ANZ National Bank Limited
Disclosure Statement
FOR THE NINE MONTHS ENDED 30 JUNE 2011 | NUMBER 62 ISSUED AUGUST 2011

ANZ National Bank Limited

General Disclosures

For the nine months ended 30 June 2011

This Disclosure Statement has been issued in accordancewith the Order.

1

Disclosure Statement

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

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

1
2
3
4
5
6
14
15

On 27 May 2011, Moody’s downgraded the Bank’s long-term
senior unsecured debt and deposit ratings from Aa2
outlook negative to Aa3 outlook stable. This followed
a similar action on the Ultimate Parent Bank and other major
Australian banks.
The Bank’s Credit Ratings are:Rating Agency

Current
Credit Rating

Qualification

Standard & Poor’s

AA

Outlook Stable

Moody’s Investors Service

Aa3

Outlook Stable

Glossary of Terms

Fitch Ratings

AA-

Outlook Positive

In this Disclosure Statement unless the context otherwise
requires:

Guarantors(a) “Bank” means ANZ National Bank Limited;(b) “Banking Group” means ANZ National Bank Limited andall its controlled entities;(c) “Immediate Parent Company” means ANZ Holdings(New Zealand) Limited;(d) “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 Zealandidentified and treated as if it were conducted by acompany 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 businessof the Overseas Banking Group;(i) “Registered Office” is Level 6, 1 Victoria Street, Wellington,
New Zealand, which is also the Banking Group’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 DisclosureStatements (New Zealand Incorporated Registered
Banks) Order (No 2) 2011; and(m) Any term or expression which is defined in, or in themanner prescribed by, the Order shall have the meaning
given in or prescribed by the Order.

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

Conditions of Registration
The conditions of registration applying to the Bank havebeen amended with effect from 30 June 2011 to updatereferences to RBNZ documents. None of the changes
change the intent of the conditions.

Directorate
Dr D T Brash resigned as a director with effect from30 April 2011. There have been no other changes todirectors since the authorisation date of the previous fullyear General Disclosure Statement on 22 November 2010.

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

ANZ National Bank Limited

Income Statement
Unaudited
9 months to
30/06/2011

Unaudited
9 months to
30/06/2010

AuditedYear to30/09/2010

Interest income

4,692

4,308

5,876

Interest expense

2,790

2,530

3,457

Net interest income

1,902

1,778

2,419

$ millions

Note

Net trading gains

197

47

39

Funds management and insurance income

202

139

218

193

387

445

Other operating income

2

1

37

42

2,495

2,388

3,163

1,303

1,137

1,565

1,192

1,251

1,598

121

392

436

1,071

859

1,162

Income tax expense

319

249

335

Profit after income tax

752

610

827

Unaudited
9 months to
30/06/2011

Unaudited
9 months to
30/06/2010

AuditedYear to30/09/2010

752

610

827

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

2

Profit before provision for credit impairment
Provision for credit impairment

6

Profit before income tax

Statement of Comprehensive Income$ millions

Profit after income tax
Unrealised gains recognised directly in equity

23

97

142

Realised (gains)/losses transferred to income statement

(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)

750

708

957

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

ANZ National Bank Limited
2–3

Statement of Changes in Equity$ millions

As at 1 October 2009

Ordinary
share
capitalAvailablefor-salerevaluation
reserveCashflowhedging
reserve

Retainedearnings

Total equity
attributableto ownersof theparententityNoncontrolling
entities

Total
equity

6,943

25

23

3,097

10,088-10,088

Profit after income tax attributable to parent

-

-

-

610

610

-

610

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

620

708

-

708

-

-

-

-

-

1

1

As at 30 June 2010 (Unaudited)

Acquired in a business combination

6,943

59

77

3,717

10,796

1

10,797As at 1 October 2009

6,943

25

23

3,097

10,088-10,088

Profit after income tax attributable to parent

-

-

-

827

827

-

827

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

845

957

-

957

Ordinary dividend paid

-

-

-

(600)

(600)

-

(600)

Acquired in a business combination

-

-

-

-

-

1

1

As at 30 September 2010 (Audited)

6,943

58

102

3,342

10,445

1

10,446

Profit after income tax attributable to parent

-

-

-

752

752

-

752

Unrealised gains recognised directly in equity

-

15

8

-

23

-

23

Realised (gains)/losses transferred
to income statement

-

(42)

7

-

(35)

-

(35)

-

-

8

8

-

8

Actuarial gain on defined benefit schemes-

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

-

8

(4)

(2)

2

-

2

Total comprehensive income for the period

-

(19)

11

758

750

-

750

Ordinary dividend paid

-

-

-

(430)

(430)

-

(430)

6,943

39

113

3,670

10,765

1

10,766As at 30 June 2011 (Unaudited)

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

ANZ National Bank Limited

Balance Sheet
Unaudited
30/06/2011

Unaudited
30/06/2010

Audited30/09/2010

Liquid assets

2,205

1,906

2,238

Due from other financial institutions

2,356

1,103

3,496

$ millions

Note

AssetsTrading securities

9,652

7,164

6,757

Derivative financial instruments

10,4399,020

10,367

352

1,778

2,151
85,913Available-for-sale assets

85,02586,072

Investments backing insurance policyholder liabilities

86

87

87

Insurance policy assets

191

129

138

Due from Immediate Parent Company

62

525

6

Shares in associates and jointly controlled entities

102

145

144

Current tax assets

75

43

25

1,043

1,055

965

173

359

312

Net loans and advances

4

Other assets
Deferred tax assets

324

307

311

3,518

3,565

3,548

Total assets

115,603113,258

116,458

Interest earning and discount bearing assets

98,79997,836

98,250

2,214

1,076

1,819

Premises and equipment
Goodwill and other intangible assets

Liabilities
Due to other financial institutions

68,46971,83970,295Derivative financial instruments

11,597

8,977

10,715

Payables and other liabilities

2,113

1,669

1,700

Provisions

320

325

315

17,727

16,207

18,761

Deposits and other borrowings

8

Bonds and notes
Loan capital

2,397

2,368

2,407

Total liabilities

104,837

102,461

106,012

Net assets

10,766

10,797

10,446

6,943

6,943

6,943

152

136

160

EquityOrdinary share capital
Reserves
Retained earnings

3,670

3,717

3,342

Parent shareholder's equity

10,765

10,796

10,4451

1

1

Total equity

10,766

10,797

10,446

Interest and discount bearing liabilities

85,87286,81586,956

Non-controlling interest

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

ANZ National Bank Limited
4–5

Condensed Cash Flow Statement$ millions

Note

Unaudited
9 months to
30/06/2011

Unaudited
9 months to
30/06/2010

AuditedYear to30/09/2010

Cash flows from operating activities
Interest received

4,607

4,133

5,636

Interest paid

(2,718)(2,555)(3,412)Other cash inflows provided by operating activities

681

734

910

Other cash outflows used in operating activities(1,456)(1,673)(2,105)

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

1,114

639

1,029

(1,930)(790)(1,775)

(816)

(151)

(746)

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

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 inflows provided by financing activities

3,867

3,098

5,481

Cash outflows used in financing activities(2,340)(4,864)(5,561)

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

1,527(1,766)(80)

685(2,261)(1,188)Cash flows from financing activities

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

13

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

3,577

4,765

4,765

4,262

2,504

3,577

ANZ National Bank Limited

Notes to the Financial Statements
1. Significant Accounting Policies(i) Reporting entity and statement of compliance
These financial statements are for the Banking Group for the 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 the Banking Group’s financial statements for the year ended 30 September 2010.
(ii) Basis of measurement
These financial statements have been prepared on a going concern basis in accordance with historical cost concepts
except that the following assets and liabilities are stated at their fair value:• derivative financial instruments, including in the case of fair value hedging, the fair value of any applicable
underlying exposure;• financial instruments held for trading;• financial assets treated as available-for-sale; and• financial instruments designated at fair value through profit and loss.
Insurance policy assets are measured using the Margin on Services basis, and defined benefit obligations are measured
using the Projected Unit Credit method.
(iii) Changes in accounting policies
The accounting policies adopted by the Banking Group are consistent with those adopted and disclosed in the previous
full year General Disclosure Statement.
(iv) Presentation currency and rounding
The amounts contained in the financial statements are presented in millions of New Zealand dollars, unlessotherwise 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
the nature of the income. Comparative data has been restated accordingly. For the period ended 30 June 2010 thisreclassification has, for the Banking Group, 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 fromdue from other financial institutions and available-for-sale assets to investments backing insurance policyholder
liabilities to better reflect the purpose the assets are held for.
(vi) Principles of consolidation
The financial statements consolidate the financial statements of the Bank and its controlled entities.

2. Operating Income and Expenses
Other operating income includes a fair value loss of $139 million (30/06/2010 $77 million gain; 30/09/2010 $52 million gain) on
the revaluation of financial assets and liabilities designated at fair value and on hedging activities. Other operating income
excluding these fair value adjustments is $330 million (30/06/2010 $310 million; 30/09/2010 $393 million).
Operating expenses include a one-off cost for the nine months ended 30 June 2011 of $147 million incurred in relation to theplanned move to a single banking technology platform and a simplified regional management structure, which is expected todeliver further operational efficiencies and improved service levels and business outcomes.

ANZ National Bank Limited
6–7

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

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

Other
Other includes treasury and back office support functions, none of which constitutes a separately reportable segment.
Business segment analysis1$ millions

Retail2

Commercial

Institutional

Other3

Total

2,495

Unaudited 9 months to 30/06/2011
External revenues

938

2,188

442

(1,073)

Intersegment revenues

91(1,138)

32

1,015

-

1,029

1,050

474

(58)

2,495

323

602

357

(211)

1,071
2,388

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

1,013

2,209

41

(875)

Intersegment revenues(203)(1,231)

440

994

-

Total revenues

810

978

481

119

2,388

Profit before income tax

61

303

395

100

859

1,311

2,976

109

(1,233)

3,163

Intersegment revenues(212)(1,629)

491

1,350

-

Total revenues

1,099

1,347

600

117

3,163

86

510

495

71

1,162

Audited year to 30/09/2010
External revenues

Profit before income tax
1
2
3

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

ANZ National Bank Limited

Notes to the Financial Statements
4. Net Loans and Advances$ millions

Note

Unaudited
30/06/2011

Unaudited
30/06/2010

Audited30/09/2010

Overdrafts

1,760

2,217

2,131

Credit card outstandings

1,392

1,400

1,388

Term loans – housing

44,46344,06343,887
39,179Term loans – non-housing

38,05439,095

Finance lease receivables

755

705

726

Gross loans and advances

86,42487,48087,311(1,198)(1,462)(1,398)

Unearned finance income

(258)

(265)

(273)

Fair value hedge adjustment

72

321

279

Deferred fee revenue and expenses

(50)

(50)

(49)

Capitalised brokerage/mortgage origination fees

35

48

43

85,02586,072

85,913

Provision for credit impairment

6

Total net loans and advances

The Bank has sold residential mortgages to the NZ Branch with a net carrying value of $9,547 million as at 30 June 2011
(30/06/2010 $9,555 million, 30/09/2010 $10,059 million). These assets qualify for derecognition as the Bank does not retain acontinuing involvement in the transferred assets.

5. Impaired and Past Due Assets$ millions

Retail Other retailmortgages exposures

Non-retail
exposures

Total

Unaudited 30/06/2011
Total individually impaired assets

494

65

1,281

1,840

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

161

39

131

331

Unaudited 30/06/2010
Total individually impaired assets

483

82

1,229

1,794

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

159

44

149

352

Total individually impaired assets

511

81

1,403

1,995

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

132

33

127

292

Audited 30/09/2010

ANZ National Bank Limited
8–9

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

Retail Other retailmortgages exposures

Non-retail
exposures

Total

Unaudited 30/06/2011
Collective provision

106

141

439

686

Individual provision

165

42

305

512

Total provision for credit impairment

271

183

744

1,198

Collective provision credit

(5)

(8)

(94)

(107)

Individual provision charge

21

62

145

228

Total charge in income statement

16

54

51

121

110

151

582

843

Unaudited 30/06/2010
Collective provision
Individual provision

211

45

363

619

Total provision for credit impairment

321

196

945

1,462

Collective provision charge/(credit)

(11)

(8)

64

45

Individual provision charge

109

92

146

347

Total charge in income statement

98

84

210

392

Audited 30/09/2010
Collective provision

111

149

533

793

Individual provision

207

51

347

605
1,398

Total provision for credit impairment

318

200

880

Collective provision charge/(credit)

(10)

(10)

15

(5)

Individual provision charge

125

120

196

441

Total charge in income statement

115

110

211

436

ANZ National Bank Limited

Notes to the Financial Statements
7. Financial Assets Pledged as Collateral
Unaudited
30/06/2011$ millions

Unaudited
30/06/2010

Audited30/09/2010

645

168

222

Total tangible assets of UDC Finance Limited pledged as collateral for secured stock

2,066

1,942

2,111

Total financial assets pledged as collateral

2,711

2,110

2,333

Unaudited
30/06/2011

Unaudited
30/06/2010

Audited30/09/2010

Trading securities encumbered through repurchase agreements

8. Deposits and Other Borrowings$ millions

Note

Certificates of deposit

2,304

3,278

3,245

Term deposits

35,29733,04934,687

Demand deposits bearing interest

20,81919,151

18,714

Deposits not bearing interest

5,046

4,675

4,964

1,583

1,371

1,378

Secured debenture stock

7

Commercial paper

3,420

10,315

7,307

Total deposits and other borrowings

68,46971,83970,295

Unaudited
30/06/2011

Unaudited
30/06/2010

Audited30/09/2010

Total due from related parties

3,273

2,580

3,969

Total due to related parties

6,971

5,768

7,286

9. Related Party Transactions$ millions

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

Unaudited
30/06/2011

Balances with central banks

1,356

Securities purchased under agreement to resell

1,882

Certificates of deposit
Government, local body stock and bonds
Government treasury bills

697
4,838
211

Other bonds

3,155

Total liquidity portfolio

12,139ANZ National Bank Limited
10 – 11

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

Tier One Capital

30/06/2011

30/06/2010

30/09/2010

9.81%

10.12%

9.68%

RBNZ minimum Tier One Capital ratio

4.00%

4.00%

4.00%

Total Capital

13.04%

13.50%

13.11%

RBNZ minimum Total Capital ratio

8.00%

8.00%

8.00%

Capital as at 30 June 2011 (Unaudited)$mTier One Capital

10,766

Less deductions from Tier One Capital(3,724)

Total Tier One Capital

7,042

Tier Two Capital

2,397

Less deductions from Tier Two Capital
Total Capital

(76)
9,363

Total required capital as at 30 June 2011 (Unaudited)$ millions

Corporate exposures

30,889

2,471

9,055

83

7

Bank exposures

9,825

1,863

149

Retail mortgage exposures

47,133

12,030

962

8,995

5,898

472

Total exposures subject to internal ratings based approach

120,292

50,763

4,061

Specialised lending exposures subject to slotting approach

7,433

7,299

584

Exposures subject to standardised approach

296

283

23

Equity exposures

180

764

61

Other exposures

2,238

745

60

Total credit risk

130,439

59,854

4,789

Operational risk

n/a

5,113

409

Market risk

n/a

3,980

318

Supervisory adjustment1

n/a

2,850

228

130,439

71,797

5,744

Total capital requirement

245,284

Sovereign exposures

Other retail exposures

1

Risk weighted
exposure or
implied risk
Exposure atweighted Total capitaldefault
exposure2 requirement

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

ANZ National Bank Limited

Notes to the Financial Statements
Pillar II capital for other material risks
The Banking Group has an Internal Capital Adequacy Assessment Process (“ICAAP”) which complies with the requirements of
the Bank’s Conditions of Registration.
Under the Banking Group’s ICAAP it identifies and measures all “other material risks”, which are those material risks that are notexplicitly captured in the calculation of the Banking Group’s tier one and total capital ratios. The other material risks identified
by the Banking Group include business risk, pension risk, insurance risk, premises and equipment risk and capitalised origination
fees risk.
The Banking Group’s internal capital allocation for these other material risks is $321 million (30/06/2010: $366 million;
30/09/2010: $401 million)
Retail mortgages by loan-to-valuation ratio (“LVR”)
As required by the RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by the Banking
Group’s valuation of the security property at origination of the exposure. Off balance sheet lending includes undrawn andpartially drawn residential mortgage loans as well as commitments to lend. Commitments to lend are formal offers for housing
lending which may or may not be accepted by the customer.
As at 30/06/2011 (Unaudited)$ millions

On-balancesheet

Off-balance
sheet

Total

0% - 59%

17,655

2,982

20,637

60% - 69%

6,990

802

7,792

70% - 79%

8,829

1,087

9,916

80% - 89%

4,572

622

5,194

LVR range

Over 90%

3,816

274

4,090

Total

41,862

5,767

47,62912. Concentrations of Credit Risk to Individual Counterparties
The Banking Group measures its concentration of credit risk in respect to bank counterparties on the basis of approved
exposures and in respect to non bank counterparties on the basis of limits. No account is taken of collateral, security and/or
netting agreements which the Banking Group may hold in respect of the various counterparty exposures.
The number of individual counterparties (excluding connected parties, governments and banks with long term credit ratingsof A- or above) where the Banking Group’s period end or peak, for the quarter ended 30 June 2011, end-of-day credit exposure
equals or exceeds 10% of equity (as at the end of the period) is:
30/06/2011
Unaudited
As atPeak forthe quarter

1

1

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

The counterparty included in the preceding table has a credit rating of at least A- for its long term senior unsecured obligations
payable in New Zealand, in New Zealand dollars.

ANZ National Bank Limited
12 – 13

Notes to the Financial Statements
13. Notes to the Condensed Cash Flow Statement$ millions

Unaudited
9 months to
30/06/2011

Unaudited
9 months to
30/06/2010

AuditedYear to30/09/2010

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

752

610

827

Non-cash items

226

476

558

(1,825)(1,279)(2,187)

31

42

56

(816)

(151)

(746)

Deferrals or accruals of past or future operating cash receipts or payments
Items classified as investing/financing
Net cash flows used in operating activities
Reconciliation of cash and cash equivalents to the balance sheet
Liquid assets

2,205

1,906

2,238

Due from other financial institutions – less than 90 days

2,057

598

1,339

Total cash and cash equivalents

4,262

2,504

3,577

14. Insurance business
The Banking Group 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 assets of the
Banking Group.

15. Credit Related Commitments and Contingent Liabilities
Face or contract value$ millions

Unaudited
30/06/2011

Unaudited
30/06/2010

Audited30/09/2010

472

582

493

Credit related commitments
Credit related commitments
Commitments with certain drawdown due within one year
Commitments to provide financial services

21,842

21,286

20,289Total credit related commitments

22,314

21,86820,782

Contingent liabilities
1,919

1,666

1,686

Standby letters of credit

51

53

60

Transaction related contingent items

921

878

898

Trade related contingent liabilities

80

97

97

2,971

2,694

2,741

Financial guarantees

Total contingent liabilities

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

16. Subsequent Events[On 12 August 2011 the Bank’s Board resolved to repay, on 15 September 2011, a subordinated loan of AUD 44 million andsubordinated fixed rate bonds of $350 million, which had original maturities of 15 September 2016.
On 12 August 2011 the Bank’s Board also resolved to pay an ordinary dividend of $270 million no later than 30 September 2011.

ANZ National Bank Limited

Directors’ Statement
As at the date on which this Disclosure Statement is signed, after due enquiry, each Director believes that:(i) The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements(New Zealand Incorporated Registered Banks) Order (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 believes that:(i) ANZ National Bank Limited has complied with all Conditions of Registration that applied during that period;(ii) Credit exposures to connected persons were not contrary to the interests of the Banking Group;(iii) ANZ National Bank Limited had systems in place to monitor and control adequately the Banking Group’s material risks,
including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk, operationalrisk and other business risks, and that those systems were being properly applied.
This Disclosure Statement is dated, and has been signed by or on behalf of all Directors of the Bank, on 12 August 2011.
On that date, the Directors of the Bank were:S C Elliott

N M T Geary, CBE

D D Hisco

J F Judge

P R Marriott

M R P Smith, OBE

Sir Dryden Spring, Kt

ANZ National Bank Limited
14 – 15

Independent Auditors’ Review Report
To the Shareholder of ANZ National Bank Limited
We have reviewed pages 2 to 13 of the interim financial statements of ANZ National Bank Limited (the ‘Bank’) and its subsidiarycompanies (the ‘Banking Group’) prepared and disclosed in accordance with the Registered Bank Disclosure Statements(New Zealand Incorporated Registered Banks) Order (No2) 2011 (the ‘Order’) and the supplementary information prescribed in
Schedules 3, 6, 8, 12, 13, 16 and 18 of the Order. The interim financial statements, and supplementary information, provide information
about the past financial performance and cash flows of the Banking Group and its financial position as at 30 June 2011.
Directors’ responsibilities
The Directors of ANZ National Bank Limited are responsible for the preparation and presentation of the Disclosure Statement,
which includes interim financial statements prepared in accordance with Clause 25 of the Order which give a true and fair viewof the financial position of the Banking Group as at 30 June 2011 and its financial performance and cash flows for the ninemonths ended on that date. The Directors are also responsible for such internal controls as they determine are necessary toenable the preparation of the Disclosure Statement that is free from material misstatement whether due to fraud or error.
They are also responsible for the preparation of supplementary information in the Disclosure Statement which fairly states thematters to which it relates in accordance with Schedules 3, 6, 8, 12, 13, 16 and 18 of the Order.
Reviewers’ responsibilities
We are responsible for reviewing the interim financial statements and the supplementary information, disclosed in accordancewith Clause 25, Schedules 3, 6, 8, 12, 13, 16 and 18 of the Order and presented to us by the Directors.
We are responsible for reviewing the interim financial statements (excluding the supplementary information) in order to report
to you whether, in our opinion on the basis of the procedures described below, anything has come to our attention that would
cause us to believe that the interim financial statements have not been prepared, in all material respects, in accordance withNew Zealand Equivalent to International Accounting Standard 34 (“NZ IAS 34”): Interim Financial Reporting and do not present
a true and fair view of the financial position of the Banking Group as at 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 to capital
adequacy) in order to report to you whether, in our opinion on the basis of the procedures described below, anything hascome to our attention that would cause us to believe that the supplementary information does not fairly state the mattersto which it relates in accordance with Schedules 6, 8, 13, 16 and 18 of the Order.
We are responsible for reviewing the supplementary information relating to capital adequacy in order to state whether, on thebasis of the procedures described below, anything has come to our attention that cause us to believe that the information
disclosed in accordance with Schedule 12 is not in all material respects prepared in accordance with the Bank’s Conditions ofRegistration and with the Bank’s internal models for credit risk and operational risk as accredited by the Reserve Bankof New Zealand and disclosed in accordance with Schedule 12.
We have performed our review in accordance with the review engagement standard RS-1 Statement of Review Engagement
Standards issued by the New Zealand Institute of Chartered Accountants. A review is limited primarily to enquiries of Banking
Group personnel and analytical review procedures applied to the financial data, and thus provides less assurance than an
audit. We have not performed an audit and, accordingly, we do not express an audit opinion.
Our firm has also provided other services to the Banking Group in relation to other audit related services. Partners andemployees of our firm may also deal with the Banking Group on normal terms within the ordinary course of trading activitiesof the business of the Banking Group. There are, however, certain restrictions on borrowings which the partners and employees
of our firm can have with the Banking Group. These matters have not impaired our independence as auditors of the Banking
Group. The firm has no other relationship with, or interest in, the Banking Group.
Review Opinion
We have examined the interim financial statements including the supplementary information and based on our review, which
is not an audit, nothing has come to our attention that causes us to believe that:a. the interim financial statements (excluding the supplementary information) have not been prepared, in all material respects,
in accordance with NZ IAS 34: Interim Financial Reporting and do not present a true and fair view of the financial positionof the Banking Group as at 30 June 2011 and its financial performance and cash flows for the nine months ended on thatdate;b. the supplementary information prescribed by Schedules 6, 8, 13, 16 and 18 of the Order does not fairly state the matters towhich it relates in accordance with those Schedules; andc. the supplementary information relating to Capital Adequacy as required by Schedule 12 of the Order, is not in all material
respects prepared in accordance with the Bank’s Conditions of Registration, with the Reserve Bank of New Zealanddocument Capital Adequacy Framework (Internal Models Based Approach) (BS2B), and with the Banking Group’s internal
models for credit risk and operational risk as accredited by the Reserve Bank of New Zealand, and disclosed in accordancewith Schedule 12 of the Order.
Our review was completed on 12 August 2011 and our review opinion is expressed as at that date.

Wellington

ANZ National Bank Limited ANZ11267 07/11

anz.co.nz