For personal use only

Australia and New Zealand Banking Group Limited
New Zealand Branch

Key Information Summary
For the six months ended
31 March 2009
No. 2 Issued June 2009Australia and New Zealand Banking
Group Limited, New Zealand Branch
Key Information Summary for the six months ended 31 March 2009

Introductory Information

For personal use only

> The purpose of this Key Information Summary is to provide customers
and potential customers with information about the financial conditionof their bank.
> The information contained in the Key Information Summary is explained inthe Reserve Bank publication “Your Bank’s Disclosure Statement – What’s
In It For You?”, which can be obtained from the Reserve Bank.
> In this Key Information Summary, reference is made to the following:– ‘Overseas Banking Group’ refers to the worldwide operations of Australiaand New Zealand Banking Group Limited including its controlledentities– ‘Overseas Bank’ or ‘Ultimate Parent Bank’ refers to the worldwide
operations of Australia and New Zealand Banking Group Limited
excluding its controlled entities– ‘NZ Banking Group’ refers to the aggregated New Zealand operationsof Australia and New Zealand Banking Group Limited, including thoseoperations conducted through the NZ Branch and controlled entities of
the Overseas Bank registered in New Zealand– ‘NZ Branch’ or ‘Registered Bank’ refers to the New Zealand operations of
the Overseas Bank, as conducted through the NZ Branch.

Corporate Information> The full name of the Overseas Bank is Australia and New Zealand Banking
Group Limited. Australia and New Zealand Banking Group Limited is acompany registered and domiciled in Victoria, Australia.

Credit Rating> The Overseas Bank has three current credit ratings, issued by Standard andPoor’s, Moody’s Investors Service and Fitch Ratings, which are applicable toits long term senior unsecured obligations, including obligations payable in
New Zealand in New Zealand dollars.

> During the two-year period ended 31 March 2009, the Standard and Poor’s
credit rating and qualification remained at AA and Outlook Stable.
> During the two-year period ended 31 March 2009, the Moody’s InvestorsService credit rating and qualification changed from Aa3 Outlook Stable toAa1 Outlook Stable on 4 May 2007. On 2 March 2009 the Outlook changed
from Stable to Negative.
> During the two-year period ended 31 March 2009, the Fitch Ratings credit
rating and qualification remained at AA- and Outlook Stable. Fitch Ratings
were formally engaged by the Overseas Bank on 18 March 2009 to provide
credit rating services. Previously Fitch Ratings had rated the Overseas Bankon an unsolicited basis as AA-.

Australia and New Zealand Banking Group Limited, New Zealand Branch
Key Information Summary for the six months ended 31 March 2009

Government Guarantees> The NZ Branch does not have a guarantee under the New Zealand Deposit Guarantee Scheme or the New Zealand Wholesale Funding Guarantee Facility as at 26 May 2009.

For personal use only

> The Overseas Bank has a guarantee under the Financial Claims Scheme (“FCS”). This scheme provides for an Australian government guarantee of “protected accounts”
up to A$1million in the winding up of the Overseas Bank. In addition, certain deposits of the Overseas Bank are guaranteed for amounts over A$1million, andcertain wholesale term funding liabilities of the Overseas Bank are guaranteed under the Australian Government Guarantee Scheme for Large Deposits and Wholesale
Funding (“Wholesale Funding Guarantee”). Both the FCS and Wholesale Funding Guarantee apply to the Registered Bank, as a branch of the Overseas Bank. Further
information about the FCS is available from the Australian Treasury www.treasury.gov.au. Further information about the Wholesale Guarantee Scheme is available fromthe Australian Government www.guaranteescheme.com.au. Additional information on each guarantee scheme is available in the NZ Branch’s most recent General
Disclosure Statement and Supplemental Disclosure Statement.

OVERSEAS BANKING GROUPNEW ZEALAND BANKING GROUP

Unaudited
31/03/2009
A$m

Unaudited
31/03/2008
A$m

Unaudited
31/03/2009
NZ$m

Unaudited
31/03/2008
NZ$mProfitability
Net profit after tax for the six months ended 31 March

1,417

1,963

422609Net profit after tax for the year ended 31 March as a percentageof average total assets

0.6%

1.0%

0.7%

0.6%

Size - as at 31 March
Total assets

502,798437,759

132,972

112,575

The percentage increase in total assets from 1 April to 31 March

14.9%

24.4%

18.1%

4.6%

Asset Quality - as at 31 March
Total impaired assets (on-balance sheet and off-balance sheet)

4,141

1,114

620

177

Total impaired assets as a percentage of total assets

0.8%

0.3%

0.5%0.2%

Total individual provisions

1,341

316

269

51

Total individual provisions as a percentage of total impaired assets

32.4%

28.4%

43.4%

28.8%

Total collective provisions

2,742

2,340

610

471----

Non-financial assets acquired through the enforcement of security

OVERSEAS BANKING GROUP
Unaudited
31/03/2009%

Unaudited
31/03/2008%

OVERSEAS BANK(EXTENDED LICENSED ENTITY)
Unaudited
31/03/2009%

Unaudited
31/03/2008%

Capital Adequacy - as at 31 March
Tier One Capital as a percentage of risk weighted exposures

8.2%

6.9%

9.0%

8.1%

Total Capital as a percentage of risk weighted exposures

11.0%

10.1%

11.5%

11.7%

For calculation of minimum capital requirements under Pillar I of the Basel II Accord, the Overseas Banking Group has been accredited by the Australian PrudentialRegulation Authority (APRA) to use the Advanced Internal Ratings Based (AIRB) methodology for calculation of credit risk weighted assets and the Advanced Measurement
Approach (AMA) for the operational risk weighted asset equivalent. The Basel II Accord came into effect from 1 January 2008. The Overseas Banking Group, and theOverseas Bank (Extended Licensed Entity) (as defined by APRA), exceeded the minimum capital adequacy requirements as specified by APRA as at 31 March 2009 and31 March 2008. APRA specifies a minimum prudential capital ratio for the Overseas Banking Group, which is not made publicly available.

Australia and New Zealand Banking Group Limited, New Zealand Branch
Key Information Summary for the six months ended 31 March 2009

Peak Credit Exposure Concentrations – for the threemonths ended 31 MarchFor personal use only

For the three months ended 31 March 2009, the NZ Banking Group had no peakend-of-day credit exposures, on the basis of limits, to any bank or non-bankcounterparties, equal to or in excess of 10% of the Overseas Banking Group’sequity (31 March 2008: nil). The peak end-of-day exposures have been calculatedusing the Overseas Banking Group’s equity as at 31 March 2009. The equity usedin calculating the comparatives was as at 31 March 2008. These calculations
exclude credit exposures to the central government of any country with a longterm credit rating of A- or A3 or above, or its equivalent.

Ranking of local creditors in liquidation
There are material legislative restrictions in the Overseas Bank’s country ofincorporation which subordinate the claims of a class of unsecured creditors of theRegistered Bank on the assets of the Overseas Bank to those of another class of
unsecured creditors of the Overseas Bank, in liquidation of the Overseas Bank.
The Banking Act 1959 of the Commonwealth of Australia (the “Banking Act”)
gives priority over Australian assets of the Overseas Bank to Australian depositors
if the Overseas Bank is unable to meet its obligations or suspends payment.
Accordingly, New Zealand depositors (together with all other senior unsecured
creditors of the Overseas Bank) will rank after Australian depositors of theOverseas Bank in relation to claims against Australian assets.
Specifically, pursuant to section 13A(3) of the Banking Act, if an Authorised
Deposit Taking Institution (defined in that Act to include a Bank like the OverseasBank) (an “ADI”) becomes unable to meet its obligations or suspends payment,
the assets of the ADI in Australia are to be available to meet the ADI’s liabilities
in the following order:(a) first, the ADI’s liabilities to the Australian Prudential Regulation Authority(“APRA”) (if any), because of the rights APRA has against the ADI because
APRA has made, or is required to make, payments to depositors under theFinancial Claims Scheme (defined below);(b) second, the ADI’s debts to APRA for costs incurred by APRA in administrationof the Financial Claims Scheme in respect of the ADI;(c) third, in payment of the ADI’s deposit liabilities in Australia (other thanliabilities covered under paragraph (a)); and(d) fourth, the ADI’s other liabilities (in order of priority apart from section
13A(3)).

Under section 13A(1) of the Banking Act, in certain circumstances APRA may takecontrol of an ADI or appoint an administrator (defined in the Banking Act) to takecontrol of its business. Section 16(1) and (2) of the Banking Act provide that,
despite anything contained in any law relating to the winding up of companies,
but subject to section 13A(3) of the Banking Act, the debts of an ADI to APRA
in respect of APRA’s costs (including costs in the nature of remuneration andexpenses) of being in control of the ADI’s business or of having an administrator
in control of the ADI’s business have priority in a winding up of the ADI over allother unsecured debts.
Section 86 of the Reserve Bank Act 1959 provides that notwithstanding anything
contained in any law relating to the winding up of companies, but subject tosection 13A(3) of the Banking Act, debts due to the Reserve Bank of Australia by
any ADI shall, in a winding up, have priority over all other debts other than debts
due to the Commonwealth of Australia.
Section 13A(3) affects all of the unsecured deposit liabilities of the NZ Branchwhich as at 31 March 2009 amounted to $nil. (31 March 2008 : $nil).

Non-consolidated activities
The Overseas Bank carries on insurance business in New Zealand through the NZ
Banking Group’s 49% share in the ING NZ joint venture. The NZ Banking Group
does not carry on insurance business directly. No non-financial activities arecarried on in New Zealand outside of the NZ Banking Group.

Financial statements of the Overseas Bank and Overseas
Banking GroupA copy of the most recent publicly available financial statements of the Overseas
Bank and the Overseas Banking Group is contained in the NZ Branch’s mostrecent Supplemental Disclosure Statement.

Availability of Disclosure Statements
Copies of NZ Banch’s most recent General Disclosure Statement and SupplementalDisclosure Statement will be provided at no charge immediately to any person
requesting a copy where the request is made at the NZ Branch’s head office, Level
14, ANZ Tower, 215-229 Lambton Quay, Wellington.
This Key Information Summary, the most recent General Disclosure Statement andSupplemental Disclosure Statement can be accessed at the website addresses
www.anznational.co.nz, www.anz.co.nz and www.nationalbank.co.nz.

Independent Examination Report to the Directors ofAustralia and New Zealand Banking Group Limited,New Zealand Branch

For personal use only

We have examined the attached Key Information Summary. The informationin the Key Information Summary has been extracted from the Australia and
New Zealand Banking Group Limited, New Zealand Branch’s General DisclosureStatement for the six months ended 31 March 2009. We have reviewed theinterim financial statements and certain supplementary information contained
within the General Disclosure Statement for the six months ended 31 March2009, on which we issued an unqualified review opinion dated 26 May 2009.

Directors’ Responsibilities
The Directors are responsible for the preparation and presentation of theKey Information Summary in accordance with Clauses 20(1) to 20(5) ofthe Registered Bank Disclosure Statement (Full and Half-Year – Overseas
Incorporated Registered Banks) Order 2008 (the “Order”).

Auditors’ Responsibilities
We are responsible for examining the Key Information Summary presented by theDirectors for compliance with the Order, and reporting our findings to you.

Basis of Report
We have examined the information contained in the Key Information Summaryand compared it to the corresponding information contained in the GeneralDisclosure Statement for the six months ended 31 March 2009.
Our firm has also provided other services to the NZ Branch and NZ Banking
Group in relation to audit related services. These matters have not impaired ourindependence as auditors of the NZ Branch and NZ Banking Group. The firm has
no other relationship with, or interest in, the NZ Branch and NZ Banking Group.

Statement of Findings
Based on our examination of the Key Information Summary, we report that the:> Key Information Summary has been presented and prepared in accordancewith the Order; and> Information contained in the Key Information Summary has been properlyextracted, where applicable, from the information contained in the General
Disclosure Statement for the six months ended 31 March 2009.
For a better understanding of the scope of our review of Australia andNew Zealand Banking Group Limited New Zealand Branch’s General
Disclosure Statement, and of the balance sheet of the NZ Banking Group as at31 March 2009 and the results of its operations and cash flows for the six
months ended on that date, this report should be read in conjunction withAustralia and New Zealand Banking Group Limited New Zealand Branch’s
General Disclosure Statement for the six months ended 31 March 2009.
Our review was completed on 26 May 2009 and our statement is made as atthat date.
Wellington

For personal use only