News Release
28 October 2021

Home loan demand, resilient economy drive
ANZ NZ full-year result
ANZ New Zealand1 (ANZ NZ) today reported a statutory net profit after tax (NPAT) ofNZ$1,919 million for the 12 months to 30 September 2021 – a 44% increase on the 2020
financial year.
Cash2 NPAT was NZ$1,907 million, 39% up on the previous year.
ANZ Bank New Zealand Ltd Chief Executive Antonia Watson said the results reflected record
demand in the housing market, a stronger-than-expected economy and a significant
reduction in provisions the bank put aside last year.
Ms Watson said that while many businesses that relied on tourists and overseas students
were facing ongoing impacts of Covid-19 restrictions, particularly in Auckland where thehospitality industry is disproportionately affected by lockdown measures, the economy had
fared better than the bank expected.
“The ability of many New Zealand businesses to learn from last year’s lockdowns and adapt,and continuing strong global demand for our exports, has meant we were able to release$115 million of the credit impairment provisions we’d made previously into this year’sresult,” she said.
HOME LOAN GROWTHThe New Zealand housing market, particularly in Auckland, had a strong year of growth andprices. Home lending by ANZ NZ increased $9.3 billion to $99 billion over the 12 months to30 September 2021, with one in three first home buyers borrowing from the bank.
“High house prices continue to be driven by historically low interest rates and more demandfor houses than are available. This demand is reflected in our financial results,” Ms Watson
said.
“During the year we believed housing affordability was becoming unsustainable so
implemented a number of initiatives to try and bring some balance to the market.
“It’s in everyone’s long-term interests that the heat be taken out of the housing market.
That’s why we were first to adopt higher LVR restrictions for investors, reduced theminimum size of apartments we will lend on, introduced a discounted interest rate for newbuilds and helped fund and facilitate NZ $600 million in social housing construction.”

1

ANZ New Zealand represents all of ANZ’s operations in New Zealand (NZ Geography), 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. Refer to Summary of key financial information for details of reconciling
items between cash profit and statutory profit.
Australia and New Zealand Banking Group Limited ABN 11 005 357 522
ANZ Centre Melbourne, Level 9A, 833 Collins Street, Docklands VIC 3008
ANZ Bank New Zealand Limited
ANZ Centre, Ground Floor, 23 – 29 Albert Street, Auckland 1010

CHALLENGING ECONOMIC ENVIRONMENTMs Watson said the full-year result was strong given the Covid-influenced economic
circumstances. “New Zealand experienced a rebound in economic activity following the 2020
Covid-19 lockdowns. Household and business confidence surveys recovered quickly andinvestment had picked up prior to the August 2021 outbreak.
“The Reserve Bank of New Zealand has projected rate increases over the next two years.
However it is likely uncertainty will linger as long as Covid-19 is a threat.”
Customer deposits were up 3.5% in the year, and lending increased by 6.0%.
While expectations of an Official Cash Rate rise and rising funding costs saw interest rates
eventually move off their historic lows, ANZ NZ’s focus on responsible lending has meant thebank’s credit quality remained strong.

Key Points

All comparisons are year ended 30 September 2021 compared with year ended 30 September 2020 and on a cash basis unless notedotherwise

Statutory profit up 44% at NZ$1,919 million.

Cash profit up 39% at NZ$1,907 million, mainly due to lower credit impairmentcharges.

Revenue up 2%, reflecting lending growth.

Expenses decreased 7% due to lower customer remediation and restructuring, oneoffs in prior period not repeated, other efficiencies, and the sale of UDC in
September 2020.

Credit impairment charge down $516 million from a charge of $401 million to arelease of $115 million due to the improved economic conditions.

Customer deposits up 3.5% and gross lending increased by 6.0%.

KiwiSaver funds under management grew 16% to $19.0 billion.

Ordinary dividend of $845 million paid in June 2021.

As at 30 September 2021, the ANZ Bank New Zealand Limited group remains wellcapitalised with a RBNZ total capital ratio of 16.9%, up from 14.4% as at 30
September 2020.

ANZ NZ continued to simplify its offerings, decommissioning 27 products and continuing tofocus on suitability for customers.
Covid-19 has accelerated the decrease in over-the-counter transactions at ANZ brancheswith a ~50% reduction since March last year. Transaction numbers did not return to former
levels in parts of the country where alert levels were lowered.
Covid-19 also presented many challenges for business customers and ANZ NZ supported
them with a number of measures, including waiving fees for contactless debit cards, accessto temporary overdrafts, loan extensions and removing fees for loan restructuring.
WORKING TOWARDS WELLBEING
Ms Watson said that while steps were taken to minimise the impact of Covid-19, the cost to
some in the community in terms of personal and financial wellbeing had been high.
“For those who were already struggling, the pandemic has presented additional challenges.
It’s of considerable concern that the inequities that have arisen, or been exacerbated, by
the pandemic are becoming entrenched. That should be of concern to all New Zealanders.

“The role of strong institutions is now perhaps more important than at any time in recenthistory. A healthy and balanced economy provides the foundation for all New Zealanders tohave opportunities and improve their wellbeing.
“As New Zealand’s largest bank, and one of its largest companies, we have helped provide
not just assistance for customers, but stability for the economy.”
During the financial year ANZ NZ was the country’s biggest corporate taxpayer, paying
around $750 million in tax, employed about 8000 New Zealanders, paid $540 million tocontractors and suppliers, and $60 million was paid by way of dividends from ANZ Group to
New Zealanders, either directly or through KiwiSaver, pension and managed funds.
“This is in addition to ANZ NZ’s $11.8 million contribution of local sponsorships anddonations to sports, arts, cultural and community organisations and events, including theWorld Test Champion BlackCaps, the ANZ Premiership & Silver Ferns and the NZ Olympicand Paralympics teams.”
Other highlights for the financial year include:




ANZ NZ remains the largest KiwiSaver provider with $19.0 billion undermanagement, an increase of $2.6 billion, or 16%, over the previous year.
ANZ NZ continued to engage industry frameworks to support the transition to net
zero, including being a founding sponsor of Toitū Tahua, the Centre for Sustainable
Finance, and playing a critical role in developing the Sustainable Agriculture FinanceInitiative.
On sustainable finance, this year ANZ NZ acted as a lead manager on 13 green,social or sustainable (GSS) bond transactions and one Sustainability Linked Loan
totalling over NZ$5 billion.
The ANZ Staff Foundation, our payroll giving programme which is matched by thebank $2 for every $1 contributed, allocated over $1.2 million to 103 charities.
In FY21, partners delivered ANZ NZ’s financial literacy programme, MoneyMinded, to346 people.
ANZ Investment Services started the process to return funds of $870 million to morethan one million Bonus Bonds customers. As part of this process, they will donate
nearly $180,000 to the Cancer Society of New Zealand on behalf of the more than
8,900 bondholders who have chosen to donate their remaining bond holdings todate.
ANZ NZ appointed its first Te Kaitohu Rautaki Māori (Head of Te Ao Māori Strategy).
The proportion of women in leadership increased to 37%, and our board andexecutive team are gender-balanced.

A table of key financial information follows
Summary of key financial information
ANZ New ZealandHalf year Half year Sep 21 v Sep 21 v Full year Full year Sep 21 v Sep 21 v
Sep 21Mar 21Mar 21Mar 21
Sep 21
Sep 20
Sep 20
Sep 20
NZ$m
NZ$m
NZ$m%
NZ$m
NZ$m
NZ$m%

Profit

Net interest income
Other operating income
Operating income
Operating expenses
Profit before credit impairment andincome tax
Credit impairment charge
Profit before income tax
Income tax expense

82
79

5%
0%
4%
10%

3,404
728
4,132
1,607

3,229
820
4,049
1,736

175(92)83(129)5%-11%
2%-7%

1,261

30%

2,525

2,313

212

9%(45)
1,309
364

(70)
1,331
369

25(22)(5)-36%-2%-1%

(115)
2,640
733

401
1,912
541

(516)
728
192

large
38%
35%

945

962

(17)

-2%

1,907

1,371

536

39%

Reconciliation of cash profit to statutory profit
Cash profit
945
Reconciling items (net of tax):

962

(17)

-2%

1,907

1,371

536

39%

Economic hedges 244(32)

76

large

12(35)

47

large

Statutory profit

989

930

59

6%

1,919

1,336

583

44%

457
328
(3)
782
161
2521
303
1825
140
(3)

(64)
25(4)
(43)
21
5-12%8%large
-5%
15%
large

978631(2)1,607
301(1)

673
402
4
1,079
352(60)

305
229
(6)
528(51)
5945%
57%
large
49%
-14%
-98%

Cash profit1

Comprising:
PersonalBusinessCentral Functions
New Zealand Division
Institutional
Group Centre1
Cash profit1

1,743
364
2,107
843

1,661
364
2,025
764

1,264

82-945

962

(17)

-2%

1,907

1,371

536

39%

244(32)76

large

12(35)

47

large

Statutory profit1

989

930

596%

1,919

1,336

583

44%

Economic hedges

1. Loss on sale of UDC Finance Ltd
Statutory profit for the year ended 30 September 2020 includes a $32m loss on sale of UDC Finance Ltd (UDC). Cash profit
also includes an after tax loss of $23m on the unwind of economic hedges of UDC loans and advances. The cash profit
impact is included in Group Centre.
2. Economic hedges
Fair value gains and losses are recognised in the Income Statement on economic hedges used to manage interest rate andforeign exchange risk. The mark to market adjustments on these derivatives, not designated in an accounting hedge, areremoved from cash profit as the fair value gains or losses will reverse over time to match the profit or loss on the hedged
item.

For media enquiries contact Kristy Martin +64 21 531402
Approved for distribution by ANZ’s Continuous Disclosure Committee.