ANZ BANK NEW ZEALAND LIMITEDREGISTERED BANK DISCLOSURE STATEMENTFOR THE SIX MONTHS ENDED 31 MARCH 2024

CONTENTS
Glossary of terms

2

DISCLOSURE STATEMENTInterim Financial Statements
Condensed consolidated interim financial statements
Notes to the condensed consolidated interim financial statements
Limited Assurance Report

3
4
8
22

Registered Bank Disclosures
Directors’ Statement

24
44
45

Limited Assurance Reports

GLOSSARY OF TERMS
In this Registered Bank Disclosure Statement (Disclosure Statement) unless the context otherwise requires:
Bank means ANZ Bank New Zealand Limited.
Banking Group, We or Our means the Bank and all its controlled entities.
Immediate Parent Company means ANZ Holdings (New Zealand) Limited.
Ultimate Non-Bank Holding Company, ANZGHL means ANZ Group Holdings Limited.
ANZ Group means the worldwide operations of ANZGHL including its controlled entities.
Ultimate Parent Bank means Australia and New Zealand Banking Group Limited.
Overseas Banking Group means the worldwide operations of the Ultimate Parent Bank including its controlled entities.
New Zealand business means all business, operations, or undertakings conducted in or from New Zealand identified and treated as if itwere conducted by a company formed and registered in New Zealand.
NZ Branch means the New Zealand business of the Ultimate Parent Bank.
ANZBGL New Zealand means the New Zealand business of the Overseas Banking Group.
ANZ New Zealand means the New Zealand business of the ANZ Group.
Registered Office is Ground Floor, ANZ Centre, 23-29 Albert Street, Auckland, New Zealand, which is also the Bank’s address for service.
RBNZ means the Reserve Bank of New Zealand.
APRA means the Australian Prudential Regulation Authority.
the Order means the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014.
Any term or expression which is defined in, or in the manner prescribed by, the Order shall have the meaning given in or prescribed by
the Order.
2

INTERIM FINANCIAL
STATEMENTS
Condensed consolidated interim financial statements
Income statement

4Statement of comprehensive income

4

Balance sheet

5

Cash flow statement

6

Statement of changes in equity

7

Notes to the condensed consolidated interim financial statements
Basis of preparation
1. About our interim financial statements

8

Financial performance
2. Other operating income

9

3. Segment reporting

10

Financial and non-financial assets
4. Net loans and advances

11

5. Allowance for expected credit losses

12

Financial and non-financial liabilities
6. Deposits and other borrowings

16

7. Debt issuances

16

Financial instrument disclosures
8. Credit risk

17

9. Fair value of financial assets and financial liabilities

19

Equity10. Shareholders' equity

20

Other disclosures
11. Commitments and contingent liabilities

21

3

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDINTERIM FINANCIAL STATEMENTS
INCOME STATEMENT
2024
NZ$m

2023
NZ$m

5,909
(3,733)

4,672(2,525)

2,176

2,147

225

239

Operating income

2,401

2,386

Operating expenses

(858)

(811)

1,543

1,575

(33)

(121)

1,510

1,454

For the six months ended 31 March

Note

Interest income
Interest expense
Net interest income
Other operating income

2

Profit before credit impairment and income tax
Credit impairment charge
Profit before income tax

5

Income tax expense

(428)

(408)

Profit for the period

1,082

1,046

For the six months ended 31 March

2024
NZ$m

2023
NZ$m

Profit after tax for the period

1,082

1,046

4

-

Unrealised gains / (losses) recognised directly in equity

48

(28)

Realised gains transferred to the income statement

(3)

(12)

Income tax attributable to the above items

(14)

11

Other comprehensive income after tax

35

(29)

1,117

1,017

STATEMENT OF COMPREHENSIVE INCOME

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Items that may be reclassified subsequently to profit or loss
Reserve movements:

Total comprehensive income for the period

The notes appearing on pages 8 to 21 form an integral part of these interim financial statements

4

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDBALANCE SHEET
31 Mar 24
NZ$m

30 Sep 23
NZ$m

12,91813,094

Settlement balances receivable

651

401

Collateral paid

709

801

Trading securities

5,783

5,921

Derivative financial instruments

8,492

8,753

Investment securities

11,60910,958150,886

149,321

444

397

3,096

3,119

346

371

As at

Note

AssetsCash and cash equivalents

Net loans and advances

4

Deferred tax assets
Goodwill and other intangible assets
Premises and equipment

1,232

1,153

196,166

194,289

Settlement balances payable

3,576

2,920

Collateral received

1,003

1,500

145,131

141,630

7,911

8,326

Other assets
Total assets
Liabilities

Deposits and other borrowings

6

Derivative financial instruments
Current tax liabilities

32

76

2,418

1,938

Employee entitlements

115

122

Other provisions

206

209

17,114

19,147

Total liabilities

177,506

175,868

Net assets

18,66018,421

12,713

12,438

Payables and other liabilities

Debt issuances

7

Shareholders' equity
Share capital

10

Reserves

10

(61)

(93)

Retained earnings

10

6,008

6,076

18,66018,421

Total shareholders' equity

The notes appearing on pages 8 to 21 form an integral part of these interim financial statements

5

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDINTERIM FINANCIAL STATEMENTS
CASH FLOW STATEMENT
For the six months ended 31 March

2024
NZ$m

2023
NZ$m

Profit after income tax

1,082

1,046

55

60

Adjustments to reconcile to net cash provided by/(used in) operating activities:
Depreciation and amortisation

1

1

Net derivatives/foreign exchange adjustment

(253)

684

Other non-cash movements

(12)

(139)

92

1,096

Loss on sale and impairment of premises and equipment

Net (increase)/decrease in operating assets:
Collateral paid
Trading securities
Net loans and advances
Other assets

138

1,571

(1,565)

(87)

(353)

338

Net increase/(decrease) in operating liabilities:
Deposits and other borrowings (excluding items included in financing activities)

3,530(1,219)Settlement balances payable656(1,523)Collateral received

(497)

(906)

Other liabilities

439

274

Total adjustments

2,231

150

3,313

1,196

Purchases(1,495)(2,822)

Proceeds from sale or maturity

1,320

3,348

Net cash provided by operating activities

1

Cash flows from investing activities
Investment securities:

Other assets

(19)

(30)

Net cash provided by/(used in) investing activities

(194)

496

(29)

1,000

Issue proceeds

887

500

Redemptions

Cash flows from financing activities
Deposits and other borrowings2
Debt issuances:3(3,250)(2,166)

Proceeds from issue of preference shares

271-

Repayment of lease liabilities

(25)

(23)

Dividends paid

(1,149)(921)

Net cash used in financing activities(3,295)(1,610)Net change in cash and cash equivalents

(176)

82

Cash and cash equivalents at beginning of period

13,094

12,575

Cash and cash equivalents at end of period

12,91812,6571
2
3

Net cash provided by operating activities includes income taxes paid of NZ$533 million (2023: NZ$706 million).
Movement in deposits and other borrowings include repayments of repurchase transactions entered into with the RBNZ under the Term Lending Facility of NZ$29 million (2023: amountdrawn under the Funding for Lending Programme of NZ$1,000 million).
Movement in debt issuances (Note 7 Debt issuances) also includes a NZ$20 million decrease (2023: NZ$896 million decrease) from the effect of foreign exchange rates, a NZ$350 million
increase (2023: NZ$226 million increase) from changes in fair value hedging instruments and nil from other changes (2023: NZ$1 million increase).

The notes appearing on pages 8 to 21 form an integral part of these interim financial statements

6

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDSTATEMENT OF CHANGES IN EQUITY
Reserves
NZ$m

Retainedearnings
NZ$m

Total
shareholders'equityNZ$m12,438
-

48
-

5,298
1,046

17,784
1,046

Other comprehensive income for the period

-

(29)

-

(29)

Total comprehensive income for the period

-

(29)

1,046

1,017

-

-

(900)

(900)

As at 1 October 2022
Profit for the period

SharecapitalNZ$mTransactions with equity holders in their capacity as equity owners:
Ordinary dividend paid

-

-

(21)

(21)

As at 31 March 2023

12,43819

5,423

17,880As at 1 October 2023

Preference dividends paid

12,438

(93)

6,076

18,421

Profit for the period

-

-

1,082

1,082

Other comprehensive income for the period

-

32

3

35

Total comprehensive income for the period

-

32

1,085

1,117

-

-

(1,125)(1,125)

275

-

(4)

271

Transactions with equity holders in their capacity as equity owners:
Ordinary dividends paid
Preference shares issued (net of issue costs)
Preference dividends paid
As at 31 March 2024

-

-

(24)

(24)

12,713

(61)

6,008

18,660The notes appearing on pages 8 to 21 form an integral part of these interim financial statements

7

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
1.

ABOUT OUR INTERIM FINANCIAL STATEMENTS

These financial statements for the Banking Group have been prepared in accordance with the requirements of the Order and should be read in
conjunction with the Banking Group’s financial statements for the year ended 30 September 2023.
On 6 May 2024, the Directors resolved to authorise the issue of these financial statements.

BASIS OF PREPARATION
These financial statements comply with:• New Zealand Generally Accepted Accounting Practice (NZ GAAP), as defined in the Financial Reporting Act 2013;• NZ IAS 34 Interim Financial Reporting and other applicable Financial Reporting Standards, as appropriate for publicly accountable for-profit
entities; and• IAS 34 Interim Financial Reporting.
The financial statements consolidate the financial statements of the Bank and its subsidiaries.
We present the financial statements of the Banking Group in New Zealand dollars and have rounded values to the nearest million dollars (NZ$m),
unless otherwise stated.
The accounting policies adopted by the Banking Group are consistent with those adopted and disclosed in the previous full year financial statements.

BASIS OF MEASUREMENT
We have prepared the financial information in accordance with the historical cost basis - except for the following assets and liabilities which we havestated at their fair values:• derivative financial instruments and in the case of fair value hedging, a fair value adjustment made to the underlying hedged item;• financial instruments held for trading;• financial assets and financial liabilities designated at fair value through profit and loss (FVTPL); and• financial assets at fair value through other comprehensive income (FVOCI).

KEY JUDGEMENTS AND ESTIMATES
In the process of applying the Banking Group’s accounting policies, management has made a number of judgements and applied estimatesand assumptions about past and future events. Discussion of the critical accounting estimates and judgements, which include complex or
subjective decisions or assessments, are provided in the previous full year financial statements. Such estimates and judgements are reviewed
on an ongoing basis.
The global economy continues to face challenges associated with inflation and interest rate uncertainties, labour market constraints,
continuing geopolitical tensions, and impacts from climate change, which contributes to an elevated level of estimation uncertainty involvedin the preparation of these financial statements.
The Banking Group has made various accounting estimates in these financial statements based on forecasts of economic conditions whichreflect expectations and assumptions at 31 March 2024 about future events considered reasonable in the circumstances. Thus there is aconsiderable degree of judgement involved in preparing these estimates. Actual economic conditions are likely to be different from those
forecast since anticipated events frequently do not occur as expected, and the effect of these differences may significantly impact
accounting estimates included in these financial statements. The significant accounting estimates impacted by these forecasts andassociated uncertainties are predominantly related to expected credit losses and recoverable amounts of non-financial assets.
The impact of these uncertainties on each of these accounting estimates is discussed further in the relevant notes of these financial
statements and/or in the relevant notes in the previous full year financial statements. Readers should consider these disclosures in light of theinherent uncertainties described above.

8

ANZ BANK NEW ZEALAND LIMITED2.

UNAUDITEDOTHER OPERATING INCOME

For the six months ended 31 March(i) Fee and commission income
Lending fees
Non-lending fees
Commissions
Funds management income
Fee and commission income
Fee and commission expense
Net fee and commission income(ii) Other income
Net trading gains
Gain on sale of investment securities designated at FVOCIFair value gain / (loss) on hedging activities and financial liabilities designated at fair value
Net foreign exchange earnings and other financial instruments income
Adjustment to gain on sale of UDC Finance Ltd
Other
Other income
Other operating income

2024
NZ$m

2023
NZ$m

10
370
14
122
516
(261)
255

13
375
15
120
523
(273)
250

122
1
(160)
(37)
2
5
(30)
225

109
13
(136)
(14)
3
(11)
239

9

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
3.

SEGMENT REPORTING

The Banking Group is organised into three major business segments for segment reporting purposes - Personal, Business & Agri and Institutional.
Centralised back office and corporate functions support these segments. These segments are consistent with internal reporting provided to the chief
operating decision maker, being the Bank’s Chief Executive Officer.
Segment reporting has been updated to reflect minor changes to the Banking Group’s structure. Comparative amounts have been adjusted to beconsistent with the current period’s segment definitions.
Personal
Personal provides a full range of banking and wealth management services to consumer and private banking customers. We deliver our services via
our internet and app-based digital solutions and network of branches, mortgage specialists, relationship managers and contact centres.
Business & AgriBusiness & Agri provides a full range of banking services through our digital, branch and contact centres channels, and traditional relationship banking
and sophisticated financial solutions through dedicated managers. These cover privately owned small, medium and large enterprises, the agriculturalbusiness segment, government and government related entities.
Institutional
The Institutional division services governments, global institutional and corporate customers via the following business units:• Transaction Banking provides customers with working capital and liquidity solutions including documentary trade, supply chain financing,commodity financing as well as cash management solutions, deposits, payments and clearing.
• Corporate Finance provides customers with loan products, loan syndication, specialised loan structuring and execution, project and export
finance, debt structuring and acquisition finance and corporate advisory services.
• Markets provide customers with risk management services on foreign exchange, interest rates, credit, commodities and debt capital markets inaddition to managing the Banking Group’s interest rate exposure and high quality liquid asset portfolio.
Other
Other includes treasury and back office support functions, none of which constitutes a separately reportable segment.
Business & Agri

Institutional

For the six months
ended 31 March2024

Personal
2023

2024

2023

2024

2023

2024

Other
2023

2024

Total
2023

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

Net interest income

1,169

1,216

515

498

375

346

117

87

2,176

2,147

Net fee and commission income- Lending fees
- Non-lending fees

4

3

-

-

6

10

-

-

10

13

228

220

118

132

26

23

(2)

-

370

375

- Commissions

13

15

-

-

-

-

1

-

14

15

- Funds management income

122

120

-

-

-

-

-

-

122

120

- Fee and commission expense

(168)

(167)

(93)

(106)

-

-

-

-

(261)

(273)

Net fee and commission income

199

191

25

26

32

33

(1)

-

255

250

-

1

-

-

130

147

(160)

(159)

(30)

(11)

Other income

199

192

25

26

162

180

(161)

(159)

225

239

Operating income

1,368

1,408

540

524

537

526

(44)

(72)

2,401

2,386

Operating expenses

(590)

(568)

(134)

(118)

(122)

(113)

(12)

(12)

(858)

(811)

Profit before credit impairment
and income tax

778

840

406

406

415

413

(56)

(84)

1,543

1,575

Credit impairment release /(charge)

(22)

(50)

18

(32)

(29)

(39)

-

-

(33)

(121)

Other operating income

Profit / (loss) before income tax
Income tax credit / (expense)

756

790

424

374

386

374

(56)

(84)

1,510

1,454

(212)

(221)

(119)

(105)

(109)

(105)

12

23

(428)

(408)

Profit / (loss) after income tax

544

569

305

269

277

269

(44)

(61)

1,082

1,046

10

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

Personal

Business & Agri

Institutional

Other

Total

31 Mar 24 30 Sep 23 31 Mar 24 30 Sep 23 31 Mar 24 30 Sep 23 31 Mar 24 30 Sep 23 31 Mar 24 30 Sep 23
As at

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

1,042

1,042

695

695

1,269

1,269

-

-

3,006

3,006

Net loans and advances

108,440

106,138

23,887

24,424

18,55918,759--150,886

149,321

Customer deposits

90,49388,086

18,296

18,345

26,57826,098--135,367

132,529

Financial position
Goodwill

Other segment
The Other segment profit/(loss) after tax comprises:
For the six months ended 31 March
Personal and Business & Agri central functions
Group Centre
Economic hedges
Total

2024
NZ$m

2023
NZ$m

2
70
(116)
(44)

2
35
(98)
(61)

31 Mar 24
NZ$m
926
1,268
109,193
39,782
151,169(23)
477
151,623(737)
150,886

30 Sep 23
NZ$m
973
1,262
107,040
40,345
149,620(28)459
150,051(730)
149,321

4. NET LOANS AND ADVANCES
Note
Overdrafts
Credit cards
Term loans - housing
Term loans - non-housing
Subtotal
Unearned income
Capitalised brokerage and other origination costs
Gross loans and advances
Allowance for expected credit losses
Net loans and advances

5

11

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
5.

ALLOWANCE FOR EXPECTED CREDIT LOSSES

This note should be read in conjunction with the estimates, assumptions and judgements included in Note 1 About our interim financial statements.

Net loans and advances at amortised cost
Off-balance sheet commitments
Total

31 Mar 24

30 Sep 23

Collectively Individuallyassessedassessed
NZ$m
NZ$m
690
47
132
1
822
48

Total
NZ$m
737
133
870

Collectively Individuallyassessedassessed
NZ$m
NZ$m
670
60
122
5
792
65

Total
NZ$m
730
127
857

Stage 2
NZ$m
398
(42)
9
365

Stage 3
Collectively Individuallyassessedassessed
NZ$m
NZ$m
79
60
3
4
42
40
(31)
(20)
(6)
124
47

Total
NZ$m
730
64
(31)
(20)
(6)
737

The following tables present the movement in the allowance for expected credit losses (ECL).
Net loans and advances
Allowance for ECL is included in net loans and advances.

As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Bad debts written-off (excluding recoveries)
Discount unwind
As at 31 March 2024

Stage 1
NZ$m
193
35
(27)
201

Off-balance sheet credit related commitments - undrawn and contingent facilities
Allowance for ECL is included in other provisions.
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
As at 31 March 2024

80
4
(12)
72

39
(4)
22
57

3
3

5
(4)
1

127
6
133

CREDIT IMPAIRMENT CHARGE – INCOME STATEMENT
For the six months ended 31 March
New and increased provisions (net of releases)1- Collectively assessed- Individually assessed
Write-backs
Recoveries of amounts previously written-off
Total credit impairment charge
112Includes the impact of transfers between collectively assessed and individually assessed.

2024
NZ$m

2023
NZ$m

30
40
(31)
(6)
33

98
37
(9)
(5)
121

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDKEY JUDGEMENTS AND ESTIMATES
Collectively assessed allowance for expected credit losses
In estimating collectively assessed ECL, the Banking Group makes judgements and assumptions in relation to:• the selection of an estimation technique or modelling methodology; and• the selection of inputs for those models, and the interdependencies between those inputs.
The judgements and associated assumptions have been made within the context of the uncertainty as to how various factors might impact
the global economy, and reflect historical experience and other factors that are considered to be relevant, including expectations of future
events that are believed to be reasonable under the circumstances. The Banking Group’s ECL estimates are inherently uncertain and, as aresult, actual results may differ from these estimates.
The following table summarises the key judgements and assumptions in relation to the model inputs and the interdependencies between
those inputs, and highlights significant changes during the current period.
Judgement /assumption

Description

Considerations for the six months ended
31 March 2024

Determining
when asignificant
increase incredit risk
(SICR) has
occurred orreversedIn the measurement of ECL, judgement is involved indetermining whether there has been a SICR sinceinitial recognition of a loan, which would result in it
moving from Stage 1 to Stage 2. This is a key area ofjudgement since transition from Stage 1 to Stage 2
increases the ECL from an allowance based on theprobability of default in the next 12 months, to anallowance for lifetime ECL. Subsequent decreases incredit risk resulting in transition from Stage 2 to Stage
1 may similarly result in significant changes in the ECL
allowance.
The setting of precise SICR trigger points requires
judgement which may have a material impact upon
the size of the ECL allowance. The Banking Group
monitors the effectiveness of SICR criteria on an
ongoing basis.

The determination of SICR was consistent with priorperiods.

Measuringboth 12-monthand lifetime
ECL

The probability of default (PD), loss given default(LGD) and exposure at default (EAD) factors used indetermining ECL are point-in-time measuresreflecting the relevant forward-looking information
determined by management. Judgement is involved
in determining which forward-looking information isrelevant for particular lending portfolios and for
determining each portfolio’s point-in-time sensitivity.
In addition, judgement is required where behaviouralcharacteristics are applied in estimating the lifetime ofa facility which is used in measuring ECL.

The PD, LGD and EAD models are subject to the
Banking Group’s model risk policy that stipulates
periodic model monitoring and re-validation, anddefines approval procedures and authorities
according to model materiality.
There were no material changes to the policy.
A new PD model was implemented for the agri
portfolio during the period, replacing the prior model,
with impacts largely offset by the release of a model
overlay held in anticipation of model implementation.

Base caseeconomic
forecast

The Banking Group derives a forward-looking ‘basecase’ economic scenario which reflects our view of
future macroeconomic conditions.

There have been no changes to the types of forwardlooking variables (key economic drivers) used asmodel inputs.
As at 31 March 2024, the base case assumptions havebeen updated to reflect a moderation in inflation andrising unemployment. The economy is forecast tocontinue to grow below trend. Despite increased
household disposable incomes, limited flow-throughto household consumption is forecast.
The expected outcomes of key economic drivers forthe base case scenario at 31 March 2024 are described
below under the heading ‘Base case economic
forecast assumptions’.

13

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
KEY JUDGEMENTS AND ESTIMATES
Judgement /assumption

1

Description

Considerations for the six months ended
31 March 2024

Probability
weighting ofeach economic
scenario (basecase, upside,
downside andseveredownsidescenarios)1

Probability weighting of each economic scenario is
determined by management considering the risks
and uncertainties surrounding the base caseeconomic scenario at each measurement date.
The assigned probability weightings are subject to ahigh degree of inherent uncertainty and therefore theactual outcomes may be significantly different tothose projected.

Probability weightings in the current period remainunchanged from the prior period, reflecting ourassessment of the continuing downside risks from theimpact of high interest rates and inflation.
Weightings for current and prior periods are as
detailed in the section below under the heading on‘Probability weightings’.

Management
temporaryadjustments

Management temporary adjustments to the ECL
allowance are used in circumstances where it isjudged that our existing inputs, assumptions andmodel techniques do not capture all the risk factors
relevant to our lending portfolios. Emerging local or
global macroeconomic, microeconomic or politicalevents, natural disasters, and natural hazards that are
not incorporated into our current parameters, risk
ratings, or forward-looking information are examples
of such circumstances.

Management have continued to apply adjustments toaccommodate uncertainty associated with higher
inflation and interest rates. Management overlays
have been made for risks particular to mortgages andcommercial lending.
Management temporary adjustments total NZ$71
million (September 2023: NZ$176 million).
Management has considered and concluded no
temporary adjustment is required at 31 March 2024 to
the ECL in relation to climate- or weather-related
events during the period.

The upside and downside scenarios are fixed by reference to average economic cycle conditions instead of economic conditions prevailing at balance date, and are based on a combination of
more optimistic (in the case of the upside) and pessimistic (in the case of the downside) economic conditions.

Base case economic forecast assumptions
The economic drivers of the base case economic forecasts, reflective of our view of future macroeconomic conditions, used at 31 March 2024
are set out below. For years beyond the near-term forecasts below, the ECL models apply simplified assumptions for the economic conditions
to calculate lifetime loss. There is a high level of estimation uncertainties when forming these forecasts.
New Zealand
GDP (annual % change)
Unemployment rate (annual average)
Residential property prices (annual % change)
Consumer price index (CPI) (annual % change)

Actual calendar year
2023
0.8%
3.7%
-0.7%
5.7%

Forecast calendar year
2024
2025
0.9%
4.5%
3.0%
3.1%

1.3%
5.3%
5.0%
2.2%

The base case economic forecasts are for a continuing slowdown in economic activity. Continued high inflation is expected to keep interest
rates high for longer and dampen growth over the forecast period.

14

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDKEY JUDGEMENTS AND ESTIMATES
Probability weightings
Probability weightings for each scenario are determined by management considering the risks and uncertainties surrounding the base caseeconomic scenario including the uncertainties described above.
Scenario weightings remain the same as those applied in September 2023 as noted in the table below.
The assigned probability weightings are subject to a high degree of inherent uncertainty and therefore the actual outcomes may besignificantly different to those projected. The Banking Group considers these weightings to provide estimates of the possible loss outcomes
and taking into account short and long term inter-relationships within the Banking Group’s credit portfolios. The weightings applied are set
out below:

Base
UpsideDownside
Severe downside

31 Mar 24

30 Sep 23

50.0%
0.0%
37.5%
12.5%

50.0%
0.0%
37.5%
12.5%

ECL - Sensitivity analysis
Given inherent economic uncertainties and the judgement applied to factors used in determining the expected default of borrowers in future
periods, ECL reported by the Banking Group should be considered as a best estimate within a range of possible estimates.
The table below illustrates the sensitivity of the Banking Group’s allowance for collectively assessed ECL to key factors used in determining it at
31 March 2024:
ECL
NZ$m

Impact on ECL
NZ$m

If 1% of Stage 1 facilities were included in Stage 2
If 1% of Stage 2 facilities were included in Stage 1

832
821

10
(1)

100% upside scenario
100% base scenario
100% downside scenario
100% severe downside scenario

243
405
743
2,161

(579)
(417)
(79)
1,339

Individually assessed allowance for expected credit losses
In estimating individually assessed ECL, the Banking Group makes judgements and assumptions in relation to expected repayments, therealisable value of collateral, business prospects for the customer, competing claims and the likely cost and duration of the work-out process.
Judgements and assumptions in respect of these matters have been updated to reflect amongst other things, the uncertainties describedabove and in Note 1 About our interim financial statements.

15

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
6. DEPOSITS AND OTHER BORROWINGS
Term deposits
On demand and short term deposits
Deposits not bearing interest
Total customer deposits
Certificates of deposit
Commercial paper
Securities sold under repurchase agreements
Deposits from Immediate Parent Company and NZ Branch
Deposits and other borrowings

7.

31 Mar 24
NZ$m
57,52760,586
17,254
135,367
1,962
3,437
4,266
99
145,131

30 Sep 23
NZ$m
54,19860,673
17,658132,529
2,328
2,253
4,429
91
141,630

DEBT ISSUANCESThe Banking Group uses a variety of funding programmes to issue unsubordinated debt (including senior debt and covered bonds) and subordinateddebt. The difference between unsubordinated debt and subordinated debt is that holders of unsubordinated debt take priority over holders ofsubordinated debt owed by the relevant issuer and subordinated debt will be repaid by the relevant issuer only after the repayment of claims ofdepositors, other creditors and the unsubordinated debt holders.
31 Mar 24
30 Sep 23
NZ$m
NZ$m
Senior debt
12,606
13,466
Covered bonds
2,178
3,373
16,839Total unsubordinated debt
14,784
Subordinated debt
- Additional Tier 1 capital
938
938- Tier 2 capital
1,370
1,392
2,308
Total subordinated debt
2,330
Total debt issued
17,114
19,147
Covered bonds are guaranteed by ANZNZ Covered Bond Trust Limited (the Covered Bond Guarantor), solely in its capacity as trustee of ANZNZ
Covered Bond Trust (the Covered Bond Trust). The Covered Bond Trust is a member of the Banking Group, whereas the Covered Bond Guarantor is nota member of the Banking Group.
Substantially all of the assets of the Covered Bond Trust are made up of certain housing loans and related securities originated by the Bank which are
security for the guarantee by the Covered Bond Guarantor as trustee of the Covered Bond Trust of issuances of covered bonds by the Bank, or its
wholly owned subsidiary ANZ New Zealand (Int’l) Limited, from time to time. The assets of the Covered Bond Trust are not available to creditors of theBank, although the Bank (or its liquidator or statutory manager) may have a claim against the residual assets of the Covered Bond Trust (if any) after all
priority ranking creditors of the Covered Bond Trust have been satisfied.

16

ANZ BANK NEW ZEALAND LIMITED8.

UNAUDITEDCREDIT RISKThis note should be read in conjunction with the estimates, assumptions and judgements included in Note 1 About our interim financial statements
and Note 5 Allowance for expected credit losses.
Maximum exposure to credit risk
For financial assets recognised on the balance sheet, the maximum exposure to credit risk is the carrying amount. In certain circumstances there may
be differences between the carrying amounts reported on the balance sheet and the amounts reported in the tables below. Principally, thesedifferences arise in respect of financial assets that are subject to risks other than credit risk, such as equity instruments which are primarily subject tomarket risk, or bank notes and coins.
For undrawn facilities, this maximum exposure to credit risk is the full amount of the committed facilities. For contingent exposures, the maximum
exposure to credit risk is the maximum amount the Banking Group would have to pay if the instrument is called upon.
The table below shows our maximum exposure to credit risk of on-balance sheet and off-balance sheet positions before taking account of any
collateral held or other credit enhancements.
Reported
31 Mar 24
30 Sep 23
NZ$m
NZ$m
On-balance sheet positions
Net loans and advances
Other financial assets:
Cash and cash equivalents
Settlement balances receivable
Collateral paid
Trading securities
Derivative financial instruments
Investment securities
Other financial assets2
Total other financial assets
Subtotal
Off-balance sheet commitments
Undrawn and contingent facilities3
Total
1
2
3

Excluded1
31 Mar 24
30 Sep 23
NZ$m
NZ$m

Maximum exposure tocredit risk
31 Mar 24
30 Sep 23
NZ$m
NZ$m

150,886

149,321--150,886

149,321

12,918
651
709
5,783
8,492
11,6091,018
41,180
192,066

13,094
401
801
5,921
8,753
10,958995
40,923
190,244

197
197
197

155
155
155

12,721
651
709
5,783
8,492
11,6091,018
40,983
191,869

12,939
401
801
5,921
8,753
10,958995
40,768190,089

28,695
220,761

28,797
219,041

197

155

28,695220,564

28,797
218,886

Coins, notes and cash at bank within cash and cash equivalents were excluded as they do not have credit risk exposure.
Other financial assets mainly comprise accrued interest and acceptances.
Undrawn and contingent facilities include guarantees, letters of credit and performance related contingencies, net of collectively assessed and individually assessed allowance for expectedcredit losses.

Credit quality
We use the Banking Group’s internal customer credit rating (CCR) to manage the credit quality of financial assets. To enable wider comparisons, theBanking Group’s CCRs are mapped to external rating agency scales as follows:
Credit quality
description

Internal CCR

The Banking Group customer requirements

Moody’s
RatingS&P Global
Ratings

Strong

CCR 0+ to 4-

Demonstrated superior stability in their operating and financial
performance over the long-term, and whose earnings capacity is
not significantly vulnerable to foreseeable events.

Aaa – Baa3

AAA – BBB-

Satisfactory

CCR 5+ to 6-

Demonstrated sound operational and financial stability over the
medium to long-term even though some may be susceptible tocyclical trends or variability in earnings.

Ba1 – B1

BB+ – B+Weak

CCR 7+ to 8=

Demonstrated some operational and financial instability, withvariability and uncertainty in profitability and liquidity projected tocontinue over the short and possibly medium term.

B2 – Caa

B - CCC

Defaulted

CCR 8- to 10

When doubt arises as to the collectability of a credit facility, thefinancial instrument (or ‘the facility’) is classified as defaulted.

n/a

n/a

17

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS

Stage 1
NZ$m
116,442
20,912599
137,953(201)
137,752
0.15%

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
3,432
4,729
3,408
1,356
291
11,569
1,356
291
(365)
(124)
(47)
11,204
1,232
244
3.15%
9.14%
16.15%

116,859
19,979504
137,342(193)
137,149
0.14%

3,646
5,025
2,430
11,101(398)
10,7033.59%

As at 31 March 2024
StrongSatisfactory
Weak
Defaulted
Gross undrawn and contingent facilities
Allowance for ECL included in other provisions
Net undrawn and contingent facilities
Coverage ratio

Stage 1
NZ$m
24,0013,278
7
27,286(72)
27,214
0.26%

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
270
980
266
18
8
1,516
18
8
(57)
(3)
(1)
1,459
15
7
3.76%
16.67%
12.50%

As at 30 September 2023
StrongSatisfactory
Weak
Defaulted
Gross undrawn and contingent facilities
Allowance for ECL included in other provisions
Net undrawn and contingent facilities
Coverage ratio

24,4083,343
827,759(80)
27,6790.29%

Net loans and advances

As at 31 March 2024
StrongSatisfactory
Weak
Defaulted
Subtotal
Allowance for ECL
Net loans and advances at amortised cost
Coverage ratio
Unearned income
Capitalised brokerage and other origination costs
Net carrying amountAs at 30 September 2023
StrongSatisfactory
Weak
Defaulted
Subtotal
Allowance for ECL
Net loans and advances at amortised cost
Coverage ratio
Unearned income
Capitalised brokerage and other origination costs
Net carrying amountOff-balance sheet commitments - undrawn and contingent facilities

18

202
701
234
1,137
(39)
1,098
3.43%

890
890
(79)
811
8.88%

15
15
(3)
12
20.00%

287
287
(60)
227
20.91%

1313(5)
8
38.46%

Total
NZ$m
119,874
25,641
4,007
1,647
151,169(737)
150,432
0.49%
(23)
477
150,886

120,505
25,004
2,934
1,177
149,620(730)
148,890
0.49%
(28)
459
149,321

Total
NZ$m
24,271
4,258
273
2628,828(133)
28,6950.46%

24,6104,044
242
28
28,924(127)
28,797
0.44%

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

9. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIESFair value hierarchy
The Banking Group categorises assets and liabilities carried at fair value into a fair value hierarchy as required by NZ IFRS 13 Fair Value Measurement
based on the observability of inputs used to measure the fair value:• Level 1 – valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities;• Level 2 – valuations using inputs other than quoted prices included within Level 1 that are observable for a similar asset or liability, either directly
or indirectly; and• Level 3 – valuations where significant unobservable inputs are used to measure the fair value of the asset or liability.
The following table presents assets and liabilities carried at fair value in accordance with the fair value hierarchy:
Quoted market price(Level 1)
31 Mar 24
30 Sep 23
NZ$m
NZ$m
AssetsCash and cash equivalents
Trading securities1
Derivative financial instruments
Investment securities1
Total
Liabilities
Deposits and other borrowings
Derivative financial instruments
Other financial liabilities
Total
1

Fair value measurements
Using observable inputs
Using unobservable(Level 2)
inputs (Level 3)
31 Mar 24
30 Sep 23
31 Mar 24
30 Sep 23
NZ$m
NZ$m
NZ$m
NZ$m

Total
31 Mar 24
NZ$m

30 Sep 23
NZ$m

4,465
4
10,325
14,794

3,989
38
7,796
11,823

448
1,318
8,487
1,283
11,536

668
1,932
8,715
3,161
14,476

1
1
2

1
1

448
5,783
8,492
11,60926,332

668
5,921
8,753
10,95826,300

19
689
708

2
367
369

3,651
7,887
11,538

2,882
8,314
4
11,200

5
5

10
10

3,651
7,911
689
12,251

2,882
8,326
371
11,579During the six months ended 31 March 2024, NZ$134 million of assets were transferred from Level 1 to Level 2 and $2,205 million of assets were transferred from Level 2 to Level 1 for the
Banking Group due to a change of the observability of valuation inputs. There were no other material transfers between Level 1 and Level 2 during the year. Transfers into and out of levels
are measured at the beginning of the reporting period in which the transfer occurred.

Financial assets and financial liabilities not measured at fair value
Below is a comparison of the carrying amounts as reported on the balance sheet and fair values of financial asset and financial liability categories otherthan those categories where the carrying amount is at fair value or considered a reasonable approximation of fair value.
The fair values below have been calculated using discounted cash flow techniques where contractual future cash flows of the instrument are
discounted using discount rates incorporating wholesale market rates or market borrowing rates of debt with similar maturities or a yield curve
appropriate for the remaining term to maturity.
Carrying amount
31 Mar 24
30 Sep 23
NZ$m
NZ$m
Financial assets
Net loans and advances1
Total
Financial liabilities
Deposits and other borrowings2
Debt issuances1
Total
1
2

Fair value
31 Mar 24
30 Sep 23
NZ$m
NZ$m

150,886
150,886

149,321
149,321150,526
150,526

148,262
148,262

141,480
17,114
158,594

138,748
19,147
157,895

141,470
17,289158,759

138,647
19,186
157,833

Fair value hedging is applied to certain financial instruments within these categories. The resulting fair value adjustments mean that the carrying value differs from the amortised cost.
Excludes commercial paper and securities sold under repurchase agreements (Note 6 Deposits and other borrowings) designated at fair value through profit or loss.

19

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
10. SHAREHOLDERS’ EQUITYSHAREHOLDERS’ EQUITY

Share capital
Reserves
FVOCI reserve
Cash flow hedge reserve
Total reserves
Retained earnings
Total shareholders' equity

31 Mar 24
NZ$m
12,71330 Sep 23
NZ$m
12,438

(13)
(48)
(61)
6,008
18,660

(39)
(54)
(93)
6,076
18,421SHARE CAPITAL
The table below details the movement in issued shares and share capital for the period.

Ordinary shares
Preference shares
Preference shares at start of period
Preference shares issued during the period
Preference shares
Total share capital

Number of issued shares
31 Mar 24
30 Sep 23
6,345,755,498
6,345,755,498
850,000,000
275,000,000
1,125,000,000
7,470,755,498

850,000,000
850,000,000
7,195,755,498

NZ$ millions
31 Mar 24
30 Sep 23
11,588
11,588
850
275
1,125
12,713850
850
12,438Preference shares
Perpetual preference shares (PPS) do not carry any voting rights. They are classified as equity instruments as there is no contractual obligation for the
Bank to either deliver cash or another financial instrument or to exchange financial instruments on a potentially unfavourable basis.
In the event of liquidation, holders of PPS are entitled to a maximum amount equal to the issue price of the PPS. Holders of PPS rank behind the claimsof all depositors and other creditors of the Bank (other than creditors that rank equally with the PPS), equally with the rights of other holders of PPS,
additional tier 1 (AT1) capital notes and other equal ranking securities and obligations, and in priority to the rights of holders of ordinary shares.
Holders of PPS are entitled to receive dividends that are discretionary, non-cumulative and subject to conditions. If a PPS dividend is not paid, there arecertain restrictions on the ability of the Bank to pay a dividend on its ordinary shares. Holders of the PPS have no other rights to participate in the
profits or property of the Bank.
Holders of PPS have no right to require that the PPS be redeemed.
The Bank has three classes of PPS: PPS issued in 2022 and 2024 that are quoted on the NZX Debt Market (Quoted PPS), and PPS issued to the
Immediate Parent Company in 2013 (2013 PPS). As at 31 March 2024, PPS qualify as AT1 capital for RBNZ’s capital adequacy purposes.
The key terms of the Quoted PPS are as follows:
Issue dateIssue amountFirst optional redemption date
Final maturity date
Dividend amount2022 PPS
18 July 2022
NZ$550 million
18 July 2028
Perpetual
6.95% per annum until 18 July 2028 (after which it
changes to a floating rate equal to the aggregate of
the New Zealand 3-month bank bill rate plus 3.25%),
multiplied by one minus the New Zealand company
tax rate (where the PPS dividend is fully imputed).

2024 PPS
19 March 2024
NZ$275 million
19 March 2030
Perpetual
7.60% per annum until 19 March 2030 (after which it
changes to a floating rate equal to the aggregate of
the New Zealand 3-month bank bill rate plus 3.25%),
multiplied by one minus the New Zealand company
tax rate (where the PPS dividend is fully imputed).

As at 31 March 2024, the Quoted PPS carried a BBB credit rating from S&P Global Ratings. S&P Global Ratings upgraded the credit rating on the Quoted
PPS from BBB to BBB+ on 3 April 2024.
The Bank may, at its option, redeem a class of Quoted PPS on an optional redemption date (being each scheduled quarterly dividend payment datefrom the first optional redemption date), or at any time following the occurrence of a tax event or regulatory event, subject to prior written approval of
RBNZ and certain other conditions being met.
The key terms of the 2013 PPS are as follows:
The Bank issued NZ$300 million of PPS to the Immediate Parent Company in 2013. The dividend amount is based on a floating rate equal to theaggregate of the New Zealand 6-month bank bill rate plus 3.25%, multiplied by one minus the New Zealand company tax rate (where the 2013 PPS
dividend is fully imputed).
The 2013 PPS provide the Bank with a redemption option on specified dates and in certain other circumstances. Redemption is subject to RBNZ’s priorwritten approval. The 2013 PPS must be redeemed for nil consideration if a non-viability trigger event occurs.
20

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

11. COMMITMENTS AND CONTINGENT LIABILITIESCredit related commitments and contingencies
Contract amount of:
Undrawn facilities
Guarantees and letters of credit
Performance related contingencies
Total

31 Mar 24
NZ$m

30 Sep 23
NZ$m26,2471,140
1,441
28,82826,3051,029
1,590
28,924The Banking Group guarantees the performance of customers by issuing standby letters of credit and guarantees to third parties, including its
Ultimate Parent Bank. The risk involved is essentially the same as the credit risk involved in extending loan facilities to customers, therefore thesetransactions are subjected to the same credit origination, portfolio management and collateral requirements for customers applying for loans. As thefacilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements.
OTHER CONTINGENT LIABILITIESThere are outstanding court proceedings, claims and possible claims for and against the Banking Group. Where relevant, expert legal advice has beenobtained and, in the light of such advice, provisions and/or disclosures as deemed appropriate have been made. In some instances we have notdisclosed the estimated financial impact of the individual items either because it is not practicable to do so or because such disclosure may prejudiceseriously the interests of the Banking Group.
REGULATORY AND CUSTOMER EXPOSURESThe Banking Group regularly engages with its regulators in relation to regulatory investigations, surveillance and reviews, reportable situations, civil
enforcement actions (whether by court action or otherwise), formal and informal inquiries and regulatory supervisory activities both in New Zealandand globally. The Banking Group has received various notices and requests for information from its regulators as part of both industry-wide andBanking Group-specific reviews, and has also made disclosures to its regulators at its own instigation. The nature of these interactions can be wide
ranging and, for example, may include a range of matters including responsible lending practices, regulated lending requirements, product suitability
and distribution, interest and fees and the entitlement to charge them, customer remediation, wealth advice, insurance distribution, pricing,competition, conduct in financial markets and financial transactions, capital market transactions, anti-money laundering and counter-terrorism
financing obligations, privacy obligations and information security, business continuity management, reporting and disclosure obligations andproduct disclosure documentation. There may be exposures to customers which are additional to any regulatory exposures. These could include classactions, individual claims or customer remediation or compensation activities. The outcomes and total costs associated with such reviews andpossible exposures remain uncertain.
LOAN INFORMATION LITIGATIONIn September 2021, a representative proceeding was brought against the Bank, alleging breaches of disclosure requirements under consumer credit
legislation in respect of variation letters sent to certain loan customers. The bank is defending the allegations. In July 2022, the High Court ruled thatthe plaintiffs may bring the proceeding as an opt-out representative action on behalf of a class, being certain customers who entered into a homeloan or personal loan with the Bank between 6 June 2015 and 28 May 2016 and requested a variation to that loan during that period. Aspects of thedecision were appealed by both parties, and a hearing took place at the Court of Appeal in April 2024. The Bank is awaiting judgment.
WARRANTIES AND INDEMNITIESThe Banking Group has provided warranties, indemnities and other commitments in favour of the purchaser in connection with various disposals of
businesses and assets and other transactions, covering a range of matters and risks. It is exposed to potential claims under those warranties,
indemnities and commitments, some of which are currently active. The outcomes and total costs associated with these exposures remain uncertain.

21

ANZ BANK NEW ZEALAND LIMITEDLIMITED ASSURANCE REPORTINDEPENDENT AUDITOR’S REVIEW REPORTTO THE SHAREHOLDER OF ANZ BANK NEW ZEALAND LIMITEDREPORT ON THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONCLUSION
We have completed a review of the accompanying consolidated interim financial statements of ANZ Bank New Zealand Limited (the Bank) and its
subsidiaries (the Banking Group) on pages 4 to 21 which comprise:• the consolidated statement of financial position as at 31 March 2024;• the consolidated statements of comprehensive income, changes in equity and cash flows for the six-month period then ended; and• notes, including a summary of material accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial statements have notbeen prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting (NZ IAS 34) and IAS 34 Interim Financial Reporting(IAS 34).
BASIS FOR CONCLUSION
A review of the consolidated interim financial statements in accordance with NZ SRE 2410 Review of Financial Statements Performed by the
Independent Auditor of the Entity (NZ SRE 2410) is a limited assurance engagement. The auditor performs procedures, consisting of making enquiries,

primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

As the auditor of the Banking Group, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial
statements.
Our firm has also provided other services to the Banking Group in relation to review of regulatory returns, internal controls reports, prospectus
assurance, agreed upon procedures and other assurance engagements. Subject to certain restrictions, partners and employees of our firm may also
deal with the Banking Group on normal terms within the ordinary course of trading activities of the business of the Banking Group. These mattershave not impaired our independence as reviewer of the Banking Group. The firm has no other relationship with, or interest in, the Banking Group.
USE OF THIS INDEPENDENT REVIEW REPORTThis independent review report is made solely to the Bank’s shareholder. Our review work has been undertaken so that we might state to theshareholder those matters we are required to state to them in the independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the shareholder for our review work, this independent review
report, or any of the opinions we have formed.
RESPONSIBILITIES OF THE DIRECTORS FOR THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
The Directors, on behalf of the Banking Group, are responsible for:• the preparation and fair presentation of the consolidated interim financial statements in accordance with NZ IAS 34 and IAS 34;• implementing necessary internal control to enable the preparation of a consolidated interim financial statements that are free from material
misstatement, whether due to fraud or error; and• assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless they either intend to liquidate or to cease operations, or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the consolidated interim financial statements based on our review. We conducted our review inaccordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to believe that theconsolidated interim financial statements are not prepared, in all material respects, in accordance with NZ IAS 34 and IAS 34.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards
on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not
express an audit opinion on the Banking Group’s consolidated interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Jamie Munro.

KPMG
Auckland6 May 2024
22

This page has been left blank intentionally

23

REGISTERED BANKDISCLOSURESThis section contains the additional disclosures required by the Registered Bank Disclosure Statements(New Zealand Incorporated Registered Banks) Order 2014.

24

Section

Order reference

Page

B1.

General disclosures

Schedule 3

25

B2.

Additional financial disclosures

Schedule 5

26

B3.

Asset quality

Schedule 7

31

B4.

Capital adequacy under the internal models based approach,and regulatory liquidity ratios

Schedule 11

36

B5.

Concentration of credit exposures to individual counterparties

Schedule 13

43

B6.

Insurance business

Schedule 16

43

B7.

Risk management policies

Schedule 18

43

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
B1. GENERAL DISCLOSURES
Guarantees
The Bank has guaranteed the payment of interest and principal of covered bonds issued by its subsidiary ANZ New Zealand (Int’l) Limited. Thisobligation is guaranteed by ANZNZ Covered Bond Trust Limited (the Covered Bond Guarantor), solely in its capacity as trustee of ANZNZ Covered
Bond Trust. The Covered Bond Guarantor’s address for service is Level 16, SAP Tower, 151 Queen Street, Auckland 1010, New Zealand. The Covered
Bond Guarantor is not a member of the Banking Group and has no credit ratings applicable to its long term senior unsecured obligations. The coveredbonds have been assigned a long term rating of Aaa and AAA by Moody’s Investors Service and Fitch Ratings respectively. Refer to page 16 for further
details, and to page 26 for the amount of assets of the ANZ Covered Bond Trust pledged as security for covered bonds.
No other material obligations of the Bank are guaranteed as at 6 May 2024.
Changes in the Bank’s Board of Directors
Rt Hon Sir John Key, GNZM AC retired as an independent non-executive director on 14 March 2024. As at 6 May 2024, there have been no otherchanges to the directors of the Bank since 30 September 2023, the balance date of the last full year disclosure statement.
Auditors
KPMG, 18 Viaduct Harbour Avenue, Auckland, New Zealand.
Conditions of registration

Changes to the Bank’s conditions of registration since the last disclosure statement (for the year ended 30 September 2023)
The Bank’s conditions of registration have been amended to:• incorporate changes regarding RBNZ’s review of the connected exposures policy (BS8) and refer to updated versions of BPR’s 001, 110, 120, 130,131, 132, 133 to implement changes to risk weights; and introduce a new capital instrument for mutual banks (effective 1 October 2023);• remove the risk weight floor on the Bank’s corporate farm lending exposure (effective 30 November 2023); and• incorporate changes regarding outsourcing, connected exposures and risk weights for residential mortgage loans underwritten by Kāinga Ora.
(effective 1 April 2024).

Other matters relevant to the conditions of registration
There are other matters currently under review where there may be more than one valid interpretation of the respective policy wording or
requirement. Where there may be some uncertainty about the interpretation the Bank has applied, where appropriate it has sought guidance from,and will be liaising with, RBNZ.
Pending proceedings or arbitration
A description of any pending legal proceedings or arbitration concerning any member of the Banking Group that may have a material adverse effecton the Bank or the Banking Group is included in Note 11 Commitments and contingent liabilities.
Credit rating
The Bank has credit ratings that apply to its long-term senior unsecured obligations payable in New Zealand in New Zealand dollars.
As at 6 May 2024, the Bank’s credit ratings are:Rating agency
S&P Global Ratings
Fitch Ratings
Moody’s Investors Service

Credit rating
AAA+
A1

Qualification
Outlook Stable
Outlook Stable
Outlook Stable

Other material matters

Climate Statements
The Bank is a climate reporting entity (CRE) and is required to produce group climate statements under New Zealand’s mandatory climate-related
disclosure legislation. The Banking Group will issue its first mandatory climate statements under the Financial Markets Conduct Act 2013 (FMCA) andthe Aotearoa New Zealand Climate Standards (NZ CS) for the financial year ending 30 September 2024.

RBNZ capital requirements
RBNZ has revised the capital adequacy requirements applying to New Zealand locally incorporated registered banks, which are set out in RBNZ’s
Banking Prudential Requirements documents. As a result, the Banking Group is materially increasing the level of capital it holds over the transition
period from October 2021 to July 2028. The key requirements still being implemented are:
• The Banking Group’s total capital requirement will progressively increase to 18% of RWA, including tier 1 capital of at least 16% of RWA. Up to
2.5% of the tier 1 capital requirement can be made up of additional tier 1 (AT1) capital, with the remainder of the tier 1 requirement made up ofcommon equity tier 1 (CET1) capital, from July 2024. AT1 capital must consist of perpetual preference shares, which may be redeemable. The
total capital requirement can also include tier 2 capital of up to 2% of RWA. Tier 2 capital must consist of long-term subordinated debt.
• The tier 1 capital requirement will include a CET1 prudential capital buffer of 9% of RWA. This will include: a 2% domestic systemically importantbank capital buffer; a 1.5% 'early-set' counter-cyclical capital buffer, which can be temporarily reduced to 0% following a financial crisis, or
temporarily increased; and a 5.5% capital conservation buffer.
• Contingent capital instruments will no longer be treated as eligible regulatory capital. As at 31 March 2024, the Bank had NZ$1,238 million of
AT1 capital instruments that will progressively lose eligible regulatory capital treatment over the transition period to July 2028.

25

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
B2. ADDITIONAL FINANCIAL DISCLOSURES
Additional information on the balance sheet
As at 31 March 2024
Total interest earning and discount bearing assets
Total interest and discount bearing liabilities
Total amounts due from related entities
Total amounts due to related entities

NZ$m
181,773
148,900
5,909
7,035

Assets charged as security for liabilities
The following disclosure excludes the amounts presented as collateral paid and received on the balance sheet that relate to derivative liabilities andderivative assets respectively. The terms and conditions of those collateral agreements are included in the standard Credit Support Annex that forms
part of the International Swaps and Derivatives Association Master Agreement under which most of our derivatives are executed.
Assets charged as security for liabilities include the following types of instruments:• securities provided as collateral for repurchase transactions. These transactions are governed by standard industry agreements;• specified residential mortgages provided as security for notes and bonds issued to investors as part of the Banking Group’s covered bondprogrammes;• collateral provided to RBNZ under the Term Lending Facility and Funding for Lending Programme; and• collateral provided to a clearing house.
The carrying amounts of assets pledged as security are as follows:
As at 31 March 2024
Securities sold under agreements to repurchase
Residential mortgages pledged as security for repurchase agreements with RBNZ
Total assets of the ANZNZ Covered Bond Trust pledged as security for covered bonds
Other

NZ$m
446
4,889
9,642
236

Additional information on the income statement
The amounts of net trading gains or losses and other fair value adjustments are included in Note 2 Other operating income. The Banking Group does
not have any loans and advances designated at fair value through profit or loss. Other operating income for the purposes of the Order comprises net
fee and commission income, and all other items of other income (all in Note 2 Other operating income).

26

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

Additional information on concentrations of credit risk
Analysis of financial assets by industry is based on Australian and New Zealand Standard Industrial Classification (ANZSIC) codes. The significant
categories shown are the level one New Zealand Standard Industry Output Categories (NZSIOC), except that Agriculture is shown separately as
required by the Order.
Composition of financial instruments that give rise to credit risk by industry group are presented below:
Loans andadvances
NZ$m

Other
financialassets
NZ$m

Off-balance
sheet credit
relatedcommitments
NZ$m

Total
NZ$m

15,391
512
160
2,499
694
915
1,549
2,778
1,088
875
37,415
1,025
197
863
81,510
1,561

86
6
6
157
211
5
38
18
45
15,289
2,104
7
9,168
5
425
93

937
112
260
1,882
1,463
953
1,549
854
624
1,711
1,838
431
832
305
13,734
1,272

16,414
630
426
4,538
2,368
1,873
3,136
3,650
1,757
17,87541,357
1,463
10,197
1,173
95,6692,926

Subtotal
Overseas
Finance and insurance services
Households
All other non-NZ residents

149,032

27,66328,757

205,452

80
1,498
559

13,2918
21

71-

13,442
1,506
580

Subtotal
Gross subtotal
Allowance for ECL
Subtotal
Unearned income
Capitalised brokerage and other origination costs
Maximum exposure to credit risk

2,137
151,169(737)
150,432(23)
477
150,886

13,32040,98340,98340,98371
28,828(133)
28,69528,695

15,528220,980(870)
220,110(23)477
220,564

As at 31 March 2024
New Zealand residents
Agriculture
Forestry and fishing, agriculture services
MiningManufacturing
Electricity, gas, water and waste services
Construction
Wholesale trade
Retail trade and accommodation
Transport, postal and warehousing
Finance and insurance services
Rental, hiring & real estate services
Professional, scientific, technical, administrative and support services
Public administration and safety
Health care and social assistance
Households
All other New Zealand residents1

1

All other New Zealand residents includes exposures to information media and telecommunications, education and training; arts and recreation services; and other services.

27

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
Additional information on concentrations of funding
Analysis of funding liabilities by industry is based on ANZSIC codes. The significant categories shown are the level one NZSIOC.
As at 31 March 2024

Note

NZ$m

6

135,367

Funding composition
Customer deposits

Wholesale funding
Debt issuances

17,114

Certificates of deposit and commercial paper

5,399

Other borrowings

4,365

Total wholesale funding

26,878

Total deposits and wholesale funding

162,245

Customer deposits by industry - New Zealand residents
Agriculture, forestry and fishing
Mining4,426
203

Manufacturing

2,866

Construction

2,983

Wholesale trade

2,412

Retail trade and accommodation

2,293

Transport, postal and warehousing

1,437

Financial and insurance services

13,648

Rental, hiring and real estate services

3,602

Professional, scientific, technical, administrative and support services

6,526

Public administration and safety

1,727

Health care and social assistance

1,628

Arts, recreation and other services

2,426Households

76,308All other New Zealand residents1

3,039

Subtotal

125,524

Customer deposits by industry - overseas
Households
All other non-NZ residents
Subtotal
Total customer deposits

9,086
757
9,843
135,367

Wholesale funding (financial and insurance services industry)
New Zealand

8,135

Overseas

18,743

Total wholesale funding

26,878

Total deposits and wholesale funding

162,245

Concentrations of funding by geography
New Zealand

133,659

Australia

1,237

United States

12,402Europe7,887

Other countries
Total deposits and wholesale funding
1

28

All other New Zealand residents includes electricity, gas, water and waste services; information media and telecommunications; and education and training.

7,060
162,245ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

Additional information on interest rate sensitivity
The following table represents the interest rate sensitivity of the Banking Group's assets, liabilities and off-balance sheet instruments by showing theperiods in which these instruments may reprice, that is, when interest rates applicable to each asset or liability can be changed.

As at 31 March 2024
AssetsCash and cash equivalents
Settlement balances receivable
Collateral paid
Trading securities
Derivative financial instruments
Investment securities
Net loans and advances
Other financial assets
Total financial assets
Liabilities
Settlement balances payable
Collateral received
Deposits and other borrowings
Derivative financial instruments
Debt issuances
Lease liabilities
Other financial liabilities
Total financial liabilities
Hedging instruments
Interest sensitivity gap
1

Total
NZ$m

Up to
3 months
NZ$m

Over 3 to
6 months
NZ$m

Over 6 to
12 months
NZ$m

Over 1 to
2 years
NZ$m

Over
2 years
NZ$m

Not bearing
interest1
NZ$m

12,918
651
709
5,783
8,492
11,609150,886
1,018
192,066

12,552
709
1,041
297
65,03079,629140
264
22,41822,82299
152
31,882
32,133684
970
22,97024,624

3,819
9,924
8,822
22,565

366
651
8,492
2
(236)
1,018
10,293

3,576
1,003
145,131
7,911
17,114
190
1,926
176,851
15,215

2,026
1,003
90,322
1,727
11690
95,77910,643(5,507)

18,43412
18,446(709)
3,667

15,0381,995
23
17,056(12,582)
2,495

2,324
390
41
2,755
(4,164)
17,705

1,759
13,002
103
14,864
6,812
14,5131,550
17,254
7,911
1,236
27,951(17,658)

Excludes non-coupon bearing discount financial assets and financial liabilities which are shown as repricing on their maturity date.

Additional information on liquidity risk

Maturity analysis of financial liabilities
The table below provides residual contractual maturity analysis of financial liabilities at 31 March 2024 within relevant maturity groupings. All
outstanding debt issuances are profiled on the earliest date on which the Banking Group may be required to pay. The amounts represent principal
and interest cash flows – so they may differ from equivalent amounts reported on the balance sheet.

As at 31 March 2024

OndemandNZ$mLess than
3 months
NZ$m

3 to 12months
NZ$m

1 to 5
years
NZ$m

After
5 years
NZ$m

Total
NZ$m

2,875

726

-

-

-

3,601

Settlement balances payable
Collateral received

-

1,003

-

-

-

1,003

77,84526,82436,436

6,868-

147,973

Derivative financial liabilities (trading)

-

7,887

-

-

-

7,887

Debt issuances1

-

28

3,381

13,934

2,191

19,534

Lease liabilities

-

13

39

138

17

207

Other financial liabilities

-

5

34

554

510

1,103

- gross inflows

-

2,073

4,316

8,544

1,133

16,066- gross outflows-(2,053)(4,443)(8,921)(1,116)(16,533)

Deposits and other borrowings

Derivative financial instruments(balance sheet management)

1

Any callable wholesale debt instruments have been included at their next call date.

At 31 March 2024, NZ$28,828 million of its credit related commitments and contingent liabilities mature in less than 1 year, based on the earliest dateon which the Banking Group may be required to pay.

29

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
Liquidity portfolio management
The Banking Group holds a diversified portfolio of cash and high quality liquid securities primarily to support liquidity risk management. The size of the
Banking Group’s liquidity portfolio is determined with consideration of the amount required to meet the requirements of its internal and regulatory
liquidity scenario metrics.
As at 31 March 2024

NZ$m

Central and local government bonds
Government treasury bills
Certificates of deposit
Other bonds
Securities eligible to be accepted as collateral in repurchase transactions
Cash and balances with central banks
Total liquidity portfolio

7,264
826
278
8,308
16,676
12,26228,938Assets held in the Banking Group’s liquidity portfolio are all denominated in New Zealand dollars and include balances held with RBNZ and securities
issued by the New Zealand Government, supranational agencies, highly rated banks, state owned enterprises, local authorities (including through afunding authority) and highly rated corporates.
The Bank also held unencumbered internal residential mortgage backed securities (RMBS) which would be accepted as collateral by RBNZ in
repurchase transactions. These holdings would entitle the Bank to enter into repurchase transactions with RBNZ with a value of NZ$10,726 million at
31 March 2024 (30 September 2023: NZ$10,776 million).
RBNZ Term Lending Facility (TLF) and Funding for Lending Programme (FLP)• Between May 2020 and July 2021, RBNZ made funds available under the TLF to promote lending to businesses. The TLF is a five-year secured
funding facility for New Zealand banks at a fixed rate of 0.25%.
•

Between December 2020 and December 2022, RBNZ made funds available under the FLP to lower the cost of borrowing for New Zealandbusinesses and households. The FLP is a three-year secured funding facility for New Zealand banks at a floating rate of the New Zealand Official
Cash Rate (OCR).

As at 31 March 2024, the Bank had drawn NZ$271 million (30 September 2023: NZ$300 million) under the TLF and NZ$3,500 million under the FLP (30September 2023: NZ$3,500 million). These amounts are included in securities sold under repurchase agreements in Note 6 Deposits and otherborrowings.
Reconciliation of mortgage related amounts
As at 31 March 2024
Term loans - housing1
Less: housing loans made to corporate customers
Add: unsettled re-purchases of mortgages from the NZ BranchOn-balance sheet residential mortgage exposures subject to the IRB approach (per asset quality and LVR analysis)
Add: off-balance sheet residential mortgage exposures subject to the IRB approach (per asset quality and LVR analysis)
Total residential mortgage exposures subject to the IRB approach (per LVR analysis)
130Term loans – housing includes loans secured over residential property for owner-occupier, residential property investment and business purposes.

Note
4

B3, B4B3, B4B4

NZ$m
109,193(1,335)
5
107,863
9,586
117,449

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

B3. ASSET QUALITY
This section should be read in conjunction with the estimates, assumptions and judgements included in Note 1 About our interim financial
statements, Note 5 Allowance for expected credit losses and Note 8 Credit risk.
Movements in components of loss allowance – total

Net loans and advances - total
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Recoveries of amounts previously written off
Credit impairment charge / (release)
Bad debts written-off (excluding recoveries)
Add back recoveries of amounts previously written off
Discount unwind
As at 31 March 2024

Stage 1
NZ$m
193
35
(27)
8
201

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
398
79
60
(42)
3
4
9
42
40
(31)
(6)
(33)
45
7
(20)
6
(6)
365
124
47

Total
NZ$m
730
64
(31)
(6)
27
(20)
6
(6)
737

Off-balance sheet credit related commitments - total
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Credit impairment charge / (release)

80
4
(12)

39
(4)
22

3
-

5
(4)

127
6

(8)
72

18
57

3

(4)
1

6
133

Gross loans and advances - total
As at 1 October 2023
Net transfers in to each stage
Amounts drawn from new or existing facilities
Additions
Net transfers out of each stage
Amounts repaid
Deletions
Amounts written off
As at 31 March 2024
Loss allowance as at 31 March 2024

137,342
16,751
16,751(1,715)(14,425)(16,140)
137,953201

11,101
1,094
703
1,797
(1,329)(1,329)11,569
365

890
596
15
611
(145)
(145)
1,356
124

287
25
170
195
(171)
(171)
(20)
291
47

149,620
1,715
17,63919,354(1,715)(16,070)(17,785)(20)
151,169
737

Off-balance sheet credit related commitments - total
As at 1 October 2023
Net transfers in to each stage
New and increased facilities and drawn amounts repaid
Additions
Net transfers out of each stage
Reduced facilities and amounts drawn
Deletions
As at 31 March 2024
Loss allowance as at 31 March 2024

27,759
3,625
3,625
(306)
(3,792)(4,098)27,286
72

1,137
297
240
537
(158)
(158)
1,516
57

15
9
3
12
(9)
(9)
18
3

13
(5)
(5)
8
1

28,924
306
3,868
4,174
(306)
(3,964)(4,270)28,828133

As at 31 March 2024
Impacts of changes in gross financial assets on loss allowances - total

Explanation of how changes in the gross carrying amounts of gross loans and advances contributed to changes in loss allowance
Overall, loss allowances are 0.48% of gross balances as at 31 March 2024, unchanged from 0.48% as at 30 September 2023. The NZ$13 million (1.5%)
increase in loss allowances was driven by an increase in the proportion of gross balances in Stage 2 and Stage 3, and changes in the forward-looking
economic scenarios as described in Note 5 Allowance for expected credit losses, offset by a release of management temporary adjustments.

31

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
Movements in components of loss allowance - residential mortgages

Net loans and advances - residential mortgages
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Recoveries of amounts previously written off
Credit impairment charge / (release)
Bad debts written-off (excluding recoveries)
Add back recoveries of amounts previously written off
Discount unwind
As at 31 March 2024

Stage 1
NZ$m
42
16
(12)
4
46

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
131
48
14
(18)
2
8
6
4
(4)
(10)
8
121
56
14

Total
NZ$m
235
6
(4)
2
237

Off-balance sheet credit related commitments - residential mortgages
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Credit impairment charge
As at 31 March 2024

-

-

-

-

-

-

-

-

-

-

100,579
11,871
11,871(556)(9,354)(9,910)102,540
46

4,451
386
198
584
(477)
(477)
4,558
121

661
159
9
168
(103)
(103)
726
56

40
11
6
17
(18)
(18)
39
14

105,731556
12,084
12,640(556)(9,952)(10,508)
107,863
237

9,528
1,264
1,264
(16)
(1,277)(1,293)
9,499
-

73
16
8
24
(11)
(11)
86
-

1
1
-

-

9,602
16
1,272
1,288
(16)
(1,288)(1,304)
9,586-

Impacts of changes in gross financial assets on loss allowances - residential mortgages
Gross loans and advances - residential mortgages
As at 1 October 2023
Net transfers in to each stage
Amounts drawn from new or existing facilities
Additions
Net transfers out of each stage
Amounts repaid
Deletions
Amounts written off
As at 31 March 2024
Loss allowance as at 31 March 2024
Off-balance sheet credit related commitments - residential mortgages
As at 1 October 2023
Net transfers in to each stage
New and increased facilities and drawn amounts repaid
Additions
Net transfers out of each stage
Reduced facilities and amounts drawn
Deletions
As at 31 March 2024
Loss allowance as at 31 March 2024

Explanation of how changes in the gross carrying amounts of residential mortgages contributed to changes in loss allowance
The NZ$2 million (0.9%) increase in loss allowances on residential mortgage exposures is primarily driven by an increase in the proportion of grossbalances in Stage 2 and Stage 3, partially offset by changes in the forward-looking economic scenarios as described in Note 5 Allowance for expectedcredit losses. Overall loss allowances and individually impaired exposures remain low, reflecting that approximately 93% of on-balance sheet
residential mortgage exposures have loan to valuation ratios not exceeding 80% (refer to page 40).

32

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

Movements in components of loss allowance - other retail exposures

Net loans and advances - other retail exposures
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Recoveries of amounts previously written off
Credit impairment charge / (release)
Bad debts written-off (excluding recoveries)
Add back recoveries of amounts previously written off
Discount unwind
As at 31 March 2024

Stage 1
NZ$m
5
3
(3)
5

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
31
19
2
(3)
(1)
19
(2)
(4)
(3)
(1)
13
(18)
4
28
18
1

Total
NZ$m
57
15
(2)
(4)
9
(18)
4
52

Off-balance sheet credit related commitments - other retail exposures
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Credit impairment charge
As at 31 March 2024

13
2
(2)

9
(2)
2

3
-

-

25
-

13

9

3

-

25

Impacts of changes in gross financial assets on loss allowances - other retail exposures
Gross loans and advances - other retail exposures
As at 1 October 2023
Net transfers in to each stage
Amounts drawn from new or existing facilities
Additions
Net transfers out of each stage
Amounts repaid
Deletions
Amounts written off
As at 31 March 2024
Loss allowance as at 31 March 2024

2,191
283
283
(25)
(258)
(283)
2,191
5

116
14
10
24
(17)
(17)
123
28

32
10
2
12
(13)
(13)
31
18

5
1
24
25
(4)
(4)
(18)
8
1

2,344
25
319
344
(25)
(292)
(317)
(18)
2,353
52

Off-balance sheet credit related commitments - other retail exposures
As at 1 October 2023
Net transfers in to each stage
New and increased facilities and drawn amounts repaid
Additions
Net transfers out of each stage
Reduced facilities and amounts drawn
Deletions
As at 31 March 2024
Loss allowance as at 31 March 2024

4,605
164
164
(7)
(229)
(236)
4,533
13

28
5
2
7
(6)
(6)
29
9

9
2
1
3
(4)
(4)
8
3

-

4,642
7
167
174
(7)
(239)
(246)
4,570
25

Explanation of how changes in the gross carrying amounts of other retail exposures contributed to changes in loss allowance
The NZ$5 million (6.1%) decrease in loss allowances is driven by changes in the forward-looking economic scenarios as described in Note 5 Allowancefor expected credit losses and a release of management temporary adjustments.

33

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
Movements in components of loss allowance - corporate exposures1

Net loans and advances - corporate exposures
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Recoveries of amounts previously written off
Credit impairment charge / (release)
Bad debts written-off (excluding recoveries)
Add back recoveries of amounts previously written off
Discount unwind
As at 31 March 2024

Stage 1
NZ$m
146
16
(12)
4
150

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
236
12
44
(21)
1
4
1
37
17
(25)
(2)
(20)
38
(6)
(2)
2
(6)
216
50
32

Total
NZ$m
438
43
(25)
(2)
16
(2)
2
(6)
448

Off-balance sheet credit related commitments - corporate exposures
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Credit impairment charge / (release)
As at 31 March 2024

67
2
(10)

30
(2)
20

-

5
(4)

102
6

(8)
59

18
48

-

(4)
1

6
108

Impacts of changes in gross financial assets on loss allowances - corporate exposures
Gross loans and advances - corporate exposures
As at 1 October 2023
Net transfers in to each stage
Amounts drawn from new or existing facilities
Additions
Net transfers out of each stage
Amounts repaid
Deletions
Amounts written off
As at 31 March 2024
Loss allowance as at 31 March 2024

34,572
4,597
4,597(1,134)(4,813)(5,947)33,222
150

6,534
694
495
1,189
(835)
(835)
6,888
216

197
427
4
431
(29)
(29)
599
50

242
13
140
153
(149)
(149)
(2)
244
32

41,545
1,134
5,236
6,370
(1,134)(5,826)(6,960)(2)
40,953448

Off-balance sheet credit related commitments - corporate exposures
As at 1 October 2023
Net transfers in to each stage
New and increased facilities and drawn amounts repaid
Additions
Net transfers out of each stage
Reduced facilities and amounts drawn
Deletions
As at 31 March 2024
Loss allowance as at 31 March 2024

13,626
2,197
2,197
(283)
(2,286)(2,569)13,254
59

1,036
276
230
506
(141)
(141)
1,401
48

5
7
2
9
(5)
(5)
9
-

13
(5)
(5)
8
1

14,680
283
2,429
2,712
(283)
(2,437)(2,720)14,672
108

1

Also includes all other non-retail exposure classes in net loans and advances and off-balance sheet credit related commitments to reconcile to the respective totals for the Banking Group.

Explanation of how changes in the gross carrying amounts of corporate exposures contributed to changes in loss allowance
The NZ$16 million (3.0%) increase in loss allowances is driven by an increase in the proportion of gross balances in Stage 2 and Stage 3, and changes
in the forward-looking economic scenarios as described in Note 5 Allowance for expected credit losses, offset by a release of management temporary
adjustments.

34

ANZ BANK NEW ZEALAND LIMITED

Past due assets and other asset quality information
As at 31 March 2024
Past due assets
Less than 30 days past due
At least 30 days but less than 60 days past due
At least 60 days but less than 90 days past due
At least 90 days past due
Total past due but not individually impaired
Other asset quality information
Undrawn facilities with individually impaired customers
Other assets under administration

UNAUDITED

Residential Other retailmortgages exposures
NZ$m
NZ$m

Corporate
exposures
NZ$m

Total
NZ$m

708
292
291
659
1,950

83
12
7
21
123

337
119
68
194
718

1,128
423
366
874
2,791

8

1

8
-

8
9

The Banking Group does not have any loans and advances designated at fair value.

35

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
B4. CAPITAL ADEQUACY UNDER THE INTERNAL MODELS BASED APPROACH, AND REGULATORYLIQUIDITY RATIOSRBNZ capital ratios
As at 31 March
Common equity tier 1 capital
Tier 1 capital
Total capital
Prudential capital buffer ratio

RBNZ minimum
2024
2023
4.5%
4.5%
6.0%
6.0%
8.0%
8.0%
4.5%
3.5%

Banking Group
2024
2023
12.8%
12.2%
14.7%
13.8%
16.2%
15.2%
8.2%
7.2%

Bank
(Solo Consolidated)
2024
2023
12.6%
12.0%
14.5%
13.6%
15.9%
15.0%
n/a
n/a

Capital
As at 31 March 2024
Tier 1 capital

NZ$m

Common equity tier 1 (CET1) capital
Paid up ordinary shares issued by the Bank
Retained earnings (net of appropriations)1
Accumulated other comprehensive income and other disclosed reserves2

11,5886,001(61)

Less deductions from common equity tier 1 capital
Goodwill and intangible assets, net of associated deferred tax liabilities
Deferred tax assets less deferred tax liabilities relating to temporary differences
Cash flow hedge reserve
Defined benefit superannuation plan surplus
Expected losses to the extent greater than total eligible allowances for impairment
CET 1 capital(3,096)
(465)
48
(25)
(288)
13,702

Additional tier 1 (AT1) capital825

NZD 825m preference shares3

Transitional AT1 capital
NZD 300m preference shares3
NZD 938m ANZ New Zealand Internal Capital Notes (ANZ NZ ICN2)4
AT1 capital
Total tier 1 capital
Tier 2 capital
NZD 600m subordinated notes4
USD 500m subordinated notes4
Eligible impairment allowance in excess of expected loss
Tier 2 capital
Total capital
1
2
3
4

36

300
938
2,063
15,765
600
838
66
1,504
17,269Includes a deduction for dividends on AT1 capital instruments approved by the Bank’s board, but not yet paid as at 31 March 2024, as required by BPR110 Capital Definitions. These
dividends are not recognised under NZ GAAP because the payment of the dividends remains at the Bank’s discretion until payment is made.
Includes the FVOCI reserve of NZ$(13) million and the cash flow hedging reserve of NZ$(48) million as at 31 March 2024.
Classified as equity on the balance sheet under NZ GAAP.
Classified as a liability on the balance sheet under NZ GAAP.

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

Capital requirements of the Banking GroupAs at 31 March 2024
Exposures subject to internal ratings based approach
Specialised lending exposures subject to slotting approach
Exposures subject to standardised approach
Credit risk supervisory adjustment
Total credit risk
Market risk
Operational risk, calculated using the standardised approach
Total

Risk weighted
exposure or
Total exposure implied risk
after credit risk
weighted
mitigation
exposure
NZ$m
NZ$m
170,338
11,33237,884n/a
219,554
n/a
n/a
n/a

Total capitalrequirement
NZ$m

57,38911,306
4,546
15,71988,9606,045
11,884
106,889

4,591
904
363
1,258
7,116
484
951
8,551

Capital structure

Ordinary shares– CET1 capital
Ordinary shares have no par value. Each fully paid ordinary share gives the holder the right to one vote on a poll at a general meeting of the Bank.
Ordinary shares are recognised at the amount paid per ordinary share net of directly attributable costs. They entitle holders to receive dividends, andsurplus assets available in a liquidation of the Bank, in proportion to the number of fully paid ordinary shares held.

Preference shares – AT1 capital
PPS do not carry any voting rights. They are classified as equity instruments as there is no contractual obligation for the Bank to either deliver cash or
another financial instrument or to exchange financial instruments on a potentially unfavourable basis.
In the event of liquidation, holders of PPS are entitled to a maximum amount equal to the issue price of the PPS. Holders of PPS rank behind the claimsof all depositors and other creditors of the Bank (other than creditors that rank equally with the PPS), equally with the rights of other holders of PPS,AT1 capital notes and other equal ranking securities and obligations, and in priority to the rights of holders of ordinary shares.
Holders of PPS are entitled to receive dividends that are discretionary, non-cumulative and subject to conditions. If a PPS dividend is not paid, there arecertain restrictions on the ability of the Bank to pay a dividend on its ordinary shares. Holders of the PPS have no other rights to participate in the
profits or property of the Bank.
Holders of PPS have no right to require that the PPS be redeemed.
The Bank has three classes of PPS: PPS issued in 2022 and 2024 that are quoted on the NZX Debt Market (Quoted PPS), and PPS issued to the
Immediate Parent Company in 2013 (2013 PPS).
The key terms of the Quoted PPS are as follows:
Issue dateIssue amountFirst optional redemption date
Final maturity date

Dividend amount2022 PPS
18 July 2022
NZ$550 million
18 July 2028
Perpetual
6.95% per annum until 18 July 2028 (after which it
changes to a floating rate equal to the aggregate of
the New Zealand 3-month bank bill rate plus 3.25%),
multiplied by one minus the New Zealand company
tax rate (where the PPS dividend is fully imputed).

2024 PPS
19 March 2024
NZ$275 million
19 March 2030
Perpetual
7.60% per annum until 19 March 2030 (after which it
changes to a floating rate equal to the aggregate of
the New Zealand 3-month bank bill rate plus 3.25%),
multiplied by one minus the New Zealand company
tax rate (where the PPS dividend is fully imputed).

As at 31 March 2024, the Quoted PPS carried a BBB credit rating from S&P Global Ratings. S&P Global Ratings upgraded the credit rating on the Quoted
PPS from BBB to BBB+ on 3 April 2024.
The Bank may, at its option, redeem a class of Quoted PPS on an optional redemption date (being each scheduled quarterly dividend payment datefrom the first optional redemption date), or at any time following the occurrence of a tax event or regulatory event, subject to prior written approval of
RBNZ and certain other conditions being met.
The key terms of the 2013 PPS are as follows:
The Bank issued NZ$300 million of PPS to the Immediate Parent Company in 2013. The dividend amount is based on a floating rate equal to theaggregate of the New Zealand 6-month bank bill rate plus 3.25%, multiplied by one minus the New Zealand company tax rate (where the 2013 PPS
dividend is fully imputed).
The 2013 PPS provide the Bank with a redemption option on specified dates and in certain other circumstances. Redemption is subject to RBNZ’s priorwritten approval. The 2013 PPS must be redeemed for nil consideration if a non-viability trigger event occurs.

37

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
AT1 capital notes
AT1 capital notes are convertible non-cumulative perpetual subordinated debt securities. Holders of AT1 capital notes do not have any right to vote ingeneral meetings of the Bank. AT1 capital notes are classified as debt given there are circumstances beyond the Bank’s control where the principal isconverted into a variable number of ordinary shares of the Bank. Interest payments on AT1 capital notes are discretionary, non-cumulative and subject
to conditions.
In the event of liquidation, holders of AT1 capital notes are entitled to claim an amount equal to the issue price of the AT1 capital notes. Holders of
AT1 capital notes rank behind the claims of all depositors and other creditors of the Bank (other than creditors that rank equally with the AT1 capitalnotes), equally with the rights of holders of PPS, and other equal ranking securities and obligations, and in priority to the rights of holders of ordinary
shares.
The Bank issued $938 million of AT1 capital notes to NZ Branch in 2016 (ANZ NZ ICN2). The key terms of the ANZ NZ ICN2 notes are as follows:
The interest amount is based on a floating rate equal to the aggregate of the New Zealand 6 month bank bill rate plus 6.29% per annum.
ANZ NZ ICN2 notes provide the Bank with a redemption option on specified dates and a redemption or conversion option in certain othercircumstances. Redemption is subject to RBNZ’s prior written approval. The ANZ NZ ICN2 notes will immediately convert into ordinary shares of the
Bank if:•the Banking Group’s common equity tier 1 capital ratio is equal to or less than 5.125% - known as a Common Equity Capital Trigger Event; or•

RBNZ directs the Bank to convert or write-off the ANZ NZ ICN2 notes, or a statutory manager is appointed to the Bank and decides that the Bank
must convert or write-off the ANZ NZ ICN2 notes.

Transitional AT1 capital
RBNZ has revised its capital adequacy requirements for New Zealand banks, that are being progressively implemented until July 2028. Under therevised requirements, the ANZ NZ ICN2 notes and the 2013 PPS are subject to a progressive reduction in their regulatory capital recognition.
Fixing the base at the aggregate nominal amount of such instruments outstanding as at 30 September 2021 (NZ$2,741 million), their aggregate
recognition is capped at 62.5% from 1 January 2024; 50% from 1 January 2025; 37.5% from 1 January 2026; 25% from 1 January 2027; 12.5% from 1
January 2028; and from 1 July 2028 onwards these instruments will not be included in regulatory capital.
The Bank has determined that a regulatory event has occurred in respect of these transitional AT1 capital instruments. The occurrence of a regulatory
event means that the Bank may choose to redeem the transitional AT1 capital instruments at its discretion. Any redemption of the transitional AT1
capital instruments is subject to certain conditions, including prior written approval of RBNZ. As at 6 May 2024, no decision has been made onwhether the Bank will redeem the transitional AT1 capital instruments.

Tier 2 capital
Tier 2 capital notes are fully paid unsecured subordinated notes. Interest payments are subject to the Bank being solvent at the time of, andimmediately following, the payment. Unpaid interest accumulates, and will be paid at the earlier of when the Bank is solvent again or at maturity. The
Bank may repay the notes early (the next optional call dates are specified below), or in certain other circumstances (such as a tax or regulatory event).
Early repayment is subject to certain conditions, including approval from RBNZ.
Currency Face value Issue date Maturity
NZD
600m
Sep 2021 Sep 2031
USD
500m
Aug 2022 Aug 2032
Total tier 2 capital11
2

38

Next optional call date subject to RBNZ's approvalSep 2026
Aug 2027

Interest
rate
2.999%
5.548%

Interest
reset date
Sep 2026
Aug 2027

Creditrating2
AA-

Carrying amounts are net of issuance costs and fair value hedging adjustments.
Credit rating assigned by S&P Global Ratings. S&P Global Ratings upgraded the credit rating on the tier 2 capital notes from A- to A on 3 April 2024.

31 Mar 24
NZ$m
596
796
1,392

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

Credit risk subject to the Internal Ratings Based (IRB) approach

IRB credit exposures by exposure class and customer credit rating

As at 31 March 2024
Corporate
0-2
3-4
5
6
7-8
Default
Total corporate exposures
Residential mortgages
0-3
4
5
6
7-8
Default
Total residential mortgages exposures1
Other retail
0-2
3-4
5
6
7-8
Default
Total other retail exposures
Total credit risk exposures subject
to the IRB approach2
1
2

Probabilityof default%

Exposure at
Total valuedefault
NZ$m
NZ$m

Exposureweighted
LGD used
for thecapitalcalculation%

Exposureweighted
risk weight%

Risk
Minimum
weighted
capitalassets requirement
NZ$m
NZ$m

0.05
0.35
1.00
2.25
13.23
100.002.36

80,92541,708
13,946
4,503
4,100
431
145,613

7,899
17,916
12,069
4,299
2,623
436
45,242

59
38
31
31
36
27
39

28
41
54
72
144
75
52

2,644
8,794
7,880
3,736
4,537
391
27,982

212
704
630
299
363
31
2,239

0.19
0.45
0.91
1.95
4.76
100.001.15

42,03247,064
24,414
3,041
123
775
117,449

42,43847,18424,491
3,047
123
773
118,056

12
20
24
26
26
17
18

5
16
32
61
93
12
16

2,619
8,907
9,321
2,225
137
113
23,322

209
713
746
178
11
8
1,865

0.10
0.26
1.09
2.61
7.55
100.00
2.01

500
4,055
1,056
427
844
41
6,923

503
4,129
1,048
452
866
42
7,040

77
78
78
79
89
80
79

49
56
84
101
136
30
72

298
2,764
1,051
545
1,413
14
6,085

24
221
84
44
113
1
487

1.51

269,985

170,33826

28

57,3894,591

The credit risk supervisory adjustment on page 37 totals NZ$15,719 million of RWA for residential mortgage exposures. This increases the pre-scalar IRB exposure-weighted risk weight to
28% and the minimum capital requirement to NZ$3,123 million.
The credit risk supervisory adjustment increases the total pre-scalar IRB exposure-weighted risk weight to 36% and the related minimum capital requirement to NZ$5,849 million.

IRB credit exposures include the following undrawn commitments and other off-balance sheet contingent liabilities:

As at 31 March 2024
Undrawn commitments and other off-balance sheet contingent liabilities
Corporate
Residential mortgages
Other retailCounterparty credit risk on derivatives and securities financing transactions
Corporate
Total

Total value
NZ$m

Exposureat default
NZ$m

11,6649,586
4,570

10,93910,0504,629

101,710
127,530

1,731
27,34939

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
Additional mortgage information
As required by 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. Off-balance sheet exposures include undrawn and partially drawn residential mortgage loans as wellas commitments to lend. Commitments to lend are formal offers for housing lending which have been accepted by the customer.
On-balance Off-balance
sheet
sheet
NZ$m
NZ$m

As at 31 March 2024
LVR range
Does not exceed 60%
Exceeds 60% and not 70%
Exceeds 70% and not 80%
Does not exceed 80%
Exceeds 80% and not 90%
Exceeds 90%
Total
Specialised lending subject to the slotting approach

As at 31 March 2024
On-balance sheet exposures
StrongGood
Satisfactory
Weak
Default
Off-balance sheet exposures by average risk weight
Undrawn commitments and other off-balance sheet exposures
Total exposures subject to the slotting approach

57,747
19,932
22,799100,478
5,677
1,708
107,863

7,242
1,037
1,026
9,305
108
173
9,586

Total
NZ$m
64,98920,96923,825
109,783
5,785
1,881
117,449

Exposures
after
credit risk
mitigation
NZ$m

Risk
weight%Riskweighted
assetsNZ$m

Minimum
capitalrequirement
NZ$m

5,415
3,559
853
346
415

70
90
115
250
-

4,549
3,844
1,177
1,036
-

364
307
94
83
-

744
11,33278
83

700
11,30656
904

The supervisory categories of specialised lending above are associated with specific risk-weights. These categories broadly correspond to thefollowing external credit assessments using S&P Global Ratings' rating scale, Strong: BBB- or better, Good: BB+ or BB, Satisfactory: BB- or B+ and Weak:
B to C-.

40

ANZ BANK NEW ZEALAND LIMITED

Credit risk exposures subject to the standardised approach

As at 31 March 2024

UNAUDITED

Average
Exposure
Exposurecredit after credit
or principal conversion
risk
Averageamountfactor mitigation risk weight
NZ$m
%
NZ$m
%

On-balance sheet exposures
Cash and gold bullion
Sovereign and central banks
Multilateral development banks and other international organisations
Public sector entities
Banks
Corporate
Past due assets
Other assets
Equity exposures
Unlisted equity holdings
Off-balance sheet exposures
Total off-balance sheet exposures
2,091
Counterparty credit risk
Foreign exchange contracts
324,185
Interest rate contracts
1,262,856
Other
3,462
Credit valuation adjustmentn/aTotal exposures subject to the standardised approach

Risk
Minimum
weighted
capitalexposure requirement
NZ$m
NZ$m

197
21,148
5,365
1,155
1,450
77
1,200

20
39
114
100

231
571
87
1
1,200

18
46
7
96

1

400

6

-

58

1,219

48

580

46

n/a
n/a
n/a
n/a

4,087
1,626
359
n/a
37,884

20
10
38
n/a
12

809
156
136
769
4,546

65
12
11
62
363

Credit valuation adjustment
The IRB and standardised tables above include an aggregate Credit Valuation Adjustment (CVA) capital charge of NZ$98 million, and aggregate
implied risk weighted exposures for the CVA of NZ$1,225 million.
Credit risk mitigation
As at 31 March 2024, under the IRB approach, the Banking Group had NZ$317 million of corporate exposures covered by guarantees where thepresence of the guarantees was judged to reduce the underlying credit risk of the exposures. Information on the value of other exposures covered byfinancial 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.
Effect of standardised floor on total risk-weighted exposures for credit risk
Risk weighted assets

As at 31 March 2024
Exposures subject to the IRB or slotting approaches1
Credit risk supervisory adjustment1
Subtotal1
Standardised floor at 85% of standardised RWA
IRB and slotting RWA with standardised floor applied
Exposures subject to the standardised approach
Total credit risk
1

Calculated forcompliancepurposes
NZ$m
68,695
15,71984,414n/a
84,414
4,546
88,960Calculated using
standardised
approach
NZ$m
97,992n/a
97,992
83,293
83,293RWA calculated for compliance purposes includes a scalar of 1.2 as required by BPR 130 Credit Risk RWAs Overview.

In accordance with BPR 130 Credit Risk RWAs Overview, IRB and slotting RWA with standardised floor applied is calculated as the greater of RWA forcompliance purposes, and 85% of the total RWA for such exposures calculated using the standardised approach.

41

ANZ BANK NEW ZEALAND LIMITEDUNAUDITEDREGISTERED BANK DISCLOSURES
Market risk
The aggregate market risk exposures below have been calculated in accordance with BPR140: Market Risk. The peak end-of-day market risk exposures
are for the six months ended 31 March 2024.
Implied risk weighted
exposure
Aggregate capital charge
Period end
Peak Period end
Peak
As at 31 March 2024
NZ$m
NZ$m
NZ$m
NZ$m
Interest rate risk
6,000
6,507
480
521
Foreign currency risk
44
83
4
7
Equity risk
1
1Capital 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 ofRegistration. The Banking Group's ICAAP identifies and measures all "other material risks", which are those material risks that are not explicitly captured
in the calculation of the Banking Group's tier 1 and total capital ratios. Other material risks identified by the Banking Group include fixed asset risk,
deferred acquisition cost risk, credit concentration risk and climate change risk. As at 31 March 2024, the Banking Group's internal capital allocation forthese other material risks is NZ$416 million (March 2023: NZ$468 million, updated from NZ$292 million for revised methodology).
Information about Ultimate Parent Bank and Overseas Banking Group
APRA Basel III capital ratios

As at 31 March
Common equity tier 1 capital
Tier 1 capital
Total capital

Ultimate Parent Bank
Overseas Banking Group (Extended Licensed Entity)
2024
2023
2024
2023
13.2%
12.9%
13.5%
13.4%
15.1%
15.2%
15.4%
15.7%
20.6%
21.6%
21.9%
23.3%

The Ultimate Parent Bank and the Overseas Banking Group are required to hold minimum capital as determined by APRA’s capital framework, which is
at least equal to that specified under the internationally agreed Basel III framework.
APRA has authorised the Ultimate Parent Bank and the Overseas Banking Group to use:
• the Internal Ratings Based (IRB) methodology for calculation of credit risk weighted assets. Where the Overseas Banking Group is not accredited
to use the IRB methodology the Overseas Banking Group applies the standardised approach.
• the Standardised Measurement Approach (SMA) for the operational risk weighted asset equivalent.
The Overseas Banking Group exceeded the minimum capital requirements set by APRA as at 31 March 2024 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 31 March 2024. The Overseas Banking Group’s Pillar 3
disclosure document for the quarter ended 31 March 2024, in accordance with APS 330: Public Disclosure of Prudential Information, discloses capital
adequacy ratios and other prudential information. This document can be accessed at the website anz.com.
Regulatory liquidity ratios
RBNZ requires banks to hold minimum amounts of liquid assets to help ensure that they are effectively managing their liquidity risk. The mismatch
ratio is a measure of a bank’s liquid assets, adjusted for expected cash inflows and outflows during a 1-month or 1-week period of stress. It is expressed
as a ratio over the bank’s total funding. The Banking Group must maintain its 1-month and 1-week mismatch ratios above zero on a daily basis. The 1month and 1-week mismatch ratios are averaged over the quarter.
RBNZ requires banks to get a minimum amount of funding from stable sources called core funding. The minimum amount of core funding is 75% of abank’s total loans. The Banking Group must maintain its core funding ratio above the regulatory minimum on a daily basis. This measure of the corefunding ratio is averaged over the quarter.
For the three months ended
Quarterly average 1-week mismatch ratio
Quarterly average 1-month mismatch ratio
Quarterly average core funding ratio

42

31 Mar 24
9.2%
8.1%
90.6%

31 Dec 23
9.3%
8.1%
91.0%

ANZ BANK NEW ZEALAND LIMITEDUNAUDITED

B5. CONCENTRATION OF CREDIT EXPOSURES TO INDIVIDUAL COUNTERPARTIESThe Banking Group measures its concentration of credit exposures to individual counterparties at the reporting date on the basis of actual exposures.
Peak end-of-day aggregate credit exposures are measured on the basis of internal limits that were not materially exceeded between the reporting
date for the previous disclosure statement and the reporting date for the Disclosure Statement.
The exposure information in the table below excludes exposures to:• connected persons (i.e. other members of the Overseas Banking Group and Directors of the Bank);• the central government or central bank of any country with a long-term credit rating of A- or A3 or above, or its equivalent; and• any supranational or quasi-sovereign agency with a long-term credit rating of A- or A3 or above, or its equivalent.

Exposures to banks
Total number of exposures to banks that are greater than 10% of CET1 capitalwith a long-term credit rating of A- or A3 or above, or its equivalent
with a long-term credit rating of at least BBB- or Baa3, or its equivalent, and at most BBB+ or Baa1, or its equivalent
Exposures to non-banks
Total number of exposures to non-banks that are greater than 10% of CET1 capitalwith a long-term credit rating of A- or A3 or above, or its equivalent- 10% to less than 15% of CET1 capitalwith a long-term credit rating of at least BBB- or Baa3, or its equivalent, and at most BBB+ or Baa1, or its equivalent

As at
31 Mar 24

Peak end of
day over 6
months to
31 Mar 24

-

-

1
1
1
-

1
1
1
-

B6. INSURANCE BUSINESSAs at 31 March 2024, the Banking Group does not conduct any insurance business.

B7. RISK MANAGEMENT POLICIESDuring the six months ended 31 March 2024, the Banking Group elevated Climate Risk to Material Risk status. A dedicated Climate Risk Management
team, with oversight from the Material Risk Owners, are working to integrate and embed Climate Risk into the Banking Group’s Risk Management
Framework through existing policies, processes and governance frameworks.
Climate Risk is the risk that arises from the changing climate and from the global transition towards a lower emissions economy. The key elements of
Climate Risk are:• Physical Risk – Includes both longer-term changes in climate (chronic risk) as well as changes to the frequency and magnitude of extreme
weather events (acute risk). Examples of chronic physical risk drivers include rising sea levels, rising average temperatures and ocean
acidification. Examples of acute physical risk drivers include heatwaves, floods, bushfires, and cyclones.
•

Transition Risk – The risk of transitioning to a lower emissions economy, including changes in domestic and international policy and regulatory
settings, technological innovation, social adaptation, the market, as well as the heightened risk of litigation (e.g. greenwashing).

Climate Risk is considered a ‘cross-cutting’ risk; while Climate Risk primarily manifests as a Financial Risk, notably through Credit Risk, it may alsoheighten other Financial Risks and Non-Financial Risks. For example, non-financial impacts could arise from non-compliance with current andemerging regulatory expectations, damage to the Banking Group’s physical assets or business disruption caused by extreme weather events orchronic changes to weather patterns. The Banking Group may also face legal proceedings and suffer reputational damage, for example, if it acts or isperceived to act inconsistently with public commitments in relation to climate change.

43

ANZ BANK NEW ZEALAND LIMITED

DIRECTORS’ STATEMENT
As at the date on which this Disclosure Statement is signed, after due enquiry, each Director believes that:•

The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements (New Zealand Incorporated
Registered Banks) Order 2014; and•The Disclosure Statement is not false or misleading.

Over the six months ended 31 March 2024, after due enquiry, each Director believes that:•

The Bank has complied in all material respects with each condition of registration that applied during that period1;•

Credit exposures to connected persons were not contrary to the interests of the Banking Group; and•The Bank 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, operational risk and other business risks, and that those systems were being properly
applied.

1.

In accordance with the Order, the Bank has complied in all material respects with each of its conditions of registration that applied during the period if the RBNZ has not published any
information about a breach on its website, and has not notified the Bank of any material breach.

This Disclosure Statement is dated, and has been signed by all Directors of the Bank on, 6 May 2024.

Shayne Elliott

Gerard Florian

Alison Gerry

Scott St JohnMark Tume

Antonia Watson

Joan Withers

44

ANZ BANK NEW ZEALAND LIMITEDLIMITED ASSURANCE REPORTS

INDEPENDENT AUDITOR’S REPORTS ON THE REGISTERED BANK DISCLOSURESTO THE SHAREHOLDER OF ANZ BANK NEW ZEALAND LIMITEDREVIEW REPORT ON THE REGISTERED BANK DISCLOSURES IN SECTIONS B2, B3, B5, B6 AND B7
CONCLUSION
We have completed a review of the accompanying registered bank disclosures of ANZ Bank New Zealand Limited (the Bank) and its subsidiaries(the Banking Group) in sections B2, B3, B5, B6 and B7 on pages 26 to 35 and 43. These comprise the information that is required to be disclosed inaccordance with schedules 5, 7, 13, 16 and 18 of the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order2014 (the Order).
Based on our review, nothing has come to our attention that causes us to believe that the registered bank disclosures in sections B2, B3, B5, B6 and
B7:• do not present fairly, in all material respects, the matters to which they relate; or• are not disclosed, in all material respects, in accordance with schedules 5, 7, 13, 16 and 18 of the Order.
BASIS FOR CONCLUSION
A review of the registered bank disclosures in sections B2, B3, B5, B6 and B7 in accordance with NZ SRE 2410 Review of Financial Statements
Performed by the Independent Auditor of the Entity (NZ SRE 2410) is a limited assurance engagement. The auditor performs procedures, consisting of
making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of the Banking Group, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial
statements.
Our firm has also provided other services to the Banking Group in relation to review of regulatory returns, internal controls reports, prospectus
assurance, agreed upon procedures and other assurance engagements. Subject to certain restrictions, partners and employees of our firm may also
deal with the Banking Group on normal terms within the ordinary course of trading activities of the business of the Banking Group. These mattershave not impaired our independence as reviewer of the Banking Group. The firm has no other relationship with, or interest in, the Banking Group.
USE OF THIS INDEPENDENT REVIEW REPORTThis independent review report is made solely to the Bank’s shareholder. Our review work has been undertaken so that we might state to theshareholder those matters we are required to state to them in the independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the shareholder for our review work, this independent review
report, or any of the opinions we have formed.
RESPONSIBILITIES OF THE DIRECTORS FOR THE REGISTERED BANK DISCLOSURES IN SECTIONS B1, B2, B3, B5, B6
AND B7
The Directors, on behalf of the Banking Group, are responsible for:• the preparation and fair presentation of the registered bank disclosures in accordance with schedules 3, 5, 7, 13, 16 and 18 of the Order; and• implementing necessary internal control to enable the preparation of registered bank disclosures that free from material misstatement, whether
due to fraud or error.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE REGISTERED BANK DISCLOSURES IN SECTIONS B2, B3,
B5, B6 AND B7
Our responsibility is to express a conclusion on the registered bank disclosures in sections B2, B3, B5, B6 and B7 based on our review. We conducted
our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us tobelieve that the registered bank disclosures in sections B2, B3, B5, B6 and B7:• do not present fairly, in all material respects, the matters to which they relate; or• are not disclosed, in all material respects, in accordance with schedules 5, 7, 13, 16 and 18 of the Order; or• if applicable, have not been prepared, in all material respects, in accordance with any conditions of registration relating to disclosure
requirements, imposed under section 74(4)(c) of the Banking (Prudential Supervision) Act 1989 (the Bank does not have any such conditions).
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards
on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not
express an audit opinion on the registered bank disclosures in sections B2, B3, B5, B6 and B7.

KPMG
Auckland6 May 2024
45

ANZ BANK NEW ZEALAND LIMITEDLIMITED ASSURANCE REPORTS
LIMITED ASSURANCE REPORT ON THE CAPITAL ADEQUACY AND REGULATORY LIQUIDITY RATIOS DISCLOSURESIN SECTION B4
CONCLUSION
We have reviewed the capital adequacy and regulatory liquidity ratios disclosures in section B4 on pages 36 to 42 (the Capital Adequacy and
Liquidity Disclosures), which comprise the information that is required to be disclosed in accordance with schedule 11 of the Order.
Based on our limited assurance conclusion, which is not a reasonable assurance engagement or audit, nothing has come to our attention thatwould lead us to believe that the Capital Adequacy and Liquidity Disclosures are not, in all material respects disclosed in accordance withschedule 11 of the Order.
STANDARDS WE FOLLOWED
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (New Zealand) 3000
(Revised) Assurance Engagements other than audits or reviews of historical financial information and Standard on Assurance Engagements 3100
(Revised) Assurance Engagements on Compliance. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our conclusion. In accordance with those standards we:• used our professional judgement to plan and perform the engagement to obtain limited assurance that the Capital Adequacy and Liquidity
Disclosures are free from material misstatement and non-compliance, whether due to fraud or error;• considered relevant internal controls when designing our assurance procedures, however we do not express a conclusion on the effectiveness ofthese controls; and• ensured that the engagement team possess the appropriate knowledge, skills and professional competencies.
HOW TO INTERPRET LIMITED ASSURANCE AND MATERIAL MISSTATEMENT AND NON-COMPLIANCE
In a limited assurance engagement, the assurance practitioner performs procedures, primarily consisting of discussion and enquiries ofmanagement and others within the entity, as appropriate, and observation and walk-throughs, and evaluates the evidence obtained. The
procedures selected depend on our judgement, including identifying areas where the risk of material misstatement and non-compliance withschedule 11 of the Order is likely to arise.
The procedures performed in a limited assurance engagement vary in nature and timing from and are less in extent than for a reasonable assurance
engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would
have been obtained had a reasonable assurance engagement been performed.
Misstatements, including omissions, within the Capital Adequacy and Liquidity Disclosures and non-compliance are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the relevant decisions of the intended users taken on the basis of
the Capital Adequacy and Liquidity Disclosures.
INHERENT LIMITATIONS
Because of the inherent limitations of an assurance engagement, together with the internal control structure it is possible that fraud, error or noncompliance with compliance requirements may occur and not be detected.
USE OF THIS INDEPENDENT LIMITED ASSURANCE REPORTThis independent limited assurance report is made solely to the Bank’s shareholder. Our assurance work has been undertaken so that we might state
to the shareholder those matters we are required to state to them in the assurance report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume any responsibility to anyone other than the shareholder for our assurance work, for this independent limited
assurance report, and/or for any of the conclusions we have reached.
DIRECTOR’S RESPONSIBILITY FOR THE CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURESThe Directors are responsible for the preparation of the Capital Adequacy and Liquidity Disclosures that are required to be disclosed in accordancewith schedule 11 of the Order, which the Directors have determined to meet the needs of the recipients. This responsibility includes such internal
control as the Directors determine is necessary to enable the preparation of the Capital Adequacy and Liquidity Disclosures that are free frommaterial misstatement and non-compliance whether due to fraud or error.
OUR RESPONSIBILITY FOR THE CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURESOur responsibility is to express a conclusion on whether anything has come to our attention that the Capital Adequacy and Liquidity Disclosures
have not, in all material respects, been disclosed in accordance with schedule 11 of the Order for the six-month period ended 31 March 2024.

46

ANZ BANK NEW ZEALAND LIMITEDLIMITED ASSURANCE REPORTS

OUR INDEPENDENCE AND QUALITY CONTROL
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1 International Code of Ethics for
Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and AssuranceStandards Board, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality andprofessional behaviour.
The firm applies Professional and Ethical Standard 3 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other
Assurance or Related Services Engagements and accordingly maintains a comprehensive system of quality control including documented policies
and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our firm has also provided other services to the Banking Group in relation to review of regulatory returns, internal controls reports, prospectus
assurance, agreed upon procedures and other assurance engagements. Subject to certain restrictions, partners and employees of our firm may also
deal with the Banking Group on normal terms within the ordinary course of trading activities of the business of the Banking Group. These mattershave not impaired our independence as assurance providers of the Banking Group for this engagement. The firm has no other relationship with, orinterest in, the Banking Group.

KPMG
Auckland6 May 202447