Australia and New Zealand Banking Group Limited –New Zealand Branch
Disclosure Statement
FOR THE NINE MONTHS ENDED 30 JUNE 2011 | NUMBER 11 ISSUED AUGUST 2011Australia and New Zealand Banking Group Limited - New Zealand Branch

Disclosure Statement
For the nine months ended 30 June 2011

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

2
3
4
5
6
7
16
17

Glossary of Terms
In this Disclosure Statement unless the context otherwise requires:(a) "Bank" means ANZ National Bank Limited;(b) "Banking Group" means ANZ National Bank Limited and all its controlled entities;(c) "Immediate Parent Company" means ANZ Funds Pty Limited, which is the immediate parent company of ANZ Holdings(New Zealand) Limited;(d) "Ultimate Parent Bank" means Australia and New Zealand Banking Group Limited;(e) "Overseas Banking Group" means the worldwide operations of Australia and New Zealand Banking Group Limited
including its controlled entities;(f) “New Zealand business” means all business, operations, or undertakings conducted in or from New Zealand identified
and treated as if it were conducted by a company formed and registered in New Zealand;(g) "NZ Branch" means the New Zealand business of the Ultimate Parent Bank;(h) "ANZ New Zealand" means the New Zealand business of the Overseas Banking Group;(i) "Registered Office" is Level 6, 1 Victoria Street, Wellington, New Zealand, which is also ANZ New Zealand’s address
for Service;(j) "RBNZ" means the Reserve Bank of New Zealand;(k) "APRA" means the Australian Prudential Regulation Authority;(l) "the Order" means the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order (No2) 2011; and(m) Any term or expression which is defined in, or in the manner prescribed by, the Order shall have the meaning given inor prescribed by the Order.

Australia and New Zealand Banking Group Limited - New Zealand Branch

2

General Disclosures
This Disclosure Statement has been issued in accordance with the Order.

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

Current Credit Rating

Qualification

Standard & Poor’s

AA

Outlook Stable

Moody’s Investors Service

Aa2

Outlook Stable

Fitch Ratings

AA-

Outlook Positive

Guarantors
As at the date of signing of this Disclosure Statement, the Ultimate Parent Bank benefits from certain guarantees from theCommonwealth of Australia under:a) in the case of certain deposits and other accounts up to A$1 million, a scheme pursuant to the Banking Act 1959of the Commonwealth of Australia (the "Financial Claims Scheme"); andb) in the case of certain wholesale funding, a Deed of Guarantee executed by the Treasurer (and related scheme
rules) (the "Wholesale Funding Guarantee").
The Financial Claims Scheme presently applies to the NZ Branch, as it is a foreign branch of Australia and New Zealand
Banking Group Limited, an eligible Australian Authorised Deposit-taking Institution. From 12 October 2011, the Financial
Claims Scheme will apply to Australian dollar deposits only, and is expected to be amended more generally in relation to
its limit, scope and application. Of particular relevance to the NZ Branch, the Australian Government Treasury released a
consultation paper in May 2011 which proposes to narrow the coverage of the Financial Claims Scheme to exclude deposit
accounts of Authorised Deposit-taking Institutions that are held in foreign branches. Depending upon the outcome of theconsultation paper, such changes may take effect from October 2011, and transitional arrangements may or may not
apply.
On 31 March 2010, the Australian Government closed the Wholesale Funding Guarantee. Existing guaranteed liabilities
will continue to be guaranteed to maturity for wholesale funding and term deposits and to October 2015 for at calldeposits. The name of the Guarantor and the address for service is The Scheme Administrator, Australian Government
Guarantee Scheme for Large Deposits and Wholesale funding, c/- The Secretary, Reserve Bank of Australia, 65 Martin
Place, Sydney, New South Wales 2001, Australia.
Further information on the Financial Claims Scheme and the Wholesale Funding Guarantee is available at treasury.gov.au,
apra.gov.au, guaranteescheme.gov.au and is provided in the General Disclosure Statement for the year ended 30
September 2010 which is available at no charge:a) on ANZ New Zealand’s website anz.com; andb) within two working days of a request, if a request is at the Registered Office or at any branch of ANZ or The
National Bank of New Zealand.

Financial Statements of the Ultimate Parent Bank and Overseas Banking Group
Copies of the most recent publicly available financial statements of the Ultimate Parent Bank and Overseas Banking Groupwill be provided immediately, free of charge, to any person requesting a copy where the request is made at theRegistered Office. The most recent publicly available financial statements for the Ultimate Parent Bank and Overseas
Banking Group can also be accessed at the internet address anz.com.

Conditions of Registration
The conditions of registration applying to the NZ Branch have been amended with effect from 1 July 2011 for somewording changes, intended to clarify the meaning of the term “registered bank” in the case of overseas incorporated
banks operating in New Zealand. None of the changes change the intent of the conditions.

Directorate
Since the authorisation date of the previous full year General Disclosure Statement on 23 November 2010, there havebeen no changes to the Directors of Australia and New Zealand Banking Group Limited. On 18 April 2011 F J Brown was
appointed Chief Executive Officer of the NZ Branch to replace S R Peterson in that role.

Auditors
ANZ New Zealand’s auditors are KPMG, Chartered Accountants, Level 9, 10 Customhouse Quay, Wellington, New Zealand.

Australia and New Zealand Banking Group Limited - New Zealand Branch

3

Income Statement
Unaudited

Unaudited

9 months to

9 months toYear to30/06/2011

30/06/2010

30/09/2010

Interest income

5,115

4,745

6,447

Interest expense

3,181

2,900

3,952

Net interest income

1,934

1,845

2,495

Net trading gains

197

47

39

Funds management and insurance income

202

139

218

149

350

446

1

37

42

2,483

2,418

3,240

1,304

1,137

1,565

1,179

1,281

1,675

132

408

456

$ millions
Note

Other operating income2

Share of profit of equity accounted associates and joint ventures
Operating income
Operating expenses

2

Profit before provision for credit impairment
Provision for credit impairment
Profit before income tax

6

Audited

1,047

873

1,219

Income tax expense

312

253

352

Profit after income tax

735

620

867

AuditedStatement of Comprehensive Income
Unaudited

Unaudited

9 months to

9 months toYear to30/06/2011

30/06/2010

30/09/2010

735

620

867

23

97

142

(35)

23

9

Actuarial gain on defined benefit schemes

8

14

27

Income tax credit / (expense) on items recognised directly in equity

2

(36)

(48)

733

718

997

$ millions

Profit after income tax
Unrealised gains recognised directly in equity
Realised (gains) / losses transferred to income statement

Total comprehensive income for the period

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

4

Statement of Changes in Equity$ millions
As at 1 October 2009

Share
capital andhead officeaccount

Availablefor-salerevaluation
reserve

Cash flow
hedging
reserve

Retainedearnings

Total equity
attributableto ownersof theparententity

6,424

25

23

843

7,315

-

7,315

Noncontrolling
entities

Total equity

Profit after income tax attributable to parent

-

-

-

620

620

-

620

Unrealised gains recognised directly in equity

-

44

53

-

97

-

97

Realised losses transferred to income
statement

-

-

23

-

23

-

23

Actuarial gain on defined benefit schemes

-

-

-

14

14

-

14

Income tax expense on items recognised
directly in equity

-

(10)

(22)

(4)

(36)

-

(36)

Total comprehensive income for the period

-

34

54

630

718

-

718

Preference dividends paid

-

-

-

(441)

(441)

-

(441)

Acquired in a business combination

-

-

-

-

-

1

1

As at 30 June 2010 (Unaudited)

6,424

59

77

1,032

7,592

1

7,593

As at 1 October 2009

6,424

25

23

843

7,315

-

7,315

Profit after income tax attributable to parent

-

-

-

867

867

-

867

Unrealised gains recognised directly in equity

-

53

89

-

142

-

142

Realised (gains) / losses transferred to income
statement

-

(12)

21

-

9

-

9

Actuarial gain on defined benefit schemes

-

-

-

27

27

-

27

Income tax expense on items recognised
directly in equity

-

(8)

(31)

(9)

(48)

-

(48)

Total comprehensive income for the period

-

33

79

885

997

-

997

Preference dividends paid

-

-

-

(492)

(492)

-

(492)

Acquired in a business combination
As at 30 September 2010 (Audited)

-

-

-

-

-

1

1

6,424

58

102

1,236

7,820

1

7,821
735

Profit after income tax attributable to parent

-

-

-

735

735

-

Unrealised gains recognised directly in equity

-

15

8

-

23

-

23

Realised (gains) / losses transferred to income
statement

-

(42)

7

-

(35)

-

(35)

Actuarial gain on defined benefit schemes

-

-

-

8

8

-

8

Income tax credit / (expense) on items
recognised directly in equity

-

8

(4)

(2)

2

-

2

Total comprehensive income for the period

-

(19)

11

741

733

-

733

Ordinary dividends paid

-

-

-

(215)

(215)

-

(215)

Preference dividends paid

-

-

-

(155)

(155)

-

(155)

6,424

39

113

1,607

8,183

1

8,184

As at 30 June 2011 (Unaudited)

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

5

Balance Sheet
Unaudited

Unaudited

Audited30/06/2011

30/06/2010

30/09/2010

Liquid assets

2,205

1,907

2,239

Due from other financial institutions

2,356

1,103

3,496

Trading securities

9,652

7,164

6,757

10,594

9,085

10,854$ millions

Note

AssetsDerivative financial instruments
Available-for-sale assets
Net loans and advances

4

352

1,778

2,151

94,627

95,63796,015Investments backing insurance policyholder liabilities

86

87

87

Insurance policy assets

191

129

138

Shares in associates and jointly controlled entities

102

145

144

77

40

18

1,046

1,056

970

Deferred tax assets

162

359

304

Premises and equipment

324

307

311

3,515

3,562

3,545

Total assets

125,289

122,359

127,029

Interest earning and discount bearing assets

108,300

106,867

108,325

11,955

10,61912,293

68,46971,83970,295

11,598

9,068

10,727

1,889

1,378

1,506

320

325

315

18,711

17,40319,899Term funding

1,766

1,766

1,766

Loan capital

2,397

2,368

2,407

117,105

114,766

119,208

8,184

7,593

7,821

6,424

6,424

6,424

152

136

160

Retained earnings

1,607

1,032

1,236

Parent shareholder's equity and head office account

8,183

7,592

7,820

1

1

1

Total equity & head office account

8,184

7,593

7,821

Interest and discount bearing liabilities

98,363

99,378100,335

Current tax assets
Other assets

Goodwill and other intangible assets

Liabilities
Due to other financial institutions
Deposits and other borrowings
Derivative financial instruments
Payables and other liabilities

8

Provisions
Bonds and notes

Total liabilities (excluding head office account)
Net assets (excluding head office account)Represented by:
Share capital and head office accountReserves

Non-controlling interests

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

6

Condensed Cash Flow Statement$ millions

Note

Unaudited

Unaudited

9 months to

9 months to

AuditedYear to30/06/2011

30/06/2010

30/09/2010

Cash flows from operating activities
Interest received
Interest paid

5,038

4,577

6,217

(3,106)(2,910)(3,880)

Other cash inflows provided by operating activities
Other cash outflows used in operating activities
Cash flows from operating profits before changes in operating assets andliabilities
Net changes in operating assets and liabilities
Net cash flows used in operating activities

637

697

911

(1,458)(1,620)(2,052)

1,111

744

1,196

(2,044)(1,427)(2,504)

(933)

(683)

(1,308)13

Cash flows from investing activities
Cash inflows provided by investing activities

48

2

8

Cash outflows used in investing activities

(74)

(346)

(370)

Net cash flows used in investing activities

(26)

(344)

(362)

Cash flows from financing activities
Cash inflows provided by financing activities

3,867

3,098

5,481

(2,224)(4,332)(4,999)1,643(1,234)482

Net increase / (decrease) in cash and cash equivalents

684(2,261)(1,188)Cash and cash equivalents at beginning of the period

3,578

4,766

4,766

4,262

2,505

3,578

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

Cash and cash equivalents at end of the period

13

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

7

Notes to the Financial Statements
1. Significant Accounting Policies(i) Reporting entity and statement of compliance
These financial statements are for ANZ New Zealand for the nine months ended 30 June 2011. They have been preparedin accordance with the requirements of NZ IAS 34 Interim Financial Reporting and the Order, and should be read in
conjunction with ANZ New Zealand’s financial statements for the year ended 30 September 2010.
(ii) Basis of measurement
These financial statements have been prepared on a going concern basis in accordance with historical cost concepts
except that the following assets and liabilities are stated at their fair value:•
derivative financial instruments, including in the case of fair value hedging, the fair value of any applicable underlying
exposure;•financial instruments held for trading;•financial assets treated as available-for-sale; and•financial instruments designated at fair value through profit and loss.
Insurance policy assets are measured using the Margin on Services basis, and defined benefit obligations are measured
using the Projected Unit Credit method.
(iii) Changes in accounting policies
The accounting policies adopted by ANZ New Zealand are consistent with those adopted and disclosed in the previous fullyear General Disclosure Statement.
(iv) Presentation currency and rounding
The amounts contained in the financial statements are presented in millions of New Zealand dollars, unless otherwise
stated.
(v) Comparatives
Prior to 30 September 2010 some fee income integral to the effective interest rate of financial assets was presented inother operating income. Since that date this income has been classified to interest income, to more accurately reflect thenature of the income. Comparative data has been restated accordingly. For the period ended 30 June 2010 thisreclassification has, for ANZ New Zealand, increased interest income by $94 million and reduced other operating income
by a corresponding amount.
Certain other amounts in the comparative information have been reclassified to ensure consistency with the current
period's presentation. This includes reclassifying certain investment assets that relate to the insurance business from duefrom other financial institutions and available-for-sale assets to investments backing insurance policyholder liabilities tobetter reflect the purpose the assets are held for.
(vi) Basis of aggregation
The basis of aggregation is an addition of individual financial statements of the entities in ANZ New Zealand.
transactions between entities within ANZ New Zealand have been eliminated.

All

2. Operating Income and Expenses
Other operating income includes a fair value loss of $168 million (30/06/2010 $46 million gain; 30/09/2010 $61 million
gain) on the revaluation of financial assets and liabilities designated at fair value and on hedging activities. Other
operating income excluding these fair value adjustments is $315 million (30/06/2010 $304 million; 30/09/2010 $385
million).
Operating expenses include a one-off cost for the nine months ended 30 June 2011 of $147 million incurred in relation to
the planned move to a single banking technology platform and a simplified regional management structure, which is
expected to deliver further operational efficiencies and improved service levels and business outcomes.

Australia and New Zealand Banking Group Limited - New Zealand Branch

8

Notes to the Financial Statements
3. Segmental Analysis
For segment reporting purposes, ANZ New Zealand is organised into three major business segments - Retail, Commercial
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.
During the nine months ended 30 June 2011 a specialist Business Banking unit was created within the Commercial
segment. Segmental reporting has been updated to reflect this and other minor changes to ANZ New Zealand’s structure.
Comparative data has been adjusted to be consistent with the current period’s segment definitions.
RetailRetail provides banking products and services to individuals through separate ANZ and The National Bank of New Zealand
branded distribution channels. Personal banking customers have access to a wide range of financial services andproducts. Retail contains ANZ New Zealand's wealth businesses which includes private banking and investment services
provided to high net worth individuals, the OnePath wealth management and insurance businesses, and other investment
products. This segment also includes other profit centres supporting the Retail segment.
Commercial
Commercial provides services to Business Banking, Commercial & Agri, and UDC customers. Business Banking services
are offered to small enterprises (typically with annual revenues of less than $5 million). Commercial & Agri customers
consist of primarily privately owned medium to large enterprises. ANZ New Zealand's relationship with these businesses
ranges from simple banking requirements with revenue from deposit and transactional facilities, and cash flow lending, tomore complex funding arrangements with revenue sourced from a wider range of products. UDC is principally involved in
the financing and leasing of plant, vehicles and equipment, mainly for small and medium sized businesses, as well as
investment products.
Institutional
Institutional provides financial services to large multi-banked corporations, often global, who require sophisticated productand structuring solutions. The Institutional business unit includes the following specialised units:• Markets - provides foreign exchange, interest rate and commodity trading and sales-related services, origination,
underwriting, structuring, risk management and sale of credit and derivative products globally;• Transaction Banking - provides cash management, trade finance and international payments;• Specialised Lending - provides origination, credit analysis, structuring and execution of specific customer transactions.
Other
Other includes treasury and back office support functions, none of which constitutes a separately reportable segment.
Business segment analysis1$ millions

Retail2

Commercial

Institutional

Other 3

Total

Unaudited 9 months to 30/06/2011
External revenues

1,412

2,188

406

(1,523)

2,483

Intersegment revenues(284)(1,138)

72

1,350

-

Total revenues

1,128

1,050

478

(173)

2,483

410

602

361

(326)

1,047

Profit before income tax
Unaudited 9 months to 30/06/2010
External revenues

1,498

2,209

(3)

(1,286)2,418Intersegment revenues(543)(1,231)

486

1,288

-

Total revenues

955

978

483

2

2,418

Profit before income tax

191

303

396

(17)

873

Audited year to 30/09/2010
External revenues

1,954

2,976

53

(1,743)3,240Intersegment revenues(672)(1,629)

548

1,753

-

Total revenues

1,282

1,347

601

10

3,240

248

510

496

(35)

1,219

Profit before income tax
1
2
3

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

9

Notes to the Financial Statements
4. Net Loans and Advances
Unaudited

Unaudited

Audited30/06/2011

30/06/2010

30/09/2010

Overdrafts

1,760

2,217

2,131

Credit card outstandings

1,392

1,400

1,388

Term loans - housing

53,97853,57553,892

Term loans - non-housing

38,05439,09539,179Finance lease receivables

755

705

726

$ millions

Note

Gross loans and advances

95,93996,992

97,316(1,225)(1,483)(1,420)

(258)

(265)

(273)

Fair value hedge adjustment

180

384

386

Deferred fee revenue and expenses

(51)

(51)

(50)

42

60

56

94,627

95,63796,015

Provision for credit impairment

6

Unearned finance income

Capitalised brokerage/mortgage origination fees
Total net loans and advances

5. Impaired and Past Due Assets$ millions

RetailOther retail

Non retailmortgages

exposures

exposures

Total

Total individually impaired assets

560

65

1,281

1,906

Loans that are at least 90 days past due but not impaired

184

39

131

354

Total individually impaired assets

513

82

1,229

1,824

Loans that are at least 90 days past due but not impaired

182

44

149

375

Total individually impaired assets

554

81

1,403

2,038

Loans that are at least 90 days past due but not impaired

153

33

127

313

Unaudited 30/06/2011

Unaudited 30/06/2010

Audited 30/09/2010

Australia and New Zealand Banking Group Limited - New Zealand Branch

10

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

RetailOther retail

Non retailmortgages

exposures

exposures

Total

Collective provision

117

141

439

697

Individual provision

181

42

305

528

Total provision for credit impairment

298

183

744

1,225

Collective provision credit

(5)

(8)

(94)

(107)

Individual provision charge

32

62

145

239

Total charge in income statement

27

54

51

132

Collective provision

121

151

582

854

Individual provision

221

45

363

629

Total provision for credit impairment

342

196

945

1,483

Unaudited 30/06/2011

Unaudited 30/06/2010

Collective provision charge / (credit)

(6)

(8)

64

50

Individual provision charge

120

92

146

358

Total charge in income statement

114

84

210

408

Collective provision

122

149

533

804

Individual provision

218

50

348

616

Total provision for credit impairment

340

199

881

1,420

Audited 30/09/2010

Collective provision charge / (credit)

(5)

(10)

15

-

Individual provision charge

139

120

197

456

Total charge in income statement

134

110

212

456

7. Financial Assets Pledged as Collateral$ millions

Unaudited

Unaudited

Audited30/06/2011

30/06/2010

30/09/2010

Trading securities encumbered through repurchase agreements
Total tangible assets of UDC Finance Limited pledged as collateral for secured
stock

645

168

222

2,066

1,942

2,111

Total financial assets pledged as collateral

2,711

2,110

2,333

8. Deposits and Other Borrowings$ millions

Note

Certificates of deposit

Unaudited

Unaudited

Audited30/06/2011

30/06/2010

30/09/2010

2,304

3,278

3,245

Term deposits

35,29733,04934,687

Demand deposits bearing interest

20,81919,151

18,714

5,046

4,675

4,964

1,583

1,371

1,378

3,420

10,315

7,307

68,46971,83970,295

Deposits not bearing interest
Secured debenture stock
Commercial paper
Total deposits and other borrowings

7

9. Related Party Transactions
Unaudited

Unaudited

Audited30/06/2011

30/06/2010

30/09/2010

Total due from related parties

3,366

2,126

4,451

Total due to related parties

18,234

16,877

19,303

Australia and New Zealand Banking Group Limited - New Zealand Branch

11

Notes to the Financial Statements
10. Liquidity Portfolio
ANZ New Zealand holds a diversified portfolio of cash and high quality liquid securities to support liquidity risk
management. The size of ANZ New Zealand’s liquidity portfolio is based on the amount required to meet its liquidity
policy.
Liquidity Portfolio
Unaudited$ millions

30/06/2011

Balances with central banks

1,356

Securities purchased under agreement to resell

1,882

Certificates of deposit

697

Government, local body stock and bonds

4,838

Government treasury bills

211

Other bonds

3,155

Total liquidity portfolio

12,139

11. Capital Adequacy
Overseas Banking Group Basel II capital adequacy ratio (unaudited)
Ultimate Parent Bank
(Extended Licensed Entity)

Overseas Banking Group
30/06/2011

30/06/2010

30/09/2010

31/03/2011

31/03/2010

30/09/2010

Tier One Capital

10.6%

10.3%

10.1%

11.4%

11.9%

11.0%

Total Capital

11.8%

12.6%

11.9%

12.6%

13.7%

12.3%

For calculation of minimum capital requirements under Pillar I of the Basel II Accord, APRA has accredited the Overseas
Banking Group to use the Advanced Internal Ratings Based ("AIRB") methodology for calculation of credit risk weighted
assets and the Advanced Measurement Approach ("AMA") for the operational risk weighted asset equivalent.
Under prudential regulations, the Ultimate Parent Bank is required to hold a minimum Prudential Capital Ratio ("PCR") as
determined by APRA. The Overseas Banking Group exceeded the minimum capital adequacy requirements set by APRA as
at 30 June 2011 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar III financial information as at 30 June 2011. The
Overseas Banking Group's Basel II Pillar 3 Disclosure document for the nine months ended to 30 June 2011, in accordancewith APS 330, discloses capital adequacy ratios calculated under the Basel II methodology. These documents can beaccessed at the website anz.com.
Risk weighted credit risk exposures
Risk weighted exposures for ANZ New Zealand and NZ Branch have been derived in accordance with the RBNZ document
entitled 'Capital Adequacy Framework (Basel I Approach)' ("BS2") dated June 2011. The credit equivalent amounts formarket related contracts are calculated using the current exposure method.

Australia and New Zealand Banking Group Limited - New Zealand Branch

12

Notes to the Financial Statements
Total Risk Weighted Exposures of ANZ New Zealand as at 30 June 2011 (Unaudited)
Principal
amountOn-balance sheet exposures

Risk weight

Risk weighted
exposure$m$mCash and short term claims on Government

2,988

0%

-

Long term claims on Government

6,077

10%

608

Claims on banks

4,700

20%

940

746

20%

149

Residential mortgages

53,48850%

26,744

Other

43,181

100%

43,181

Non risk weighted assets

14,109n/a-Claims on public sector entities

Total on balance sheet exposures

125,289

71,622Creditconversion
factorCreditequivalentamountAveragecounterparty Risk weighted
risk weight
exposure

1,970

100%

1,970

42%

831

Commitments with certain drawdown

472

100%

472

62%

291

Transaction related contingent items

687

50%

344

67%

231

80

20%

16

100%

16

5,164

50%

2,582

100%

2,582

16,581

0%

-

n/a

-

Off-balance sheet exposures

Principal
amount$m

Direct credit substitutes

Short term, self liquidating trade related contingencies
Other commitments to provide financial services whichhave an original maturity of 1 year or more
Other commitments with an original maturity of lessthan 1 year or which can be unconditionally cancelled
at any time$m$mMarket related contracts- Foreign exchange

163,774

8,827

22%

1,951

- Interest rate

609,522

8,556

23%

1,986

189

29

34%

10

798,439

22,796- Other
Total off balance sheet exposures

7,898

Total on and off balance sheet
exposures

79,520Market risk
The aggregate market risk exposures below have been calculated in accordance with the RBNZ document ‘Capital
Adequacy Framework (Standardised Approach)’ dated June 2011 (“BS2A”).
The peak end-of-day market risk exposures for the period are calculated separately for each category of exposure andmay not have occurred at the same time.

Implied risk weighted
exposure

Aggregate capital charge

Unaudited

As at

Peak

As at

Peak

30/06/2011

$m

$m

$m

$m

Interest rate risk

3,818

4,232

305

339

Foreign currency risk

43

67

3

5

Equity risk

79

80

6

6

3,940

314

Australia and New Zealand Banking Group Limited - New Zealand Branch

13

Notes to the Financial Statements
Retail mortgages by loan-to-valuation ratio (“LVR”)
As required by the RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by ANZ
New Zealand's valuation of the security property at origination of the exposure. Off balance sheet lending includes
undrawn and partially drawn residential mortgage loans as well as commitments to lend. Commitments to lend are formal
offers for housing lending which may or may not be accepted by the customer.
Retail mortgages by LVR for ANZ New Zealand as at 30 June 2011 (Unaudited)On-balancesheet

Off-balance
sheet

Total

0% - 80%

39,981

4,959

44,94080% - 90%

6,425

626

7,051

Over 90%

4,926

275

5,201

51,332

5,860

57,192$ millions

LVR range

Total

12. Concentrations of Credit Risk to Individual Counterparties
ANZ New Zealand measures its concentration of credit risk in respect to bank counterparties on the basis of approved
exposures and in respect to non-bank counterparties on the basis of limits.
For the three month period ending 30 June 2011 there were no individual counterparties (excluding connected parties,
governments and banks with long term credit ratings of A- or above) where ANZ New Zealand’s period end or peak endof-day credit exposure equalled or exceeded 10% of the Overseas Banking Group’s equity (as at the end of the period).
This credit exposure information does not include exposures to counterparties if they are booked outside New Zealand.

13. Notes to the Condensed Cash Flow Statement$ millions

Unaudited

Unaudited

9 months to

9 months to

AuditedYear to30/06/2011

30/06/2010

30/09/2010

867

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

735

620

Non-cash items

245

499

588

(1,944)(1,844)(2,819)

31

42

56

(933)

(683)

(1,308)Deferrals or accruals of past or future operating cash receipts or payments
Items classified as investing/financing
Net cash flows used in operating activities

Unaudited

Unaudited

Audited30/06/2011

30/06/2010

30/09/2010

Liquid assets

2,205

1,907

2,239

Due from other financial institutions - less than 90 days

2,057

598

1,339

Total cash and cash equivalents

4,262

2,505

3,578

$ millions

Reconciliation of cash and cash equivalents to the balance sheet

14. Insurance business
ANZ New Zealand conducts insurance business through companies in the OnePath Insurance Holdings (NZ) Limited group.
The aggregate amount of insurance business in this group comprises assets totalling $390 million (30/06/2010: $349
million; 30/09/2010 $337 million), which is 0.3% (30/06/2010: 0.3%; 30/09/2010 0.3%) of the total consolidated assetsof ANZ New Zealand.

Australia and New Zealand Banking Group Limited - New Zealand Branch

14

Notes to the Financial Statements
15. Credit Related Commitments and Contingent Liabilities
Face or contract value$ millions

Unaudited

Unaudited

Audited30/06/2011

30/06/2010

30/09/2010

Credit related commitments
Commitments with certain drawdown due within one year

472

582

493

Commitments to provide financial services

21,74521,327

20,352

Total credit related commitments

22,217

21,90920,845

1,919

1,666

1,686

51

53

60

Transaction related contingent items

921

878

898

Trade related contingent liabilities

80

97

97

2,971

2,694

2,741

Contingent liabilities
Financial guarantees
Standby letters of credit

Total contingent liabilities

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

16. Additional Disclosures
NZ Branch Funding
Unaudited$ millions

Total liabilities of the NZ Branch less amounts due to related parties

30/06/201164

Overseas Banking Group Profitability and Size
Unaudited
AUD millions

31/03/2011

Net profit after tax for the 6 months ended 31/03/2011

2,669

Net profit after tax for the 12 months ended 31/03/2011 as a percentage of average total assets

1.0%

Total assets as at 31/03/2011
Percentage change in total assets in the 12 months ended 31/03/2011

537,478
6.1%

Overseas Banking Group asset quality
Unaudited
AUD millions

Gross impaired assets

31/03/2011

6,221

Gross impaired assets as a percentage of total assets

1.2%

Total individually assessed provisions for impairment

1,717

Individually assessed provisions for impairment as a percentage of gross impaired assets

27.6%

Collective provision for credit impairment

3,177

Australia and New Zealand Banking Group Limited - New Zealand Branch

15

Notes to the Financial Statements
17. Subsequent Events
On 12 August 2011 the Bank’s Board resolved to repay, on 15 September 2011, a subordinated loan of AUD 44 million
and subordinated fixed rate bonds of $350 million, which had original maturities of 15 September 2016.

Australia and New Zealand Banking Group Limited - New Zealand Branch

16

Directors’ and New Zealand Chief Executive Officer’s
Statement
As at the date on which this Disclosure Statement is signed, after due enquiry, each Director of the Ultimate Parent Bankand the Chief Executive Officer – NZ Branch believes, that:(i)

The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements(Overseas Incorporated Registered Banks) Order (No 2) 2011;(ii)

The Disclosure Statement is not false or misleading.

Over the nine months ended 30 June 2011, after due enquiry, each Director of the Ultimate Parent Bank and the Chief
Executive Officer – NZ Branch believes that:(i)

The Ultimate Parent Bank has complied with all Conditions of Registration that applied during that period;(ii)

The Ultimate Parent Bank had systems in place to monitor and control adequately ANZ New Zealand’s material risks,
including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and otherbusiness risks, and that those systems were being properly applied.

This Disclosure Statement is dated 18 August 2011, and has been signed by the Chairman of the Ultimate
Parent Bank, as agent for all Directors, and by the Chief Executive Officer – NZ Branch.

J P MorschelChairmanF J Brown
Chief Executive Officer – NZ BranchIndependent Auditors’ Review Report
To the Directors of Australia and New Zealand Banking Group Limited - New Zealand Branch
We have reviewed pages 3 to 15 of the interim financial statements of Australia and New Zealand Banking Group
Limited – New Zealand Branch and its related entities („ANZ New Zealand‟) prepared and disclosed in accordance with
the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order (No 2) 2011 (the „Order‟)and the supplementary information prescribed in Schedules 3, 6, 8, 9, 10, 12 and 14 of the Order. The interim financial
statements, and supplementary information, provide information about the past financial performance and cash flows of
ANZ New Zealand and its financial position as at 30 June 2011.
Directors’ responsibilities
The Directors of Australia and New Zealand Banking Group Limited - New Zealand Branch are responsible for the
preparation and presentation of the Disclosure Statement, which includes interim financial statements prepared inaccordance with Clause 26 of the Order which give a true and fair view of the financial position of ANZ New Zealandas at 30 June 2011 and its financial performance and cash flows for the nine months ended on that date. The Directors
are also responsible for such internal controls as the Directors determine are necessary to enable the preparation of theDisclosure Statement that is free from material misstatement, whether due to fraud or error.
They are also responsible for the preparation of supplementary information in the Disclosure Statement which fairly
states the matters to which it relates in accordance with Schedules 3, 6, 8, 9, 10, 12 and 14 of the Order.
Reviewers’ responsibilities
We are responsible for reviewing the interim financial statements and the supplementary information, disclosed inaccordance with Schedules 3, 6, 8, 9, 10, 12 and 14 of the Order and presented to us by the Directors.
We are responsible for reviewing the interim financial statements (excluding the supplementary information) in orderto report to you whether, in our opinion on the basis of the procedures described below, anything has come to ourattention that would cause us to believe that the interim financial statements have not been prepared, in all material
respects, in accordance with New Zealand Equivalent to International Accounting Standard 34 (“NZ IAS 34”):
Interim Financial Reporting and do not present a true and fair view of the financial position of ANZ New Zealand as
at 30 June 2011 and its financial performance and cash flows for the nine months ended on that date.
We are responsible for reviewing the supplementary information (excluding the supplementary information relating tocapital adequacy) in order to report to you whether, in our opinion on the basis of the procedures described below,
anything has come to our attention that would cause us to believe that the supplementary information does not fairly
state the matters to which it relates in accordance with Schedules 6, 8, 10, 12 and 14 of the Order.
We are responsible for reviewing the supplementary information relating to credit and market risk exposures andcapital adequacy in order to state whether, on the basis of the procedures described below, anything has come to ourattention that would cause us to believe that the information disclosed in accordance with Schedule 9 is not in allmaterial respects prepared in accordance with the Capital Adequacy Framework (Basel I Approach) (BS2) and Capital
Adequacy Framework (Standardised Approach) (BS2A); and disclosed in accordance with Schedule 9.
We have performed our review in accordance with the review engagement standard RS-1 Statement of Review
Engagement Standards issued by the New Zealand Institute of Chartered Accountants. A review is limited primarily toenquiries of ANZ New Zealand personnel and analytical review procedures applied to the financial data, and thus
provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit
opinion.
Our firm has also provided other services to ANZ New Zealand in relation to other audit related services. Partners andemployees of our firm may also deal with ANZ New Zealand on normal terms within the ordinary course of trading
activities of the business of ANZ New Zealand. There are, however, certain restrictions on borrowings which thepartners and employees of our firm can have with ANZ New Zealand. These matters have not impaired our
independence as auditors of ANZ New Zealand. The firm has no other relationship with, or interest in, ANZ New
Zealand.

Review Opinion
We have examined the interim financial statements including the supplementary information and based on our review,which is not an audit, nothing has come to our attention that causes us to believe that:a.

the interim financial statements (excluding the supplementary information) have not been prepared, in allmaterial respects, in accordance with NZ IAS 34: Interim Financial Reporting and do not present a true and fairview of the financial position of ANZ New Zealand as at 30 June 2011 and its financial performance and cash
flows for the nine months ended on that date;b.

the supplementary information prescribed by Schedules 6, 8, 10, 12 and 14 of the Order does not fairly state thematters to which it relates in accordance with those Schedules; andc.

the supplementary information relating to credit and market risk exposures and capital adequacy prescribed by
Schedule 9 of the Order, is not in all material respects prepared in accordance with Capital Adequacy
Framework (Basel 1 Approach) (BS2) and Capital Adequacy Framework (Standardised Approach) (BS2A), anddisclosed in accordance with Schedule 9 of the Order.

Our review was completed on 18 August 2011 and our review opinion is expressed as at that date.

Wellington