Corporate Affairs
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www.anznational.co.nz

For Immediate Release
Thursday 28 August 2008

General Disclosure Statement: Nine months ended 30 June 2008

Sound business performance, well positioned for current environment
ANZ National Bank today announced an after-tax profit of $960 million for the nine months toJune 2008, up 13% on the corresponding period to June 2007.
“The Bank is very well positioned” said Chief Executive Graham Hodges.
“ANZ National has good profitability and is well capitalised with strong liquidity - these factors
put us in a sound position for the current and expected economic environment” he said.
June 2008 : Nine month Performance Summary•Headline net profit after tax (NPAT) of $960 million, up 13% from $848 million
earned in the nine months to June 2007.

•After adjusting for non-core items, underlying cash profit was $870 million, a 10%
increase compared to the nine months to June 2007 ($791 million).

•Provision for credit impairment charge of $167 million, up from an unusually low$56m in the June 2007 period.

•Net loans and advances were up $10,168 million over the nine month period, which
is a 12% increase on June 2007.

•Total deposits and other borrowings were $75,266 million, up 14% on June 2007.

•Underlying cost-to-income ratio decreased to 41.7%, compared with 43.8% in thecorresponding period to June 2007.

Growth in the nine month period has been led by an exceptional performance in theInstitutional business, mainly driven by a strong Markets revenue contribution.
The key relationship businesses (Rural, Corporate, Commercial) also performed solidly overthe period. Profit in the Retail businesses has been impacted by higher provisioning and asqueeze in deposit margins as financial institutions seek to raise funds domestically.
While underlying net operating income increased 10% in the nine month period compared tothe corresponding period to June 2007, momentum has moderated through the course of theyear in response to slowing balance sheet growth, margin pressures and the higher costs ofoffshore funding.
ANZ National has a strong and diversified funding base with access to local retail andwholesale deposits, as well as global funding sources. The bank has completed its funding
programme for 2008 with recent debt issues including $835m in perpetual subordinated bonds
and a US$2 billion five year fixed-rate note issue.

ANZ National Bank Limited

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Arrears and provisions have increased as the economy has slowed through 2008. This has
been particularly evident in the household sector which is carrying the burden of higher
interest rates and the impact of higher food, fuel and other costs. The individual provision for
credit impairment charge remains less than 0.20% of total loans but is expected to rise further
in the period ahead.
Note: ANZ National’s performance for this nine month period was reflected in ANZ Banking
Group’s Trading Update on 28 July 2008.

Reconciliation of Cash Profit
Nine months ended 30 June 2008
Net interest income
Other external operating income
Operating income
Operating expenses
Profit before credit impairment and income tax
Provision for credit impairment
Profit before income tax
Income tax expense
Cash profit
Non-core items:1
VISA IPO
Sale of Esanda Fleetpartners
Net Hedge IneffectivenessDeferred Taxation
Headline net profit after tax (NPAT)
1.

2008
$m

2007
$m%

1,711
772
2,483(1,035)
1,448(167)
1,281(411)
870

1,644
621
2,265(992)
1,273(56)1,217(426)
791

4%
24%
10%
4%
14%
198%
5%(4%)
10%

850(4)
990

076
8(27)
57

58%

960

848

13%

ANZ National excludes significant items from cash profit to eliminate the distorting effect of oneoff transactions on the results of core business.
In the nine month period ended June 2008 ANZ National has classified as significant a gain fromthe allocation of shares in VISA in March 2008 of $85 million, and a positive amount of $9 million
following the restatement of deferred taxation balances.
In the nine months ended June 2007 ANZ National classified as significant the gain on sale of
Esanda Fleetpartners of $76 million, and a negative $27 million associated with the restatementof deferred taxation balances.
ANZ National enters into economic hedges to manage its interest rate and foreign exchange risk.
In the nine month period ended June 2008 ANZ National classified as significant negative amountof $4 million, down from $8 million in the period to June 2007.