Australia and New Zealand Banking Group Limited- New Zealand Branch
Disclosure Statement
FOR THE NINE MONTHS ENDED 30 JUNE 2013 | NUMBER 19 ISSUED AUGUST 2013

Australia and New Zealand Banking Group Limited - New Zealand Branch

Disclosure Statement
For the nine months ended 30 June 2013

Contents
General Disclosures
Income Statement
Statement of Comprehensive Income
Statement of Changes in Equity
Balance Sheet
Condensed Cash Flow Statement
Notes to the Interim Financial Statements
Directors' and New Zealand Chief Executive Officer's
Statement

2
3
3
4
5
6
7
14

Glossary of Terms
In this Disclosure Statement unless the context
otherwise requires:(a) “Bank” means ANZ Bank New Zealand Limited;(b) “Banking Group” means the Bank 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 fromNew Zealand identified and treated as if it wereconducted 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 Zealandbusiness of the Overseas Banking Group;(i) “Registered Office” is Level 10, 170-186 Featherston
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 DisclosureStatements (Overseas Incorporated Registered
Banks) Order 2013; and(m) Any term or expression which is defined in, or in themanner prescribed by, the Order shall have themeaning given in or prescribed by the Order.

Australia and New Zealand Banking Group Limited - New Zealand Branch

2

General Disclosures
This Disclosure Statement
accordance with the Order.

has

been

issuedin

Financial Statements of the Ultimate
Parent Bank and Overseas Banking
Group

The Ultimate Parent Bank has three credit ratings, which
are applicable to its long-term senior unsecured
obligations. The Ultimate Parent Bank’s credit ratings
are:Copies of the most recent publicly available financial
statements of the Ultimate Parent Bank and Overseas
Banking Group will be provided immediately, free ofcharge, to any person requesting a copy where therequest is made at the Registered Office. The mostrecent publicly available financial statements for the
Ultimate Parent Bank and Overseas Banking Group canalso be accessed at the internet address anz.com.

Credit Rating Information

Rating Agency
Standard & Poor’s

Current Credit
Rating
Qualification
AAOutlook Stable

Moody’s Investors Service

Aa2

Outlook Stable

Fitch Ratings

AA-

Outlook Stable

Guarantors
As at the date of signing of this Disclosure Statement,
no obligations of the NZ Branch are guaranteed.
New Zealand Guarantee Arrangements
Certain debt securities (“Covered Bonds”) issued by the
Bank’s wholly owned subsidiary, ANZ New Zealand(Int’l) Limited, are guaranteed by ANZNZ Covered Bond
Trust Limited (the “Covered Bond Guarantor”), solely in
its capacity as trustee of ANZNZ Covered Bond Trust.
The Covered Bond Guarantor has guaranteed thepayment of interest and principal of Covered Bonds witha carrying value as at 30 June 2013 of $3,188 million,
pursuant to a guarantee which is secured over a pool ofassets.
The Covered Bond Guarantor’s address forservice is Level 10, 141 Willis Street, Wellington, New
Zealand. The Covered Bond Guarantor is not a memberof ANZ New Zealand and has no credit ratings applicable
to its long term senior unsecured obligations payable in
New Zealand dollars. The Covered Bonds have been
assigned a long term rating of Aaa and AAA by Moody’s
Investors Service and Fitch Ratings respectively. Detailsof the pool of assets that secure this guarantee areprovided in Note 7.

Directorate
Graeme Liebelt became a director of Australia and New
Zealand Banking Group Limited on 1 July 2013. Mr
Liebelt was previously Chief Executive Officer at Orica
Limited, a leading global mining services company with
operations in more than 50 countries. He was Chief
Executive Officer between September 2005 andFebruary 2012 during a 23 year executive career with
Orica.
Mr Liebelt is currently a Director of Amcor
Limited and The Australian Foundation Investment
Company Limited.
He is Deputy Chairman of the
Melbourne Business School, a Director of Carey Baptist
Grammar School and Deputy Chairman of The Global
Foundation.

Auditor
ANZ New Zealand’s auditor
Accountants,
Level 9,10
Wellington, New Zealand.

is KPMG, Chartered
Customhouse Quay,

Australia and New Zealand Banking Group Limited - New Zealand Branch

3

Income Statement
Unaudited

Unaudited

9 months to

9 months toYear to30/06/2013

30/06/2012

30/09/2012

Interest income

4,848

4,907

6,568

Interest expense

2,890

2,876

3,859

Net interest income

1,958

2,031

2,709

Net trading gains

140

109

131

Net funds management and insurance income

176

222

298

323

359

472

6

3

4

Operating income

2,603

2,724

3,614

Operating expenses

1,153

1,268

1,743

1,450

1,456

1,871

49

151

202

1,401

1,305

1,669

371

340

404

1,030

965

1,265

Audited$ millions

Note

Other operating income2

Share of associates' profit

Profit before provision for credit impairment and income tax
Provision for credit impairment
Profit before income tax
Income tax expense
Profit after income tax

5

AuditedStatement of Comprehensive Income
Unaudited

Unaudited

9 months to

9 months toYear to30/06/2013

30/06/2012

30/09/2012

1,030

965

1,265

Actuarial gain / (loss) on defined benefit schemes

17

(2)

(25)

Income tax credit / (expense) relating to items not reclassified

(5)

-

6

Total items that will not be reclassified to profit or loss

12

(2)

(19)

Unrealised gains / (losses) recognised directly in equity

(98)

50

46

Realised gains transferred to income statement

(21)

(8)

(95)

33

(3)

-

Total items that may be reclassified subsequently to profit or loss

(86)

39

(49)

Total comprehensive income for the period

956

1,002

1,197

$ millions

Profit after income tax
Items that will not be reclassified to profit or loss

Items that may be reclassified subsequently to profit or loss

Income tax credit / (expense) relating to items that may be reclassified

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

4

Statement of Changes in Equity
Share capitaland head officeaccount

Availablefor-salerevaluation
reserve

Cash flow
hedging
reserve

Retainedearnings

Total equity

As at 1 October 2011

6,424

46

141

1,854

8,465

Profit after income tax

-

-

-

965

965

Unrealised gains recognised directly in equity

-

35

15

-

50

Realised gains transferred to the income statement

-

-

(8)

-

(8)

Actuarial loss on defined benefit schemes

-

-

-

(2)

(2)

Income tax expense on items recognised directly in equity

-

(1)

(2)

-

(3)

Total comprehensive income for the period

-

34

5

963

1,002

Ordinary dividend paid

-

-

-

(400)

(400)

Preference dividend paid

-

-

-

(85)

(85)

As at 30 June 2012 (Unaudited)

6,424

80

146

2,332

8,982

As at 1 October 2011

6,424

46

141

1,854

8,465

Profit after income tax

-

-

-

1,265

1,265

Unrealised gains recognised directly in equity

-

34

12

-

46

Realised gains transferred to the income statement

-

(83)

(12)

-

(95)

Actuarial loss on defined benefit schemes

-

-

-

(25)

(25)

Income tax credit on items recognised directly in equity

-

-

-

6

6

Total comprehensive income for the period

-

(49)

-

1,246

1,197

Ordinary dividend paid

-

-

-

(400)

(400)

Preference dividend paid

-

-

-

(85)

(85)

6,424

(3)

141

2,615

9,177

$ millions

As at 30 September 2012 (Audited)
Profit after income tax

-

-

-

1,030

1,030

Unrealised losses recognised directly in equity

-

(1)

(97)

-

(98)

Realised gains transferred to the income statement

-

-

(21)

-

(21)

Actuarial gain on defined benefit schemes
Income tax credit / (expense) on items recognised directly inequity

-

-

-

17

17

-

-

33

(5)

28

Total comprehensive income for the period

-

(1)

(85)

1,042

956

Ordinary dividend paid

-

-

-

(360)

(360)

6,424

(4)

56

3,297

9,773

As at 30 June 2013 (Unaudited)

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

5

Balance Sheet
Unaudited

Unaudited

Audited30/06/2013

30/06/2012

30/09/2012

Liquid assets

3,004

2,693

2,831

Due from other financial institutions

3,601

2,138

1,760

Trading securities

10,128

12,234

12,338Derivative financial instruments

10,88012,436

12,709

107

137

24

1,235

250

57

98,567

95,046

96,094

Investments backing insurance policy liabilities

169

158

142

Insurance policy assets

299

260

301

Investments in associates

98

100

99

671

1,361

596

$ millions

Note

AssetsCurrent tax assets
Available-for-sale assets
Net loans and advances

4

Other assets
Deferred tax assets

68

69

92

342

322

323

3,469

3,501

3,502

Total assets

132,638

130,705

130,868

Interest earning and discount bearing assets

116,470

111,689

112,783

12,862

13,88811,012

76,026

72,86673,652

10,93813,014

14,085

1,346

1,809

1,481

271

308

339

18,494

16,332

18,188Term funding

1,766

1,766

1,766

Loan capital

1,162

1,740

1,168

122,865

121,723

121,691

9,773

8,982

9,177

6,424

6,424

6,424

52

226

138

Retained earnings

3,297

2,332

2,615

Total equity and head office account

9,773

8,982

9,177

104,355

101,618

100,543

Premises and equipment
Goodwill and other intangible assets

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

Total liabilities (excluding head office account)
Net assets (excluding head office account)8

Represented by:
Share capital and head office accountReserves

Interest and discount bearing liabilities

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

6

Condensed Cash Flow Statement$ millions

Unaudited

Unaudited

9 months to

9 months to

AuditedYear to30/06/2013

30/06/2012

30/09/2012

Cash flows from operating activities
Interest received
Interest paid
Other cash inflows provided by operating activities
Other cash outflows used in operating activities
Cash flows from operating profits before changes in operating assets and liabilities

4,827

4,889

6,549

(2,874)(2,864)(3,845)

640

603

819

(1,615)(1,679)(2,009)

978

949

1,514

Net changes in operating assets and liabilities

2,910

442

(2,556)

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

3,888

1,391

(1,042)

Cash flows from investing activities
Cash inflows provided by investing activities

70

16

16

Cash outflows used in investing activities

(90)

(64)

(95)

Net cash flows used in investing activities

(20)

(48)

(79)

Cash flows from financing activities
Cash inflows provided by financing activities

1,105

2,417

5,678

Cash outflows used in financing activities(2,307)(5,750)(6,746)

Net cash flows used in financing activities(1,202)(3,333)(1,068)Net increase / (decrease) in cash and cash equivalents

2,666(1,990)(2,189)Cash and cash equivalents at beginning of the period

3,293

5,482

5,482

Cash and cash equivalents at end of the period

5,959

3,492

3,293

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

7

Notes to the Interim Financial Statements
1.

Significant Accounting Policies(i)Reporting entity and statement of compliance
These interim financial statements are for ANZ New
Zealand for the nine months ended 30 June 2013.
They have been prepared in accordance with New
Zealand Generally Accepted Accounting Practice asappropriate
forprofitoriented
entities,therequirements of NZ IAS 34 Interim Financial
Reporting, IAS 34 Interim Financial Reporting and theOrder, and should be read in conjunction with ANZ
New Zealand’s financial statements for the year
ended 30 September 2012.

(ii) Basis of measurement
These interim financial statements have been
prepared on a going concern basis in accordance withhistorical cost concepts except that the following
assets and liabilities are stated at their fair value:2.

•

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 Margin on
Services principles, and defined benefit obligations
are measured using the Projected Unit Credit method.
(iii) Changes in accounting policies
The accounting policies adopted by ANZ New Zealandare consistent with those adopted and disclosed in theprevious full year Disclosure Statement.
(iv) Presentation currency and rounding
The amounts contained in the interim financial
statements are presented in millions of New Zealanddollars, unless otherwise stated.
(v) Comparatives
Certain amounts in the comparative information havebeen reclassified to ensure consistency with thecurrent period's presentation.
This includes
reclassifying, in the Balance Sheet as at 30 June
2012, collateral received of $567 million fromderivative financial instruments asset to due to otherfinancial institutions and collateral paid of $982
million from derivative financial instruments liability
to due from other financial institutions.
(vi) Scope of consolidation
The interim financial statements of ANZ New Zealandcomprise the interim financial statements of the NZ
Branch and all the New Zealand businesses of all thesubsidiaries of the Ultimate Parent Bank (thoseentities where it is determined that the Ultimate
Parent Bank has capacity to control).

Other Operating Income
Unaudited

Unaudited

Audited9 months to

9 months toYear to30/06/2013

30/06/2012

30/09/2012

Net fee income

316

322

430

Fair value gain / (loss) on hedging activities and financial liabilities designated at fair value

(20)

22

(62)

-

-

83

27

15

21

323

359

472

$millions

Net gain on available for sale equity securities transferred to income statement
Other income
Total other operating income

Australia and New Zealand Banking Group Limited - New Zealand Branch

8

Notes to the Interim Financial Statements
3.

(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, to more complex funding arrangements withrevenue sourced from a wider range of products. UDC isprincipally involved in the financing and leasing of plant,
vehicles and equipment, mainly for small and medium
sized businesses, as well as investment products.

Segmental Analysis

For segment reporting purposes, ANZ New Zealand isorganised into four major business segments - Retail,Commercial, Wealth and Institutional. Centralised backoffice 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.
Segmental reporting has been updated to reflect minorchanges to ANZ New Zealand’s structure. Comparative
data has been adjusted to be consistent with the current
period’s segment definitions.

WealthWealth includes private banking and investment services
provided to high net worth individuals, the OnePathwealth management and insurance businesses, andother investment products.

RetailRetail provides products and services to personalcustomers via the branch network, mortgage specialists,
the contact centre and a variety of self service channels(internet banking, phone banking, ATMs, website andmobile phone banking). Core products include current
and savings accounts, unsecured lending (credit cards,
personal loans and overdrafts) and home loans securedby mortgages over property.
Retail distributes
insurance and investment products on behalf of the
Wealth segment.

Institutional
Institutional provides financial services through anumber of specialised units to large multi-banked
corporations, often global, who require sophisticatedproduct and risk management solutions. Those financial
services include loan structuring, foreign exchange,wholesale money market services and transaction
banking.

Commercial

Other

Commercial provides services to Business Banking,Commercial & Agri, and UDC customers.
Business
Banking services are offered to small enterprises

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

Business segment analysis1$ millions

RetailCommercial

External revenues

1,055

2,063

Intersegment revenues

(141)

(978)

Total revenues

914

1,085

Profit before income tax

373

721

Institutional

Other 2

Total

33

641

(1,189)

2,603

110

(168)

1,177

-

143

473

(12)

2,603

42

318

(53)

1,401

WealthUnaudited 9 months to 30/06/2013

Unaudited 9 months to 30/06/2012

External revenues

1,165

2,098

85

572

(1,196)2,724Intersegment revenues(241)(1,008)

105

(79)

1,223

-

Total revenues

924

1,090

190

493

27

2,724

Profit before income tax

367

619

80

335

(96)

1,305

Audited year to 30/09/2012

External revenues

1,531

2,790

111

769

(1,587)3,614Intersegment revenues(295)(1,331)

143

(130)

1,613

-

Total revenues

1,236

1,459

254

639

26

3,614

505

825

108

428

(197)

1,669

Profit before income tax
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 ANZ New Zealand and is reimbursed internally.

Australia and New Zealand Banking Group Limited - New Zealand Branch

9

Notes to the Interim Financial Statements
4.

Net Loans and Advances
Unaudited

Unaudited

Audited30/06/2013

30/06/2012

30/09/2012

Overdrafts

1,741

1,915

1,881

Credit card outstandings

1,442

1,408

1,395

Term loans - housing

57,811

54,66755,526

Term loans - non-housing

37,88037,57237,749Finance lease receivables

818

803

806

99,69296,36597,357(913)(1,123)(1,081)

(272)

(263)

(258)

Fair value hedge adjustment

(26)

46

34

Deferred fee revenue and expenses

(62)

(58)

(60)

Capitalised brokerage/mortgage origination fees

148

79

102

98,567

95,046

96,094Retailmortgages

Other retail
exposures

Non retail
exposures

Total

Collective provision

116

115

354

585

Individual provision

105

15

208

328

Total provision for credit impairment

221

130

562

913

Collective provision credit

(4)

(10)

(21)

(35)

Individual provision charge

17

47

20

84

Total charge to income statement

13

37

(1)

49

Collective provision

127

125

385

637

Individual provision

130

26

330

486

Total provision for credit impairment

257

151

715

1,123

Collective provision credit

(3)

(22)

(10)

(35)

Individual provision charge

27

49

110

186

Total charge to income statement

24

27

100

151

Collective provision

120

125

375

620

Individual provision

130

25

306

461

Total provision for credit impairment

250

150

681

1,081

Collective provision credit

(10)

(22)

(20)

(52)

Individual provision charge

39

55

160

254

Total charge to income statement

29

33

140

202

$ millions

Note

Gross loans and advances
Provision for credit impairment

5

Unearned finance income

Total net loans and advances

5.

Provision for Credit Impairment$ millions
Unaudited 30/06/2013

Unaudited 30/06/2012

Audited 30/09/2012

Australia and New Zealand Banking Group Limited - New Zealand Branch

10

Notes to the Interim Financial Statements
6.

Impaired and Past Due Assets
Retailmortgages

Other retail
exposures

Non retail
exposures

Total

Total impaired assets

278

40

745

1,063

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

115

51

95

261

Total impaired assets

389

45

1,067

1,501

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

120

34

92

246

Total impaired assets

352

44

1,009

1,405

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

107

33

86

226

$ millions
Unaudited 30/06/2013

Unaudited 30/06/2012

Audited 30/09/2012

7. Financial Assets Pledged as Collateral$ millions

Cash collateral given on derivative financial instruments

Unaudited

Unaudited

Audited30/06/2013

30/06/2012

30/09/2012

1,256

615

982

Trading securities encumbered through repurchase agreements

1,152

2,126

252

Residential mortgages pledged as security for covered bonds

5,529

3,909

4,977

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

2,129

2,164

2,103

Total financial assets pledged as collateral

9,425

9,181

8,588

ANZNZ Covered Bond Trust (“the Covered Bond Trust”)
Substantially all of the assets of the Covered Bond Trust are made up of certain housing loans and related securities
originated by the Bank which are security for the guarantee by ANZNZ Covered Bond Trust Limited as trustee of the
Covered Bond Trust of issuances of covered bonds by the Bank, or its wholly owned subsidiary ANZ New Zealand (Int’l)Limited, from time to time. The assets of the Covered Bond Trust are not available to creditors of the Bank, although the
Bank (or its liquidator or statutory manager) may have a claim against the residual assets of the Covered Bond Trust (ifany) after all prior ranking creditors of the Covered Bond Trust have been satisfied.
ANZ New Zealand continues to recognise the assets of the Covered Bond Trust on its balance sheet as, although they arepledged as security for covered bonds, the Bank retains substantially all the risks and rewards of ownership.

8.

Deposits and Other Borrowings$ millions

Note

Certificates of deposit

Unaudited

Unaudited

Audited30/06/2013

30/06/2012

30/09/2012

1,866

3,014

2,156

Term deposits

33,641

32,51533,922

Demand deposits bearing interest

29,04925,49025,815

5,562

4,773

4,838

1,492

1,515

1,476

4,416

5,559

5,445

76,026

72,86673,652

Unaudited

Unaudited

Audited30/06/2013

30/06/2012

30/09/2012

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

9.

7

Related Party Transactions$ millions

Total due from related parties

3,264

2,694

3,125

Total due to related parties

17,262

18,044

17,153

Australia and New Zealand Banking Group Limited - New Zealand Branch

11

Notes to the Interim Financial Statements
10. Capital Adequacy
Adoption of Basel III capital framework
Effective 1 January 2013, APRA has adopted the majority of Basel III capital reforms in Australia. The Basel III reforms
include: increased capital deductions from common equity tier 1 capital, an increase in capitalisation rates (including
prescribed minimum capital buffers, fully effective 1 January 2016), tighter requirements around new tier 1 and tier 2
securities and transitional arrangements for existing tier 1 and tier 2 securities that do not conform to the new
regulations. Other changes include capital requirements for counterparty credit risk and an increase in the asset value
correlation with respect to exposures to large and unregulated financial institutions.
Ultimate Parent Bank
(Extended Licensed Entity)

Overseas Banking Group
30/06/2013

30/06/2012

30/09/2012

31/03/2013

31/03/2012

30/09/2012

Basel III

Basel II

Basel II

Basel III

Basel II

Basel II

Common equity tier one capital

8.0%

n/a

n/a

8.4%

n/a

n/a

Tier one capital

9.5%

11.1%

10.8%

10.3%

11.8%

11.4%

11.4%

12.3%

12.2%

12.2%

12.9%

12.7%

Total capital

For calculation of minimum capital requirements under Pillar 1 (Capital Requirements) of the Basel Accord, APRA has
accredited the Overseas Banking Group to use the Advanced Internal Ratings Based ("AIRB") methodology for calculationof credit risk weighted assets and the Advanced Measurement Approach ("AMA") for the operational risk weighted asset
equivalent.
Under prudential regulations, the Overseas Banking Group is required to maintain Prudential Capital Requirements("PCRs"), which are at least equal to that specified under Basel III (previously Basel II), as determined by APRA. The
Overseas Banking Group exceeded the PCRs set by APRA as at 30 June 2013 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 30 June 2013. The
Overseas Banking Group’s Pillar 3 disclosure document for the quarter ended 30 June 2013, in accordance with APS 330:
Public Disclosure of Prudential Information, discloses capital adequacy ratios and other prudential information. This
document can be accessed at the website anz.com.
Market risk
ANZ New Zealand’s aggregate market risk exposures below have been calculated in accordance with the RBNZ document
BS2B.

ANZ New ZealandUnaudited 30/06/2013

Interest rate risk
Foreign currency risk
Equity risk

Implied risk
weighted
exposure

Aggregate
capitalcharge

$m

$m

4,077

326

14

1

3

-

4,094

327

Residential 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 exposures include
undrawn and partially drawn residential mortgage loans as well as commitments to lend. Commitments to lend are formal
offers for housing lending which have been accepted by the customer.
Unaudited 30/06/2013

On-balancesheet

Off-balance
sheet

Total

0% - 59%

19,661

3,123

22,78460% - 69%

9,095

805

9,900

70% - 79%

13,697988

14,685Less than 80%$ millions

LVR range

42,453

4,916

47,36980% - 89%

8,582

585

9,167

Over 90%

4,666

399

5,065

55,701

5,900

61,601

Total

Australia and New Zealand Banking Group Limited - New Zealand Branch

12

Notes to the Interim Financial Statements
11. 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 and includes both items classified as cash and cash equivalents and those classified as operating assets in theCondensed Cash Flow Statement.
Unaudited$ millions

Balances with central banks
Securities purchased under agreement to resell
Certificates of deposit
Government, local body stock and bonds
Government treasury bills
Other bonds
Total liquidity portfolio

30/06/2013

1,908
942
619
5,575
666
4,846
14,556

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 nine months ended 30 June 2013 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. 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 $598 million (30/06/2012: $549
million; 30/09/2012 $564 million), which is 0.5% (30/06/2012: 0.4%; 30/09/2012 0.4%) of the total consolidated assetsof ANZ New Zealand.

Australia and New Zealand Banking Group Limited - New Zealand Branch

13

Notes to the Interim Financial Statements
14. Credit Related Commitments, Guarantees and Contingent Liabilities
Face or contract value$ millions

Unaudited

Unaudited

Audited30/06/2013

30/06/2012

30/09/2012

Credit related commitments
Commitments with certain drawdown due within one year

950

933

742

Commitments to provide financial services

24,02423,85924,551

Total credit related commitments

24,974

24,792

25,293

885

755

731

46

49

44

1,054

1,016

913

81

98

117

2,066

1,918

1,805

Guarantees and contingent liabilities
Financial guarantees
Standby letters of credit
Transaction related contingent items
Trade related contingent liabilities
Total guarantees and 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
In October 2012, the Commerce Commission commenced an investigation, under the Fair Trading Act 1986, into thepromotion and sale of interest rate swaps by certain banks (including ANZ New Zealand) to rural customers. The
investigation is at an early stage and the possible outcome of the investigation cannot be determined with any certainty.
On 11 March 2013, litigation funder Litigation Lending Services (NZ) announced plans for a representative action againstbanks in New Zealand for certain fees charged to New Zealand customers over the past six years. Proceedings were filed
against the Bank on 25 June 2013. The potential outcome of this litigation cannot be determined with any certainty at thisstage.
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.

15. Additional Disclosures
NZ Branch Funding$ millions

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

Overseas Banking Group Profitability and Size
AUD millions

Unaudited

30/06/2013

14
Unaudited

31/03/2013

Profit for the six months ended 31/03/20131

2,945

Net profit after tax for the 12 months to 31/03/2013 as a percentage of average total assets

0.86%

Total assets
Percentage change in total assets in the 12 months to 31/03/2013
1

672,625
9.87%

Net profit after tax for the period includes $5 million of profit attributable to non-controlling interests.

Overseas Banking Group Asset Quality
AUD millions

Gross impaired assets

Unaudited
31/03/2013

4,685

Gross impaired assets as a percentage of total assets

0.7%

Individual provision

1,543

Individual provision as a percentage of gross impaired assets

32.9%

Collective provision

2,769

Australia and New Zealand Banking Group Limited - New Zealand Branch

Directors’ andStatement

New

Zealand

Chief

Executive

14

Officer’s

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 2013; and(ii)

The Disclosure Statement is not false or misleading.

Over the nine months ended 30 June 2013, 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 NZ Branch 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 other businessrisks, and that those systems were being properly applied.

This Disclosure Statement is dated 15 August 2013, and has been signed by the Chairman of the Ultimate
Parent Bank, on behalf of all Directors, and by the Chief Executive Officer – NZ Branch.

John MorschelChairman,on behalf of the Directors:
Dr Gregory Clark
Paula Dwyer
Peter Hay
Lee Hsien Yang
Graeme Liebelt
Ian Macfarlane, ACDavid Meiklejohn, AM
Michael Smith, OBE
Alison Watkins

Anthony Bradshaw
Chief Executive Officer – NZ Branch