ANZ comments on RBNZ Capital Review Consultation Paper

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
News Release
For Release: 14 December 2018

ANZ comments on RBNZ Capital Review Consultation Paper

Further to ANZ’s announcement of earlier today, the Reserve Bank of New Zealand (RBNZ)
has released a consultation paper titled “Capital Review Paper 4”.

This consultation paper relates to possible additional RBNZ capital requirements in relation
to ANZ’s New Zealand assets. These are separate to ANZ Group’s capital measurement and
minimum requirements set by APRA.

Responses are due on 29 March 2019.

The consultation paper refers to a proposed implementation period of five years and sets
out:

 Potential increases in the risk weighting applied to the assets of banks in New
Zealand; and
 Potential increases to the percentage of capital held against those risk weights in
New Zealand.
ANZ has a number of questions and comments in relation to the consultation paper. ANZ will
engage with RBNZ and APRA on these throughout the consultation period.

Based on the potential changes set out in the consultation paper, and ANZ’s New Zealand
balance sheet as at 30 September 2018, the changes imply a potential capital increase in
New Zealand of NZ$6 billion to NZ$8 billion (A$5.7 billion to A$7.7 billion
1
). ANZ New
Zealand currently has approximately NZ$12 billion of Tier 1 capital (A$11.3 billion
1
).

The overall impact on the ANZ Group depends on a number of factors. These include the
outcome of the consultation, ANZ’s New Zealand balance sheet at the time of
implementation, and the outcome of other reviews currently underway by APRA.

Therefore, it remains too early to determine the extent to which this could impact the capital
levels held by the ANZ Group.

The ANZ Group Common Equity Tier 1 Capital Ratio at 30 September 2018 was 11.4 per
cent which is approximately A$3.7 billion above the APRA stated Unquestionably Strong
level of 10.5 per cent.

For media enquiries contact:

Stephen Ries, +61 409 655 551
Emma Mellow, +64 216 141 65

For investor enquiries contact:

Jill Campbell, +61 412 047 448
Cameron Davis, +61 421 613 819






1. FX rate of 1.05 AUD/NZD