ANZ Bank New Zealand 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

9 May 2023

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





ANZ Bank New Zealand Limited
Registered Bank Disclosure Statement

Australia and New Zealand Banking Group Limited (ANZ) today released ANZ Bank New
Zealand Limited’s Registered Bank Disclosure Statement for the six months ended 31
March 2023.

It has been approved for distribution by ANZ’s Continuous Disclosure Committee.

Yours faithfully




Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited

ANZ BANK NEW ZEALAND LIMITED
REGISTERED BANK DISCLOSURE STATEMENT




































FOR THE SIX MONTHS ENDED 31 MARCH 2023

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
Limited Assurance Report on the Interim Financial Statements 21
Registered Bank Disclosures 22
Directors’ Statement 42
Limited Assurance Reports on the Registered Bank Disclosures
43
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, We or Our means the Bank and all its controlled entities.
Immediate Parent Company means ANZ Holdings (New Zealand) Limited.
Ultimate Non-Bank Holding Company means ANZ Group Holdings Limited.
Ultimate Parent Bank means Australia and New Zealand Banking Group Limited.
Overseas Banking Group means the worldwide operations of the Ultimate Parent Bank 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.
ANZBGL New Zealand means the New Zealand business of the Overseas Banking Group.
Registered Office is Ground Floor, ANZ Centre, 23-29 Albert Street, Auckland, New Zealand, which is also the Bank’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 ( New Zealand Incorporated Registered Banks) Order 2014.
Any t
erm 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. Segment reporting 10
Financial and non-financial assets
4. Net loans and advances 11
5. Allowance for expected credit losses 12
Financial and non-financial liabilities
6. Deposits and other borrowings 16
7. Debt issuances 16
Financial instrument disclosures
8. Credit risk 17
9. Fair value of financial assets and financial liabilities 19
Other disclosures
10. Commitments and contingent liabilities 20

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
INTERIM FINANCIAL STATEMENTS
INCOME STATEMENT
The notes appearing on pages 8 to 20 form an integral part of these interim financial statements
4
2023 2022
For the six months ended 31 March Note NZ$m NZ$m
Interest income
4,672 2,454
Interest expense
(2,525)
(685)
Net interest income
2,147
1,769
Other operating income 2 239 561
Operating income
2,386
2,330
Operating expenses
(811)
(826)
Profit before credit impairment and income tax
1,575
1,504
Credit impairment release / (charge) 5
(121)
20
Profit before income tax
1,454 1,524
Income tax expense
(408)
(423)
Profit for the period
1,046
1,101
STATEMENT OF COMPREHENSIVE INCOME
2023 2022
For the six months ended 31 March NZ$m NZ$m
Profit for the period
1,046 1,101
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss -
3
Items that may be reclassified subsequently to profit or loss
Reserve movements:
Unrealised losses recognised directly in equity
(28)
(58)
Realised gains transferred to the income statement
(12)
(29)
Income tax attributable to the above items 11 23
Other comprehensive income after tax
(29)
(61)
Total comprehensive income for the period 1,017 1,040

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
The notes appearing on pages 8 to 20 form an integral part of these interim financial statements
5
BALANCE SHEET
31 Mar 23 30 Sep 22
As at Note NZ$m NZ$m
Assets
Cash and cash equivalents 12,657 12,575
Settlement balances receivable
516
785
Collateral paid 576 1,672
Trading securities
5,657
7,228
Derivative financial instruments
6,354
15,481
Investment securities 11,211 11,357
Net loans and advances 4
147,154
147,067
Current tax assets
6
-
Deferred tax assets 355 362
Goodwill and other intangible assets
3,096
3,099
Premises and equipment 423 450
Other assets
990
1,058
Total assets 188,995
201,134
Liabilities
Settlement balances payable
3,410
4,933
Collateral received
1,056
1,962
Deposits and other borrowings 6 139,423 139,642
Derivative financial instruments
6,281
13,785
Current tax liabilities -310
Payables and other liabilities
1,926
1,345
Employee entitlements
122
128
Other provisions 209 222
Debt issuances 7
18,688
21,023
Total liabilities 171,115
183,350
Net assets 17,880
17,784
Shareholders' equity
Share capital 12,438 12,438
Reserves
19
48
Retained earnings
5,423
5,298
Total shareholders' equity 17,880 17,784

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
INTERIM FINANCIAL STATEMENTS
The notes appearing on pages 8 to 20 form an integral part of these interim financial statements
6
CASH FLOW STATEMENT
2023 2022
For the six months ended 31 March NZ$m NZ$m
Profit after income tax
1,046 1,101
Adjustments to reconcile to net cash flows from operating activities:
Depreciation and amortisation 60 63
Loss on sale and impairment of premises and equipment
1
1
Net derivatives/foreign exchange adjustment
684
(106)
Other non-cash movements
(139)(9)
Net (increase)/decrease in operating assets:
Collateral paid
1,096
(75)
Trading securities
1,571 1,767
Net loans and advances
(87)
(5,365)
Other assets
338
(666)
Net increase/(decrease) in operating liabilities:
Deposits and other borrowings (excluding items included in financing activities)
(1,219)
5,065
Settlement balances payable
(1,523)
1,888
Collateral received
(906)332
Other liabilities
274
(415)
Total adjustments
150
2,480
Net cash flows from operating activities
1
1,196
3,581
Cash flows from investing activities
Investment securities:
Purchases
2

(2,822)
(2,241)
Proceeds from sale or maturity
2

3,348
3,551
Other assets
(30)(58)
Net cash flows from investing activities
496
1,252
Cash flows from financing activities
Deposits and other borrowings
3
1,000 500
Debt issuances:
4

Issue proceeds 500 2,680
Redemptions
(2,166)
(3,753)
Repayment of lease liabilities
(23)
(22)
Dividends paid
(921)(904)
Net cash flows from financing activities
(1,610)
(1,499)
Net change in cash and cash equivalents
82
3,334
Cash and cash equivalents at beginning of period 12,575 7,844
Cash and cash equivalents at end of period
12,657
11,178
1 Net cash provided by operating activities includes income taxes paid of NZ$706 million (2022: NZ$541 million).
2 Comparative amounts for purchases and proceeds were previously grossed up by NZ$3,328 million, and have been updated accordingly.
3 Movement in deposits and other borrowings includes repurchase transactions entered into with the RBNZ under the Funding for Lending Programme of NZ$1,000 million (2022: NZ$500
million).
4 Movement in debt issuances (Note 7 Debt issuances) also includes a NZ$896 million decrease (2022: NZ$705 million decrease) from the effect of foreign exchange rates, a NZ$226 million
increase (2022: NZ$643 million decrease) from changes in fair value hedging instruments and a NZ$1 million increase (2022: NZ$16 million increase) from other changes.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
The notes appearing on pages 8 to 20 form an integral part of these interim financial statements
7
STATEMENT OF CHANGES IN EQUITY
Share
capital Reserves
Retained
earnings
Total
shareholders'
equity
NZ$m NZ$m NZ$m NZ$m
As at 1 October 2021
11,888 70 4,934 16,892
Profit for the period - - 1,101 1,101
Other comprehensive income for the period
- (63) 2 (61)
Total comprehensive income for the period

- (63) 1,103 1,040
Transactions with equity holders in their capacity as equity owners:
Ordinary dividend paid - - (900) (900)
Preference dividends paid
- - (4) (4)
As at 31 March 2022
11,888 7 5,133 17,028
As at 1 October 2022 12,438 48 5,298 17,784
Profit for the period
- - 1,046 1,046
Other comprehensive income for the period
-(29)-(29)
Total comprehensive income for the period -(29)1,046 1,017
Transactions with equity holders in their capacity as equity owners:
Ordinary dividend paid - - (900) (900)
Preference dividends paid
- - (21) (21)
As at 31 March 2023 12,438 19 5,423 17,880

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS


8

1. ABOUT OUR INTERIM FINANCIAL STATEMENTS
NEW ULTIMATE NON-BANK HOLDING COMPANY
On 3 January 2023, the Ultimate Parent Bank established, by a scheme of arrangement, a non-operating holding company, ANZ Group Holdings
Limited, as the new listed parent holding company of the ANZ Group and implemented a restructure to separate the Overseas Banking Group’s
banking and certain non-banking businesses into the ANZ bank group and ANZ non-bank group. The ANZ bank group comprises the majority of the
businesses and subsidiaries that were held in Australia and New Zealand Banking Group Limited prior to the restructure. The ANZ non-bank group
comprises banking-adjacent businesses developed or acquired by the ANZ Group to focus on bringing new technology and banking-adjacent
services to its customers, and a separate service company.
The Ultimate Parent Bank is unchanged.
The restructure had no effect on these condensed consolidated interim financial statements (financial statements).
BASIS OF PREPARATION
These financial statements for the Banking Group have been prepared in accordance with the requirements of the Order and should be read in
conjunction with the Banking Group’s financial statements for the year ended 30 September 2022.
On 8 May 2023, 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 financial statements consolidate the financial statements of the Bank and its subsidiaries.
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 the Banking Group 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 values:
• derivative financial instruments;
• financial assets and liabilities held for trading;
• financial assets and liabilities designated at fair value through profit and loss (FVTPL); and
• financial assets at fair value through other comprehensive income (FVOCI).


KEY JUDGEMENTS AND ESTIMATES
The preparation of these financial statements requires the use of management judgement, estimates and assumptions impacting the
application of accounting policies and financial outcomes. 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.
The global economy is facing challenges associated with high inflation, increasing interest rates, labour market constraints, and continuing
geopolitical tensions which contributes to an elevated level of estimation uncertainty involved in the preparation of these financial
statements.
The Banking Group has made various accounting estimates in these financial statements based on forecasts of economic conditions which
reflect expectations and assumptions at 31 March 2023 about future events considered reasonable in the circumstances. Thus 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 of 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.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




9
2. OTHER OPERATING INCOME
2023 2022
For the six months ended 31 March NZ$m NZ$m
(i) Fee and commission income


Lending fees

13 13
Non-lending fees

375 341
Commissions

15 16
Funds management income
120
130
Fee and commission income
523
500
Fee and commission expense
(273)
(242)
Net fee and commission income 250
258
(ii) Other income



Net trading gains 109 75
Gain on sale of investment securities designated at fair value through other comprehensive income

13 31
Fair value gain / (loss) on hedging activities and financial liabilities designated at fair value

(136) 179
Net foreign exchange earnings and other financial instruments income
(14)
285
Release of provisions for UDC Finance Ltd and Paymark Ltd disposal costs
-
14
Other
3
4
Other income (11)
303
Other operating income

239
561

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS


10
3. SEGMENT REPORTING
The Banking Group 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.
Segment reporting has been updated to reflect the transfer of certain larger business and property finance customers from Business to Institutional.
The transfer aligns the customer needs with the right support and expertise delivering a better customer experience. Comparative amounts have
been adjusted to be consistent with the current period’s segment definitions. The change resulted in the movement of NZ$11.9 billion of net loans
and advances, NZ$3.5 billion of customer deposits and NZ$200 million of goodwill as at 30 September 2022, and NZ$88 million of profit after tax for
the six months ended 31 March 2022, from Business to Institutional.
Personal
Personal provides a full range of banking and wealth management services to consumer and private banking customers. We deliver our services via
our internet and app-based digital solutions and network of branches, mortgage specialists, relationship managers and contact centres.
Business
Business provides a full range of banking services including small business lending, through our digital, branch and contact centres channels, and
traditional relationship banking and sophisticated financial solutions through dedicated managers. These cover privately owned small, medium and
large enterprises, the agricultural business segment, government and government related entities.
Institutional
The Institutional division services governments, global institutional and corporate customers via the following business units:
• Transaction Banking provides customers with working capital and liquidity solutions including documentary trade, supply chain financing,
commodity financing as well as cash management solutions, deposits, payments and clearing.
• Corporate Finance provides customers with loan products, loan syndication, specialised loan structuring and execution, project and export
finance, debt structuring and acquisition finance and corporate advisory services.
• Markets provide customers with risk management services on foreign exchange, interest rates, credit, commodities and debt capital markets in
addition to managing the Banking Group’s interest rate exposure and high quality liquid asset portfolio.
Other
Other includes treasury and back office support functions, none of which constitutes a separately reportable segment.
Personal Business Institutional Other Total
For the six months
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
ended 31 March NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Net interest income 1,219 1,020 496 415 346 318 86 16 2,147 1,769
Net fee and commission income










- Lending fees
3
4
-
1
10
8
-
-
13
13
- Non-lending fees 220 196 132 121 23 24 - - 375 341
- Commissions
15
15
-
-
-
1
-
-
15
16
- Funds management income 120 130 - - - - - - 120 130
- Fee and commission expense
(167)
(144)
(106)
(98)
-
-
-
-
(273)
(242)
Net fee and commission income
191
201
26
24
33
33
-
-
250
258
Other income 1 1 - - 147 79 (159) 223 (11) 303
Other operating income
192
202
26
24
180
112
(159)
223
239
561
Operating income
1,411
1,222
522
439
526
430
(73)
239
2,386
2,330
Operating expenses (574) (585) (109) (102) (113) (125) (15) (14) (811) (826)
Profit before credit impairment
and income tax
837
637
413
337
413
305
(88)
225
1,575
1,504
Credit impairment release /
(charge)
(50)
(26)
(32)
58
(39)
(12)
-
-
(121)
20
Profit / (loss) before income tax 787 611 381 395 374 293 (88) 225 1,454 1,524
Income tax credit / (expense)
(220)
(171)
(107)
(111)
(105)
(82)
24
(59)
(408)
(423)
Profit / (loss) after income tax 567
440
274
284
269
211
(64)
166
1,046
1,101

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




11
Personal Business Institutional Other Total
31 Mar 23 30 Sep 22 31 Mar 23 30 Sep 22 31 Mar 23 30 Sep 22 31 Mar 23 30 Sep 22 31 Mar 23 30 Sep 22
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 1,042 695 695 1,269 1,269 - - 3,006 3,006
Net loans and advances
103,240
102,709
24,924
25,560
18,990
18,798
-
-
147,154
147,067
Customer deposits
86,108
85,391
18,506
19,059
25,684
25,880
-
-
130,298
130,330

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



2023 2022
For the six months ended 31 March

NZ$m NZ$m
Personal and Business central functions 2 20
Group Centre 32 20
Economic hedges (98) 126
Total (64) 166


4. NET LOANS AND ADVANCES
31 Mar 23 30 Sep 22
Note NZ$m NZ$m
Overdrafts

938
968
Credit cards

1,264 1,238
Term loans - housing

104,324 103,872
Term loans - non-housing

40,989 41,234
Subtotal 147,515
147,312
Unearned income
(32)
(32)
Capitalised brokerage and other origination costs
421
433
Gross loans and advances 147,904
147,713
Allowance for expected credit losses 5
(750)
(646)
Net loans and advances

147,154 147,067

The Bank has sold residential mortgages to the NZ Branch with a net carrying value of NZ$269 million as at 31 March 2023 (30 September 2022:
NZ$306 million). These assets qualify for derecognition as the Bank does not retain a continuing involvement in the transferred assets.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
NOTES TO THE INTERIM FINANCIAL STATEMENTS
12
5.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 23 30 Sep 22
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
662 88 750
569 77 646
Off-balance sheet commitments
105 5 110
100 5 105
Total 767 93 860
669 82 751
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$m
As at 1 October 2022 199 311 59 77 646
Transfer between stages
19 (20)1 - -
New and increased provisions (net of collective provision releases) (24)10710 37 130
Write-backs --- (9)(9)
Bad debts written-off (excluding recoveries)
--- (16)(16)
Discount unwind reversal
--- (1)(1)
As at 31 March 2023 194 398 70 88 750
Off-balance sheet credit related commitments - undrawn and contingent facilities
Allowance for ECL is included in other provisions.
As at 1 October 2022 66 31 3 5 105
Transfer between stages 2 (2)-- -
New and increased provisions (net of collective provision releases)
-5 -- 5
As at 31 March 2023 68 34 3 5 110
CREDIT IMPAIRMENT CHARGE – INCOME STATEMENT
2023 2022
For the six months ended 31 March NZ$m NZ$m
New and increased provisions
- Collectively assessed
98
(16)
- Individually assessed
37
35
Write-backs
(9)
(22)
Recoveries of amounts previously written-off (5)(17)
Total credit impairment charge / (release) 121 (20)

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




13


KEY JUDGEMENTS AND ESTIMATES
Collectively assessed allowance for expected credit losses
In estimating collectively assessed ECL, the Banking Group 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 judgements and associated assumptions have been made within the context of the uncertainty of how various factors might impact the
global economy, and reflect historical experience and other factors that are considered relevant, including expectations of future events that are
believed to be reasonable under the circumstances. The Banking Group’s ECL estimates are inherently uncertain and, as a result, actual results may
differ from these estimates.
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.
Judgement /
assumption

Description
Considerations for the six months ended
31 March 2023
Determining
when a
significant
increase in
credit risk
(SICR) has
occurred or
reversed
In the measurement of ECL, judgement is involved in
determining 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 SICR trigger points requires
judgement which may have a material impact upon
the size of the ECL allowance. The Banking Group
monitors the effectiveness of SICR criteria on an
ongoing basis.
The Banking Group has continued to adjust ECL this
period to account for expected deterioration in credit-
worthiness of certain customer segments which are
considered particularly vulnerable to economic
pressures such as higher interest rates, elevated
inflation and labour market pressures.
Measuring
both 12-month
and lifetime
credit losses
The probability of default (PD), loss given default
(LGD) and exposure at default (EAD) factors 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 is
relevant for particular lending portfolios and for
determining each portfolio’s point-in -time sensitivity.
In addition, judgement is required where behavioural
characteristics are applied in estimating the lifetime of
a facility which is used in measuring ECL.
The PD, LGD and EAD models are subject to the
Banking Group’s model risk policy that stipulates
periodic model monitoring and re -validation, and
defines approval procedures and authorities
according to model materiality.
There were no material changes to the policies.
Base case
economic
forecast
The Banking Group derives a forward-looking ‘base
case’ economic scenario which reflects our view of
future macroeconomic conditions.
There have been no changes to the types of forward-
looking variables (key economic drivers) used as
model inputs.
As at 31 March 2023, the base case assumptions have
been updated to reflect elevated inflation, continuing
high interest rates, continued cost of living pressures
and tightness in the labour market.
The expected outcomes of key economic drivers for
the base case scenario at 31 March 2023 are described
below under the heading ‘Base case economic
forecast assumptions’.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS


14


KEY JUDGEMENTS AND ESTIMATES
Judgement /
assumption

Description
Considerations for the six months ended
31 March 2023
Probability
weighting of
each economic
scenario (base
case, upside,
downside

and
severe
downside
scenarios)
1

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 assigned probability weightings are subject to a
high degree of inherent uncertainty and therefore the
actual outcomes may be significantly different to
those projected.
The probability weightings for each scenario
remained unchanged from 30 September 2022.
Weightings for current and prior periods are as
detailed in the section below under the heading on
‘Probability weightings’.
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.
Management have continued to apply adjustments to
accommodate uncertainty associated with higher
inflation and interest rates.
In addition, management overlays have been made
for risks particular to business banking.
Management temporary adjustments total NZ$171
million (September 2022: NZ$169 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.

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 macroeconomic conditions, used at 31 March
2023 are set out below. For years beyond the near term forecasts below, the ECL models apply simplified assumptions for the economy to
calculate lifetime loss.

Actual calendar year Forecast calendar year
New Zealand 2022 2023 2024
Gross domestic product (GDP) (annual % change) 2.8% 1.4% -0.1%
Unemployment rate 3.3% 3.9% 5.2%
Residential property prices (annual % change) -13.0% -9.7% 2.2%
Consumer price index (CPI) (annual % change) 7.2% 6.1% 2.9%
The base case economic forecasts are for a continuing slowdown in economic activity. Continued high inflation and tight labour markets are
expected to keep interest rates high and dampen growth over the forecast period.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




15


KEY JUDGEMENTS AND ESTIMATES
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.
Scenario weightings remain the same as those applied in September 2022 as noted in the table 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. The Banking Group considers these weightings to provide estimates of the possible loss outcomes and taking into
account short and long term inter-relationships within the Banking Group’s credit portfolios. The weightings applied are set out below:

31 Mar 23 30 Sep 22
Base 45.0% 45.0%
Upside 0.0% 0.0%
Downside 40.0% 40.0%
Severe downside 15.0% 15.0%
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 the Banking Group should be considered as a best estimate within a range of possible estimates. The
table below illustrates the sensitivity of the Banking Group’s allowance for collectively assessed ECL to key factors used in determining it as at 31
March 2023:

Balance
Sheet
NZ$m
Profit and Loss
Impact
NZ$m
If 1% of Stage 1 facilities were included in Stage 2
778 11
If 1% of Stage 2 facilities were included in Stage 1
766 (1)


100% upside scenario
182 (585)
100% base scenario
310 (458)
100% downside scenario
598 (170)
100% severe downside scenario
1,453 686
Individually assessed allowance for expected credit losses
In estimating individually assessed ECL, the Banking Group 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
and in Note 1 About our interim financial statements.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS


16
6. DEPOSITS AND OTHER BORROWINGS
31 Mar 23 30 Sep 22
NZ$m NZ$m
Term deposits 50,831 46,746
On demand and short term deposits 60,133 62,203
Deposits not bearing interest 19,334 21,381
Total customer deposits
130,298
130,330
Certificates of deposit
1,487
1,639
Commercial paper
2,771
2,955
Securities sold under repurchase agreements
4,782
4,642
Deposits from Immediate Parent Company and NZ Branch
85
76
Deposits and other borrowings 139,423 139,642


7. DEBT ISSUANCES
The Banking Group 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 unsubordinated debt holders.

31 Mar 23 30 Sep 22

NZ$m NZ$m
Senior debt 12,239 13,577
Covered bonds 4,151 4,082
Total unsubordinated debt

16,390
17,659
Subordinated debt


- Additional Tier 1 capital
938
1,941
- Tier 2 capital
1,360
1,423
Total subordinated debt

2,298
3,364
Total debt issued

18,688
21,023
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
priority ranking creditors of the Covered Bond Trust have been satisfied.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
17
8.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 5 Allowance for expected credit losses.
Maximum exposure to c redit r isk
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 c redit risk is the full amount of the committed facilities. For contingent exposures, the maximum
exposure to credit risk is the maximum amount the Banking Group 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 23 30 Sep 22 31 Mar 23 30 Sep 22 31 Mar 23 30 Sep 22
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
On-balance sheet positions
Net loans and advances
147,154
147,067
-
-
147,154
147,067
Other financial assets:
Cash and cash equivalents
12,657
12,575
183
154
12,474
12,421
Settlement balances receivable 516 785 - - 516 785
Collateral paid
576 1,672 - - 576 1,672
Trading securities
5,657 7,228 - - 5,657 7,228
Derivative financial instruments
6,354
15,481
-
-
6,354
15,481
Investment securities
11,211
11,357
-
-
11,211
11,357
Other financial assets
2

835
955
-
-
835
955
Total other financial assets
37,806
50,053
183
154
37,623
49,899
Subtotal 184,960
197,120
183
154
184,777
196,966
Off-balance sheet commitments
Undrawn and contingent facilities
3
29,121 30,187 - - 29,121 30,187
Total
214,081
227,307
183
154
213,898
227,153
1 Coins, notes and cash at bank within cash and cash equivalents were excluded as they do not have credit risk exposure.
2 Other financial assets mainly comprise accrued interest and acceptances.
3 Undrawn 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 the Banking Group’s internal customer credit rating (CCR) to manage the credit quality of financial assets. To enable wider comparisons, the
Banking Group’s CCRs are mapped to external rating agency scales as follows:
Credit quality
description Internal CCR The Banking Group 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

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS


18


Net loans and advances
Stage 3

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
As at 31 March 2023 NZ$m NZ$m NZ$m NZ$m NZ$m
Strong
120,743 3,807 - - 124,550
Satisfactory
15,058 4,702 - - 19,760
Weak
306 2,102 - - 2,408
Defaulted - - 649 148 797
Subtotal 136,107 10,611 649 148 147,515
Allowance for ECL
(194) (398) (70) (88) (750)
Net loans and advances at amortised cost 135,913 10,213 579 60 146,765
Coverage ratio 0.14% 3.75% 10.79% 59.46% 0.51%
Unearned income
(32)
Capitalised brokerage and other origination costs
421
Net carrying amount 147,154

As at 30 September 2022
Strong 123,097 2,678 - - 125,775
Satisfactory 16,327 3,018 - - 19,345
Weak 257 1,201 - - 1,458
Defaulted - - 588 146 734
Subtotal
139,681 6,897 588 146 147,312
Allowance for ECL (199) (311) (59) (77) (646)
Net loans and advances at amortised cost 139,482 6,586 529 69 146,666
Coverage ratio 0.14% 4.51% 10.03% 52.74% 0.44%
Unearned income (32)
Capitalised brokerage and other origination costs 433
Net carrying amount
147,067

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

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
As at 31 March 2023 NZ$m NZ$m NZ$m NZ$m NZ$m
Strong
24,860 178 - - 25,038
Satisfactory 3,391 678 - - 4,069
Weak 8 98 - - 106
Defaulted - - 13 5 18
Gross undrawn and contingent facilities 28,259 954 13 5 29,231
Allowance for ECL included in other provisions
(68) (34) (3) (5) (110)
Net undrawn and contingent facilities 28,191 920 10 - 29,121
Coverage ratio 0.24% 3.56% 23.08% 100.00% 0.38%


As at 30 September 2022
Strong 25,901 224 - - 26,125
Satisfactory 3,368 682 - - 4,050
Weak 8 89 - - 97
Defaulted - - 14 6 20
Gross undrawn and contingent facilities 29,277 995 14 6 30,292
Allowance for ECL included in other provisions (66) (31) (3) (5) (105)
Net undrawn and contingent facilities
29,211 964 11 1 30,187
Coverage ratio
0.23% 3.12% 21.43% 83.33% 0.35%

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




19
9. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Fair value hierarchy
The Banking Group 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 23 30 Sep 22 31 Mar 23 30 Sep 22 31 Mar 23 30 Sep 22 31 Mar 23 30 Sep 22
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Assets







Cash and cash equivalents
1

-
-
1,411
-
-
-
1,411
-
Trading securities
2

3,685
5,565
1,972
1,663
-
-
5,657
7,228
Derivative financial instruments
24
109
6,330
15,372
-
-
6,354
15,481
Investment securities
2

7,544
10,895
3,666
461
1
1
11,211
11,357
Total 11,253 16,569 13,379 17,496 1 1 24,633 34,066
Liabilities
Deposits and other borrowings
1
- - 3,753 2,955 - - 3,753 2,955
Derivative financial instruments
11
8
6,259
13,765
11
12
6,281
13,785
Other financial liabilities
801
364
-
-
-
-
801
364
Total 812
372
10,012
16,720
11
12
10,835
17,104
1 During the six months ended 31 March 2023, within the trading book in its Markets business, a component of the Institutional division, the Banking Group commenced the management of
repurchase agreements and associated reverse repurchase agreements on a fair value basis. This resulted in repurchase and associated reverse repurchase agreements being recognised
and measured at fair value through profit and loss.
2 During the six months ended 31 March 2023, NZ$2,882 million of assets were transferred from Level 1 to Level 2 due to a change of the observability of bond valuation inputs. There were
no other material transfers during the period. Transfers into and out of levels are measured at the beginning of the reporting period in which the transfer occurred.

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 23 30 Sep 22 31 Mar 23 30 Sep 22
NZ$m NZ$m NZ$m NZ$m
Financial assets

Net loans and advances
1

147,154
147,067
146,012
145,459
Total

147,154
147,067
146,012
145,459
Financial liabilities





Deposits and other borrowings
2
135,670 136,687 135,547 136,493
Debt issuances
1
18,688 21,023 18,624 20,952
Total 154,358
157,710
154,171
157,445
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 and securities sold under repurchase agreements (Note 6 Deposits and other borrowings) designated at fair value through profit or loss.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS


20
10. COMMITMENTS AND CONTINGENT LIABILITIES


31 Mar 23 30 Sep 22
Credit related commitments and contingencies NZ$m NZ$m
Contract amount of:


Undrawn facilities
26,402
27,310
Guarantees and letters of credit 1,181 1,225
Performance related contingencies 1,648 1,757
Total 29,231
30,292

The Banking Group 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 the Banking Group. Where relevant, expert legal advice has been
obtained and, in the light of such advice, 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 the Banking Group.
REGULATORY AND CUSTOMER EXPOSURES
The Banking Group regularly engages with its regulators in relation to regulatory investigations, surveillance and reviews, reportable situations, civil
enforcement actions (whether by court action or otherwise), formal and informal inquiries and regulatory supervisory activities both in New Zealand
and globally. The Banking Group has received various notices and requests for information from its regulators as part of both industry-wide and
Banking Group-specific reviews, and has also made disclosures to its regulators at its own instigation. The nature of these interactions can be wide
ranging and, for example, may include a range of matters including responsible lending practices, regulated lending 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, privacy obligations and information security, business continuity management, 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.
In 2021, the Bank self-identified and notified three prescribed transaction reporting (PTR) matters to RBNZ, where transaction reports had not been
filed within the prescribed timeframe. 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. In April 2023, RBNZ notified the Bank that it had closed its investigations into these
breaches, and imposed some additional reporting obligations on the Bank, to be provided by no later than 31 October 2023.
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. In July 2022, the High Court ruled that the proceedings shall proceed as an opt-out representative action brought by one representative plaintiff
on behalf of a class, being customers who entered into a home loan or personal loan with the Bank between 6 June 2015 and 28 May 2016 and
requested a variation to that loan during that period. All parties have appealed aspects of that decision.
WARRANTIES AND INDEMNITIES
The Banking Group 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, some of which are currently active. The outcomes and total costs associated with these exposures remain uncertain.

ANZ BANK NEW ZEALAND LIMITED
LIMITED ASSURANCE REPORT
21
INDEPENDENT AUDITOR’S REVIEW REPORT
TO THE SHAREHOLDER OF ANZ BANK NEW ZEALAND LIMITED
REPORT ON THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
C
ONCLUSION
We have completed a review of the accompanying consolidated interim financial statements of ANZ Bank New Zealand Limited (the Bank) and its
subsidiaries (the Banking Group) on pages 4 to 20 which comprise:
•the consolidated statement of financial position as at 31 March 2023;
•the consolidated 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.
Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial statements have not
been prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting (NZ IAS 34) and IAS 34 Interim Financial Reporting
(IAS 34).
B
ASIS FOR CONCLUSION
A review of the consolidated interim financial statements 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 the Banking Group, 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 the Banking Group 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 the Banking Group on normal terms within the ordinary course of trading activities of the business of the Banking Group. These matters
have not impaired our independence as reviewer of the Banking Group. The firm has no other relationship with, or interest in, the Banking Group.
USE OF THIS INDEPENDENT REVIEW REPORT
This independent review report is made solely to the Bank’s shareholder. Our review work has been undertaken so that we might state to the
shareholder 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 shareholder for our review work, this independent review
report, or any of the opinions we have formed.
RESPONSIBILITIES OF THE DIRECTORS FOR THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
The Directors, on behalf of the Banking Group, are responsible for:
•the preparation and fair presentation of the consolidated interim financial statements in accordance with NZ IAS 34 and IAS 34;
•implementing necessary internal control to enable the preparation of a consolidated interim financial statements that are 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 CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the consolidated interim financial statements 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 our attention that causes us to believe that the
consolidated interim financial statements are not prepared, in all material respects, in accordance with NZ IAS 34 and IAS 34.
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) and consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not
express an audit opinion on the Banking Group’s consolidated interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Jamie Munro.
K
PMG
Auckland
8 May 2023

22
REGISTERED BANK
DISCLOSURES
This section contains the additional disclosures required by the Registered Bank Disclosure Statements
(New Zealand Incorporated Registered Banks) Order 2014.
Section Order reference Page
B1. General disclosures Schedule 3 23
B2. Additional financial disclosures Schedule 5 24
B3. Asset quality Schedule 7 29
B4. Capital adequacy under the internal models based approach, Schedule 11 34
and regulatory liquidity ratios
B5. Concentration of credit exposures to individual counterparties Schedule 13 41
B6. Insurance business Schedule 16 41

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


23
B1. GENERAL DISCLOSURES
Details of the ultimate non-bank holding company
On 3 January 2023, the Ultimate Parent Bank established, by a scheme of arrangement, a non-operating holding company, ANZ Group Holdings
Limited, as the new listed parent holding company of the ANZ Group and implemented a restructure to separate the Overseas Banking Group’s
banking and certain non-banking businesses into the ANZ bank group and ANZ non-bank Group. The ANZ bank group comprises the majority of the
businesses and subsidiaries that were held in Australia and New Zealand Banking Group Limited prior to the restructure. The ANZ non-bank group
comprises banking-adjacent businesses developed or acquired by the ANZ Group to focus on bringing new technology and banking-adjacent
services to its customers, and a separate service company.
The address for service of the Ultimate Non-Bank Holding Company is ANZ Centre, Melbourne, Level 9, 833 Collins Street, Docklands, Victoria 3008,
Australia.
The Ultimate Parent Bank is unchanged.
Guarantees
The Bank has guaranteed the payment of interest and principal of covered bonds issued by its subsidiary ANZ New Zealand (Int’l) Limited. This
obligation is 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 Guarantor’s address for service is Level 16, SAP Tower, 151 Queen Street, Auckland 1010, New Zealand. The Covered
Bond Guarantor is not a member of the Banking Group and has no credit ratings applicable to its long term senior unsecured obligations. The covered
bonds have been assigned a long term rating of Aaa and AAA by Moody’s Investors Service and Fitch Ratings respectively. Refer to page 16 for further
details, and to page 24 for the amount of assets of the ANZ Covered Bond Trust pledged as security for covered bonds.

No other material obligations of the Bank are guaranteed as at 8 May 2023.
Changes in the Bank’s Board of Directors
Mark Verbiest resigned as a Non-Executive Director on 31 December 2022 and Mark Tume was appointed as a Non-Executive Director on 1 January
2023. As at 8 May 2023, there have been no other changes to the Directors of the Bank since 30 September 2022, 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 the Banking Group that may have a material adverse effect
on the Bank or the Banking Group is included in Note 10 Commitments and contingent liabilities.
Credit rating
The Bank has three credit ratings, which are applicable to its long-term senior unsecured obligations that are payable in New Zealand in New Zealand
dollars.
As at 8 May 2023, the 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
A1 Outlook Stable
Other material matters
Climate related disclosures
The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 amended the Financial Markets Conduct Act 2013 with
effect from 27 October 2022. The amendments will require the Banking Group to produce climate statements from the year ending 30 September
2024, in accordance with climate reporting standards issued by the External Reporting Board. The Banking Group is actively preparing to produce
climate statements in accordance with this timetable.
Revised RBNZ capital requirements
RBNZ has revised its 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 still being implemented 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 requirements are being progressively implemented until 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; and a 5.5% capital conservation buffer.
• Contingent capital instruments will no longer be treated as eligible regulatory capital. As at 31 March 2023, the Bank had NZ$1,238 million of
AT1 instruments that will progressively lose eligible regulatory capital treatment over the transition period to 1 July 2028.
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.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


24
B2. ADDITIONAL FINANCIAL DISCLOSURES
Additional information on the balance sheet

As at 31 March 2023

NZ$m
Total interest earning and discount bearing assets 177,541
Total interest and discount bearing liabilities 142,804
Total amounts due from related entities
3,986
Total amounts due to related entities
4,958

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 2023
NZ$m
Securities sold under agreements to repurchase
980
Residential mortgages pledged as security for repurchase agreements with RBNZ
4,844
Total assets of the ANZNZ Covered Bond Trust pledged as security for covered bonds
9,818

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. The Banking Group 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).

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




25
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 2023 NZ$m NZ$m NZ$m NZ$m
New Zealand residents
Agriculture 15,422 64 991 16,477
Forestry and fishing, agriculture services 585 4 122 711
Mining 195 10 257 462
Manufacturing
2,711 140 1,925 4,776
Electricity, gas, water and waste services 804 234 1,400 2,438
Construction 1,245 6 932 2,183
Wholesale trade 1,628 51 1,712 3,391
Retail trade and accommodation 2,737 19 748 3,504
Transport, postal and warehousing 899 49 749 1,697
Finance and insurance services
920 14,246 1,697 16,863
Rental, hiring & real estate services
38,076 2,024 2,140 42,240
Professional, scientific, technical, administrative and support services 903 8 448 1,359
Public administration and safety 212 9,496 806 10,514
Health care and social assistance 1,063 23 396 1,482
Households
76,806 314 13,516 90,636
Other
1

1,125 91 1,120 2,336
Subtotal
145,331 26,779 28,959 201,069
Overseas

Finance and insurance services
151 10,798 272 11,221
Households
1,431 6 - 1,437
All other non-residents
602 40 - 642
Subtotal 2,184 10,844 272 13,300
Gross subtotal 147,515 37,623 29,231 214,369
Allowance for ECL
(750) - (110) (860)
Subtotal 146,765 37,623 29,121 213,509
Unearned income
(32) - - (32)
Capitalised brokerage and other origination costs 421 - - 421
Maximum exposure to credit risk 147,154 37,623 29,121 213,898
1 Other includes exposures to information media and telecommunications, education and training; arts and recreation services; and other services.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


26
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 2023 Note NZ$m
Funding composition

Customer deposits 6
130,298
Wholesale funding


Debt issuances
18,688
Certificates of deposit and commercial paper
4,258
Other borrowings 4,867
Total wholesale funding
27,813
Total deposits and wholesale funding 158,111



Customer deposits by industry - New Zealand residents


Agriculture, forestry and fishing 4,406
Mining
236
Manufacturing
2,701
Construction
2,893
Wholesale trade
2,507
Retail trade and accommodation 2,215
Transport, postal and warehousing
1,709
Financial and insurance services
13,237
Rental, hiring and real estate services 3,674
Professional, scientific, technical, administrative and support services
6,881
Public administration and safety
1,521
Health care and social assistance
1,354
Arts, recreation and other services
2,267
Households 72,365
Other
1

2,714
Subtotal
120,680
Customer deposits by industry - overseas
Households
8,830
All other non-residents
788
Subtotal
9,618
Total customer deposits
130,298
Wholesale funding (financial and insurance services industry)
New Zealand
9,072
Overseas
18,741
Total wholesale funding
27,813
Total deposits and wholesale funding

158,111

Concentrations of funding by geography


New Zealand 129,752
Australia
1,531
United States
10,877
Europe 9,092
Other countries
6,859
Total deposits and wholesale funding 158,111
1 Other includes electricity, gas, water and waste services; information media and telecommunications; and education and training.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




27
Additional information on interest rate sensitivity
The following table represents the interest rate sensitivity of the Banking Group'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 2023 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Assets

Cash and cash equivalents 12,657 12,282 - - - - 375
Settlement balances receivable
516 - - - - - 516
Collateral paid
576 576 - - - - -
Trading securities
5,657 1,088 208 60 292 4,009 -
Derivative financial instruments 6,354 - - - - - 6,354
Investment securities 11,211 202 397 479 306 9,826 1
Net loans and advances 147,154 62,831 16,461 26,617 31,800 10,107 (662)
Other financial assets 835 - - - - - 835
Total financial assets 184,960 76,979 17,066 27,156 32,398 23,942 7,419
Liabilities
Settlement balances payable
3,410 1,963 - - - - 1,447
Collateral received 1,056 1,056 - - - - -
Deposits and other borrowings 139,423 87,500 14,883 14,292 2,103 1,311 19,334
Derivative financial instruments 6,281 - - - - - 6,281
Debt issuances 18,688 2,213 1,765 3,226 1,874 9,610 -
Lease liabilities
207 12 11 23 43 118 -
Other financial liabilities
1,480 801 - - - - 679
Total financial liabilities
170,545 93,545 16,659 17,541 4,020 11,039 27,741
Hedging instruments - 7,783 6,801 1,239 (18,006) 2,183 -
Interest sensitivity gap
14,415 (8,783) 7,208 10,854 10,372 15,086 (20,322)
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 2023 within relevant maturity groupings. All
outstanding debt issuances are profiled on the earliest date on which the Banking Group 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 2023 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Settlement balances payable 2,702 761 - - - 3,463
Collateral received
- 1,056 - - - 1,056
Deposits and other borrowings
79,471 23,607 30,758 7,686 - 141,522
Derivative financial liabilities (trading)
- 6,179 - - - 6,179
Debt issuances
1

- 535 5,655 12,614 2,211 21,015
Lease liabilities - 13 38 143 30 224
Other financial liabilities
- 76 24 647 449 1,196
Derivative financial instruments
(balance sheet management)

- gross inflows - 1,754 5,894 7,700 838 16,186
- gross outflows
- (1,720) (5,857) (7,930) (888) (16,395)
1 Any callable wholesale debt instruments have been included at their next call date.

At 31 March 2023, NZ$29,231 million of its credit related commitments and contingent liabilities mature in less than 1 year, based on the earliest date
on which the Banking Group may be required to pay.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


28
Liquidity portfolio management
The Banking Group holds a diversified portfolio of cash and high quality liquid securities primarily to support liquidity risk management. The size of the
Banking Group’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 2023 NZ$m
Central and local government bonds
7,130
Government treasury bills
1,462
Certificates of deposit
275
Other bonds
7,517
Securities eligible to be accepted as collateral in repurchase transactions
16,384
Cash and balances with central banks
10,949
Total liquidity portfolio 27,333
Assets held in the Banking Group’s liquidity portfolio are all denominated in New Zealand dollars and include balances held with RBNZ and securities
issued by the New Zealand Government, supranational agencies, highly rated banks state owned enterprises, local authorities (including through a
funding authority) and highly rated 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$10,613 million at
31 March 2023.
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%.
• Between November 2020 and December 2022, RBNZ made funds available under the FLP 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).
As at 31 March 2023, the Bank had drawn NZ$300 million under the TLF and NZ$3,500 million under the FLP. These amounts are included in securities
sold under repurchase agreements in Note 6 Deposits and other borrowings.
Reconciliation of mortgage related amounts

As at 31 March 2023

Note NZ$m
Term loans - housing
1
4 104,324
Less: housing loans made to corporate customers (1,307)
Add: unsettled re-purchases of mortgages from the NZ Branch 2
On-balance sheet residential mortgage exposures subject to the IRB approach (per asset quality and LVR analysis) B3, B4
103,019
Add: off-balance sheet residential mortgage exposures subject to the IRB approach (per asset quality and LVR analysis) B3, B4
9,273
Total residential mortgage exposures subject to the IRB approach (per LVR analysis)
B4
112,292
1 Term loans – housing includes loans secured over residential property for owner-occupier, residential property investment and business purposes.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




29
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 5 Allowance for expected credit losses and Note 8 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 2022 199 311 59 77 646
Transfer between stages
19 (20) 1 - -
New and increased provisions (net of collective provision releases)
(24) 107 10 37 130
Write-backs - - - (9) (9)
Recoveries of amounts previously written off - - - (5) (5)
Credit impairment charge / (release)
(5) 87 11 23 116
Bad debts written-off (excluding recoveries)
- - - (16) (16)
Add back recoveries of amounts previously written off
- - - 5 5
Discount unwind
- - - (1) (1)
As at 31 March 2023 194 398 70 88 750

Off-balance sheet credit related commitments - total
As at 1 October 2022 66 31 3 5 105
Transfer between stages
2 (2) - - -
New and increased provisions (net of collective provision releases) - 5 - - 5
Credit impairment charge
2 3 - - 5
As at 31 March 2023 68 34 3 5 110

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



Gross loans and advances - total
As at 1 October 2022 139,681 6,897 588 146 147,312
Net transfers in to each stage - 4,108 180 17 4,305
Amounts drawn from new or existing facilities 22,555 718 26 53 23,352
Additions 22,555 4,826 206 70 27,657
Net transfers out of each stage
(4,305) - - - (4,305)
Amounts repaid
(21,824) (1,112) (145) (52) (23,133)
Deletions
(26,129) (1,112) (145) (52) (27,438)
Amounts written off
- - - (16) (16)
As at 31 March 2023 136,107 10,611 649 148 147,515
Loss allowance as at 31 March 2023 194 398 70 88 750


Off-balance sheet credit related commitments - total
As at 1 October 2022 29,277 995 14 6 30,292
Net transfers in to each stage
- 53 3 - 56
New and increased facilities and drawn amounts repaid 6,023 180 3 15 6,221
Additions 6,023 233 6 15 6,277
Net transfers out of each stage (56) - - - (56)
Reduced facilities and amounts drawn (6,985) (274) (7) (16) (7,282)
Deletions (7,041) (274) (7) (16) (7,338)
As at 31 March 2023 28,259 954 13 5 29,231
Loss allowance as at 31 March 2023 68 34 3 5 110
Explanation of how changes in the gross carrying amounts of gross loans and advances contributed to changes in loss allowance
Overall, loss allowances are 0.49% of gross balances as at 31 March 2023, up from 0.42% as at 30 September 2022. The NZ$109 million (14.5%) increase
in loss allowances was driven by an increase in the proportion of gross balances in Stage 2, partially offset by changes in the forward-looking
economic scenarios as described in Note 5 Allowance for expected credit losses.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
REGISTERED BANK DISCLOSURES
30
Movements in components of loss allowance - residential mortgages
Stage 3
Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
Net loans and advances - residential mortgages NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2022 63 81 32 10 186
Transfer between stages 12 (13)1 - -
New and increased provisions (net of collective provision releases) (2)50 12 2 62
Write-backs --- (1)(1)
Recoveries of amounts previously written off
--- - -
Credit impairment charge
10 37 13 1 61
Bad debts written-off (excluding recoveries)
- - - - -
Add back recoveries of amounts previously written off
- - - - -
Discount unwind
- - - - -
As at 31 March 2023 73 118 45 11 247
Off-balance sheet credit related commitments - residential mortgages
As at 1 October 2022 - - - - -
Transfer between stages
- - - - -
New and increased provisions (net of collective provision releases) - - - - -
Credit impairment charge
- - - - -
As at 31 March 2023 - - - - -
Impacts of changes in gross financial assets on loss allowances - residential mortgages
Gross loans and advances - residential mortgages
As at 1 October 2022 99,203 2,963 392 15 102,573
Net transfers in to each stage -1,712161 7 1,880
Amounts drawn from new or existing facilities 9,286 1478 3 9,444
Additions
9,286 1,859 169 10 11,324
Net transfers out of each stage
(1,880) - - - (1,880)
Amounts repaid
(8,707) (286)-(5)(8,998)
Deletions
(10,587) (286)-(5)(10,878)
Amounts written off
- - -- -
As at 31 March 2023 97,902 4,536 561 20 103,019
Loss allowance as at 31 March 2023 73 118 45 11 247
Off-balance sheet credit related commitments - residential mortgages
As at 1 October 2022 9,049 58 1 -9,108
Net transfers in to each stage
-19 - - 19
New and increased facilities and drawn amounts repaid 1,800 7 - - 1,807
Additions 1,800 26 - - 1,826
Net transfers out of each stage (19)-- -(19)
Reduced facilities and amounts drawn (1,631) (11)-- (1,642)
Deletions (1,650) (11)-- (1,661)
As at 31 March 2023 9,199 73 1 -9,273
Loss allowance as at 31 March 2023 - - - - -
E
xplanation of how changes in the gross carrying amounts of residential mortgages contributed to changes in loss allowance
The NZ$61 million (32.8%) in crease in loss allowances on residential mortgage exposures is primarily d riven by an increase in the proportion of gross
balances in Stage 2 and Stage 3. Overall loss allowances and individually impaired exposures remain low, reflecting that approximately 94% of on-
balance sheet residential mortgage exposures have loan to valuation ratios not exceeding 80% (refer to page 38).

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




31
Movements in components of loss allowance - other retail exposures



Stage 3

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
Net loans and advances - other retail exposures NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2022 10 43 17 5 75
Transfer between stages 3 (3) - - -
New and increased provisions (net of collective provision releases) (1) 5 3 15 22
Write-backs - - - (2) (2)
Recoveries of amounts previously written off
- - - (4) (4)
Credit impairment charge
2 2 3 9 16
Bad debts written-off (excluding recoveries)
- - - (14) (14)
Add back recoveries of amounts previously written off
- - - 4 4
Discount unwind
- - - - -
As at 31 March 2023 12 45 20 4 81

Off-balance sheet credit related commitments - other retail exposures
As at 1 October 2022 13 10 3 - 26
Transfer between stages
2 (2) - - -
New and increased provisions (net of collective provision releases) (2) 2 - - -
Credit impairment charge
- - - - -
As at 31 March 2023 13 10 3 - 26

Impacts of changes in gross financial assets on loss allowances - other retail exposures



Gross loans and advances - other retail exposures
As at 1 October 2022 2,194 111 31 8 2,344
Net transfers in to each stage - 14 9 1 24
Amounts drawn from new or existing facilities 244 7 2 15 268
Additions
244 21 11 16 292
Net transfers out of each stage
(24) - - - (24)
Amounts repaid
(262) (7) - (2) (271)
Deletions
(286) (7) - (2) (295)
Amounts written off
- - - (14) (14)
As at 31 March 2023 2,152 125 42 8 2,327
Loss allowance as at 31 March 2023 12 45 20 4 81


Off-balance sheet credit related commitments - other retail exposures
As at 1 October 2022 4,759 27 10 - 4,796
Net transfers in to each stage
- 6 3 - 9
New and increased facilities and drawn amounts repaid 456 5 1 - 462
Additions 456 11 4 - 471
Net transfers out of each stage (9) - - - (9)
Reduced facilities and amounts drawn (552) (8) (4) - (564)
Deletions (561) (8) (4) - (573)
As at 31 March 2023 4,654 30 10 - 4,694
Loss allowance as at 31 March 2023 13 10 3 - 26

Explanation of how changes in the gross carrying amounts of other retail exposures contributed to changes in loss allowance
The NZ$6 million (5.9%) increase in loss allowances is primarily driven by an increase in the proportion of gross balances in Stage 2 and Stage 3,
partially offset by changes in the forward-looking economic scenarios as described in Note 5 Allowance for expected credit losses.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


32
Movements in components of loss allowance - corporate exposures
1




Stage 3

Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
Net loans and advances - corporate exposures NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2022 126 187 10 62 385
Transfer between stages 4 (4) - - -
New and increased provisions (net of collective provision releases) (21) 52 (5) 20 46
Write-backs - - - (6) (6)
Recoveries of amounts previously written off
- - - (1) (1)
Credit impairment charge / (release)
(17) 48 (5) 13 39
Bad debts written-off (excluding recoveries)
- - - (2) (2)
Add back recoveries of amounts previously written off
- - - 1 1
Discount unwind
- - - (1) (1)
As at 31 March 2023 109 235 5 73 422

Off-balance sheet credit related commitments - corporate exposures
As at 1 October 2022 53 21 - 5 79
Transfer between stages
- - - - -
New and increased provisions (net of collective provision releases) 2 3 - - 5
Credit impairment charge
2 3 - - 5
As at 31 March 2023 55 24 - 5 84

Impacts of changes in gross financial assets on loss allowances - corporate exposures



Gross loans and advances - corporate exposures
As at 1 October 2022 38,284 3,823 165 123 42,395
Net transfers in to each stage - 2,382 10 9 2,401
Amounts drawn from new or existing facilities 13,025 564 16 35 13,640
Additions
13,025 2,946 26 44 16,041
Net transfers out of each stage
(2,401) - - - (2,401)
Amounts repaid
(12,855) (819) (145) (45) (13,864)
Deletions
(15,256) (819) (145) (45) (16,265)
Amounts written off
- - - (2) (2)
As at 31 March 2023 36,053 5,950 46 120 42,169
Loss allowance as at 31 March 2023 109 235 5 73 422


Off-balance sheet credit related commitments - corporate exposures
As at 1 October 2022 15,469 910 3 6 16,388
Net transfers in to each stage
- 28 - - 28
New and increased facilities and drawn amounts repaid 3,767 168 2 15 3,952
Additions 3,767 196 2 15 3,980
Net transfers out of each stage (28) - - - (28)
Reduced facilities and amounts drawn (4,802) (255) (3) (16) (5,076)
Deletions (4,830) (255) (3) (16) (5,104)
As at 31 March 2023 14,406 851 2 5 15,264
Loss allowance as at 31 March 2023 55 24 - 5 84
1 Also includes all other non-retail exposure classes in net loans and advances and off balance sheet credit related commitments to reconcile to the respective totals for the Banking Group.

Explanation of how changes in the gross carrying amounts of corporate exposures contributed to changes in loss allowance
The NZ$42 million (9.1%) increase in loss allowances is driven by an increase in the proportion of gross balances in Stage 2, partially offset by changes
in the forward-looking economic scenarios as described in Note 5 Allowance for expected credit losses.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




33
Past due assets and other asset quality information

Residential
mortgages
Other retail
exposures
Corporate
exposures Total
As at 31 March 2023 NZ$m NZ$m NZ$m NZ$m
Past due assets
Less than 30 days past due 610 91 354 1,055
At least 30 days but less than 60 days past due 345 13 210 568
At least 60 days but less than 90 days past due 155 6 5 166
At least 90 days past due
462 21 17 500
Total past due but not individually impaired 1,572 131 586 2,289

Other asset quality information
Undrawn facilities with individually impaired customers - - 5 5
Other assets under administration
3 1 - 4
The Banking Group does not have any loans and advances designated at fair value.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


34
B4. CAPITAL ADEQUACY UNDER THE INTERNAL MODELS BASED APPROACH, AND REGULATORY
LIQUIDITY RATIOS
RBNZ capital ratios

RBNZ minimum Banking Group
Bank
(Solo Consolidated)
As at 31 March 2023 2022 2023 2022

2023 2022
Common equity tier 1 capital 4.5% 4.5% 12.2% 12.4% 12.0% 12.2%
Tier 1 capital 6.0% 6.0% 13.8% 14.5% 13.6% 14.3%
Total capital 8.0% 8.0% 15.2% 15.1% 15.0% 14.9%
Prudential capital buffer ratio 3.5% 2.5% 7.2% 7.1% n/a n/a

Capital

As at 31 March 2023 NZ$m
Tier 1 capital
Common equity tier 1 (CET1) capital

Paid up ordinary shares issued by the Bank
11,588
Retained earnings (net of appropriations)
1

5,416
Accumulated other comprehensive income and other disclosed reserves
2

19
Less deductions from common equity tier 1 capital

Goodwill and intangible assets, net of associated deferred tax liabilities
(3,096)
Deferred tax assets less deferred tax liabilities relating to temporary differences
(378)
Cash flow hedge reserve
(26)
Defined benefit superannuation plan surplus
(15)
Expected losses to the extent greater than total eligible allowances for impairment
(42)
Common equity tier 1 capital
13,466
Additional tier 1 (AT1) capital
NZD 550m preference shares
3
550
Transitional AT1 capital instruments
NZD 300m preference shares
3
300
NZD 938m ANZ New Zealand Internal Capital Notes (ANZ NZ ICN2)
4
938
Additional tier 1 capital 1,788
Total tier 1 capital 15,254
Tier 2 capital


NZD 600m subordinated notes
4

600
USD 500m subordinated notes
4

796
Eligible impairment allowance in excess of expected loss
125
Tier 2 capital
1,521
Total capital

16,775
1 Includes a deduction for dividends on AT1 capital instruments approved by the Bank’s board, but not yet paid as at 31 March 2023, as required by BPR110 Capital Definitions. These
dividends are not recognised under NZ GAAP because the payment of the dividends remains at the Bank’s discretion until payment is made.
2 Includes the cash flow hedging reserve of NZ$26 million less the FVOCI reserve of NZ$7 million as at 31 March 2023.
3 Classified as equity on the balance sheet under NZ GAAP.
4 Classified as a liability on the balance sheet under NZ GAAP.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




35
Capital requirements of the Banking Group

Total
exposure
after credit
risk
mitigation
Risk
weighted
exposure or
implied risk
weighted
exposure
Total capital
requirement
As at 31 March 2023 NZ$m NZ$m NZ$m
Exposures subject to internal ratings based approach
165,158 52,360 4,189
Specialised lending exposures subject to slotting approach
13,111 13,912 1,113
Exposures subject to standardised approach
35,008 4,357 349
Credit risk supervisory adjustment
n/a 22,616 1,809
Output floor balancing item
n/a - -
Total credit risk
213,277 93,245 7,460
Market risk n/a 5,605 448
Operational risk, calculated using the standardised approach n/a 11,565 925
Total n/a 110,415 8,833

Capital structure
Ordinary shares– CET1 capital
Ordinary shares have no par value. They entitle holders to receive dividends, or proceeds available on winding up of the Bank, in proportion to the
number of fully paid ordinary shares held. They are recognised at the amount paid per ordinary share net of directly attributable costs. Every holder of
fully paid ordinary shares present at a meeting in person, or by proxy, is entitled to: on a show of hands, one vote; and on a poll, one vote, for each
share held.
Preference shares – AT1 capital instruments
Preference shares do not carry any voting rights. They are wholly classified as equity instruments as there is no contractual obligation for the Bank to
either deliver cash or another financial instrument or to exchange financial instruments on a potentially unfavourable basis.
In the event of liquidation, holders of preference shares are entitled to available subscribed capital per share, pari passu with all holders of existing
preference shares and AT1 capital notes, in priority to all holders of ordinary shares. They have no entitlement to participate in further distribution of
profits or assets.
There are two classes of preference shares: preference shares issued in 2013 and perpetual preference shares issued in 2022.
2022 preference shares – NZD 550 million
Perpetual preference shares (PPS) are issued to parties outside of the Overseas Banking Group. As at 31 March 2023, the PPS carried a BBB credit rating
from S&P Global Ratings. The key terms of the PPS are as follows:
PPS dividends are payable at the discretion of the Directors of the Bank and are non-cumulative. The Bank must not authorise or pay a dividend on its
ordinary shares, acquire its ordinary shares or otherwise undertake a capital reduction in respect of its ordinary shares until the next PPS dividend
payment date if a PPS dividend is not paid.
Should the Bank elect to pay a PPS dividend, the PPS dividend is 6.95% per annum until 18 July 2028 and a floating rate equal to the aggregate of the
New Zealand 3 month bank bill rate plus 3.25%, multiplied by one minus the New Zealand company tax rate (where the PPS dividend is fully imputed)
thereafter, with PPS dividend payments scheduled to be paid on 18 January, 18 April, 18 July and 18 October each year.
Holders of PPS have no right to require that the PPS be redeemed. The Bank may at its option redeem all of the PPS on an optional redemption date
(each PPS dividend payment date from 18 July 2028); or at any time following the occurrence of a tax event or regulatory event, in each case subject
to prior written approval of RBNZ and other conditions being met.
Transitional AT1 capital instruments
RBNZ has revised its capital adequacy requirements for New Zealand banks, which are being implemented from October 2021 to July 2028. Under the
revised requirements, the AT1 capital notes and 2013 preference shares are subject to a progressive reduction in their regulatory capital recognition.
Fixing the base at the aggregate nominal amount of such instruments outstanding as at 30 September 2021 (NZ$2,741 million), their aggregate
recognition is capped at 75% from 1 January 2023; 62.5% from 1 January 2024; 50% from 1 January 2025; 37.5% from 1 January 2026; 25% from 1
January 2027; 12.5% from 1 January 2028; and from 1 July 2028 onwards these instruments will not be included in regulatory capital.
The Bank has determined that a regulatory event has occurred in respect of these transitional AT1 capital instruments. The occurrence of a regulatory
event means that the Bank may choose to redeem the transitional AT1 capital instruments at its discretion. Any redemption of the transitional AT1
capital instruments is subject to certain conditions, including prior written approval of RBNZ. As at 8 May 2023, no decision has been made on
whether the Bank will redeem the transitional AT1 capital instruments that were outstanding at 31 March 2023.
2013 preference shares – NZD 300 million
The 2013 preference shares (PS) are issued to the Immediate Parent Company. The key terms of the PS are as follows:

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


36
PS dividends are payable at the discretion of the Directors of the Bank and are non-cumulative. The Bank must not resolve to pay any dividend or
make any other distribution on its ordinary shares until the next PS dividend payment date if a PS dividend is not paid.
Should the Bank elect to pay a PS dividend, the PS dividend is based on a floating rate equal to the aggregate of the New Zealand 6 month bank bill
rate plus 3.25%, multiplied by one minus the New Zealand company tax rate (where the PS dividend is fully imputed), with PS dividend payments due
on 1 March and 1 September each year.
The PS are redeemable, subject to prior written approval of RBNZ. The PS may be redeemed for nil consideration should a non-viability trigger event
occur.
AT1 capital notes
AT1 capital notes are fully paid convertible non-cumulative perpetual subordinated notes. Holders of AT1 capital notes do not have any right to vote
in general meetings of the Bank.
AT1 capital notes are classified as debt given there are circumstances beyond the Bank’s control where the principal is converted into a variable
number of ordinary shares of the Bank.
Interest payments on the AT1 capital notes are non-cumulative and subject to the issuer’s absolute discretion and certain payment conditions
(including regulatory requirements).
Where specified, AT1 capital notes provide the Bank with a redemption option on specified dates and a redemption or conversion option in certain
other circumstances. Redemption is subject to RBNZ’s prior written approval.
The AT1 capital notes will immediately convert into a variable number of ordinary shares of the Bank (based on the net assets per share in the Bank’s
most recently published Disclosure Statement) if:
• the Banking Group’s common equity tier 1 capital ratio is equal to or less than 5.125% - known as a Common Equity Capital Trigger Event; or
• RBNZ directs the Bank to convert or write-off the notes or a statutory manager is appointed to the Bank and decides that the Bank must convert
or write-off the notes.
NZ$1,003 million of AT1 capital notes were redeemed on 24 March 2023.
The table below shows the key details of the AT1 capital notes on issue at 31 March 2023:

ANZ NZ ICN2
Issue date 15 June 2016
Issue amount NZ$938 million
Face value NZ$100
Interest frequency Semi-annually in arrears
Interest rate Floating rate: (New Zealand 6 month Bank Bill rate + 6.29%)
Issuer's early redemption option 15 June 2026 and each 5th anniversary
Mandatory conversion date n/a
Common equity capital trigger event Yes
Non-viability trigger event Yes

Tier 2 capital
Tier 2 capital notes are fully paid unsecured subordinated notes. Interest payments are subject to the Bank being solvent at the time of, and
immediately following, the payment. Unpaid interest accumulates, and will be paid at the earlier of when the Bank is solvent again or at maturity. The
Bank may repay the notes early on the dates specified below, or in certain other circumstances (such as a tax or regulatory event). Early repayment is
subject to certain conditions, including approval from RBNZ.

Next optional call date - Interest Interest Credit
31 Mar 23
Currency Face value Issue date Maturity subject to RBNZ's approval rate reset date rating
2
NZ$m
NZD 600m Sep 2021 Sep 2031 Sep 2026 2.999% Sep 2026 A-
595
USD 500m Aug 2022 Aug 2032 Aug 2027 5.548% Aug 2027 A-
765
Total Tier 2 capital
1


1,360
1 Carrying amounts are net of issuance costs and fair value hedging adjustments.
2 Credit rating assigned by S&P Global Ratings.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
37
Credit risk subject to the Internal Ratings Based (IRB) approach
IRB credit exposures by exposure class and customer credit rating
Probability
of default Total value
Exposure
at default
Exposure-
weighted
LGD used
for the
capital
calculation
Exposure-
weighted
risk weight
Risk
weighted
assets
Minimum
capital
requirement
As at 31 March 2023 % NZ$m NZ$m % % NZ$m NZ$m
Corporate
0 - 2 0.05 67,323 7,812 59 29 2,698 216
3 - 4 0.32 55,058 23,907 37 40 11,611 929
5 1.01 10,975 9,466 32 54 6,112 489
6
2.21 3,075 2,841 34 75 2,573 206
7 - 8
14.88 2,791 900 39 164 1,768 141
Default
100.00 187 189 36 94 211 17
Total corporate exposures
1

1.25 139,409 45,115 39 46 24,973 1,998
Residential mortgages
0 - 3 0.20 42,229 42,631 12 5 2,672 214
4 0.45 45,536 45,660 19 16 8,509 681
5 0.90 21,198 21,264 23 31 8,009 641
6
1.99 2,663 2,667 25 59 1,897 152
7 - 8
4.82 126 126 26 94 142 11
Default
100.00 540 540 15 6 39 2
Total residential mortgages exposures
2

0.95 112,292 112,888 18 16 21,268 1,701
Other retail
0 - 2 0.10 516 519 77 49 308 25
3 - 4 0.26 4,195 4,272 78 56 2,857 229
5 1.11 1,030 1,034 78 84 1,039 83
6
2.81 548 573 83 108 744 59
7 - 8
8.22 686 712 87 135 1,152 92
Default
100.00 46 45 81 37 19 2
Total other retail exposures
2.00 7,021 7,155 79 71 6,119 490
Total credit risk exposures subject
to the IRB approach
3

1.08 258,722 165,158 26 26 52,360 4,189
1 The credit risk supervisory adjustment on page 35 includes NZ$6,555 million of RWA for corporate exposures. This increases the pre-scalar IRB exposure–weighted risk weight to 58% and
the minimum capital requirement to NZ$2,522 million.
2 The credit risk supervisory adjustment on page 35 includes NZ$16,061 million of RWA for residential mortgage exposures. This increases the pre-scalar IRB exposure-weighted risk weight to
28% and the minimum capital requirement to NZ$2,986 million.
3 The credit risk supervisory adjustment on page 35 totals NZ$22,616 million of RWA. This increases the pre-scalar IRB exposure-weighted risk weight to 38% and the related minimum capital
requirement to NZ$5,998 million.
IRB credit exposures include the following undrawn commitments and other off-balance sheet contingent liabilities:
Total value
Exposure
at default
As at 31 March 2023 NZ$m NZ$m
Undrawn commitments and other off-balance sheet contingent liabilities
Corporate
12,133 11,451
Residential mortgages
9,273 9,723
Other retail
4,694 4,768
Counterparty credit risk on derivatives and securities financing transactions
Corporate
94,495 1,292
Total 120,595 27,234

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


38
Additional mortgage information
As required by RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by the Banking Group'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 2023 NZ$m NZ$m NZ$m
LVR range
Does not exceed 60%
57,118 6,983 64,101
Exceeds 60% and not 70%
19,520 1,034 20,554
Exceeds 70% and not 80%
19,963 964 20,927
Does not exceed 80% 96,601 8,981 105,582
Exceeds 80% and not 90% 4,783 112 4,895
Exceeds 90% 1,635 180 1,815
Total 103,019 9,273 112,292

Specialised lending subject to the slotting approach

Exposures
after
credit risk
mitigation
Risk
weight
Risk
weighted
assets
Minimum
capital
requirement
As at 31 March 2023 NZ$m % NZ$m NZ$m
On-balance sheet exposures
Strong 6,230 70 5,233 419
Good 4,245 90 4,585 367
Satisfactory 892 115 1,231 98
Weak 612 250 1,836 147
Default 54 - - -
Off-balance sheet exposures by average risk weight
Undrawn commitments and other off-balance sheet exposures 1,078 79 1,027 82
Total exposures subject to the slotting approach 13,111 88 13,912 1,113

The supervisory categories of specialised lending above are associated with specific risk-weights. These categories broadly correspond to the
following external credit assessments using S&P Global Ratings' rating scale, Strong: BBB- or better, Good: BB+ or BB, Satisfactory: BB- or B+ and Weak:
B to C-.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED
39
Credit risk exposures subject to the standardised approach
Exposure
or principal
amount
Average
credit
conversion
factor
Exposure
after credit
risk
mitigation
Average
risk weight
Risk
weighted
exposure
Minimum
capital
requirement
As at 31 March 2023 NZ$m % NZ$m % NZ$m NZ$m
On-balance sheet exposures
Cash and gold bullion
183 - - -
Sovereign and central banks
20,530 - - -
Multilateral development banks and other international organisations
4,359 - - -
Public sector entities
1,350 20 270 22
Banks 1,539 47 730 58
Corporate 78 107 83 7
Past due assets - - - -
Other assets 1,272 100 1,272 102
Equity exposures
Unlisted equity holdings 1 400 5 -
Off-balance sheet exposures
Total off-balance sheet exposures 2,017 55 1,106 51 569 46
Counterparty credit risk
Foreign exchange contracts 219,561 n/a 2,912 23 678 54
Interest rate contracts 1,208,703 n/a 1,309 9 122 10
Other 3,053 n/a 369 30 111 9
Credit valuation adjustment n/a n/a n/a n/a 517 41
Total exposures subject to the standardised approach 35,008 12 4,357 349
Credit valuation adjustment
The IRB and standardised tables above include an aggregate Credit Valuation Adjustment (CVA) capital charge of NZ$71 million, and aggregate
implied risk weighted exposures for the CVA of NZ$888 million.
Credit risk mitigation
As at 31 March 2023, under the IRB approach, the Banking Group had NZ$355 million of corporate exposures covered by guarantees where the
presence of the guarantees was judged to reduce the underlying credit risk of the exposures. Information on the value of other exposures covered by
financial guarantees and eligible financial collateral is not disclosed, as the effect of these guarantees and collateral on the underlying credit risk
exposures is not considered to be material.
Effect of standardised floor on total risk-w
eighted exposures for credit risk
Risk weighted assets
Calculated for
compliance
purposes
Calculated using
standardised
approach
As at 31 March 2023 NZ$m NZ$m
Exposures subject to the IRB or slotting approaches
1

66,272
96,998
Credit risk supervisory adjustment
1

22,616
n/a
Subtotal
1

88,888
96,998
Standardised floor at 85% of standardised RWA
n/a
82,448
Output floor adjusting item
-
n/a
IRB and slotting RWA with standardised floor applied
88,888
82,448
Exposures subject to the standardised approach
4,357
Total credit risk 93,245
1 RWA calculated for compliance purposes includes a scalar of 1.2 as required by BPR 130 Credit Risk RWAs Overview.
In accordance with BPR 130 Credit Risk RWAs Overview, IRB and slotting RWA with standardised floor applied is calculated as the greater of RWA for
compliance purposes, and 85% of the total RWA for such exposures calculated using the standardised approach.

ANZ BANK NEW ZEALAND LIMITED UNAUDITED

REGISTERED BANK DISCLOSURES


40
Market risk
The aggregate market risk exposures below have been calculated in accordance with BPR140: Market Risk. The peak end-of-day market risk exposures
are for the six months ended 31 March 2023.

Implied risk weighted
exposure Aggregate capital charge
Period end Peak Period end Peak
As at 31 March 2023 NZ$m NZ$m NZ$m NZ$m
Interest rate risk
5,565 6,577 445 526
Foreign currency risk 39 94 3 8
Equity risk 1 1 - -

Capital for other material risks
The Banking Group has an Internal Capital Adequacy Assessment Process (ICAAP) which complies with the requirements of the Bank's Conditions of
Registration. Under the Banking Group's ICAAP it identifies and measures all "other material risks", which are those material risks that are not explicitly
captured in the calculation of the Banking Group's tier 1 and total capital ratios. The other material risks identified by the Banking Group include fixed
asset risk and deferred acquisition cost risk. As at 31 March 2023, the Banking Group's internal capital allocation for these other material risks is NZ$292
million (March 2022: NZ$326 million).
Information about Ultimate Parent Bank and Overseas Banking Group
APRA Basel III capital ratios

Overseas Banking Group
Ultimate Parent Bank
(Extended Licensed Entity)
As at 31 March 2023 2022 2023 2022
Common equity tier 1 capital
13.2%
11.5%
12.9%
11.1%
Tier 1 capital
15.1%
13.2%
15.2%
13.1%
Total capital
20.6%
16.6%
21.6%
17.1%

The Ultimate Parent Bank and the Overseas Banking Group are required to hold minimum capital as determined by APRA’s capital framework, which is
at least equal to that specified under the internationally agreed Basel III framework.
APRA has authorised the Ultimate Parent Bank and the Overseas Banking Group to use:
• the Internal Ratings Based (IRB) methodology for calculation of credit risk weighted assets. Where the Overseas Banking Group is not accredited
to use the IRB methodology the Overseas Banking Group applies the standardised approach.
• the Standardised Measurement Approach (SMA) for the operational risk weighted asset equivalent.
The Overseas Banking Group exceeded the minimum capital requirements set by APRA as at 31 March 2023 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 31 March 2023. The Overseas Banking Group’s Pillar 3
disclosure document for the quarter ended 31 March 2023, 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.
Regulatory liquidity ratios
RBNZ requires banks to hold minimum amounts of liquid assets to help ensure that they are effectively managing their liquidity risks. The mismatch
ratio is a measure of a bank’s liquid assets, adjusted for expected cash inflows and outflows during a 1-month or 1-week period of stress. It is expressed
as a ratio over the bank’s total funding. The Banking Group must maintain its 1-month and 1-week mismatch ratios above zero on a daily basis. The 1-
month and 1-week mismatch ratios are averaged over the quarter.
RBNZ requires banks to get a minimum amount of funding from stable sources called core funding. The minimum amount of core funding is 75% of a
bank’s total loans. The Banking Group must maintain its core funding ratio above the regulatory minimum on a daily basis. This measure of the core
funding ratio is averaged over the quarter.
For the three months ended 31 Mar 23 31 Dec 22
Quarterly average 1-week mismatch ratio 9.3% 9.2%
Quarterly average 1-month mismatch ratio
7.7%
8.1%
Quarterly average core funding ratio
91.4%
92.0%

ANZ BANK NEW ZEALAND LIMITED UNAUDITED




41
B5. CONCENTRATION OF CREDIT EXPOSURES TO INDIVIDUAL COUNTERPARTIES
The Banking Group measures its concentration of credit exposures to individual counterparties at the reporting date on the basis of actual exposures.
Peak end-of-day aggregate credit exposures are measured on the basis of internal limits that were not materially exceeded between the reporting
date for the previous disclosure statement and the reporting date for the Disclosure Statement.
The exposure information in the table below excludes exposures to:
• connected persons (i.e. other members of the Overseas Banking Group and Directors of the Bank);
• the central government or central bank of any country with a long-term credit rating of A- or A3 or above, or its equivalent; and
• any supranational or quasi-sovereign agency with a long-term credit rating of A- or A3 or above, or its equivalent.
As at
Peak end of
day over 6
months to
31 Mar 23 31 Mar 23
Exposures to banks
Total number of exposures to banks that are greater than 10% of CET1 capital
- -
with a long-term credit rating of A- or A3 or above, or its equivalent
- -
with a long-term credit rating of at least BBB- or Baa3, or its equivalent, and at most BBB+ or Baa1, or its equivalent - -
Exposures to non-banks


Total number of exposures to non-banks that are greater than 10% of CET1 capital
1 2
with a long-term credit rating of A- or A3 or above, or its equivalent
1 2
- 10% to less than 15% of CET1 capital
1 2
with a long-term credit rating of at least BBB- or Baa3, or its equivalent, and at most BBB+ or Baa1, or its equivalent
- -


B6. INSURANCE BUSINESS
As at 31 March 2023, the Banking Group does not conduct any insurance business.

ANZ BANK NEW ZEALAND LIMITED
DIRECTORS’ STATEMENT
42
As at the date on which this Disclosure Statement is signed, after due enquiry, each Director believes that:
•The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements (New Zealand Incorporated
Registered Banks) Order 2014; and
•The Disclosure Statement is not false or misleading.
Over the six months ended 31 March 2023, after due enquiry, each Director believes that:
•The Bank has complied in all material respects with each condition of registration that applied during that period
1
;
•Credit exposures to connected persons were not contrary to the interests of the Banking Group; and
•The Bank had systems in place to monitor and control adequately the Banking Group’s material risks, including credit risk, concentration of credit
risk, interest rate risk, currency risk, equity risk, liquidity risk, operational risk and other business risks, and that those systems were being properly
applied.
1. In accordance with the Order, the Bank 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 the Bank of any material breach.
Th
is Disclosure Statement is dated, and has been signed by all Directors of the Bank on, 8 May 2023.
Shayne Elliott
G
erard Florian
A
lison Gerry
R
t Hon Sir John Key, GNZM AC
S
cott St John
M
ark Tume
A
ntonia Watson
Jo
an Withers

ANZ BANK NEW ZEALAND LIMITED
LIMITED ASSURANCE REPORTS
43
INDEPENDENT AUDITOR’S REPORTS ON THE REGISTERED BANK DISCLOSURES
TO THE SHAREHOLDER OF ANZ BANK NEW ZEALAND LIMITED
REVIEW REPORT ON THE REGISTERED BANK DISCLOSURES IN SECTIONS B2, B3, B5 AND B6
CONC
LUSION
We have completed a review of the accompanying registered bank disclosures of ANZ Bank New Zealand Limited (the Bank) and its subsidiaries
(the Banking Group) in sections B2, B3, B5 and B6 on pages 24 to 33 and 41. These comprise the information that is required to be disclosed in
accordance with schedules 5, 7, 13, 16 and 18 of the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order
2014 (the Order).
Based on our review, nothing has come to our attention that causes us to believe that the registered bank disclosures in sections B2, B3, B5 and B6:
•do not present fairly, in all material respects, the matters to which they relate; or
•are not disclosed, in all material respects, in accordance with schedules 5, 7, 13, 16 and 18 of the Order.
BASI
S FOR CONCLUSION
A review of the registered bank disclosures in sections B2, B3, B5 and B6 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 the Banking Group, 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 the Banking Group 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 the Banking Group on normal terms within the ordinary course of trading activities of the business of the Banking Group. These matters
have not impaired our independence as reviewer of the Banking Group. The firm has no other relationship with, or interest in, the Banking Group.
USE OF THIS INDEPENDENT REVIEW REPORT
This independent review report is made solely to the Bank’s shareholder. Our review work has been undertaken so that we might state to the
shareholder 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 shareholder for our review work, this independent review
report, or any of the opinions we have formed.
RESPONSIBILITIES OF THE DIRECTORS FOR THE REGISTERED BANK DISCLOSURES IN SECTIONS B1, B2, B3, B5 AND
B6
The Directors, on behalf of the Banking Group, are responsible for:
•the preparation and fair presentation of the registered bank disclosures in accordance with schedules 3, 5, 7, 13, 16 and 18 of the Order; and
•implementing necessary internal control to enable the preparation of registered bank disclosures that free from material misstatement, whether
due to fraud or error.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE REGISTERED BANK DISCLOSURES IN SECTIONS B2, B3, B5
AND B6
Our responsibility is to express a conclusion on the registered bank disclosures in sections B2, B3, B5 and B6 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 our attention that causes us to believe
that the registered bank disclosures in sections B2, B3, B5 and B6:
•do not present fairly, in all material respects, the matters to which they relate; or
•are not disclosed, in all material respects, in accordance with schedules 5, 7, 13, 16 and 18 of the Order; or
•if applicable, have not been prepared, in all material respects, in accordance with any conditions of registration relating to disclosure
requirements, imposed under section 74(4)(c) of the Banking (Prudential Supervision) Act 1989 (the Bank does not have any such conditions).
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) and consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not
express an audit opinion on the registered bank disclosures in sections B2, B3, B5 and B6.
KPMG
Auckland
8 May 2023

ANZ BANK NEW ZEALAND LIMITED
LIMITED ASSURANCE REPORTS
44
LIMITED ASSURANCE REPORT ON THE CAPITAL ADEQUACY AND REGULATORY LIQUIDITY RATIOS DISCLOSURES
IN SECTION B4
C
ONCLUSION
We have reviewed the capital adequacy and regulatory liquidity ratios disclosures in section B4 on pages 34 to 40 (the Capital Adequacy and
Liquidity Disclosures), which comprise the information that is required to be disclosed in accordance with schedule 11 of the Order.
Based on our limited assurance conclusion, which is not a reasonable assurance engagement or audit, nothing has come to our attention that
would lead us to believe that the Capital Adequacy and Liquidity Disclosures are not, in all material respects disclosed in accordance with
schedule 11 o f the Order.
ST
ANDARDS WE FOLLOWED
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (New Zealand) 3000
(Revised) Assurance Engagements other than audits or reviews of historical financial information and Standard on Assurance Engagements 3100
(Revised) Assurance Engagements on Compliance. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for
our conclusion. In accordance with those standards we:
•used our professional judgement to plan and perform the engagement to obtain limited assurance that the Capital Adequacy and Liquidity
Disclosures are free from material misstatement and non-compliance, whether due to fraud or error;
•considered relevant internal controls when designing our assurance procedures, however we do not express a conclusion on the effectiveness of
these controls; and
•ensured that the engagement team possess the appropriate knowledge, skills and professional competencies.
HOW TO INTERPRET LIMITED ASSURANCE AND MATERIAL MISSTATEMENT AND NON-COMPLIANCE
In a limited assurance engagement, the assurance practitioner performs procedures, primarily consisting of discussion and enquiries of
management and others within the entity, as appropriate, and observation and walk-throughs, and evaluates the evidence obtained. The
procedures selected depend on our judgement, including identifying areas where the risk of material misstatement and non-compliance with
schedule 11 of the Order is likely to arise.
The procedures performed in a limited assurance engagement vary in nature and timing from and are less in extent than for a reasonable assurance
engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would
have been obtained had a reasonable assurance engagement been performed.
Misstatements, including omissions, within the Capital Adequacy and Liquidity Disclosures and non-compliance are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the relevant decisions of the intended users taken on the basis of
the Capital Adequacy and Liquidity Disclosures.
INHERENT LIMITATIONS
Because of the inherent limitations of an assurance engagement, together with the internal control structure it is possible that fraud, error or non-
compliance with compliance requirements may occur and not be detected.
USE OF THIS INDEPENDENT LIMITED ASSURANCE REPORT
This independent limited assurance report is made solely to the Bank’s shareholder. Our assurance work has been undertaken so that we might state
to the shareholder those matters we are required to state to them in the assurance report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume any responsibility to anyone other than the shareholder for our assurance work, for this independent limited
assurance report, and/or for any of the conclusions we have reached.
DIRECTOR’S RESPONSIBILITY FOR THE CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES
The Directors are responsible for the preparation of the Capital Adequacy and Liquidity Disclosures that are required to be disclosed in accordance
with schedule 11 of the Order, which the Directors have determined to meet the needs of the recipients. This responsibility includes such internal
control as the Directors determine is necessary to enable the preparation of the Capital Adequacy and Liquidity Disclosures that are free from
material misstatement and non-compliance whether due to fraud or error.
OUR RESPONSIBILITY FOR THE CAPITAL ADEQUACY AND LIQUIDITY DISCLOSURES
Our responsibility is to express a conclusion on whether anything has come to our attention that the Capital Adequacy and Liquidity Disclosures
have not, in all material respects, been disclosed in accordance with schedule 11 of the Order for the six-month period ended 31 March 2023.

ANZ BANK NEW ZEALAND LIMITED LIMITED ASSURANCE REPORTS
45
OUR INDEPENDENCE AND QUALITY CONTROL
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1 International Code of Ethics for
Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards
Board, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional
behaviour.
The firm applies Professional and Ethical Standard 3 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other
Assurance or Related Services Engagements and accordingly maintains a comprehensive system of quality control including documented policies and
procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our firm has also provided other services to the Banking Group 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 the Banking Group on normal terms within the ordinary course of trading activities of the business of the Banking Group. These matters
have not impaired our independence as assurance providers of the Banking Group for this engagement. The firm has no other relationship with, or
interest in, the Banking Group.
K
PMG
Auckland
8 May 2023