ANZ agrees to sell UDC Finance

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
News Release
For release: 11 January 2017

ANZ agrees to sell UDC Finance

ANZ today announced an agreement to sell UDC Finance, the asset finance business of its
wholly owned subsidiary ANZ Bank New Zealand, to HNA Group, a global company focused
on tourism, logistics and financial services.

The sale reflects a continued focus by ANZ on simplifying its business and capital efficiency.

ANZ New Zealand CEO David Hisco said: “The sale of UDC is consistent with our strategy to
simplify the bank and is a good outcome for customers and staff. HNA Group is one of the
world’s largest asset finance and leasing companies, and it intends to preserve UDC’s
operations including offering continued employment to all staff.”

UDC Transaction and Financial Summary

Sale Price ~NZ$660m
Premium to Net Assets (30/09/2016) ~NZ$235m
Price-to-Book Ratio (UDC net assets 30/09/2016) ~1.6 times
ANZBGL Net Gain on Sale (after transaction costs and
release of goodwill)
~A$100 million
CET1 benefit (ANZBGL APRA CET1) ~10 basis points
CET1 Benefit (ANZ Bank New Zealand Limited) ~50 basis points
UDC financial summary (Financial Year 2016)
1

 Net Loans and Advances (30/09/2016) ~NZ$2.6 billion
 Risk Weighted Assets (30/09/2016) ~NZ$2.4 billion
 Customer Deposits (30/09/2016)
2
~NZ$1.6 billion
 Total Revenue NZ$120 million
 Profit Before Provisions NZ$89 million
 Net Profit after Tax NZ$59 million

The transaction also includes the Esanda name and trademarks in Australia and New
Zealand. The additional consideration for the name and trademark sale is not material to
ANZ.

The UDC sale is subject to closing steps and conditions including engaging with investors on
the replacement of the Secured Investment program and regulatory approvals. Completion
is expected late in the second half of the 2017 calendar year.

For media enquiries:

Paul Edwards, +61-434-070101
Stephen Ries + 61-409-655551

For investor relations enquiries:

Cameron Davis +61-421-613819


1
UDC FY16 Financial Statements are available at https://www.udc.co.nz/pdf/Full-Financial-Statements-2016.pdf
2
Customer deposits are UDC secured investments.