Australia and New Zealand Banking Group Limited– New Zealand Branch
Disclosure Statement
FOR THE SIX MONTHS ENDED 31 MARCH 2012 | NUMBER 14 ISSUED MAY 2012Australia and New Zealand Banking Group Limited - New Zealand Branch

Disclosure Statement
For the six months ended 31 March 2012

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

2
3
4
5
6
7
22
23

Glossary of Terms
In this Disclosure Statement unless the context otherwise requires:(a) "Bank" means ANZ National Bank Limited;(b) "Banking Group" means ANZ National Bank Limited and all its controlled entities;(c) "Immediate Parent Company" means ANZ Funds Pty Limited, which is the immediate parent company of ANZ Holdings(New Zealand) Limited;(d) "Ultimate Parent Bank" means Australia and New Zealand Banking Group Limited;(e) "Overseas Banking Group" means the worldwide operations of Australia and New Zealand Banking Group Limited
including its controlled entities;(f) “New Zealand business” means all business, operations, or undertakings conducted in or from New Zealand identified
and treated as if it were conducted by a company formed and registered in New Zealand;(g) "NZ Branch" means the New Zealand business of the Ultimate Parent Bank;(h) "ANZ New Zealand" means the New Zealand business of the Overseas Banking Group;(i) "Registered Office" is Level 10, 170-186 Featherston Street, Wellington 6011, New Zealand, which is also ANZ New
Zealand’s address for service;(j) "RBNZ" means the Reserve Bank of New Zealand;(k) "APRA" means the Australian Prudential Regulation Authority;(l) "the Order" means the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order
2012; and(m) Any term or expression which is defined in, or in the manner prescribed by, the Order shall have the meaning given inor prescribed by the Order.

Australia and New Zealand Banking Group Limited - New Zealand Branch

2

General Disclosures
This Disclosure Statement has been issued in accordance with the Order.

Credit Rating Information
The Ultimate Parent Bank has three current credit ratings, which are applicable to its long-term senior unsecured
obligations which are payable in New Zealand in New Zealand dollars.
The Ultimate Parent Bank's Credit Ratings are:Rating Agency

Current Credit Rating

Qualification

Standard & Poor’s

AA-

Outlook Stable

Moody’s Investors Service

Aa2

Outlook Stable

Fitch Ratings

AA-

Outlook Stable

Guarantors
As at the date of signing of this Disclosure Statement, the Ultimate Parent Bank benefits from certain guarantees from theCommonwealth of Australia under:a) in the case of certain deposits and other accounts up to A$1 million, a scheme pursuant to the Banking Act 1959of the Commonwealth of Australia; andb) in the case of certain wholesale funding, a Deed of Guarantee executed by the Treasurer (and related scheme
rules). The Australian Government closed this scheme to new debt securities on 31 March 2010.
As at the date of signing of this Disclosure Statement, the NZ Branch has no obligations guaranteed under these schemes.
New Zealand Guarantee Arrangements
The Crown guarantees specific issuances of wholesale funding of participating New Zealand financial institutions under the
New Zealand Wholesale Funding Guarantee Facility. The Government closed this scheme to new debt securities on 30
April 2010. The NZ Branch does not have a guarantee under this scheme. However, a member of ANZ New Zealand, ANZ
National Bank Limited, has debt securities with a carrying value of $331 million for which the Crown has issued a
Guarantee Eligibility Certificate.
Certain debt securities (“Covered Bonds”) issued by the Bank or its wholly owned subsidiary, ANZ National (Int’l) Limited,
are guaranteed by ANZNZ Covered Bond Trust Limited, solely in its capacity as trustee of ANZNZ Covered Bond Trust (the“Covered Bond Guarantor”). The Covered Bond Guarantor has guaranteed the payment of interest and principal of
Covered Bonds with a carrying value as at 31 March 2012 of $1,898 million, pursuant to a guarantee which is secured
over a pool of assets. The Covered Bond Guarantor’s address for service is Level 10, 141 Willis Street, Wellington, New
Zealand. The Covered Bond Guarantor is not a member of ANZ New Zealand and has no credit ratings applicable to its
long term senior unsecured obligations payable in New Zealand dollars. The Covered Bonds have been assigned a longterm rating of Aaa and AAA by Moody’s Investors Service and Fitch Ratings respectively. Details of the pool of assets that
secure this guarantee are provided in Note 7.

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 Groupwill be provided immediately, free of charge, to any person requesting a copy where the request is made at theRegistered Office. The most recent publicly available financial statements for the Ultimate Parent Bank and Overseas
Banking Group can also be accessed at the internet address anz.com.

Directorate
On 1 April 2012, Ms P J Dwyer was appointed as a non-executive Director of Australia and New Zealand Banking Group
Limited.
There have been no other changes to the Directors of Australia and New Zealand Banking Group Limited since 30
September 2011, the balance date of the last full year Disclosure Statement.

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

3

Income Statement
Unaudited

Unaudited

6 months to

6 months toYear to31/03/2012

31/03/2011

30/09/2011

Interest income

3,276

3,453

6,757

Interest expense

1,915

2,168

4,157

Net interest income

1,361

1,285

2,600

79

140

228

139

126

265

223

108

314

1

1

2

1,803

1,660

3,409

863

910

1,688

940

750

1,721

103

85

190

Profit before income tax

837

665

1,531

Income tax expense

222

187

446

Profit for the period

615

478

1,085

Audited$ millions
Note

Net trading gains
Net funds management and insurance income
Other operating income2

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

2

Profit before provision for credit impairment and income tax
Provision for credit impairment

6

AuditedStatement of Comprehensive Income$ millions

Unaudited

Unaudited

6 months to

6 months toYear to31/03/2012

31/03/2011

30/09/2011

1,085

Profit for the period

615

478

Unrealised gains recognised directly in equity

11

7

72

Realised gains transferred to income statement

(7)

(36)

(38)

Actuarial gain / (loss) on defined benefit schemes

(2)

8

(64)

5

6

11

622

463

1,066

Income tax credit on items recognised directly in equity
Total comprehensive income for the period

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

4

Statement of Changes in Equity$ millions
As at 1 October 2010
Profit after income tax attributable to parent
Valuation gain / (losses) recognised in othercomprehensive income
Losses / (gains) transferred to income
statement

Retainedearnings

Total equity
attributableto owners of
the parent
entityNoncontrolling
entities

Total equity

102

1,236

7,820

1

7,821
478

Ordinaryshare capitaland head
office account

Available-forsale
revaluation
reserve

Cash flow
hedging
reserve

6,424

58

-

-

-

478

478

-

-

11

(4)

-

7

-

7

-

(42)

6

-

(36)

-

(36)

Actuarial gain on defined benefit schemes

-

-

-

8

8

-

8

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

-

8

-

(2)

6

-

6

Total comprehensive income for the period

-

(23)

2

484

463

-

463

Ordinary dividend paid

-

-

-

(215)

(215)

-

(215)

Preference dividend paid

-

-

-

(105)

(105)

-

(105)

As at 31 March 2011 (Unaudited)

6,424

35

104

1,400

7,963

1

7,964

As at 1 October 2010

6,424

58

102

1,236

7,820

1

7,821

-

-

-

1,085

1,085

-

1,085

-

21

51

-

72

-

72

-

(42)

4

-

(38)

-

(38)

Profit after income tax attributable to parent
Valuation gain recognised in othercomprehensive income
Losses / (gains) transferred to income
statement
Actuarial loss on defined benefit schemes

-

-

-

(64)

(64)

-

(64)

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

-

9

(16)

18

11

-

11

Total comprehensive income for the period

-

(12)

39

1,039

1,066

-

1,066

Ordinary dividend paid

-

-

-

(215)

(215)

-

(215)

Preference dividend paid

-

-

-

(206)

(206)

-

(206)

Movement in non-controlling interests

-

-

-

-

-

(1)

(1)

6,424

46

141

1,854

8,465

-

8,465
615

As at 30 September 2011 (Audited)
Profit after income tax attributable to parent

-

-

-

615

615

-

Valuation gain / (losses) recognised in othercomprehensive income

-

26

(15)

-

11

-

11

Gains transferred to income statement

-

-

(7)

-

(7)

-

(7)

Actuarial loss on defined benefit schemes

-

-

-

(2)

(2)

-

(2)

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

-

(1)

6

-

5

-

5

Total comprehensive income for the period

-

25

(16)

613

622

-

622

Preference dividend paid

-

-

-

(85)

(85)

-

(85)

6,424

71

125

2,382

9,002

-

9,002

As at 31 March 2012 (Unaudited)

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

5

Balance Sheet
Unaudited

Unaudited

Audited31/03/2012

31/03/2011

30/09/2011

Liquid assets

2,355

1,799

2,455

Due from other financial institutions

1,907

3,257

3,633

Trading securities

10,904

7,373

9,466

Derivative financial instruments

10,076

10,283

14,294$ millions

Note

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

4

92

57

-

252

793

411
93,613

93,817

95,395Investments backing insurance policyholder liabilities

165

82

97

Insurance policy assets

231

169

200

Shares in associates and jointly controlled entities

100

145

100

Other assets

938

1,624

857

84

222

125

320

331

325

3,497

3,529

3,507

Total assets

124,738

125,059

129,083

Interest earning and discount bearing assets

108,483

107,433

108,126

10,25812,293

12,24770,914

68,34969,23810,363

9,818

14,178

-

-

4

1,819

2,046

2,416

Deferred tax assets
Premises and equipment
Goodwill and other intangible assets

Liabilities
Due to other financial institutions
Deposits and other borrowings
Derivative financial instruments

8

Current tax liabilities
Payables and other liabilities
Provisions

338

377

309

18,541

20,01918,472

Term funding

1,766

1,766

1,766

Loan capital

1,737

2,427

1,988

115,736

117,095

120,618

9,002

7,964

8,465

6,424

6,424

6,424

196

139

187

Retained earnings

2,382

1,400

1,854

Parent shareholder's equity and head office account

9,002

7,963

8,465

-

1

-

Total equity and head office account

9,002

7,964

8,465

Interest and discount bearing liabilities

97,83999,607

98,397

Bonds and notes

Total liabilities (excluding head office account)
Net assets (excluding head office account)Represented by:
Share capital and head office accountReserves

Non-controlling interests

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

6

Condensed Cash Flow Statement$ millions

Unaudited

Unaudited

6 months to

6 months to

AuditedYear to31/03/2012

31/03/2011

30/09/2011

Cash flows from operating activities
Interest received
Interest paid

3,245

3,384

6,661

(1,939)(2,097)(4,088)Other cash inflows provided by operating activities
Other cash outflows used in operating activities

458

444

893

(1,071)(1,033)(1,959)Cash flows from operating profits before changes in operating assets andliabilities

693

698

1,507

Net changes in operating assets and liabilities(3,310)(1,414)

1,575

Net cash flows provided by / (used in) operating activities(2,617)

(716)

3,082

Cash flows from investing activities
Cash inflows provided by investing activities

16

-

69

Cash outflows used in investing activities

(38)

(62)

(119)

Net cash flows used in investing activities

(22)

(62)

(50)

Cash flows from financing activities
Cash inflows provided by financing activities
Cash outflows used in financing activities

2,417

3,617

3,992

(1,961)(1,863)(4,514)

456

1,754

(522)

Net cash flows provided by / (used in) financing activities
Net increase / (decrease) in cash and cash equivalents(2,183)

976

2,510

Cash and cash equivalents at beginning of the period

6,088

3,578

3,578

Cash and cash equivalents at end of the period

3,905

4,554

6,088

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

7

Notes to the Financial Statements
1. Significant Accounting Policies(i) Reporting entity and statement of compliance
These financial statements are for ANZ New Zealand for the six months ended 31 March 2012. They have been preparedin accordance with the requirements of NZ IAS 34 Interim Financial Reporting and the Order, and should be read in
conjunction with ANZ New Zealand’s financial statements for the year ended 30 September 2011.
(ii) Basis of measurement
These financial statements have been prepared on a going concern basis in accordance with historical cost concepts
except that the following assets and liabilities are stated at their fair value:xderivative financial instruments, including in the case of fair value hedging, the fair value of any applicable underlying
exposure;x
financial instruments held for trading;x
financial assets treated as available-for-sale; andxfinancial instruments designated at fair value through profit and loss.
Insurance policy assets are measured using the Margin on Services model, and defined benefit obligations are measured
using the Projected Unit Credit method.
(iii) Changes in accounting policies
The accounting policies adopted by ANZ New Zealand are consistent with those adopted and disclosed in the previous fullyear Disclosure Statement.
(iv) Presentation currency and rounding
The amounts contained in the financial statements are presented in millions of New Zealand dollars, unless otherwise
stated.
(v) Comparatives
Certain amounts in the comparative information have been reclassified to ensure consistency with the current period's
presentation. This includes reclassifying certain investment assets that relate to the insurance business from due fromother financial institutions and available-for-sale assets to investments backing insurance policyholder liabilities to betterreflect the purpose for which the assets are held.
(vi) Basis of aggregation
The basis of aggregation is an addition of individual financial statements of the entities in ANZ New Zealand.
transactions between entities within ANZ New Zealand have been eliminated.

All

2. Other Operating Income and Expenses
Other operating income includes a fair value loss of $5 million (31/03/2011 $114 million loss; 30/09/2011 $123 million
loss) on the revaluation of financial assets and liabilities designated at fair value and on hedging activities. Other
operating income excluding these fair value adjustments is $228 million (31/03/2011 $222 million; 30/09/2011 $437
million).
Operating expenses include costs for the six months ended 31 March 2012 of $84 million (31/03/2011 $141 million;
30/09/2011 $162 million) incurred in relation to the planned move to a single banking technology platform, which is
expected to deliver further operational efficiencies and improved service levels and business outcomes.

Australia and New Zealand Banking Group Limited - New Zealand Branch

8

Notes to the Financial Statements
3. Segmental Analysis
For segment reporting purposes, ANZ New Zealand is organised into three major business segments - Retail, Commercial
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.
Segmental reporting has been updated to reflect minor changes to ANZ New Zealand’s structure. Comparative data has
been adjusted to be consistent with the current period’s segment definitions.
RetailRetail provides banking products and services to individuals through separate ANZ and The National Bank of New Zealand
branded distribution channels. Personal banking customers have access to a wide range of financial services andproducts. Retail contains ANZ New Zealand's wealth businesses which include private banking and investment services
provided to high net worth individuals, the OnePath wealth management and insurance businesses, and other investment
products. This segment also includes other profit centres supporting the Retail segment.
Commercial
Commercial provides services to Business Banking, Commercial & Agri, and UDC customers. Business Banking services
are offered to small enterprises (typically with annual revenues of less than $5 million). Commercial & Agri customers
consist of primarily privately owned medium to large enterprises. ANZ New Zealand's relationship with these businesses
ranges from simple banking requirements with revenue from deposit and transactional facilities, and cash flow lending, tomore complex funding arrangements with revenue sourced from a wider range of products. UDC is principally involved in
the financing and leasing of plant, vehicles and equipment, mainly for small and medium sized businesses, as well as
investment products.
Institutional
Institutional provides financial services to large multi-banked corporations, often global, who require sophisticated productand structuring solutions. The Institutional business unit includes the following specialised units:x Markets - provides foreign exchange, interest rate and commodity trading and sales-related services, origination,
underwriting, structuring, risk management and sale of credit and derivative products globally;x Transaction Banking - provides cash management, trade finance and international payments;
x Global Loans - provides origination, credit analysis, structuring and execution of specific customer transactions.
Other
Other includes treasury and back office support functions, none of which constitutes a separately reportable segment.
Business segment analysis1$ millions

RetailCommercial

Institutional

Other 2

Total

Unaudited 6 months to 31/03/2012
External revenues

840

1,416

378

(831)

1,803

(110)

(672)

(44)

826

-

Total revenues

730

744

334

(5)

1,803

Profit before income tax

278

424

239

(104)

837

External revenues

944

1,521

242

(1,047)

1,660Intersegment revenues

(189)

(770)

69

890

-

Total revenues

755

751

311

(157)

1,660

Profit before income tax

301

438

235

(309)

665

Intersegment revenues

Unaudited 6 months to 31/03/2011

Audited year to 30/09/2011
External revenues

1,796

2,945

563

(1,895)

3,409Intersegment revenues(338)(1,459)

82

1,715

-

Total revenues

1,458

1,486

645

(180)

3,409

539

848

495

(351)

1,531

Profit before income tax
1
2

Intersegment transfers are accounted for and determined on an arm's length or cost recovery basis.
This segment has negative external revenues as this segment incurs funding costs on behalf of ANZ New Zealand and is reimbursed internally.

Australia and New Zealand Banking Group Limited - New Zealand Branch

9

Notes to the Financial Statements
4. Net Loans and Advances
Unaudited

Unaudited

Audited31/03/2012

31/03/2011

30/09/2011

Overdrafts

1,986

2,083

1,847

Credit card outstandings

1,410

1,386

1,367

Term loans - housing

53,64753,88253,547

Term loans - non-housing

37,321

38,59537,398Finance lease receivables

800

749

768

$ millions

Note

Gross loans and advances
Provision for credit impairment

6

Unearned finance income
Fair value hedge adjustment
Deferred fee revenue and expenses
Capitalised brokerage/mortgage origination fees
Total net loans and advances

95,16496,69594,927(1,150)(1,290)(1,183)

(259)

(263)

(256)

62

263

134

(55)

(54)

(51)

55

44

42

93,817

95,39593,613

5. Impaired Assets, Past Due Assets and Other Assets Under Administration$ millions

RetailOther retail

Non retailmortgages

exposures

exposures

Total

Balance at the beginning of the period

517

61

1,194

1,772

Transfers from productive

176

61

341

578

Transfers to productive

(34)

(1)

(92)

(127)

Unaudited 31/03/2012

Assets realised or loans repaid

(203)

(26)

(243)

(472)

Write offs

(35)

(43)

(47)

(125)

Total individually impaired assets

421

52

1,153

1,626

Balance at the beginning of the period

554

81

1,403

2,038

Transfers from productive

287

71

453

811

Transfers to productive

(30)

-

(16)

(46)

Assets realised or loans repaid

(210)

(30)

(253)

(493)

Write offs

(36)

(51)

(96)

(183)

Total individually impaired assets

565

71

1,491

2,127

Unaudited 31/03/2011

Audited 30/09/2011
Balance at the beginning of the period

554

81

1,403

2,038

Transfers from productive

527

158

774

1,459

Transfers to productive

(83)

(1)

(101)

(185)

Assets realised or loans repaid

(407)

(71)

(691)

(1,169)

Write offs

(74)

(106)

(191)

(371)

Total individually impaired assets

517

61

1,194

1,772

Australia and New Zealand Banking Group Limited - New Zealand Branch

10

Notes to the Financial Statements
Credit quality of financial assets that are past due but not impaired
A large portion of retail credit exposures, such as residential mortgages, are generally well secured. That is, the fair valueof associated security should be sufficient to ensure that ANZ New Zealand will recover the entire amount owing over thelife of the facility and there is reasonable assurance that collection efforts will result in payment of the amounts due in atimely manner.

Ageing analysis of loans that are past due but not impaired$ millions

RetailOther retail

Non retailmortgages

exposures

exposuresTotal

1 to 5 days

464

145

525

1,134

6 to 29 days

491

102

77

670

1 to 29 days

955

247

602

1,804

30 to 59 days

243

44

282

569

60 to 89 days

57

19

58

134

90 days or over

120

47

128

295

1,375

357

1,070

2,802

Unaudited 31/03/2012

Other assets under administration
Other assets under administration are any loans, not being impaired or 90 days or more past due, where the customer isin any form of voluntary or involuntary administration, including receivership, liquidation, bankruptcy or statutory
management.
$ millions

RetailOther retail

Non retailmortgages

exposures

exposures

Other assets under administration

-

-

9

9

Undrawn facilities with impaired customers

-

-

28

28

Other assets under administration

-

-

12

12

Undrawn facilities with impaired customers

-

-

46

46

Other assets under administration

-

-

6

6

Undrawn facilities with impaired customers

-

-

26

26

Total

Unaudited 31/03/2012

Unaudited 31/03/2011

Audited 30/09/2011

Australia and New Zealand Banking Group Limited - New Zealand Branch

11

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

RetailOther retail

Non retailmortgages

exposures

exposures

Total

Unaudited 31/03/2012
Collective provision
Balance at beginning of the period

130

147

395

672

Credit to income statement

(5)

(20)

(8)

(33)

Balance at end of the period

125

127

387

639

165

36

310

511

21

26

89

136

Individual provision (individually impaired assets)
Balance at beginning of the period
Charge to income statement
Recoveries of amounts previously written off

1

8

5

14

(35)

(43)

(47)

(125)

Discount unwind

(8)

(1)

(16)

(25)

Balance at end of the period

144

26

341

511

Total provision for credit impairment

269

153

728

1,150

Collective provision credit

(5)

(20)

(8)

(33)

Individual provision charge

21

26

89

136

Total charge to income statement

16

6

81

103

122

149

533

804

(5)

1

(62)

(66)

117

150

471

738

Balance at beginning of the period

218

50

348

616

Charge to income statement

15

38

98

151

Bad debts written off

Unaudited 31/03/2011
Collective provision
Balance at beginning of the period
Charge / (credit) to income statement
Balance at end of the period
Individual provision (individually impaired assets)

Recoveries of amounts previously written off

-

9

1

10

Bad debts written off

(36)

(51)

(96)

(183)

Discount unwind

(9)

(1)

(32)

(42)

Balance at end of the period

188

45

319

552

Total provision for credit impairment

305

195

790

1,290

Collective provision charge / (credit)

(5)

1

(62)

(66)

Individual provision charge

15

38

98

151

Total charge to income statement

10

39

36

85

122

149

533

804

8

(2)

(138)

(132)

130

147

395

672

Balance at beginning of the year

218

50

348

616

Charge to income statement

37

79

206

322

Audited 30/09/2011
Collective provision
Balance at beginning of the year
Charge / (credit) to income statement
Balance at end of the year
Individual provision (individually impaired assets)

Recoveries of amounts previously written off

2

17

3

22

Bad debts written off

(74)

(106)

(191)

(371)

Discount unwind

(18)

(4)

(56)

(78)

Balance at end of the year

165

36

310

511

Total provision for credit impairment

295

183

705

1,183

Collective provision charge / (credit)

8

(2)

(138)

(132)

Individual provision charge

37

79

206

322

Total charge to income statement

45

77

68

190

Australia and New Zealand Banking Group Limited - New Zealand Branch

12

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

Trading securities encumbered through repurchase agreements

Unaudited

Unaudited

Audited31/03/2012

31/03/2011

30/09/2011

1,219

23

396

Residential mortgages pledged as security for covered bonds

3,831

-

-

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

2,105

2,164

2,007

Total financial assets pledged as collateral

5,959

2,560

3,226

ANZNZ Covered Bond Trust
The assets of ANZNZ Covered Bond Trust are made up of certain housing loans and related securities originated by the
Bank which are security for the guarantee by ANZNZ Covered Bond Trust Limited as trustee of ANZNZ Covered Bond Trustof issuances of covered bonds by the Bank, or its wholly owned subsidiary ANZ National (Int’l) Limited, from time to time.
The assets of ANZNZ Covered Bond Trust are not available to creditors of the Bank, although the Bank (or its liquidator or
statutory manager) may have a claim against the residual assets of ANZNZ Covered Bond Trust (if any) after all prior
ranking creditors of ANZNZ Covered Bond Trust have been satisfied.
The assets of ANZNZ Covered Bond Trust do not qualify for derecognition from ANZ New Zealand’s financial statements as
the Bank retains substantially all of the risks and rewards of the transferred assets.

8. Deposits and Other Borrowings$ millions

Note

Certificates of deposit

Unaudited

Unaudited

Audited31/03/2012

31/03/2011

30/09/2011

2,277

2,666

2,454

Term deposits

33,73835,67833,799Demand deposits bearing interest

23,68020,095

21,589

5,305

5,455

5,118

1,456

1,584

1,488

-

10

-

4,458

2,861

4,790

70,914

68,34969,238Deposits not bearing interest
Secured debenture stock
Securities sold under agreement to repurchase
Commercial paper
Total deposits and other borrowings

7

9. Related Party Transactions$ millions

Unaudited

Unaudited

Audited31/03/2012

31/03/2011

30/09/2011

Total due from related parties

2,279

3,941

3,081

Total due to related parties

18,092

19,306

20,832

Australia and New Zealand Banking Group Limited - New Zealand Branch

13

Notes to the Financial Statements
10. Capital Adequacy
Overseas Banking Group Basel II capital adequacy ratio (Unaudited)
Ultimate Parent Bank
(Extended Licensed Entity)

Overseas Banking Group
31/03/2012

31/03/2011

30/09/2011

31/03/2011

30/09/2011

Tier One Capital

11.3%

10.5%

10.9%

11.4%

11.5%

Total Capital

12.6%

12.1%

12.1%

12.6%

12.3%

For calculation of minimum capital requirements under Pillar I of the Basel II Accord, APRA has accredited the Ultimate
Parent Bank to use the Advanced Internal Ratings Based ("AIRB") methodology for calculation of credit risk weighted
assets and the Advanced Measurement Approach ("AMA") for the operational risk weighted asset equivalent.
Under prudential regulations, the Ultimate Parent Bank is required to hold a minimum Prudential Capital Ratio ("PCR") as
determined by APRA. The APRA minimum PCR is at least equal to the levels specified under the Basel II (internal models
based) approach. The Ultimate Parent Bank exceeded the minimum capital adequacy requirements set by APRA as at 31
March 2012 and for the comparative prior periods.
The Ultimate Parent Bank is required to publicly disclose Pillar III financial information as at 31 March 2012. The Ultimate
Parent Bank's Consolidated Financial Report, Dividend Announcement and Appendix 4E, for the six months ended to 31
March 2012, discloses capital adequacy ratios calculated under the Basel II methodology. The Ultimate Parent Bank also
prepares a quarterly Basel II Pillar III disclosure document, the APS 330. All these documents can be accessed at thewebsite anz.com.
Market risk
The aggregate market risk exposures below have been calculated in accordance with the RBNZ document entitled ‘Capital
Adequacy Framework (Internal Models Based Approach)’ (“BS2B”).
The peak end-of-day market risk exposures for the period are calculated separately for each category of exposure.

Implied risk weighted
exposure

Aggregate capital charge

Unaudited

As at

Peak

As at

Peak

31/03/2012

$m

$m

$m

$m

4,352

4,432

348

355

27/03/2012

37

57

3

5

25/11/2011

118

119

9

10

15/03/2012

Interest rate risk
Foreign currency risk
Equity risk

4,507

360

Peak
occurred on

Australia and New Zealand Banking Group Limited - New Zealand Branch

14

Notes to the Financial Statements
Retail mortgages by loan-to-valuation ratio (“LVR”)
As required by the RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by ANZ
New Zealand's valuation of the security property at origination of the exposure. Off balance sheet exposures include
undrawn and partially drawn residential mortgage loans as well as commitments to lend. Commitments to lend are formal
offers for housing lending which may or may not be accepted by the customer.
Unaudited 31/03/2012

On-balancesheet

Off-balance
sheet

Total

0% - 59%

20,2483,308

23,556

60% - 69%

8,346

950

9,296

70% - 79%

11,674

1,157

12,831Less than 80%$ millions

LVR range

40,268

5,415

45,68380% - 89%

6,846

899

7,745

Over 90%

4,345

287

4,632

51,4596,601

58,060Note

31/03/2012

453,647

Total

Reconciliation of mortgage related amounts
Unaudited$ millions

Term loans - housing
Plus: short term housing loans classified as overdrafts

481

Less: housing loans made to corporate customers(2,669)On-balance sheet retail mortgage exposures subject to the IRB approach

51,459Off-balance sheet retail mortgage exposures subject to the IRB approach

6,601

Total retail mortgage exposures subject to the IRB approach (as per LVR analysis)

58,060Australia and New Zealand Banking Group Limited - New Zealand Branch

15

Notes to the Financial Statements
11. Financial Risk Management
Concentrations of credit risk
Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities
within the same geographic region, or when they have similar risk characteristics that would cause their ability to meet
contractual obligations to be similarly affected by changes in economic or other conditions.
Concentrations of credit risk analysis
Unaudited 31/03/2012$ millions

Liquid assets
and due fromother financial
institutions

Tradingsecurities andavailable-forsale assets

Derivative
financial
instruments

Net loans and Other financial
advances
assetsCredit related
commitments

Total

19,098Industry
Agriculture

-

-

66

16,94499

1,989

Forestry, fishing and mining

37

-

6

714

4

343

1,104

Business and property services

15

-

49

8,424

49

2,446

10,983

Construction

-

-

2

864

5

1,018

1,889

Entertainment, leisure and tourism

-

-

31

1,101

6

462

1,600

Finance and insurance

2,204

4,079

8,772

761

270

1,122

17,208Government and local authority1

11,861

1,865

6,943

356

1,221

251

1,225

Manufacturing

27

5

106

2,967

17

3,181

6,303

Personal lending

-

-

36

55,533273

9,734

65,576

Retail trade

22

3

45

1,573

9

954

2,606

Transport and storage

26

57

78

1,631

10

617

2,419

Wholesale trade

50

-

17

1,273

7

1,418

2,765

Other2

16

69

512

2,158

15

2,048

4,818

4,262

11,156

10,076

95,164

1,015

26,557148,230

Provisions for credit impairment

-

-

-

(1,150)--(1,150)Fair value hedge adjustment
Unearned finance income anddeferred/capitalised fees

-

-

-

62

-

-

62

-

-

-

(259)

-

-

(259)

4,262

11,156

10,076

93,817

1,015

26,557

146,883

4,026

9,080

2,985

91,995907

26,557

135,550

236

2,076

7,091

1,822

108

-

11,333

4,262

11,156

10,076

93,817

1,015

26,557

146,883

Total
Geography
New ZealandOverseas
Total
1
2

Government and local authority includes exposures to government administration and defence, education and health and community services.
Other includes exposures to electricity, gas and water, communications and personal services.

Australia and New Zealand Banking Group Limited - New Zealand Branch

16

Notes to the Financial Statements
Interest rate sensitivity gap
The following table shows the interest rate sensitivity of ANZ New Zealand's assets, liabilities and off balance sheet
instruments by disclosing the repricing periods for these instruments (that is, when interest rates applicable to each asset
or liability can be changed).
Unaudited 31/03/2012

Less than

3 to 6

6 to 12

1 to 2

Beyond Not bearing

Total

3 months

monthsmonthsyears

2 years

interest

Liquid assets

2,355

2,159

-

-

-

-

196

Due from other financial institutions

1,907

1,778

-

-

-

-

129

Trading securities

10,904

1,532

458

212

3,569

5,133

-

Derivative financial instruments

10,076

-

-

-

-

-

10,076$ millions

AssetsAvailable-for-sale assets

252

30

3

60

-

41

118

Net loans and advances

93,81771,043

4,722

6,709

7,226

3,643

474

Other financial assets

1,015

79

48

30

5

3

850

Total financial assets

120,326

76,621

5,231

7,011

10,8008,820

11,843Liabilities
Due to other financial institutions

10,258

9,908

-

-

-

95

255

Deposits and other borrowings

70,91445,603

11,313

5,851

1,201

1,641

5,305

Derivative financial instruments
Payables and other financial
liabilities

10,363

-

-

-

-

-

10,363

1,464

45

-

-

6

132

1,281

Bonds and notes

18,541

7,573

147

1,526

3,561

5,734

-

Term funding

1,766

1,766

-

-

-

-

-

Loan capital

1,737

-

902

-

835

-

-

Total financial liabilities

115,043

64,895

12,362

7,377

5,603

7,602

17,204

Hedging instruments

-

(324)

(2,358)

1,831

282

569

-

Interest sensitivity gap

5,283

11,402(9,489)

1,465

5,479

1,787

(5,361)

Australia and New Zealand Banking Group Limited - New Zealand Branch

17

Notes to the Financial Statements
Funding Composition
ANZ New Zealand actively uses balance sheet disciplines to prudently manage its funding mix. ANZ New Zealand employs
funding metrics to ensure that an appropriate proportion of its assets are funded from stable sources, including customer
liabilities, longer-dated wholesale debt (with remaining terms exceeding one year) and equity.
Unaudited$ millions

31/03/2012

Funding composition
Customer deposits1
New Zealand

56,761

Overseas

7,418

Total customer deposits

64,179Wholesale funding
Bonds and notes

18,541

Loan capital

1,737

Certificates of deposit

2,277

Commercial paper

4,458

Term funding

1,766

Due to other financial institutions

10,258

Total wholesale funding

39,037

Total funding

103,216

Concentrations of funding by industry
Households

41,247

Agriculture

2,449

Forestry, fishing and mining

571

Manufacturing

2,371Entertainment, leisure and tourism

725

Finance and insurance

46,239Retail trade819

Wholesale trade

837

Business and property services

3,554

Transport and storage

529

Construction

728

Government and local authority

1,812

Other2

1,335

Total funding

103,216
3

Concentrations of funding by geography
New Zealand

62,825Australia

13,673

United States

13,457

Europe7,912

Other countries

5,349

Total funding
1
2
3

103,216

Represents term deposits, demand deposits bearing interest, deposits not bearing interest and secured debenture stock.
Other includes exposures to electricity, gas and water, communications and personal services.
Funding of ANZ New Zealand via ANZ National (Int’l) Limited is classified as either from the United States or Europe, as the company conducts overseas
funding activities through its London branch.

Australia and New Zealand Banking Group Limited - New Zealand Branch

18

Notes to the Financial Statements
Liquidity portfolio management
ANZ New Zealand holds a diversified portfolio of cash and high quality liquid securities to support liquidity risk
management. The size of ANZ New Zealand’s liquidity portfolio is based on the amount required to meet its liquidity
policy and includes both items classified as cash and cash equivalents and those classified as operating assets in theStatement of Cash Flows.
Liquidity portfolio$ millions

31/03/2012
Unaudited

Balances with central banks

1,513

Securities purchased under agreement to resell

1,256

Certificates of deposit
Govt, local body stock and bonds
Government treasury bills
Other bonds
Total liquidity portfolio

368
6,899
63
3,727
13,826

Australia and New Zealand Banking Group Limited - New Zealand Branch

19

Notes to the Financial Statements
Contractual maturity analysis of financial assets and liabilities
The table below presents ANZ New Zealand's financial assets and liabilities within relevant contractual maturity groupings,
based on the earliest date on which ANZ New Zealand may be required to realise an asset or settle a liability. The
amounts disclosed in the tables represent undiscounted future principal and interest cash flows and may differ to theamounts reported on the balance sheet.
Derivatives (other than those designated in a hedging relationship) and trading portfolio assets and liabilities are included
at their fair value, since they will frequently be settled before contractual maturity at fair value.
The contractual maturity analysis for off-balance sheet commitments and contingent liabilities has been prepared using
the earliest date at which ANZ New Zealand can be called upon to pay. The liquidity risk of credit related commitments
and contingent liabilities may be less than the contract amount, and does not necessarily represent future cash
requirements as many of these facilities are expected to be only partially used or to expire unused.
ANZ New Zealand does not manage its liquidity risk on the basis of the information below.
$ millions

Less than

3 to 12

Beyond No maturity

3 months

months 1 to 5 years

5 years

specified

-

-

-

-

-

-

9,184

1,174

-

Total

At callLiquid assets

2,355

2,012

343

-

Due from other financial institutions

1,909

557

1,352

-

11,806

-

412

1,036

Unaudited 31/03/2012

Financial assets

Trading securities
Derivative financial assets (trading)

8,651

-

8,651

-

-

-

-

Available-for-sale assets

262

-

31

64

49

-

118

Net loans and advances

130,690-

12,045

21,33837,98259,325-

Other financial assets

663

-

563

78

18

1

3

Total financial assets

156,336

2,569

23,39722,51647,23360,500121

Financial liabilities
Due to other financial institutions

11,452

560

1,257

2,095

7,434

106

-

Deposits and other borrowings
Derivative financial liabilities(trading)

72,17528,612

22,255

18,159

3,139

10

-

9,349

-

9,349

-

-

-

-

885

-

673

7

78

127

-

Other financial liabilities
Bonds and notes

19,760

-

2,794

2,464

13,490

1,012

Term funding

1,832

-

1,832

-

-

-

-

Loan capital

2,726

-

35

104

691

724

1,172

118,179

29,172

38,19522,82924,832

1,979

1,172

38,157(26,603)(14,798)(313)

22,401

58,521(1,051)

Total financial liabilities
Net financial assets / (liabilities)

Derivative financial instruments used for balance sheet management- gross inflows

27,458

-

3,033

5,778

18,184463-- gross outflows(26,529)-(3,106)(5,460)(17,507)(456)-

39,086(26,603)(14,871)

5

23,07858,528(1,051)

Net financial assets / (liabilities)
after balance sheet management

Contractual maturity of off-balance sheet commitments and contingent liabilities
Less than

BeyondUnaudited 31/03/2012

Total

1 year

1 yearNon-credit related commitments

237

89

148

23,82523,825

-

2,732

2,732

-

26,794

26,646148$ millions

Credit related commitments
Contingent liabilities
Total

Australia and New Zealand Banking Group Limited - New Zealand Branch

20

Notes to the Financial Statements
12. Concentrations of Credit Risk to Individual Counterparties
ANZ New Zealand measures its concentration of credit risk in respect to bank counterparties on the basis of approved
exposures, and in respect to non bank counterparties on the basis of limits.
For the six months ended 31 March 2012 there were no individual counterparties (excluding connected parties,
governments and banks with long term credit ratings of A- or above) where ANZ New Zealand’s period end or peak endof-day credit exposure equalled or exceeded 10% of ANZ New Zealand’s equity (as at the end of the period).

13. Insurance business
ANZ New Zealand conducts insurance business through companies in the OnePath Insurance Holdings (NZ) Limited group.
The aggregate amount of insurance business in this group comprises assets totalling $525 million (31/03/2011: $353
million; 30/09/2011 $438 million), which is 0.4% (31/03/2011: 0.3%; 30/09/2011 0.3%) of the total consolidated assetsof ANZ New Zealand.

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

Unaudited

Unaudited

Audited31/03/2012

31/03/2011

30/09/2011

Credit related commitments
Commitments with certain drawdown due within one year

904

567

527

Commitments to provide financial services

22,921

21,86522,364

Total credit related commitments

23,82522,432

22,891

1,752

1,888

1,753

55

68

60

Transaction related contingent items

829

957

882

Trade related contingent liabilities

96

60

110

2,732

2,973

2,805

Contingent liabilities
Financial guarantees
Standby letters of credit

Total contingent liabilities

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

Australia and New Zealand Banking Group Limited - New Zealand Branch

21

Notes to the Financial Statements
15. Additional Disclosures
NZ Branch Funding
Unaudited$ millions

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

31/03/2012

37

Overseas Banking Group Profitability and Size
Unaudited
AUD millions

31/03/2012

Profit for the period for the 6 months ended 31/03/20121

2,923

Net profit after tax for the 12 months ended 31/03/2012 as a percentage of average total assets

1.0%

Total assets as at 31/03/2012
Percentage change in total assets in the 12 months ended 31/03/2012

1603,236
12.2%

Net profit after tax for the period includes $4 million of profit attributable to non-controlling interests.

Overseas Banking Group asset quality
Unaudited
AUD millions

Gross impaired assets

31/03/2012

5,343

Gross impaired assets as a percentage of total assets

0.9%

Individual provision

1,714

Individual provision as a percentage of gross impaired assets

32.1%

Collective provision

2,994

16. Subsequent Events
On 24 April 2012 the Board of ANZ Holdings (New Zealand) Limited resolved to pay an ordinary dividend of $400 million,
and this was paid on 27 April 2012.

Australia and New Zealand Banking Group Limited - New Zealand Branch

22

Directors’ 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 Bankand the Chief Executive Officer – NZ Branch believes, that:(i)

The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements(Overseas Incorporated Registered Banks) Order 2012; and(ii)

The Disclosure Statement is not false or misleading.

Over the six months ended 31 March 2012, after due enquiry, each Director of the Ultimate Parent Bank and the Chief
Executive Officer – NZ Branch believes that:(i)

The Ultimate Parent Bank has complied with all Conditions of Registration that applied during that period;(ii)

The Ultimate Parent Bank had systems in place to monitor and control adequately ANZ New Zealand’s material risks,
including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and otherbusiness risks, and that those systems were being properly applied.

This Disclosure Statement is dated 23 May 2012, and has been signed by the Chairman of the Ultimate Parent
Bank, as agent for all Directors, and by the Chief Executive Officer – NZ Branch.

J P MorschelChairmanA J Bradshaw
Chief Executive Officer – NZ BranchIndependent Auditors’ Review Report
To the Directors of Australia and New Zealand Banking Group Limited - New Zealand Branch
We have reviewed pages 3 to 21 of the interim financial statements of Australia and New Zealand Banking Group
Limited – New Zealand Branch and its related entities (‘ANZ New Zealand’) prepared and disclosed in accordance with
the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2012 (the ‘Order’) and the
supplementary information prescribed in Schedules 3, 5, 7, 9, 10, 12 and 14 of the Order. The interim financial
statements, and supplementary information, provide information about the past financial performance and cash flows of
ANZ New Zealand and its financial position as at 31 March 2012.
Directors’ responsibilities
The Directors of Australia and New Zealand Banking Group Limited - New Zealand Branch are responsible for the
preparation and presentation of the Disclosure Statement, which includes interim financial statements prepared inaccordance with Clause 26 of the Order which give a true and fair view of the financial position of ANZ New Zealandas at 31 March 2012 and its financial performance and cash flows for the six months ended on that date. The Directors
are also responsible for such internal controls as the Directors determine are necessary to enable the preparation of theDisclosure Statement that is free from material misstatement, whether due to fraud or error.
They are also responsible for the preparation of supplementary information in the Disclosure Statement which fairly
states the matters to which it relates in accordance with Schedules 3, 5, 7, 9, 10, 12 and 14 of the Order.
Reviewers’ responsibilities
We are responsible for reviewing the interim financial statements and the supplementary information, disclosed inaccordance with Clause 26, Schedules 3, 5, 7, 9, 10, 12 and 14 of the Order and presented to us by the Directors.
We are responsible for reviewing the interim financial statements (excluding the supplementary information) in orderto report to you whether, in our opinion on the basis of the procedures described below, anything has come to ourattention that would cause us to believe that the interim financial statements have not been prepared, in all material
respects, in accordance with New Zealand Equivalent to International Accounting Standard 34 (“NZ IAS 34”):
Interim Financial Reporting and do not present a true and fair view of the financial position of ANZ New Zealand as
at 31 March 2012 and its financial performance and cash flows for the six months ended on that date.
We are responsible for reviewing the supplementary information (excluding the supplementary information relating tocapital adequacy) in order to report to you whether, in our opinion on the basis of the procedures described below,
anything has come to our attention that would cause us to believe that the supplementary information does not fairly
state the matters to which it relates in accordance with Schedules 5, 7, 10, 12 and 14 of the Order
We are responsible for reviewing the supplementary information relating to credit and market risk exposures andcapital adequacy in order to state whether, on the basis of the procedures described below, anything has come to ourattention that would cause us to believe that the information disclosed in accordance with Schedule 9 is not in allmaterial respects prepared in accordance with the Capital Adequacy Framework (Basel I Approach) (BS2) and Capital
Adequacy Framework (Standardised Approach) (BS2A); and disclosed in accordance with Schedule 9 of the Order.
We have performed our review in accordance with the review engagement standard RS-1 Statement of Review
Engagement Standards issued by the External Reporting Board. A review is limited primarily to enquiries of ANZ New
Zealand personnel and analytical review procedures applied to the financial data, and thus provides less assurance thanan audit. We have not performed an audit and, accordingly, we do not express an audit opinion.
KPMG has also provided other audit related services to ANZ New Zealand. In addition, certain partners and employees
of our firm may also deal with ANZ New Zealand on normal terms within the ordinary course of trading activities of
ANZ New Zealand. These matters have not impaired our independence as auditors of ANZ New Zealand. We have noother relationship with, or interest in, ANZ New Zealand.

Review Opinion
We have examined the interim financial statements including the supplementary information and based on our review,which is not an audit, nothing has come to our attention that causes us to believe that:a.

the interim financial statements (excluding the supplementary information) have not been prepared, in allmaterial respects, in accordance with NZ IAS 34: Interim Financial Reporting and do not present a true and fairview of the financial position of ANZ New Zealand as at 31 March 2012 and its financial performance and cash
flows for the six months ended on that date;b.

the supplementary information prescribed by Schedules 5, 7, 10, 12 and 14 of the Order does not fairly state thematters to which it relates in accordance with those Schedules; andc.

the supplementary information relating to credit and market risk exposures and capital adequacy prescribed by
Schedule 9 of the Order, is not in all material respects prepared in accordance with Capital Adequacy
Framework (Basel 1 Approach) (BS2) and Capital Adequacy Framework (Standardised Approach) (BS2A), anddisclosed in accordance with Schedule 9 of the Order.

Our review was completed on 23 May 2012 and our review opinion is expressed as at that date.

Wellington