ANZ BANK NEW ZEALAND LIMITEDREGISTERED BANK DISCLOSURE STATEMENTFOR THE SIX MONTHS ENDED 31 MARCH 2018
NUMBER 89 | ISSUED MAY 2018

ANZ Bank New Zealand Limited

REGISTERED BANK DISCLOSURE STATEMENTFOR THE SIX MONTHS ENDED 31 MARCH 2018

CONTENTSDISCLOSURE STATEMENT
Condensed Consolidated Interim Financial Statements (Financial Statements)
Income Statement

2Statement of Comprehensive Income

2

Balance Sheet

3

Condensed Cash Flow Statement

4Statement of Changes in Equity

4

Notes to the Financial Statements

5

Registered Bank Disclosures
General Disclosures

11

Additional Financial Disclosures

12

Asset Quality

17

Capital Adequacy under the Internal Models Based Approach, and Regulatory Liquidity Ratios

18

Concentration of Credit Risk to Individual Counterparties

25

Insurance Business25

Directors' Statement

26

Independent Auditor’s Review Report

27

SUPPLEMENTARY INFORMATIONBank Financial Strength Dashboard

29

Other Information

31

GLOSSARY OF TERMS
In this Registered Bank Disclosure Statement (Disclosure Statement) unless the context otherwise requires:
Bank means ANZ Bank New Zealand Limited.
Banking Group, We or Our means the Bank and all its controlled entities.
Immediate Parent Company means ANZ Holdings (New Zealand) Limited.
Ultimate Parent Bank means Australia and New Zealand Banking Group Limited.
Overseas Banking Group means the worldwide operations of Australia and New Zealand Banking Group Limited including its controlled
entities.
New Zealand business means all business, operations, or undertakings conducted in or from New Zealand identified and treated as if itwere conducted by a company formed and registered in New Zealand.
NZ Branch means the New Zealand business of the Ultimate Parent Bank.
ANZ New Zealand means the New Zealand business of the Overseas Banking Group.
UDC means UDC Finance Limited.
Registered Office is Ground Floor, ANZ Centre, 23-29 Albert Street, Auckland, New Zealand, which is also the Banking Group’s address forservice.
RBNZ means the Reserve Bank of New Zealand.
APRA means the Australian Prudential Regulation Authority.
the Order means the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014.
Any term or expression which is defined in, or in the manner prescribed by, the Order shall have the meaning given in or prescribed by theOrder.

ANZ Bank New Zealand Limited

Unaudited

INCOME STATEMENT
3 months to
31 Mar 18
31 Mar 17
Note

6 months to
31 Mar 18
31 Mar 17

NZ$m

NZ$m

NZ$m

NZ$m

Interest income

1,577

1,524

3,170

3,075

Interest expense

806

773

1,614

1,562

771

751

1,556

1,513

172

133

382

301

93

112

204

133

-

-

1

1

Operating income

1,036

996

2,143

1,948

Operating expenses

361

361

747

730

Profit before credit impairment and income tax

675

635

1,396

1,218

60

4

72

42

Profit before income tax

615

631

1,324

1,176

Income tax expense

167

178

366

330

Profit after income tax

448

453

958

846

Net interest income
Other operating income

2

Net funds management and insurance income
Share of associates' profit

Credit impairment charge

5

STATEMENT OF COMPREHENSIVE INCOME
3 months to
31 Mar 18
31 Mar 17

6 months to
31 Mar 18
31 Mar 17

NZ$m

NZ$m

NZ$m

NZ$m

448

453

958

846

Actuarial gain on defined benefit schemes

2

19

2

19

Income tax expense relating to items that will not be reclassified

(1)

(5)

(1)

(5)

Total items that will not be reclassified to profit or loss

1

14

1

14

Unrealised losses recognised directly in equity

(8)

-

(6)

(15)

Realised losses transferred to income statement

1

4

3

6

Income tax credit / (expense) relating to items that may be reclassified

2

(1)

1

2

Total items that may be reclassified subsequently to profit or loss

(5)

3

(2)

(7)

444

470

957

853

Profit after income tax
Items that will not be reclassified to profit or loss

Items that may be reclassified subsequently to profit or loss

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

2

ANZ Bank New Zealand Limited

Unaudited

BALANCE SHEET
As at

Note

31 Mar 18

30 Sep 17

NZ$m

NZ$m

2,752

2,338

Assets
Cash

763

536

Collateral paid

1,634

1,415

Trading securities

8,416

7,663

152

123

8,147

9,878

Settlement balances receivable

Investments backing insurance contract liabilities
Derivative financial instruments
Current tax assets
Available-for-sale assets

15

-

6,609

6,360

Net loans and advances

4

119,649

117,627

Assets held for sale

11

3,225

3,065

Other assets

711

683

Life insurance contract assets

669

636

Investments in associates-

7

Premises and equipment

354

367

Goodwill and other intangible assets
Total assets

3,266

3,275

156,362

153,973

1,860

1,840

Liabilities
Settlement balances payable
Collateral received
Deposits and other borrowings

7

Derivative financial instruments

760

613

106,080

101,657

7,766

9,826

Current tax liabilities-

39

Deferred tax liabilities

207

187

1,017

1,088

Liabilities held for sale

11

1,104

1,151

Employee entitlements

117

119

Other provisions

62

66

24,456

24,606

Total liabilities

143,429

141,192

Net assets

12,933

12,781

8,888

8,888

Payables and other liabilities

Debt issuances

8

EquityShare capital

46

48

Retained earnings

3,999

3,845

Total equity

12,933

12,781

Reserves

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

3

ANZ Bank New Zealand Limited

Unaudited

CONDENSED CASH FLOW STATEMENT
For the six months ended

31 Mar 18

31 Mar 17

NZ$m

NZ$m

Cash flows from operating activities
Interest received

3,182

3,084

Interest paid

(1,625)(1,560)

Other cash inflows provided by operating activities

530

451

Other cash outflows used in operating activities(1,182)(1,121)

Cash flows from operating profits before changes in operating assets and liabilities

905

854

Net changes in operating assets and liabilities

401

(802)

1,306

52

Net cash flows provided by operating activities
Cash flows from investing activities
Cash inflows provided by investing activities

35-

Cash outflows used in investing activities

(18)

(26)

Net cash flows used in investing activities

17

(26)

Cash flows from financing activities
Cash inflows provided by financing activities

2,885

2,943

Cash outflows used in financing activities(3,825)(3,388)Net cash flows used in financing activities

(940)

(445)

Net increase in cash and cash equivalents

383

(419)

Cash and cash equivalents at beginning of the period

2,439

2,315

Cash and cash equivalents at end of the period

2,822

1,896

Total
equitySTATEMENT OF CHANGES IN EQUITY

Share capital

Availablefor-salerevaluation
reserve

Cash flow
hedging
reserve

Retainedearnings

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

As at 1 October 2016

8,888

-

62

3,760

12,710

Profit after income tax

-

-

-

846

846

Unrealised gains / (losses) recognised directly in equity

-

7

(22)

-

(15)

Realised losses transferred to the income statement

-

-

6

-

6

Actuarial gain on defined benefit schemes

-

-

-

19

19

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

-

(2)

4

(5)

(3)

Total comprehensive income for the period

-

5

(12)

860

853

Ordinary dividend paid

-

-

-

(785)

(785)

Preference dividend paid

-

-

-

(5)

(5)

As at 31 March 2017

8,888

5

50

3,830

12,773As at 1 October 2017

8,888

5

43

3,845

12,781

Profit after income tax

-

-

-

958

958

Unrealised gains / (losses) recognised directly in equity

-

9

(15)

-

(6)

Realised losses transferred to the income statement

-

-

3

-

3

Actuarial gain on defined benefit schemes

-

-

-

2

2

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

-

(2)

3

(1)

-

Total comprehensive income for the period

-

7

(9)

959

957

Ordinary dividend paid

-

-

-

(800)

(800)

Preference dividend paid
As at 31 March 2018

-

-

-

(5)

(5)

8,888

12

34

3,999

12,933The notes to the financial statements form part of and should be read in conjunction with these financial statements

4

ANZ Bank New Zealand Limited

Unaudited

NOTES TO THE FINANCIAL STATEMENTS
1.

SIGNIFICANT ACCOUNTING POLICIESStatement of compliance
These interim financial statements for the Banking Group have been prepared in accordance with the requirements of the Reserve Bank of
New Zealand Act 1989, and should be read in conjunction with the Banking Group’s financial statements for the year ended 30 September
2017.
These financial statements comply with:• New Zealand Generally Accepted Accounting Practice, as defined in the Financial Reporting Act 2013
• NZ IAS 34 Interim Financial Reporting and other applicable Financial Reporting Standards, as appropriate for publicly accountable forprofit entities• IAS 34 Interim Financial Reporting.
Use of estimates, assumptions and judgements
The preparation of these interim financial statements requires the use of management judgement, estimates and assumptions that affectreported amounts and the application of accounting policies. Discussion of the critical accounting estimates and judgements, which
include complex or subjective decisions or assessments are provided in the previous full year financial statements. Such estimates andjudgements are reviewed on an ongoing basis.
Basis of measurement
These financial statements have been prepared on a going concern basis in accordance with historical cost concepts except that thefollowing assets and liabilities are stated at their fair value:••••

derivative financial instruments
available-for-sale financial assets
financial instruments held for trading
financial instruments designated at fair value through profit and loss.

Changes in accounting policies
The accounting policies adopted by the Banking Group are consistent with those adopted and disclosed in the previous full year financial
statements.
Presentation currency and rounding
The amounts contained in the financial statements are presented in millions of New Zealand dollars, unless otherwise stated.
Comparatives
Certain amounts in the comparative information have been reclassified to ensure consistency with the current period’s presentation.
Principles of consolidation
The financial statements consolidate the financial statements of the Bank and its subsidiaries.

2.

OTHER OPERATING INCOME
3 months to
31 Mar 18
31 Mar 17
Note

6 months to
31 Mar 18
31 Mar 17

NZ$m

NZ$m

NZ$m

NZ$m

98

92

203

197

Net trading gains
Fair value gain / (loss) on hedging activities and financial liabilities
designated at fair value
Net foreign exchange earnings and other financial instruments income

39

54

99

109

11

(33)

24

(49)

50

21

123

60

Derivative valuation adjustments

(4)

10

1

27

Loss on sale of mortgages to NZ Branch

-

-

(1)

(1)

20

-

20

-

i) Net fee and commission incomeii) Other income

Gain on UDC terminated transaction

11

Insurance proceeds

-

-

20

-

Other

8

10

16

18

Other income

74

41

179

104

Total other operating income

172

133

382

301

5

ANZ Bank New Zealand Limited

Unaudited

NOTES TO THE FINANCIAL STATEMENTS
3.

SEGMENT REPORTING

The Banking Group is organised into three major business segments for segment reporting purposes - 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.
Segment reporting has been updated to reflect minor changes to the Banking Group’s structure. Comparative data has been adjusted tobe consistent with the current period’s segment definitions.
RetailRetail provides a full range of banking and wealth management services to consumer, private banking and small business banking
customers. We deliver our services via our internet and app-based digital solutions and network of branches, mortgage specialists,
relationship managers and contact centres.
Commercial
Commercial provides a full range of banking services including traditional relationship banking and sophisticated financial solutions(including asset financing) through dedicated managers focusing on privately owned medium to large enterprises and the agriculturebusiness segment.
Institutional
The Institutional division services global institutional and business customers across three product sets: Transaction Banking, Loans &Specialised Finance and Markets.
•

Transaction Banking provides working capital and liquidity solutions including documentary trade, supply chain financing as well as
cash management solutions, deposits, payments and clearing.

•

Loans & Specialised Finance provides loan products, loan syndication, specialised loan structuring and execution, project and export
finance, debt structuring and acquisition finance, structured trade and asset finance, and corporate advisory.

•

Markets provide risk management services on foreign exchange, interest rates, credit, commodities, debt capital markets and wealthsolutions in addition to managing the Banking Group’s interest rate exposure and liquidity position.

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

Institutional

Other

Total

For the six months ended 31 March 2018

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

External revenues

1,346

894

313

(410)

2,143

Intersegment revenues1

(127)

(405)

(6)

538

-

Total revenues

1,219

489

307

128

2,143

486

267

121

84

958

1,948

Profit after income tax
For the six months ended 31 March 2017

External revenues

1,315

893

363

(623)

Intersegment revenues1

(137)

(437)

2

572

-

Total revenues

1,178

456

365

(51)

1,948

Profit / (loss) after income tax

478

219

195

(46)

846

31 Mar 18

31 Mar 17

NZ$m

NZ$m

Other segment
Other segment profit / (loss) after income tax comprises:
For the six months ended
2

Central functions

16

(1)

Technology and Group Centre

42

26

Economic hedges

16

(36)

Revaluation of insurance policies

10

(35)

Total

84

(46)

1
2

Intersegment transfers are accounted for and determined on an arm's length or cost recovery basis.
Central functions’ external revenues for the six months to 31 March 2018 includes the $20 million insurance proceeds (note 2) that were received from a member of theOverseas Banking Group.

6

ANZ Bank New Zealand Limited

Unaudited

NOTES TO THE FINANCIAL STATEMENTS
4.

NET LOANS AND ADVANCES
31 Mar 18

30 Sep 17

NZ$m

NZ$m

Overdrafts

861

1,040

Credit cards

1,660

1,638

Term loans - housing

75,02072,524

Term loans - non-housing

43,99044,227

Note

1,696

1,577

123,227

121,006

Unearned income

(236)

(222)

Capitalised brokerage/mortgage origination fees

318

334

123,309

121,118

Finance lease and hire purchase receivables
Subtotal

Gross loans and advances (including assets classified as held for sale)Less: Provision for credit impairment

5

Net loans and advances (including assets classified as held for sale)Less: UDC net loans and advances held for sale11

Net loans and advances

(590)

(579)

122,719

120,539(3,070)(2,912)

119,649

117,627

The Bank has sold residential mortgages to the NZ Branch with a net carrying value of NZ$3,516 million as at 31 March 2018 (30September 2017: NZ$4,337 million). These assets qualify for derecognition as the Bank does not retain a continuing involvement in thetransferred assets.

5.

PROVISION FOR CREDIT IMPAIRMENTProvision for credit impairment - balance sheet
31 Mar 18

30 Sep 17

NZ$m

NZ$m

Individual provision

175

152

Collective provision

415

427

Total provision for credit impairment

590

579

Credit impairment charge - income statement

3 months to

6 months to

31 Mar 18

31 Mar 17

31 Mar 18

31 Mar 17

NZ$m

NZ$m

NZ$m

NZ$m

New and increased provisions

92

42

132

116

Write-backs

(18)

(19)

(30)

(34)

Recoveries of amounts previously written-off

(12)

(6)

(18)

(12)

Individual credit impairment charge

62

17

84

70

Collective credit impairment release

(2)

(13)

(12)

(28)

Total credit impairment charge

60

4

72

42

31 Mar 18

30 Sep 17

NZ$m

NZ$m

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

197

182

Impaired loans

344

357

6.

7

IMPAIRED AND PAST DUE LOANS

ANZ Bank New Zealand Limited

Unaudited

NOTES TO THE FINANCIAL STATEMENTS
7.

DEPOSITS AND OTHER BORROWINGS
31 Mar 18

30 Sep 17

NZ$m

NZ$m

Term deposits

47,72145,457

On demand and short term deposits

42,152

41,451

Deposits not bearing interest

9,940

8,882

UDC secured investments

958

1,039

Total customer deposits

100,771

96,829Certificates of deposit

2,020

1,916

Deposits from banks and securities sold under repurchase agreements

1,643

157

Commercial paper

2,554

3,721

50

73

107,038

102,696Note

Deposits from Ultimate Parent Bank and other members of ANZ New Zealand
Deposits and other borrowings (including liabilities classified as held for sale)(958)(1,039)106,080

101,657

31 Mar 18
NZ$m

30 Sep 17
NZ$m

Senior debt
Covered bonds
Total unsubordinated debt
Subordinated debt

17,3703,802
21,172

16,0085,315
21,323- Additional Tier 1 capital

2,438

2,438

Less: UDC secured investments held for sale
Deposits and other borrowings

8.

11

DEBT ISSUANCES

846

845

Total subordinated debt

3,284

3,283

Total debt issued

24,456

24,606- Other

Covered bonds 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 Trust). The Covered Bond Trust is a member of the Banking Group, whereas the Covered
Bond Guarantor is not a member of the Banking Group.
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 the Covered Bond Guarantor as trustee of the Covered Bond Trust of issuances of covered bondsby 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 (if any) after all prior ranking creditors of the Covered Bond Trust have been satisfied.

8

ANZ Bank New Zealand Limited

Unaudited

NOTES TO THE FINANCIAL STATEMENTS
9.

FAIR VALUE MEASUREMENTS

Financial assets and financial liabilities measured at fair value in the balance sheet
The Banking Group categorises financial assets and liabilities carried at fair value into a fair value hierarchy as required by NZ IFRS 13 Fair
Value Measurement based on the observability of inputs used to measure fair value:•

Level 1 – valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

•

Level 2 – valuations using inputs other than quoted prices included within Level 1 that are observable for a similar asset or liability,
either directly or indirectly. Modelled valuation techniques are used that incorporate observable market inputs for securities withsimilar credit risk, maturity and yield characteristics; and or/current market yields for similar instruments.

•

Level 3 – valuations using inputs for the asset or liability that are not based on observable market date (unobservable inputs).

We deem transfers into and out of Level 1 and Level 2 to have occurred as at the beginning of the reporting period in which the transfer
occurred.
The table below summarises the attribution of financial instruments carried at fair value to the fair value hierarchy:

Level 1
NZ$m

31 Mar 18
Level 2
Level 3
NZ$m
NZ$m

Total
NZ$m

Level 1
NZ$m

30 Sep 17
Level 2
Level 3
NZ$m
NZ$m

6,959

1,457

-

8,416

7,276

387

-

7,663

4

8,140

3

8,147

5

9,870

3

9,878

6,018

590

1

6,609

5,336

1,023

1

6,360

-

152

-

152

-

123

-

123

12,981

10,3394

23,324

12,617

11,403

4

24,024

Deposits and other borrowings

-

2,554

-

2,554

-

3,721

-

3,721

Derivative financial instruments

13

7,752

1

7,766

24

9,801

1

9,826

Payables and other liabilities

179

-

-

179

151

-

-

151

Total financial liabilities held at fair value

192

10,306

1

10,499175

13,522

1

13,698Total
NZ$m

Financial assets
Trading securities
Derivative financial instruments
Available-for-sale assets
Investments backing insurance contract liabilities
Total financial assets held at fair value
Financial liabilities

Financial assets and financial liabilities not measured at fair value
Below is a comparison of the carrying amounts as reported on the balance sheet and fair values of financial asset and liability categories
other than those categories where the carrying amount is at fair value or considered a reasonable approximation of fair value.
The fair values below have been calculated using discounted cash flow techniques where contractual future cash flows of the instrument
are discounted using discount rates incorporating wholesale market rates or market borrowing rates of debt with similar maturities or ayield curve appropriate for the remaining term to maturity.
31 Mar 18
Carrying
amount
NZ$m

30 Sep 17
Fair value
NZ$m

Carrying
amountNZ$mFair value
NZ$m

122,719

122,900

120,539

120,588

Deposits and other borrowings2, 3

104,484

104,539

98,97599,030Debt issuances1

24,45624,80424,60625,018AssetsNet loans and advances1, 2Liabilities

1

2
3

9

Fair value hedging is applied to certain financial instruments within these categories. The resulting fair value adjustments mean that the carrying value differs from theamortised cost.
Amounts include UDC items classified as held for sale.
Excludes commercial paper (note 7) designated at fair value through profit or loss.

ANZ Bank New Zealand Limited

Unaudited

NOTES TO THE FINANCIAL STATEMENTS
10. CREDIT RELATED COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIESCredit related commitments and contingencies

Contract amount of:
Undrawn facilities
Guarantees and letters of credit

31 Mar 18
NZ$m

30 Sep 17
NZ$m

28,14826,769914

1,010

Performance related contingencies

1,669

1,598

Total

30,731

29,377The Banking Group guarantees the performance of customers by issuing standby letters of credit and guarantees to third parties,
including its Ultimate Parent Bank. The risk involved is essentially the same as the credit risk involved in extending loan facilities tocustomers, therefore these transactions are subjected to the same credit origination, portfolio management and collateral requirements
for customers applying for loans. As the facilities may expire without being drawn upon, the notional amounts do not necessarily reflect
future cash requirements.
Other contingent liabilities
There are outstanding court proceedings, claims and possible claims for and against the Banking Group. Where relevant, expert legal
advice has been obtained and, in the light of such advice, provisions and/or disclosures as deemed appropriate have been made. In someinstances we have not disclosed the estimated financial impact of the individual items either because it is not practicable to do so or
because such disclosure may prejudice the interests of the Banking Group.
In recent years there has been an increase in the number of matters on which the Banking Group engages with its regulators. Globally
there have been significant increases in the nature and scale of regulatory investigations and reviews, enforcement actions (whether bycourt action or otherwise) and the quantum of fines issued by regulators and customer claims. The Banking Group also instigatesengagement with its regulators. The nature of these investigations and reviews can be wide-ranging and, for example, may include a
range of matters including responsible lending practices, product suitability, wealth advice and adequacy of product disclosure
documentation. The Banking Group has received various notices and requests for information from its regulators as part of both industrywide (including a recent request from the Financial Markets Authority and RBNZ for all New Zealand banks to provide an overview of both
work undertaken and ongoing work to identify and address conduct and culture risk) and Banking Group specific reviews, and has also
made disclosures to its regulators at its own instigation. There may be exposures to customers which are additional to any regulatory
exposures. These could include class actions, individual claims or customer remediation or compensation activities. The outcomes andtotal costs associated with such reviews and possible exposures remain uncertain.

11.

ASSETS AND LIABILITIES HELD FOR SALE

UDC
On 11 January 2017, the Bank announced that it had entered into a conditional agreement to sell UDC to HNA Group (HNA). On 21
December 2017, the Bank announced that it had been informed that New Zealand’s Overseas Investment Office had declined HNA’s
application to acquire UDC and the agreement with HNA was terminated in January 2018.
On 20 March 2018, the Bank announced that it was continuing to examine a broad range of options for UDC’s future including an Initial
Public Offering (IPO) and trade sale. As a result of the ongoing process, the assets and liabilities of UDC meet the criteria to be classified asheld for sale as at 31 March 2018.
Paymark Limited (Paymark)On 17 January 2018, the Bank entered into an agreement to sell its 25% shareholding in Paymark to Ingenico Group. The carrying amountof the Banking Group’s investment in Paymark at 31 March 2018 was NZ$7 million and the asset is classified as held for sale. The
transaction is subject to regulatory consents.

12. SUBSEQUENT EVENTSOn 13 April 2018, the Bank issued NZ$3,000 million of ordinary shares and paid ordinary dividends of NZ$3,000 million to the Immediate
Parent Company.

10ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
B1. GENERAL DISCLOSURES
Guarantors
The Bank has guaranteed the payment of interest and principal of covered bonds issued by its subsidiary ANZ New Zealand (Int’l) Limited.
This obligation is 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’s address for service is Level 9, 34 Shortland Street, Auckland, New Zealand. The
Covered Bond Guarantor is not a member of the Banking Group and has no credit ratings applicable to its long term senior unsecured
obligations. The covered bonds have been assigned a long term rating of Aaa and AAA by Moody’s Investors Service and Fitch Ratings
respectively. Refer to page 8 for further details, and to page 12 for the amount of assets of the ANZ Covered Bond Trust pledged as security
for covered bonds.
No other material obligations of the Bank are guaranteed as at 15 May 2018.
Changes in the Bank’s Board of Directors
As at 15 May 2018 there have been changes to the Directors of the Bank since 30 September 2017, the balance date of the last full year
disclosure statement. These changes were:
•

•
•
•

The Rt Hon Sir John Phillip Key, GNZM, AC was appointed as an independent Non-Executive Director on 18 October 2017 and was
appointed Chair of the Board of Directors on 1 January 2018. The RBNZ has confirmed that Sir John still qualifies as an Independent
Director of the Bank following his appointment as an independent Non-Executive Director of the Ultimate Parent Bank on 28 February
2018.
John Judge retired as a Non-Executive Director on 31 December 2017.
Michelle Jablko was appointed as a Non-Executive Director and ceased as alternative director for Shayne Elliott on 29 March 2018.
Nigel Williams retired as a Non-Executive Director on 29 March 2018.

Auditor
The Banking Group’s auditor is KPMG, Chartered Accountants, Level 9, 10 Customhouse Quay, Wellington, New Zealand.
Changes to Conditions of Registration
The conditions of registration applying to the Bank were amended on 1 January 2018 to refer to revised versions of the RBNZ Banking
Supervision Handbook documents:••

Liquidity Policy (BS13) which includes changes to the calculation of liquidity ratios as a consequence of the removal of off-quarter
disclosure statements.
Framework for Restrictions on High-LVR Residential Mortgage Lending (BS19) which includes changes to the High-LVR restrictions.

Adoption of these amendments has not resulted in any material change to the Banking Group’s reported result or financial position.
Credit Rating Information
The Bank has three credit ratings, which are applicable to its long-term senior unsecured obligations.
As at 15 May 2018, the Bank’s credit ratings are:Rating agency

Credit rating

Qualification

Standard & Poor’s (S&P Global)

AA-

Outlook Negative

Fitch Ratings (Fitch)AA-

Outlook Stable

Moody’s Investors Service (Moody's)

A1

Outlook Stable

Financial Support
APRA has reviewed the level of financial exposures that can be provided to the respective New Zealand banking subsidiaries and branches(New Zealand operations) of the four Australian parent banks, including the Ultimate Parent Bank.
APRA has confirmed that by 1 January 2021 no more than 5% of the Ultimate Parent Bank’s Level 1 Tier 1 capital base can comprise nonequity exposures to its New Zealand operations during ordinary times. Exposures in excess of this limit as at 1 January 2016 must be
reduced in equal percentages over the five year transition period and may not increase above the exposures as at 30 June 2015. This limit
does not include holdings of capital instruments or eligible secured contingent funding support provided to the Bank during times offinancial stress.
The Ultimate Parent Bank established a New Zealand branch which was registered on 5 January 2009. The Bank sells, from time-to-time,
residential mortgages into the NZ Branch to provide funding for the Bank’s business. As at 31 March 2018, the NZ Branch held
approximately NZ$3.5 billion of residential mortgages. To satisfy APRA’s requirements described above, the Bank intends to repay thisfunding at approximately NZ$1.6 billion per annum over the transition period ending 31 December 2020.
APRA has also stated that contingent funding support by the Ultimate Parent Bank to the Bank during times of financial stress must be
provided on terms that are acceptable to APRA and the Ultimate Parent Bank’s exposures to the Bank and its other New Zealandoperations must not exceed 50% of the Ultimate Parent Bank’s Level 1 Tier 1 capital base. At present, only covered bonds meet APRA’s
criteria for contingent funding. On this basis, the Ultimate Parent Bank believes it will be able to continue to provide financial support to
the Bank.
Further, from 1 July 2017, APRA’s Level 3 Conglomerates regulations became effective which limit the financial and operational assistancethe Ultimate Parent Bank can provide the Bank. These requirements are not expected to place additional restrictions on the Ultimate
Parent Bank’s ability to provide financial or operational support to the Bank.
11

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
B2. ADDITIONAL FINANCIAL DISCLOSURES
Additional information on the balance sheet
As at 31 March 2018

NZ$m

Total interest earning and discount bearing assets

142,569

Total interest and discount bearing liabilities

123,146

Total amounts due from related entities

2,802

Total amounts due to related entities

4,871

Assets charged as security for liabilities
These amounts exclude the amounts disclosed as collateral paid on the balance sheet that relate to derivative liabilities. The terms andconditions of the collateral agreements are included in the standard Credit Support Annex that forms part of the International Swaps andDerivatives Association Master Agreement.
Assets charged as security for liabilities include the following types of instruments:• Securities provided as collateral for repurchase transactions. These transactions are governed by standard industry agreements.
• UDC secured investments are secured by a security interest granted under the trust deed over all of UDC’s present and future assets
and undertakings, to Trustees Executors Limited, as supervisor. The assets subject to the security interest comprise mainly loans to
UDC's customers and certain plant and equipment. The security interest secures all amounts payable by UDC on the UDC secured
investments and all other moneys payable by UDC under the trust deed.
• Specified residential mortgages provided as security for notes and bonds issued to investors as part of the Bank’s covered bondprogramme.
The amortised cost of assets pledged as security are as follows:
As at 31 March 2018

Note

NZ$m

8

10,865

1,610

Securities sold under agreements to repurchase
Residential mortgages pledged as security for covered bonds
Assets pledged as collateral for UDC secured investments

3,151

Additional information on the income statement
The amounts of net trading gains or losses and other fair value adjustments are included in note 2 to the financial statements. The Banking
Group does not have any loans and advances designated at fair value through profit or loss. Other operating income for the purposes of
the Order comprises Net fee and commission income, Insurance proceeds and Other (all in note 2), Net funds management and insuranceincome and Share of associates’ profit (both shown on the income statement).

12

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
Additional information on concentrations of credit risk
Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities within the samegeographic 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.
Analysis of financial assets by industry sector is based on Australian and New Zealand Standard Industrial Classification (ANZSIC) codes. The
significant categories shown are the level one New Zealand Standard Industry Output Categories (NZSIOC), except that Agriculture isshown separately as required by the Order.
Cash,settlements
Trading
receivable securities andand collateral available-forpaid
sale assets
As at 31 March 2018

Derivative
financial Net loans andadvances3
instruments

OtherfinancialassetsCredit related
commitments4

Total

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

NZ$m

Agriculture

-

-

24

17,60061

1,396

19,081

Forestry and fishing, agriculture services

-

-

2

1,549

5

215

1,771

Manufacturing

-

29

136

2,764

10

1,737

4,676

Electricity, gas, water and waste services

-

19

431

1,575

5

1,732

3,762

Construction

-

-

15

1,697

6

1,134

2,852

Wholesale trade

-

-

64

1,549

5

1,651

3,269

Retail trade and accommodation

-

-

20

3,086

11

877

3,994

Transport, postal and warehousing

-

29

56

1,357

5

589

2,036

New Zealand residents

2,788

2,237

974

908

371

1,288

8,566

Public administration and safety1

-

8,606

631

300

5

1,213

10,755

Rental, hiring & real estate services
Professional, scientific, technical, administrativeand support services
Households

-

5

113

30,752107

2,263

33,240

-

-

4

1,189

4

503

1,700

-

-

-

53,904

188

14,23568,327All other New Zealand residents2

-

31

224

2,494

10

1,750

4,509

2,788

10,956

2,694

120,724793

30,583

168,538

Finance and insurance services

Overseas
2,101

4,006

4,976

137

-

148

11,368Households

-

-

-

1,484

5

-

1,489

All other non-NZ residents

1

63

477

882

3

-

1,426

2,102
-

4,069
-

5,453
-

2,503
(518)

8
-

148
(72)

14,283
(590)

-

-

-

(236)

-

-

(236)

-

-

-

318

-

-

318

4,890

15,025

8,147

122,791801

30,659182,313

Finance and insurance services

Less: Provision for credit impairment
Less: Unearned income
Add: Capitalised brokerage / mortgage
origination fees
Total financial assets
1
2

3
4

13

Public administration and safety includes exposures to local government administration and central government administration, defence and public safety.
Other includes exposures to mining, information media and telecommunications, education and training, health care and social assistance and arts, recreation and otherservices.
Excludes individual and collective provisions for credit impairment held in respect of credit related commitments.
Credit related commitments comprise undrawn facilities, customer contingent liabilities and letters of offer.

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
Additional information on concentrations of funding
The Banking Group actively uses balance sheet disciplines to prudently manage the funding mix. The Banking Group 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 term exceeding one year) and equity.
Analysis of funding liabilities by industry is based on ANZSIC codes. The significant categories shown are the level one New ZealandStandard Industry Output Categories (NZSIOC).
Note

31 Mar 18
NZ$m

7

100,771

Debt issuances

8

24,456

Certificates of deposit

7

2,020

Commercial paper

7

2,554

Other borrowings

7

Funding composition
Customer deposits
Wholesale funding

1,693

Total wholesale funding

30,723

Total funding

131,494

Concentrations of funding by industry
Customer deposits - New Zealand residents
Agriculture, forestry and fishing

3,722

Manufacturing

2,152

Construction

1,913

Wholesale trade

1,548

Retail trade and accommodation

1,691

Financial and insurance services

9,798

Rental, hiring and real estate services

2,741

Professional, scientific, technical, administrative and support services

5,081

Public administration and safety

1,403

Arts, recreation and other services

1,914Households

54,747All other New Zealand residents1

3,926
90,636

Customer deposits - overseas
Households
All other non-NZ residents

9,570
565
10,135

Total customer deposits

100,771

Wholesale funding (financial and insurance services industry)
New Zealand

9,917

Overseas

20,806

Total wholesale funding

30,723

Total funding

131,494

Concentrations of funding by geography
New Zealand

100,553

Australia

1,103

United States

12,670Europe9,830

Other countries

7,338

Total funding

131,494

1

Other includes mining; electricity, gas, water and waste services; transport, postal and warehousing; information media and telecommunications; education and training;
health care and social assistance.

14

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
Additional information on interest rate sensitivity
The following tables represent the interest rate sensitivity of the Banking Group's assets, liabilities and off balance sheet instruments byshowing the periods in which these instruments may reprice, that is, when interest rates applicable to each asset or liability can bechanged.
Total
NZ$m

Up to
3 months
NZ$m

Over 3 to
6 months
NZ$m

Over 6 to
12 months
NZ$m

Over 1 to
2 years
NZ$m

Over
2 years
NZ$m

Not bearing
interest
NZ$m

2,752

2,493

-

-

-

-

259

763

132

-

-

-

-

631

Collateral paid

1,634

1,634

-

-

-

-

-

Trading securities

8,416

1,140

380

1,567

597

4,732

-

Derivative financial instruments

8,147

-

-

-

-

-

8,147

As at 31 March 2018

AssetsCash
Settlement balances receivable

Available-for-sale assets

6,609

665

260

1,243

283

4,157

1

Net loans and advances

122,719

61,878

9,679

20,217

20,613

10,747(415)

Other financial assets

801

119

27

4

2

-

649

Total financial assets

151,841

68,061

10,34623,031

21,495

19,636

9,272

1,860

653

-

-

-

-

1,207

Liabilities
Settlement balances payable
Collateral received
Deposits and other borrowings

760

760

-

-

-

-

-

107,038

69,735

13,170

9,365

3,471

1,357

9,940

Derivative financial instruments

7,766

-

-

-

-

-

7,766

Debt issuances

24,456

3,928

1,139

2,770

1,126

15,493-

Payables and other liabilities
Total financial liabilities

748

179

-

-

-

-

569

142,628

75,255

14,30912,135

4,597

16,85019,482

Hedging instruments

-

2,836

5,909

(5,326)(7,306)

3,887-Interest sensitivity gap

9,213(4,358)

1,946

5,570

9,592

6,673

(10,210)Additional information on liquidity risk
Maturity analysis of financial liabilities
The table below provides residual contractual maturity analysis of financial liabilities at 31 March 2018 within relevant maturity groupings.
All outstanding debt issuances are profiled on the earliest date on which the Banking Group may be required to pay. The amounts
represent principal and interest cash flows – so they may differ from equivalent amounts reported on balance sheet.
Total
NZ$m

On demand
NZ$m

Up to
3 months
NZ$m

Over 3 to
12 months
NZ$m

Over 1 to
5 years
NZ$m

Over
5 years
NZ$m

1,871

1,160

711

-

-

-

760

-

760

-

-

-

116,041

59,784

27,10923,905

5,243-

Derivative financial liabilities (trading)

6,115

-

6,115

-

-

-

Debt issuances

26,715

-

892

3,665

15,684

6,474

407

-

46

23

87

251

- gross inflows

14,113

-

913

2,945

7,251

3,004

- gross outflows(14,166)-(974)(3,176)(7,288)(2,728)

Total

Less than
1 yearBeyond1 year

NZ$m

NZ$m

NZ$m

457

56

401

30,73130,731-As at 31 March 2018

Financial liabilities
Settlement balances payable
Collateral received
Deposits and other borrowings

Other financial liabilities
Derivative financial instruments(balance sheet management)

As at 31 March 2018

Off-balance sheet commitments and contingent liabilities
Non-credit related commitments
Credit related commitments and contingencies

15

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
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 internal and regulatory liquidity scenario metrics.
As at 31 March 2018

NZ$m

Cash and balances with central banks

1,919
425

Certificates of deposit
Government, local body stock and bonds

6,765

Government treasury bills

1,026
370

Reserve Bank bills
Other bonds

5,544

Total liquidity portfolio

16,049The Bank also held unencumbered internal residential mortgage backed securities which would entitle the Banking Group to enter into
repurchase transactions with a value of NZ$6,843 million at 31 March 2018.

Reconciliation of mortgage-related amounts
As at 31 March 2018

Term loans - housing1

Note

NZ$m

4

75,020(24)

Less: fair value hedging adjustment(2,269)Less: housing loans made to corporate customers

51

Add: unsettled re-purchases of mortgages from the NZ Branch

72,778On-balance sheet retail mortgage exposures subject to the IRB approach

B4

Add: off-balance sheet retail mortgage exposures subject to the IRB approach

B4

8,264

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

B4

81,042

1

Term loans – housing includes loans secured over residential property for owner-occupier, residential property investment and business purposes.

16

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
B3. ASSET QUALITY
Past due assets
Retailmortgages
NZ$m

Other retail
exposures
NZ$m

Non-retail
exposures
NZ$m

Total
NZ$m

Less than 30 days past due

564

177

607

1,348

At least 30 days but less than 60 days past due

133

42

96

271

At least 60 days but less than 90 days past due

108

19

10

137

At least 90 days past due

143

36

18

197

Total past due but not impaired

948

274

731

1,953

Retailmortgages
NZ$m

Other retail
exposures
NZ$m

Non-retail
exposures
NZ$m

Total
NZ$m

Balance at beginning of the period

31

20

306

357

Additions

11

53

116

180

Amounts written off

(2)

(38)

(38)

(78)

Deletions

(20)

(12)

(83)

(115)

Balance at end of the period

20

23

301

344

Individual provision

21

7

147

175

Retailmortgages

Other retail
exposures

Non-retail
exposures

Total

NZ$m

NZ$m

NZ$m

NZ$m

25

6

121

152

New and increased provisions
Write-backs
Recoveries of amounts previously written off
Individual credit impairment charge / (release)
Bad debts written off

3
(5)
(2)
(2)

45
(6)
(11)
28
(38)

84
(19)
(7)
58
(38)

132
(30)
(18)
84
(78)

Add back recoveries of amounts previously written off

-

11

7

18

Discount unwind

-

-

(1)

(1)

21

7

147

175

Retailmortgages

Other retail
exposures

Non-retail
exposures

Total

NZ$m

NZ$m

NZ$m

NZ$m

Balance at beginning of the period

75

121

231

427

Charge / (release) to income statement

6

5

(23)

(12)

Balance at end of the period

81

126

208

415

Other retail
exposures
NZ$m

Non-retail
exposures
NZ$m

Total
NZ$m

As at 31 March 2018

Movement in individually impaired assets

For the six months ended 31 March 2018

Movement in balances of individual credit impairment allowances

For the six months ended 31 March 2018

Balance at beginning of the period
Individual credit impairment charge / (release)

Balance at end of the period

Movement in balances of collective credit impairment allowances

For the six months ended 31 March 2018

Asset quality for assets designated at fair value
The Banking Group does not have any loans and advances designated at fair value through profit or loss.
Other asset quality information
As at 31 March 2018

Retailmortgages
NZ$m

Undrawn facilities with impaired customers

-

-

12

12

Other assets under administration

8

3

-

11

17

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
B4. CAPITAL ADEQUACY UNDER THE INTERNAL MODELS BASED APPROACH, AND
REGULATORY LIQUIDITY RATIOSRBNZ Basel III capital ratios
Bank(Solo Consolidated)

Banking Group
RBNZ minimum

31 Mar 18

31 Mar 17

31 Mar 18

31 Mar 17

Common equity tier 1 capital

4.5%

11.0%

10.2%

9.5%

9.2%

Tier 1 capital

6.0%

14.4%

13.5%

13.0%

12.7%

Total capital

8.0%

14.4%

13.8%

13.0%

13.0%

Buffer ratio

2.5%

6.4%

5.7%

n/a

n/a

Capital of the Banking GroupAs at 31 March 2018

NZ$m

Tier 1 capital
Common equity tier 1 (CET1) capital
Paid up ordinary shares issued by the Bank

8,588

Retained earnings (net of appropriations)

3,999
46

Accumulated other comprehensive income and other disclosed reserves
Less deductions from common equity tier 1 capital(3,389)Goodwill and intangible assets, net of associated deferred tax liabilities
Cash flow hedge reserve(34)

Expected losses to the extent greater than total eligible allowances for impairment(311)

Common equity tier 1 capital

8,899

Additional tier 1 capital
300

Preference shares

500

NZD 500m ANZ New Zealand Capital Notes (ANZ NZ CN)
NZD 1,003m ANZ New Zealand Internal Capital Notes (ANZ NZ ICN)

1,003

NZD 938m ANZ New Zealand Internal Capital Notes (ANZ NZ ICN2)

938

Retained earnings of the Bonus Bonds Scheme

54

Less deductions from additional tier 1 capital(15)

Surplus retained earnings of the Bonus Bonds Scheme
Additional tier 1 capital

2,780

Total tier 1 capital

11,679Tier 2 capital-

Total capital

11,679

Capital requirements of the Banking Group
Total
exposures
after credit
risk
mitigation
As at 31 March 2018

Risk weighted
exposure or
implied risk
weighted
exposure1

Total capitalrequirement

NZ$m

NZ$m

NZ$m

Total credit risk

181,608

69,364

5,550

Operational risk

n/a

5,921

474

Market risk

n/a

3,968

317

Agri business supervisory adjustment

n/a

1,818

145

181,608

81,071

6,486

Total
1

The calculation of capital requirements for total credit risk includes a scalar of 1.06 in accordance with the Bank's Conditions of Registration.

18

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
Capital structure
Ordinary shares- common equity tier 1 capital
All ordinary shares share equally in dividends and any proceeds available to ordinary shareholders on winding up of the Bank. On a showof hands every member who is present at a meeting in person or by proxy or by representative is entitled to one vote, and upon a poll
every member shall have one vote for each share held.
Preference shares – additional tier 1 capital
All preference shares were issued by the Bank to the Immediate Parent and do not carry any voting rights. The preference shares arewholly classified as equity instruments as there is no contractual obligation for the Bank to either deliver cash or another financial
instrument or to exchange financial instruments on a potentially unfavourable basis. The key terms of the preference shares are as follows:
Dividends are payable at the discretion of the directors of the Bank and are non-cumulative. The Bank must not resolve to pay any
dividend or make any other distribution on its ordinary shares until the next preference dividend payment date if the dividend on thepreference shares is not paid.
Should the Bank elect to pay a dividend, the dividend is based on a floating rate equal to the aggregate of the New Zealand 6 month bankbill rate plus a 325 basis point margin, multiplied by one minus the New Zealand company tax rate, with dividend payments due on 1
March and 1 September each year.
The preference shares are redeemable, subject to prior written approval of the RBNZ, by the Bank providing notice in writing to holders of
the preference shares:• on any date on or after a change to laws or regulations that adversely affects the regulatory capital or tax treatment of the preference
shares or• on any dividend payment date on or after 1 March 2019 or• on any date after 1 March 2019 if the Bank has ceased to be a wholly owned subsidiary of the Ultimate Parent Bank.
The preference shares may be redeemed for nil consideration should a non-viability trigger event occur.
In the event of liquidation, holders of preference shares are entitled to available subscribed capital per share, pari passu with all holders ofexisting preference shares and ANZ capital notes but in priority to all holders of ordinary shares. They have no entitlement to participate infurther distribution of profits or assets.
ANZ capital notes – additional tier 1 capital
ANZ capital notes are fully paid convertible non-cumulative perpetual subordinated notes. The notes rank equally with each other andwith the Bank’s preference shares and lower than perpetual subordinated debt. Holders of the notes do not have any right to vote ingeneral meetings of the Bank.
As at 31 March 2018, ANZ NZ CN carried a BB+ credit rating from Standard and Poor’s.
The notes are classified as debt given there are circumstances beyond the Bank’s control where the principal is converted into a variable
number of shares of the Bank (ANZ NZ ICN and ANZ NZ ICN2) or the Ultimate Parent Bank (ANZ NZ CN).
Interest payments on the ANZ capital notes are non-cumulative and subject to the Bank’s absolute discretion and certain payment
conditions (including RBNZ and, in respect of the ANZ NZ CN, APRA requirements).
Where specified, ANZ capital notes provide the Bank with an early redemption or conversion option on a specified date and in certain
other circumstances (such as a tax or regulatory event). This option is subject to RBNZ’s and, in respect of the ANZ NZ CN, APRA’s priorwritten approval.
Where specified, ANZ capital notes will immediately convert into a variable number of ordinary shares of the:••Bank based on the net assets per share in the Bank’s most recently published Disclosure Statement (ANZ NZ ICN) or
Ultimate Parent Bank based on the average market price of the Ultimate Parent Bank’s ordinary shares over a specified period prior toconversion less a 1% discount, subject to a maximum conversion number (ANZ NZ CN).

The Bank will be required to convert some or all of the notes if:••

the Banking Group’s, or in the case of the ANZ NZ CN the Overseas Banking Group’s Level 2, common equity tier 1 capital ratio is
equal to or less than 5.125% - known as a Common Equity Capital Trigger Event); ora Non-Viability Trigger Event occurs.

ANZ capital notes mandatorily convert into a variable number of ordinary shares of the Bank (ANZ NZ ICN) or Ultimate Parent Bank (ANZNZ CN) on similar terms as early redemption or conversion:••

on a specified date; oron an earlier date under certain circumstances.

However, the mandatory conversion is deferred for a specified period if certain conversion tests are not met.

19

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURESANZ NZ CN

ANZ NZ ICN

The Bank

The Bank

The Bank

Issued to

Listed on NZXNZ Branch

NZ BranchIssue date

31 March 2015

5 March 201515 June 2016

Issue amount

NZ$500 million

NZ$1,003 million

NZ$938 million

NZ$1

NZ$100

NZ$100Quarterly in arrears

Semi-annually in arrears

Semi-annually in arrears

Fixed at 7.2% p.a. until 25 May
2020. Resets in May 2020 to afloating rate: New Zealand 3
month bank bill rate + 3.5%

Floating rate: New Zealand 6
month bank bill rate + 3.8%

Floating rate: New Zealand 6
month bank bill rate + 6.29%

Issuer's early redemption or conversion option

25 May 2020

24 March 2023

15 June 2026 and each 5th
anniversary thereafter

Mandatory conversion date

25 May 2022

24 March 2025

n/a

Yes

Yes

Yes

IssuerFace value
Interest frequency
Interest rate

Common equity capital trigger event
Non-viability trigger event
Carrying value as at 31 March 2018 (net of issue costs)

ANZ NZ ICN2

Yes

Yes

Yes

NZ$497 million

NZ$1,003 million

NZ$938 million

Reserves – common equity tier 1 capital
Common equity tier 1 capital includes the available-for-sale revaluation reserve of NZ$12 million as at 31 March 2018.
Retained earnings of the Bonus Bonds Scheme– additional tier 1 capital
The Bonus Bonds Scheme is consolidated for capital adequacy purposes, and its retained earnings are included in additional tier 1 capitalless 8.5% of the consolidated risk-weighted assets that relate to the Bonus Bonds Scheme.

20

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
Credit risk subject to the Internal Ratings Based (IRB) approach
IRB credit exposures by exposure class and customer credit rating

As at 31 March 2018

Probability ofdefault%

Exposure atdefault
NZ$m

Exposureweighted
LGD used forthe capital
calculation%

Exposureweighted risk
weight%Riskweighted
exposure
NZ$m

Total capitalrequirement
NZ$m

Corporate
0-2

0.06

6,229

62

42

2,802

224

3-4

0.33

21,494

35

39

8,814

705

5

0.99

13,989

34

60

8,968

717

6

2.28

4,117

33

77

3,351

268

7-8

14.16

1,887

39

161

3,214

257

Default

100.00

375

49

113

451

37

1.97

48,09138

54

27,600

2,208

0

0.01

11,971

5

1

132

11

1-8

0.02

449

5

1

4

-

Total sovereign exposures

0.01

12,420

5

1

136

11

0

0.03

70

65

16

12

1

1

0.03

10,318

58

27

2,981

238

2-4

0.10

887

64

39

369

30

Total bank exposures

0.04

11,275

59

28

3,362

269

0-3

0.20

22,724

12

6

1,396

112

4

0.46

32,509

18

15

5,054

404

5

0.92

21,173

23

31

6,999

560

6

1.98

4,684

26

61

3,022

242

7-8

4.99

383

27

99

400

32

Default

100.00

203

20

16

34

2

0.86

81,67618

20

16,905

1,352

Total corporate exposures
SovereignBank

Retail mortgages

Total retail mortgages exposures
Other retail
0-2

0.10

554

77

50

291

23

3-4

0.27

4,900

78

55

2,834

227

5

1.03

1,916

72

74

1,505

120

6

2.31

2,054

71

89

1,940

155

7-8

8.74

1,502

85

133

2,117

169

Default

100.00

80

78

44

37

4

Total other retail exposures

2.65

11,006

77

75

8,724

698

Total credit risk exposures subject to the IRB approach

1.19

164,46830

33

56,727

4,538

Credit risk exposures subject to the IRB approach have been derived in accordance with Capital Adequacy Framework (Internal Models BasedApproach) (BS2B) and other relevant correspondence with RBNZ setting out prescribed credit risk estimates.

21

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURESIRB credit exposures: On-balance sheet, off-balance sheet and market related contracts

Exposure atdefault

Exposureweighted
LGD used forthe capital
calculation

Exposureweighted risk
weightRiskweighted
exposure

Total capitalrequirement

NZ$m

NZ$m

%

%

NZ$m

NZ$m

Corporate

35,76434,92234

54

19,986

1,599

Sovereign

12,255

11,978

5

1

113

9

Bank

6,327

5,769

58

19

1,175

94

Retail mortgages

72,77873,00619

20

15,594

1,247

Other retail

5,284

5,371

74

93

5,318

426

132,408

131,04625

30

42,1863,375

Corporate

12,926

10,167

48

47

5,092

407

Sovereign

381

358

5

1

3

-

Bank

1,479

1,177

50

18

222

18

Retail mortgages

8,264

8,670

16

14

1,311

105

Total
exposure or
principal
amount
As at 31 March 2018

On-balance sheet exposures

Total on-balance sheet exposures
Off-balance sheet exposures

Other retail

5,750

5,635

79

57

3,406

272

Total off-balance sheet exposures

28,80026,00743

36

10,034802

Corporate

102,054

3,002

61

79

2,522

202

Sovereign

15,576

84

5

23

20

2

Bank

1,033,561

4,329

62

43

1,965

157

Total market related contracts

1,151,191

7,415

61

57

4,507

361

Total credit risk exposures subject to the IRB approach

1,312,399

164,46830

33

56,727

4,538

Exposure atdefault

Risk weight

Risk weighted
exposure

Total capitalrequirement

NZ$m

%

NZ$m

NZ$m

259

-

-

-

New Zealand dollar denominated claims on the Crown and the RBNZ

1,631

-

-

-

Other assets

1,551

100

1,644

132

Total other IRB credit risk exposures

3,441

45

1,644

132

Market related contracts

Other IRB credit exposures
As at 31 March 2018

Cash

Other IRB credit exposures have been calculated in accordance with BS2B.
Additional mortgage information
As required by the RBNZ, loan-to-valuation ratios (LVR) 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 have been accepted by the customer.
On-balance
sheet
NZ$m

Off-balance
sheet
NZ$m

Total
NZ$m

Does not exceed 60%

35,642

5,445

41,087

Exceeds 60% and not 70%

16,533

1,379

17,912

Exceeds 70% and not 80%

16,731

1,110

17,841

Does not exceed 80%

68,906

7,934

76,840Exceeds 80% and not 90%

2,469

150

2,619

Exceeds 90%

1,403

180

1,583

Total retail mortgage exposures

72,7788,264

81,042As at 31 March 2018

LVR range

22

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
Specialised lending subject to the slotting approach
Risk weightRiskweighted
exposure

Total capitalrequirement

NZ$m

%

NZ$m

NZ$m

Strong

4,331

70

3,214

257

Good

5,554

90

5,299

424

Satisfactory

441

115

537

43

Weak

51

250

135

11

As at 31 March 2018

Exposure atdefault

On-balance sheet exposures

33

-

-

-

10,410

83

9,185

735

ExposureamountExposure atdefault

Average risk
weightRiskweighted
exposure

Total capitalrequirement

NZ$m

NZ$m

%

NZ$m

NZ$m

Undrawn commitments and other off balance sheet exposures

1,361

1,300

82

1,130

90

Market related contracts

2,059

103

133

145

12

Total off-balance sheet exposures

3,420

1,403

86

1,275

102

Default
Total on-balance sheet exposures

As at 31 March 2018

Off-balance sheet exposures

Specialised lending exposures subject to the slotting approach have been calculated in accordance with BS2B.
The supervisory categories of specialised lending above are associated with specific risk-weights. These categories broadly correspond to
the following external credit assessments using Standard & Poor's rating scale, Strong: BBB- or better, Good: BB+ or BB, Satisfactory: BB- or
B+ and Weak: B to C-.
Credit risk exposures subject to the standardised approach
Risk weightRiskweighted
exposure

Total capitalrequirement

%

NZ$m

NZ$m

133

72

101

8

1

150

1

-

134

73

102

8

ExposureamountAveragecreditconversion
factorExposure atdefault

Average risk
weightRiskweighted
exposure

Total capitalrequirement

NZ$m

%

NZ$m

%

NZ$m

NZ$m

27

As at 31 March 2018

Exposure atdefault
NZ$m

On-balance sheet exposures
Corporates
Default
Total on-balance sheet exposures

As at 31 March 2018

Off-balance sheet exposures
569

59

333

96

338

Market related contracts

226,446

1

1,411

4

60

5

Total off balance sheet

227,015

n/a

1,744

22

398

32

Exposure atdefault

Risk weightRiskweighted
exposure

Total capitalrequirement

NZ$m

%

NZ$m

NZ$m

8

400

33

3

Undrawn commitments and other off balance sheet exposures

Credit exposures subject to the Standardised Approach have been calculated in accordance with BS2A.
Equity exposures

As at 31 March 2018

All equity holdings not deducted from capital

Equity exposures have been calculated in accordance with BS2B.
Credit risk mitigation
As at 31 March 2018, under the IRB approach, the Banking Group had NZ$936 million of Corporate exposures covered by guarantees
where the presence of the guarantees was judged to reduce the underlying credit risk of the exposures. Information on the total value of
exposures covered by financial guarantees and eligible financial collateral is not disclosed, as the effect of these guarantees and collateralon the underlying credit risk exposures is not considered to be material.
23

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
Operational risk
The Banking Group uses the Advanced Measurement Approach for determining its regulatory capital requirement for operational risk
calculated in accordance with BS2B. As at 31 March 2018 the Banking Group had an implied risk weighted exposure of NZ$5,921 million
for operational risk and an operational risk capital requirement of NZ$474 million.
Market risk
The aggregate market risk exposures below have been calculated in accordance with BS2B. The peak end-of-day market risk exposures arefor the six months ended 31 March 2018.
Implied risk weighted exposure
Period end

Aggregate capital charge

Peak

Peak

Period end

Peakoccurred on

As at 31 March 2018

NZ$m

NZ$m

NZ$m

NZ$m

Interest rate risk

3,914

6,821

313

546

Foreign currency risk

53

183

4

15

6/02/2018

Equity risk

1

1

-

-

31/03/2018

3,968

24/01/2018

317

Capital for other material risks
The Banking Group has an Internal Capital Adequacy Assessment Process (ICAAP) which complies with the requirements of 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 that are not explicitly captured in the calculation of the Banking Group's tier 1 and total capital ratios. The other material risks
identified by the Banking Group include pension risk, insurance risk, strategic equity risk, fixed asset risk, deferred acquisition cost risk, value
in-force risk, business retention risk and software risk. The Banking Group's internal capital allocation for these other material risks is
NZ$399 million (March 2017: NZ$435 million).
Information about Ultimate Parent Bank and Overseas Banking Group
APRA Basel III capital ratios
Overseas Banking Group

Ultimate Parent Bank
(Extended Licensed Entity)

31 Mar 18

31 Mar 17

31 Mar 18

31 Mar 17

Common equity tier 1 capital

11.0%

10.1%

10.9%

10.2%

Tier 1 capital

12.9%

12.1%

12.9%

12.3%

Total capital

14.9%

14.5%

15.1%

14.8%

The Ultimate Parent Bank and the Overseas Banking Group are required to hold minimum capital as determined by APRA, which is at least
equal to that specified under the Basel III capital framework.
APRA has authorised the Ultimate Parent Bank and the Overseas Banking Group to use••

the Advanced Internal Ratings Based (AIRB) methodology for calculation of credit risk weighted assets There are however several small
portfolios (mainly retail and local corporates in Asia Pacific) where the Overseas Banking Group applies the standardised approach.
the Advanced Measurement Approach (AMA) for the operational risk weighted asset equivalent.

The Overseas Banking Group exceeded the minimum capital requirements set by APRA as at 31 March 2018.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 31 March 2018. The Overseas Banking
Group’s Pillar 3 disclosure document for the quarter ended 31 March 2018, in accordance with APS 330: Public Disclosure of Prudential
Information, discloses capital adequacy ratios and other prudential information. This document can be accessed at the website anz.com.

Regulatory liquidity ratios
For the three months ended

31 Mar 18

31 Dec 17

Quarterly average core funding ratio

89.8%

89.1%

Quarterly average one-month mismatch ratio

5.5%

5.6%

Quarterly average one-week mismatch ratio

5.6%

5.6%

24

ANZ Bank New Zealand Limited

Unaudited

REGISTERED BANK DISCLOSURES
B5. CONCENTRATIONS OF CREDIT RISK TO INDIVIDUAL COUNTERPARTIESThe Banking Group measures its concentration of credit risk to individual counterparties at the reporting date on the basis of actual
exposures. Peak end-of-day aggregate credit exposures are measured on the basis of internal limits that were not materially exceeded
between the reporting date for the previous disclosure statement and the reporting date for the Disclosure Statement.
The exposure information in the table below excludes exposures to:•••connected persons (ie other members of the Overseas Banking Group and Directors of the Bank)
the central government or central bank of any country with a long-term credit rating of A- or A3 or above, or its equivalent
any supranational or quasi-sovereign agency with a long-term credit rating of A- or A3 or above, or its equivalent.

As at

Peak end of day
over 3 months to

31 Mar 18

31 Mar 18

Exposures to banks
Total number of exposures to banks that are greater than 10% of CET1 capitalwith a long-term credit rating of A- or A3 or above, or its equivalent

3

3

3

3

- 10% to less than 15% of CET1 capital1-- 15% to less than 20% of CET1 capital

2

3

-

-

-

2

-

2

-

2

-

-

with a long-term credit rating of at least BBB- or Baa3, or its equivalent, and at most BBB+ or Baa1, or its equivalent
Exposures to non-banks
Total number of exposures to non-banks (ie corporates) that are greater than 10% of CET1 capitalwith a long-term credit rating of A- or A3 or above, or its equivalent- 10% to less than 15% of CET1 capitalwith a long-term credit rating of at least BBB- or Baa3, or its equivalent, and at most BBB+ or Baa1, or its equivalent

B6. INSURANCE BUSINESSThe Banking Group conducts insurance business through its subsidiary OnePath Life (NZ) Limited (OnePath Life). The Banking Group’s
aggregate amount of insurance business comprises the total assets of OnePath Life of NZ$984 million, which is 0.6% of the total
consolidated assets of the Banking Group.

25

ANZ Bank New Zealand Limited

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 2014

(ii)

The Disclosure Statement is not false or misleading.

Over the six months ended 31 March 2018, 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, 15 May 2018.

Antony Carter

Shayne ElliottDavid Hisco

Michelle Jablko

The Rt Hon Sir John Key, GNZM, AC

Mark Verbiest

Joan Withers

26Independent Review Report
To the shareholder of ANZ Bank New Zealand Limited
Report on the half year disclosure statement

Conclusion
Based on our review of the interim financial statements and theregistered bank disclosures (together referred to as ‘thedisclosure statement’) of ANZ Bank New Zealand Limited (theBanking Group) on pages 2 to 26, nothing has come to ourattention that causes us to believe that:
i.

ii.

iii.

the interim financial statements on pages 2 to 10 do
not present fairly in accordance with NZ IAS 34 Interim
Financial Reporting and IAS 34 Interim Financial
Reporting, in all material respects, the Banking Group’s
financial position as at 31 March 2018 and its financial
performance and cash flows for the 6 month period
ended on that date;
the registered bank disclosures in sections B1, B2, B3,
B5 and B6 disclosed in accordance with schedules 5,7, 13, 16 and 18 of the Registered Bank DisclosureStatements (New Zealand Incorporated Registered
Banks) Order 2014 (as amended) (‘the Order’)respectively, do not fairly state, in all material respects,
the matters to which they relate in accordance withthose schedules

We have completed a review of theaccompanying half year disclosure statement
which comprises:— the interim financial statements formed of:-the consolidated balance sheet as at 31
March 2018;-

the consolidated income statement,
statements of comprehensive income,changes in equity and cash flows for the 6month period then ended; and-notes, including a summary of significant
accounting policies and other explanatory
information.

— the registered bank disclosures prescribedin Schedules 5, 7, 11, 13, 16 and 18 of theOrder.

the registered bank disclosures relating to capital
adequacy and liquidity requirements in section B4 arenot, in all material respects, disclosed in accordancewith schedule 11 of the Order.

Basis for conclusion
A review of the half year disclosure statement in accordance with NZ SRE 2410 Review of Financial Statements
Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance engagement. The auditor
performs procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures.
As the auditor of ANZ Bank New Zealand Limited, NZ SRE 2410 requires that we comply with the ethical requirements
relevant to the audit of the annual financial statements.
Our firm has also provided other services to the Banking Group in relation to review and other assurance engagements.
Subject to certain restrictions, partners and employees of our firm 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 reviewer of the Banking Group. The firm has no other relationship with, or interest in, the Banking
Group.

© 2018 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity.

Use of this independent review report
This independent review report is made solely to the shareholder of the Banking Group. Our review work has been
undertaken so that we might state to the shareholder those matters we are required to state to them in the independent
review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the shareholder for our review work, this independent review report, or any of the opinions we haveformed.

Responsibilities of the Directors for the half year disclosure statement
The Directors, on behalf of the Banking Group, are responsible for:— the preparation and fair presentation of the half year disclosure statement in accordance with IAS 34, NZ IAS 34 andSchedules 3, 5, 7, 13, 16 and 18 of the Order;— the preparation and fair presentation of the registered bank disclosures in regards to capital adequacy and liquidity
requirements in accordance with Schedule 11 of the Order;— implementing necessary internal control to enable the preparation of a half year disclosure statement that is fairly
presented and free from material misstatement, whether due to fraud or error; and— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations,or have no realistic alternative but to do so.

Auditor’s responsibilities for the review of the half year disclosure statement
Our responsibility is to express a conclusion on the half year disclosure statement based on our review. We conducted
our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything has come to ourattention that causes us to believe that the:— the interim financial statements do not present fairly in all material respects the Banking Group’s financial position as
at 31 March 2018 and its financial performance and cash flows for the 6 month period ended on that date;— the interim financial statements do not, in all material respects, comply with IAS 34 and NZ IAS 34;— the registered bank disclosures in sections B1, B2, B3, B5 and B6 does not, fairly state, in all material respects, thematters to which it relates in accordance with Schedules 5, 7, 13, 16 and 18 of the Order; and— the registered bank disclosures relating to capital adequacy and liquidity requirements in section B4 is not, in allmaterial respects, disclosed in accordance with schedule 11 of the OrderThe procedures performed in a review are substantially less than those performed in an audit conducted in accordancewith International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on the half year
disclosure statement. This description forms part of our independent review report.

KPMG
Auckland
15 May 2018

ANZ Bank New Zealand Limited

Unaudited

BANK FINANCIAL STRENGTH DASHBOARD
D1. CREDIT RATINGS

Background
This section does not form part of the Disclosure Statement andcontains the information in respect of the Banking Group
included on the Bank Financial Strength Dashboard(Dashboard) published on the RBNZ’s website. Amounts below
may differ slightly from those published by the RBNZ due torounding differences. The tables below include reconciliations
to amounts included in the Disclosure Statement where there
are classification differences between the financial statements
and the Dashboard.

As at 31 March 2018

Credit rating

S&P Global

AA-

Fitch

AA-

Moody's

A1

D2. CAPITAL ADEQUACY
Capital ratios

Capital
As at 31 March 2018

NZ$m

Total capital ratio

14.4%

CET1 capital

12,633

Common equity tier 1 (CET1) capital ratio

11.0%

CET1 deductions(3,734)Tier 1 capital ratio

14.4%

Net CET1 capital

8,899

Buffer ratio

6.4%

Total additional tier 1 capital

2,780

Total capital ratio regulatory minimum

8.0%

Total tier 1 capital

11,679Total capital

11,679As at 31 March 2018

Risk weighted assets

Classification differences
DisclosureStatement

Default
exposures

Credit valuation
adjustments

Exposure
categories

NZ$m

NZ$m

NZ$m

NZ$m

As at 31 March 2018

Sovereign / quasi-sovereign

Dashboard
NZ$m

136

-

(19)

-

117

-

-

-

308

308

Public sector entities
Registered banks

3,362

-

(1,005)

(308)

2,049

Corporates

27,600(451)(1,111)

10,39836,436

Retail / Residential mortgages

16,905(34)--

16,871Other retail

8,724

(37)

-

(8,687)-

Specialised lending exposures subject to slotting approach

10,460-(62)(10,398)

-

500

(1)

-

(499)

-

Problem loans

-

523

-

-

523

Equity holdings

33

-

-

-

33

-

-

-

1,818

1,818

All other assets

1,644

-

2,197

9,186

13,027

Credit risk

69,364

-

-

1,818

71,182Market risk

3,968

-

-

-

3,968

Operational risk

5,921

-

-

-

5,921

Agri business supervisory adjustment

1,818

-

-

(1,818)-

Total risk weighted assets

81,071---

81,071

Exposures subject to standardised approach

Credit risk supervisory adjustment

D3. ASSET QUALITY
As at 31 March 2018

Housing
NZ$m

Consumer
NZ$mBusiness
NZ$m

Agriculture
NZ$m

All other
NZ$m

Total
NZ$m

Total loans

72,3793,538

28,84017,166

1,374

123,297

Impaired loans

45

8

130

75

86

344

Loans 90 days past due but not impaired

141

28

23

5

-

197

Total non-performing loans

186

36

153

80

86

541

Non-performing loans ratio (%)

0.26%

1.02%

0.53%

0.47%

6.26%

0.44%

Individual provisions

11

6

78

24

56

175

Collective provisions

67

66

91

42

148

414

On-balance sheet residential mortgage exposures with LVRs that:
Exceeds 80% and not 90%

3.4%

Exceeds 90%

1.9%

A reconciliation of the amounts in this table to the financial statements is included in the Other Information on page 31.
The Supplementary Information does not form part of the Disclosure Statement

29

ANZ Bank New Zealand Limited

Unaudited

BANK FINANCIAL STRENGTH DASHBOARD
D4. PROFITABILITY / PERFORMANCEClassification differences

Financial statements

Funds management
income and othercommissions

3 months to 31 March 2018

NZ$m

NZ$m

NZ$m

Total interest income

1,577

-

1,577

Total interest expense

806

-

806

Net interest income

771

-

771

Gains/losses on trading and hedging

46

-

46
161

Dashboard

Fee and commission income

9863

All other income

121

(63)

58

Operating expenses

361

-

361

Impaired asset expense

60

-

60

Profit before tax

615

-

615

Tax expense

167

-

167

Profit after tax

448

-

448

Return on assets (%)

1.2%

Return on equity (%)

13.7%

Net interest margin (%)

2.2%

D5. FINANCIAL POSITIONClassification differences

Financialstatements
NZ$m

Nostros / vostrosand other bankdeposits
NZ$m

Securities
purchased underagreements
to re-sell
NZ$m

Subordinateddebt issued torelated parties
NZ$m

Cash and bank deposits1

4,386

247

(862)

-

3,771

Debt securities held2

15,177(86)--

15,091

Net loans and advances

As at 31 March 2018

Dashboard
NZ$m

122,719---

122,719

Derivatives in an asset position

8,147

-

-

-

8,147

All other assets

5,933

(161)

862

-

6,634

Total assets

156,362---

156,362

Deposits

100,771---

100,771

Debt securities issued3

29,030--(1,952)

27,078Other borrowings

2,453

1,160

-

1,952

5,565

Derivatives in a liability position

7,766

-

-

-

7,766

Total liabilities

3,409
143,429(1,160)
-

-

-

2,249
143,429

Equity12,933---

12,933

Top 5 credit exposures to non-bank counterparties(ie corporates) as a ratio of CET1 capital

28.3%

4

All other liabilities

Comprises cash and collateral paid
Comprises trading securities, investments backing insurance contract liabilities and available-for-sale assets
Comprises debt issuances plus certificates of deposit and commercial paper from deposits and other borrowings
4
Comprises collateral received and the remaining items of deposits and other borrowings
1

2

3

D6. LIQUIDITY

D7. LARGE EXPOSURES

3 months to 31 March 2018

As at 31 March 2018

Quarterly average core funding ratio

89.8%

Quarterly average one-month mismatch ratio

5.5%

Quarterly average one-week mismatch ratio

5.6%

Credit exposures to non-bank counterparties(ie corporates) that are greater than 10% of CET1 capital
Top 5 credit exposures to banks as a ratio of
CET1 capital
Credit exposures to banks that are greater than
10% of CET1 capital

61.9%
3

The Supplementary Information does not form part of the Disclosure Statement

30

ANZ Bank New Zealand Limited

Unaudited

OTHER INFORMATION
Reconciliation of total loans by industry and sector
The financial statements and Dashboard include amounts for total loans which are based on different definitions. The table below
reconciles the various amounts. This information does not form part of the Disclosure Statement.

Note

Housing
NZ$m

Consumer
NZ$mBusiness
NZ$m

Agriculture
NZ$m

All other1
NZ$m

Total
NZ$m

4

75,020

n/a

n/a

n/a

48,207

123,227

(24)

-

-

-

24

-

Business loans secured by residential property(2,617)

-

-

337

2,280

-

Residential investor property(20,529)--47

20,482-As at 31 March 2018

Total loans per Balance Sheet
Fair value hedge adjustment

-

3,538

-

17,216(20,754)-

51,8503,538-

17,60050,239123,227

Fair value hedge adjustments

-

-

-

-

(24)

(24)

Unearned income on finance leases

-

-

-

-

(197)

(197)

Deposit components of overdraft product

-

-

-

-

291

291

20,529--(47)(20,482)---

28,466(50)(28,416)-

72,3793,538

28,466

17,503

1,411

123,297

-

-

374

(337)

(37)

-

72,3793,538

28,84017,166

1,374

123,297

Other household and agriculture industry loans
Concentration of loans by industry2

B2

Residential investor property
Business lending
Loans by purpose (RBNZ series S31)
Other business loans secured by residential property
Total loans per Dashboard
1

2

D3

All other in RBNZ series S31 and the Dashboard comprises: Depository and other financial institutions, Central and Local Government, Non-profit institutions serving
households.
Household exposures (resident and non-resident) in note B2 comprise Housing and Consumer.

The Supplementary Information does not form part of the Disclosure Statement31