ANZ NZ Disclosure Statement

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

6 May 2022

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





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


Australia and New Zealand Banking Group Limited (ANZ) today released its ANZ New
Zealand Registered Bank Disclosure Statement for the six months ended 31 March 2022.

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 2022
NUMBER 46 | ISSUED MAY 2022

2
CONTENTS

Glossary of terms 2





DISCLOSURE STATEMENT

Interim Financial Statements 3
Condensed consolidated interim financial statements 4
Notes to the interim financial 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 term 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 reporting 10






Financial and non-financial assets


5. Net loans and advances 11




6. Allowance for expected credit losses 12

7. Goodwill and other intangible assets 16




Financial and non-financial liabilities




8. Deposits and other borrowings 18



9. Other provisions 18



10. Debt issuances 18







Financial instrument disclosures




11. Credit risk 19




12. Fair value of financial assets and financial liabilities 21









Other disclosures




13. Commitments and contingent liabilities 22




14. Subsequent events 23

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

INTERIM FINANCIAL STATEMENTS

INCOME STATEMENT

The notes appearing on pages 8 to 23 form an integral part of these interim financial statements

4

2022 2021
For the six months ended 31 March Note

NZ$m NZ$m
Interest income
2,458 2,338
Interest expense
(697)
(677)
Net interest income

1,761
1,661
Other operating income 2 563 327
Operating income

2,324
1,988
Operating expenses 3
(826)
(772)
Profit before credit impairment and income tax

1,498
1,216
Credit impairment release 6
20
70
Profit before income tax
1,518 1,286
Income tax expense
(422)
(356)
Profit for the period

1,096
930



STATEMENT OF COMPREHENSIVE INCOME
2022 2021
For the six months ended 31 March NZ$m NZ$m
Profit for the period
1,096 930




Other comprehensive income







Items that will not be reclassified subsequently to profit or loss 3
43


Items that may be reclassified subsequently to profit or loss



Reserve movements:
Unrealised losses recognised directly in equity
(58)
(3)
Realised losses / (gains) transferred to the income statement
(29)
4

Income tax attributable to the above items 23 (11)
Other comprehensive income after tax
(61)
33
Total comprehensive income for the period 1,035 963

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




The notes appearing on pages 8 to 23 form an integral part of these interim financial statements

5
BALANCE SHEET


31 Mar 22 30 Sep 21
As at Note NZ$m NZ$m
Assets



Cash and cash equivalents 11,178 7,844
Settlement balances receivable
913
237
Collateral paid 612 537
Trading securities
7,818
9,585
Derivative financial instruments
8,938
9,283
Investment securities 10,291 11,926
Net loans and advances 5
146,397
141,074
Investments in associates
5
5
Current tax assets 44 -
Deferred tax assets
328
390
Goodwill and other intangible assets 7 3,103 3,091
Premises and equipment
485
509
Other assets
609
591
Total assets 190,721 185,072
Liabilities



Settlement balances payable
4,551
2,663
Collateral received 1,070 738
Deposits and other borrowings 8
141,420
135,986
Derivative financial instruments 8,326 7,680
Current tax liabilities
-
161
Payables and other liabilities
1,258
1,483
Employee entitlements 132 138
Other provisions 9
250
295
Debt issuances 10
18,483
20,852
Total liabilities (excluding head office account)

175,490
169,996
Net assets (excluding head office account)

15,231
15,076
Equity
Share capital and initial head office account
11,055
11,055
Reserves
7
70
Retained earnings 4,169 3,951
Total equity & head office account

15,231
15,076

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

INTERIM FINANCIAL STATEMENTS


The notes appearing on pages 8 to 23 form an integral part of these interim financial statements

6
CASH FLOW STATEMENT



2022 2021
For the six months ended 31 March NZ$m NZ$m
Profit after income tax
1,096 930




Adjustments to reconcile to net cash flows from operating activities:



Depreciation and amortisation 63 63
Loss on sale and impairment of premises and equipment
1
1
Net derivatives/foreign exchange adjustment
(103)
(765)
Other non-cash movements
(8) 117




Net (increase)/decrease in operating assets:


Collateral paid
(75)
14
Trading securities
1,767 3,097
Net loans and advances
(5,323)
(4,802)
Other assets
(676)
(124)



Net increase/(decrease) in operating liabilities:
Deposits and other borrowings (excluding items included in financing activities)
5,060
3,810
Settlement balances payable
1,888
(78)
Collateral received
332 (73)
Other liabilities
(409)
19
Total adjustments

2,517
1,279
Net cash flows from operating activities
1


3,613
2,209
Cash flows from investing activities



Investment securities:
Purchases
(5,569)
(4,046)
Proceeds from sale or maturity
6,879
1,509
Purchases of investments in associates
- (6)
Other assets
(58)
(17)
Net cash flows from investing activities

1,252
(2,560)
Cash flows from financing activities

Deposits and other borrowings (excluding borrowings from Immediate Parent and Ultimate Parent Bank)
2


500
-
Debt issuances
3



Issue proceeds

2,680
-
Redemptions

(3,753)
(2,307)
Borrowings from Immediate Parent and Ultimate Parent Bank:
4



Loans drawn down

709
910
Repayments

(765)
(898)
Repayment of lease liabilities
(22) (23)
Dividends paid
(880)
-
Net cash flows from financing activities

(1,531) (2,318)
Net change in cash and cash equivalents
3,334
(2,669)
Cash and cash equivalents at beginning of period
7,844
8,248
Cash and cash equivalents at end of period
11,178 5,579

1 Net cash provided by operating activities includes income taxes paid of NZ$542 million (2021: NZ$582 million).
2 Movement in deposits and other borrowings includes repurchase transactions entered into with the RBNZ under the Funding for Lending Programme of NZ$500 million.
3 Movement in debt issuances (Note 10 debt issuances) also includes a NZ$670 million decrease (2021: NZ$1,077 million decrease) from the effect of foreign exchange rates, a NZ$643 million
decrease (2021: NZ$336 million decrease) from changes in fair value hedging instruments and a NZ$17 million increase (2021: NZ$46 million increase) from other changes.
4 Movement in borrowings from Immediate Parent and Ultimate Parent Bank (Note 8 deposit and other borrowings) also includes a NZ$9 million decrease (2021: NZ$54 million decrease)
from the effect of foreign exchange rates, a NZ$61 million decrease (2021: NZ$44 million decrease) from changes in fair value hedging instruments and nil from other changes (2021: NZ$1
million increase).

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




The notes appearing on pages 8 to 23 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 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

As at 1 October 2021 11,055 62 8 3,951 15,076
Profit or loss
- - - 1,096 1,096
Unrealised losses recognised directly in equity - (24) (34) - (58)
Realised losses / (gains) transferred to the income statement
- (31) 2 - (29)
Actuarial gain on defined benefit schemes
- - - 3 3
Income tax credit / (expense) on items recognised directly in equity
- 15 9 (1) 23
Total comprehensive income for the period - (40) (23) 1,098 1,035
Transactions with Immediate Parent Company in its capacity as owner:
Ordinary dividends paid
- - - (880) (880)
Transactions with Immediate Parent Company in its capacity as owner - - - (880) (880)
As at 31 March 2022 11,055 22 (15) 4,169 15,231

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 2021.
On 6 May 2022, 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
We have prepared the financial information in accordance with the historical cost basis - except for the following assets and liabilities which we have
stated at their fair value:
• derivative financial instruments;
• financial instruments measured at fair value through other comprehensive income; and
• financial instruments measured 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.
Whilst the course of the COVID-19 pandemic is moderating and its impact on economic activity and our customers is better understood, the
responses of consumers, business and governments remain uncertain. New external risks are also emerging, including mounting
geopolitical tensions, global supply chain disruptions, the conflict in Ukraine, and commodity price impacts. Thus there remains an elevated
level of estimation uncertainty involved in the preparation of these financial statements.
ANZ New Zealand has made various accounting estimates in these financial statements based on forecasts of economic conditions which
reflect expectations and assumptions at 31 March 2022 about future events considered reasonable in the circumstances. There is a
considerable degree of judgement involved in preparing these estimates. Actual economic conditions are likely to be different from those
forecast since anticipated events frequently do not occur as expected, and the effect of these 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 and recoverable amounts of non-financial assets.
The impact of these uncertainties on each of these accounting estimates is discussed further in the relevant notes in these financial
statements and/or in the relevant notes in the previous full year financial statements. Readers should consider these disclosures in light of
the inherent uncertainties described above.

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




9
2. OTHER OPERATING INCOME
2022 2021
For the six months ended 31 March NZ$m NZ$m
(i) Fee and commission income


Lending fees

13 16
Non-lending fees

341 341
Commissions

16 18
Funds management income
130
131
Fee and commission income
500
506
Fee and commission expense
(242)
(230)
Net fee and commission income 258
276
(ii) Other income



Net trading gains 74 65
Gain on sale of investment securities designated at fair value through other comprehensive income

31 2
Fair value gain / (loss) on hedging activities and financial liabilities designated at fair value

183 (38)
Net foreign exchange earnings and other financial instruments income
288
29
Sale of legacy insurance portfolio
-
14
Release of provisions for UDC Finance Ltd and Paymark Ltd disposal costs
14
-
Other
3
8
Other income

305
51
Other operating income 563 327


3. OPERATING EXPENSES
2022 2021
For the six months ended 31 March NZ$m NZ$m
Personnel



Salaries and related costs
469
421
Superannuation costs
15
14
Other
7
9
Personnel 491 444
Premises
Rent
8
9
Depreciation
41
40
Other
18
20
Premises

67
69
Technology



Depreciation and amortisation
22
23
Subscription licences and outsourced services 76 62
Other 16 18
Technology

114
103
Other



Advertising and public relations
17
17
Professional fees
33
31
Freight, stationery, postage and communication
19
21
Charges from Ultimate Parent Bank
67
53
Other

18 34
Other 154 156
Operating expenses

826
772

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 - Personal, Business 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.
During the year ended 30 September 2021, ANZ New Zealand reorganised into the following business segments: Personal (comprising the Personal
and Funds Management business units), Business, and Institutional. These are intended to better align ANZ New Zealand’s internal business with the
needs of its primary customer groups, home owners and business owners. These changes were implemented from August 2021 and have been
accounted for prospectively. During the six months ended 31 March 2022, there were net movements of approximately NZ$2.0 billion of loans and
advances and NZ$1.4 billion of customer deposits from Business to Personal. Comparative amounts have not been restated because the overall
impact on the financial performance and financial position of the affected segments, Personal and Business, is not considered material.
Personal
Personal provides a full range of banking and wealth management services to consumer and private 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.
Business
Business provides a full range of banking services including small business lending, through our digital, branch and contact centres channels, and
traditional relationship banking and sophisticated financial solutions through dedicated managers. These cover privately owned small, medium and
large enterprises, the agricultural business segment, government and government related entities.
Institutional
The Institutional division services governments, global institutional and corporate customers via the following business units:
• Transaction Banking provides customers with working capital and liquidity solutions including documentary trade, supply chain financing,
commodity financing as well as cash management solutions, deposits, payments and clearing.
• Corporate Finance provides customers with loan products, loan syndication, specialised loan structuring and execution, project and export
finance, debt structuring and acquisition finance and corporate advisory services.
• Markets provide customers with 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.
Personal Business Institutional Other Total
For the six months
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
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
1,024
986
575
503
158
168
4
4
1,761
1,661
Net fee and commission income
- Lending fees
4
7
1
-
8
9
-
-
13
16
- Non-lending fees
196
308
122
5
23
28
-
-
341
341
- Commissions 15 17 - - 1 1 - - 16 18
- Funds management income
130
131
-
-
-
-
-
-
130
131
- Fee and commission expense
(144)
(230)
(98)
-
-
-
-
-
(242)
(230)
Net fee and commission income 201 233 25 5 32 38 - - 258 276
Other income
1
15
-
-
79
75
225
(39)
305
51
Other operating income 202 248 25 5 111 113 225 (39) 563 327
Operating income
1,226
1,234
600
508
269
281
229
(35)
2,324
1,988
Operating expenses
(585)
(547)
(131)
(118)
(96)
(94)
(14)
(13)
(826)
(772)
Profit before credit impairment
and income tax
641 687 469 390 173 187 215 (48) 1,498 1,216
Credit impairment release /
(charge)
(26) 32 48 31 (2) 7 - - 20 70
Profit / (loss) before income tax 615
719
517
421
171
194
215
(48)
1,518
1,286
Income tax expense
(173)
(198)
(145)
(118)
(48)
(54)
(56)
14
(422)
(356)
Profit after income tax 442 521 372 303 123 140 159 (34) 1,096 930

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




11
Personal Business Institutional Other Total
31 Mar 22 30 Sep 21 31 Mar 22 30 Sep 21 31 Mar 22 30 Sep 21 31 Mar 22 30 Sep 21 31 Mar 22 30 Sep 21
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 1,042 1,042 895 895 1,069 1,069 - - 3,006 3,006
Net loans and advances
101,646
95,379
37,797
39,158
6,954
6,535
-
2
146,397
141,074
Customer deposits
84,039
78,592
23,671
23,744
21,661
22,793
-
-
129,371
125,129

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


2022 2021
For the six months ended 31 March

NZ$m NZ$m
Personal and Business central functions 20 1
Group Centre
11
(3)
Economic hedges
128
(32)
Total

159
(34)


5. NET LOANS AND ADVANCES
31 Mar 22 30 Sep 21
Note NZ$m NZ$m
Overdrafts

887
799
Credit cards

1,169
1,127
Term loans - housing

103,074 98,831
Term loans - non-housing

41,439 40,528
Subtotal 146,569
141,285
Unearned income
(34)
(29)
Capitalised brokerage and other origination costs
435
403
Gross loans and advances 146,970
141,659
Allowance for expected credit losses 6
(573)
(585)
Net loans and advances

146,397
141,074

ANZ New Zealand has reviewed the historic accounting treatment of a transaction product arrangement comprised of both overdraft and deposit
balances and concluded that, under NZ IAS 32 Financial Instruments: Presentation, the deposit amounts cannot be netted against the overdraft
balances drawn under the arrangement. The application of netting reduced the amounts presented for overdrafts (above) and customer deposits
(Note 8 deposits and other borrowings) by NZ$163 million as at 30 September 2021. Comparative amounts have not been restated as the impact is
not considered material.

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 included in Note 1 about our interim financial statements.

31 Mar 22 30 Sep 21
Collectively Individually Collectively Individually
assessed assessed Total assessed assessed Total
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Net loans and advances at amortised cost
511 62 573
525 60 585
Off-balance sheet commitments
105 14 119
107 15 122
Total 616 76 692
632 75 707
The following tables present the movement in the allowance for expected credit losses (ECL).


Net loans and advances

Allowance for 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 2021 155 314 56 60 585
Transfer between stages
16 (12) (1) (3) -
New and increased provisions (net of collective provision releases)
(8) (10) 1 39 22
Write-backs - - - (22) (22)
Bad debts written-off (excluding recoveries) - - - (15) (15)
Discount unwind reversal
- - - 3 3
As at 31 March 2022 163 292 56 62 573
Off-balance sheet credit related commitments - undrawn and contingent facilities
Allowance for ECL is included in other provisions.


As at 1 October 2021 64 39 4 15 122
Transfer between stages 5 (5) - - -
New and increased provisions (net of collective provision releases) (4) 2 - (1) (3)
As at 31 March 2022 65 36 4 14 119

CREDIT IMPAIRMENT CHARGE – INCOME STATEMENT
2022 2021
For the six months ended 31 March NZ$m NZ$m
New and increased provisions


- Collectively assessed
(16)
(60)
- Individually assessed
35
36
Write-backs
(22)
(36)
Recoveries of amounts previously written-off

(17)
(10)
Total credit impairment release

(20) (70)

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




13



KEY JUDGEMENTS AND ESTIMATES
ANZ New Zealand measures the allowance for ECL using an expected credit loss impairment model as required by NZ IFRS 9 Financial
Instruments.
COVID-19 risks are moderating however the economy continues to transition to a setting with less government stimulus and some uncertainty
as to how customers will respond to expected interest rate rises and inflationary pressure, heightened geopolitical tensions across the globe,
the conflict in Ukraine and global supply chain issues, commodity price impacts, and how governments, businesses and consumers respond
also remains uncertain. This uncertainty is reflected in ANZ New Zealand’s assessment of expected credit losses, which are subject to a number
of management judgements and estimates.
Individually assessed allowance for expected credit losses
In estimating individually assessed ECL, 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 amongst other things, the continuing uncertainties
described above.
Collectively assessed allowance for expected credit losses
In estimating collectively assessed ECL, ANZ New Zealand makes judgements and assumptions in relation to:
• the selection of an estimation technique or modelling methodology; 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 uncertainty of how various factors might impact the global
economy, 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 2022
Determining
when a
significant
increase in
credit risk
(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.
ANZ New Zealand has retained a portion of ECL to
provide for expected delinquencies that may have
been obscured by COVID-19 support measures.
Although these measures have ceased, uncertainty
remains on their ongoing impact on portfolio
delinquency.
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, LGD and EAD 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.
The modelled outcome includes an amount to
recognise increased 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 2022.

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 2022
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 2022, the base case assumptions have
been updated to reflect the economic impacts of the
Omicron variant, supply chain pressures, and
increasing inflation and expected interest rate rises. In
determining the expected path of the economy,
assessments of the impact of central bank policies,
government actions, and the response of businesses
and consumers were considered.
The expected outcomes of key economic drivers for
the base case scenario as at 31 March 2022 are
described below under the heading “Base case
economic forecast assumptions”.
Probability
weighting of
each economic
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 economic
scenario at each measurement date.
The key considerations for probability weightings in
the current period include the ongoing but
increasingly known impacts of COVID-19, uncertainty
as to how customers will respond to expected
interest rate rises and inflationary pressures, the
conflict in Ukraine, commodity price impacts and
global supply chain issues.
Weightings for current and prior periods are as
detailed in the section on “Probability weightings”
below.
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 ongoing but
moderating COVID-19 pandemic, and the extent to
which the actions of governments, businesses and
consumers influence 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 continued to apply a number of
adjustments to the modelled ECL primarily due to the
uncertainty associated with continuing but
moderating COVID-19 impacts.
Management overlays (including COVID-19 overlays)
which add to the modelled ECL provision have been
made for risks particular to personal and business
banking.
Management temporary adjustments total NZ$157
million (September 2021: NZ$177 million).

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
Continuing uncertainties described above increase the risk of the economic forecast resulting in an understatement or overstatement of the
ECL balance:
The economic drivers of the base case economic forecasts, reflective of our view of future macro-economic conditions, used at 31 March 2022
are set out below. For years beyond the near term forecasts below, the ECL models project future year economic conditions which include an
assumption of eventual reversion to mid-cycle economic conditions.
Actual calendar year Forecast calendar year
New Zealand 2021 2022 2023
Gross domestic product (GDP) (annual % change) 5.5% 2.4% 2.8%
Unemployment rate 3.8% 3.0% 3.0%
Residential property prices (annual % change) 26.5% -6.0% 3.3%
Consumer price index (CPI) (annual % change) 3.9% 5.3% 3.2%
The base case economic forecasts above indicate a weakening in current economic conditions adding to inflation pressure for a time and
weighing on economic activity.
Probability weightings
Probability weightings for each scenario are determined by management considering the risks and uncertainties surrounding the base case
economic scenario including the uncertainties described above.
The base case scenario represents a deterioration in the forecasts since September 2021. Given the uncertainties associated with a potential
ongoing recovery of the economy and external factors, the average base case weighting has been reduced to 40.0% (Sep 21: 50.0%) and the
severe downside scenario increased to 10.0% (Sep 21: 5.0%).
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 estimates of the possible lo ss outcomes and
taking into account short and long term inter-relationships within ANZ New Zealand’s credit portfolios. The average weightings applied are set
out below:

31 Mar 22 30 Sep 21
Base 40.0% 50.0%
Upside 5.0% 4.5%
Downside 45.0% 40.5%
Severe downside 10.0% 5.0%
ECL - Sensitivity analysis
Given current economic uncertainties and the judgement applied to factors used in determining the expected default of borrowers in future
periods, expected credit losses 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 ANZ New Zealand’s allowance for collectively assessed ECL to key factors used in determining it as
at 31 March 2022:



Balance
NZ$m
Profit and
loss impact
NZ$m
If 1% of Stage 1 facilities were included in Stage 2 622 6
If 1% of Stage 2 facilities were included in Stage 1 615 (1)

100% upside scenario
100% base scenario
100% downside scenario
100% severe downside scenario
237
297
563
756
(379)
(319)
(53)
140

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 22 30 Sep 21
NZ$m NZ$m
Goodwill

3,006 3,006
Management rights 76 76
Software
21 9
Goodwill and other intangible assets

3,103
3,091

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. Management rights, assessed as having
indefinite useful lives, arose on the acquisition of the ING Holdings (NZ) Limited (now ANZ New Zealand Investments Holdings Limited) group on 30
November 2009.
Goodwill and management rights are allocated to CGUs as follows:

Goodwill Management rights

31 Mar 22 30 Sep 21 31 Mar 22 30 Sep 21
Cash generating unit NZ$m NZ$m NZ$m NZ$m
Personal

980 980 - -
Funds Management

62 62 76 76
Personal segment

1,042
1,042
76
76
Business

895
895
-
-
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 RBNZ on the payment of ordinary dividends by all New Zealand incorporated registered banks, and the implementation
of RBNZ’s new capital adequacy 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 the 28 February 2022 impairment test
Forecast period and projections To 30 September 2028 - an extended forecast period was used to cover the implementation of RBNZ’s new
capital adequacy requirements over the transition period ending on 1 July 2028.
Revenue growth over forecast
period
Comprises impacts of net interest margin and volume growth, arising from planned responses to known
re gulatory 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 2022 to 2024, before returning to long run experience levels for
2025 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 2025 to 2028 is shown below.
Terminal growth rate 2.0% - based on 2025 forecast inflation from RBNZ’s February 2022 Monetary Policy Statement.
Discount rate
Post tax: 10.7% (February 2021: 9.4%).
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 monthly average traded 10 year New Zealand government bond yield
for February 2022 of 2.7%. 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

28 Feb 22 28 Feb 21 28 Feb 22 28 Feb 21 28 Feb 22 28 Feb 21
Personal (previously Retail and Business Banking)
5.1%
6.1%
0.12%
0.13%
20.8%
17.5%
Funds Management (previously Wealth)

6.4%
3.4%
n/a
0.10%
18.6%
16.4%
Business (previously Commercial)

5.3%
4.2%
0.21%
0.21%
20.8%
17.8%
Institutional

3.6%
4.5%
0.22%
0.21%
20.6%
17.3%
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 carrying amount of any CGU to exceed its recoverable amount.





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 other
factors outlined in Note 1 about our interim financial statements, and reflects expectations of future events that are believed to be
reasonable under the circumstances. Changes in conditions 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 22 30 Sep 21
NZ$m NZ$m
Term deposits 41,890 40,668
On demand and short term deposits 64,119 62,648
Deposits not bearing interest 23,362 21,813
Total customer deposits
129,371
125,129
Certificates of deposit
2,171
1,875
Commercial paper
4,892
4,433
Securities sold under repurchase agreements
2,226
1,663
Borrowings from Ultimate Parent Bank and Immediate Parent Company
2,760
2,886
Deposits and other borrowings 141,420 135,986


9. OTHER PROVISIONS


31 Mar 22 30 Sep 21
Note NZ$m NZ$m
Allowance for ECL on undrawn and contingent facilities 6
119
122
Customer remediation
79
98
Restructuring costs
15
25
Leasehold make good
21
22
Other
1
16 28
Total other provisions 250 295
1 Other 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 22 30 Sep 21

NZ$m NZ$m
Senior debt
12,589
14,220
Covered bonds
3,973
4,248
Total unsubordinated debt

16,562
18,468
Subordinated debt


- ANZ Capital Notes
1,042
1,513
- Other subordinated debt
879
871
Total subordinated debt 1,921 2,384
Total debt issued 18,483 20,852
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 included in Note 1 about our interim financial statements
and Note 6 allowance for expected credit losses.
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 22 30 Sep 21 31 Mar 22 30 Sep 21 31 Mar 22 30 Sep 21

NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
On-balance sheet positions
Net loans and advances 146,397 141,074 - - 146,397 141,074
Other financial assets:






Cash and cash equivalents
11,178
7,844
185
163
10,993
7,681
Settlement balances receivable
913
237
-
-
913
237
Collateral paid
612
537
-
-
612
537
Trading securities
7,818
9,585
-
-
7,818
9,585
Derivative financial instruments 8,938 9,283 - - 8,938 9,283
Investment securities
10,291 11,926 - - 10,291 11,926
Other financial assets
2
500 497 - - 500 497
Total other financial assets 40,250
39,909
185
163
40,065
39,746
Subtotal 186,647
180,983
185
163
186,462
180,820
Off-balance sheet commitments





Undrawn and contingent facilities
3

30,862
29,780
-
-
30,862
29,780
Total 217,509
210,763
185
163
217,324
210,600
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 2022 NZ$m NZ$m NZ$m NZ$m NZ$m
Strong
121,386 2,236 - - 123,622
Satisfactory
17,766 2,703 - - 20,469
Weak
317 1,432 - - 1,749
Defaulted - - 579 150 729
Subtotal 139,469 6,371 579 150 146,569
Allowance for ECL
(163) (292) (56) (62) (573)
Net loans and advances at amortised cost 139,306 6,079 523 88 145,996
Coverage ratio 0.12% 4.58% 9.67% 41.33% 0.39%
Unearned income
(34)
Capitalised brokerage and other origination costs
435
Net carrying amount 146,397

As at 30 September 2021
Strong 116,875 1,625 - - 118,500
Satisfactory 17,133 3,136 - - 20,269
Weak 294 1,447 - - 1,741
Defaulted - - 620 155 775
Subtotal
134,302 6,208 620 155 141,285
Allowance for ECL (155) (314) (56) (60) (585)
Net loans and advances at amortised cost 134,147 5,894 564 95 140,700
Coverage ratio 0.12% 5.06% 9.03% 38.71% 0.41%
Unearned income (29)
Capitalised brokerage and other origination costs 403
Net carrying amount
141,074

Off-balance sheet commitments - undrawn and contingent facilities
Stage 3

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
As at 31 March 2022 NZ$m NZ$m NZ$m NZ$m NZ$m
Strong
25,523 184 - - 25,707
Satisfactory 4,258 854 - - 5,112
Weak 17 107 - - 124
Defaulted - - 16 22 38
Gross undrawn and contingent facilities 29,798 1,145 16 22 30,981
Allowance for ECL included in other provisions (refer to Note 9)
(65) (36) (4) (14) (119)
Net undrawn and contingent facilities 29,733 1,109 12 8 30,862
Coverage ratio 0.22% 3.14% 25.00% 63.64% 0.38%


As at 30 September 2021
Strong 24,822 142 - - 24,964
Satisfactory 3,734 1,037 - - 4,771
Weak 12 100 - - 112
Defaulted - - 32 23 55
Gross undrawn and contingent facilities 28,568 1,279 32 23 29,902
Allowance for ECL included in other provisions (refer to Note 9) (64) (39) (4) (15) (122)
Net undrawn and contingent facilities
28,504 1,240 28 8 29,780
Coverage ratio
0.22% 3.05% 12.50% 65.22% 0.41%

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




21
12. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Fair value hierarchy
ANZ New Zealand categorises assets and 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 following table presents assets and liabilities carried at fair value in accordance with 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 22 30 Sep 21 31 Mar 22 30 Sep 21 31 Mar 22 30 Sep 21 31 Mar 22 30 Sep 21
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Assets







Trading securities
6,003
8,276
1,815
1,309
-
-
7,818
9,585
Derivative financial instruments
84
19
8,854
9,263
-
1
8,938
9,283
Investment securities
10,014
11,925
276
-
1
1
10,291
11,926
Total 16,101
20,220
10,945
10,572
1
2
27,047
30,794
Liabilities
Deposits and other borrowings - - 4,892 4,433 - - 4,892 4,433
Derivative financial instruments
5 5 8,317 7,675 4 - 8,326 7,680
Other financial liabilities
478
676
-
-
-
-
478
676
Total 483
681
13,209
12,108
4
-
13,696
12,789

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 22 30 Sep 21 31 Mar 22 30 Sep 21
NZ$m NZ$m NZ$m NZ$m
Financial assets

Net loans and advances
1

146,397
141,074
145,216
141,021
Total

146,397
141,074
145,216
141,021
Financial liabilities


Deposits and other borrowings
2
136,528 131,553 136,548 131,713
Debt issuances
1
18,483 20,852 18,495 21,108
Total
155,011
152,405
155,043
152,821
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 22 30 Sep 21
Credit related commitments and contingencies NZ$m NZ$m
Contract amount of:


Undrawn facilities
28,130
27,170
Guarantees and letters of credit 1,187 1,181
Performance related contingencies 1,664 1,551
Total 30,981
29,902

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, surveillance 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 re gulators 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 requirements, 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.
The Bank self-identified three prescribed transaction reporting (PTR) matters to the RBNZ, where transaction reports had not been filed within the
prescribed timeframe. The RBNZ has informed the Bank that it considers one of these matters (related to 6,409 transaction reports of a certain SWIFT
message type) to be a material breach, and the other two to be minor breaches, of the Anti-Money Laundering and Countering Financing of Terrorism
(AML/CFT) Act 2009 relating to PTR. These matters have been referred to the RBNZ’s enforcement team for review. The potential outcome of these
matters remains uncertain at this time.
LOAN INFORMATION LITIGATION
In September 2021, representative proceedings were brought against the Bank, alleging breaches of disclosure requirements under consumer credit
legislation in respect of variation letters sent to certain loan customers. The Bank is defending the allegations. The proceedings are still at an early
stage. A hearing of the plaintiff’s application for leave to bring representative proceedings is scheduled for May 2022.
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.
REVIEWS UNDER SECTION 95 OF THE RESERVE BANK OF NEW ZEALAND ACT 1989 (RBNZ ACT)
Following a RBNZ notice under section 95 of the RBNZ Act in July 2019, the Bank obtained two external reviews. The first review was 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 review was on the effectiveness of the Bank’s directors’ attestation and assurance
framework (Attestation Review).
A summary of the final Attestation Review was published in March 2022. The report found that the Bank has taken appropriate steps to address the
recommendations from the 2019 Attestation Review report. The review noted that there has been a marked uplift in the overall capabilities within the
Bank in respect to the attestation process, with heightened focus and scrutiny from management, executives and the Bank’s board. The review also
noted while there are elements of the framework still in the process of being embedded, the key changes recommended in the 2019 Attestation
Review report have been appropriately addressed.

The final Capital Adequacy Review was completed in December 2021. The report found that the Bank had made significant progress to address non-
compliance issues and improvement items identified by the 2019 Capital Adequacy Review report. In particular, all non-compliant capital models have
been submitted to the RBNZ for approval. As at 31 March 2022, all but three non-compliant models have been approved by RBNZ.

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




23
14. SUBSEQUENT EVENTS
The Overseas Banking Group intends to lodge a formal application with APRA, the Federal Treasurer and other applicable regulators to establish a
non-operating holding company and create distinct banking and non-banking groups within the organisation. Following preliminary discussions,
APRA has advised they have no in -principle objection to the proposed restructure. The Overseas Banking Group has also consulted other key
Australian and New Zealand regulators and to date has not received any objections. Consultation and engagement remains ongoing. Further
information about the proposal can be found at http://shareholder.anz.com
.
There have been no other significant events from 31 March 2022 to the date of signing the financial statements.

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 6 May 2022.
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
Christine O’Reilly was appointed as an Independent Non-Executive Director of the Ultimate Parent Bank on 1 November 2021. Paula Dwyer ceased as
an Independent Non-Executive Director of the Ultimate Parent Bank on 16 December 2021. There have been no other changes to the Directors of the
Ultimate Parent Bank since 30 September 2021, the balance date of the last full year disclosure statement.
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
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.
As at 6 May 2022, the Ultimate Parent Bank’s credit ratings are:
Rating agency Credit rating Qualification
S&P Global Ratings
AA- Outlook Stable
Fitch Ratings
A+ Outlook Stable
Moody’s Investors Service Aa3 Outlook Stable
Other material matters
New RBNZ capital requirements
RBNZ has released new bank capital adequacy requirements applying to New Zealand locally incorporated registered banks, which are set out in
RBNZ’s Banking Prudential Requirements documents. The new capital adequacy requirements are being implemented in stages during a transition
period from October 2021 to July 2028. The key requirements are:
• 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 30 September 2021, the Bank had approximately
NZ$2,741 million of AT1 instruments that will progressively lose eligible regulatory capital treatment over a six and a half year transition period
from 1 January 2022 to 1 July 2028, should these instruments remain outstanding. The Bank re deemed NZ$500 million of these AT1 instruments
in December 2021, and has NZ$2,241 million on issue as at 31 March 2022.
• 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, which took effect on 1 January
2022, and increasing the credit RWA scalar from 1.06 to 1.20 from 1 October 2022.
• RBNZ has proposed requiring internal ratings based approach accredited banks to report RWA, and resulting capital ratios, using both the
internal models and the standardised approaches from 30 September 2022. RBNZ’s consultation process is in progress as at 6 May 2022.
RBNZ’s reforms will result in a material increase in the level of capital that the Banking Group is required to hold. The reforms could have a material
impact on the Banking Group and its business, including on its capital allocation and business planning.
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 anz.com/shareholder/centre/.

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 2022

NZ$m
Total interest earning and discount bearing assets 176,557
Total interest and discount bearing liabilities 140,942
Total amounts due from related entities
6,030
Total amounts due to related entities
9,005
Total liabilities of the NZ Branch less amounts due to related entities
1,074

Assets charged as security for liabilities
The following disclosure excludes the amounts presented as collateral paid and received on the balance sheet that relate to derivative liabilities and
derivative assets respectively. The terms and conditions of those collateral agreements are included in the standard Credit Support Annex that forms
part of the International Swaps and Derivatives Association Master Agreement under which most of our derivatives are executed.
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 Banking Group’s covered bond
programmes; and
• collateral provided to the RBNZ under the Term Lending Facility (TLF) and Funding for Lending Programme (FLP).
The carrying amounts of assets pledged as security are as follows:
As at 31 March 2022
NZ$m
Securities sold under agreements to repurchase
427
Residential mortgages pledged as security for repurchase agreements with RBNZ
2,165
Total assets of the ANZNZ Covered Bond Trust pledged as security for covered bonds
9,877

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 2022 NZ$m NZ$m NZ$m NZ$m
New Zealand residents
Agriculture 15,912 3 1,272 17,187
Forestry and fishing, agriculture services 658 1 121 780
Manufacturing 2,457 92 1,824 4,373
Electricity, gas, water and waste services 933 312 1,573 2,818
Construction 1,201 1 853 2,055
Wholesale trade
1,357 71 2,172 3,600
Retail trade and accommodation
2,655 8 761 3,424
Transport, postal and warehousing
992 51 782 1,825
Finance and insurance services
1,070 14,964 1,617 17,651
Public administration and safety
1

317 9,874 806 10,997
Rental, hiring & real estate services
38,685 1,597 3,073 43,355
Professional, scientific, technical, administrative and support services
824 3 450 1,277
Households
75,264 4 13,761 89,029
All other New Zealand residents
2

2,109 114 1,823 4,046
Subtotal 144,434 27,095 30,888 202,417
Overseas

Finance and insurance services
81 12,885 93 13,059
Households
1,353 - - 1,353
All other non-NZ residents
701 85 - 786
Subtotal 2,135 12,970 93 15,198
Gross subtotal 146,569 40,065 30,981 217,615
Allowance for ECL
(573) - (119) (692)
Subtotal 145,996 40,065 30,862 216,923
Unearned income
(34) - - (34)
Capitalised brokerage and other origination costs
435 - - 435
Maximum exposure to credit risk 146,397 40,065 30,862 217,324
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 2022 Note NZ$m
Funding composition

Customer deposits 8
129,371
Wholesale funding


Debt issuances
18,483
Certificates of deposit and commercial paper
7,063
Other borrowings 4,986
Total wholesale funding
30,532
Total funding 159,903



Customer deposits by industry - New Zealand residents


Agriculture, forestry and fishing 4,786
Manufacturing
2,970
Construction
2,830
Wholesale trade
2,597
Retail trade and accommodation
2,425
Financial and insurance services 12,539
Rental, hiring and real estate services
4,352
Professional, scientific, technical, administrative and support services
6,860
Public administration and safety 1,758
Arts, recreation and other services
2,171
Households
71,053
All other New Zealand residents
1

5,721

120,062
Customer deposits by industry - overseas
Households
8,739
All other non-NZ residents
570
9,309
Total customer deposits
129,371
Wholesale funding (financial and insurance services industry)
New Zealand
6,269
Overseas
24,263
Total wholesale funding 30,532
Total funding

159,903

Concentrations of funding by geography


New Zealand
126,331
Australia 4,221
United States
12,883
Europe 9,733
Other countries
6,735
Total funding

159,903
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 2022 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Assets
Cash and cash equivalents 11,178 10,929 - - - - 249
Settlement balances receivable
913 - - - - - 913
Collateral paid 612 612 - - - - -
Trading securities 7,818 1,478 528 272 505 5,035 -
Derivative financial instruments 8,938 - - - - - 8,938
Investment securities 10,291 12 - 307 1,404 8,567 1
Net loans and advances 146,397 67,247 15,331 24,488 23,975 15,867 (511)
Other financial assets
500 - - - - - 500
Total financial assets
186,647 80,278 15,859 25,067 25,884 29,469 10,090
Liabilities
Settlement balances payable
4,551 2,619 - - - - 1,932
Collateral received
1,070 1,070 - - - - -
Deposits and other borrowings
141,420 90,467 12,833 10,002 2,255 2,501 23,362
Derivative financial instruments
8,326 - - - - - 8,326
Debt issuances
18,483 348 1,600 1,079 5,439 10,017 -
Lease liabilities
234 11 11 21 80 111 -
Other financial liabilities
821 478 - - - - 343
Total financial liabilities
174,905 94,993 14,444 11,102 7,774 12,629 33,963
Hedging instruments - (7,429) 14,797 607 (4,948) (3,027) -
Interest sensitivity gap
11,742 (22,144) 16,212 14,572 13,162 13,813 (23,873)
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 2022 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 2022 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Settlement balances payable
3,579 978 - - - 4,557
Collateral received - 1,070 - - - 1,070
Deposits and other borrowings
87,482 24,394 23,247 7,445 - 142,568
Derivative financial liabilities (trading) - 8,219 - - - 8,219
Debt issuances
1

- 34 2,670 12,564 4,733 20,001
Lease liabilities
- 13 38 180 30 261
Other financial liabilities - 118 16 257 408 799
Derivative financial instruments
(balance sheet management)

- gross inflows
- 740 1,500 5,499 298 8,037
- gross outflows - (737) (1,564) (5,330) (235) (7,866)
1 Any callable wholesale debt instruments have been included at their next call date.

At 31 March 2022, NZ$30,981 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 management
ANZ New Zealand holds a diversified portfolio of cash and high quality liquid securities primarily to support liquidity risk management. The size of ANZ
New Zealand’s liquidity portfolio is determined with consideration of the amount required to meet the requirements of its internal and regulatory
liquidity scenario metrics.



As at 31 March 2022 NZ$m
Central and local government bonds
8,172
Government treasury bills
909
Certificates of deposit
838
Other bonds
7,896
Securities eligible to be accepted as collateral in repurchase transactions
17,815
Cash and balances with central banks
10,346
Total liquidity portfolio 28,161
Assets held in ANZ New Zealand’s liquidity portfolio include short term cash held with 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.
The Bank also held unencumbered internal residential mortgage backed securities (RMBS) which would be accepted as collateral by RBNZ in
repurchase transactions. These holdings would entitle the Bank to enter into repurchase transactions with RBNZ with a value of NZ$10,790 million at
31 March 2022.
RBNZ Term Lending Facility (TLF) and Funding for Lending Programme (FLP)
• Between May 2020 and July 2021, RBNZ made funds available under the TLF to promote lending to businesses. The TLF is a five-year secured
funding facility for New Zealand banks at a fixed rate of 0.25%.
• In November 2020, RBNZ announced the FLP which aims to lower the cost of borrowing for New Zealand businesses and households. The FLP is
a three-year secured funding facility for New Zealand banks at a floating rate of the New Zealand Official Cash Rate (OCR). New Zealand banks
can obtain initial funding of up to 4% of their lending to New Zealand resident households, non-financial businesses and non-profit institutions
serving households as at 31 October 2020 (eligible loans). An additional allocation of up to 2% of eligible loans is available, subject to certain
conditions. The Bank’s initial allocation is NZ$5,223 million and its additional allocation is NZ$2,611 million. The additional allocation is available
until 6 December 2022, and the initial allocation is available until 6 June 2022.
As at 31 March 2022, the Bank had drawn NZ$300 million under the TLF and NZ$1,500 million under the FLP. These amounts are included in securities
sold under repurchase agreements in Note 8 deposits and other borrowings.
Overseas Banking Group Profitability and Size

31 Mar 22
Net profit for the six months ended 31 March 2022 (AUDm)
3,530
Net profit after tax for the 12 months ended 31 March 2022 as a percentage of average total assets
0.66%
Total assets (AUDm)
1,017,361
Percentage change in total assets in the 12 months to 31 March 2022
-0.10%

Reconciliation of mortgage related amounts

As at 31 March 2022

Note NZ$m
Term loans - housing
1
5
103,074
Less: housing loans made to corporate customers
(1,333)
On-balance sheet residential mortgage exposures (per LVR analysis) B4 101,741
Add: off-balance sheet residential mortgage exposures (per LVR analysis) B4

9,315
Total residential mortgage exposures (per LVR analysis)
B4
111,056
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 included in Note 1 about our interim financial
statements, Note 6 allowance for expected credit losses and Note 11 credit risk.

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 2021 155 314 56 60 585
Transfer between stages
16 (12) (1) (3) -
New and increased provisions (net of collective provision releases)
(8) (10) 1 39 22
Write-backs - - - (22) (22)
Recoveries of amounts previously written off - - - (17) (17)
Credit impairment charge / (release)
8 (22) - (3) (17)
Bad debts written-off (excluding recoveries)
- - - (15) (15)
Add back recoveries of amounts previously written off
- - - 17 17
Discount unwind
- - - 3 3
As at 31 March 2022 163 292 56 62 573

Off-balance sheet credit related commitments - total
As at 1 October 2021 64 39 4 15 122
Transfer between stages
5 (5) - - -
New and increased provisions (net of collective provision releases) (4) 2 - (1) (3)
Credit impairment charge / (release)
1 (3) - (1) (3)
As at 31 March 2022 65 36 4 14 119

Impacts of changes in gross financial assets on loss allowances



Gross loans and advances - total
As at 1 October 2021 134,302 6,208 620 155 141,285
Net transfers in to each stage 109 584 94 2 789
Amounts drawn from new or existing facilities 21,870 607 15 90 22,582
Additions 21,979 1,191 109 92 23,371
Net transfers out of each stage
(678) (97) (13) (1) (789)
Amounts repaid
(16,134) (931) (137) (81) (17,283)
Deletions
(16,812) (1,028) (150) (82) (18,072)
Amounts written off
- - - (15) (15)
As at 31 March 2022 139,469 6,371 579 150 146,569
Loss allowance as at 31 March 2022 163 292 56 62 573


Off-balance sheet credit related commitments - total
As at 1 October 2021 28,568 1,279 32 23 29,902
Net transfers in to each stage
39 18 3 10 70
New and increased facilities and drawn amounts repaid 6,052 84 3 (3) 6,136
Additions 6,091 102 6 7 6,206
Net transfers out of each stage (20) (50) - - (70)
Reduced facilities and amounts drawn (4,841) (186) (22) (8) (5,057)
Deletions (4,861) (236) (22) (8) (5,127)
As at 31 March 2022 29,798 1,145 16 22 30,981
Loss allowance as at 31 March 2022 65 36 4 14 119
Explanation of how changes in the gross carrying amounts of gross loans and advances contributed to changes in loss allowance
Overall, loss allowances are 0.39% of gross balances as at 31 March 2022, down from 0.41% as at 30 September 2021. The NZ$15 million (2.1%)
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 allowance for expected credit losses.

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 2022 NZ$m
Past due assets
Less than 30 days past due
738
At least 30 days but less than 60 days past due
229
At least 60 days but less than 90 days past due
104
At least 90 days past due 398
Total past due but not individually impaired 1,469
Other asset quality information
Undrawn facilities with impaired customers
22
Other assets under administration

3
ANZ New Zealand does not have any loans and advances designated at fair value.

Overseas Banking Group asset quality

As at 31 March 2022

Gross impaired assets (AUDm)
1,709
Gross impaired assets as a percentage of total assets
0.2%
Individual provision (AUDm) 636
Individual provision as a percentage of gross impaired assets 37.2%
Collective provision (AUDm) 3,757

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 2022 2021 2022 2021
Common equity tier 1 capital
11.5%
12.4%
11.1%
12.2%
Tier 1 capital
13.2%
14.3%
13.1%
14.2%
Total capital
16.6%
18.3%
17.1%
18.6%

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. Where the Overseas Banking Group is not
accredited to use the AIRB methodology 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 2022 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 31 March 2022. The Overseas Banking Group’s Pillar 3
disclosure document for the quarter ended 31 March 2022, 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 BPR140: Market Risk. The
peak end-of-day market risk exposures are for the six months ended 31 March 2022.

Implied risk weighted
exposure Notional capital charge
Period end Peak Period end Peak
As at 31 March 2022 NZ$m NZ$m NZ$m NZ$m
Interest rate risk
6,127 7,266 490 581
Foreign currency risk
46 84 4 7
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 2022 NZ$m NZ$m NZ$m
LVR range
Does not exceed 60%
55,115 6,803 61,918
Exceeds 60% and not 70%
20,108 1,151 21,259
Exceeds 70% and not 80%
20,381 1,070 21,451
Does not exceed 80%
95,604 9,024 104,628
Exceeds 80% and not 90%
4,508 105 4,613
Exceeds 90% 1,629 186 1,815
Total 101,741 9,315 111,056


B5. INSURANCE BUSINESS
As at 31 March 2022, 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 2022, 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
6 May 2022


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





Antonia Watson
Responsible Person
6 May 2022

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

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ NEW ZEALAND

INDEPENDENT AUDITOR’S REVIEW REPORT


35


TO THE DIRECTORS OF AUSTRALIA 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 ANZ New Zealand’s condition of registration, the Reserve Bank of New Zealand’s Banking Prudential Requirements and
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 2022 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;

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 23 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 2022 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 are 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 2022;
• 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
• 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
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 review work, this independent
review report, or any of the opinions we have formed.





KPMG
Auckland
6 May 2022

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