standard & Poor’s.
The Bank may elect to redeem the bonds on their call date. If the bonds are not called the Bank will continue to pay interest
to maturity at the five year interest rate swap rate plus 0.75% p.a., 0.76% p.a. and 0.62% p.a. for the 15 September 2006;
2 March 2007 and 23 July 2007 bonds respectively. Interest is payable half yearly in arrears based on the fixed coupon rate.
Perpetual subordinated bondIssue date

18 April 2008

Amount $m

Coupon rate

1st Call date

2nd Call date

835

9.66%

18 April 201318 April 2018

The Bank may elect to redeem the bond on 18 April 2013, 18 April 2018 or any interest payment date subsequent to18 April 2018. Interest is payable half yearly in arrears on 18 April and 18 October each year, beginning on 18 October 2008, up
to and including the Second Call Date and then quarterly thereafter. If the bond is not called at the First Call Date, the coupon
rate will reset to the five year interest swap rate plus 2.00%. Should the bond not be called at the Second Call Date, the Coupon
Rate from the Second Call Date onwards will be set on a quarterly basis to the three month FRA rate plus 3.00%.
As at 31 March 2011, this bond carried an A+ rating by Standard and Poor’s and an A1 rating by Moody’s.
Interest may not necessarily be paid on each interest payment date as under the terms of the bonds, the Bank has a generalright and in certain specified circumstances an obligation, to defer payment of interest on the bonds.
Capital adequacy of the Ultimate Parent Bank under the Basel II approach
Ultimate Parent Bank
(Extended Licensed Entity)

Overseas Banking Group
31/03/2011

31/03/2010

30/09/2010

31/03/2010

30/09/2010

Tier One Capital

10.5%

10.7%

10.1%

11.9%

11.0%

Total Capital

12.1%

13.0%

11.9%

13.7%

12.3%

For calculation of minimum capital requirements under Pillar I of the Basel II Accord, APRA has accredited the Ultimate Parent
Bank to use the Advanced Internal Ratings Based (“AIRB”) methodology for calculation of credit risk weighted assets and theAdvanced Measurement Approach (“AMA”) for the operational risk weighted asset equivalent.
Under prudential regulations, the Ultimate Parent Bank is required to hold a minimum Prudential Capital Ratio (“PCR”)
as determined by APRA. The Ultimate Parent Bank met the minimum capital adequacy requirements set by APRA as at
31 March 2011 and for the comparative prior periods.
The Ultimate Parent Bank is required to publicly disclose Pillar III financial information as at 31 March 2011. The Ultimate Parent
Bank’s Consolidated Financial Report, Dividend Announcement and Appendix 4E, for the six months ended to 31 March 2011,
discloses capital adequacy ratios calculated under the Basel II methodology. The Ultimate Parent Bank also prepares a quarterly
Basel II Pillar III disclosure document, the APS 330. All these documents can be accessed at the website anz.com.

ANZ National Bank Limited
20 – 21

Notes to the Financial Statements
12. Financial Risk Management
Concentrations of credit risk
Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities within
the same geographic region, or when they have similar risk characteristics that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic or other conditions.
Concentrations of credit risk analysis

Unaudited 31/03/2011$ millions

Liquidassets anddue fromotherfinancial
institutions

Tradingsecurities
andavailablefor-saleassetsDerivative
financial
instruments

Netloans andadvanceOtherfinancialassetsCreditrelatedcommitments

Total
19,831

Industry
Agriculture

1

-

89

18,078116

1,547

Forestry and fishing

15

-

9

474

3

78

579

Business & property services

11

1

52

8,757

56

2,100

10,977

Construction

-

-

2

1,009

6

889

1,906

Entertainment, leisure and tourism

1

-

35

1,099

7

540

1,682

Finance and insurance

3,594

3,025

8,317

1,151

976

1,336

18,399Government and local authority1

1,403

4,951

324

1,142

7

869

8,696

Manufacturing

14

16

128

3,147

20

3,433

6,758

Personal lending

9

-

28

45,751

293

9,502

55,583Retail trade

-

1

79

1,581

10

1,035

2,706

Transport and storage

-

30

130

1,638

10

622

2,430

Wholesale trade

9

-

19

1,207

8

1,400

2,643

Other2

9

190

341

1,727

11

1,969

4,247

5,066

8,214

9,553

86,761

1,523

25,320136,437

Provisions for credit impairment

-

-

-

(1,264)--(1,264)

Fair value hedge adjustment

-

-

-

153

-

-

153

Unearned finance income
and deferred/capitalised fees

-

-

-

(281)

-

-

(281)

5,066

8,214

9,553

85,3691,523

25,320135,045

3,603

6,348

2,407

84,0101,178

25,320122,866

Overseas

1,463

1,866

7,146

1,359

345

-

12,179

Total

5,066

8,214

9,553

85,3691,523

25,320135,045

Total
Geography
New Zealand

1
2

Government and local authority includes exposures to government administration and defence, education and health and community services.
Other includes exposures to electricity, gas and water, communications and personal services.

ANZ National Bank Limited

Notes to the Financial Statements
Interest rate sensitivity gap
The following table shows the interest rate sensitivity of the Banking Group’s assets, liabilities and off balance sheet instruments
by disclosing the repricing periods for these instruments (that is, when interest rates applicable to each asset or liability canbe changed).
Unaudited 31/03/2011$ millions

Total

Less than
3 months

3 to 6months6 to 12months1 to 2
years

Over 2years

Notbearing
interest

AssetsLiquid assets

1,799

1,613

-

-

-

-

186

Due from other financial institutions

3,267

3,096

4

-

-

-

167

Trading securities

7,373

701

23

1,146

656

4,847

-

Derivative financial instruments

9,553

-

-

-

-

-

9,553

Available-for-sale assets

841

570

133

56

3

2

77

Net loans and advances

85,36960,275

4,882

7,418

7,869

4,124

801

Other financial assets

1,523

15

4

-

1

4

1,499

Total financial assets

109,725

66,270

5,046

8,620

8,529

8,977

12,283

Non-financial assets
Total assets

4,588

-

-

-

-

-

4,588

114,313

66,270

5,046

8,620

8,529

8,977

16,871

Liabilities
Due to other financial institutions

1,651

1,534

-

-

-

-

117

Deposits and other borrowings

68,34943,957

10,327

6,461

1,019

1,130

5,455

Derivative financial instruments

9,795

-

-

-

-

-

9,795

Payables and other financial liabilities

1,906

27

-

-

-

297

1,582

Bonds and notes

18,948

8,049

445

-

3,767

6,687

-

Due to Immediate Parent Company
Loan capital
Total financial liabilities

11

11

-

-

-

-

2,427

-

992

250

350

835

-

103,087

53,578

11,764

6,711

5,136

8,949

16,949

734

-

-

-

-

-

734

Equity10,492

-

-

-

-

-

10,492

Total liabilities and equity

Non-financial liabilities

114,31353,578

11,764

6,711

5,136

8,949

28,175On-balance sheet interest sensitivity gap-

12,692(6,718)

1,909

3,393

28

(11,304)

Hedging instruments-(3,753)

5,439(9,115)

3,237

4,192

-

Interest sensitivity gap – net

-

8,939

(1,279)(7,206)

6,630

4,220

(11,304)

Interest sensitivity gap – cumulative

-

8,939

7,660

454

7,084

11,304-

ANZ National Bank Limited
22 – 23

Notes to the Financial Statements
Funding Composition
The Banking Group actively uses balance sheet disciplines to prudently manage its funding mix. The Banking Group employs
funding metrics to ensure that an appropriate proportion of its assets are funded from stable sources, including customer
liabilities, longer-dated wholesale debt (with remaining terms exceeding one year) and equity.
$ millions

31/03/2011
Unaudited

Funding composition
Customer deposits1
New Zealand

55,009Overseas

7,803

Total customer deposits

62,812Wholesale funding
Bonds and notes

18,948

Loan capital

2,427

Certificates of deposit

2,666

Commercial paper

2,861

Due to Immediate Parent Company
Securities sold under agreement to repurchaseDue to other financial institutions

11
10
1,651

Total wholesale funding

28,574

Total funding

91,386

Concentrations of funding by industry
Households

39,866

Agriculture, forestry and fishing

2,874

Manufacturing

2,740Entertainment, leisure and tourism
Finance and insurance
Retail trade
Wholesale trade
Business and property services

817
35,685
766
682
3,980

Transport and storage

607

Construction

706

Government and local authority

1,572

2

Other

1,091

Total funding

91,386

Concentrations of funding by geography3

1
2
3

New Zealand

62,026Australia

1,864

United States

14,036

Europe7,978

Other countries

5,482

Total funding

91,386

Represents term deposits, demand deposits bearing interest, deposits not bearing interest and secured debenture stock.
Other includes exposures to electricity, gas and water, communications and personal services.
Funding of the Banking Group via ANZ National (Int’l) Limited is classified as either from the United States or Europe, as the company conducts overseas
funding activities through its London branch.

Liquidity portfolio management
The Banking Group holds a diversified portfolio of cash and high quality liquid securities to support liquidity risk management.
The size of the Banking Group’s liquidity portfolio is based on the amount required to meet its liquidity policy.

ANZ National Bank Limited

Notes to the Financial Statements
Liquidity Portfolio
31/03/2011
Unaudited$ millions

Balances with central banks

1,285

Securities purchased under agreement to resell

1,991
618

Certificates of deposit

4,151

Government, local body stock and bonds

709

Government treasury bills
Other bonds

3,104

Total liquidity portfolio

11,858Contractual maturity analysis of financial assets and liabilities
The table below presents the Banking Group’s financial assets and liabilities within relevant contractual maturity groupings,
based on the earliest date on which the Banking Group may be required to realise an asset or settle a liability. The amounts
disclosed in the tables represent undiscounted future principal and interest cash flows and may differ to the amounts reported
on the balance sheet.
Derivatives (other than those designated in a hedging relationship) and trading portfolio assets and liabilities are included attheir fair value, since they will frequently be settled before contractual maturity at fair value.
The contractual maturity analysis for off-balance sheet commitments and contingent liabilities has been prepared using theearliest date at which the Banking Group can be called upon to pay. The liquidity risk of credit related commitments andcontingent liabilities may be less than the contract amount, and does not necessarily represent future cash requirements as
many of these facilities are expected to be only partially used or to expire unused.
The Banking Group does not manage its liquidity risk on the basis of the information below.
Total

On
demandLess than
3 months

3 to 12months1 to 5years

Liquid assets

1,809

1,809

-

-

-

Unaudited 31/03/2011$ millions

Beyond No maturity
5 years
specifiedFinancial assets--

Due from other financial institutions

3,269

184

3,081

4

-

-

-

Trading securities

8,576

-

732

1,446

6,186

212

-

Derivative financial assets (trading)

7,958

-

7,958

-

-

-

-

Available-for-sale assets

847

-

607

123

9

31

77

Net loans and advances

115,442-

10,41118,016

31,91954,296800

Other financial assets

1,523

-

1,506

-

12

5

-

Total financial assets

139,424

1,993

24,295

19,58938,12654,544877-

Financial liabilities
Due to other financial institutions

1,652

557

1,093

2

-

-

Deposits and other borrowings

70,042

18,89729,367

19,267

2,471

40

-

Derivative financial liabilities (trading)

8,321

-

8,321

-

-

-

-

Other financial liabilities

1,964

-

1,608

11

287

58

-

Bonds and notes

20,446

-

448

3,375

16,401

222

-

11

-

11

-

-

-

-

3,790

-

48

143

951

1,452

1,196

Total financial liabilities

106,226

19,45440,896

22,798

20,110

1,772

1,196

Net financial assets

33,198(17,461)(16,601)(3,209)18,016

52,772(319)– gross inflows

21,640

-

2,808

5,315

13,45661-– gross outflows(20,934)-(2,711)(5,246)(12,916)(61)-

Net financial assets after balance
sheet management

33,904(17,461)(16,504)(3,140)18,556

52,772(319)

Due to Immediate Parent Company
Loan capital

Derivative financial instruments
used for balance sheet management

ANZ National Bank Limited
24 – 25

Notes to the Financial Statements
Contractual maturity of off-balance sheet commitments and contingent liabilities$ millions

Total

Less than
1 yearBeyond1 year

302

91

211

31/03/2011
Non-credit related commitments
Credit related commitments

22,34722,347-

Contingent liabilities

2,973

2,973

-

Total

25,622

25,411

211

13. Concentrations of Credit Risk to Individual Counterparties
The Banking Group measures its concentration of credit risk in respect to bank counterparties on the basis of approved
exposures, and in respect to non bank counterparties on the basis of limits. No account is taken of collateral, security and/or
netting agreements which the Banking Group may hold in respect of the various counterparty exposures.
The number of individual counterparties (excluding connected parties, governments and banks with long term credit ratingsof A- or above) where the Banking Group’s period end or peak end-of-day credit exposure equals or exceeds 10% of equity(as at the end of the period) are:
31/03/2011
Unaudited
As atPeak forthe quarter

1

1

Number of counterparties
Concentrations of credit risk to non bank counterparties
10% to 15% of equity

The counterparty included in the preceding table has an investment credit rating (being of BBB or above) for its long term
senior unsecured obligations payable in New Zealand, in New Zealand dollars.

14. Notes to the Condensed Cash Flow Statement
Unaudited
6 months to
31/03/2011

Unaudited
6 months to
31/03/2010

Profit after income tax

491

367

827

Non-cash items

153

373

558

(1,286)(1,605)(2,187)

20

56

56

(622)

(809)

(746)

Unaudited
31/03/2011

Unaudited
31/03/2010

Audited30/09/2010

Liquid assets

1,799

2,519

2,238

Due from other financial institutions – less than 90 days

2,755

680

1,339

Total cash and cash equivalents

4,554

3,199

3,577

$ millions

AuditedYear to30/09/2010

Reconciliation of profit after income tax to net cash flows used in operating activities

Deferrals or accruals of past or future operating cash receipts or payments
Items classified as investing/financing
Net cash flows used in operating activities$ millions

Reconciliation of cash and cash equivalents to the balance sheet

15. Insurance business
The Banking Group conducts insurance business through companies in the OnePath Insurance Holdings (NZ) Limitedgroup. The aggregate amount of insurance business in this group comprises assets totalling $353 million (31/03/2010$333 million; 30/09/2010 $337 million), which is 0.3% (31/03/2010 0.3%; 30/09/2010 0.3%) of the total consolidated assets of
the Banking Group.

ANZ National Bank Limited

Notes to the Financial Statements
16. Credit Related Commitments and Contingent Liabilities
Face or contract value
Unaudited
31/03/2011

Unaudited
31/03/2010

Audited30/09/2010

567

566

493

Commitments to provide financial services

21,78021,30820,289Total credit related commitments

22,347

21,874

20,782$ millions

Credit related commitments
Commitments with certain drawdown due within one year

Contingent liabilities
1,888

1,716

1,686

Standby letters of credit

68

62

60

Transaction related contingent items

957

977

898

Trade related contingent liabilities

60

84

97

2,973

2,839

2,741

Financial guarantees

Total contingent liabilities

The Banking Group guarantees the performance of customers by issuing standby letters of credit and guarantees to third
parties, including its Ultimate Parent Bank. To reflect the risk associated with these transactions, they are subjected to the same
credit origination, portfolio management and collateral requirements for customers that apply for loans. The contract amountrepresents the maximum potential amount that could be lost if the counterparty fails to meet its financial obligations. As thefacilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements.
Other contingent liabilities
The Banking Group has other contingent liabilities in respect of actual and possible claims and court proceedings. An
assessment of the Banking Group’s likely loss in respect of these matters has been made on a case-by-case basis and provision
made where deemed necessary.

ANZ National Bank Limited

Conditions of Registration, applicable as at 19 May 2011.
Effective 31 March 2011, the RBNZ issued revised conditions of registration for the Bank. The changes from the previous
conditions of registration are as follows:• Condition 1 has been amended to change the supervisory adjustments applied to the calculation of the Bank’s capital ratios.
• Conditions 6, 7, 8 and 9 replace previous governance related conditions following the introduction of the RBNZ’s supervisory
document “Corporate Governance” (BS14).
• Conditions 13 and 14 have been amended to remove transitionary wording used since the implementation of the RBNZ’s
supervisory document “Liquidity Policy” (BS13).
• Condition 15 has been added following consultation by the RBNZ around the introduction of a regulatory framework forcovered bonds.
The registration of ANZ National Bank Limited (“the Bank”) as a registered bank is subject to the following conditions:1.

That the Banking Group complies with the following requirements:(a) the total capital ratio of the Banking Group calculated in accordance with the Reserve Bank of New Zealand document“Capital adequacy framework (internal models based approach)” (BS2B) dated October 2010 is not less than 8%;(b) the tier one capital ratio of the Banking Group calculated in accordance with the Reserve Bank of New Zealanddocument “Capital adequacy framework (internal models based approach)” (BS2B) dated October 2010 is not less than4%; and(c) the capital of the Banking Group calculated in accordance with the Reserve Bank of New Zealand document “Capital
adequacy framework (internal models based approach)” (BS2B) dated October 2010 is not less than $30 million.
For the purposes of this condition of registration the scalar referred to in the Reserve Bank of New Zealand document“Capital adequacy framework (internal models based approach)” (BS2B) dated October 2010 is 1.06.
For the purposes of this condition of registration, the supervisory adjustment referred to in the Reserve Bank of
New Zealand document “Capital adequacy framework (internal models based approach)” (BS2B) dated October 2010 isdefined as follows:
Supervisory adjustment = (30% x RM Exposure) – (RMRWA x 1.06)
where,—••RM Exposure = non defaulted exposures secured by residential mortgages as defined in the Reserve Bank of
New Zealand document “Capital adequacy framework (internal models based approach)” (BS2B) dated October 2010.
RMRWA = risk weighted exposure for non defaulted exposures secured by residential mortgages as defined in the
Reserve Bank of New Zealand document “Capital adequacy framework (internal models based approach)” (BS2B) dated
October 2010, calculated using the bank’s long-run capital model with the weighted average probability of default for
non-defaulted exposures calibrated to 1.25%.

1A. That(a) the Bank has an internal capital adequacy assessment process (“ICAAP”); that with effect from 31 August 2008 theBank’s ICAAP accords with the requirements set out in the document “Guidelines on a Bank’s internal capital adequacy
process (“ICAAP”)” (BS12) dated December 2007;(b) under its ICAAP the Bank identifies and measures its “other material risks” defined as all material risks of the Banking
Group that are not explicitly captured in the calculation of tier one and total capital ratios under the requirements set
out in the document “Capital adequacy framework (internal models based approach)” (BS2B) dated October 2010; and(c) the Bank determines an internal capital allocation for each identified and measured “other material risk”.
1B. That the Banking Group complies with all requirements set out in the Reserve Bank of New Zealand document “Capital
adequacy framework (internal models based approach)” (BS2B) dated October 2010.
1C. That the Bank complies with the following requirements:(a) The total capital ratio of the Bank is not less than 8%; and(b) The tier one capital ratio of the Bank is not less than 4%.
For the purposes of this condition of registration:••

the total capital ratio is defined as capital as a percentage of risk-weighted exposures where capital and risk-weighted
exposures are as defined in the Reserve Bank of New Zealand document “Capital adequacy framework (Basel I
approach)” (BS2) dated October 2010; andthe tier one capital ratio is defined as tier one capital as a percentage of risk-weighted exposures where tier one capitaland risk-weighted exposures are as defined in the Reserve Bank of New Zealand document “Capital adequacy framework(Basel I approach)” (BS2) dated October 2010.

26 – 27

Conditions of Registration

ANZ National Bank Limited

Conditions of Registration
2.

That the Banking Group does not conduct any non-financial activities that in aggregate are material relative to its total
activities, where the term material is based on generally accepted accounting practice, as defined in the Financial ReportingAct 1993.

3.

That the Banking Group’s insurance business is not greater than 1% of its total consolidated assets. For the purposesof this condition:(a) Insurance business means any business of the nature referred to in section 4 of the Insurance Companies (Ratings andInspections) Act 1994 (including those to which the Act is disapplied by sections 4(1)(a) and (b) and 9 of that Act), or any
business of the nature referred to in section 3(1) of the Life Insurance Act 1908;(b) In measuring the size of the Banking Group’s insurance business:(i) where insurance business is conducted by any entity whose business predominantly consists of insurance business,the size of that insurance business shall be:(A) The total consolidated assets of the group headed by that entity;(B) if the entity is a subsidiary of another entity whose business predominantly consists of insurance business,
the total consolidated assets of the group headed by the latter entity;(ii) otherwise, the size of each insurance business conducted by any entity within the Banking Group shall equal the
total liabilities relating to that insurance business, plus the equity retained by the entity to meet the solvency or
financial soundness needs of the insurance business;(iii) the amounts measured in relation to subparagraphs (i) and (ii) shall be summed and compared to the total
consolidated assets of the Banking Group. All amounts in subparagraphs (i) and (ii) shall relate to on balance sheet
items only, and shall be determined in accordance with generally accepted accounting practice, as defined in the
Financial Reporting Act 1993;(iv) where products or assets of which an insurance business is comprised also contain a non-insurance component,
the whole of such products or assets shall be considered part of the insurance business.

4.

That the aggregate credit exposures (of a non-capital nature and net of any allowances for impairment) of the Banking
Group to all connected persons do not exceed the rating-contingent limit outlined in the following matrix:

1

Credit Rating of theregistered bank1

Connected exposure limit(% of the Banking Group’s
Tier 1 capital)

AA / Aa2 and above

75

AA- / Aa3

70

A+ / A1

60

A / A240

A- / A330

BBB+ / Baa1 and below

15

This table uses the rating scales of Standard & Poor’s, Fitch Ratings and Moody’s Investors Service. (Fitch Ratings’ scale is identical to Standard & Poor’s).

Within the rating-contingent limit, credit exposures (of a non-capital nature and net of any allowances for impairment)
to non-bank connected persons shall not exceed 15 percent of the Banking Group’s Tier One capital.
For the purposes of this condition of registration, compliance with the rating-contingent connected exposure limit
is determined in accordance with the Reserve Bank of New Zealand document entitled “Connected Exposures Policy”(BS8) dated October 2010.
5.

That exposures to connected persons are not on more favourable terms (e.g. as relates to such matters as credit
assessment, tenor, interest rates, amortisation schedules and requirement for collateral) than corresponding exposures tonon-connected persons.

5A. Before and on 31 March 2012, that the bank complies with the following corporate governance requirements:(a) the board of the Bank must contain at least two independent directors and alternates for those directors, if any, must also
be independent. In this context an independent director (or alternate) is a director (or alternate) who is not an employeeof the Bank, and who is not a director, trustee or employee of any holding company (as that term is defined in section 5 of
the Companies Act 1993) of the Bank or any other entity capable of controlling or significantly influencing the Bank;(b) the chairperson of the Bank’s board must not be an employee of the bank; and(c) the Bank’s constitution must not include any provision permitting a director, when exercising powers or performing
duties as a director, to act other than in what he or she believes is the best interests of the company (i.e. the Bank).

ANZ National Bank Limited

6.

On and after 1 April 2012, that the Bank complies with the following corporate governance requirements:(a) the board of the Bank must have at least five directors;(b) the majority of the board members must be non-executive directors;(c) at least half of the board members must be independent directors;(d) an alternate director,—(i) for a non-executive director must be non-executive; and(ii) for an independent director must be independent;(e) at least half of the independent directors of the Bank must be ordinarily resident in New Zealand;(f ) the chairperson of the board of the Bank must be independent; and(g) the Bank’s constitution must not include any provision permitting a director, when exercising powers or performing
duties as a director, to act other than in what he or she believes is the best interests of the company (i.e. the Bank).
For the purposes of this condition of registration, “non-executive” and “independent” have the same meaning as in the
Reserve Bank of New Zealand document entitled “Corporate Governance” (BS14) dated March 2011.

7.

That no appointment of any director, chief executive officer, or executive who reports or is accountable directly to thechief executive officer, is made in respect of the Bank unless:(a) the Reserve Bank has been supplied with a copy of the curriculum vitae of the proposed appointee; and(b) the Reserve Bank has advised that it has no objection to that appointment.

8. On and after 1 April 2012, that a person must not be appointed as chairperson of the board of the Bank unless:(a) the Reserve Bank has been supplied with a copy of the curriculum vitae of the proposed appointee; and(b) the Reserve Bank has advised that it has no objection to that appointment.
9.

On and after 1 April 2012, that the Bank has a board audit committee, or other separate board committee covering audit
matters, that meets the following requirements:(a) the mandate of the committee must include: ensuring the integrity of the Bank’s financial controls, reporting systems
and internal audit standards;(b) the committee must have at least three members;(c) every member of the committee must be a non-executive director of the Bank;(d) the majority of the members of the committee must be independent; and(e) the chairperson of the committee must be independent and must not be the chairperson of the Bank.
For the purposes of this condition of registration, “non-executive” and “independent” have the same meaning as in the
Reserve Bank of New Zealand document entitled “Corporate Governance” (BS14) dated March 2011.

10. That a substantial proportion of the Bank’s business is conducted in and from New Zealand.
11. That the Bank has legal and practical ability to control and execute any business, and any functions relating to any business,of the Bank that are carried on by a person other than the Bank, sufficient to achieve, under normal business conditions
and in the event of stress or failure of the Bank or of a service provider to the Bank, the following outcomes:(a) that the Bank’s clearing and settlement obligations due on a day can be met on that day;(b) that the Bank’s financial risk positions on a day can be identified on that day;(c) that the Bank’s financial risk positions can be monitored and managed on the day following any failure and on
subsequent days; and(d) that the Bank’s existing customers can be given access to payments facilities on the day following any failure and on
subsequent days.
For the purposes of this condition of registration, the term "legal and practical ability to control and execute” is explainedin the Reserve Bank of New Zealand document entitled “Outsourcing Policy” (BS11) dated January 2006.
12. (a) That the business and affairs of the Bank are managed by, or under the direction and supervision of, the board of
the Bank.
(b) That the employment contract of the chief executive officer of the Bank or person in an equivalent position (together“CEO”) is with the Bank, and the terms and conditions of the CEO’s employment agreement are determined by, andany decision relating to the employment or termination of employment of the CEO are made by, the board of the Bank.
(c) That all staff employed by the Bank shall have their remuneration determined by (or under the delegated authority of)
the board or the CEO of the Bank and be accountable (directly or indirectly) to the CEO of the Bank.

28 – 29

Conditions of Registration

ANZ National Bank Limited

Conditions of Registration
13. That the Banking Group complies with the following quantitative requirements for liquidity-risk management:(a) the one-week mismatch ratio of the Banking Group is not less than zero per cent at the end of each business day;(b) the one-month mismatch ratio of the Banking Group is not less than zero per cent at the end of each business day; and(c) the one-year core funding ratio of the Banking Group is not less than 65 per cent at the end of each business day.
For the purposes of this condition of registration, the ratios identified must be calculated in accordance with the Reserve
Bank of New Zealand documents entitled “Liquidity Policy” (BS13) dated March 2011 and “Liquidity Policy Annex: Liquid
Assets” (BS13A) dated March 2010.
14. That the Bank has an internal framework for liquidity risk management that is adequate in the Bank’s view for managing
the Bank’s liquidity risk at a prudent level, and that, in particular:(a) is clearly documented and communicated to all those in the organisation with responsibility for managing liquidity
and liquidity risk;(b) identifies responsibility for approval, oversight and implementation of the framework and policies for liquidity
risk management;(c) identifies the principal methods that the Bank will use for measuring, monitoring and controlling liquidity risk; and(d) considers the material sources of stress that the Bank might face, and prepares the Bank to manage stress througha contingency funding plan.
15. That no more than 10% of total assets may be beneficially owned by a SPV. For the purposes of this condition,—“total assets” means all assets of the Banking Group plus any assets held by any SPV that are not included in the Banking
Group’s assets:“SPV” means a person—(a) to whom any member of the Banking Group has sold, assigned, or otherwise transferred any asset;(b) who has granted, or may grant, a security interest in its assets for the benefit of any holder of any covered bond; and(c) who carries on no other business except for that necessary or incidental to guarantee the obligations of any memberof the Banking Group under a covered bond:“covered bond” means a debt security issued by any member of the Banking Group, for which repayment to holders
is guaranteed by a SPV, and investors retain an unsecured claim on the issuer.
For the purposes of these conditions of registration, the term “Banking Group” means ANZ National Bank Limited’s financial
reporting group (as defined in section 2(1) of the Financial Reporting Act 1993).

ANZ National Bank Limited

As at the date on which this Disclosure Statement is signed, after due enquiry, each Director believes that:(i) The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements(New Zealand Incorporated Registered Banks) Order 2011;(ii) The Disclosure Statement is not false or misleading.
Over the six months ended 31 March 2011, after due enquiry, each Director believes that:(i) ANZ National Bank Limited has complied with all Conditions of Registration that applied during that period;(ii) Credit exposures to connected persons were not contrary to the interests of the Banking Group;(iii) ANZ National Bank Limited had systems in place to monitor and control adequately the Banking Group’s material risks,
including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk, operationalrisk and other business risks, and that those systems were being properly applied.
This Disclosure Statement is dated, and has been signed by or on behalf of all Directors of the Bank, on 19 May 2011.
On that date, the Directors of the Bank were:S C Elliott

N M T Geary, CBE

D D Hisco

J F Judge

P R Marriott

M R P Smith, OBE

Sir Dryden Spring

30 – 31

Directors’ Statement

ANZ National Bank Limited

32

Independent Auditors’ Review Report
To the Shareholder of ANZ National Bank Limited
We have reviewed pages 2 to 26 of the half year financial statements of ANZ National Bank Limited (the ‘Bank’) and its subsidiarycompanies (the ‘Banking Group’) prepared and disclosed in accordance with the Registered Bank Disclosure Statements (New
Zealand Incorporated Registered Banks) Order 2011 (the ‘Order’) and the supplementary information prescribed in Schedules
5, 7, 11, 13, 16 and 18 of the Order. The half year financial statements, and supplementary information, provides information
about the past financial performance and cash flows of the Banking Group and its financial position as at 31 March 2011.
Directors’ responsibilities
The Directors of ANZ National Bank Limited are responsible for the preparation and presentation of the half year DisclosureStatement, which includes interim financial statements prepared in accordance with Clause 25 of the Order which give a true andfair view of the financial position of the Banking Group as at 31 March 2011 and its financial performance and cash flows for the six
months ended on that date. The directors are also responsible for such internal controls as they determine are necessary to enable
the preparation of the Disclosure Statement that is free from material misstatement whether due to fraud or error.
They are also responsible for the preparation of supplementary information in the half year Disclosure Statement which fairly
states the matters to which it relates in accordance with Schedules 3, 5, 7, 11, 13, 16 and 18 of the Order.
Reviewers’ responsibilities
We are responsible for reviewing the interim financial statements and the supplementary information, disclosed in accordancewith Clause 25, Schedules 5, 7, 13, 16 and 18 of the Order and presented to us by the Directors.
We are responsible for reviewing the interim financial statements (excluding the supplementary information) in order to report
to you whether, in our opinion on the basis of the procedures described below, anything has come to our attention that would
cause us to believe that the interim financial statements have not been prepared, in all material respects, in accordance withNew Zealand Equivalent to International Accounting Standard 34 (“NZ IAS 34”): Interim Financial Reporting and do not present
a true and fair view of the financial position of the Banking Group as at 31 March 2011 and its financial performance and cash
flows for the six months ended on that date.
We are responsible for reviewing the supplementary information (excluding the supplementary information relating to capital
adequacy) in order to report to you whether, in our opinion on the basis of the procedures described below, anything hascome to our attention that would cause us to believe that the supplementary information does not fairly state the matters towhich it relates in accordance with Schedules 5, 7, 13, 16 and 18 of the Order.
We are responsible for reviewing the supplementary information relating to capital adequacy in order to state whether, on thebasis of the procedures described below, anything has come to our attention that would indicate that the information disclosed
in accordance with Schedule 11 is not in all material respects prepared in accordance with the Bank’s Conditions of Registration
and with the Bank’s internal models for credit risk and operational risk as accredited by the Reserve Bank of New Zealand anddisclosed in accordance with Schedule 11.
We have performed our review in accordance with the review engagement standard RS-1 Statement of Review Engagement
Standards issued by the New Zealand Institute of Chartered Accountants. A review is limited primarily to enquiries of Banking
Group personnel and analytical review procedures applied to the financial data, and thus provides less assurance than an
audit. We have not performed an audit and, accordingly, we do not express an audit opinion.
Our firm has also provided other services to the Banking Group in relation to other audit related services. Partners andemployees of our firm may also deal with the Banking Group on normal terms within the ordinary course of trading activitiesof the business of the Banking Group. There are, however, certain restrictions on borrowings which the partners and employees
of our firm can have with the Banking Group. These matters have not impaired our independence as auditors of the Banking
Group. The firm has no other relationship with, or interest in, the Banking Group.
Review Opinion
We have examined the interim financial statements including the supplementary information and based on our review, which
is not an audit, nothing has come to our attention that causes us to believe that:a. the interim financial statements (excluding the supplementary information) have not been prepared, in all material respects,
in accordance with NZ IAS 34: Interim Financial Reporting and do not present a true and fair view of the financial position of
the Banking Group as at 31 March 2011 and its financial performance and cash flows for the six months ended on that date;b. the supplementary information prescribed by Schedules 5, 7, 13, 16, and 18 of the Order does not fairly state the matters towhich it relates in accordance with those Schedules; andc. the supplementary information relating to Capital Adequacy as required by Schedule 11 of the Order, is not in all material
respects prepared in accordance with the Bank’s Conditions of Registration, with the Reserve Bank of New Zealanddocument Capital Adequacy Framework (Internal Models Based Approach) (BS2B), and with the Banking Group’s internal
models for credit risk and operational risk as accredited by the Reserve Bank of New Zealand, and disclosed in accordancewith Schedule 11 of the Order.
Our review was completed on 19 May 2011 and our review opinion is expressed as at that date.

Wellington

ANZ National Bank Limited anz10598 05/11

anz.co.nz