Media Release
For Release: 17 February 2016

ANZ New Zealand Disclosure Statement- three months to December 2015
Australia and New Zealand Banking Group Limited (ANZ) NZ Branch Disclosure Statement
for the three months ended 31 December 2015 was released today, showing unaudited
statutory profit of NZ$347 million for ANZ New Zealand1, down from NZ$425 million in thethree months ended 31 December 2014.
Unaudited cash profit2 was down 6% at NZ$390 million compared with NZ$415 million inthe prior comparative period.
Net interest income increased by 4% over the prior comparative period, reflecting continued
lending growth (up 8% since 31 December 2014), while interest margins have contracted
due to strong lending competition and a customer preference for fixed-rate mortgages. Inother operating income, the prior comparative period reflected a strong performance in theMarkets business compared with a difficult trading period this quarter.
The credit impairment charge increased due to lower write-backs.
Key Points

All comparisons are three months to 31 December 2015 compared with three months to 31 December 2014 unless otherwise noted

Unaudited statutory profit of NZ$347 million, down 18%.

Unaudited cash profit down 6% at NZ$390 million.

Profit before provisions down 5%.

Customer deposits up 4% and gross lending up 1% over the three months.

ANZ New Zealand Chief Executive Officer David Hisco said: “The New Zealand economy
continues to perform well. Headwinds are emerging, however, because of global concerns
about credit risk, resulting in wholesale funding costs increasing for banks.
“As New Zealand’s most popular bank, ANZ will continue to draw on its strong financial
position and scale to contribute to economic growth, maintain our financial performance andsupport customers in a highly competitive and changing environment.”
A table of key financial information follows
For media enquiries contact:
Pete Barnao
Communications Manager, Media
Tel: +64-9-252 6623 or +64-27-277 3139
Email: Pete.Barnao@anz.com
1

ANZ New Zealand represents all of ANZ’s operations in New Zealand, including ANZ Bank New Zealand Limited, its
parent company ANZ Holdings (New Zealand) Limited and the New Zealand branch of ANZ.
2Statutory profit has been adjusted to exclude non-core items to arrive at cash profit, the result for the ongoing
business activities of ANZ New Zealand. All comparisons in Key Points are on a cash profit basis and refer to theprior comparative period unless otherwise stated. Refer to Summary of Key Financial Information for details ofreconciling items between cash profit and statutory profit.

Summary of key financial information
ANZ New ZealandProfit3 months
Dec 15$m

3 months
Dec 14$m

Dec 15 v
Dec 14$m

Dec 15 v
Dec 14%

Full year
Sep 15$m

Net interest income
Other operating income
Operating income
Operating expenses
Profit before credit impairment andincome tax
Provision for credit impairment
Profit before income tax
Income tax expense

748
182
930
374

717
243960375

31(61)
(30)
(1)

4%
-25%
-3%
0%

2,880
1,005
3,885
1,478

556

585

(29)

-5%

2,407

27
529
139

13572
157

14(43)
(18)

large
-8%
-11%

76
2,331
644

Cash profit

390

415

(25)

-6%

1,687

415

(25)

-6%

1,687

Reconciliation of cash profit to statutory profit
Cash profit390
Reconciling items (net of tax):
Economic hedging volatility 1(31)Insurance policy asset valuations 2(12)(6)(25)

5216(28)

32

Statutory profit

347

425(78)

-18%

1,771

Consisting of:RetailCommercial
Operations & Support
New Zealand Businesses
WealthInstitutional
Other

196
107
10313
3139
7188
129
317
31
67
-8(22)
10(4)
(28)
74%
-17%
large
-1%
0%
-42%
large

735
478
41,217
136
333
1-6%

1,687

Cash profit

390

415

(25)

Reconciling items(43)

10(53)

Statutory profit

347

425(78)84-18%

1,771

1. Economic hedging - fair value gains/(losses)

ANZ New Zealand enters into economic hedges to manage its interest rate and foreign exchangerisk. Statutory profit includes volatility from fair value gains or losses on economic hedges thatare not designated in accounting hedge relationships under IFRS, as well as ineffectiveness fromdesignated accounting cash flow and fair value hedges. Fair value gains/(losses) on all of these
economic hedges are excluded from cash profit, as the profit or loss resulting from thesetransactions will reverse over time to match the profit or loss from the economically hedged item.
2. Insurance policy assets

Profit and loss volatility is created by the remeasurement of policyholder assets for changes inmarket discount rates, which over time reverses to zero.