ANZ NZ Branch DS 31 March 2021

Regulatory10 May 2021ANZFinancials

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
ANZ Centre Melbourne, Level 9A, 833 Collins Street, Docklands VIC 3008

10 May 2021

Market Announcements Office
ASX Limited
Level 4
20 Bridge Street
SYDNEY NSW 2000

Australia and New Zealand Banking Group Limited – ANZ New Zealand Branch
Registered Bank Disclosure Statement

Australia and New Zealand Banking Group Limited (ANZ) today released its ANZ New
Zealand Branch Registered Bank Disclosure Statement for the six months ended 31
March 2021.

It has been approved for distribution by ANZ’s Board of Directors.

Yours faithfully

Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
- ANZ NEW ZEALAND
REGISTERED BANK DISCLOSURE STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2021
NUMBER 44 | ISSUED MAY 2021

2
CONTENTS
Glossary of terms 2
DISCLOSURE STATEMENT
Interim Financial Statements 3
Condensed consolidated interim financial statements 4
Notes to the interim f inancial statements 8
Registered Bank Disclosures 24
Directors’ and New Zealand Chief Executive Officer’s Statement
34
Independent Auditor’s Review Report
35
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 means the Bank and all its controlled entities.
Immediate Parent Company means ANZ Funds Pty Limited, which is the immediate parent company of 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 it
were 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, We or Our means the New Zealand business of the Overseas Banking Group.
Registered Office is Level 10, 171 Featherston Street, Wellington, New Zealand, which is also ANZ New Zealand’s address for service.
RBNZ means the Reserve Bank of New Zealand.
APRA means the Australian Prudential Regulation Authority.
the Order means the Registered Bank Disclosure Statements ( Overseas Incorporated Registered Banks) Order 2014.
Any te
rm or expression which is defined in, or in the manner prescribed by, the Order shall have the meaning given in or prescribed by
the Order.

3
INTERIM FINANCIAL
STATEMENTS
Condensed consolidated interim financial statements
Income statement
4
Statement of comprehensive income
4
Balance sheet
5
Cash flow statement
6
Statement of changes in equity
7
Notes to the condensed consolidated interim financial statements
Basis of preparation
1. About our interim financial statements 8
Financial performance
2. Other operating income 9
3. Operating expenses 9
4. Segment reporting10
Financial and non-financial assets
5. Net loans and advances11
6. Allowance for expected credit losses 12
7. Goodwill and other intangible assets 16
Financial and non-financial liabilities
8. Deposits and other borrowings18
9. Other provisions18
10. Debt issuances18
Financial instrument disclosures
11. Credit risk19

12. Fair value of financial assets and financial liabilities21

Other disclosures
13. Commitments and contingent liabilities22

14. Subsequent events22

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED
Th
e notes appearing on pages 8 to 22 form an integral part of these interim financial statements
5
BALANCE SHEET
31 Mar 21 30 Sep 20
As at Note NZ$m NZ$m
Assets
Cash and cash equivalents
5,579
8,248
Settlement balances receivable
447
378
Collateral paid
1,380
1,394
Trading securities
9,700
12,797
Derivative financial instruments
12,220
9,756
Investment securities
12,046
9,893
Net loans and advances 5
137,786
132,984
Investments in associates
6
-
Deferred tax assets
371
330
Goodwill and other intangible assets 7
3,088
3,092
Premises and equipment
549
590
Other assets
639
625
Total assets 183,811
180,087
Liabilities
Settlement balances payable
2,830
2,908
Collateral received
1,202
1,275
Deposits and other borrowings 8
131,722
127,997
Derivative financial instruments
11,029
8,166
Current tax liabilities
63
237
Payables and other liabilities
1,354
1,135
Employee entitlements
137
143
Other provisions 9
348
389
Debt issuances 10
20,153
23,827
Total liabilities (excluding head office account) 168,838
166,077
Net assets (excluding head office account) 14,973
14,010
Equity
Share capital and initial head office account
11,055
11,055
Reserves
119
118
Retained earnings
3,799
2,837
Total equity & head office account 14,973
14,010

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED
INTERIM FINANCIAL STATEMENTS
The n
otes appearing on pages 8 to 22 form an integral part of these interim financial statements
6
CASH FLOW STATEMENT
2021 2020
For the six months ended 31 March NZ$m NZ$m
Profit after income tax 930
789
Adjustments to reconcile to net cash flows from operating activities:
Depreciation and amortisation
63
69
Loss on sale and impairment of premises and equipment
1
-
Net derivatives/foreign exchange adjustment
(765)
1,203
Other non-cash movements
117
118
Net (increase)/decrease in operating assets:
Collateral paid
14
(203)
Trading securities
3,097
(2,737)
Net loans and advances
(4,802)
(2,415)
Other assets
(124)
(405)
Net increase/(decrease) in operating liabilities:
Deposits and other borrowings (excluding borrowings from Immediate Parent and Ultimate Parent Bank)
3,810
7,639
Settlement balances payable
(78)
625
Collateral received
(73)
299
Other liabilities
19
(264)
Total adjustments 1,279
3,929
Net cash flows from operating activities
1
2,209
4,718
Cash flows from investing activities
Investment securities:
Purchases
(4,046)
(1,050)
Proceeds from sale or maturity
1,509
768
Purchases of investments in associates
(6)
-
Other assets
(17)
(21)
Net cash flows from investing activities (2,560)
(303)
Cash flows from financing activities
Debt issuances
2

Issue proceeds
-
2,327
Redemptions
(2,307)
(966)
Borrowings from Immediate Parent and Ultimate Parent Bank:
3

Loans drawn down
910
-
Repayments
(898)
(715)
Repayment of lease liabilities
(23)
(24)
Net cash flows from financing activities (2,318)
622
Net change in cash and cash equivalents
(2,669)
5,037
Cash and cash equivalents at beginning of period
8,248
2,709
Cash and cash equivalents at end of period 5,579
7,746
1 Net cash provided by operating activities includes income taxes paid of NZ$582 million (2020: NZ$485 million).
2 Movement in debt issuances (Note 10 d ebt i ssuances) also includes an NZ$1,077 million decrease (2020: NZ$836 million increase) from the effect of foreign exchange rates, a NZ$336
million decrease (2020: NZ$320 million increase) from changes in fair value hedging instruments and a NZ$46 million increase (2020: NZ$95 million increase) of other changes.
3 Movement in borrowings from Immediate Parent and Ultimate Parent Bank (Note 8 deposit and o ther b orrowings) also includes an NZ$54 million decrease (2020: NZ$32 million increase)
from the effect of foreign exchange rates, a NZ$44 million decrease (2020: NZ$64 million increase) from changes in fair value hedging instruments and a NZ$1 million increase (2020: nil) of
other changes.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

The notes appearing on pages 8 to 22 form an integral part of these interim financial statements

7
STATEMENT OF CHANGES IN EQUITY

Share
capital
and initial
head
office
account
Investment
securities
revaluation
reserve
Cash flow
hedging
reserve
Retained
earnings
Total
equity
NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2019

11,055 (6) 27 1,523 12,599
Impact on transition to NZ IFRS 16 Leases

- - - (17) (17)
As at 1 October 2019 (adjusted)

11,055 (6) 27 1,506 12,582
Profit or loss - - - 789 789
Unrealised losses recognised directly in equity - (38) (27) - (65)
Realised losses transferred to the income statement - - 14 - 14
Actuarial loss on defined benefit schemes - - - (17) (17)
Income tax credit on items recognised directly in equity - 11 4 4 19
Total comprehensive income for the period
- (27) (9) 776 740
As at 31 March 2020

11,055 (33) 18 2,282 13,322

As at 1 October 2020

11,055 8 110 2,837 14,010
Profit or loss
- - - 930 930
Unrealised gains / (losses) recognised directly in equity
- 49 (52) - (3)
Realised losses / (gains) transferred to the income statement
- (2) 6 - 4
Actuarial gain on defined benefit schemes
- - - 43 43
Income tax credit / (expense) on items recognised directly in equity
- (13) 13 (11) (11)
Total comprehensive income for the period

- 34 (33) 962 963
As at 31 March 2021

11,055 42 77 3,799 14,973

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

8
1. ABOUT OUR INTERIM FINANCIAL STATEMENTS
BASIS OF PREPARATION
These are the condensed consolidated interim financial statements (financial statements) for ANZ New Zealand and should be read in conjunction
with ANZ New Zealand’s financial statements for the year ended 30 September 2020.
On 7 May 2021, the Directors resolved to authorise the issue of these financial statements.
These financial statements comply with:
• New Zealand Generally Accepted Accounting Practice (NZ GAAP), 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 for-profit
entities; and
• IAS 34 Interim Financial Reporting.
The consolidated financial statements of ANZ New Zealand comprise the financial statements of the NZ Branch and all of the New Zealand businesses
of all the subsidiaries of the Ultimate Parent Bank.
We present the financial statements in New Zealand dollars and have rounded values to the nearest million dollars (NZ$m), unless otherwise stated.
The accounting policies adopted by ANZ New Zealand are consistent with those adopted and disclosed in the previous full year financial statements.
BASIS OF MEASUREMENT
These financial statements have been prepared on a going concern basis in accordance with historical cost concepts except that the following assets
and liabilities are stated at their fair value:
• derivative financial instruments;
• financial instruments measured at fair value through other comprehensive income; and
• financial instruments designated at fair value through profit and loss.

KEY JUDGEMENTS AND ESTIMATES

The preparation of these financial statements requires the use of management judgement, estimates and assumptions that affect reported
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 and judgements are
reviewed on an ongoing basis.
A brief explanation of the key estimates, assumptions and judgements that have changed during the six months ended 31 March 2021 follows:
Coronavirus (COVID-19) pandemic
The COVID-19 pandemic and its effect on the global economy have impacted our customers, operations and ANZ New Zealand‘s
performance. The outbreak necessitated governments to respond at unprecedented levels to protect the health of the population, local
economies and livelihoods. It has affected different regions at different times and at varying degrees and there remains a risk of
subsequent waves of infection. Thus the pandemic has significantly increased the estimation uncertainty in the preparation of these
financial statements including:
• the extent and duration of the disruption to business arising from the actions of governments, businesses and consumers to contain
the spread of the virus;
• the impact, extent and duration of the expected economic downturn (and forecasts for key economic factors including GDP,
employment and house prices). This includes disruption to capital markets, and the impacts on credit quality, liquidity,
unemployment, consumer spending, as well as specific sector impacts and other restructuring activities; and
• the efficacy, extent and pace of roll-out of vaccines, as well as the effectiveness of government and central bank measures that have
been and will be put in place to support businesses and consumers through this disruption.
ANZ New Zealand
has made various accounting estimates in these financial statements based on forecasts of economic conditions which
reflect expectations and assumptions as at 31 March 2021 about future events that the Directors believe are reasonable in the circumstances.
There is a considerable degree of judgement involved in preparing these estimates. The underlying assumptions are also subject to
uncertainties which are often outside the control of ANZ New Zealand. Accordingly, actual economic conditions are likely to be different from
those forecast since anticipated events frequently do not occur as expected, and the effect of those differences may significantly impact
accounting estimates included in these financial statements.
The significant accounting estimates impacted by these forecasts and associated uncertainties are predominantly related to expected credit
losses, carrying values of goodwill, fair value measurement, and recoverable amounts of non-financial assets.
The impact of the COVID-19 pandemic on each of these estimates is discussed further in the relevant note in these financial statements and/or
in the relevant note in the previous full year financial statements. Readers should consider these disclosures in light of the inherent uncertainty
described above.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

9
2. OTHER OPERATING INCOME
2021 2020
For the six months ended 31 March NZ$m NZ$m
(i) Fee and commission income

Lending fees

16
17
Non-lending fees

341
374
Commissions

18
21
Funds management income

131
133
Fee and commission income

506
545
Fee and commission expense

(230)
(260)
Net fee and commission income

276
285
(ii) Other income

Net trading gains
65
69
Fair value gain / (loss) on hedging activities and financial liabilities designated at fair value

(36)
143
Net foreign exchange earnings and other financial instruments income

29
212
Other

22
10
Other income

51
222
Other operating income

327
507

3. OPERATING EXPENSES
2021 2020
For the six months ended 31 March NZ$m NZ$m
Personnel

Salaries and related costs
421
454
Superannuation costs
14
15
Other
9
24
Personnel

444
493
Premises

Rent
9
12
Depreciation
40
45
Other
20
20
Premises

69
77
Technology

Depreciation and amortisation
23
24
Subscription licences and outsourced services
62
60
Other
18
22
Technology (excluding personnel)

103
106
Other

Advertising and public relations
17
24
Professional fees
31
31
Freight, stationery, postage and communication
21
21
Charges from Ultimate Parent Bank
53
41
Other

34
43
Other

156
160
Operating expenses

772
836

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

10
4. SEGMENT REPORTING
ANZ New Zealand 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.
There were no material changes to ANZ New Zealand’s reportable segments during the six months ended 31 March 2021.
Retail
Retail 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 through
dedicated managers focusing on privately owned medium to large enterprises, the agricultural business segment, government and government
related entities.
Institutional
The Institutional division services governments, global institutional and corporate customers across three product sets: Transaction Banking, Corporate
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.
• Corporate Finance provides loan products, loan syndication, specialised loan structuring and execution, project and export finance, debt
structuring and acquisition finance and corporate advisory.
• Markets provide risk management services on foreign exchange, interest rates, credit, commodities and debt capital markets in addition to
managing ANZ New Zealand’s interest rate exposure and liquidity position.
Other
Other includes treasury and back office support functions, none of which constitutes a separately reportable segment.
Retail Commercial Institutional Other Total
For the six months
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
ended 31 March NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Net interest income
986
922
503
549
168
176
4
1
1,661
1,648
Net fee and commission income

- Lending fees
7
8
-
-
9
9
-
-
16
17
- Non-lending fees
308
343
5
5
28
26
-
-
341
374
- Commissions
17
21
-
-
1
-
-
-
18
21
- Funds management income
131
133
-
-
-
-
-
-
131
133
- Fee and commission expense
(230)
(260)
-
-
-
-
-
-
(230)
(260)
Net fee and commission income
233
245
5
5
38
35
-
-
276
285
Other income
15
9
-
1
75
46
(39)
166
51
222
Other operating income
248
254
5
6
113
81
(39)
166
327
507
Operating income
1,234
1,176
508
555
281
257
(35)
167
1,988
2,155
Operating expenses
(547)
(574)
(118)
(147)
(94)
(96)
(13)
(19)
(772)
(836)
Profit before credit impairment
and income tax
687
602
390
408
187
161
(48)
148
1,216
1,319
Credit impairment release /
(charge)
32
(82)
31
(106)
7
(44)
-
-
70
(232)
Profit / (loss) before income tax 719
520
421
302
194
117
(48)
148
1,286
1,087
Income tax expense
(198)
(146)
(118)
(85)
(54)
(33)
14
(34)
(356)
(298)
Profit / (loss) after income tax 521
374
303
217
140
84
(34)
114
930
789

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

11
Retail Commercial Institutional Other Total
31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20
As at NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Financial position

Goodwill
1,011
1,011
926
926
1,069
1,069
-
-
3,006
3,006
Net loans and advances
92,418
86,648
38,832
39,333
6,533
6,993
3
10
137,786
132,984
Customer deposits
81,358
79,867
20,172
18,437
21,256
22,559
-
-
122,786
120,863

Other segment
The Other segment profit/(loss) after tax comprises:

2021 2020
For the six months ended 31 March

NZ$m NZ$m
Central functions
1
3
Group Centre
(3)
(1)
Economic hedges
(32)
112
Total

(34)
114

5. NET LOANS AND ADVANCES

31 Mar 21 30 Sep 20
Note NZ$m NZ$m
Overdrafts

652
659
Credit cards

1,287
1,300
Term loans - housing

95,387
89,544
Term loans - non-housing

40,732
41,882
Subtotal

138,058
133,385
Unearned income

(23)
(25)
Capitalised brokerage and other origination costs

368
319
Gross loans and advances

138,403
133,679
Allowance for expected credit losses 6
(617)
(695)
Net loans and advances

137,786
132,984

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

12
6. ALLOWANCE FOR EXPECTED CREDIT LOSSES
This note should be read in conjunction with the estimates, assumptions and judgements relating to COVID-19 included in Note 1.
ALLOWANCE FOR EXPECTED CREDIT LOSSES – BALANCE SHEET
Net loans and advances - at amortised cost

Allowance for Expected Credit Losses (ECL) is included in net loans and advances.

Stage 3

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2020 161 347 80 107 695
Transfer between stages
22 (20) (3) 1 -
New and increased provisions (net of collective provision releases)
(33) 1 (15) 38 (9)
Write-backs
- - - (36) (36)
Bad debts written-off (excluding recoveries)
- - - (28) (28)
Discount unwind
- - - (5) (5)
As at 31 March 2021 150 328 62 77 617
Off-balance sheet credit related commitments - undrawn and contingent facilities
Allowance for ECL is included in other provisions.

As at 1 October 2020 79 55 3 22 159
Transfer between stages
3 (3) - - -
New and increased provisions (net of collective provision releases)
(11) (1) - (3) (15)
As at 31 March 2021 71 51 3 19 144

CREDIT IMPAIRMENT CHARGE – INCOME STATEMENT
2021 2020
For the six months ended 31 March NZ$m NZ$m
New and increased provisions

- Collectively assessed

(60)
188
- Individually assessed

36
73
Write-backs

(36)
(15)
Recoveries of amounts previously written-off

(10)
(14)
Total credit impairment charge / (release)

(70)
232

LOAN DEFERRAL AND RELIEF PACKAGES
From March 2020, ANZ New Zealand offered various forms of assistance to customers to counteract the impact of COVID-19 on the ability of
customers to meet their loan obligations. The assistance provided included arrangements such as temporary deferral of principal and interest
repayments, replacing principal and interest with interest only repayments, and extension of loan maturity dates. The loan deferral and relief packages
are considered to be a loan modification under NZ IFRS 9. This either results in the loan being derecognised and replaced with a new loan (substantial
modification) or the existing loan continuing to be recognised (non-substantial modification).
These relief packages were phased out during the six months ended 31 March 2021. In the case of loan deferral packages, 86% of all customers who
took advantage of a deferral package have reverted back to loan repayments, with the remainder having been either restructured or, for less than 2%
of customers, transferred to hardship. For those customers who took up loan deferral packages, it is considered that the packages, as well as
government support measures, may have obscured repayment delinquencies that might otherwise have occurred over the loan deferral period and
those that may still occur in the future. Thus ANZ New Zealand has provided a component of ECL for expected delinquencies and increases in
Significant Increase in Credit Risk (SICR) for this population of loans.
Facilities which transitioned to interest-only or took up term extensions offered as a result of COVID-19, are now subsumed within the normal loan
population and are managed accordingly.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

13

KEY JUDGEMENTS AND ESTIMATES
In estimating individually assessed ECL for Stage 3 exposures, ANZ New Zealand makes judgements and assumptions in relation to expected
repayments, the realisable value of collateral, business prospects for the customer, competing claims and the likely cost and duration of the
work-out process. Judgements and assumptions in respect of these matters have been updated to reflect the ongoing and potential impact of
COVID-19.
In estimating collectively assessed ECL, ANZ New Zealand makes judgements and assumptions in relation to:
• the selection of an estimation technique or modelling methodology, noting that the modelling of ANZ New Zealand’s ECL estimates are
complex; and
• the selection of inputs for those models, and the interdependencies between those inputs.
The following table summarises the key judgements and assumptions in relation to the model inputs and the interdependencies between
those inputs, and highlights significant changes during the current period.
The judgements and associated assumptions have been made in the context of the impact of COVID-19, and reflect historical experience and
other factors that are considered to be relevant, including expectations of future events that are believed to be reasonable under the
circumstances. ANZ New Zealand’s ECL estimates are inherently uncertain and, as a result, actual results may differ from these estimates.
Judgement /
assumption

Description
Considerations for the six months ended
31 March 2021
Determining
when a SICR
has occurred
In the measurement of ECL, judgement is involved in
setting the rules and trigger points to determine
whether there has been a SICR since initial recognition
of a loan, which would result in the financial asset
moving from Stage 1 to Stage 2. This is a key area of
judgement since transition from Stage 1 to Stage 2
increases the ECL from an allowance based on the
probability of default in the next 12 months, to an
allowance for lifetime expected credit losses.
Subsequent decreases in credit risk resulting in
transition from Stage 2 to Stage 1 may similarly result in
significant changes in the ECL allowance.
The setting of precise trigger points requires judgement
which may have a material impact upon the size of the
ECL allowance. ANZ New Zealand monitors the
effectiveness of SICR criteria on an ongoing basis.
The relief packages offered to customers in
response to COVID-19 in 2020 are no longer being
offered, and the majority of customers who took up
the relief have reverted back to their normal loan
repayments.
The relief packages, as well as government support
measures, may have obscured repayment
delinquencies that might otherwise have occurred
and those that may still occur in the future. Thus
ANZ New Zealand has provided a component of
ECL for expected delinquencies and increases in
SICR.
Measuring
both 12-month
and lifetime
credit losses
The probability of default (PD), loss given default (LGD)
and exposure at default (EAD) credit risk parameters
used in determining ECL are point-in-time measures
reflecting the relevant forward looking information
determined by management. Judgement is involved in
determining which forward-looking information
variables are relevant for particular lending portfolios
and for determining each portfolio’s point-in-time
sensitivity.
The PD, EAD and LGD models are subject to ANZ
New Zealand’s model risk policy that stipulates
periodic model monitoring, periodic re-validation
and defines approval procedures and authorities
according to model materiality.
During the six months ended 31 March 2021 an
adjustment was made to the modelled outcome to
account for continuing model uncertainties as a
result of COVID-19.
In addition, judgement is required where behavioural
characteristics are applied in estimating the lifetime of a
facility to be used in measuring ECL.
There were no material changes to the policies
during the six months ended 31 March 2021.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

14

KEY JUDGEMENTS AND ESTIMATES
Judgement /
assumption

Description
Considerations for the six months ended
31 March 2021
Base case
economic
forecast
ANZ New Zealand derives a forward looking “base case”
economic scenario which reflects our view of future
macro-economic conditions.

There have been no changes to the types of forward
looking variables (key economic drivers) used as
model inputs in the current period.
As at 31 March 2021, the base case assumptions have
been updated to reflect the current phase of COVID-
19, including containment in key geographies,
government stimulus measures and roll-out of
vaccines. In determining the expected path and
timing out of the current economic downturn,
assessments of the impact of central bank policies,
governments’ actions, the response of business, and
institution specific responses (such as payment
deferrals) were considered.
The expected outcomes of key economic drivers for
the base case scenario as at 31 March 2021 are
described below under the heading “Base case
economic forecast assumptions”.
Probability
weighting of
each scenario
(base case,
upside,
downside

and
severe
downside
scenarios)
1,2

Probability weighting of each economic scenario is
determined by management considering the risks and
uncertainties surrounding the base case scenario at
each measurement date.
The key consideration for probability weightings in
the current period is the extent and timing of
recovery from the economic downturn caused by
COVID-19.
ANZ New Zealand considers these weightings to
provide the best estimate of the possible loss
outcomes and has analysed inter-relationships and
correlations (over both the short and long term)
within ANZ New Zealand’s credit portfolios in
determining them.
In addition to the base case forecast which reflects a
significant improvement as we emerge from an
economic environment heavily influenced by COVID-
19, greater weighting continues to be applied to the
downside scenario given ANZ New Zealand’s
assessment of downside risks.
The assigned probability weightings are subject to a
high degree of inherent uncertainty and therefore
the actual outcomes may be significantly different to
those projected.
Management
temporary
adjustments
Management temporary adjustments to the ECL
allowance are used in circumstances where it is judged
that our existing inputs, assumptions and model
techniques do not capture all the risk factors relevant to
our lending portfolios. Emerging local or global
macroeconomic, microeconomic or political events,
and natural disasters that are not incorporated into our
current parameters, risk ratings, or forward-looking
information are examples of such circumstances. The
use of management temporary adjustments may
impact the amount of ECL recognised.
The uncertainty associated with the COVID-19
pandemic, including the roll-out of vaccines, and the
extent to which the actions of governments, businesses
and consumers mitigate against potentially adverse
credit outcomes are not fully incorporated into existing
ECL models which are based on historical underlying
data. Accordingly, management overlays have been
applied to ensure credit provisions are appropriate.
Management have applied a number of adjustments
to the modelled ECL primarily due to the uncertainty
associated with continuing COVID-19 impacts.
Management overlays (including COVID-19 overlays)
which add to the modelled ECL provision have been
made for risks particular to retail, commercial and agri
banking.

1. The upside and downside scenarios are fixed by reference to average economic cycle conditions (that is, they are not based on the economic conditions prevailing at balance date) and are
based on a combination of more optimistic (in the case of the upside) and pessimistic (in the case of the downside) economic conditions.
2. The severe downside scenario is fixed by reference to average economic cycle conditions and accounts for the potentially severe downside impact of less likely extremely adverse economic
conditions.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

15

KEY JUDGEMENTS AND ESTIMATES
Base case economic forecast assumptions
The uncertain evolution of the COVID-19 pandemic increases the risk to the economic forecast resulting in an understatement or
overstatement of the ECL balance due to uncertainties around:
• the extent and duration of measures, including the roll-out of vaccines, to contain the spread of COVID-19;
• the extent and duration of the economic downturn, along with the time required for economies to recover; and
• the effectiveness of government stimulus measures, in particular their impact on the magnitude of the economic downturn and the
extent and duration of the recovery.
The economic drivers of the base case economic forecasts at 31 March 2021 are set out below. These reflect our view of future macro-
economic conditions at 31 March 2021. For years beyond the near term forecasts below, the ECL models project future year economic
conditions including an assumption to eventual reversion to mid-cycle economic conditions.
Actual calendar year Forecast calendar year
New Zealand 2020 2021 2022
Gross domestic product (GDP) -3.0% 3.6% 3.7%
Unemployment 4.6% 5.4% 4.6%
Residential property prices 15.6% 17.4% 4.1%
Consumer price index (CPI) 1.7 1.9 1.6

The base case economic forecasts as at 31 March 2021 indicate a significant improvement in current and expected economic conditions from
the forecasts as at 30 September 2020 reflecting the ongoing progress and actions in responding to the COVID-19 pandemic.
Probability weightings
Probability weighting of each scenario is determined by management considering the risks and uncertainties surrounding the base case
scenario. The key consideration for probability weightings in the current period is the effectiveness of actions taken in response to COVID-19
and the ability of vaccines to limit the impact of the virus.
The base case scenario represents a significant improvement in the forecasts since September 2020. Given the uncertainties associated with a
potential recovery in the economy, greater weighting continues to be applied to the downside and severe downside scenarios given ANZ New
Zealand’s assessment of downside risks.
The assigned probability weightings are subject to a high degree of inherent uncertainty and therefore the actual outcomes may be
significantly different to those projected. ANZ New Zealand considers these weightings to provide the best estimate of the possible loss
outcomes and has analysed inter-relationships and correlations (over both the short and long term) within ANZ New Zealand’s credit portfolios
in determining them. The average weightings applied are set out below:

31 Mar 21 30 Sep 20
Base 50% 50%
Upside 8% 8%
Downside 32% 32%
Severe downside 10% 10%

ECL - sensitivity analysis
Given current economic uncertainties and the judgement applied to factors used in determining the expected default of borrowers in future
periods, ECL reported by ANZ New Zealand should be considered as a best estimate within a range of possible estimates.
The table below illustrates the sensitivity of collectively assessed ECL to key factors used in determining it as at 31 March 2021:

Total
NZ$m
Impact
NZ$m
If 1% of Stage 1 facilities were included in Stage 2 669 4
If 1% of Stage 2 facilities were included in Stage 1 664 (1)

100% upside scenario
100% base scenario
100% downside scenario
100% severe downside scenario
457
544
802
998
(208)
(121)
137
333

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

16
7. GOODWILL AND OTHER INTANGIBLE ASSETS

31 Mar 21 30 Sep 20
NZ$m NZ$m
Goodwill

3,006
3,006
Funds management rights (indefinite life)
76
76
Software
6
10
Goodwill and other intangible assets

3,088
3,092

GOODWILL AND OTHER INTANGIBLE ASSETS ALLOCATED TO CASH-GENERATING UNITS (CGUs)
Goodwill arose on the acquisition of the NBNZ Holdings Limited group on 1 December 2003, and the carrying amount reflects amortisation
recognised before the application of NZ IFRS from 1 October 2004 and subsequent business disposals. Funds management rights, assessed as having
indefinite useful lives, arose on the acquisition of the ING Holdings (NZ) Limited (now ANZ Wealth New Zealand Limited) group on 30 November 2009.
Goodwill and funds management rights are allocated to CGUs as follows:

Goodwill Management rights

31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20
Cash generating unit NZ$m NZ$m NZ$m NZ$m
Retail and business banking

893
893
-
-
Wealth

118
118
76
76
Retail segment

1,011
1,011
76
76
Commercial

926
926
-
-
Institutional

1,069
1,069
-
-
Total

3,006
3,006
76
76

Annual goodwill impairment test
The annual impairment test is performed as at the end of February each year. Goodwill is considered to be impaired if the carrying amount of the
relevant CGU exceeds its recoverable amount. The recoverable amount of a CGU is the higher of its fair value less costs of disposal (FVLCOD) and its
value-in use (VIU). We use a value-in-use approach to estimate the recoverable amount of the CGU to which each goodwill component is allocated.
Based on this assessment no impairment was identified for any CGU, and therefore a FVLCOD calculation was not required.
VALUE-IN-USE
These calculations use cash flow projections based on a number of financial budgets within each CGU covering an initial forecast period. These
projections also incorporate economic assumptions including GDP, inflation, unemployment, residential and commercial property prices, the impact
of the restriction imposed by the RBNZ on the payment of ordinary dividends by all New Zealand incorporated registered banks, and the
implementation of the RBNZ’s increased capital requirements. Cash flows beyond the forecast period are extrapolated using the terminal growth rate.
These cash flow projections are discounted using a discount rate derived using a capital asset pricing model.
Future changes in the assumptions upon which the calculation is based may materially impact this assessment, resulting in the potential impairment
of part or all of the goodwill balances.
Input / assumption
Values applied in 28 February 2021 impairment test
Forecast period and projections To 30 September 2028 - an extended forecast period was used to cover the implementation period of the
RBNZ’s increased capital requirements over the period 1 July 2021 to 1 July 2028.
Revenue growth over forecast
period
Comprises impacts of net interest margin and volume growth, arising from planned responses to known
regulatory and economic forecasts. Average annual forecast revenue growth rates are shown below.
Credit impairment over forecast
period
Varies by CGU, based on ECL modelling for 2021 to 2023, before returning to long run experience levels for
2024 to 2028. Long run experience levels are based on ANZ New Zealand’s bad debts written off, net of
recoveries, since 2004 of 0.15% of gross loans and advances. Credit impairment for each CGU as a
percentage of forecast gross loans and advances for 2024 to 2028 is shown below.
Terminal growth rate 2.0% - based on 2023 forecast inflation from the RBNZ’s February 2021 Monetary Policy Statement.
Discount rate Post tax: 9.4% (February 2020: 9.3%).
The main variables in the calculation of the discount rate used are the risk free rate, beta and the market risk
premium. The risk free rate was the traded 10 year New Zealand government bond yield as at 28 February
2021 of 1.9%. The market risk premium was estimated using a range of methods incorporating historical
and forward looking market data. Beta was consistent with observable measures applied in the regional
banking sector.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

17
The values of the average revenue growth, credit impairment as a percentage of forecast gross loans and advances, and pre-tax discount rates
assumptions by CGU are shown in the table below. The implied pre-tax discount rates are significantly higher than the post-tax discount rate above
because regulatory capital retention over the forecast period is not tax effected.

Revenue growth Credit impairment Pre-tax discount rate
Cash generating unit

31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20
Retail and business banking

6.1%
5.8%
0.13%
0.13%
17.5%
16.7%
Wealth

3.4%
2.7%
0.10%
0.01%
16.4%
16.0%
Commercial

4.2%
4.8%
0.21%
0.22%
17.8%
17.1%
Institutional

4.5%
0.6%
0.21%
0.12%
17.3%
17.0%
We performed stress tests for key sensitivities in each CGU. A change, considered to be reasonably possible by management, in key assumptions
would not cause the recoverable amounts of the Retail & business banking and Wealth CGUs to exceed their carrying amounts, but would do so for
the Commercial and Institutional CGUs.
A summary of the amounts by which key assumptions for Commercial and Institutional must change in order for their recoverable amounts to equal
their carrying amounts is shown below.
Recoverable amounts and carrying amounts are those at the Banking Group level as no further goodwill or other intangible assets with indefinite
useful lives exist in ANZ New Zealand entities outside the Banking Group.

Commercial

Institutional

Forecast Change Forecast Change
Value required Value required
Amount by which recoverable amount exceeds carrying amount (NZ$m) 513 n/a 386 n/a
Value of assumption and change (in basis points) required to reduce recoverable amount to nil:

Average annual revenue growth over forecast period 4.2% -87 bp 4.5% -113 bp
Average annual credit impairment FY24-FY28 0.21% +17 bp 0.21% +73 bp
Discount rate 9.4% +63 bp 9.4% +80 bp
Terminal growth rate 2.0% -106 bp 2.0% -140 bp

KEY JUDGEMENTS AND ESTIMATES

Management judgement is used to assess the recoverable value of goodwill and other intangible assets, and the useful economic life of
an asset, or if an asset has an indefinite life. We reassess the recoverability of the carrying value at each reporting date.
Goodwill
A number of key judgements are required in the determination of whether or not a goodwill balance is impaired:
• the level at which goodwill is allocated – consistent with prior periods the CGUs to which goodwill is allocated are ANZ New Zealand’s
four revenue generating segments that benefit from relevant historical business combinations generating goodwill.
• determination of the carrying amount of each CGU which includes an allocation, on a reasonable and consistent basis of corporate
assets and liabilities that are not directly attributable to the CGUs to which goodwill is allocated.
• assessment of the recoverable amount of each CGU used to determine whether the carrying amount of goodwill is supported is
based on judgements including the selection of the model and key assumptions used to calculate the recoverable amount.
The assessment of the recoverable amount of each CGU has been made within the context of the ongoing impact of COVID-19, and
reflects expectations of future events that are believed to be reasonable under the circumstances. The rapidly evolving consequences of
COVID-19 and government, business and consumer responses create heightened uncertainty in these estimates and any variations could
have a positive or adverse impact on the determination of recoverable amounts.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

18
8. DEPOSITS AND OTHER BORROWINGS
31 Mar 21 30 Sep 20
NZ$m NZ$m
Term deposits
43,264
50,069
On demand and short term deposits
59,240
53,910
Deposits not bearing interest
20,282
16,884
Total customer deposits
122,786
120,863
Certificates of deposit
1,407
1,782
Commercial paper
3,543
1,748
Securities sold under repurchase agreements
1,113
646
Borrowings from Ultimate Parent Bank and Immediate Parent Company
2,873
2,958
Deposits and other borrowings

131,722
127,997

9. OTHER PROVISIONS

31 Mar 21 30 Sep 20

Note

NZ$m NZ$m
ECL allowance on undrawn facilities 6
144
159
Customer remediation
121
141
Restructuring costs
31
36
Leasehold make good
23
23
Other
1

29
30
Total other provisions 348
389
1 Other provisions comprise various other provisions including losses arising from other legal action, operational issues, and warranties and indemnities provided in connection with various
disposals of businesses and assets.

10. DEBT ISSUANCES
ANZ New Zealand uses a variety of funding programmes to issue unsubordinated debt (including senior debt and covered bonds) and subordinated
debt. The difference between unsubordinated debt and subordinated debt is that holders of unsubordinated debt take priority over holders of
subordinated debt owed by the relevant issuer and subordinated debt will be repaid by the relevant issuer only after the repayment of claims of
depositors, other creditors and the senior debt holders.

31 Mar 21 30 Sep 20

NZ$m NZ$m
Senior debt
14,066
17,476
Covered bonds
4,245
4,522
Total unsubordinated debt

18,311
21,998
Subordinated debt

- ANZ Capital Notes
1,553
1,543
- Other
289
286
Total subordinated debt

1,842
1,829
Total debt issued

20,153
23,827
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 bonds by 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.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

19
11. CREDIT RISK
This note should be read in conjunction with the estimates, assumptions and judgements relating to COVID-19 in Note 1 and ECL in Note 6.
Maximum exposure to credit risk
For financial assets recognised on the balance sheet, the maximum exposure to credit risk is the carrying amount. In certain circumstances there may
be differences between the carrying amounts reported on the balance sheet and the amounts reported in the tables below. Principally, these
differences arise in respect of financial assets that are subject to risks other than credit risk, such as equity instruments which are primarily subject to
market risk, or bank notes and coins.
For undrawn facilities, this maximum exposure to credit risk is the full amount of the committed facilities. For contingent exposures, the maximum
exposure to credit risk is the maximum amount ANZ New Zealand would have to pay if the instrument is called upon.
The table below shows our maximum exposure to credit risk of on-balance sheet and off-balance sheet positions before taking account of any
collateral held or other credit enhancements.

Reported Excluded
1

Maximum exposure to
credit risk

31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20

NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
On-balance sheet positions

Net loans and advances
137,786
132,984
-
-
137,786
132,984
Other financial assets:

Cash and cash equivalents
5,579
8,248
211
187
5,368
8,061
Settlement balances receivable
447
378
-
-
447
378
Collateral paid
1,380
1,394
-
-
1,380
1,394
Trading securities
9,700
12,797
-
-
9,700
12,797
Derivative financial instruments
12,220
9,756
-
-
12,220
9,756
Investment securities
12,046
9,893
-
-
12,046
9,893
Other financial assets
2

551
547
-
-
551
547
Total other financial assets 41,923
43,013
211
187
41,712
42,826
Subtotal 179,709
175,997
211
187
179,498
175,810
Off-balance sheet commitments

Undrawn and contingent facilities
3

30,206
30,607
-
-
30,206
30,607
Total 209,915
206,604
211
187
209,704
206,417
1 Bank notes and coins and cash at bank within cash and cash equivalents.
2 Other financial assets mainly comprise accrued interest and acceptances.
3 Undrawn facilities and contingent facilities include guarantees, letters of credit and performance related contingencies, net of collectively assessed and individually assessed allowance for
expected credit losses.

Credit quality
We use ANZ New Zealand’s internal customer credit rating (CCR) to manage the credit quality of financial assets. To enable wider comparisons, ANZ
New Zealand’s CCRs are mapped to external rating agency scales as follows:
Credit quality
description

Internal CCR

ANZ New Zealand customer requirements
Moody’s
Rating
S&P Global
Ratings
Strong CCR 0+ to 4- Demonstrated superior stability in their operating and financial
performance over the long-term, and whose earnings capacity is
not significantly vulnerable to foreseeable events.
Aaa – Baa3 AAA – BBB-
Satisfactory CCR 5+ to 6- Demonstrated sound operational and financial stability over the
medium to long-term even though some may be susceptible to
cyclical trends or variability in earnings.
Ba1 – B1 BB+ – B+
Weak CCR 7+ to 8= Demonstrated some operational and financial instability, with
variability and uncertainty in profitability and liquidity projected to
continue over the short and possibly medium term.
B2 – Caa B - CCC
Defaulted CCR 8- to 10 When doubt arises as to the collectability of a credit facility, the
financial instrument (or ‘the facility’) is classified as defaulted.
n/a n/a

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

20
Net loans and advances

Stage 3

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
As at 31 March 2021 NZ$m NZ$m NZ$m NZ$m NZ$m
Strong
106,841 2,096 - - 108,937
Satisfactory
21,990 3,920 - - 25,910
Weak
523 1,687 - - 2,210
Defaulted
- - 685 316 1,001
Subtotal 129,354 7,703 685 316 138,058
Allowance for ECL
(150) (328) (62) (77) (617)
Net loans and advances at amortised cost 129,204 7,375 623 239 137,441
Coverage ratio 0.12% 4.26% 9.05% 24.37% 0.45%
Unearned income
(23)
Capitalised brokerage and other origination costs
368
Net carrying amount 137,786

As at 30 September 2020
Strong 98,495 5,524 - - 104,019
Satisfactory 21,470 4,581 - - 26,051
Weak 406 1,736 - - 2,142
Defaulted - - 810 363 1,173
Subtotal
120,371 11,841 810 363 133,385
Allowance for ECL (161) (347) (80) (107) (695)
Net loans and advances at amortised cost
120,210 11,494 730 256 132,690
Coverage ratio
0.13% 2.93% 9.88% 29.48% 0.52%
Unearned income (25)
Capitalised brokerage and other origination costs 319
Net carrying amount
132,984

Off-balance sheet commitments - undrawn and contingent facilities

Stage 3

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
As at 31 March 2021 NZ$m NZ$m NZ$m NZ$m NZ$m
Strong
24,923 194 - - 25,117
Satisfactory
3,848 1,160 - - 5,008
Weak
19 140 - - 159
Defaulted
- - 31 35 66
Gross undrawn and contingent facilities 28,790 1,494 31 35 30,350
Allowance for ECL included in other provisions (refer to Note 9)
(71) (51) (3) (19) (144)
Net undrawn and contingent facilities 28,719 1,443 28 16 30,206
Coverage ratio 0.25% 3.41% 9.68% 54.29% 0.47%

As at 30 September 2020
Strong 25,275 302 - - 25,577
Satisfactory 3,949 974 - - 4,923
Weak 27 179 - - 206
Defaulted - - 19 41 60
Gross undrawn and contingent facilities 29,251 1,455 19 41 30,766
Allowance for ECL included in other provisions (refer to Note 9) (79) (55) (3) (22) (159)
Net undrawn and contingent facilities
29,172 1,400 16 19 30,607
Coverage ratio
0.27% 3.78% 15.79% 53.66% 0.52%

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

21
12. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Financial assets and financial liabilities carried at fair value on the balance sheet
ANZ New Zealand categorises financial assets and financial 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 the 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; and
• Level 3 – valuations where significant unobservable inputs are used to measure the fair value of the asset or liability.
The table below summarises the attribution of financial instruments carried at fair value to the fair value hierarchy:

Fair value measurements

Quoted market price
(Level 1)
Using observable inputs
(Level 2)
Using unobservable
inputs (Level 3)
Total
31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Assets

Trading securities
8,854
8,848
846
3,949
-
-
9,700
12,797
Derivative financial instruments
10
8
12,208
9,745
2
3
12,220
9,756
Investment securities
12,045
9,892
-
-
1
1
12,046
9,893
Total 20,909
18,748
13,054
13,694
3
4
33,966
32,446
Liabilities

Deposits and other borrowings
-
-
3,543
1,748
-
-
3,543
1,748
Derivative financial instruments
19
4
11,010
8,162
-
-
11,029
8,166
Other financial liabilities
598
158
-
-
-
-
598
158
Total 617
162
14,553
9,910
-
-
15,170
10,072

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 financial 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 a yield curve
appropriate for the remaining term to maturity.

Carrying amount Fair value
31 Mar 21 30 Sep 20 31 Mar 21 30 Sep 20
NZ$m NZ$m NZ$m NZ$m
Financial assets

Net loans and advances
1

137,786
132,984
138,202
133,592
Total

137,786 132,984 138,202 133,592
Financial liabilities

Deposits and other borrowings
2

128,179
126,249
128,436
126,498
Debt issuances
1

20,153
23,827
20,421
24,049
Total

148,332 150,076 148,857 150,547
1 Fair value hedging is applied to certain financial instruments within these categories. The resulting fair value adjustments mean that the carrying value differs from the amortised cost.
2 Excludes commercial paper (Note 8 deposits and other borrowings) designated at fair value through profit or loss.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

22
13. COMMITMENTS AND CONTINGENT LIABILITIES

31 Mar 21 30 Sep 20
Credit related commitments and contingencies NZ$m NZ$m
Contract amount of:

Undrawn facilities
27,467
28,023
Guarantees and letters of credit
1,298
1,309
Performance related contingencies
1,585
1,434
Total 30,350
30,766

ANZ New Zealand 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 to customers, 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 ANZ New Zealand. Where relevant, expert legal advice has been
obtained and, in the light of such advice, provisions (refer to Note 9 other provisions) and/or disclosures as deemed appropriate have been made. In
some instances 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 seriously the interests of ANZ New Zealand.
Regulatory and customer exposures
In recent years there has been an increase in the number of matters on which ANZ New Zealand engages with its regulators. There have also been
significant increases in the nature and scale of regulatory investigations and reviews, civil and criminal enforcement actions (whether by court action
or otherwise), formal and informal inquiries, regulatory supervisory activities and the quantum of fines issued by regulators, particularly against
financial institutions both in New Zealand and globally. ANZ New Zealand has received various notices and requests for information from its regulators
as part of both industry-wide and ANZ New Zealand-specific reviews, and has also made disclosures to its regulators at its own instigation. The nature
of these interactions can be wide ranging and, for example, may include a range of matters including responsible lending practices, regulated lending
financial transactions, product suitability and distribution, interest and fees and the entitlement to charge them, customer remediation, wealth advice,
insurance distribution, pricing, competition, conduct in financial markets and financial transactions, capital market transactions, anti-money laundering
and counter-terrorism financing obligations, reporting and disclosure obligations and product disclosure documentation. 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 and total costs associated with such reviews and possible exposures remain uncertain.
Reviews under section 95 of the Reserve Bank of New Zealand Act 1989 (RBNZ Act)
On 5 July 2019, the RBNZ issued a notice under section 95 of the RBNZ Act requiring the Bank to obtain two external reviews: the first on the Bank’s
compliance with certain aspects of the RBNZ Banking Supervision Handbook document Capital Adequacy Framework (Internal Models Based Approach)
(BS2B) (Capital Adequacy Review); and the second on the effectiveness of the Bank’s directors’ attestation and assurance framework (Attestation Review).
The Attestation Review and the Capital Adequacy Review were completed in December 2019 and April 2020, respectively. The Bank is committed to
implementing the recommendations and addressing the issues raised by these reviews.
Due to the impacts of the COVID-19 pandemic, the RBNZ extended the time period for addressing the Attestation Review recommendations, subject
to the Bank obtaining external interim reviews of the remediation activities being undertaken in respect of the Attestation Review and the Capital
Adequacy Review, assessed as at March 2021, with final reviews being assessed as at September 2021 for the Attestation review and December 2021
for the Capital Models review. The interim review of the Attestation Review is in the process of being finalised. The interim review of the Capital
Adequacy Review has been completed. The external reviewer has reported that the Bank has made significant progress to address non-compliance
issues and improvement areas identified by the Capital Adequacy Review, and the programme of work is expected to be completed by December
2021.
The Attestation Review and the Capital Adequacy Review have highlighted the need for a broader programme of improving the Bank's processes
covered by those reviews, and this programme is now in its implementation phase.
Warranties and indemnities
ANZ New Zealand has provided warranties, indemnities and other commitments in favour of the purchaser in connection with various disposals of
businesses and assets and other transactions, covering a range of matters and risks. It is exposed to potential claims under those warranties,
indemnities and commitments.

14. SUBSEQUENT EVENTS
On 31 March 2021, the RBNZ announced that it was easing the restrictions preventing banks from paying any dividends on ordinary shares and
redeeming non-common equity tier 1 capital instruments that were put in place in April 2020. The changes to the dividend restrictions allow the Bank
to pay up to a maximum of 50% of its earnings as dividends. The 50% dividend restriction will remain in place until 1 July 2022 at which point the
RBNZ intends to remove the restrictions entirely, subject to no significant worsening in economic conditions. The Bank’s conditions of registration
were amended on 29 April 2021 to bring the 50% dividend restriction into effect.

23

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24
REGISTERED BANK
DISCLOSURES

This section contains the additional disclosures required by the
Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014.

Section Order reference Page
B1. General disclosures Schedule 3 25
B2. Additional financial disclosures Schedule 5 26
B3. Asset quality Schedule 7 31
B4. Credit and market risk exposures and capital adequacy Schedule 9 33
B5. Insurance business Schedule 12 33

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

REGISTERED BANK DISCLOSURES

25
B1. GENERAL DISCLOSURES
Guarantees
No material obligations of the NZ Branch are guaranteed as at 7 May 2021.
Covered bonds issued by ANZ New Zealand (Int’l) Limited, a subsidiary of the Bank, are guaranteed. Refer to page 18 for further details.
Changes in the Ultimate Parent Bank’s Board of Directors and the New Zealand Chief Executive Officer – NZ Branch
David Gonski retired as an Independent Non-Executive Director of the Ultimate Parent Bank on 28 October 2020. There have been no other changes
to the Directors of the Ultimate Parent Bank since 30 September 2020, the balance date of the last full year disclosure statement.
Chris O’Neale was appointed as the New Zealand Chief Executive Officer – NZ Branch on 25 April 2021, following Penny Dell’s appointment as
Treasurer of the Bank.
Auditors
KPMG, 18 Viaduct Harbour Avenue, Auckland, New Zealand.
Pending proceedings or arbitration
A description of any pending legal proceedings or arbitration concerning any member of ANZ New Zealand that may have a material adverse effect
on the NZ Branch or ANZ New Zealand is included in Note 13 commitments and contingent liabilities.
Credit rating
As at 7 May 2021 the Ultimate Parent Bank has three credit ratings, which are applicable to its long-term senior unsecured obligations which are
payable in New Zealand in New Zealand dollars.
The Ultimate Parent Bank’s credit ratings are:
Rating agency Credit rating Qualification
S&P Global Ratings
AA- Outlook Negative
Fitch Ratings
A+ Outlook Stable
Moody’s Investors Service
Aa3 Outlook Stable
Other material matters
RBNZ review of capital requirements
Between May 2017 and December 2019, the RBNZ conducted a comprehensive review of the capital adequacy framework applying to New Zealand
locally incorporated registered banks. The RBNZ's final decisions on the capital review as they relate to the Bank are set out below. In response to the
COVID-19 pandemic, the RBNZ delayed the start date for the increased capital requirements to support credit availability. The new regime is expected
to be implemented in stages from 1 July 2021.
• The Banking Group’s total capital requirement will increase to 18% of RWA, including tier 1 capital of at least 16% of RWA. Up to 2.5% of the tier 1
capital requirement can be made up of additional tier 1 (AT1) capital, with the remainder of the tier 1 requirement made up of common equity
tier 1 (CET1) capital. The increased capital ratios requirement will be implemented progressively from 1 July 2022 to 1 July 2028. AT1 capital must
consist of perpetual preference shares, which may be redeemable. The total capital requirement can also include tier 2 capital of up to 2% of
RWA. Tier 2 capital must consist of long-term subordinated debt.
• The tier 1 capital requirement will include a CET1 prudential capital buffer of 9% of RWA. This will include: a 2% domestic, systemically important
bank capital buffer; a 1.5% 'early-set' counter-cyclical capital buffer, which can be temporarily reduced to 0% following a financial crisis, or
temporarily increased to prevent asset price bubbles from developing; and a 5.5% capital conservation buffer.
• Contingent capital instruments will no longer be treated as eligible regulatory capital. As at 31 March 2021, the Bank had approximately
NZ$2,741 million of AT1 instruments that will progressively lose eligible regulatory capital treatment over a seven year transition period from 1
July 2021 to 1 July 2028.
• As an internal ratings based approach accredited bank, the Banking Group’s RWA outcomes will be increased to approximately 90% of what
would be calculated under the standardised approach. This will be achieved by applying an 85% output floor from 1 January 2022, and
increasing the credit RWA scalar from 1.06 to 1.20 from 1 October 2022.
• The Banking Group will be required to report RWA, and resulting capital ratios, using both the internal models and the standardised approaches
from 1 January 2022.
The RBNZ’s reforms will result in a material increase in the level of capital that the Banking Group is required to hold, although the amount of the
increase is currently uncertain. The reforms could have a material impact on the Banking Group and its business, including on its capital allocation and
business planning.
Since 30 September 2018, CET1 capital has increased by NZ$3.8 billion to NZ$12.9 billion at 31 March 2021 and total capital has increased by NZ$3.8
billion to NZ$15.7 billion, in preparation for these changes and due to the RBNZ’s COVID-19 related dividend restrictions.
Financial statements of the Ultimate Parent Bank and Overseas Banking Group
Copies of the most recent publicly available financial statements of the Ultimate Parent Bank and Overseas Banking Group will be provided
immediately, free of charge, to any person requesting a copy where request is made at the Registered Office. The most recent publicly available
financial statements for the Ultimate Parent Bank and Overseas Banking Group can also be accessed at the website shareholder.anz.com.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

REGISTERED BANK DISCLOSURES

26
B2. ADDITIONAL FINANCIAL DISCLOSURES
Additional information on the balance sheet

As at 31 March 2021

NZ$m
Total interest earning and discount bearing assets
166,775
Total interest and discount bearing liabilities
135,300
Total amounts due from related entities
4,376
Total amounts due to related entities
7,620
Total liabilities of the NZ Branch less amounts due to related entities
1,081

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 and conditions of
the collateral agreements are included in the standard Credit Support Annex that forms part of the International Swaps and Derivatives 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.
• Specified residential mortgages provided as security for notes and bonds issued to investors as part of the Bank’s covered bond programme.
The carrying amounts of assets pledged as security are as follows:
As at 31 March 2021 NZ$m
Securities sold under agreements to repurchase
1,113
Residential mortgages pledged as security for covered bonds
11,696

Additional information on the income statement
The amounts of net trading gains or losses and other fair value adjustments are included in Note 2 other operating income. ANZ New Zealand 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, and all other items of other income (all in Note 2 other operating income).

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

27
Additional information on concentrations of credit risk
Analysis of financial assets by industry 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 is shown separately as
required by the Order.

Composition of financial instruments that give rise to credit risk by industry group are presented below:

Loans and
advances
Other
financial
assets
Off-balance
sheet credit
related
commitments Total
As at 31 March 2021 NZ$m NZ$m NZ$m NZ$m
New Zealand residents
Agriculture
16,743 57 1,107 17,907
Forestry and fishing, agriculture services
652 6 145 803
Manufacturing
2,437 167 2,138 4,742
Electricity, gas, water and waste services
1,066 486 1,838 3,390
Construction
1,168 16 864 2,048
Wholesale trade
1,207 86 1,790 3,083
Retail trade and accommodation
2,380 22 865 3,267
Transport, postal and warehousing
817 131 712 1,660
Finance and insurance services
893 8,625 1,589 11,107
Public administration and safety
1

315 14,506 836 15,657
Rental, hiring & real estate services
37,252 1,360 2,324 40,936
Professional, scientific, technical, administrative and support services
872 8 458 1,338
Households
68,278 165 13,680 82,123
All other New Zealand residents
2

1,987 112 1,898 3,997
Subtotal
136,067 25,747 30,244 192,058
Overseas

Finance and insurance services
123 15,948 106 16,177
Households
1,192 3 - 1,195
All other non-NZ residents
676 14 - 690
Subtotal 1,991 15,965 106 18,062
Gross subtotal 138,058 41,712 30,350 210,120
Allowance for ECL
(617) - (144) (761)
Subtotal 137,441 41,712 30,206 209,359
Unearned income
(23) - - (23)
Capitalised brokerage and other origination costs
368 - - 368
Maximum exposure to credit risk 137,786 41,712 30,206 209,704
1 Public administration and safety includes exposures to local government administration and central government administration, defence and public safety.
2 Other includes exposures to mining, information media and telecommunications, education and training, health care and social assistance and arts, recreation and other services.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

REGISTERED BANK DISCLOSURES

28
Additional information on concentrations of funding
Analysis of funding liabilities by industry is based on ANZSIC codes. The significant categories shown are the level one NZSIOC.

As at 31 March 2021 Note NZ$m
Funding composition

Customer deposits 8
122,786
Wholesale funding

Debt issuances
20,153
Certificates of deposit and commercial paper
4,950
Other borrowings
3,986
Total wholesale funding 29,089
Total funding

151,875

Customer deposits by industry - New Zealand residents

Agriculture, forestry and fishing
4,264
Manufacturing
2,764
Construction
2,951
Wholesale trade
2,487
Retail trade and accommodation
2,287
Financial and insurance services
12,958
Rental, hiring and real estate services
4,365
Professional, scientific, technical, administrative and support services
6,331
Public administration and safety
1,916
Arts, recreation and other services
2,179
Households
65,697
All other New Zealand residents
1

5,072

113,271
Customer deposits by industry - overseas

Households
8,803
All other non-NZ residents
712

9,515
Total customer deposits
122,786
Wholesale funding (financial and insurance services industry)

New Zealand
4,342
Overseas 24,747
Total wholesale funding
29,089
Total funding

151,875

Concentrations of funding by geography
New Zealand
117,613
Australia 4,432
United States
11,836
Europe 11,170
Other countries
6,824
Total funding

151,875
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.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

29
Additional information on interest rate sensitivity
The following table represents the interest rate sensitivity of ANZ New Zealand's assets, liabilities and off-balance sheet instruments by showing the
periods in which these instruments may reprice, that is, when interest rates applicable to each asset or liability can be changed.

Total
Up to
3 months
Over 3 to
6 months
Over 6 to
12 months
Over 1 to
2 years
Over
2 years
Not bearing
interest
1

As at 31 March 2021 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Assets
Cash and cash equivalents
5,579 5,327 - - - - 252
Settlement balances receivable
447 - - - - - 447
Collateral paid
1,380 1,380 - - - - -
Trading securities
9,700 1,331 133 175 782 7,279 -
Derivative financial instruments
12,220 - - - - - 12,220
Investment securities
12,046 439 - 486 595 10,525 1
Net loans and advances
137,786 64,905 19,710 33,721 15,359 4,628 (537)
Other financial assets
551 - - - - - 551
Total financial assets
179,709 73,382 19,843 34,382 16,736 22,432 12,934
Liabilities
Settlement balances payable
2,830 1,630 - - - - 1,200
Collateral received
1,202 1,202 - - - - -
Deposits and other borrowings
131,722 84,727 13,872 7,247 2,986 2,608 20,282
Derivative financial instruments
11,029 - - - - - 11,029
Debt issuances
20,153 2,630 2,616 3,102 1,350 10,455 -
Lease liabilities
277 12 12 23 86 144 -
Other financial liabilities
891 598 - - - - 293
Total financial liabilities
168,104 90,799 16,500 10,372 4,422 13,207 32,804
Hedging instruments - 62,919 (66,171) 1,978 (2,985) 4,259 -
Interest sensitivity gap
11,605 45,502 (62,828) 25,988 9,329 13,484 (19,870)
1 Excludes non-coupon bearing discount financial assets and financial liabilities which are shown as repricing on their maturity date.

Additional information on liquidity risk
Maturity analysis of financial liabilities
The table below provides residual contractual maturity analysis of financial liabilities at 31 March 2021 within relevant maturity groupings. All
outstanding debt issuances are profiled on the earliest date on which ANZ New Zealand may be required to pay. The amounts represent principal and
interest cash flows – so they may differ from equivalent amounts reported on the balance sheet.

On demand
Less than
3 months
3 to 12
months
1 to 5
years
After
5 years Total
As at 31 March 2021 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Settlement balances payable
2,510 322 - - - 2,832
Collateral received
- 1,202 - - - 1,202
Deposits and other borrowings
79,522 24,525 22,028 5,733 964 132,772
Derivative financial liabilities (trading)
- 8,890 - - - 8,890
Debt issuances
1

- 1,038 5,438 10,826 3,639 20,941
Lease liabilities
- 13 39 169 81 302
Other financial liabilities
- 42 7 226 492 767
Derivative financial instruments
(balance sheet management)

- gross inflows
- 1,381 2,946 4,232 313 8,872
- gross outflows
- (1,400) (2,960) (4,302) (276) (8,938)
1 Any callable wholesale debt instruments have been included at their next call date.

At 31 March 2021, NZ$10 million of ANZ New Zealand’s NZ$14 million of non-credit related commitments and all NZ$30,350 million of its credit
related commitments and contingent liabilities mature in less than 1 year, based on the earliest date on which ANZ New Zealand may be required to
pay.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

REGISTERED BANK DISCLOSURES

30
Liquidity portfolio
ANZ New Zealand holds a diversified portfolio of cash and high quality liquid securities to support liquidity risk management. The size of ANZ New
Zealand’s liquidity portfolio is based on the amount required to meet its internal and regulatory liquidity scenario metrics.

As at 31 March 2021 NZ$m
Cash and balances with central banks
4,939
Certificates of deposit
380
Central and local government bonds
11,997
Government treasury bills
329
Other bonds
7,853
Total liquidity portfolio 25,498

Assets held in ANZ New Zealand’s liquidity portfolio include short term cash held with the RBNZ, New Zealand Government securities, securities
issued by supranational agencies, securities issued by highly rated banks and securities issued by State Owned Enterprises, Local Authorities and
highly rated New Zealand domestic corporates. These assets would be accepted as collateral by the RBNZ in repurchase transactions. At 31 March
2021, ANZ New Zealand would be eligible to enter into repurchase transactions with a value of NZ$20,559 million. The Bank also held unencumbered
internal residential mortgage backed securities (RMBS) which would entitle ANZ New Zealand to enter into repurchase transactions with a value of
NZ$8,629 million at 31 March 2021.

Overseas Banking Group Profitability and Size

31 Mar 21
Net profit for the six months ended 31 March 2021 (AUDm)
2,943
Net profit after tax for the 12 months ended 31 March 2021 as a percentage of average total assets
0.47%
Total assets (AUDm)
1,018,339
Percentage change in total assets in the 12 months to 31 March 2021
-11.45%

Reconciliation of mortgage related amounts

As at 31 March 2021

Note NZ$m
Term loans - housing
1
5
95,387
Less: fair value hedging adjustment
(3)
Less: housing loans made to corporate customers
(1,682)
On-balance sheet residential mortgage exposures (per LVR analysis) B4
93,702
Add: off-balance sheet residential mortgage exposures (per LVR analysis) B4

8,925
Total residential mortgage exposures (per LVR analysis)
B4

102,627
1 Term loans – housing includes loans secured over residential property for owner-occupier, residential property investment and business purposes.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

31
B3. ASSET QUALITY
This section should be read in conjunction with the estimates, assumptions and judgements relating to COVID-19 and ECL included in Note 1, Note 6
and Note 11 to the financial statements.

Movements in components of loss allowance – total

Stage 3

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
Net loans and advances - total NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2020 161 347 80 107 695
Transfer between stages
22 (20) (3) 1 -
New and increased provisions (net of collective provision releases)
(33) 1 (15) 38 (9)
Write-backs
- - - (36) (36)
Recoveries of amounts previously written off
- - - (10) (10)
Credit impairment charge
(11) (19) (18) (7) (55)
Bad debts written-off (excluding recoveries)
- - - (28) (28)
Add back recoveries of amounts previously written off
- - - 10 10
Discount unwind
- - - (5) (5)
As at 31 March 2021 150 328 62 77 617

Off-balance sheet credit related commitments - total
As at 1 October 2020 79 55 3 22 159
Transfer between stages
3 (3) - - -
New and increased provisions (net of collective provision releases)
(11) (1) - (3) (15)
Credit impairment charge
(8) (4) - (3) (15)
As at 31 March 2021 71 51 3 19 144

Impacts of changes in gross financial assets on loss allowances - total

Gross loans and advances - total
As at 1 October 2020 120,371 11,841 810 363 133,385
Net transfers in to each stage
3,156 147 35 8 3,346
Amounts drawn from new or existing facilities
22,638 535 61 62 23,296
Additions
25,794 682 96 70 26,642
Net transfers out of each stage
(189) (3,101) (55) (1) (3,346)
Amounts repaid
(16,622) (1,719) (166) (88) (18,595)
Deletions
(16,811) (4,820) (221) (89) (21,941)
Amounts written off
- - - (28) (28)
As at 31 March 2021 129,354 7,703 685 316 138,058
Loss allowance as at 31 March 2021 150 328 62 77 617

Off-balance sheet credit related commitments - total
As at 1 October 2020 29,251 1,455 19 41 30,766
Net transfers in to each stage
15 121 7 1 144
New and increased facilities and drawn amounts repaid
4,656 173 9 3 4,841
Additions
4,671 294 16 4 4,985
Net transfers out of each stage
(129) (15) - - (144)
Reduced facilities and amounts drawn
(5,003) (240) (4) (10) (5,257)
Deletions
(5,132) (255) (4) (10) (5,401)
As at 31 March 2021 28,790 1,494 31 35 30,350
Loss allowance as at 31 March 2021 71 51 3 19 144
Explanation of how changes in the gross carrying amounts of gross loans and advances contributed to changes in loss allowance
Overall, loss allowances are 0.45% of gross balances as at 31 March 2021, down from 0.52% as at 30 September 2020. The NZ$93 million (10.9%)
decrease in loss allowances was driven by a decrease in the proportion of gross balances in Stage 2 and Stage 3, and changes in the forward looking
economic scenarios as described in Note 6 to the financial statements.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

REGISTERED BANK DISCLOSURES

32
Past due assets and other asset quality information
Total
As at 31 March 2021 NZ$m
Past due assets
Less than 30 days past due 801
At least 30 days but less than 60 days past due 356
At least 60 days but less than 90 days past due 112
At least 90 days past due
390
Total past due but not individually impaired 1,659
Other asset quality information
Undrawn facilities with impaired customers

35
Other assets under administration

4

ANZ New Zealand does not have any loans and advances designated at fair value.

Overseas Banking Group asset quality

As at 31 March 2021

Gross impaired assets (AUDm)
2,473
Gross impaired assets as a percentage of total assets
0.2%
Individual provision (AUDm)
809
Individual provision as a percentage of gross impaired assets
32.7%
Collective provision (AUDm)
4,285

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND UNAUDITED

33
B4. CREDIT AND MARKET RISK EXPOSURES AND CAPITAL ADEQUACY
APRA Basel III capital ratios

Overseas Banking Group
Ultimate Parent Bank
(Extended Licensed Entity)
As at 31 March 2021 2020 2021 2020
Common equity tier 1 capital
12.4%
10.8%
12.2%
10.6%
Tier 1 capital
14.3%
12.5%
14.2%
12.6%
Total capital
18.3%
15.5%
18.6%
15.8%

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 small portfolios
(mainly retail and local corporates in Pacific, and local corporates in Asia) 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 2021 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 31 March 2021. The Overseas Banking Group’s Pillar 3
disclosure document for the quarter ended 31 March 2021, 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.
Market risk
ANZ New Zealand’s aggregate market risk exposures below have been calculated in accordance with the RBNZ document BS2A. The peak end-of-day
market risk exposures are for the six months ended 31 March 2021.

Implied risk weighted
exposure Notional capital charge
Period end Peak Period end Peak
As at 31 March 2021 NZ$m NZ$m NZ$m NZ$m
Interest rate risk
5,759 11,141 461 891
Foreign currency risk
72 113 6 9
Equity risk
1 1 - -
Additional mortgage information
As required by RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by ANZ New Zealand'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
Off-balance
sheet Total
As at 31 March 2021 NZ$m NZ$m NZ$m
LVR range
Does not exceed 60%
46,060 6,261 52,321
Exceeds 60% and not 70%
19,668 1,218 20,886
Exceeds 70% and not 80%
21,963 1,063 23,026
Does not exceed 80%
87,691 8,542 96,233
Exceeds 80% and not 90%
4,336 148 4,484
Exceeds 90%
1,675 235 1,910
Total 93,702 8,925 102,627

B5. INSURANCE BUSINESS
As at 31 March 2021, ANZ New Zealand does not conduct any insurance business.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND

DIRECTORS' AND NEW ZEALAND CHIEF EXECUTIVE OFFICER'S STATEMENT

34
As at the date on which this Disclosure Statement is signed, after due enquiry, each Director of the Ultimate Parent Bank and the Chief Executive
Officer – NZ Branch believes that:
• The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements (Overseas Incorporated
Registered Banks) Order 2014; and
• The Disclosure Statement is not false or misleading.
Over the six months ended 31 March 2021, after due enquiry, each Director of the Ultimate Parent Bank and the Chief Executive Officer – NZ Branch
believes that:
• The Ultimate Parent Bank has complied in all material respects with each condition of registration that applied during that period
1
; and
• The NZ Branch and the Bank had systems in place to monitor and control adequately the material risks of Relevant Members of ANZ New
Zealand including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and other business risks, and that
those systems were being properly applied.
1. In accordance with the Order, Australia and New Zealand Banking Group Limited - ANZ New Zealand has complied in all material respects with each of its conditions of registration that
applied during the period if the RBNZ has not published any information about a breach on its website, and has not notified Australia and New Zealand Banking Group Limited - ANZ New
Zealand of any material breach.

Signed by the Chief Executive Officer – NZ Branch

Chris O‘Neale
Chief Executive Officer – NZ Branch
7 May 2021

Signed on behalf of all the Directors of the Ultimate Parent Bank

Antonia Watson
Responsible Person
7 May 2021

on behalf of the Directors of the Ultimate Parent Bank:
Ilana Atlas, AO
Paula Dwyer
Shayne Elliott
Jane Halton, AO PSM
Rt Hon Sir John Key, GNZM AC
Graeme Liebelt
John Macfarlane
Paul O’Sullivan

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND

INDEPENDENT AUDITOR’S REVIEW REPORT

35

TO THE DIRECTORS OF A USTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

REPORT ON THE HALF YEAR DISCLOSURE STATEMENT

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 New Zealand, 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 ANZ New Zealand in relation to review of regulatory returns, internal controls reports, prospectus
assurance, agreed upon procedures and other assurance engagements. Subject to certain restrictions, partners and employees of our firm may also
deal with ANZ New Zealand on normal terms within the ordinary course of trading activities of the business of ANZ New Zealand. These matters have
not impaired our independence as reviewer of ANZ New Zealand. The firm has no other relationship with, or interest in, ANZ New Zealand.
RESPONSIBILITIES OF THE DIRECTORS FOR THE HALF YEAR DISCLOSURE STATEMENT
The Directors, on behalf of ANZ New Zealand, are responsible for:
• the preparation and fair presentation of the half year disclosure statement in accordance with IAS 34, NZ IAS 34 and Schedules 3, 5, 7, 12 and 14
of the Order;
• the preparation and fair presentation of ANZ New Zealand’s disclosures in regards to credit and market risk exposures and capital adequacy in
accordance with Schedule 9 of the Order;
• implementing necessary internal controls 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 attention that causes us to believe that:
• the interim financial statements do not present fairly, in all material respects, ANZ New Zealand’s financial position as at 31 March 2021 and its
financial performance and cash flows for the six 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 B2, B3, and B5 do not, fairly state, in all material respects, the matters to which it relates in accordance

CONCLUSION
Based on our review of the interim financial statements and registered bank disclosures (together referred to as ‘the half year disclosure
statement’) of the New Zealand business of Australia and New Zealand Banking Group Limited and its subsidiaries (ANZ New Zealand) on pages 4
to 33, nothing has come to our attention that causes us to believe that:
• the interim financial statements on pages 4 to 22 do not present fairly in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34
Interim Financial Reporting, in all material respects, ANZ New Zealand’s financial position as at 31 March 2021 and its financial performance
and cash flows for the six month period ended on that date;
• the registered bank disclosures in sections B2, B3 and B5 disclosed in accordance with Schedules 5, 7, 12 and 14 of the Registered Bank
Disclosure Statements (Overseas 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 with those schedules; and
• the registered bank disclosures relating to credit and market risk exposures and capital adequacy in section B4 is not, in all material respects,
disclosed in accordance with Schedule 9 of the Order.
We have completed a review of the accompanying half year disclosure statement which comprises:
• the interim financial statements formed of:
• the consolidated balance sheet as at 31 March 2021;
• the consolidated income statement, statements of comprehensive income, changes in equity and cash flows for the six month period
then ended; and
• notes, including a summary of significant accounting policies and other explanatory information.
• the registered bank disclosures prescribed in Schedules 5, 7, 9, 12 and 14 of the Order.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND

INDEPENDENT AUDITOR’S REVIEW REPORT

36
with Schedules 5, 7, 12 and 14 of the Order; and
• the registered bank disclosures relating to credit and market risk exposures and capital adequacy in section B4 is not, in all material respects,
disclosed in accordance with Schedule 9 of the Order.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with 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.
USE OF THE INDEPENDENT REVIEW REPORT
This independent review report is made solely to the Directors of ANZ New Zealand. Our review work has been undertaken so that we might state to
the Directors 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 Directors as a body for our work, this independent review
report, or any of the opinions we have formed.

KPMG
Auckland
7 May 2021

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ANZ Bank New Zealand Disclosure Statement Further information on ANZ’s DRP Neutralisation

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