Australia and New Zealand Banking Group Limited –New Zealand Branch
Disclosure Statement
FOR THE THREE MONTHS ENDED 31 DECEMBER 2012 | NUMBER 17 ISSUED FEBRUARY 2013

Australia and New Zealand Banking Group Limited - New Zealand Branch

Disclosure Statement
For the three months ended 31 December 2012

Contents
General Disclosures
Income Statement
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
Independent Auditor’s Review Report

2
3
3
4
5
6
7
14
15

Glossary of Terms
In this Disclosure Statement unless the context
otherwise requires:(a) “Bank” means ANZ Bank New Zealand Limited;(b) “Banking Group” means the Bank and all its
controlled entities;(c) “Immediate Parent Company” means ANZ Funds Pty
Limited, which is the immediate parent company of
ANZ Holdings (New Zealand) Limited;(d) “Ultimate Parent Bank” means Australia and New
Zealand Banking Group Limited;(e) “Overseas Banking Group” means the worldwide
operations of Australia and New Zealand Banking
Group Limited including its controlled entities;(f) “New Zealand business” means all business,
operations, or undertakings conducted in or fromNew Zealand identified and treated as if it wereconducted by a company formed and registered in
New Zealand;(g) “NZ Branch” means the New Zealand business of
the Ultimate Parent Bank;(h) “ANZ New Zealand” means the New Zealandbusiness of the Overseas Banking Group;(i) “Registered Office” is Level 10, 170-186 Featherston
Street, Wellington, New Zealand, which is also ANZ
New Zealand’s address for service;(j) “RBNZ” means the Reserve Bank of New Zealand;(k) “APRA” means the Australian Prudential Regulation
Authority;(l) “the Order” means the Registered Bank DisclosureStatements (Overseas Incorporated Registered
Banks) Order (No 2) 2012; and(m) Any term or expression which is defined in, or in themanner prescribed by, the Order shall have themeaning given in or prescribed by the Order.

Australia and New Zealand Banking Group Limited - New Zealand Branch

2

General Disclosures
This Disclosure Statement
accordance with the Order.

has

been

issuedin

Financial Statements of the Ultimate
Parent Bank and Overseas Banking
Group

The Ultimate Parent Bank has three credit ratings, which
are applicable to its long-term senior unsecured
obligations which are payable in New Zealand in New
Zealand dollars.

Copies of the most recent publicly available financial
statements of the Ultimate Parent Bank and Overseas
Banking Group will be provided immediately, free ofcharge, to any person requesting a copy where therequest is made at the Registered Office. The mostrecent publicly available financial statements for the
Ultimate Parent Bank and Overseas Banking Group canalso be accessed at the internet address anz.com.

Credit Rating Information

The Ultimate Parent Bank’s credit ratings are:Rating Agency
Standard & Poor’s

Current Credit
Rating
Qualification
AAOutlook Stable

Moody’s Investors Service

Aa2

Outlook Stable

Fitch Ratings

AA-

Outlook Stable

Guarantors
As at the date of signing of this Disclosure Statement,
no obligations of the NZ Branch are guaranteed.
New Zealand Guarantee Arrangements
The Crown guarantees specific issuances of wholesalefunding 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 Branchdoes not have a guarantee under this scheme. However,a member of ANZ New Zealand, ANZ New Zealand (Int’l)Limited, has debt securities with a carrying value of$207 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 New Zealand(Int’l) Limited, are guaranteed by ANZNZ Covered Bond
Trust Limited (the “Covered Bond Guarantor”), solely in
its capacity as trustee of ANZNZ Covered Bond Trust.
The Covered Bond Guarantor has guaranteed thepayment of interest and principal of Covered Bonds witha carrying value as at 31 December 2012 of $3,067
million, pursuant to a guarantee which is secured over apool of assets. The Covered Bond Guarantor’s addressfor service is Level 10, 141 Willis Street, Wellington,
New Zealand. The Covered Bond Guarantor is not amember of the Banking Group and has no credit ratings
applicable to its long term senior unsecured obligations
payable in New Zealand dollars. The Covered Bonds
have been assigned a long term rating of Aaa and AAA
by Moody’s Investors Service and Fitch Ratings
respectively. Details of the pool of assets that secure
this guarantee are provided in Note 11.

Conditions of Registration
The conditions of registration applying to the Ultimate
Parent Bank were amended on 21 December 2012 toreflect APRA’s adoption of the Basel III capitalframework. Condition 6, which imposes minimum
regulatory capital requirements on the Overseas
Banking Group, was changed to increase the Overseas
Banking Group’s minimum tier one capital ratio to 6%
from 4% and require a minimum common equity tierone capital ratio of 4.5%. The change applies from 1
January 2013.

Directorate
There have been no changes to the Directors ofAustralia and New Zealand Banking Group Limited since
30 September 2012, the balance date of the last fullyear Disclosure Statement.

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

is KPMG, Chartered
Customhouse Quay,

3

Australia and New Zealand Banking Group Limited - New Zealand Branch

Income Statement
Unaudited

Unaudited

3 months to

3 months toYear to31/12/2012

31/12/2011

30/09/2012

Interest income

1,639

1,647

6,568

Interest expense

984

969

3,859

Net interest income

655

678

2,709

Net trading gains

38

39

131

Net funds management and insurance income

66

82

298

85

219

472

3

-

4

847

1,018

3,614

398

402

1,743

449

616

1,871

44

46

202

Profit before income tax

405

570

1,669

Income tax expense

109

155

404

Profit after income tax

296

415

1,265

Audited$ millions

Note

Other operating income2

Share of associates' profit
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

3 months to

3 months toYear to31/12/2012

31/12/2011

30/09/2012

296

415

1,265

Profit after income tax
Items that will not be reclassified to profit or loss
Actuarial loss on defined benefit schemes

-

-

(25)

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

-

(1)

6

Total items that will not be reclassified to profit or loss

-

(1)

(19)

(11)

62

46

(6)

(4)

(95)

5

(12)

-

Total items that may be reclassified subsequently to profit or loss

(12)

46

(49)

Total comprehensive income for the period

284

460

1,197

Items that may be reclassified subsequently to profit or loss
Unrealised gains / (losses) recognised directly in equity
Realised gains transferred to income statement
Income tax credit / (expense) relating to items that may be reclassified

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

4Australia and New Zealand Banking Group Limited - New Zealand BranchStatement of Changes in Equity
Ordinaryshare capitaland head
office account

Availablefor-salerevaluation
reserve

Cash flow
hedging
reserve

Retainedearnings

Total equity

As at 1 October 2011

6,424

46

141

1,854

8,465

Profit after income tax

-

-

-

415

415

Unrealised gains recognised directly in equity

-

14

48

-

62

Realised gains transferred to the income statement

-

-

(4)

-

(4)

Income tax expense on items recognised directly in equity

-

-

(12)

(1)

(13)

Total comprehensive income for the period

-

14

32

414

460

Preference dividend paid

-

-

-

(51)

(51)

As at 31 December 2011 (Unaudited)

6,424

60

173

2,217

8,874

As at 1 October 2011

6,424

46

141

1,854

8,465

Profit after income tax

-

-

-

1,265

1,265

Unrealised gains recognised directly in equity

-

34

12

-

46

Realised gains transferred to the income statement

-

(83)

(12)

-

(95)

Actuarial loss on defined benefit schemes

-

-

-

(25)

(25)

Income tax credit on items recognised directly in equity

-

-

-

6

6

Total comprehensive income for the period

-

(49)

-

1,246

1,197

Ordinary dividend paid

-

-

-

(400)

(400)

Preference dividend paid

-

-

-

(85)

(85)

6,424

(3)

141

2,615

9,177

$ millions

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

-

-

-

296

296

Unrealised gains / (losses) recognised directly in equity

-

1

(12)

-

(11)

Realised gains transferred to the income statement

-

-

(6)

-

(6)

Income tax credit on items recognised directly in equity

-

-

5

-

5

Total comprehensive income for the period

-

1

(13)

296

284

As at 31 December 2012 (Unaudited)

6,424

(2)

128

2,911

9,461

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

5Australia and New Zealand Banking Group Limited - New Zealand Branch

Balance Sheet
Unaudited

Unaudited

Audited31/12/2012

31/12/2011

30/09/2012

Liquid assets

3,148

2,340

2,831

Due from other financial institutions

3,230

2,154

1,760

Trading securities

11,638

10,321

12,338Derivative financial instruments

10,764

13,23812,709

7

-

24

47

255

57

96,82093,501

96,094

Investments backing insurance policy liabilities

154

116

142

Insurance policy assets

308

231

301

Investments in associates

98

99

99

598

666

596

$ millions

Note

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

4

Other assets
Deferred tax assets

84

75

92

331

322

323

3,503

3,505

3,502

Total assets

130,730

126,823

130,868

Interest earning and discount bearing assets

114,342

107,697

112,783

11,02011,956

11,012

77,08069,38773,652

11,64913,534

14,085

-

37

-

1,394

1,214

1,481

Premises and equipment
Goodwill and other intangible assets

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

7

Current tax liabilities
Payables and other liabilities
Provisions

308

278

339

16,882

17,77618,188Term funding

1,766

1,766

1,766

Loan capital

1,170

2,001

1,168

121,269

117,949

121,691

9,461

8,874

9,177

6,424

6,424

6,424

126

233

138

Retained earnings

2,911

2,217

2,615

Total equity and head office account

9,461

8,874

9,177

102,035

97,532

100,543

Bonds and notes

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

Interest and discount bearing liabilities

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

6Australia and New Zealand Banking Group Limited - New Zealand Branch

Condensed Cash Flow Statement
Unaudited

Unaudited

3 months to

3 months toYear to31/12/2012

31/12/2011

30/09/2012

Interest received

1,621

1,609

6,549

Interest paid

(993)

(981)

(3,845)$ millions

AuditedCash flows from operating activities

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

231

217

819

(556)

(560)

(2,009)

303

285

1,514

Net changes in operating assets and liabilities

3,311(1,471)(2,556)

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

3,614(1,186)(1,042)

Cash flows from investing activities
Cash inflows provided by investing activities

1

4

16

Cash outflows used in investing activities

(30)

(15)

(95)

Net cash flows used in investing activities

(29)

(11)

(79)

Cash flows from financing activities
Cash inflows provided by financing activities

-

867

5,678

Cash outflows used in financing activities(1,847)(1,677)(6,746)

Net cash flows used in financing activities(1,847)(810)(1,068)Net increase / (decrease) in cash and cash equivalents

1,738(2,007)(2,189)Cash and cash equivalents at beginning of the period

3,293

5,482

5,482

Cash and cash equivalents at end of the period

5,031

3,475

3,293

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

7Australia and New Zealand Banking Group Limited - New Zealand Branch

Notes to the Financial Statements
1.

Significant Accounting Policies(i)Reporting entity and statement of compliance
These interim financial statements are for ANZ New
Zealand for the three months ended 31 December
2012. They have been prepared in accordance withNew Zealand Generally Accepted Accounting Practice
as appropriate for profit oriented entities, therequirements 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 2012.

(ii) Basis of measurement
These financial statements have been prepared on agoing concern basis in accordance with historical cost
concepts except that the following assets andliabilities are stated at their fair value:•

derivative financial instruments, including in thecase of fair value hedging, the fair value of any
applicable underlying exposure;•financial instruments held for trading;•financial assets treated as available-for-sale;and•financial instruments designated at fair value
through profit and loss.

Insurance policy assets are measured using the
Margin on Services model, and defined benefit

2.

obligations are measured using the Projected Unit
Credit method.
(iii) Changes in accounting policies
The accounting policies adopted by ANZ New Zealandare consistent with those adopted and disclosed in theprevious full year Disclosure Statement.
(iv) Presentation currency and rounding
The amounts contained in the financial statements
are presented in millions of New Zealand dollars,
unless otherwise stated.
(v) Comparatives
Certain amounts in the comparative information havebeen reclassified to ensure consistency with thecurrent period's presentation.
This includes
reclassifying, in the Balance Sheet as at 31 December
2011, collateral received of $695 million fromderivative financial instruments asset to due to otherfinancial institutions and collateral paid of $1,019
million from derivative financial instruments liability
to due from other financial institutions.
(vi) Principles of consolidation
The consolidated financial statements of ANZ New
Zealand comprise the financial statements of the NZ
Branch and all the New Zealand businesses of all thesubsidiaries of the Ultimate Parent Bank (thoseentities where it is determined that the Ultimate
Parent Bank has capacity to control).

Other Operating Income and Expenses

Other operating income$millions

Net fee income
Fair value gain / (loss) on hedging activities and financial liabilities designated at fairvalue

Unaudited

Unaudited

3 months to

3 months to

AuditedYear to31/12/2012

31/12/2011

30/09/2012

101

115

430

(23)

97

(62)

Net gain on available for sale equity securities transferred to income statement

-

-

83

Other income

7

7

21

85

219

472

Total other operating income

Operating expenses
Operating expenses include costs for the three months ended 31 December 2012 of $18 million (31/12/2011 $14 million;
30/09/2012 $192 million) incurred in relation to the move to a single banking technology platform, which is expected todeliver operational efficiencies and improved service levels and business outcomes.

8Australia and New Zealand Banking Group Limited - New Zealand Branch

Notes to the Financial Statements
3.

(typically with annual revenues of less than $5 million).
Commercial & Agri customers consist of primarily
privately owned medium to large enterprises. ANZ New
Zealand's relationship with these businesses ranges
from simple banking requirements with revenue from
deposit and transactional facilities, and cash flow
lending, to more complex funding arrangements withrevenue sourced from a wider range of products. UDC isprincipally involved in the financing and leasing of plant,
vehicles and equipment, mainly for small and medium
sized businesses, as well as investment products.

Segmental Analysis

For segment reporting purposes, ANZ New Zealand isorganised into four major business segments - Retail,Commercial, Wealth and Institutional. Centralised backoffice and corporate functions support these segments.
These segments are consistent with internal reporting
provided to the chief operating decision maker, being
the Bank’s Chief Executive Officer.
Segmental reporting has been updated reflect minorchanges to ANZ New Zealand’s structure. Comparative
data has been adjusted to be consistent with the current
period’s segment definitions.

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

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

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

Commercial

Other

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

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

Business segment analysis1$ millions

RetailCommercial

WealthInstitutional

Other 2

Total

Unaudited 3 months to 31/12/2012

External revenues

353

686

17

218

(427)

847

Intersegment revenues

(56)

(328)

37

(62)

409

-

Total revenues

297

358

54

156

(18)

847

Profit before income tax

119

206

20

98

(38)

405

Unaudited 3 months to 31/12/2011

External revenues

402

709

38

186

(317)

1,018

Intersegment revenues

(96)

(347)

36

(14)

421

-

Total revenues

306

362

74

172

104

1,018

Profit before income tax

128

200

36

118

88

570

Audited year to 30/09/2012

External revenues

1,531

2,790

111

769

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

143

(130)

1,613

-

Total revenues

1,236

1,459

254

639

26

3,614

505

825

108

428

(197)

1,669

Profit before income tax
1
2

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

9Australia and New Zealand Banking Group Limited - New Zealand Branch

Notes to the Financial Statements
4.

Net Loans and Advances
Unaudited

Unaudited

Audited31/12/2012

31/12/2011

30/09/2012

Overdrafts

1,789

1,740

1,881

Credit card outstandings

1,455

1,439

1,395

Term loans - housing

56,19153,30655,526

Term loans - non-housing

37,83537,54637,749Finance lease receivables

816

792

806

$ millions

Note

Gross loans and advances

98,086

94,82397,357(1,082)(1,164)(1,081)

(263)

(260)

(258)

19

114

34

Deferred fee revenue and expenses

(62)

(58)

(60)

Capitalised brokerage/mortgage origination fees

122

46

102

96,82093,501

96,094Retailmortgages

Other retail
exposures

Non retail
exposures

Total

Total individually impaired assets

310

48

787

1,145

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

125

38

64

227

Total individually impaired assets

446

49

1,204

1,699

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

139

38

89

266

Total individually impaired assets

324

44

874

1,242

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

107

33

86

226

Provision for credit impairment

6

Unearned finance income
Fair value hedge adjustment

Total net loans and advances

5.

Impaired and Past Due Assets$ millions
Unaudited 31/12/2012

Unaudited 31/12/2011

Audited 30/09/2012

10

Australia and New Zealand Banking Group Limited - New Zealand Branch

Notes to the Financial Statements
6.

Provision for Credit Impairment
Retailmortgages

Other retail
exposures

Non retail
exposures

Total

Collective provision

128

118

375

621

Individual provision

114

31

316

461

Total provision for credit impairment

242

149

691

1,082

Collective provision charge / (credit)

8

(7)

-

1

Individual provision charge

5

11

27

43

13

4

27

44

Collective provision

133

142

390

665

Individual provision

151

29

319

499

Total provision for credit impairment

284

171

709

1,164

Collective provision charge / (credit)

2

(5)

(4)

(7)

Individual provision charge

4

12

37

53

Total charge in income statement

6

7

33

46

Collective provision

120

125

375

620

Individual provision

130

25

306

461

Total provision for credit impairment

250

150

681

1,081

Collective provision credit

(10)

(22)

(20)

(52)

Individual provision charge

39

55

160

254

Total charge in income statement

29

33

140

202

$ millions
Unaudited 31/12/2012

Total charge in income statement
Unaudited 31/12/2011

Audited 30/09/2012

7.

Deposits and Other Borrowings$ millions

Note

Certificates of deposit

Unaudited

Unaudited

Audited31/12/2012

31/12/2011

30/09/2012

2,369

2,690

2,156

Term deposits

33,54532,94933,922

Demand deposits bearing interest

27,62923,63125,815

5,737

5,044

4,838

1,457

1,393

1,476

6,343

3,680

5,445

77,08069,38773,652

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

11

11

Australia and New Zealand Banking Group Limited - New Zealand Branch

Notes to the Financial Statements
8.

Related Party Transactions$ millions

Unaudited

Unaudited

Audited31/12/2012

31/12/2011

30/09/2012

Total due from related parties

2,480

3,228

3,125

Total due to related parties

16,281

19,40817,1539.

Capital Adequacy

Overseas Banking Group Basel II capital adequacy ratio (Unaudited)
Ultimate Parent Bank
(Extended Licensed Entity)

Overseas Banking Group
31/12/2012

31/12/2011

30/09/2012

30/09/2012

30/09/2011

Tier One Capital

10.9%

11.0%

10.8%

11.4%

11.5%

Total Capital

12.1%

12.0%

12.2%

12.7%

12.3%

For calculation of minimum capital requirements under Pillar 1 of the Basel II Accord, APRA has accredited the Overseas
Banking Group 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 Overseas Banking Group 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 Overseas Banking Group exceeded the minimum capital adequacy requirements set by
APRA as at 31 December 2012 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 31 December 2012. The
Overseas Banking Group’s Pillar 3 disclosure document for the quarter ended 31 December 2012, in accordance with APS
330, discloses capital adequacy ratios calculated under the Basel II methodology. This document can be accessed at thewebsite anz.com.
Market risk
ANZ New Zealand’s aggregate market risk exposures below have been calculated in accordance with the RBNZ document
BS2B.
Unaudited 31/12/2012$ millions

Interest rate risk

Implied risk
weighted
exposure

Aggregate
capital charge

4,535

363

Foreign currency risk

91

Equity risk

3

-

4,547

364

Residential mortgages by loan-to-valuation ratio (“LVR”)
As required by the RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by ANZ
New Zealand's valuation of the security property at origination of the exposure. Off balance sheet exposures include
undrawn and partially drawn residential mortgage loans as well as commitments to lend. Commitments to lend are formal
offers for housing lending which may or may not be accepted by the customer.
Unaudited 31/12/2012

On-balancesheet

Off-balance
sheet

Total

0% - 59%

20,114

3,432

23,546

60% - 69%

8,350

926

9,276

70% - 79%

12,524

1,193

13,717Less than 80%$ millions

LVR range

40,9885,551

46,53980% - 89%

7,940

943

8,883

Over 90%

5,027

412

5,439

53,955

6,906

60,861Total

12Australia and New Zealand Banking Group Limited - New Zealand Branch

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

31/12/2012

Balances with central banks

1,715

Securities purchased under agreement to resell

942

Certificates of deposit

120

Government, local body stock and bonds

7,151

Government treasury bills

3

Other bonds

3,940

Total liquidity portfolio

13,871

11. Financial Assets Pledged as Collateral$ millions

Unaudited

Unaudited

Audited31/12/2012

31/12/2011

30/09/2012

1,256

Cash collateral given on derivative financial instruments

1,076

1,019

Trading securities encumbered through repurchase agreements

787

244

252

Residential mortgages pledged as security for covered bonds

4,896

2,609

4,977

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

2,139

2,121

2,103

Total financial assets pledged as collateral

8,898

5,993

8,588

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

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 three months ended 31 December 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 the Overseas Banking Group’s equity (as at the end of the period).
This credit exposure information does not include exposures to counterparties if they are booked outside New Zealand.

13. Insurance business
ANZ New Zealand conducts insurance business through companies in the OnePath Insurance Holdings (NZ) Limited group.
The aggregate amount of insurance business in this group comprises assets totalling $584 million (31/12/2011: $470
million; 30/09/2012 $564 million), which is 0.4% (31/12/2011: 0.4%; 30/09/2012 0.4%) of the total consolidated assetsof ANZ New Zealand.

13

Australia and New Zealand Banking Group Limited - New Zealand Branch

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

Unaudited

Unaudited

Audited31/12/2012

31/12/2011

30/09/2012

Credit related commitments
Commitments with certain drawdown due within one year

856

655

742

Commitments to provide financial services

24,83722,18624,551

Total credit related commitments

25,693

22,841

25,293

696

1,820

731

50

76

44

Transaction related contingent items

888

850

913

Trade related contingent liabilities

136

78

117

1,770

2,824

1,805

Guarantees and contingent liabilities
Financial guarantees
Standby letters of credit

Total guarantees and contingent liabilities

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

15. Additional Disclosures
NZ Branch Funding$ millions

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

Overseas Banking Group Profitability and Size
AUD millions

Unaudited
31/12/2012

70
Unaudited
30/09/2012

Profit for the year1

5,667

Net profit after tax for the year as a percentage of average total assets

0.91%

Total assets
Percentage change in total assets over the year1642,127
6.3%

Net profit after tax for the year includes $6 million of profit attributable to non-controlling interests.

Overseas Banking Group asset quality
AUD millions

Unaudited
30/09/2012

Gross impaired assets

5,196

Gross impaired assets as a percentage of total assets

0.81%

Individual provision

1,773

Individual provision as a percentage of gross impaired assets

34.1%

Collective provision

2,765

14

Australia and New Zealand Banking Group Limited - New Zealand Branch

Directors’ andStatement

New

Zealand

Chief

Executive

Officer’s

As at the date on which this Disclosure Statement is signed, after due enquiry, each Director of the Ultimate Parent Bankand the Chief Executive Officer – NZ Branch believes that:(i)

The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements(Overseas Incorporated Registered Banks) Order (No 2) 2012; and(ii)

The Disclosure Statement is not false or misleading.

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

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

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

This Disclosure Statement is dated 14 February 2013, and has been signed by the Chairman of the Ultimate
Parent Bank, on behalf of all Directors, and by the Chief Executive Officer – NZ Branch.

J P MorschelChairman,on behalf of the Directors:
Mr M R P Smith, OBE
Dr G J Clark
Ms P J Dwyer
Mr P A F Hay
Mr H Y Lee
Mr I J Macfarlane, AC
Mr D E Meiklejohn, AM
Ms A M Watkins

A J Bradshaw
Chief Executive Officer – NZ BranchAustralia and New Zealand Banking Group Limited - New Zealand Branch

15

Independent Auditor’s Review Report
To the Directors of Australia and New Zealand Banking Group Limited – New Zealand Branch
We have reviewed pages 3 to 13 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 (No 2) 2012 (the ‘Order’) and the supplementary
information prescribed in Schedules 3, 6, 8, 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 December 2012.
Directors' responsibility for the disclosure statement
The Directors of Australia and New Zealand Banking Group Limited - New Zealand Branch are responsible for the preparation andpresentation of the Disclosure Statement, which includes interim financial statements prepared in accordance with Clause 26 of
the Order which give a true and fair view of the financial position of ANZ New Zealand as at 31 December 2012 and its financial
performance and cash flows for the three 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 the Disclosure 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 thematters to which it relates in accordance with Schedules 3, 6, 8, 9, 10, 12 and 14 of the Order.
Reviewer’s responsibility
We are responsible for reviewing the interim financial statements and the supplementary information, disclosed in accordance with
Clause 26, Schedules 3, 6, 8, 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 order to report toyou 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 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 trueand fair view of the financial position of ANZ New Zealand as at 31 December 2012 and its financial performance and cash flows
for the three months ended on that date.
We are responsible for reviewing the supplementary information (excluding the supplementary information relating to capital
adequacy) in order to report to you whether, in our opinion on the basis of the procedures described below, anything has come toour 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 6, 8, 10, 12 and 14 of the Order.
We are responsible for reviewing the supplementary information relating to credit and market risk exposures and capital adequacy
in order to state whether, on the basis of the procedures described below, anything has come to our attention that would cause us
to believe that the information disclosed in accordance with Schedule 9 is not in all material 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 andanalytical review procedures applied to the financial data, and thus provides less assurance than an 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 the business of ANZ New
Zealand. These matters have not impaired our independence as auditors of ANZ New Zealand. We have no other relationshipwith, 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 all material respects,
in accordance with 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 December 2012 and its financial performance and cash flows for the three months ended on that
date;

b.

the supplementary information prescribed by Schedules 6, 8, 10, 12 and 14 of the Order does not fairly state the matters towhich it relates in accordance with those Schedules; andc.

the supplementary information relating to credit and market risk exposures and capital adequacy prescribed by Schedule 9of 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), and disclosed in accordance with Schedule 9 of
the Order.

Our review was completed on 14 February 2013 and our review opinion is expressed as at that date.

Wellington