News Release
For release: 15 August 2017

ANZ New Zealand Disclosure Statement- nine months to June 2017
Australia and New Zealand Banking Group Limited (ANZ) NZ Branch Disclosure Statement
for the nine months ended 30 June 2017 was released today, showing unaudited statutory
profit of NZ$1,275 million for ANZ New Zealand1, up from NZ$1,193 million in the ninemonths ended 30 June 2016.
Unaudited cash profit 2 was up 19% at NZ$1,379 million compared with NZ$1,163 million in
the prior comparative period, due mainly to disciplined cost management and lower charges
for credit impairment.
Net interest income increased 1% reflecting continued lending growth. Net interest margins
have recently stabilised after a period of contraction caused by increased funding costs anda customer preference for fixed rate home loans.
The increase in other operating income reflected higher trading income and valuation gains
on derivatives.
Key Points

All comparisons are nine months to 30 June 2017 compared with nine months to 30 June 2016 unless otherwise noted•

Unaudited statutory profit up 7% at NZ$1,275 million.

•Unaudited cash profit up 19% at NZ$1,379 million.

•Expenses decreased 8%, or 2% adjusting for charges associated with a change to3
the application of ANZ’s software capitalisation policy announced in March 2016 ,reflecting ongoing disciplined cost management and productivity gains.

•Lower levels of credit losses reflect improvements in credit quality in the commercial
and agri portfolios, partially offset by new provisions.

•Customer deposits up 7% and gross lending up 4%.

A table of key financial information follows
For media enquiries contact:
Emma Mellow, 021 614 165

1ANZ New Zealand represents all of ANZ’s operations in New Zealand, including ANZ Bank New Zealand Limited, its
parent company ANZ Holdings (New Zealand) Limited and the New Zealand branch of ANZ.
2Statutory profit has been adjusted to exclude non-core items to arrive at cash profit, the result for the ongoing
business activities of ANZ New Zealand. All comparisons in Key Points are on a cash profit basis and refer to theprior comparative period unless otherwise stated. Refer to Summary of Key Financial Information for details ofreconciling items between cash profit and statutory profit.
3The ANZ 2016 half year results outlined the impact of a number of items referred to as “Specified Items” which
included changes to the application of the Group’s software capitalisation policy effective from 1 October 2015.

Australia and New Zealand Banking Group Limited

ABN 11 005 357 522

Summary of Key Financial Information
ANZ New Zealand
9 months 9 months
Jun 17Jun 16
NZ$m
NZ$m

Profit
Net interest income
Other operating income
Operating income
Operating expenses
Profit before credit impairment andincome tax
Credit impairment charge
Profit before income tax
Income tax expense
Cash profit

Jun 17 v Full YearJun 16
Sep 16%
NZ$m

2,298754
3,052
1,085

2,267
626
2,893
1,185

31128
159(100)

1%
20%
5%
-8%

3,029
795
3,824
1,580

1,967

1,708

259

15%

2,244

50
1,917
538

105
1,603
440(55)
314
98

-52%
20%
22%

149
2,095
566

1,379

1,163

216

19%

1,529

216

19%

1,529(64)

large

(29)

Reconciliation of cash profit to statutory profit
Cash profit
1,379
1,163
Reconciling items (net of tax):
(79)
(15)
Economic hedging volatility12

Jun 17 v
Jun 16
NZ$m(25)45(70)

large

42

Statutory profit

1,275

1,193

827%

1,542

Comprising:
RetailCommercialOperations & Support
New Zealand Businesses
Institutional
Other

751
328
3
1,082
281
16710
327
11
1,048
160
(45)

411(8)
34
121
616%
0%
-73%
3%
76%
large

941
417
3
1,361
199
(31)

Cash profit

1,379

1,163

216

19%

1,529

Reconciling items(104)

30(134)large

13

Statutory profit

1,275

1,193

82

7%

1,542

Insurance policy asset valuations

1. Economic hedging - fair value gains/(losses)
ANZ New Zealand enters into economic hedges to manage its interest rate and foreignexchange risk. Statutory profit includes volatility from fair value gains or losses on
economic hedges that are not designated in accounting hedge relationships under IFRS, aswell as ineffectiveness from designated accounting cash flow and fair value hedges. Fairvalue gains/(losses) on all of these economic hedges are excluded from cash profit, as theprofit or loss resulting from these transactions will reverse over time to match the profit orloss from the economically hedged item.
2. Insurance policy assets valuationsProfit and loss volatility is created by the remeasurement of policyholder assets forchanges in market discount rates, which over time reverses to zero.