Corporate Affairs
Level 24, ANZ Centre
23-29 Albert Street, Auckland City
Telephone 09 374 4051
Facsimile 09 374 6160

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MEDIA RELEASE

www.anznational.co.nz

For Release Friday 6 March 2009

ANZ National General Disclosure Statement
December Quarter profit NZ$210 million
Wellington: ANZ National Bank today released its General Disclosure Statement for the threemonths ended 31 December 2008 and announced a profit after tax of NZ$210 million.
December Quarter GDS Key Points•ANZ National’s underlying business is proving resilient despite the challenges posed bythe deterioration in both the global and domestic economic environment.

•

Underlying core profit after tax was $311 million, up 4% compared to $300 million for
the December 2007 quarter.

•Headline net profit after tax of NZ$210 million (compared to $310 million for December
2007 quarter).

•Post balance date charge of $161 million ($113 million after tax) taken against revenue
relating to ANZ National’s 49% share of costs associated with a recent offer to investors
in two of ING New Zealand’s frozen funds.

•Provision for credit impairment charge of $94 million, up from historically low levels ($32million for the December 2007 quarter) and in line within expectations for this stage ofthe economic cycle.

•The bank retains good liquidity levels and remains well capitalised with tier one capital of
8.19% and total capital of 11.68%, both well above the regulatory minimum ratios of 4%
and 8% respectively.

ANZ National is a subsidiary of Australia and New Zealand Banking Group Limited (ANZ). At
its trading update on 26 February 2009 covering the four months to January 2009*, ANZ
made the following comments on business performance in New Zealand:
In New Zealand, volume growth has been flat and margins under pressure due tohigher wholesale funding costs, competition for deposits and break costs on
mortgages as customers take advantage of lower interest rates. [This has particularly
affected the Retail business]. Costs are being well controlled but increased credit
provisions will drive a reduction in earnings in New Zealand in 2009.
The New Zealand economy has contracted sharply with delinquencies subsequently
rising strongly off an historically low base but within expectations. It is anticipatedthat provisions could approach double those of last year (FY08 NZ$286 million)..
Unsecured lending delinquencies, including credit cards, have increased as expectedin this part of the cycle, however tight control measures are in place.

[additional comments]* Please note: this relates to a different reporting period to this GDS as required by the RBNZ.

ANZ National Bank Limited

For personal use only

New Zealand customers moving out of fixed rate home loans this year (fixed ratehome loans account for around 80% of mortgage lending) will benefit from a circa 2%
reduction in mortgage rates compared to 2006. The decline in the New Zealand
Dollar has provided some buffer to the impact of falling commodity prices and lower
export demand.
[The New Zealand Markets business] has achieved record income based on thevolatile conditions and customers flows.
Commenting on the release of the General Disclosure Statement today, ANZ National Chief
Executive Officer Graham Hodges said: “ANZ National remains sound and well-capitalisedwith a strong balance sheet, and we are getting on with the sensible steps to navigate
through a difficult environment.”

Reconciliation of underlying core profit
3 months ended 31 December 2008
3 months to
Dec 08 ($m)

3 months to
Dec 07 ($m)%
GrowthNet interest income
Other external operating income

601
313

570
251

25%

Operating income

914

821

11%

Operating expenses

380

350

9%

Profit before provisioning
Provision for credit impairment

534
94

471
3213%
Large

Profit before income tax
Income tax expense

440
129

439
139-7%

Underlying core profit

311

300

4%

14(2)
(113)

10-(101)

10210

310

Non core items:
Economic hedging - fair value gains/losses
Organisational transformation costs
ING (NZ) frozen funds
Headline net profit after tax

For media inquiries contact:
Virginia Stracey-Clitherow
ANZ National Bank
Tel: 09-3744 051 or 0275-618 995.

5%-