Media Release
For Release: 26 February 2010

ANZ New Zealand: December 2009 quarter
highlights signs of recovery
Wellington: The Australia and New Zealand Banking Group Limited (ANZ) NZ Branch General
Disclosure Statement for three months to 31 December 2009 1 was released today, coinciding
with ANZ Group’s trading update in Melbourne.
ANZ New Zealand Chief Executive Officer, Jenny Fagg, said: “Despite challenging businessconditions, ANZ New Zealand is continuing to support its customers and is delivering aresilient financial performance.
“There is now evidence that the New Zealand economy has stabilised. As the economic
recovery slowly gathers pace, it does offer the prospect of a significant improvement in
ANZ’s business performance over the next year or two,” Ms Fagg said.
The General Disclosure Statement compares the December 2008 and December 2009
quarters. However comparing the December 2009 quarter with the September 2009
quarter, signs of recovery are particularly apparent.
“We are encouraged by the lift in profit in the December 2009 quarter compared with theSeptember quarter, in line with signs of recovery in the broader economy following therecession,” Ms Fagg said.
“Provision trends are moderating. A key improvement in the December 2009 quarter is thepronounced reduction in provisioning for credit impairment which has decreased from $351
million (September quarter) to $151 million.”
GDS December quarter 2009 vs December quarter 2008
Commenting on the formal GDS December 2008 comparison, Ms Fagg said: “The significant
economic downturn saw a 19 per cent decline in the underlying profit to $202 million for theDecember 2009 quarter compared to the December 2008 quarter, influenced byprovisioning for credit impairment (bad debt) and subdued lending volumes.
“Nevertheless, our results in the December quarter show that ANZ New Zealand remains
strongly capitalised and profitable, with costs well-managed.
“ANZ is well positioned to continue to support personal and business customers and to assist
them as consumer and business confidence recovers.
“For example, in the December quarter we lent $2.5 billion in new home loans across both
ANZ and National Bank.
“Although funding continues to come at a higher cost, we are working hard to manage thisby offering our customers some of the most competitive rates through the ANZ and TheNational Bank brands.

1The NZ Branch GDS provides a more complete picture of ANZ’s operations in NZ and more consistency withANZ Group reporting where the results of the New Zealand business are reported at a total New Zealand geographiclevel. See background note for more information.

“We have also made significant moves to offer our customers more simple and convenientbanking through the most comprehensive review of bank fees in the New Zealand banking
sector. This resulted in the removal of 21 fees and reductions in eight fees across our two
retail banks, saving customers an estimated $55 million on an annualised basis.
“In addition, we have focussed on helping our customers manage their finances, and get
through the recession. Since we launched our Financial Wellbeing programme in August
2008, our staff have proactively assisted more than 5700 customers who were underfinancial stress, representing lending of $1.3 billion,” Ms Fagg said.
Key Points: December quarter 2009 vs December quarter 2008
•GDS underlying profit declined by 19% to $202 million (Dec 09).

•

Provisioning for credit impairment (bad debt) increased 59% to $151 million(Dec 09).

•

Lending volumes subdued. Gross loans and advances decreased to $96.65
billion (Dec 09) from $99.12 billion (Dec 08).

•

$2.5 billion given in new home loans during the December 2009 quarter across
ANZ and The National Banks.

•Well capitalised: Tier One 9.62% (Dec 09) compared to 8.19% (Dec 08); Total
capital of 13.31% (Dec 09) compared to 11.68% (Dec 08).

•Strong liquidity:Total liquidity portfolio of $11.08 billion at 31 December 2009
compared with $9.20 billion at 31 December 2008 (GDS, Note 22, Page 27)

A summary of the key financials in the GDS and other background follows.
The Australia and New Zealand Banking Group Limited NZ Branch General DisclosureStatement for 3 months to 31 December 2009 is available on:www.anz.co.nz/GDS
Contact: Astrid Smeele (ANZ New Zealand Senior External Relations Manager) 04
4366754

Summary of Key Financials GDS
3 months toDecember
2009
NZDm

3 months toDecember
2008
NZDmMovt
Dec 09v. Dec 08%

Net interest income
Other external operating income
Operating income
Operating expenses
Profit before credit impairment and incometax
Provision for credit impairment
Profit before income tax
Income tax expense
Underlying profit
Adjustments to arrive at statutory profit
Profit

570
230
800
360
440

541
279
820
369
451

5%
-18%-2%-2%-2%

151
289
87
202
51253

95356
106
250(83)167

59%-19%-18%-19%
161%
51%

Consisting of:RetailCommercial
WealthOperating & Support
New Zealand Businesses
Institutional
Other
Underlying profit
Adjustments to arrive at statutory profit
Profit70418119103(20)
202
51253

7174411160122(32)250(83)
167

-1%
-45%
100%-100%-26%-16%
38%
-19%
161%
51%

Background notes•

The December quarter figures used have been taken from the Australia and New Zealand Banking
Group Limited NZ Branch General Disclosure Statement for 3 months to 31 December 2009 [“NZBranch GDS”]. The NZ Branch GDS provides a more complete picture of ANZ’s operations in NZ andmore consistency with ANZ Group reporting where the results of the New Zealand business arereported at a total New Zealand geographic level.

•The September quarter figures have been taken from GDS for full year ended September 30
compared to the GDS for the nine months ended June 30.

•The GDS mainly comprises the financial results of the registered bank ANZ National Bank Ltd andits subsidiaries The National Bank, ANZ, UDC, Direct Broking, ING NZ, EFTPOS, but also includes its
NZ parent company ANZ Holdings and the NZ Branch of ANZ Banking Group Ltd.

•The ANZ National General Disclosure Statement for the 3 months to 31 December 2009 has also
been published today and includes the financial results of ANZ National Bank Ltd and all its
subsidiaries.