ANZ Bank New Zealand Limited
Disclosure Statement
FOR THE THREE MONTHS ENDED 31 DECEMBER 2012 | NUMBER 68 ISSUED FEBRUARY 2013

ANZ Bank New Zealand Limited

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' 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 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 the
Banking Group’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 (New Zealand 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.

ANZ Bank New Zealand Limited

2

General Disclosures
This Disclosure Statement
accordance with the Order.

has

been

issuedin

Credit Rating Information
The Bank has three credit ratings, which are applicable
to its long-term senior unsecured obligations which arepayable in New Zealand in New Zealand dollars.
The Bank’s credit ratings are:Rating Agency
Standard & Poor’s

Current Credit
Rating
Qualification
AAOutlook Stable

Moody’s Investors Service

Aa3

Outlook Stable

Fitch Ratings

AA-

Outlook Stable

Guarantors
As at the date of signing of this Disclosure Statement
the Banking Group has debt securities with a carrying
value as at 31 December 2012 of $207 million for which
the Crown has issued a Guarantee Eligibility Certificate
under the New Zealand Wholesale Funding Guarantee
Facility (“Crown Wholesale Guarantee”). The Crown
closed the Crown Wholesale Guarantee to new debt
securities on 30 April 2010. The closure did not affectdebt securities previously issued with the benefit ofCrown Wholesale Guarantee.
Copies of the Wholesale Deed, and any Guarantee
Eligibility Certificate issued by the Crown in respect of
the Bank, are available on the Treasury website
treasury.govt.nz. The address for service for any
demand on the Crown under the Crown Wholesale
Guarantee is The Treasurer, New Zealand Debt
Management Office, 1 The Terrace, Wellington. Further
information on the Crown Wholesale Guarantee isprovided in the Disclosure Statement for the year ended
30 September 2012 which is available at no charge:a)on the Bank’s website anz.co.nz; andb)within two working days of a request, if a request is
made at the Registered Office or at any ANZ
branch.

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.

Changes to conditions of registration
The conditions of registration applying to the Bank wereamended on 31 October 2012 to change condition 13,
which imposes minimum quantitative requirements forliquidity risk management. The change increases the
Banking Group’s minimum one-year core funding ratio
to 75% from 70% with effect from 1 January 2013.
The following amendments were made on 19 December
2012 to reflect the RBNZ’s adoption of the Basel III
capital framework.
(a) Condition 1, which imposes minimum regulatory
capital requirements, was changed to increase the
Banking Group’s minimum tier one capital ratio to6% from 4% and require a minimum common
equity tier one capital ratio of 4.5%. The change
applies from 1 January 2013.
(b) Condition 1C was added to limit the aggregate
distributions of the Bank’s earnings if the buffer
ratio of the Banking Group is 2.5% or less. Thechange applies from 1 January 2014.

Directorate
There have been no changes to the Directors of the
Bank since 30 September 2012, the balance date of thelast full year Disclosure Statement.

Auditor
The Banking Group’s auditor is KPMG, Chartered
Accountants,
Level 9,10
Customhouse Quay,
Wellington, New Zealand.

ANZ Bank New Zealand Limited

3

Income Statement
Unaudited

Unaudited

3 months to

3 months toYear to31/12/2012

31/12/2011

30/09/2012

Interest income

1,512

1,504

6,017

Interest expense

861

836

3,335

Net interest income

651

668

2,682

Net trading gains

38

39

131

Net funds management and insurance income

66

82

298

93

203

573

3

-

4

851

992

3,688

398

402

1,742

453

590

1,946

42

40

193

Profit before income tax

411

550

1,753

Income tax expense

111

150

428

Profit after income tax

300

400

1,325

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

300

400

1,325

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

288

445

1,257

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

ANZ Bank New Zealand Limited

4

Statement of Changes in Equity
Ordinaryshare capital

Availablefor-salerevaluation
reserve

Cash flow
hedging
reserve

Retainedearnings

Total equity

As at 1 October 2011

6,943

46

141

3,695

10,825

Profit after income tax

-

-

-

400

400

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

399

445

As at 31 December 2011 (Unaudited)

6,943

60

173

4,094

11,270As at 1 October 2011

6,943

46

141

3,695

10,825

Profit after income tax

-

-

-

1,325

1,325

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)

-

1,306

1,257

Ordinary dividend paid

-

-

-

(1,150)(1,150)

6,943

(3)

141

3,851

10,932$ millions

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

-

-

-

300

300

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)

300

288

As at 31 December 2012 (Unaudited)

6,943

(2)

128

4,151

11,220The notes to the financial statements form part of and should be read in conjunction with these financial statements

ANZ Bank New Zealand Limited

5

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

3,126

2,205

1,722

Trading securities

11,638

10,321

12,338Derivative financial instruments

10,72012,834

12,753

-

-

15

47

255

57

88,22883,516

86,678Investments backing insurance policy liabilities

154

116

142

Insurance policy assets

308

231

301

Investments in associates

98

99

99

594

663

592

$ millions

Note

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

4

Other assets
Deferred tax assets

84

88

93

331

322

323

3,506

3,508

3,505

Total assets

121,982

116,498

121,449

Interest earning and discount bearing assets

105,655

97,788103,341

Premises and equipment
Goodwill and other intangible assets

Liabilities
Due to other financial institutions
Deposits and other borrowings

7

2,419

1,664

1,759

77,08069,38773,652

Due to Immediate Parent Company
Derivative financial instruments

622

75

740

11,566

13,543

13,930Current tax liabilities
Payables and other liabilities

3

42

-

1,659

1,504

1,685

Provisions

308

278

339

15,935

16,734

17,244

1,170

2,001

1,168

110,762

105,228

110,517

11,22011,27010,932

6,943

6,943

6,943

126

233

138

4,151

4,094

3,851

Total equity

11,22011,27010,932

Interest and discount bearing liabilities

91,33084,49589,299Bonds and notes
Loan capital
Total liabilities
Net assets
Represented by:
Share capital
Reserves
Retained earnings

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

ANZ Bank New Zealand Limited

6

Condensed Cash Flow Statement
Unaudited

Unaudited

3 months to

3 months toYear to31/12/2012

31/12/2011

30/09/2012

Interest received

1,493

1,466

5,991

Interest paid

(849)

(832)

(3,301)$ 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 andliabilities

237

224

845

(556)

(562)

(2,023)

325

296

1,512

Net changes in operating assets and liabilities

3,341(1,435)(2,545)

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

3,666(1,139)(1,033)

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

6,244

Cash outflows used in financing activities(1,965)(1,725)(7,411)

Net cash flows used in financing activities(1,965)(858)(1,167)

Net increase / (decrease) in cash and cash equivalents

1,672(2,008)(2,279)Cash and cash equivalents at beginning of the period

3,255

5,534

5,534

Cash and cash equivalents at end of the period

4,927

3,526

3,255

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

ANZ Bank New Zealand Limited

7

Notes to the Financial Statements
1.

Significant Accounting Policies(i)Reporting entity and statement of compliance
These interim financial statements are for the
Banking Group for the three months ended 31
December 2012.
They have been prepared inaccordance with New Zealand Generally Accepted
Accounting Practice as appropriate for profit oriented
entities, the requirements of NZ IAS 34 Interim
Financial Reporting and the Order, and should be readin conjunction with the Banking Group’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:2.

•

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
obligations are measured using the Projected Unit
Credit method.
(iii) Changes in accounting policies
The accounting policies adopted by the Banking
Group are consistent with those adopted anddisclosed in the previous full year DisclosureStatement.
(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 financial statements consolidate the financial
statements of the Bank and its subsidiaries.

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

Audited

3 months to

3 months toYear to31/12/2012

31/12/2011

30/09/2012

107

122

455

(21)

74

14

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

-

-

83

Other income

7

7

21

93

203

573

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.

ANZ Bank New Zealand Limited

8

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. The
Banking Group'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, the Banking Group 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 the Banking Group’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

RetailInstitutional

Other 2

Total

17

223

(303)

851

37

(67)

310

-

355

54

156

7

851

203

20

98

(12)

411

Commercial

Wealth

244

670

35

(315)

Total revenues

279

Profit before income tax

102

Unaudited 3 months to 31/12/2012

External revenues
Intersegment revenues

Unaudited 3 months to 31/12/2011

External revenues

267

695

38

197

(205)

992

Intersegment revenues

15

(336)

36

(26)

311

-

Total revenues

282

359

74

171

106

992

Profit before income tax

110

198

36

117

89

550

1,020

2,743

111

804

(990)

3,688

126

(1,293)

143

(168)

1,192

-

1,146

1,450

254

636

202

3,688

422

817

108

425

(19)

1,753

Audited year to 30/09/2012

External revenues
Intersegment revenues
Total revenues
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 the Banking Group and is reimbursed internally.

ANZ Bank New Zealand Limited

9Notes 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

47,602

43,402

46,123

Term loans - non-housing

37,83537,54637,749Finance lease receivables

816

792

806

$ millions

Note

Gross loans and advances

89,497

84,91987,954(1,056)(1,133)(1,054)

(263)

(260)

(258)

(7)

7

(2)

Deferred fee revenue and expenses

(62)

(57)

(60)

Capitalised brokerage/mortgage origination fees

119

40

98

88,22883,516

86,678Provision for credit impairment

6

Unearned finance income
Fair value hedge adjustment

Total net loans and advances

The Bank has sold residential mortgages to the NZ Branch with a net carrying value of $8,576 million as at 31 December
2012 (31/12/2011 $9,915 million, 30/09/2012 $9,396 million). These assets qualify for derecognition as the Bank does
not retain a continuing involvement in the transferred assets.

5.

Impaired and Past Due Assets
Retailmortgages

Other retail
exposures

Non retail
exposures

Total

Total individually impaired assets

276

48

787

1,111

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

105

38

64

207

Total individually impaired assets

390

49

1,204

1,643

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

120

38

89

247

Total individually impaired assets

285

44

874

1,203

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

91

33

86

210

$ millions
Unaudited 31/12/2012

Unaudited 31/12/2011

Audited 30/09/2012

ANZ Bank New Zealand Limited

10Notes to the Financial Statements
6.

Provision for Credit Impairment
Retailmortgages

Other retail
exposures

Non retail
exposures

Total

Collective provision

112

118

375

605

Individual provision

104

31

316

451

Total provision for credit impairment

216

149

691

1,056

Collective provision charge / (credit)

8

(7)

-

1

Individual provision charge

3

11

27

41

11

4

27

42

Collective provision

116

142

390

648

Individual provision

137

29

319

485

Total provision for credit impairment

253

171

709

1,133

$ millions
Unaudited 31/12/2012

Total charge in income statement
Unaudited 31/12/2011

Collective provision credit

(5)

(5)

(4)

(14)

Individual provision charge

5

12

37

54

Total charge in income statement

-

7

33

40

Collective provision

104

125

375

604

Individual provision

119

26

305

450

Total provision for credit impairment

223

151

680

1,054

Collective provision credit

(16)

(22)

(20)

(58)

Individual provision charge

36

55

160

251

Total charge in income statement

20

33

140

193

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

ANZ Bank New Zealand Limited

11

Notes to the Financial Statements
8.

Related Party Transactions
Unaudited

Unaudited

Audited31/12/2012

31/12/2011

30/09/2012

Total due from related parties

2,332

2,875

3,131

Total due to related parties

5,785

6,705

5,990

$ millions

9.

Capital Adequacy

Capital ratios of the Banking Group under the Basel II internal models based approach (Unaudited)

Tier One Capital
RBNZ minimum Tier One Capital ratio
Total Capital

31/12/2012

31/12/2011

30/09/2012

11.15%

11.27%

10.80%

4.00%

4.00%

4.00%

12.80%

14.22%

12.48%

RBNZ minimum Total Capital ratio

8.00%

8.00%

8.00%

Tier One Capital

11,092

Exposure atdefault

Risk weighted
exposure or
implied risk
weighted
exposure1

Total capitalrequirement

Corporate exposures

44,40526,0792,086

Sovereign exposures

9,601

96

8

Bank exposures

10,820

1,967

157

Retail mortgage exposures

51,563

13,347

1,068

9,237

6,521

522

Total exposures subject to internal ratings based approach

125,626

48,0103,841

Specialised lending exposures subject to slotting approach

8,264

7,851

628

Exposures subject to standardised approach

268

255

20

Equity exposures

100

425

34

Other exposures

2,996

1,033

83

Total credit risk$mLess deductions from Tier One Capital

3,559

Total Tier One Capital

7,533

Tier Two Capital

1,170

Less deductions from Tier Two Capital
Total Capital$ millions

Other retail exposures

53
8,650

137,254

57,574

4,606

Operational risk

n/a

5,401

432

Market risk

n/a

4,601

368

137,254

67,576

5,406

Total
1

Total credit risk weighted exposures include a scalar of 1.06 in accordance with the Bank's Conditions of Registration.

Pillar II capital for other material risks
The Banking Group has an Internal Capital Adequacy Assessment Process ("ICAAP") which complies with the requirementsof the Bank's Conditions of Registration.
Under the Banking Group's ICAAP it identifies and measures all "other material risks", which are those material risks thatare not explicitly captured in the calculation of the Banking Group's tier one and total capital ratios. The other material
risks identified by the Banking Group include business risk, pension risk, insurance risk, funds management risk, lapse
risk, premises and equipment risk and capitalised origination fees risk.
The Banking Group's internal capital allocation for these other material risks is $376 million (31/12/2011 $326 million;
30/09/2012 $338 million).

ANZ Bank New Zealand Limited

12

Notes to the Financial Statements
The Banking Group regularly reviews the methodologies used to calculate the economic capital allocated to other material
risks. Updated capital methodologies (particularly relating to fixed asset risk and business risk) were applied in November
2012 and the prior period restated accordingly.
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 the
Banking Group'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%

17,0893,373

20,462

60% - 69%

7,151

919

8,070

70% - 79%

10,6171,189

11,806

Less than 80%$ millions

LVR range

34,857

5,481

40,33880% - 89%

6,337

942

7,279

Over 90%

4,196

411

4,607

45,3906,834

52,224Total

10. Liquidity Portfolio
The Banking Group holds a diversified portfolio of cash and high quality liquid securities to support liquidity risk
management. The size of the Banking Group’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

Cash collateral given on derivative financial instruments

Unaudited

Unaudited

Audited31/12/2012

31/12/2011

30/09/2012

1,256

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.
The Banking Group 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.

ANZ Bank New Zealand Limited

13

Notes to the Financial Statements
12. Concentrations of Credit Risk to Individual Counterparties
The Banking Group 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 the Banking Group’s period end or peak endof-day credit exposure equalled or exceeded 10% of the Banking Group’s equity (as at the end of the period).

13. Insurance business
The Banking Group conducts insurance business through companies in the OnePath Insurance Holdings (NZ) Limitedgroup. 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 0.5% (31/12/2011: 0.4%; 30/09/2012 0.5%) of the total consolidated
assets of the Banking Group.

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

25,014

22,33924,698

Total credit related commitments

25,87022,99425,440

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

The Banking Group 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
The Banking Group has other contingent liabilities in respect of actual and possible claims and court proceedings. An
assessment of the Banking Group’s likely loss in respect of these matters has been made on a case-by-case basis andprovision made where deemed necessary.

15. Subsequent Events
On 13 February 2013 the Bank’s Board resolved to pay an ordinary dividend of $465 million no later than 31 March 2013.

ANZ Bank New Zealand Limited

14

Directors’ Statement
As at the date on which this Disclosure Statement is signed, after due enquiry, each Director believes that:(i) The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements(New Zealand 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 believes that:(i) ANZ Bank New Zealand Limited has complied with all Conditions of Registration that applied during that period;(ii) Credit exposures to connected persons were not contrary to the interests of the Banking Group;(iii) ANZ Bank New Zealand Limited had systems in place to monitor and control adequately the Banking Group’s material
risks, including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk,
operational risk and other business risks, and that those systems were being properly applied.
This Disclosure Statement is dated, and has been signed by or on behalf of all Directors of the Bank on, 13
February 2013. On that date, the Directors of the Bank were:A J Carter

S C Elliott

N M T Geary, CBE

D D Hisco

J F Judge

M R P Smith, OBEANZ Bank New Zealand Limited

15--

Independent Auditor’s Review Report
To the Shareholder of ANZ Bank New Zealand Limited
We have reviewed pages 3 to 13 of the interim financial statements of ANZ Bank New Zealand Limited (the ‘Bank’) and its
subsidiary companies (the ‘Banking Group’) prepared and disclosed in accordance with the Registered Bank Disclosure Statements(New Zealand Incorporated Registered Banks) Order (No 2) 2012 (the ‘Order’) and the supplementary information prescribed in
Schedules 3, 6, 8, 12, 13, 16 and 18 of the Order. The interim financial statements, and supplementary information, provide
information about the past financial performance and cash flows of the Banking Group and its financial position as at 31 December
2012.
Directors' responsibility for the disclosure statement
The Directors of ANZ Bank New Zealand Limited are responsible for the preparation and presentation of the Disclosure Statement,
which includes interim financial statements prepared in accordance with Clause 25 of the Order which give a true and fair view ofthe financial position of the Banking Group as at 31 December 2012 and its financial performance and cash flows for the threemonths 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, 12, 13, 16 and 18 of the Order.
Reviewer’s responsibility
We are responsible for reviewing the interim financial statements and the supplementary information, disclosed in accordance with
Clause 25, Schedules 3, 6, 8, 12, 13, 16 and 18 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 the Banking Group 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, 13, 16 and 18 of the Order.
We are responsible for reviewing the supplementary information relating to capital adequacy in order to state whether, on thebasis 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 12 is not in all material respects prepared in accordance with the Bank’s Conditions ofRegistration and with the Bank’s internal models for credit risk and operational risk as accredited by the Reserve Bank of New
Zealand and disclosed in accordance with Schedule 12 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 Banking Group 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 the Banking Group. In addition, certain partners and employees of ourfirm may also deal with the Banking Group on normal terms within the ordinary course of trading activities of the business of the
Banking Group. These matters have not impaired our independence as auditors of the Banking Group. We have no otherrelationship with, or interest in, the Banking Group.
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
the Banking Group 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, 13, 16 and 18 of the Order does not fairly state the matters towhich it relates in accordance with those Schedules; andc.

the supplementary information relating to capital adequacy as required by Schedule 12 of the Order, is not in all material
respects prepared in accordance with the Bank’s Conditions of Registration and with the Bank’s internal models for credit risk
and operational risk as accredited by the Reserve Bank of New Zealand, and disclosed in accordance with Schedule 12 of theOrder.

Our review was completed on 13 February 2013 and our review opinion is expressed as at that date.

Wellington