AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED- ANZBGL NEW ZEALAND
REGISTERED BANK DISCLOSURE STATEMENTFOR THE SIX MONTHS ENDED 31 MARCH 2024

CONTENTS
Glossary of terms

2

DISCLOSURE STATEMENTInterim Financial Statements
Condensed consolidated interim financial statements
Notes to the condensed consolidated interim financial statements
Limited Assurance Report

3
4
8
22

Registered Bank Disclosures
Directors’ and New Zealand Chief Executive Officer’s Statement

24
34
35

Limited Assurance Reports

GLOSSARY OF TERMS
In this Registered Bank Disclosure Statement (Disclosure Statement) unless the context otherwise requires:
Bank means ANZ Bank New Zealand Limited.
Banking Group means the Bank and all its controlled entities.
Immediate Parent Company means ANZ Funds Pty Limited, which is the immediate parent company of ANZ Holdings (New Zealand)
Limited.
Ultimate Non-Bank Holding Company, ANZGHL means ANZ Group Holdings Limited.
ANZ Group means the worldwide operations of ANZGHL, including its controlled entities.
Ultimate Parent Bank means Australia and New Zealand Banking Group Limited.
Overseas Banking Group means the worldwide operations of the Ultimate Parent Bank including its controlled entities.
New Zealand business means all business, operations, or undertakings conducted in or from New Zealand identified and treated as if itwere conducted by a company formed and registered in New Zealand.
NZ Branch means the New Zealand business of the Ultimate Parent Bank.
ANZBGL New Zealand, We or Our means the New Zealand business of the Overseas Banking Group.
ANZ New Zealand means the New Zealand business of the ANZ Group.
Registered Office is Level 10, 171 Featherston Street, Wellington, New Zealand, which is also ANZBGL New Zealand’s address for service.
RBNZ means the Reserve Bank of New Zealand.
APRA means the Australian Prudential Regulation Authority.
the Order means the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014.
Any term or expression which is defined in, or in the manner prescribed by, the Order shall have the meaning given in or prescribed by
the Order.
2

INTERIM FINANCIAL
STATEMENTS
Condensed consolidated interim financial statements
Income statement

4Statement of comprehensive income

4

Balance sheet

5

Cash flow statement

6

Statement of changes in equity

7

Notes to the condensed consolidated interim financial statements
Basis of preparation
1. About our interim financial statements

8

Financial performance
2. Other operating income

9

3. Segment reporting

10

Financial and non-financial assets
4. Net loans and advances

11

5. Allowance for expected credit losses

12

Financial and non-financial liabilities
6. Deposits and other borrowings

16

7. Debt issuances

16

Financial instrument disclosures
8. Credit risk

17

9. Fair value of financial assets and financial liabilities

19

Equity10. Shareholders' equity

20

Other disclosures
11. Commitments and contingent liabilities

21

3

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDINTERIM FINANCIAL STATEMENTS
INCOME STATEMENT
2024
NZ$m

2023
NZ$m

5,918
(3,776)

4,675(2,548)

2,142

2,127

223

225

Operating income

2,365

2,352

Operating expenses

(858)

(811)

1,507

1,541

(33)

(121)

1,474

1,420

For the six months ended 31 March

Note

Interest income
Interest expense
Net interest income
Other operating income

2

Profit before credit impairment and income tax
Credit impairment charge
Profit before income tax

5

Income tax expense

(419)

(398)

Profit for the period

1,055

1,022

Comprising:
Profit attributable to the shareholders of the Ultimate Parent Bank

1,041

1,008

14

14

For the six months ended 31 March

2024
NZ$m

2023
NZ$m

Profit after tax for the period

1,055

1,022

4

-

Unrealised gains / (losses) recognised directly in equity

48

(28)

Realised gains transferred to the income statement

(3)

(12)

Income tax attributable to the above items

(14)

11

Other comprehensive income after tax

35

(29)

1,090

993

1,076

979

14

14

Profit attributable to non-controlling interests

STATEMENT OF COMPREHENSIVE INCOME

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Items that may be reclassified subsequently to profit or loss
Reserve movements:

Total comprehensive income for the period
Comprising total comprehensive income attributable to:Shareholders of the Ultimate Parent Bank
Non-controlling interests

The notes appearing on pages 8 to 21 form an integral part of these interim financial statements

4

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDBALANCE SHEET
31 Mar 24
NZ$m

30 Sep 23
NZ$m

12,91813,094

Settlement balances receivable

651

401

Collateral paid

709

801

Trading securities

5,783

5,921

Derivative financial instruments

8,490

8,747

Investment securities

11,60910,958151,167

149,627

443

396

3,096

3,119

346

371

As at

Note

AssetsCash and cash equivalents

Net loans and advances

4

Deferred tax assets
Goodwill and other intangible assets
Premises and equipment

1,232

1,154

196,444

194,589

Settlement balances payable

3,543

2,886

Collateral received

1,003

1,500

147,886

144,393

7,839

8,287

Other assets
Total assets
Liabilities

Deposits and other borrowings

6

Derivative financial instruments
Current tax liabilities

3

59

2,437

1,954

Employee entitlements

115

122

Other provisions

206

209

16,465

18,494

Total liabilities

179,497

177,904

Net assets

16,947

16,685

11,055

11,055

Payables and other liabilities

Debt issuances

7

Shareholders' equity
Share capital

10

Reserves

10

(61)

(93)

Retained earnings

10

5,128

5,173

16,122

16,135Equity attributable to the shareholders of the Ultimate Parent Bank
Non-controlling interests
Total shareholders' equity

10

825

550

16,947

16,685The notes appearing on pages 8 to 21 form an integral part of these interim financial statements

5

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDINTERIM FINANCIAL STATEMENTS
CASH FLOW STATEMENT
For the six months ended 31 March

2024
NZ$m

2023
NZ$m

Profit after income tax

1,055

1,022

55

60

Adjustments to reconcile to net cash provided by/(used in) operating activities:
Depreciation and amortisation

1

1

Net derivatives/foreign exchange adjustment

(256)

742

Other non-cash movements

(12)

(134)

92

1,096

Loss on sale and impairment of premises and equipment

Net (increase)/decrease in operating assets:
Collateral paid
Trading securities
Net loans and advances
Other assets

138

1,571

(1,540)

(50)

(352)

333

Net increase/(decrease) in operating liabilities:
Deposits and other borrowings (excluding items included in financing activities)

3,522(1,228)Settlement balances payable

657(1,512)

Collateral received

(497)

(906)

Other liabilities

430

256

Total adjustments

2,238

229

3,293

1,251

Purchases(1,495)(2,822)

Proceeds from sale or maturity

1,320

3,348

Net cash provided by operating activities

1

Cash flows from investing activities
Investment securities:

Other assets

(19)

(30)

Net cash provided by/(used in) investing activities

(194)

496

(29)

1,000

Issue proceeds

887

500

Redemptions(3,250)(2,203)

Change in short term borrowings

(30)

(55)

Proceeds from issue of preference shares

271-

Repayment of lease liabilities

(25)

(23)

Cash flows from financing activities
Deposits and other borrowings (excluding borrowings from Immediate Parent and Ultimate Parent Bank)2
Debt issuances:3

Borrowings from Immediate Parent and Ultimate Parent Bank:4

Dividends paid

(1,099)(884)

Net cash used in financing activities(3,275)(1,665)(176)

82

Cash and cash equivalents at beginning of period

13,094

12,575

Cash and cash equivalents at end of period

12,91812,657

Net change in cash and cash equivalents

1
2
3
4

Net cash provided by operating activities includes income taxes paid of NZ$536 million (2023: NZ$702 million).
Movement in deposits and other borrowings include repayments of repurchase transactions entered into with the RBNZ under the Term Lending Facility of NZ$29 million (2023: amountdrawn under the Funding for Lending Programme of NZ$1,000 million).
Movement in debt issuances (Note 7 Debt issuances) also includes a NZ$16 million decrease (2023: NZ$975 million decrease) from the effect of foreign exchange rates, a NZ$350 million
increase (2023: NZ$226 million increase) from changes in fair value hedging instruments and nil from other changes (2023: NZ$2 million increase).
Movement in borrowings from Immediate Parent and Ultimate Parent Bank (Note 6 Deposit and other borrowings) also includes a NZ$9 million increase (2023: NZ$103 million decrease)from the effect of foreign exchange rates and a NZ$21 million increase (2023: NZ$24 million increase) from changes in fair value hedging instruments.

The notes appearing on pages 8 to 21 form an integral part of these interim financial statements

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDSTATEMENT OF CHANGES IN EQUITY

Reserves
NZ$m

Retainedearnings
NZ$m

Equityattributable toshareholders of
the Ultimate
Parent Bank
NZ$m

11,055
-

48
-

4,369
1,008

15,472
1,008

550
14

16,022
1,022

Other comprehensive income for the period

-

(29)

-

(29)

-

(29)

Total comprehensive income for the period
Transactions with equity holders in theircapacity as equity owners:
Ordinary dividend paid

-

(29)

1,008

979

14

993

-

-

(870)

(870)

-

(870)

As at 1 October 2022
Profit for the period

Preference dividends paid

Sharecapital andand initial head
office account
NZ$m

NonTotal
controlling shareholders'interests
equity
NZ$m
NZ$m

-

-

-

-

(14)

(14)

As at 31 March 2023

11,05519

4,507

15,581550

16,131As at 1 October 2023

11,055

(93)

5,173

16,135550

16,685

Profit for the period

-

-

1,041

1,041

14

1,055

Other comprehensive income for the period

-

32

3

35

-

35

Total comprehensive income for the period
Transactions with equity holders in theircapacity as equity owners:
Ordinary dividend paid

-

32

1,044

1,076

14

1,090

-

-

(1,085)(1,085)-(1,085)Preference shares issued (net of issue costs)

-

-

(4)

(4)

275

271

Preference dividends paid

-

-

-

-

(14)

(14)

11,055

(61)

5,128

16,122825

16,947As at 31 March 2024

The notes appearing on pages 8 to 21 form an integral part of these interim financial statements

7

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
1.

ABOUT OUR INTERIM FINANCIAL STATEMENTS

These financial statements for ANZBGL New Zealand have been prepared in accordance with the requirements of the Order and should be read in
conjunction with ANZBGL New Zealand’s financial statements for the year ended 30 September 2023.
On 6 May 2024, the Directors resolved to authorise the issue of these financial statements.

BASIS OF PREPARATION
These financial statements comply with:• New Zealand Generally Accepted Accounting Practice (NZ GAAP), as defined in the Financial Reporting Act 2013;• NZ IAS 34 Interim Financial Reporting and other applicable Financial Reporting Standards, as appropriate for publicly accountable for-profit
entities; and• IAS 34 Interim Financial Reporting.
The consolidated financial statements of ANZBGL New Zealand comprise the financial statements of the NZ Branch and all of the New Zealandbusinesses of all the subsidiaries of the Ultimate Parent Bank.
We present the financial statements of ANZBGL New Zealand in New Zealand dollars and have rounded values to the nearest million dollars (NZ$m),
unless otherwise stated.
The accounting policies adopted by ANZBGL New Zealand are consistent with those adopted and disclosed in the previous full year financial
statements.

BASIS OF MEASUREMENT
We have prepared the financial information in accordance with the historical cost basis - except for the following assets and liabilities which we havestated at their fair values:• derivative financial instruments and in the case of fair value hedging, a fair value adjustment made to the underlying hedged item;• financial instruments held for trading;• financial assets and financial liabilities designated at fair value through profit and loss (FVTPL); and• financial assets at fair value through other comprehensive income (FVOCI).

KEY JUDGEMENTS AND ESTIMATES
In the process of applying ANZBGL New Zealand’s accounting policies, management has made a number of judgements and applied
estimates and assumptions about past and future events. Discussion of the critical accounting estimates and judgements, which include
complex or subjective decisions or assessments, are provided in the previous full year financial statements. Such estimates and judgements
are reviewed on an ongoing basis.
The global economy continues to face challenges associated with inflation and interest rate uncertainties, labour market constraints,
continuing geopolitical tensions, and impacts from climate change, which contributes to an elevated level of estimation uncertainty involvedin the preparation of these financial statements.
ANZBGL New Zealand has made various accounting estimates in these financial statements based on forecasts of economic conditions
which reflect expectations and assumptions at 31 March 2024 about future events considered reasonable in the circumstances. Thus there isa considerable degree of judgement involved in preparing these estimates. Actual economic conditions are likely to be different from those
forecast since anticipated events frequently do not occur as expected, and the effect of these differences may significantly impact
accounting estimates included in these financial statements. The significant accounting estimates impacted by these forecasts andassociated uncertainties are predominantly related to expected credit losses and recoverable amounts of non-financial assets.
The impact of these uncertainties on each of these accounting estimates is discussed further in the relevant notes of these financial
statements and/or in the relevant notes in the previous full year financial statements. Readers should consider these disclosures in light of theinherent uncertainties described above.

8

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

2.

UNAUDITEDOTHER OPERATING INCOME

For the six months ended 31 March(i) Fee and commission income
Lending fees
Non-lending fees
Commissions
Funds management income
Fee and commission income
Fee and commission expense
Net fee and commission income(ii) Other income
Net trading gains
Gain on sale of investment securities designated at FVOCIFair value gain / (loss) on hedging activities and financial liabilities designated at fair value
Net foreign exchange earnings and other financial instruments income
Adjustment to gain on sale of UDC Finance Ltd
Other
Other income
Other operating income

2024
NZ$m

2023
NZ$m

10
370
14
122
516
(261)
255

13
375
15
120
523
(273)
250

122
1
(162)
(39)
2
5
(32)
223

105
13
(146)
(28)
3
(25)
225

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
3.

SEGMENT REPORTINGANZBGL New Zealand is organised into three major business segments for segment reporting purposes - Personal, Business & Agri and Institutional.
Centralised back office 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.
Segment reporting has been updated to reflect minor changes to ANZBGL New Zealand’s structure. Comparative amounts have been adjusted to beconsistent with the current period’s segment definitions.
Personal
Personal provides a full range of banking and wealth management services to consumer and private banking customers. We deliver our services via
our internet and app-based digital solutions and network of branches, mortgage specialists, relationship managers and contact centres.
Business & AgriBusiness & Agri provides a full range of banking services through our digital, branch and contact centres channels, and traditional relationship banking
and sophisticated financial solutions through dedicated managers. These cover privately owned small, medium and large enterprises, the agriculturalbusiness segment, government and government related entities.
Institutional
The Institutional division services governments, global institutional and corporate customers via the following business units:• Transaction Banking provides customers with working capital and liquidity solutions including documentary trade, supply chain financing,commodity financing as well as cash management solutions, deposits, payments and clearing.
• Corporate Finance provides customers with loan products, loan syndication, specialised loan structuring and execution, project and export
finance, debt structuring and acquisition finance and corporate advisory services.
• Markets provide customers with risk management services on foreign exchange, interest rates, credit, commodities and debt capital markets inaddition to managing ANZBGL New Zealand’s interest rate exposure and high quality liquid asset portfolio.
Other
Other includes treasury and back office support functions, none of which constitutes a separately reportable segment.
Business & Agri

Institutional

For the six months
ended 31 March2024

Personal
2023

2024

2023

2024

2023

2024

Other
2023

2024

Total
2023

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

Net interest income

1,170

1,215

515

498

379

348

78

66

2,142

2,127

Net fee and commission income- Lending fees
- Non-lending fees

4

3

-

-

6

10

-

-

10

13

228

220

118

132

26

23

(2)

-

370

375

- Commissions

13

15

-

-

-

-

1

-

14

15

- Funds management income

122

120

-

-

-

-

-

-

122

120

- Fee and commission expense

(168)

(167)

(93)

(106)

-

-

-

-

(261)

(273)

Net fee and commission income

199

191

25

26

32

33

(1)

-

255

250

1

1

-

-

129

147

(162)

(173)

(32)

(25)

Other income

200

192

25

26

161

180

(163)

(173)

223

225

Operating income

1,370

1,407

540

524

540

528

(85)

(107)

2,365

2,352

Operating expenses

(591)

(568)

(134)

(118)

(122)

(113)

(11)

(12)

(858)

(811)

Profit before credit impairment
and income tax

779

839

406

406

418

415

(96)

(119)

1,507

1,541

Credit impairment release /(charge)

(22)

(50)

18

(32)

(29)

(39)

-

-

(33)

(121)

Other operating income

Profit / (loss) before income tax
Income tax credit / (expense)
Non-controlling interests
Profit / (loss) after income tax
1

10

1

757

789

424

374

389

376

(96)

(119)

1,474

1,420

(212)

(221)

(119)

(105)

(109)

(105)

21

33

(419)

(398)

-

-

-

-

-

-

(14)

(14)

(14)

(14)

545

568

305

269

280

271

(89)

(100)

1,041

1,008

Attributable to the shareholders of the Ultimate Parent Bank.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

Personal

UNAUDITEDBusiness & Agri

Institutional

Other

Total

31 Mar 24 30 Sep 23 31 Mar 24 30 Sep 23 31 Mar 24 30 Sep 23 31 Mar 24 30 Sep 23 31 Mar 24 30 Sep 23
As at

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

1,042

1,042

695

695

1,269

1,269

-

-

3,006

3,006

Net loans and advances

108,721

106,444

23,887

24,424

18,55918,759--151,167

149,627

Customer deposits

90,49388,086

18,296

18,345

26,57826,098--135,367

132,529

Financial position
Goodwill

Other segment
The Other segment profit/(loss) after tax comprises:
For the six months ended 31 March
Personal and Business & Agri central functions
Group Centre
Economic hedges
Total

2024
NZ$m

2023
NZ$m

2
26
(117)
(89)

2
3
(105)
(100)

31 Mar 24
NZ$m
926
1,268
109,474
39,782
151,450(23)
477
151,904(737)
151,167

30 Sep 23
NZ$m
973
1,262
107,346
40,345
149,926(28)
459
150,357(730)
149,627

4. NET LOANS AND ADVANCES
Note
Overdrafts
Credit cards
Term loans - housing
Term loans - non-housing
Subtotal
Unearned income
Capitalised brokerage and other origination costs
Gross loans and advances
Allowance for expected credit losses
Net loans and advances

5

11

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
5.

ALLOWANCE FOR EXPECTED CREDIT LOSSES

This note should be read in conjunction with the estimates, assumptions and judgements included in Note 1 About our interim financial statements.

Net loans and advances at amortised cost
Off-balance sheet commitments
Total

31 Mar 24

30 Sep 23

Collectively Individuallyassessedassessed
NZ$m
NZ$m
690
47
132
1
822
48

Total
NZ$m
737
133
870

Collectively Individuallyassessedassessed
NZ$m
NZ$m
670
60
122
5
792
65

Total
NZ$m
730
127
857

Stage 2
NZ$m
398
(42)
9
365

Stage 3
Collectively Individuallyassessedassessed
NZ$m
NZ$m
79
60
3
4
42
40
(31)
(20)
(6)
124
47

Total
NZ$m
730
64
(31)
(20)
(6)
737

The following tables present the movement in the allowance for expected credit losses (ECL).
Net loans and advances
Allowance for ECL is included in net loans and advances.

As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Bad debts written-off (excluding recoveries)
Discount unwind
As at 31 March 2024

Stage 1
NZ$m
193
35
(27)
201

Off-balance sheet credit related commitments - undrawn and contingent facilities
Allowance for ECL is included in other provisions.
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
As at 31 March 2024

80
4
(12)
72

39
(4)
22
57

3
3

5
(4)
1

127
6
133

CREDIT IMPAIRMENT CHARGE – INCOME STATEMENT
For the six months ended 31 March
New and increased provisions (net of releases)1- Collectively assessed- Individually assessed
Write-backs
Recoveries of amounts previously written-off
Total credit impairment charge
112Includes the impact of transfers between collectively assessed and individually assessed.

2024
NZ$m

2023
NZ$m

30
40
(31)
(6)
33

98
37
(9)
(5)
121

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDKEY JUDGEMENTS AND ESTIMATES
Collectively assessed allowance for expected credit losses
In estimating collectively assessed ECL, ANZBGL New Zealand makes judgements and assumptions in relation to:• the selection of an estimation technique or modelling methodology; and• the selection of inputs for those models, and the interdependencies between those inputs.
The judgements and associated assumptions have been made within the context of the uncertainty as to how various factors might impact
the global economy, and reflect historical experience and other factors that are considered to be relevant, including expectations of future
events that are believed to be reasonable under the circumstances. ANZBGL New Zealand’s ECL estimates are inherently uncertain and, as aresult, actual results may differ from these estimates.
The following table summarises the key judgements and assumptions in relation to the model inputs and the interdependencies between
those inputs, and highlights significant changes during the current period.
Judgement /assumption

Description

Considerations for the six months ended
31 March 2024

Determining
when asignificant
increase incredit risk
(SICR) has
occurred orreversedIn the measurement of ECL, judgement is involved indetermining whether there has been a SICR sinceinitial recognition of a loan, which would result in it
moving from Stage 1 to Stage 2. This is a key area ofjudgement since transition from Stage 1 to Stage 2
increases the ECL from an allowance based on theprobability of default in the next 12 months, to anallowance for lifetime ECL. Subsequent decreases incredit risk resulting in transition from Stage 2 to Stage
1 may similarly result in significant changes in the ECL
allowance.
The setting of precise SICR trigger points requires
judgement which may have a material impact upon
the size of the ECL allowance. ANZBGL New Zealandmonitors the effectiveness of SICR criteria on an
ongoing basis.

The determination of SICR was consistent with priorperiods.

Measuringboth 12-monthand lifetime
ECL

The probability of default (PD), loss given default(LGD) and exposure at default (EAD) factors used indetermining ECL are point-in-time measuresreflecting the relevant forward-looking information
determined by management. Judgement is involved
in determining which forward-looking information isrelevant for particular lending portfolios and for
determining each portfolio’s point-in-time sensitivity.
In addition, judgement is required where behaviouralcharacteristics are applied in estimating the lifetime ofa facility which is used in measuring ECL.

The PD, LGD and EAD models are subject to ANZBGLNew Zealand’s model risk policy that stipulates
periodic model monitoring and re-validation, anddefines approval procedures and authorities
according to model materiality.
There were no material changes to the policy.
A new PD model was implemented for the agri
portfolio during the period, replacing the prior model,
with impacts largely offset by the release of a model
overlay held in anticipation of model implementation.

Base caseeconomic
forecast

ANZBGL New Zealand derives a forward-looking ‘basecase’ economic scenario which reflects our view of
future macroeconomic conditions.

There have been no changes to the types of forwardlooking variables (key economic drivers) used asmodel inputs.
As at 31 March 2024, the base case assumptions havebeen updated to reflect a moderation in inflation andrising unemployment. The economy is forecast tocontinue to grow below trend. Despite increased
household disposable incomes, limited flow-throughto household consumption is forecast.
The expected outcomes of key economic drivers forthe base case scenario at 31 March 2024 are described
below under the heading ‘Base case economic
forecast assumptions’.

13

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
KEY JUDGEMENTS AND ESTIMATES
Judgement /assumption

1

Description

Considerations for the six months ended
31 March 2024

Probability
weighting ofeach economic
scenario (basecase, upside,
downside andseveredownsidescenarios)1

Probability weighting of each economic scenario is
determined by management considering the risks
and uncertainties surrounding the base caseeconomic scenario at each measurement date.
The assigned probability weightings are subject to ahigh degree of inherent uncertainty and therefore theactual outcomes may be significantly different tothose projected.

Probability weightings in the current period remainunchanged from the prior period, reflecting ourassessment of the continuing downside risks from theimpact of high interest rates and inflation.
Weightings for current and prior periods are as
detailed in the section below under the heading on‘Probability weightings’.

Management
temporaryadjustments

Management temporary adjustments to the ECL
allowance are used in circumstances where it isjudged that our existing inputs, assumptions andmodel techniques do not capture all the risk factors
relevant to our lending portfolios. Emerging local or
global macroeconomic, microeconomic or politicalevents, natural disasters, and natural hazards that are
not incorporated into our current parameters, risk
ratings, or forward-looking information are examples
of such circumstances.

Management have continued to apply adjustments toaccommodate uncertainty associated with higher
inflation and interest rates. Management overlays
have been made for risks particular to mortgages andcommercial lending.
Management temporary adjustments total NZ$71
million (September 2023: NZ$176 million).
Management has considered and concluded no
temporary adjustment is required at 31 March 2024 to
the ECL in relation to climate- or weather-related
events during the period.

The upside and downside scenarios are fixed by reference to average economic cycle conditions instead of economic conditions prevailing at balance date, and are based on a combination of
more optimistic (in the case of the upside) and pessimistic (in the case of the downside) economic conditions.

Base case economic forecast assumptions
The economic drivers of the base case economic forecasts, reflective of our view of future macroeconomic conditions, used at 31 March 2024
are set out below. For years beyond the near-term forecasts below, the ECL models apply simplified assumptions for the economic conditions
to calculate lifetime loss. There is a high level of estimation uncertainties when forming these forecasts.
New Zealand
GDP (annual % change)
Unemployment rate (annual average)
Residential property prices (annual % change)
Consumer price index (CPI) (annual % change)

Actual calendar year
2023
0.8%
3.7%
-0.7%
5.7%

Forecast calendar year
2024
2025
0.9%
4.5%
3.0%
3.1%

1.3%
5.3%
5.0%
2.2%

The base case economic forecasts are for a continuing slowdown in economic activity. Continued high inflation is expected to keep interest
rates high for longer and dampen growth over the forecast period.

14

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDKEY JUDGEMENTS AND ESTIMATES
Probability weightings
Probability weightings for each scenario are determined by management considering the risks and uncertainties surrounding the base caseeconomic scenario including the uncertainties described above.
Scenario weightings remain the same as those applied in September 2023 as noted in the table below.
The assigned probability weightings are subject to a high degree of inherent uncertainty and therefore the actual outcomes may besignificantly different to those projected. ANZBGL New Zealand considers these weightings to provide estimates of the possible loss outcomes
and taking into account short and long term inter-relationships within ANZBGL New Zealand’s credit portfolios. The weightings applied are set
out below:

Base
UpsideDownside
Severe downside

31 Mar 24

30 Sep 23

50.0%
0.0%
37.5%
12.5%

50.0%
0.0%
37.5%
12.5%

ECL - Sensitivity analysis
Given inherent economic uncertainties and the judgement applied to factors used in determining the expected default of borrowers in future
periods, ECL reported by ANZBGL New Zealand should be considered as a best estimate within a range of possible estimates.
The table below illustrates the sensitivity of ANZBGL New Zealand’s allowance for collectively assessed ECL to key factors used in determining
it at 31 March 2024:
ECL
NZ$m

Impact on ECL
NZ$m

If 1% of Stage 1 facilities were included in Stage 2
If 1% of Stage 2 facilities were included in Stage 1

832
821

10
(1)

100% upside scenario
100% base scenario
100% downside scenario
100% severe downside scenario

243
405
743
2,161

(579)
(417)
(79)
1,339

Individually assessed allowance for expected credit losses
In estimating individually assessed ECL, ANZBGL New Zealand makes judgements and assumptions in relation to expected repayments, therealisable value of collateral, business prospects for the customer, competing claims and the likely cost and duration of the work-out process.
Judgements and assumptions in respect of these matters have been updated to reflect amongst other things, the uncertainties describedabove and in Note 1 About our interim financial statements.

15

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
6. DEPOSITS AND OTHER BORROWINGS
Term deposits
On demand and short term deposits
Deposits not bearing interest
Total customer deposits
Certificates of deposit
Commercial paper
Securities sold under repurchase agreements
Borrowings from Ultimate Parent Bank and Immediate Parent Company
Deposits and other borrowings

7.

31 Mar 24
NZ$m
57,52760,586
17,254
135,367
1,962
3,437
4,266
2,854
147,886

30 Sep 23
NZ$m
54,19860,673
17,658132,529
2,328
2,253
4,429
2,854
144,393

DEBT ISSUANCESANZBGL New Zealand uses a variety of funding programmes to issue unsubordinated debt (including senior debt and covered bonds) andsubordinated debt. The difference between unsubordinated debt and subordinated debt is that holders of unsubordinated debt take priority overholders of subordinated debt owed by the relevant issuer and subordinated debt will be repaid by the relevant issuer only after the repayment ofclaims of depositors, other creditors and the unsubordinated debt holders.
31 Mar 24
30 Sep 23
NZ$m
NZ$m
Senior debt
12,606
13,466
Covered bonds
2,178
3,373
16,839Total unsubordinated debt
14,784
Subordinated debt
1,655
1,681
18,494
Total debt issued
16,465
Covered bonds 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 Trust). The Covered Bond Trust is a member of ANZBGL New Zealand, whereas the Covered Bond Guarantor is
not a member of ANZBGL New Zealand.
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 the Covered Bond Guarantor 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 theBank, although the Bank (or its liquidator or statutory manager) may have a claim against the residual assets of the Covered Bond Trust (if any) after all
priority ranking creditors of the Covered Bond Trust have been satisfied.

16

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

8.

UNAUDITEDCREDIT RISKThis note should be read in conjunction with the estimates, assumptions and judgements included in Note 1 About our interim financial statements
and Note 5 Allowance for expected credit losses.
Maximum exposure to credit risk
For financial assets recognised on the balance sheet, the maximum exposure to credit risk is the carrying amount. In certain circumstances there may
be differences between the carrying amounts reported on the balance sheet and the amounts reported in the tables below. Principally, thesedifferences arise in respect of financial assets that are subject to risks other than credit risk, such as equity instruments which are primarily subject tomarket risk, or bank notes and coins.
For undrawn facilities, this maximum exposure to credit risk is the full amount of the committed facilities. For contingent exposures, the maximum
exposure to credit risk is the maximum amount ANZBGL New Zealand would have to pay if the instrument is called upon.
The table below shows our maximum exposure to credit risk of on-balance sheet and off-balance sheet positions before taking account of any
collateral held or other credit enhancements.
Reported
31 Mar 24
30 Sep 23
NZ$m
NZ$m
On-balance sheet positions
Net loans and advances
Other financial assets:
Cash and cash equivalents
Settlement balances receivable
Collateral paid
Trading securities
Derivative financial instruments
Investment securities
Other financial assets2
Total other financial assets
Subtotal
Off-balance sheet commitments
Undrawn and contingent facilities3
Total
1
2
3

Excluded1
31 Mar 24
30 Sep 23
NZ$m
NZ$m

Maximum exposure tocredit risk
31 Mar 24
30 Sep 23
NZ$m
NZ$m

151,167

149,627--

151,167

149,627

12,918
651
709
5,783
8,490
11,6091,018
41,178
192,345

13,094
401
801
5,921
8,747
10,958996
40,918
190,545

197
197
197

155
155
155

12,721
651
709
5,783
8,490
11,6091,018
40,981
192,148

12,939
401
801
5,921
8,747
10,958996
40,763
190,390

28,445
220,790

28,477
219,022197

155

28,445220,593

28,477
218,867

Coins, notes and cash at bank within cash and cash equivalents were excluded as they do not have credit risk exposure.
Other financial assets mainly comprise accrued interest and acceptances.
Undrawn and contingent facilities include guarantees, letters of credit and performance related contingencies, net of collectively assessed and individually assessed allowance for expectedcredit losses.

Credit quality
We use ANZBGL New Zealand’s internal customer credit rating (CCR) to manage the credit quality of financial assets. To enable wider comparisons,ANZBGL New Zealand’s CCRs are mapped to external rating agency scales as follows:
Credit quality
description

Internal CCR

ANZBGL New Zealand customer requirements

Moody’s
RatingS&P Global
Ratings

Strong

CCR 0+ to 4-

Demonstrated superior stability in their operating and financial
performance over the long-term, and whose earnings capacity is
not significantly vulnerable to foreseeable events.

Aaa – Baa3

AAA – BBB-

Satisfactory

CCR 5+ to 6-

Demonstrated sound operational and financial stability over the
medium to long-term even though some may be susceptible tocyclical trends or variability in earnings.

Ba1 – B1

BB+ – B+Weak

CCR 7+ to 8=

Demonstrated some operational and financial instability, withvariability and uncertainty in profitability and liquidity projected tocontinue over the short and possibly medium term.

B2 – Caa

B - CCC

Defaulted

CCR 8- to 10

When doubt arises as to the collectability of a credit facility, thefinancial instrument (or ‘the facility’) is classified as defaulted.

n/a

n/a

17

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS

Stage 1
NZ$m
116,684
20,927
601
138,212(201)
138,011
0.15%

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
3,439
4,736
3,412
1,360
291
11,587
1,360
291
(365)
(124)
(47)
11,222
1,236
244
3.15%
9.12%
16.15%

117,117
20,004505
137,626(193)
137,433
0.14%

3,656
5,032
2,432
11,120(398)
10,722
3.58%

As at 31 March 2024
StrongSatisfactory
Weak
Defaulted
Gross undrawn and contingent facilities
Allowance for ECL included in other provisions
Net undrawn and contingent facilities
Coverage ratio

Stage 1
NZ$m
23,7513,278
7
27,036(72)
26,964
0.27%

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
270
980
266
18
8
1,516
18
8
(57)
(3)
(1)
1,459
15
7
3.76%
16.67%
12.50%

As at 30 September 2023
StrongSatisfactory
Weak
Defaulted
Gross undrawn and contingent facilities
Allowance for ECL included in other provisions
Net undrawn and contingent facilities
Coverage ratio

24,0883,343
827,439(80)
27,3590.29%

Net loans and advances

As at 31 March 2024
StrongSatisfactory
Weak
Defaulted
Subtotal
Allowance for ECL
Net loans and advances at amortised cost
Coverage ratio
Unearned income
Capitalised brokerage and other origination costs
Net carrying amountAs at 30 September 2023
StrongSatisfactory
Weak
Defaulted
Subtotal
Allowance for ECL
Net loans and advances at amortised cost
Coverage ratio
Unearned income
Capitalised brokerage and other origination costs
Net carrying amountOff-balance sheet commitments - undrawn and contingent facilities

18

202
701
234
1,137
(39)
1,098
3.43%

893
893
(79)
814
8.85%

15
15
(3)
12
20.00%

287
287
(60)
227
20.91%

1313(5)
8
38.46%

Total
NZ$m
120,123
25,663
4,013
1,651
151,450(737)
150,713
0.49%
(23)
477
151,167

120,773
25,036
2,937
1,180
149,926(730)
149,196
0.49%
(28)
459
149,627

Total
NZ$m
24,021
4,258
273
2628,578(133)
28,4450.47%

24,2904,044
242
28
28,604(127)
28,477
0.44%

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITED

9. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIESFair value hierarchy
ANZBGL New Zealand categorises assets and liabilities carried at fair value into a fair value hierarchy as required by NZ IFRS 13 Fair Value Measurement
based on the observability of inputs used to measure the fair value:• Level 1 – valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities;• Level 2 – valuations using inputs other than quoted prices included within Level 1 that are observable for a similar asset or liability, either directly
or indirectly; and• Level 3 – valuations where significant unobservable inputs are used to measure the fair value of the asset or liability.
The following table presents assets and liabilities carried at fair value in accordance with the fair value hierarchy:
Quoted market price(Level 1)
31 Mar 24
30 Sep 23
NZ$m
NZ$m
AssetsCash and cash equivalents
Trading securities1
Derivative financial instruments
Investment securities1
Total
Liabilities
Deposits and other borrowings
Derivative financial instruments
Other financial liabilities
Total
1

Fair value measurements
Using observable inputs
Using unobservable(Level 2)
inputs (Level 3)
31 Mar 24
30 Sep 23
31 Mar 24
30 Sep 23
NZ$m
NZ$m
NZ$m
NZ$m

Total
31 Mar 24
NZ$m

30 Sep 23
NZ$m

4,465
4
10,325
14,794

3,989
38
7,796
11,823

448
1,318
8,485
1,283
11,534

668
1,932
8,709
3,161
14,470

1
1
2

1
1

448
5,783
8,490
11,60926,330

668
5,921
8,747
10,95826,294

19
689
708

2
367
369

3,651
7,815
11,466

2,882
8,275
4
11,161

5
5

10
10

3,651
7,839
689
12,179

2,882
8,287
371
11,540During the six months ended 31 March 2024, NZ$134 million of assets were transferred from Level 1 to Level 2 and $2,205 million of assets were transferred from Level 2 to Level 1 for
ANZBGL New Zealand due to a change of the observability of valuation inputs. There were no other material transfers between Level 1 and Level 2 during the year. Transfers into and out oflevels are measured at the beginning of the reporting period in which the transfer occurred.

Financial assets and financial liabilities not measured at fair value
Below is a comparison of the carrying amounts as reported on the balance sheet and fair values of financial asset and financial liability categories otherthan those categories where the carrying amount is at fair value or considered a reasonable approximation of fair value.
The fair values below have been calculated using discounted cash flow techniques where contractual future cash flows of the instrument are
discounted using discount rates incorporating wholesale market rates or market borrowing rates of debt with similar maturities or a yield curve
appropriate for the remaining term to maturity.
Carrying amountFinancial assets
Net loans and advances1
Total
Financial liabilities
Deposits and other borrowings2
Debt issuances1
Total
1
2

Fair value

31 Mar 24
NZ$m

30 Sep 23
NZ$m

31 Mar 24
NZ$m

30 Sep 23
NZ$m

151,167
151,167

149,627
149,627

150,806
150,806

148,564
148,564

144,235
16,465
160,700

141,51118,494160,005

144,282
16,562160,844

141,424
18,468
159,892

Fair value hedging is applied to certain financial instruments within these categories. The resulting fair value adjustments mean that the carrying value differs from the amortised cost.
Excludes commercial paper and securities sold under repurchase agreements (Note 6 Deposits and other borrowings) designated at fair value through profit or loss.

19

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDNOTES TO THE INTERIM FINANCIAL STATEMENTS
10. SHAREHOLDERS’ EQUITYSHAREHOLDERS’ EQUITY

Share capital and initial head office accountReserves
FVOCI reserve
Cash flow hedge reserve
Total reserves
Retained earnings
Equity attributable to shareholders of the Ultimate Parent Bank
Non-controlling interests
Total shareholders' equity

31 Mar 24
NZ$m
11,05530 Sep 23
NZ$m
11,055

(13)
(48)
(61)
5,128
16,122825
16,947

(39)
(54)
(93)
5,173
16,135550
16,685SHARE CAPITAL
The table below details the movement in issued shares and share capital for the period.
Number of issued shares
31 Mar 24
30 Sep 23
378,155,112
378,155,112
8,354,563,940
8,354,563,940
8,732,719,052
8,732,719,052
8,732,719,052
8,732,719,052

Ordinary shares
Redeemable preference shares1
Total share capital
NZ Branch initial head office accountTotal share capital & initial head office account
1

NZ$ millions
31 Mar 24
30 Sep 23
1,450
1,450
9,594
9,594
11,044
11,04411
11
11,055
11,055

Includes 44,990 (2023: 44,990) uncalled NZ$1.00 shares.

NON-CONTROLLING INTERESTSANZBGL New Zealand has issued perpetual preference shares (PPS). The PPS are considered non-controlling interests to ANZBGL New Zealand.
Profit attributable to non- Equity attributable to noncontrolling interest
controlling interest
31 Mar 24
30 Sep 23
31 Mar 24
30 Sep 23
14
27
825
550
14
27
825
550

Perpetual preference shares
Total

Dividend paid to noncontrolling interests
31 Mar 24
30 Sep 23
14
27
14
27

PPS do not carry any voting rights. They are classified as equity instruments as there is no contractual obligation for the Bank to either deliver cash or
another financial instrument or to exchange financial instruments on a potentially unfavourable basis.
In the event of liquidation, holders of PPS are entitled to a maximum amount equal to the issue price of the PPS. Holders of PPS rank behind the claimsof all depositors and other creditors of the Bank (other than creditors that rank equally with the PPS), equally with the rights of other holders of PPS
and other equal ranking securities and obligations, and in priority to the rights of holders of ordinary shares.
Holders of PPS are entitled to receive dividends that are discretionary, non-cumulative and subject to conditions. If a PPS dividend is not paid, there arecertain restrictions on the ability of the Bank to pay a dividend on its ordinary shares. Holders of the PPS have no other rights to participate in the
profits or property of the Bank.
Holders of PPS have no right to require that the PPS be redeemed.
ANZBGL New Zealand has two classes of PPS that are quoted on the NZX Debt Market: PPS issued in 2022 and PPS issued in 2024.
The key terms of the PPS are as follows:
Issue dateIssue amountFirst optional redemption date
Final maturity date

Dividend amount2022 PPS
18 July 2022
NZ$550 million
18 July 2028
Perpetual
6.95% per annum until 18 July 2028 (after which it
changes to a floating rate equal to the aggregate of
the New Zealand 3-month bank bill rate plus 3.25%),
multiplied by one minus the New Zealand company
tax rate (where the PPS dividend is fully imputed).

2024 PPS
19 March 2024
NZ$275 million
19 March 2030
Perpetual
7.60% per annum until 19 March 2030 (after which it
changes to a floating rate equal to the aggregate of
the New Zealand 3-month bank bill rate plus 3.25%),
multiplied by one minus the New Zealand company
tax rate (where the PPS dividend is fully imputed).

As at 31 March 2024, the PPS carried a BBB credit rating from S&P Global Ratings. S&P Global Ratings upgraded the credit rating on the PPS from BBB to
BBB+ on 3 April 2024.
The Bank may, at its option, redeem a class of PPS on an optional redemption date (being each scheduled quarterly dividend payment date from thefirst optional redemption date), or at any time following the occurrence of a tax event or regulatory event, subject to prior written approval of RBNZ
and certain other conditions being met.
20

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITED

11. COMMITMENTS AND CONTINGENT LIABILITIESCredit related commitments and contingencies
Contract amount of:
Undrawn facilities
Guarantees and letters of credit
Performance related contingencies
Total

31 Mar 24
NZ$m

30 Sep 23
NZ$m

25,9971,140
1,441
28,57826,055
1,029
1,520
28,604ANZBGL New Zealand guarantees the performance of customers by issuing standby letters of credit and guarantees to third parties, including its
Ultimate Parent Bank. The risk involved is essentially the same as the credit risk involved in extending loan facilities to customers, therefore thesetransactions are subjected to the same credit origination, portfolio management and collateral requirements for customers applying for loans. As thefacilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements.
OTHER CONTINGENT LIABILITIESThere are outstanding court proceedings, claims and possible claims for and against ANZBGL New Zealand. Where relevant, expert legal advice has
been obtained and, in the light of such advice, provisions and/or disclosures as deemed appropriate have been made. In some instances we have notdisclosed the estimated financial impact of the individual items either because it is not practicable to do so or because such disclosure may prejudiceseriously the interests of ANZBGL New Zealand.
REGULATORY AND CUSTOMER EXPOSURESANZBGL New Zealand regularly engages with its regulators in relation to regulatory investigations, surveillance and reviews, reportable situations, civil
enforcement actions (whether by court action or otherwise), formal and informal inquiries and regulatory supervisory activities both in New Zealandand globally. ANZBGL New Zealand has received various notices and requests for information from its regulators as part of both industry-wide and
ANZBGL New Zealand-specific reviews, and has also made disclosures to its regulators at its own instigation. The nature of these interactions can bewide ranging and, for example, may include a range of matters including responsible lending practices, regulated lending requirements, productsuitability and distribution, interest and fees and the entitlement to charge them, customer remediation, wealth advice, insurance distribution, pricing,competition, conduct in financial markets and financial transactions, capital market transactions, anti-money laundering and counter-terrorism
financing obligations, privacy obligations and information security, business continuity management, reporting and disclosure obligations andproduct disclosure documentation. There may be exposures to customers which are additional to any regulatory exposures. These could include classactions, individual claims or customer remediation or compensation activities. The outcomes and total costs associated with such reviews andpossible exposures remain uncertain.
LOAN INFORMATION LITIGATIONIn September 2021, a representative proceeding was brought against the Bank, alleging breaches of disclosure requirements under consumer credit
legislation in respect of variation letters sent to certain loan customers. The bank is defending the allegations. In July 2022, the High Court ruled thatthe plaintiffs may bring the proceeding as an opt-out representative action on behalf of a class, being certain customers who entered into a homeloan or personal loan with the Bank between 6 June 2015 and 28 May 2016 and requested a variation to that loan during that period. Aspects of thedecision were appealed by both parties, and a hearing took place at the Court of Appeal in April 2024. The Bank is awaiting judgment.
WARRANTIES AND INDEMNITIESANZBGL New Zealand has provided warranties, indemnities and other commitments in favour of the purchaser in connection with various disposals of
businesses and assets and other transactions, covering a range of matters and risks. It is exposed to potential claims under those warranties,
indemnities and commitments, some of which are currently active. The outcomes and total costs associated with these exposures remain uncertain.

21

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

LIMITED ASSURANCE REPORTINDEPENDENT AUDITOR’S REVIEW REPORTTO THE DIRECTORS OF AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITEDREPORT ON THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONCLUSION
We have completed a review of the accompanying consolidated interim financial statements of the New Zealand business of Australia and New
Zealand Banking Group Limited (ANZBGL) and its subsidiaries (ANZBGL New Zealand) on pages 4 to 21 which comprise:• the consolidated statement of financial position as at 31 March 2024;• the consolidated statements of comprehensive income, changes in equity and cash flows for the six-month period then ended; and• notes, including a summary of material accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial statements have notbeen prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting (NZ IAS 34) and IAS 34 Interim Financial Reporting(IAS 34).
BASIS FOR CONCLUSION
A review of the consolidated interim financial statements in accordance with NZ SRE 2410 Review of Financial Statements Performed by the
Independent Auditor of the Entity (NZ SRE 2410) is a limited assurance engagement. The auditor performs procedures, consisting of making enquiries,

primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

As the auditor of ANZBGL New Zealand, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual
financial statements.
Our firm has also provided other services to ANZBGL New Zealand in relation to review of regulatory returns, internal controls reports, prospectus
assurance, agreed upon procedures and other assurance engagements. Subject to certain restrictions, partners and employees of our firm may also
deal with ANZBGL New Zealand on normal terms within the ordinary course of trading activities of the business of ANZBGL New Zealand. These
matters have not impaired our independence as reviewer of ANZBGL New Zealand. The firm has no other relationship with, or interest in, ANZBGLNew Zealand.
USE OF THIS INDEPENDENT REVIEW REPORTThis independent review report is made solely to ANZBGL’s directors. Our review work has been undertaken so that we might state to the directors
those matters we are required to state to them in the independent review report and for no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than the directors for our review work, this independent review report, or any of the opinions
we have formed.
RESPONSIBILITIES OF THE DIRECTORS FOR THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
The Directors, on behalf of ANZBGL New Zealand, are responsible for:• the preparation and fair presentation of the consolidated interim financial statements in accordance with NZ IAS 34 and IAS 34;• implementing necessary internal control to enable the preparation of a consolidated interim financial statements that are free from material
misstatement, whether due to fraud or error; and• assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless they either intend to liquidate or to cease operations, or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the consolidated interim financial statements based on our review. We conducted our review inaccordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to believe that theconsolidated interim financial statements are not prepared, in all material respects, in accordance with NZ IAS 34 and IAS 34.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards
on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not
express an audit opinion on ANZBGL New Zealand’s consolidated interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Jamie Munro.

KPMG
Auckland6 May 2024
22

This page has been left blank intentionally

23

REGISTERED BANKDISCLOSURESThis section contains the additional disclosures required by the Registered Bank Disclosure Statements(Overseas Incorporated Registered Banks) Order 2014.

24

Section

Order reference

Page

B1.

General disclosures

Schedule 3

25

B2.

Additional financial disclosures

Schedule 5

26

B3.

Asset quality

Schedule 7

31

B4.

Credit and market risk exposures and capital adequacy

Schedule 9

32

B5.

Insurance business

Schedule 12

33

B6.

Risk management policies

Schedule 14

33

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDREGISTERED BANK DISCLOSURES
B1. GENERAL DISCLOSURES
Guarantees
No material obligations of the NZ Branch are guaranteed as at 6 May 2024.
Covered bonds issued by ANZ New Zealand (Int’l) Limited, a subsidiary of the Bank, are guaranteed. Refer to page 16 for further details.
Changes in the Ultimate Parent Bank’s Board of Directors
As at 6 May 2024, there have been changes to the Directors of the Ultimate Parent Bank since 30 September 2023, the balance date of the last full year
disclosure statement. These changes were:• Ilana Atlas and John Macfarlane retired as independent non-executive directors on 21 December 2023;• John Cincotta and Richard Gibb were appointed as independent non-executive directors on 15 February 2024;• Rt Hon Sir John Key, GNZM AC retired as an independent non-executive director on 14 March 2024; and• Scott St John was appointed as an independent non-executive director on 25 March 2024.
Auditors
KPMG, 18 Viaduct Harbour Avenue, Auckland, New Zealand.
Pending proceedings or arbitration
A description of any pending legal proceedings or arbitration concerning any member of ANZBGL New Zealand that may have a material adverse
effect on the NZ Branch or ANZBGL New Zealand is included in Note 11 Commitments and contingent liabilities.
Credit rating
The Ultimate Parent Bank has credit ratings that apply to its long-term senior unsecured obligations payable in New Zealand in New Zealand dollars.
As at 6 May 2024, the Ultimate Parent Bank’s credit ratings are:Rating agency
S&P Global Ratings
Fitch Ratings
Moody’s Investors Service

Credit rating
AAA+
Aa2

Qualification
Outlook Stable
Outlook Stable
Outlook Stable

Other material matters

Climate Statements
The Ultimate Parent Bank is a climate reporting entity (CRE) and is required to produce group climate statements for its New Zealand business under
New Zealand’s mandatory climate-related disclosure legislation. ANZBGL New Zealand will issue its first mandatory climate statements under the
Financial Markets Conduct Act 2013 (FMCA) and the Aotearoa New Zealand Climate Standards (NZ CS) for the financial year ending 30 September
2024.

RBNZ capital requirements
RBNZ has revised the capital adequacy requirements applying to New Zealand locally incorporated registered banks, which are set out in RBNZ’s
Banking Prudential Requirements documents. As a result, the Banking Group is materially increasing the level of capital it holds over the transition
period from October 2021 to July 2028. The key requirements still being implemented are:
• The Banking Group’s total capital requirement will progressively increase to 18% of RWA, including tier 1 capital of at least 16% of RWA. Up to
2.5% of the tier 1 capital requirement can be made up of additional tier 1 (AT1) capital, with the remainder of the tier 1 requirement made up ofcommon equity tier 1 (CET1) capital, from July 2024. AT1 capital must consist of perpetual preference shares, which may be redeemable. The
total capital requirement can also include tier 2 capital of up to 2% of RWA. Tier 2 capital must consist of long-term subordinated debt.
• The tier 1 capital requirement will include a CET1 prudential capital buffer of 9% of RWA. This will include: a 2% domestic systemically importantbank capital buffer; a 1.5% 'early-set' counter-cyclical capital buffer, which can be temporarily reduced to 0% following a financial crisis, or
temporarily increased; and a 5.5% capital conservation buffer.
• Contingent capital instruments will no longer be treated as eligible regulatory capital. As at 31 March 2024, the Bank had NZ$1,238 million of
AT1 capital instruments that will progressively lose eligible regulatory capital treatment over the transition period to July 2028.
Financial statements of the Ultimate Parent Bank and Overseas Banking Group
Copies of the most recent publicly available financial statements of the Ultimate Parent Bank and Overseas Banking Group will be provided
immediately, free of charge, to any person requesting a copy where request is made at the Registered Office. The most recent publicly available
financial statements for the Ultimate Parent Bank and Overseas Banking Group can also be accessed at the website anz.com/shareholder/centre/.

25

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDREGISTERED BANK DISCLOSURES
B2. ADDITIONAL FINANCIAL DISCLOSURES
Additional information on the balance sheet
As at 31 March 2024
Total interest earning and discount bearing assets
Total interest and discount bearing liabilities
Total amounts due from related entities
Total amounts due to related entities
Total liabilities of the NZ Branch less amounts due to related entities

NZ$m
182,054
151,005
5,907
9,054
1

Assets charged as security for liabilities
The following disclosure excludes the amounts presented as collateral paid and received on the balance sheet that relate to derivative liabilities andderivative assets respectively. The terms and conditions of those collateral agreements are included in the standard Credit Support Annex that forms
part of the International Swaps and Derivatives Association Master Agreement under which most of our derivatives are executed.
Assets charged as security for liabilities include the following types of instruments:• securities provided as collateral for repurchase transactions. These transactions are governed by standard industry agreements;• specified residential mortgages provided as security for notes and bonds issued to investors as part of ANZBGL New Zealand’s covered bondprogrammes;• collateral provided to RBNZ under the Term Lending Facility and Funding for Lending Programme; and• collateral provided to a clearing house.
The carrying amounts of assets pledged as security are as follows:
As at 31 March 2024
Securities sold under agreements to repurchase
Residential mortgages pledged as security for repurchase agreements with RBNZ
Total assets of the ANZNZ Covered Bond Trust pledged as security for covered bonds
Other

NZ$m
446
4,889
9,642
236

Additional information on the income statement
The amounts of net trading gains or losses and other fair value adjustments are included in Note 2 Other operating income. ANZBGL New Zealanddoes not have any loans and advances designated at fair value through profit or loss. Other operating income for the purposes of the Order comprises
net fee and commission income, and all other items of other income (all in Note 2 Other operating income).

26

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITED

Additional information on concentrations of credit risk
Analysis of financial assets by industry is based on Australian and New Zealand Standard Industrial Classification (ANZSIC) codes. The significant
categories shown are the level one New Zealand Standard Industry Output Categories (NZSIOC), except that Agriculture is shown separately as
required by the Order.
Composition of financial instruments that give rise to credit risk by industry group are presented below:
Loans andadvances
NZ$m

Other
financialassets
NZ$m

Off-balance
sheet credit
relatedcommitments
NZ$m

Total
NZ$m

15,391
513
160
2,499
694
915
1,549
2,778
1,088
875
37,467
1,026
196
863
81,731
1,562

86
6
6
157
211
5
38
18
45
15,288
2,104
7
9,168
5
425
93

937
112
260
1,882
1,463
953
1,549
854
624
1,461
1,838
431
832
305
13,734
1,272

16,414
631
426
4,538
2,368
1,873
3,136
3,650
1,757
17,624
41,4091,464
10,196
1,173
95,8902,927

Subtotal
Overseas
Finance and insurance services
Households
All other non-NZ residents

149,307

27,66228,507

205,476

80
1,502
561

13,3048
7

71-

13,455
1,510
568

Subtotal
Gross subtotal
Allowance for ECL
Subtotal
Unearned income
Capitalised brokerage and other origination costs
Maximum exposure to credit risk

2,143
151,450(737)
150,713(23)
477
151,167

13,31940,981
40,981
40,981

71
28,578(133)
28,44528,445

15,533221,009(870)
220,139(23)
477
220,593

As at 31 March 2024
New Zealand residents
Agriculture
Forestry and fishing, agriculture services
MiningManufacturing
Electricity, gas, water and waste services
Construction
Wholesale trade
Retail trade and accommodation
Transport, postal and warehousing
Finance and insurance services
Rental, hiring & real estate services
Professional, scientific, technical, administrative and support services
Public administration and safety
Health care and social assistance
Households
All other New Zealand residents1

1

All other New Zealand residents includes exposures to information media and telecommunications, education and training; arts and recreation services; and other services.

27

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDREGISTERED BANK DISCLOSURES
Additional information on concentrations of funding
Analysis of funding liabilities by industry is based on ANZSIC codes. The significant categories shown are the level one NZSIOC.
As at 31 March 2024

Note

NZ$m

6

135,367

Funding composition
Customer deposits

Wholesale funding
Debt issuances

16,465

Certificates of deposit and commercial paper

5,399

Other borrowings

7,120

Total wholesale funding

28,984

Total deposits and wholesale funding

164,351

Customer deposits by industry - New Zealand residents
Agriculture, forestry and fishing
Mining4,426
203

Manufacturing

2,866

Construction

2,983

Wholesale trade

2,412

Retail trade and accommodation

2,293

Transport, postal and warehousing

1,437

Financial and insurance services

13,648

Rental, hiring and real estate services

3,602

Professional, scientific, technical, administrative and support services

6,526

Public administration and safety

1,727

Health care and social assistance

1,628

Arts, recreation and other services

2,426Households

76,308All other New Zealand residents1

3,039

Subtotal

125,524

Customer deposits by industry - overseas
Households
All other non-NZ residents
Subtotal
Total customer deposits

9,086
757
9,843
135,367

Wholesale funding (financial and insurance services industry)
New Zealand

7,098

Overseas

21,886

Total wholesale funding

28,984

Total deposits and wholesale funding

164,351

Concentrations of funding by geography
New Zealand

132,622

Australia

3,364

United States

12,402Europe8,903

Other countries
Total deposits and wholesale funding
1

28

All other New Zealand residents includes electricity, gas, water and waste services; information media and telecommunications; and education and training.

7,060
164,351

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITED

Additional information on interest rate sensitivity
The following table represents the interest rate sensitivity of ANZBGL New Zealand's assets, liabilities and off-balance sheet instruments by showing
the periods in which these instruments may reprice, that is, when interest rates applicable to each asset or liability can be changed.

As at 31 March 2024
AssetsCash and cash equivalents
Settlement balances receivable
Collateral paid
Trading securities
Derivative financial instruments
Investment securities
Net loans and advances
Other financial assets
Total financial assets
Liabilities
Settlement balances payable
Collateral received
Deposits and other borrowings
Derivative financial instruments
Debt issuances
Lease liabilities
Other financial liabilities
Total financial liabilities
Hedging instruments
Interest sensitivity gap
1

Total
NZ$m

Up to
3 months
NZ$m

Over 3 to
6 months
NZ$m

Over 6 to
12 months
NZ$m

Over 1 to
2 years
NZ$m

Over
2 years
NZ$m

Not bearing
interest1
NZ$m

12,918
651
709
5,783
8,490
11,609151,167
1,018
192,345

12,552
709
1,041
297
65,111
79,71014026422,47822,88299
152
31,94732,198684
970
23,021
24,675

3,819
9,924
8,846
22,589

366
651
8,490
2
(236)
1,018
10,2913,543
1,003
147,886
7,839
16,465
190
1,944
178,870
13,475

2,026
1,003
90,521
1,078
11
689
95,3289,749(5,869)18,72312
18,735(750)
3,397

15,0381,995
23
17,056(12,656)
2,486

2,913
390
41
3,344
(4,216)
17,1153,437
13,002
103
16,542
7,873
13,9201,517
17,254
7,839
1,255
27,865(17,574)

Excludes non-coupon bearing discount financial assets and financial liabilities which are shown as repricing on their maturity date.

Additional information on liquidity risk

Maturity analysis of financial liabilities
The table below provides residual contractual maturity analysis of financial liabilities at 31 March 2024 within relevant maturity groupings. All
outstanding debt issuances are profiled on the earliest date on which ANZBGL New Zealand may be required to pay. The amounts represent principal
and interest cash flows – so they may differ from equivalent amounts reported on the balance sheet.

As at 31 March 2024

OndemandNZ$mLess than
3 months
NZ$m

3 to 12months
NZ$m

1 to 5
years
NZ$m

After
5 years
NZ$m

Total
NZ$m

2,875

694

-

-

-

3,569

Settlement balances payable
Collateral received

-

1,003

-

-

-

1,003

77,845

26,79636,505

9,907-

151,053

Derivative financial liabilities (trading)

-

7,761

-

-

-

7,761

Debt issuances1

-

99

3,401

13,2352,191

18,926

Lease liabilities

-

13

39

138

17

207

Other financial liabilities

-

5

34

554

510

1,103

- gross inflows

-

2,089

4,366

8,631

1,133

16,219- gross outflows-(2,079)(4,524)(9,059)(1,116)(16,778)

Deposits and other borrowings

Derivative financial instruments(balance sheet management)

1

Any callable wholesale debt instruments have been included at their next call date.

At 31 March 2024, NZ$28,578 million of its credit related commitments and contingent liabilities mature in less than 1 year, based on the earliest dateon which ANZBGL New Zealand may be required to pay.

29

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDREGISTERED BANK DISCLOSURES
Liquidity portfolio management
ANZBGL New Zealand holds a diversified portfolio of cash and high quality liquid securities primarily to support liquidity risk management. The size of
ANZBGL New Zealand’s liquidity portfolio is determined with consideration of the amount required to meet the requirements of its internal andregulatory liquidity scenario metrics.
As at 31 March 2024

NZ$m

Central and local government bonds
Government treasury bills
Certificates of deposit
Other bonds
Securities eligible to be accepted as collateral in repurchase transactions
Cash and balances with central banks
Total liquidity portfolio

7,264
826
278
8,308
16,676
12,26228,938Assets held in ANZBGL New Zealand’s liquidity portfolio are all denominated in New Zealand dollars and include balances held with RBNZ andsecurities issued by the New Zealand Government, supranational agencies, highly rated banks, state owned enterprises, local authorities (including
through a funding authority) and highly rated corporates.
The Bank also held unencumbered internal residential mortgage backed securities (RMBS) which would be accepted as collateral by RBNZ in
repurchase transactions. These holdings would entitle the Bank to enter into repurchase transactions with RBNZ with a value of NZ$10,726 million at
31 March 2024 (30 September 2023: NZ$10,776 million).
RBNZ Term Lending Facility (TLF) and Funding for Lending Programme (FLP)• Between May 2020 and July 2021, RBNZ made funds available under the TLF to promote lending to businesses. The TLF is a five-year secured
funding facility for New Zealand banks at a fixed rate of 0.25%.
•

Between December 2020 and December 2022, RBNZ made funds available under the FLP to lower the cost of borrowing for New Zealandbusinesses and households. The FLP is a three-year secured funding facility for New Zealand banks at a floating rate of the New Zealand Official
Cash Rate (OCR).

As at 31 March 2024, the Bank had drawn NZ$271 million (30 September 2023: NZ$300 million) under the TLF and NZ$3,500 million under the FLP (30September 2023: NZ$3,500 million). These amounts are included in securities sold under repurchase agreements in Note 6 Deposits and otherborrowings.
Overseas Banking Group Profitability and Size
31 Mar 24
3,464
0.62%
1,090,138-1.93%Net profit after tax for the six months ended 31 March 2024 (AUDm)1
Net profit after tax for the 12 months ended 31 March 2024 as a percentage of average total assets
Total assets (AUDm)
Percentage change in total assets in the 12 months to 31 March 2024
1

Net profit after tax for the six months ended 31 March 2024 includes AUD 14 million of profit attributable to non-controlling interests.

Reconciliation of mortgage related amounts
As at 31 March 2024
Term loans - housing1
Less: housing loans made to corporate customers
On-balance sheet residential mortgage exposures (per LVR analysis)
Add: off-balance sheet residential mortgage exposures (per LVR analysis)
Total residential mortgage exposures (per LVR analysis)
130Term loans – housing includes loans secured over residential property for owner-occupier, residential property investment and business purposes.

Note
4
B4
B4
B4

NZ$m
109,474(1,335)
108,139
9,586
117,725

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITED

B3. ASSET QUALITY
This section should be read in conjunction with the estimates, assumptions and judgements included in Note 1 About our interim financial
statements, Note 5 Allowance for expected credit losses and Note 8 Credit risk.
Movements in components of loss allowance

Net loans and advances
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Write-backs
Recoveries of amounts previously written off
Credit impairment charge / (release)
Bad debts written-off (excluding recoveries)
Add back recoveries of amounts previously written off
Discount unwind
As at 31 March 2024

Stage 1
NZ$m
193
35
(27)
8
201

Stage 3
Collectively IndividuallyStage 2
assessedassessed
NZ$m
NZ$m
NZ$m
398
79
60
(42)
3
4
9
42
40
(31)
(6)
(33)
45
7
(20)
6
(6)
365
124
47

Total
NZ$m
730
64
(31)
(6)
27
(20)
6
(6)
737

Off-balance sheet credit related commitments
As at 1 October 2023
Transfer between stages
New and increased provisions (net of releases)
Credit impairment charge / (release)

80
4
(12)

39
(4)
22

3
-

5
(4)

127
6

(8)
72

18
57

3

(4)
1

6
133

Gross loans and advances
As at 1 October 2023
Net transfers in to each stage
Amounts drawn from new or existing facilities
Additions
Net transfers out of each stage
Amounts repaid
Deletions
Amounts written off
As at 31 March 2024
Loss allowance as at 31 March 2024

137,626
16,751
16,751(1,716)(14,449)(16,165)
138,212201

11,120
1,094
703
1,797
(1,330)(1,330)
11,587
365

893
597
15
612
(145)
(145)
1,360
124

287
25
170
195
(171)
(171)
(20)
291
47

149,926
1,716
17,63919,355(1,716)(16,095)(17,811)(20)
151,450
737

Off-balance sheet credit related commitments
As at 1 October 2023
Net transfers in to each stage
New and increased facilities and drawn amounts repaid
Additions
Net transfers out of each stage
Reduced facilities and amounts drawn
Deletions
As at 31 March 2024
Loss allowance as at 31 March 2024

27,439
3,695
3,695
(306)
(3,792)(4,098)27,036
72

1,137
297
240
537
(158)
(158)
1,516
57

15
9
3
12
(9)
(9)
18
3

13
(5)
(5)
8
1

28,604
306
3,938
4,244
(306)
(3,964)(4,270)28,578133

As at 31 March 2024
Impacts of changes in gross financial assets on loss allowances

Explanation of how changes in the gross carrying amounts of gross loans and advances contributed to changes in loss allowance
Overall, loss allowances are 0.48% of gross balances as at 31 March 2024, unchanged from 0.48% as at 30 September 2023. The NZ$13 million (1.5%)
increase in loss allowances was driven by an increase in the proportion of gross balances in Stage 2 and Stage 3, and changes in the forward-looking
economic scenarios as described in Note 5 Allowance for expected credit losses, offset by a release of management temporary adjustments.

31

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITEDREGISTERED BANK DISCLOSURES
Past due assets and other asset quality information
Total
NZ$m

As at 31 March 2024
Past due assets
Less than 30 days past due
At least 30 days but less than 60 days past due
At least 60 days but less than 90 days past due
At least 90 days past due
Total past due but not individually impaired

1,130
425
368
877
2,800

Other asset quality information
Undrawn facilities with individually impaired customers
Other assets under administration

8
9

ANZBGL New Zealand does not have any loans and advances designated at fair value.
Overseas Banking Group asset quality
31 Mar 24

As at
Individually impaired assets (AUDm)
Individually impaired assets as a percentage of total assets
Individual credit impairment allowance (AUDm)
Individual credit impairment allowance as a percentage of individually impaired assets
Collective credit impairment allowance (AUDm)

929
0.1%
325
35.0%
4,046

B4. CREDIT AND MARKET RISK EXPOSURES AND CAPITAL ADEQUACYAPRA Basel III capital ratios

As at 31 March
Common equity tier 1 capital
Tier 1 capital
Total capital

Ultimate Parent Bank
Overseas Banking Group (Extended Licensed Entity)
2024
2023
2024
2023
13.2%
12.9%
13.5%
13.4%
15.1%
15.2%
15.4%
15.7%
20.6%
21.6%
21.9%
23.3%

The Ultimate Parent Bank and the Overseas Banking Group are required to hold minimum capital as determined by APRA’s capital framework, which is
at least equal to that specified under the internationally agreed Basel III framework.
APRA has authorised the Ultimate Parent Bank and the Overseas Banking Group to use:
• the Internal Ratings Based (IRB) methodology for calculation of credit risk weighted assets. Where the Overseas Banking Group is not accredited
to use the IRB methodology the Overseas Banking Group applies the standardised approach.
• the Standardised Measurement Approach (SMA) for the operational risk weighted asset equivalent.
The Overseas Banking Group exceeded the minimum capital requirements set by APRA as at 31 March 2024 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 31 March 2024. The Overseas Banking Group’s Pillar 3
disclosure document for the quarter ended 31 March 2024, 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.

32

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

UNAUDITED

Market risk
ANZBGL New Zealand’s aggregate market risk exposures below have been calculated in accordance with the RBNZ document BPR140: Market Risk.
The peak end-of-day market risk exposures are for the six months ended 31 March 2024.

As at 31 March 2024
Interest rate risk
Foreign currency risk
Equity risk

Implied risk weighted
exposure
Period end
Peak
NZ$m
NZ$m
5,791
6,289
45
83
1
1

Notional capital charge
Period end
Peak
NZ$m
NZ$m
463
503
4
7
-

Additional mortgage information
As required by RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by ANZBGL 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 aswell as commitments to lend. Commitments to lend are formal offers for housing lending which have been accepted by the customer.

As at 31 March 2024
LVR range
Does not exceed 60%
Exceeds 60% and not 70%
Exceeds 70% and not 80%
Does not exceed 80%
Exceeds 80% and not 90%
Exceeds 90%
Total

On-balance Off-balance
sheet
sheet
NZ$m
NZ$m
57,84520,001
22,888100,734
5,696
1,709
108,139

7,242
1,037
1,026
9,305
108
173
9,586

Total
NZ$m
65,087
21,03823,914110,0395,804
1,882
117,725

B5. INSURANCE BUSINESSAs at 31 March 2024, ANZBGL New Zealand does not conduct any insurance business.

B6. RISK MANAGEMENT POLICIESDuring the six months ended 31 March 2024, ANZBGL New Zealand elevated Climate Risk to Material Risk status. A dedicated Climate Risk
Management team, with oversight from the Material Risk Owners, are working to integrate and embed Climate Risk into ANZBGL New Zealand’s Risk
Management Framework through existing policies, processes and governance frameworks.
Climate Risk is the risk that arises from the changing climate and from the global transition towards a lower emissions economy. The key elements of
Climate Risk are:• Physical Risk – Includes both longer-term changes in climate (chronic risk) as well as changes to the frequency and magnitude of extreme
weather events (acute risk). Examples of chronic physical risk drivers include rising sea levels, rising average temperatures and ocean
acidification. Examples of acute physical risk drivers include heatwaves, floods, bushfires, and cyclones.
•

Transition Risk – The risk of transitioning to a lower emissions economy, including changes in domestic and international policy and regulatory
settings, technological innovation, social adaptation, the market, as well as the heightened risk of litigation (e.g. greenwashing).

Climate Risk is considered a ‘cross-cutting’ risk; while Climate Risk primarily manifests as a Financial Risk, notably through Credit Risk, it may alsoheighten other Financial Risks and Non-Financial Risks. For example, non-financial impacts could arise from non-compliance with current andemerging regulatory expectations, damage to ANZBGL New Zealand’s physical assets or business disruption caused by extreme weather events orchronic changes to weather patterns. ANZBGL New Zealand may also face legal proceedings and suffer reputational damage, for example, if it acts oris perceived to act inconsistently with public commitments in relation to climate change.

33

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALANDDIRECTORS' AND NEW ZEALAND CHIEF EXECUTIVE OFFICER'S STATEMENT
As at the date on which this Disclosure Statement is signed, after due enquiry, each Director of the Ultimate Parent Bank and the Chief Executive
Officer – NZ Branch believes that:•

The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements (Overseas Incorporated
Registered Banks) Order 2014; and•The Disclosure Statement is not false or misleading.

Over the six months ended 31 March 2024, after due enquiry, each Director of the Ultimate Parent Bank and the Chief Executive Officer – NZ Branchbelieves that:•

The Ultimate Parent Bank has complied in all material respects with each condition of registration that applied during that period1; and•The NZ Branch and the Bank had systems in place to monitor and control adequately the material risks of Relevant Members of ANZBGL New
Zealand including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and other business risks, and thatthose systems were being properly applied.

1.

In accordance with the Order, the Ultimate Parent Bank has complied in all material respects with each of its conditions of registration that applied during the period if the RBNZ has not
published any information about a breach on its website, and has not notified the Ultimate Parent Bank of any material breach.

Signed by the Chief Executive Officer – NZ Branch

Chris O‘Neale
Chief Executive Officer – NZ Branch
6 May 2024
Signed on behalf of all the Directors of the Ultimate Parent Bank

Antonia Watson
Responsible Person
6 May 2024
on behalf of the Directors of the Ultimate Parent Bank:John Cincotta
Shayne Elliott
Richard Gibb
Jane Halton, AO PSM
Graham Hodges
Holly Kramer
Christine O’Reilly
Paul O’Sullivan
Jeff Smith
Scott St John

34

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

LIMITED ASSURANCE REPORTS

INDEPENDENT AUDITOR’S REPORTS ON THE REGISTERED BANK DISCLOSURESTO THE DIRECTORS OF AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITEDREVIEW REPORT ON THE REGISTERED BANK DISCLOSURES IN SECTIONS B2, B3, B5 AND B6CONCLUSION
We have completed a review of the accompanying registered bank disclosures of the New Zealand business of Australia and New Zealand
Banking Group Limited (ANZBGL) and its subsidiaries (ANZBGL New Zealand) in sections B2, B3, B5 and B6 on pages 26 to 33. These comprise theinformation that is required to be disclosed in accordance with schedules 5, 7, 12 and 14 of the Registered Bank Disclosure Statements (Overseas
Incorporated Registered Banks) Order 2014 (the Order).
Based on our review, nothing has come to our attention that causes us to believe that the registered bank disclosures in sections B2, B3, B5 and B6:• do not present fairly, in all material respects, the matters to which they relate; or• are not disclosed, in all material respects, in accordance with schedules 5, 7, 12 and 14 of the Order.

BASIS FOR CONCLUSION
A review of the registered bank disclosures in sections B2, B3, B5 and B6 in accordance with NZ SRE 2410 Review of Financial Statements Performed by
the Independent Auditor of the Entity (NZ SRE 2410) is a limited assurance engagement. The auditor performs procedures, consisting of making
enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

As the auditor of ANZBGL New Zealand, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual
financial statements.
Our firm has also provided other services to ANZBGL New Zealand in relation to review of regulatory returns, internal controls reports, prospectus
assurance, agreed upon procedures and other assurance engagements. Subject to certain restrictions, partners and employees of our firm may also
deal with ANZBGL New Zealand on normal terms within the ordinary course of trading activities of the business of ANZBGL New Zealand. These
matters have not impaired our independence as reviewer of ANZBGL New Zealand. The firm has no other relationship with, or interest in, ANZBGLNew Zealand.
USE OF THIS INDEPENDENT REVIEW REPORTThis independent review report is made solely to ANZBGL’s directors. Our review work has been undertaken so that we might state to the directors
those matters we are required to state to them in the independent review report and for no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than the directors for our review work, this independent review report, or any of the opinions
we have formed.
RESPONSIBILITIES OF THE DIRECTORS FOR THE REGISTERED BANK DISCLOSURES IN SECTIONS B1, B2, B3, B5 AND
B6The Directors, on behalf of ANZBGL New Zealand, are responsible for:• the preparation and fair presentation of the registered bank disclosures in accordance with schedules 3, 5, 7, 12 and 14 of the Order; and• implementing necessary internal control to enable the preparation of registered bank disclosures that free from material misstatement, whether
due to fraud or error.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE REGISTERED BANK DISCLOSURES IN SECTIONS B2, B3, B5
AND B6
Our responsibility is to express a conclusion on the registered bank disclosures in sections B2, B3, B5 and B6 based on our review. We conducted ourreview in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to believethat the registered bank disclosures in sections B2, B3, B5 and B6:• do not present fairly, in all material respects, the matters to which they relate; or• are not disclosed, in all material respects, in accordance with schedules 5, 7, 12 and 14 of the Order; or• if applicable, have not been prepared, in all material respects, in accordance with any conditions of registration relating to disclosure
requirements, imposed under section 74(4)(c) of the Banking (Prudential Supervision) Act 1989 (ANZBGL does not have any such conditions).
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards
on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not
express an audit opinion on the registered bank disclosures in sections B2, B3, B5 and B6.

KPMG
Auckland6 May 2024
35

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

LIMITED ASSURANCE REPORTS
LIMITED ASSURANCE REPORT ON THE CREDIT AND MARKET RISK EXPOSURES AND CAPITAL ADEQUACYDISCLOSURES IN SECTION B4
CONCLUSION
We have reviewed the credit and market risk exposures and capital adequacy disclosures in section B4 on page 33 (the Capital Adequacy
Disclosures), which comprise the information that is required to be disclosed in accordance with schedule 9 of the Order.
Based on our limited assurance conclusion, which is not a reasonable assurance engagement or audit, nothing has come to our attention thatwould lead us to believe that the Capital Adequacy Disclosures are not, in all material respects disclosed in accordance with schedule 9 of the Order.

STANDARDS WE FOLLOWED
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (New Zealand) 3000
(Revised) Assurance Engagements other than audits or reviews of historical financial information and Standard on Assurance Engagements 3100
(Revised) Assurance Engagements on Compliance. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our conclusion. In accordance with those standards we:• used our professional judgement to plan and perform the engagement to obtain limited assurance that the Capital Adequacy Disclosures are freefrom material misstatement and non-compliance, whether due to fraud or error;• considered relevant internal controls when designing our assurance procedures, however we do not express a conclusion on the effectiveness ofthese controls; and• ensured that the engagement team possess the appropriate knowledge, skills and professional competencies.
HOW TO INTERPRET LIMITED ASSURANCE AND MATERIAL MISSTATEMENT AND NON-COMPLIANCE
In a limited assurance engagement, the assurance practitioner performs procedures, primarily consisting of discussion and enquiries ofmanagement and others within the entity, as appropriate, and observation and walk-throughs, and evaluates the evidence obtained. The
procedures selected depend on our judgement, including identifying areas where the risk of material misstatement and non-compliance withschedule 9 of the Order is likely to arise.
The procedures performed in a limited assurance engagement vary in nature and timing from and are less in extent than for a reasonable assurance
engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would
have been obtained had a reasonable assurance engagement been performed.
Misstatements, including omissions, within the Capital Adequacy Disclosures and non-compliance are considered material if, individually or in theaggregate, they could reasonably be expected to influence the relevant decisions of the intended users taken on the basis of the Capital Adequacy
Disclosures.
INHERENT LIMITATIONS
Because of the inherent limitations of an assurance engagement, together with the internal control structure it is possible that fraud, error or noncompliance with compliance requirements may occur and not be detected.
USE OF THIS INDEPENDENT LIMITED ASSURANCE REPORTThis independent limited assurance report is made solely to ANZBGL’s directors. Our assurance work has been undertaken so that we might state to
the directors those matters we are required to state to them in the assurance report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume any responsibility to anyone other than the directors for our assurance work, for this independent limited assurance
report, and/or for any of the conclusions we have reached.
DIRECTOR’S RESPONSIBILITY FOR THE CAPITAL ADEQUACY DISCLOSURESThe Directors are responsible for the preparation of the Capital Adequacy Disclosures that are required to be disclosed in accordance withschedule 9 of the Order, which the Directors have determined to meet the needs of the recipients. This responsibility includes such internal control
as the Directors determine is necessary to enable the preparation of the Capital Adequacy Disclosures that are free from material misstatement andnon-compliance whether due to fraud or error.
OUR RESPONSIBILITY FOR THE CAPITAL ADEQUACY DISCLOSURESOur responsibility is to express a conclusion on whether anything has come to our attention that the Capital Adequacy Disclosures have not, in allmaterial respects, been disclosed in accordance with schedule 9 of the Order for the six-month period ended 31 March 2024.

36

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZBGL NEW ZEALAND

LIMITED ASSURANCE REPORTS

OUR INDEPENDENCE AND QUALITY CONTROL
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1 International Code of Ethics for
Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and AssuranceStandards Board, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality andprofessional behaviour.
The firm applies Professional and Ethical Standard 3 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other
Assurance or Related Services Engagements and accordingly maintains a comprehensive system of quality control including documented policies
and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our firm has also provided other services to ANZBGL New Zealand in relation to review of regulatory returns, internal controls reports, prospectus
assurance, agreed upon procedures and other assurance engagements. Subject to certain restrictions, partners and employees of our firm may also
deal with ANZBGL New Zealand on normal terms within the ordinary course of trading activities of the business of ANZBGL New Zealand. These
matters have not impaired our independence as assurance providers of ANZBGL New Zealand for this engagement. The firm has no other relationshipwith, or interest in, ANZBGL New Zealand.

KPMG
Auckland6 May 202437