ANZ National Bank Limited
Disclosure Statement
FOR THE THREE MONTHS ENDED 31 DECEMBER 2011 | NUMBER 64 ISSUED FEBRUARY 2012

ANZ National Bank Limited

Glossary of Terms

For the three months ended 31 December 2011

In this Disclosure Statement unless the context otherwise
requires:

Contents(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
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 businessof the Overseas Banking Group;(i) “Registered Office” is Level 6, 1 Victoria Street, Wellington,
New Zealand, which is also the Banking Group’s addressfor 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 4) 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.

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

2
3
4
5
6
7
15
16

1

Disclosure Statement

ANZ National Bank Limited

General Disclosures

Conditions of Registration

This Disclosure Statement has been issued in accordancewith the Order.

The conditions of registration applying to the Bank havebeen amended with effect from 31 December 2011 to
update references to RBNZ documents, and to include a
new condition of registration that specifies both notificationand non-objection thresholds for acquisitions or businesscombinations. The Bank is required to notify the RBNZ ofintended acquisitions or business combinations that exceed
the notification threshold at least 10 working days prior to
the date that the acquisition or business combination takes
effect. Acquisitions or business combinations that exceed
the non-objection threshold also require a notice of nonobjection from the RBNZ before they may proceed.

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.
On 1 December 2011, Standard and Poor’s downgraded theBank’s long-term senior unsecured debt and deposit ratingsfrom AA outlook stable to AA- outlook stable. This followed
a similar one notch downgrade on the Ultimate Parent Bankand other major Australian banks.
On 30 January 2012, Fitch changed the Outlook on the Bank’slong-term senior unsecured debt and deposit ratings frompositive to negative. This occurred simultaneously to asimilar change in the outlook of ratings of the Ultimate
Parent Bank and other major Australian banks.
The Bank’s Credit Ratings are:
Current
Credit Rating

Qualification

Standard & Poor’s

AA-

Outlook Stable

Moody’s Investors Service

Aa3

Outlook Stable

Fitch Ratings

AA-

Outlook Negative

Rating Agency

Guarantors
As at the date of signing of this Disclosure Statement the
only material obligations of the Bank that are guaranteed
are debt securities with a carrying value as at 31 December
2011 of $2,290 million 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
with the 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 Disclosure Statement for the year ended 30 September
2011 which is available at no charge:a) on the Bank’s websites anz.co.nz and nationalbank.co.nz;
andb) within two working days of a request, if a request is
made at the Registered Office or at any branch of ANZ or
The National Bank of New Zealand.

Directorate
There have been no changes to directors since
30 September 2011, the balance date of the last full year
Disclosure Statement.

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

ANZ National Bank Limited
2–3

Income Statement
Unaudited
3 months to
31/12/2011

Unaudited
3 months to
31/12/2010

AuditedYear to30/09/2011

Interest income

1,504

1,618

6,179

Interest expense

836

982

3,620

Net interest income

668

636

2,559

Net trading gains

39

40

228

82

56

265

203

83

361

$ millions

Note

Net funds management and insurance income
Other operating income

2

-

-

2

Operating income

992

815

3,415

Operating expenses

402

418

1,686

Profit before provision for credit impairment

590

397

1,729

Share of profit of equity accounted associates and jointly controlled entities

Provision for credit impairment

40

29

178

Profit before income tax

550

368

1,551

Income tax expense

150

110

452

Profit after income tax

400

258

1,099

Unaudited
3 months to
31/12/2011

Unaudited
3 months to
31/12/2010

AuditedYear to30/09/2011

Profit after income tax

400

258

1,099

Unrealised gains / (losses) recognised directly in equity

62

(45)

72

Realised losses / (gains) transferred to income statement

(4)

14

(38)

Statement of Comprehensive Income$ millions

-

-

(64)

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

(13)

7

11

Total comprehensive income for the period

445

234

1,080

Actuarial gain / (loss) on defined benefit schemes

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

ANZ National Bank Limited

Statement of Changes in Equity
Ordinary
share
capitalAvailablefor-salerevaluation
reserve

Cash flow
hedging
reserve

Retainedearnings

Total equity
attributable toowners of theparent entity

Noncontrolling
entities

6,943

58

Total equity

102

3,342

10,445

1

10,446

Profit after income tax attributable to parent-

Valuation loss recognised in othercomprehensive income

-

-

258

258

-

258

-

(6)

(39)

-

(45)

-

(45)

Losses transferred to income statement

-

12

2

-

14

-

14

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

-

(4)

11

-

7

-

7

$ millions

As at 1 October 2010

Total comprehensive income for the period

-

2

(26)

258

234

-

234

As at 31 December 2010 (Unaudited)

6,943

60

76

3,600

10,6791

10,680As at 1 October 2010

6,943

58

102

3,342

10,445

1

10,446

Profit after income tax attributable to parent

-

-

-

1,099

1,099

-

1,099

Valuation gain recognised in othercomprehensive income

-

21

51

-

72

-

72

Losses / (gains) transferred to income statement

-

(42)

4

-

(38)

-

(38)

Actuarial loss on defined benefit schemes

-

-

-

(64)

(64)

-

(64)

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

-

9

(16)

18

11

-

11

Total comprehensive income for the period

-

(12)

39

1,053

1,080

-

1,080

Ordinary dividend paid

-

-

-

(700)

(700)

-

(700)

Movement in non-controlling interests
As at 30 September 2011 (Audited)

-

-

-

-

-

(1)

(1)

6,943

46

141

3,695

10,825-

10,825

Profit after income tax attributable to parent

-

-

-

400

400

-

400

Valuation gain recognised in othercomprehensive income

-

14

48

-

62

-

62

Gains transferred to income statement

-

-

(4)

-

(4)

-

(4)

Income tax expense on items recognised
directly in equity

-

-

(12)

(1)

(13)

-

(13)

Total comprehensive income for the period
As at 31 December 2011 (Unaudited)

-

14

32

399

445

-

445

6,943

60

173

4,094

11,270-11,270The notes to the financial statements form part of and should be read in conjunction with these financial statements

ANZ National Bank Limited
4–5

Balance Sheet$ millions

Note

Unaudited
31/12/2011

Unaudited
31/12/2010

Audited30/09/2011

AssetsLiquid assets

2,340

2,168

2,455

Due from other financial institutions

1,186

2,722

3,685

Trading securities

10,321

7,395

9,466

Derivative financial instruments

12,1398,939

14,160Current tax assets
Available-for-sale assets

-

53

-

255

1,724

411

83,51685,29883,610Investments backing insurance policyholder liabilities

116

73

97

Insurance policy assets

231

149

200

-

121

-

Net loans and advances

4

Due from Immediate Parent Company
Shares in associates and jointly controlled entities

99

144

100

Other assets

663

949

854

Deferred tax assets

88

220

139

Premises and equipment

322

316

325

3,508

3,532

3,510

Total assets

114,784

113,803

119,012Interest earning and discount bearing assets

96,76998,43598,214

Goodwill and other intangible assets

Liabilities
Due to other financial institutions
Deposits and other borrowings

8

Due to Immediate Parent Company
Derivative financial instruments
Current tax liabilities
Payables and other liabilities
Provisions
Bonds and notes

969

1,246

2,236

69,387

69,95969,23875-

174

12,524

9,624

14,174

42

-

17

1,504

1,682

2,645

278

266

309

16,734

17,951

17,406

Loan capital

2,001

2,395

1,988

Total liabilities

103,514103,123

108,187

Net assets

11,27010,68010,825

6,943

6,943

6,943

233

136

187

Represented by:
Share capital
Reserves
Retained earnings

4,094

3,600

3,695

Parent shareholder’s equity

11,27010,67910,825-

1-

Total equity

11,27010,68010,825Interest and discount bearing liabilities

83,56686,02785,728Non-controlling interests

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

ANZ National Bank Limited

Condensed Cash Flow Statement
Unaudited
3 months to
31/12/2011

Unaudited
3 months to
31/12/2010

Interest received

1,466

1,576

6,074

Interest paid

(832)

(869)

(3,573)$ millions

AuditedYear to30/09/2011

Cash flows from operating activities

Other cash inflows provided by operating activities

262

263

1,103

Other cash outflows used in operating activities

(543)

(513)

(1,828)

353

457

1,776

Net changes in operating assets and liabilities(2,098)

(907)

1,458

Net cash flows provided by / (used in) operating activities(1,745)

(450)

3,234

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

Cash flows from investing activities
Cash inflows provided by investing activities

4

-

69

Cash outflows used in investing activities

(15)

(39)

(119)

Net cash flows used in investing activities

(11)

(39)

(50)

Cash flows from financing activities
Cash inflows provided by financing activities

867

2,782

4,172

Cash outflows used in financing activities(1,725)(1,508)(4,793)

(858)

1,274

(621)

Net increase / (decrease) in cash and cash equivalents

Net cash flows provided by / (used in) financing activities(2,614)

785

2,563

Cash and cash equivalents at beginning of the period

6,140

3,577

3,577

Cash and cash equivalents at end of the period

3,526

4,362

6,140

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

ANZ National Bank Limited
6–7

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 three months ended 31 December
2011. They have been prepared in accordance withthe 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 2011.
(ii) Basis of measurement
These financial statements have been prepared on agoing concern basis in accordance with historicalcost concepts except that the following assets andliabilities are stated at their fair value:• derivative financial instruments, including in thecase 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 anddisclosed in the previous full year DisclosureStatement.
(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
Certain amounts in the comparative information
have been reclassified to ensure consistency withthe current period’s presentation. This includes
reclassifying certain investment assets that relate to
the insurance business from due from other financial
institutions and available-for-sale assets toinvestments backing insurance policyholder
liabilities to better reflect the purpose for which theassets are held.
(vi) Principles of consolidation
The financial statements consolidate the financial
statements of the Bank and its controlled entities.

2. Operating Income
Other operating income includes a fair value gain of $79
million (31/12/2010 $38 million loss; 30/09/2011 $99 million
loss) 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$124 million (31/12/2010 $121 million; 30/09/2011 $460 million).

ANZ National Bank Limited

Notes to the Financial Statements
3. Segmental Analysis

these businesses ranges from simple banking requirementswith revenue from deposit and transactional facilities, andcash flow lending, to more complex funding arrangementswith 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 sizedbusinesses, as well as investment products.

For segment reporting purposes, the Banking Group isorganised into three major business segments - Retail,Commercial and Institutional. Centralised back office andcorporate functions support these segments. Thesesegments are consistent with internal reporting provided tothe chief operating decision maker, being the Bank’s Chief
Executive Officer.

Institutional
Institutional provides financial services to large multi-banked
corporations, often global, who require sophisticatedproduct and structuring solutions. The Institutional business
unit includes the following specialised units:• Markets - provides foreign exchange, interest rate andcommodity trading and sales-related services, origination,
underwriting, structuring, risk management and sale ofcredit and derivative products globally;• Transaction Banking - provides cash management, tradefinance and international payments;• Specialised Lending - provides origination, credit analysis,
structuring and execution of specific customertransactions.

Segmental reporting has been updated to reflect minorchanges 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 andproducts. Retail contains the Banking Group’s wealthbusinesses which includes private banking and investment
services provided to high net worth individuals, the OnePathwealth management and insurance businesses, and otherinvestment products. This segment also includes otherprofit centres supporting the Retail segment.

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

Commercial
Commercial provides services to Business Banking,Commercial & Agri, and UDC customers. Business Banking
services are offered to small enterprises (typically withannual revenues of less than $5 million). Commercial & Agricustomers consist of primarily privately owned medium tolarge enterprises. The Banking Group’s relationship with

Business segment analysis1$ millions

RetailCommercial

Institutional

Other2

Total

292

711

195

(206)

992

Intersegment revenues

55

(349)

(30)

324

-

Total revenues

347

362

165

118

992

Profit before income tax

133

202

115

100

550

Unaudited 3 months to 31/12/2011
External revenues

Unaudited 3 months to 31/12/2010
External revenues

286

778

120

(369)

815

Intersegment revenues

16

(405)

30

359

-

Total revenues

302

373

150

(10)

815

Profit before income tax

83

208

115

(38)

368

1,176

2,945

613

(1,319)3,415Intersegment revenues

148(1,483)

19

1,316

-

Total revenues

1,324

1,462

632

(3)

3,415

Profit before income tax

418

827

482

(176)

1,551

Audited year to 30/09/2011
External revenues

1
2

Intersegment transfers are accounted for and determined on an arm’s length or cost recovery basis.
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
8–9

Notes to the Financial Statements
4. Net Loans and Advances
Unaudited
31/12/2011

Unaudited
31/12/2010

Audited30/09/2011

Overdrafts

1,603

1,756

1,698

Credit card outstandings

1,439

1,435

1,367

Term loans - housing

43,53943,58043,785

Term loans - non-housing

37,54639,22437,398$ millions

Note

Finance lease receivables

792

746

768

Gross loans and advances

84,91986,74185,016(1,133)(1,326)(1,156)

(260)

(272)

(256)

Provision for credit impairment

6

Unearned finance income
Fair value hedge adjustment
Deferred fee revenue and expenses

173

22

(54)

(51)

40

36

35

83,51685,29883,610Capitalised brokerage/mortgage origination fees
Total net loans and advances

7(57)

The Bank has sold residential mortgages to the NZ Branch with a net carrying value of $9,915 million as at 31 December 2011(31/12/2010 $10,336 million, 30/09/2011 $9,931 million). These assets qualify for derecognition as the Bank does not retain
a continuing involvement in the transferred assets.

5. Impaired and Past Due Assets$ millions

Retailmortgages

Other retail
exposures

Non retail
exposures

Total

Unaudited 31/12/2011
Total individually impaired assets

390

49

1,204

1,643

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

120

38

89

247

Total individually impaired assets

498

74

1,423

1,995

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

160

43

116

319

Unaudited 31/12/2010

Audited 30/09/2011
Total individually impaired assets

451

61

1,194

1,706

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

133

38

117

288

ANZ National Bank Limited

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

Retailmortgages

Other retail
exposures

Non retail
exposures

Total

116

142

390

648

Unaudited 31/12/2011
Collective provision
Individual provision

137

29

319

485

Total provision for credit impairment

253

171

709

1,133

Collective provision credit

(5)

(5)

(4)

(14)

Individual provision charge

5

12

37

54

Total charge in income statement

-

7

33

40

Collective provision

103

144

491

738

Individual provision

187

50

351

588

Total provision for credit impairment

290

194

842

1,326

Collective provision credit

(8)

(5)

(42)

(55)

Individual provision charge

3

22

59

84

Total charge in income statement

(5)

17

17

29

120

147

395

662

Unaudited 31/12/2010

Audited 30/09/2011
Collective provision
Individual provision

148

37

309

494

Total provision for credit impairment

268

184

704

1,156

Collective provision charge / (credit)

9

(2)

(138)

(131)

Individual provision charge

24

79

206

309

Total charge in income statement

33

77

68

178

ANZ National Bank Limited
10 – 11

Notes to the Financial Statements
7. Financial Assets Pledged as Collateral$ millions

Unaudited
31/12/2011

Unaudited
31/12/2010

Audited30/09/2011

Trading securities encumbered through repurchase agreements

244

99

1,219

Residential mortgages pledged as security for covered bonds

2,511

-

-

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

2,121

2,162

2,007

Total financial assets pledged as collateral

4,876

2,261

3,226

Unaudited
31/12/2011

Unaudited
31/12/2010

Audited30/09/2011

Certificates of deposit

2,690

1,843

2,454

Term deposits

32,94936,14733,799Demand deposits bearing interest

23,397

19,031

21,589

5,278

5,539

5,118

1,393

1,602

1,488

8. Deposits and Other Borrowings$ millions

Note

Deposits not bearing interest
Secured debenture stock

7

Commercial paper

3,680

5,797

4,790

Total deposits and other borrowings

69,387

69,95969,238Unaudited
31/12/2011

Unaudited
31/12/2010

Audited30/09/2011

9. Related Party Transactions$ millions

Total due from related parties

2,875

3,198

3,028

Total due to related parties

6,705

6,020

8,435

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 and includes
both items classified as cash and cash equivalents and those classified as operating assets in the Statement of Cash Flows.
Liquidity Portfolio$ millions

Unaudited
31/12/2011

Balances with central banks

1,382

Securities purchased under agreement to resell

806

Certificates of deposit

140

Government, local body stock and bonds
Government treasury bills

6,652
17

Other bonds

3,529

Total liquidity portfolio

12,526

ANZ National Bank Limited

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

31/12/2011

31/12/2010

30/09/2011

11.27%

10.05%

10.02%

RBNZ minimum Tier One Capital ratio

4.00%

4.00%

4.00%

Total Capital

14.22%

13.43%

12.74%

RBNZ minimum Total Capital ratio

8.00%

8.00%

8.00%

Exposureat default

Risk weighted
exposure or implied
risk weighted
exposure1

Total capitalrequirement

Corporate exposures

44,737

29,2302,338

Sovereign exposures

9,361

88

7

Capital as at 31 December 2011 (Unaudited)$mTier One Capital

11,270Less deductions from Tier One Capital

3,726

Total Tier One Capital

7,544

Tier Two Capital

2,001

Less deductions from Tier Two Capital
Total Capital

27
9,518

Total required capital as at 31 December 2011 (Unaudited)$ millions

Bank exposures

10,2522,066

165

Retail mortgage exposures

46,638

11,746940

Other retail exposures

8,963

5,833

467

Total exposures subject to internal ratings based approach

119,951

48,963

3,917

Specialised lending exposures subject to slotting approach

7,524

7,401

592

Exposures subject to standardised approach

268

254

20

Equity exposures

236

971

78

Other exposures

2,405

778

62

Total credit risk

130,384

58,367

4,669

Operational risk

n/a

5,088

407

Market risk
Total capital requirement

n/a

3,485

279

130,384

66,9405,355

1
Total credit risk weighted exposures include a scalar of 1.06 in accordance with the Bank’s Conditions of Registration.
The Banking Group previously recorded a Supervisory adjustment to the risk weighted exposures of its residential mortgage portfolio as required under theConditions of Registration applying at the time. Following RBNZ approval of the Bank’s mortgage capital model this Supervisory adjustment is no longer required.

ANZ National Bank Limited

Under the Banking Group’s ICAAP it identifies and measures all “other material risks”, which are those material risks thatare not explicitly 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 andcapitalised origination fees risk.
The Banking Group’s internal capital allocation for these other material risks is $368 million (31/12/2010: $332 million; 30/09/2011:$317 million).
Retail mortgages by loan-to-valuation ratio (“LVR”)
As required by the RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by the Banking
Group’s valuation of the security property at origination of the exposure. Off balance sheet exposures include undrawn andpartially drawn residential mortgage loans as well as commitments to lend. Commitments to lend are formal offers for housing
lending which may or may not be accepted by the customer.
As at 31/12/2011 (Unaudited)$ millions

On-balance sheet

Off-balance sheet

Total

0% - 59%

17,183

3,152

20,33560% - 69%

6,817

854

7,671

70% - 79%

9,159

1,141

10,30080% - 89%

4,574

633

5,207

LVR range

Over 90%

3,390

281

3,671

Total

41,123

6,061

47,184

12. 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.
For the three month period ending 31 December 2011 there were no individual counterparties (excluding connected parties,
governments and banks with long term credit ratings of A- or above) where the Banking Group’s period end or peak end-of-day
credit exposure equalled or exceeded 10% of the Banking Group’s equity (as at the end of the period).

13. Insurance business
The Banking Group conducts insurance business through companies in the OnePath Insurance Holdings (NZ) Limitedgroup. The aggregate amount of insurance business in this group comprises assets totalling $470 million (31/12/2010:$335 million; 30/09/2011 $438 million), which is 0.4% (31/12/2010: 0.3%; 30/09/2011 0.4%) of the total consolidated assetsof the Banking Group.

12 – 13

Pillar II capital for other material risks
The Banking Group has an Internal Capital Adequacy Assessment Process (“ICAAP”) which complies with the requirementsof the Bank’s Conditions of Registration.

ANZ National Bank Limited

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

Unaudited
31/12/2011

Unaudited
31/12/2010

Audited30/09/2011

Credit related commitments
655

503

527

Commitments to provide financial services

22,33921,88322,526

Total credit related commitments

22,994

22,38623,053

Commitments with certain drawdown due within one year

Contingent liabilities
1,820

1,852

1,753

Standby letters of credit

76

68

60

Transaction related contingent items

850

841

882

Trade related contingent liabilities

78

79

110

2,824

2,840

2,805

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 thesame 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
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.

15. Subsequent Events
On 2 February 2012 the Bank exercised its option to repay, on 2 March 2012, $250 million of loan capital with an original
maturity of 2 March 2017.
On 14 February 2012 the Bank’s Board resolved to pay an ordinary dividend of $550 million no later than 31 March 2012.
Work to move to a single banking platform, as announced in November 2010, is well advanced, with testing and integration
work expected to be completed later this calendar year. The Board of Directors of the Bank has approved additional expenditure
for completion of the programme of around $110 million in technology and related costs.

ANZ National Bank Limited

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 4) 2011; and(ii) The Disclosure Statement is not false or misleading.
Over the three months ended 31 December 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, operational risk
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, 17 February 2012.
On that date, the Directors of the Bank were:A J Carter

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

14 – 15

Directors’ Statement

Independent Auditors’ Review Report
To the Shareholder of ANZ National Bank Limited
We have reviewed pages 3 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 (No 4) 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 31 December 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 31 December 2011 and its financial performance and cash flows for thethree months ended on that date. The Directors are also responsible for such internal controls as they determine are necessary
to enable 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 31 December 2011 and its financial performance andcash flows for the three 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 matters towhich 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 Bank of
New Zealand and disclosed in accordance with Schedule 12 of the Order.
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.
KPMG has also provided other services to the Banking Group in relation to other audit related services. In addition, certain
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 matters have not impaired our independence as auditors of the
Banking Group. We have 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 position of
the Banking Group as at 31 December 2011 and its financial performance and cash flows for the three 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 Zealand document
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 accordance with Schedule
12 of the Order.
Our review was completed on 17 February 2012 and our review opinion is expressed as at that date.

Wellington

ANZ National Bank Limited ANZ12261 02/12

anz.co.nz