ANZBGL NZ Branch DS 31 March 2025
Australia and New Zealand Banking Group Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 11 005 357 522
8 May 2025
Market Announcements Office
ASX Limited
Level 4
20 Bridge Street
SYDNEY NSW 2000
Australia and New Zealand Banking Group Limited –
ANZBGL New Zealand Branch Registered Bank Disclosure Statement
Australia and New Zealand Banking Group Limited (ANZBGL) today released its ANZBGL New Zealand Branch
Registered Bank Disclosure Statement for the six months ended 31 March 2025.
It has been approved for distribution by ANZBGL’s Board of Directors.
Yours faithfully
Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited
Australia and New Zealand Banking
Group Limited - ANZBGL New Zealand
Registered Bank Disclosure Statement
For the six months ended 31 March 2025
Contents
Glossary
2
Disclosure statement
Interim financial statements 3
Condensed consolidated interim financial statements 4
Notes to the condensed consolidated interim financial statements 8
Limited assurance report 23
Registered bank disclosures 24
Directors' and New Zealand Chief Executive Officer's statement 34
Limited assurance reports 35
Glossary
In this Registered Bank Disclosure Statement (Disclosure Statement) unless the context otherwise requires:
Bank means ANZ Bank New Zealand Limited.
Banking Group means the Bank and all its controlled entities.
Immediate Parent Company means ANZ Funds Pty. Ltd., which is the immediate parent company of ANZ Holdings (New Zealand) Limited.
Ultimate Non-Bank Holding Company, ANZGHL means ANZ Group Holdings Limited.
ANZ Group means the worldwide operations of ANZGHL including its controlled entities.
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, We or Our means the New Zealand business of the Overseas Banking Group.
ANZ New Zealand means the New Zealand business of the ANZ Group.
Registered Office is Level 10, 171 Featherston Street, Wellington, New Zealand, which is also ANZBGL New Zealand's address for service.
RBNZ means the Reserve Bank of New Zealand.
APRA means the Australian Prudential Regulation Authority.
the Order means the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014.
Any term or expression which is defined in, or in the manner prescribed by, the Order shall have the meaning given in or prescribed by the
Order.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand
3
Interim Financial
Statements
Contents
Condensed Consolidated Interim Financial Statements 4
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 8
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 15
7. Debt issuances 15
Financial instrument disclosures
8. Credit risk 16
9. Fair value of financial assets and financial liabilities 18
Equity
10. Shareholders’ equity 20
Other disclosures
11. Commitments and contingent liabilities 22
Limited assurance report 23
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
4 Condensed consolidated interim financial statements
Income Statement
2025 2024
For the six months ended 31 March Note NZ$m NZ$m
Interest income 5,542 5,918
Interest expense (3,346) (3,776)
Net interest income 2,196 2,142
Other operating income 2 509 223
Operating income
2,705 2,365
Operating expenses (894) (858)
Profit before credit impairment and income tax 1,811 1,507
Credit impairment release/(charge) 5 5 (33)
Profit before income tax 1,816 1,474
Income tax expense (514) (419)
Profit for the period 1,302 1,055
Comprising:
Profit attributable to shareholders of the Ultimate Parent Bank 1,281 1,041
Profit attributable to non-controlling interests
21 14
Statement of Comprehensive Income
2025 2024
For the six months ended 31 March
NZ$m NZ$m
Profit for the period 1,302 1,055
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss 11 4
Items that may be reclassified subsequently to profit or loss
Reserve movements:
Unrealised gains recognised directly in equity 8 48
Realised gains transferred to the income statement
(2) (3)
Income tax attributable to the above items (5) (14)
Total comprehensive income for the period 1,314 1,090
Comprising total comprehensive income attributable to:
Shareholders of the Ultimate Parent Bank 1,293 1,076
Non-controlling interests
21 14
The notes appearing on pages 8 to 22 form an integral part of these interim financial statements.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Condensed consolidated interim financial statements 5
Balance Sheet
31 Mar 25 30 Sep 24
As at Note NZ$m NZ$m
Assets
Cash and cash equivalents 11,145 11,634
Settlement balances receivable 687 574
Collateral paid 742 1,041
Trading securities 5,774 5,576
Derivative financial instruments 8,871 10,173
Investment securities 14,882 13,295
Net loans and advances 4 153,912 151,963
Deferred tax assets 401 419
Goodwill and other intangible assets 3,097 3,094
Premises and equipment 319 363
Other assets 1,326 1,334
Total assets 201,156 199,466
Liabilities
Settlement balances payable 3,391 5,346
Collateral received 951 525
Deposits and other borrowings 6 151,367 145,323
Derivative financial instruments 8,149 11,150
Current tax liabilities 100 256
Payables and other liabilities 1,947 2,457
Employee entitlements 116 121
Other provisions 210 212
Debt issuances 7 17,735 17,549
Total liabilities 183,966 182,939
Net assets 17,190 16,527
Shareholders' equity
Share capital 10 14,555 14,555
Reserves 10 28 24
Retained earnings 10 1,782 1,123
Equity attributable to shareholders of the Ultimate Parent Bank
16,365 15,702
Non-controlling interests
825 825
Total shareholders' equity
17,190 16,527
The notes appearing on pages 8 to 22 form an integral part of these interim financial statements.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
6 Condensed consolidated interim financial statements
Cash Flow Statement
2025 2024
For the six months ended 31 March
NZ$m NZ$m
Profit after income tax 1,302 1,055
Adjustments to reconcile to net cash provided by/(used in) operating activities:
Depreciation and amortisation 51 55
Loss on sale and impairment of premises and equipment and lease remeasurements
- 1
Net derivatives/foreign exchange adjustment
(455) (256)
Other non-cash movements (61) (12)
Net (increase)/decrease in operating assets:
Collateral paid 299 92
Trading securities
(198) 138
Net loans and advances
(1,949) (1,540)
Other assets (87) (352)
Net increase/(decrease) in operating liabilities:
Deposits and other borrowings (excluding items included in financing activities) 6,497 3,522
Settlement balances payable
(1,955) 657
Collateral received
426 (497)
Other liabilities (639) 430
Total adjustments
1,929 2,238
Net cash provided by operating activities
1
3,231 3,293
Cash flows from investing activities
Investment securities:
Purchases (2,594) (1,495)
Proceeds from sale or maturity 1,090 1,320
Other assets
(20) (19)
Net cash used in investing activities (1,524) (194)
Cash flows from financing activities
Deposits and other borrowings (excluding borrowings from Immediate Parent and Ultimate Parent Bank)
2
(534) (29)
Debt issuances:
3
Issue proceeds 1,689 887
Redemptions
(2,636) (3,250)
Borrowings from Immediate Parent and Ultimate Parent Bank:
4
Change in short term borrowings (39) (30)
Proceeds from issue of perpetual preference shares - 271
Repayment of lease liabilities
(25) (25)
Dividends paid (651) (1,099)
Net cash used in financing activities (2,196) (3,275)
Net change in cash and cash equivalents (489) (176)
Cash and cash equivalents at beginning of period 11,634 13,094
Cash and cash equivalents at end of period
11,145 12,918
1.
Net cash provided by operating activities includes income taxes paid of NZ$657 million (March 2024: NZ$536 million).
2.
Movement in deposits and other borrowings include repayments of repurchase transactions entered into with the RBNZ under the Term Lending Facility of NZ$34 million (March 2024: NZ$29 million)
and NZ$500 million under the Funding for Lending Programme (March 2024: nil).
3.
Movement in debt issuances (Note 7 Debt issuances) also includes a NZ$1,168 million increase ( March 2024: NZ$16 million decrease) from the effect of foreign exchange rates and a NZ$35 million
decrease (March 2024: NZ$350 million increase) from changes in fair value hedging instruments.
4.
Movement in borrowings from Immediate Parent and Ultimate Parent Bank (Note 6 Deposit and other borrowings) also includes a NZ$118 million increase (March 2024: NZ$9 million increase) from the
effect of foreign exchange rates and a NZ$2 million increase (March 2024: NZ$21 million increase) from changes in fair value hedging instruments.
The notes appearing on pages 8 to 22 form an integral part of these interim financial statements.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Condensed consolidated interim financial statements 7
Statement of Changes in Equity
Share capital
and initial head
office account Reserves
Retained
earnings
Equity
attributable to
shareholders
of the Ultimate
Parent Bank
Non-
controlling
interests
Total
shareholders'
equity
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2023 11,055 (93) 5,173 16,135 550 16,685
Profit or loss for the period - - 1,041 1,041 14 1,055
Other comprehensive income for the period - 32 3 35 - 35
Total comprehensive income for the period - 32 1,044 1,076 14 1,090
Transactions with equity holders in their capacity as
equity owners:
Ordinary shares dividend paid - - (1,085) (1,085) - (1,085)
Perpetual preference shares issued (net of issue costs) - - (4) (4) 275 271
Perpetual preference shares dividends paid - - - -
(14) (14)
As at 31 March 2024 11,055 (61) 5,128 16,122 825 16,947
As at 1 October 2024 14,555 24 1,123 15,702 825 16,527
Profit or loss for the period - - 1,281 1,281 21 1,302
Other comprehensive income for the period - 4 8 12 - 12
Total comprehensive income for the period - 4 1,289 1,293 21 1,314
Transactions with equity holders in their capacity as
equity owners:
Ordinary shares dividend paid - - (630) (630) - (630)
Perpetual preference shares dividends paid - - - - (21) (21)
As at 31 March 2025 14,555 28 1,782 16,365 825 17,190
The notes appearing on pages 8 to 22 form an integral part of these interim financial statements.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
8 Notes to the condensed consolidated interim financial statements
Notes to the Condensed Consolidated
Interim Financial Statements
1. About our interim financial statements
These condensed consolidated interim financial statements for ANZBGL New Zealand have been prepared in accordance with the requirements of the
Order and should be read in conjunction with ANZBGL New Zealand’s financial statements for the year ended 30 September 2024.
On 7 May 2025, the Directors resolved to authorise the issue of these interim financial statements.
Basis of preparation
These condensed consolidated interim 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 condensed consolidated interim financial statements of ANZBGL New Zealand comprise the financial statements of the NZ Branch and all of the New
Zealand businesses of all the subsidiaries of the Ultimate Parent Bank.
We present the condensed consolidated interim financial statements of ANZBGL New Zealand in New Zealand dollars and have rounded values to the
nearest million dollars (NZ$m), unless otherwise stated.
The accounting policies adopted by ANZBGL New Zealand are consistent with those adopted and disclosed in the previous full year financial statements.
Basis of measurement and presentation
The financial information has been prepared in accordance with the historical cost basis - except for the following assets and liabilities which we have
stated at their fair value:
• derivative financial instruments and in the case of fair value hedging, a fair value adjustment made to the underlying hedged item;
• financial instruments held for trading;
• financial assets and financial liabilities designated at fair value through profit or loss (FVTPL); and
• financial assets at fair value through other comprehensive income (FVOCI).
In the process of applying ANZBGL New Zealand’s accounting policies, management has made a number of judgements and applied
estimates and assumptions about past and future events. 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 continues to face challenges associated with inflation and interest rate uncertainties, continuing trade and geopolitical
tensions, and impacts from climate change, which contribute to an elevated level of estimation uncertainty involved in the preparation of these
interim financial statements.
ANZBGL New Zealand made various accounting estimates in these interim financial statements based on forecasts of economic conditions
which reflect expectations and assumptions at 31 March 2025 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 interim 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.
In light of the uncertainties above the assumptions and judgements made in relation to significant accounting estimates are discussed further
in the relevant notes in these interim financial statements and/or in the relevant notes in the previous full year financial statements. Readers
should consider these disclosures in light of the uncertainties described above.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Notes to the condensed consolidated interim financial statements 9
2. Other operating income
2025 2024
For the six months ended 31 March
NZ$m NZ$m
Fee and commission income
Lending fees 10 10
Non-lending fees
361 370
Commissions
14 14
Funds management income
122 122
Fee and commission income
507 516
Fee and commission expense (264) (261)
Net fee and commission income 243 255
Other income
Net trading gains 99 122
Gain on sale of investment securities designated at FVOCI
2 1
Fair value gain/(loss) on hedging activities and financial liabilities designated at fair value
161 (162)
Net foreign exchange earnings and other financial instruments income 262 (39)
Adjustment to gain on sale of UDC Finance Ltd - 2
Other
4 5
Other income
266 (32)
Other operating income 509 223
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
10 Notes to the condensed consolidated interim financial statements
3. Segment reporting
Description of segments
ANZBGL New Zealand is organised into three major business segments for segment reporting purposes - Personal, Business & Agri 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.
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 a network of branches, mortgage specialists, private bankers and contact centres.
Business & Agri
Business & Agri provides a full range of banking services through our digital, branch and contact centre 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 sustainable finance solutions.
• Markets provides customers with risk management services in foreign exchange, interest rates, credit, commodities, and debt capital markets in
addition to managing ANZBGL New Zealand’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.
Operating segments
Personal Business & Agri Institutional Other Total
2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
For the six months 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 1,273 1,170 478 515 373 379 72 78 2,196 2,142
Net fee and commission income
- Lending fees 4 4 - - 6 6 - - 10 10
- Non-lending fees 227 228 114 118 24 26 (4) (2) 361 370
- Commissions 13 13 - - - - 1 1 14 14
- Funds management income 122 122 - - - - - - 122 122
- Fee and commission expense (173) (168) (91) (93) - - - - (264) (261)
Net fee and commission income 193 199 23 25 30 32 (3) (1) 243 255
Other income - 1 (1) - 107 129 160 (162) 266 (32)
Other operating income 193 200 22 25 137 161 157 (163) 509 223
Operating income 1,466 1,370 500 540 510 540 229 (85) 2,705 2,365
Operating expenses (608) (591) (146) (134) (127) (122) (13) (11) (894) (858)
Profit before credit impairment
and income tax
858 779 354 406 383 418 216 (96) 1,811 1,507
Credit impairment release/(charge) (20) (22) 25 18 - (29) - - 5 (33)
Profit/(loss) before income tax 838 757 379 424 383 389 216 (96) 1,816 1,474
Income tax benefit/(expense) (235) (212) (106) (119) (107) (109) (66) 21 (514) (419)
Non-controlling interests - - - - - - (21) (14) (21) (14)
Profit/(loss) after income tax
1
603 545 273 305 276 280 129 (89) 1,281 1,041
1.
Attributable to shareholders of the Ultimate Parent Bank.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Notes to the condensed consolidated interim financial statements 11
3. Segment reporting (continued)
Operating segments (continued)
Personal Business & Agri Institutional Other Total
31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24
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
112,818 110,447 23,636 23,952 17,458 17,564 - - 153,912 151,963
Customer deposits
94,401 91,814 19,183 17,996 27,312 26,353 - - 140,896 136,163
Other segment
The Other segment profit/(loss) after income tax comprises:
2025 2024
For the six months ended 31 March NZ$m NZ$m
Personal and Business & Agri central functions (2) 2
Group Centre 15 26
Economic hedges 116 (117)
Total 129 (89)
4. Net loans and advances
31 Mar 25 30 Sep 24
NZ$m NZ$m
Overdrafts 1,113 1,091
Credit cards 1,238 1,243
Term loans - housing 113,396 111,104
Term loans - non-housing
1
38,336 38,755
Gross subtotal 154,083 152,193
Unearned income (25) (21)
Capitalised brokerage and other origination costs 566 516
Gross loans and advances 154,624 152,688
Allowance for expected credit losses (refer to Note 5) (712) (725)
Net loans and advances 153,912 151,963
1.
Includes reverse repurchase agreements (with 90 days or more to maturity) designated at FVTPL of NZ$316 million (September 2024: nil).
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
12 Notes to the condensed consolidated interim financial statements
5. Allowance for expected credit losses
This note should be read in conjunction with the estimates, assumptions and judgements included in Note 1 About our interim financial statements.
31 Mar 25 30 Sep 24
Collectively
assessed
Individually
assessed Total
Collectively
assessed
Individually
assessed Total
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Net loans and advances at amortised cost 651 61 712 661 64 725
Off-balance sheet commitments 124 2 126 133 3 136
Total 775 63 838 794 67 861
The following tables present the movement in the allowance for expected credit losses (ECL) for the period.
Net loans and advances - at amortised cost
Allowance for ECL is included in Net loans and advances.
Stage 3
Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2024 187 370 104 64 725
Transfer between stages 56 (57) - 1 -
New and increased provisions (net of releases) (78) 69 - 38 29
Write-backs - - - (20) (20)
Bad debts written-off (excluding recoveries) - - - (23) (23)
Discount unwind reversal - - - 1 1
As at 31 March 2025 165 382 104 61 712
Off-balance sheet commitments - undrawn and contingent facilities
Allowance for ECL is included in Other provisions.
Stage 3
Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2024 74 56 3 3 136
Transfer between stages 5 (5) - - -
New and increased provisions (net of releases) (10) 1 - (1) (10)
As at 31 March 2025 69 52 3 2 126
Credit impairment charge – income statement
Credit impairment charge analysis
2025 2024
For the six months ended 31 March NZ$m NZ$m
New and increased provisions (net of releases)
1
- Collectively assessed (19) 30
- Individually assessed 38 40
Write-backs (20) (31)
Recoveries of amounts previously written-off (4) (6)
Total credit impairment charge/(release) (5) 33
1.
Includes the impact of transfers between collectively assessed and individually assessed.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Notes to the condensed consolidated interim financial statements 13
5. Allowance for expected credit losses
(continued)
Collectively assessed allowance for ECL
The collectively assessed allowance for ECL decreased by NZ$19 million, attributable to NZ$49 million from an improvement in base case
economic assumptions, partially offset by a NZ$24 million net increase in management temporary adjustments for increased uncertainty
and economic volatility and NZ$6 million from a deterioration in credit risk profile and other portfolio changes.
In estimating collectively assessed ECL, ANZBGL New Zealand makes judgements and assumptions in relation to:
•
the selection of an estimation technique or modelling methodology; and
•
the selection of inputs for those models, and the interdependencies between those inputs.
The 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. ANZBGL New Zealand’s ECL estimates are inherently uncertain and, as a result,
actual results may differ from these estimates.
The key judgements and assumptions in estimating collectively assessed ECL are presented below.
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
2025 are set out below. For the years following the near term forecasts below, the ECL models apply simplified assumptions for the economic
conditions to calculate lifetime loss.
Actual calendar year Forecast calendar year
2024 2025 2026
New Zealand
GDP (annual % change) -0.5 1.0 3.1
Unemployment rate (annual average) 4.7 5.2 4.7
Residential property prices (annual % change) -1.1 6.0 5.0
Consumer price index (annual average % change) 2.9 2.6 1.9
The base case economic forecasts have been updated to reflect economic recovery and a return to growth, and house prices are expected
to increase following a period of stabilisation.
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 2024.
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. ANZBGL New Zealand considers these weightings to provide estimates of the possible loss
outcomes and taking into account short and long term inter-relationships within ANZBGL New Zealand’s credit portfolios. The weightings
applied are set out below:
31 Mar 25 30 Sep 24
Base 50.0% 50.0%
Upside 3.75% 3.75%
Downside 33.75% 33.75%
Severe downside 12.5% 12.5%
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
14 Notes to the condensed consolidated interim financial statements
5. Allowance for expected credit losses
(continued)
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 ANZBGL New Zealand should be considered as a best estimate within a range of possible
estimates.
The table below illustrates the sensitivity of collectively assessed ECL to key factors used in determining it as at 31 March 2025:
ECL
NZ$m
Impact
on ECL
NZ$m
If 1% of Stage 1 facilities were included in Stage 2 783 8
If 1% of Stage 2 facilities were included in Stage 1 774 (1)
100% upside scenario 282 (493)
100% base scenario 369 (406)
100% downside scenario 722 (53)
100% severe downside scenario 1,917 1,142
Individually assessed allowance for ECL
In estimating individually assessed ECL, ANZBGL New Zealand makes judgements and assumptions in relation to expected repayments, the
realisable value of collateral, business prospects for the customer, competing claims and the likely cost and duration of the work-out
process. Judgements and assumptions in respect of these matters have been updated to reflect amongst other things, the uncertainties
described above and in Note 1 About our interim financial statements.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Notes to the condensed consolidated interim financial statements 15
6. Deposits and other borrowings
31 Mar 25 30 Sep 24
NZ$m NZ$m
Term deposits 59,881 59,308
On demand and short term deposits 64,070 60,983
Deposits not bearing interest 16,945 15,872
Total customer deposits 140,896 136,163
Certificates of deposit 1,334 1,174
Commercial paper 2,124 1,419
Securities sold under repurchase agreements 4,115 3,750
Borrowings from Ultimate Parent Bank and Immediate Parent Company
1
2,898 2,817
Deposits and other borrowings 151,367 145,323
1.
Includes borrowings from the Immediate Parent Company of NZ$1,766 million which is subordinated to the A$800 million perpetual subordinated debt issued by ANZ Holdings (New Zealand) Limited.
7. Debt issuances
ANZBGL New Zealand uses a variety of funding programmes to issue unsubordinated debt (including senior debt and covered bonds) and subordinated
debt. The difference between unsubordinated debt and subordinated debt is that, in a winding up of the issuer, holders of unsubordinated debt rank in
priority to holders of subordinated debt. Subordinated debt will be repaid only after the repayment of claims of depositors and other creditors (including
holders of unsubordinated debt) of that issuer.
31 Mar 25 30 Sep 24
NZ$m NZ$m
Senior debt 12,172 12,349
Covered bonds 2,347 2,156
Total unsubordinated debt 14,519 14,505
Subordinated debt 3,216 3,044
Total debt issued 17,735 17,549
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
ANZNZ Covered Bond Trust is a member of the Banking Group. 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 26 for the amount of assets of the ANZNZ Covered Bond Trust pledged as security for
covered bonds.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
16 Notes to the condensed consolidated interim financial statements
8. C redit 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 credit risk
For financial assets recognised on the balance sheet, the maximum exposure to credit risk is the carrying amount. In certain circumstances there may be
differences between the carrying amounts reported on the balance sheet and the amounts reported in the tables below. Principally, these differences
arise in respect of financial assets that are subject to risks other than credit risk, such as equity instruments which are primarily subject to market risk, or
bank notes and coins.
For undrawn facilities, this maximum exposure to credit risk is the full amount of the committed facilities. For contingent exposures, the maximum exposure
to credit risk is the maximum amount ANZBGL New Zealand would have to pay if the instrument is called upon.
The table below shows our maximum exposure to credit risk of on-balance sheet and off-balance sheet positions before taking account of any collateral
held or other credit enhancements.
Reported Excluded
1
Maximum exposure
to credit risk
31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
On-balance sheet positions
Net loans and advances 153,912 151,963 - - 153,912 151,963
Other financial assets:
Cash and cash equivalents 11,145 11,634 122 130 11,023 11,504
Settlement balances receivable
687 574 - - 687 574
Collateral paid
742 1,041 - - 742 1,041
Trading securities
5,774 5,576 - - 5,774 5,576
Derivative financial instruments
8,871 10,173 - - 8,871 10,173
Investment securities
14,882 13,295 - - 14,882 13,295
Other financial assets
2
1,076 1,113 - - 1,076 1,113
Total other financial assets
43,177 43,406 122 130 43,055 43,276
Subtotal 197,089 195,369 122 130 196,967 195,239
Off-balance sheet positions
Undrawn and contingent facilities
3
31,234 28,453 - - 31,234 28,453
Total
228,323 223,822 122 130 228,201 223,692
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 ANZBGL New Zealand’s internal customer credit rating (CCR) to manage the credit quality of financial assets. To enable wider comparisons,
ANZBGL New Zealand’s CCRs are mapped to external rating agency scales as follows:
Credit quality
description
Internal CCR
ANZBGL New Zealand customer requirements
Moody’s
Rating
S&P Global
Ratings
Strong CCR 0+ to 4- Demonstrated superior stability in their operating and financial
performance over the long-term, and whose earnings capacity is not
significantly vulnerable to foreseeable events.
Aaa – Baa3 AAA – BBB-
Satisfactory CCR 5+ to 6- Demonstrated sound operational and financial stability over the
medium to long-term even though some may be susceptible to
cyclical trends or variability in earnings.
Ba1 – B1 BB+ – B+
Weak CCR 7+ to 8= Demonstrated some operational and financial instability, with
variability and uncertainty in profitability and liquidity projected to
continue over the short and possibly medium term.
B2 – Caa B - CCC
Defaulted CCR 8- to 10 When doubt arises as to the collectability of a credit facility, the
financial instrument (or ‘the facility’) is classified as defaulted.
N/A N/A
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Notes to the condensed consolidated interim financial statements 17
8. C redit risk (continued)
Net loans and advances Stage 3
Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
As at 31 March 2025
NZ$m NZ$m NZ$m NZ$m NZ$m
Strong 76,147 1,343 - - 77,490
Satisfactory 60,084 5,951 - - 66,035
Weak 5,330 3,121 - - 8,451
Defaulted - - 1,449 342 1,791
Gross loans and advances at amortised cost 141,561 10,415 1,449 342 153,767
Allowance for ECL (165) (382) (104) (61) (712)
Net loans and advances at amortised cost 141,396 10,033 1,345 281 153,055
Coverage ratio 0.12% 3.67% 7.18% 17.84% 0.46%
Loans and advances at FVTPL 316
Unearned income (25)
Capitalised brokerage and other origination costs 566
Net carrying amount 153,912
As at 30 September 2024
Strong 73,720 1,550 - - 75,270
Satisfactory 59,983 6,912 - - 66,895
Weak 4,924 3,477 - - 8,401
Defaulted - - 1,257 370 1,627
Gross loans and advances at amortised cost 138,627 11,939 1,257 370 152,193
Allowance for ECL (187) (370) (104) (64) (725)
Net loans and advances at amortised cost 138,440 11,569 1,153 306 151,468
Coverage ratio 0.13% 3.10% 8.27% 17.30% 0.48%
Unearned income (21)
Capitalised brokerage and other origination costs 516
Net carrying amount 151,963
Off-balance sheet commitments - undrawn and contingent facilities Stage 3
Stage 1 Stage 2
Collectively
assessed
Individually
assessed Total
As at 31 March 2025
NZ$m NZ$m NZ$m NZ$m NZ$m
Strong 25,271 196 - - 25,467
Satisfactory 4,139 1,214 - - 5,353
Weak 216 291 - - 507
Defaulted - - 18 15 33
Gross undrawn and contingent facilities 29,626 1,701 18 15 31,360
Allowance for ECL included in Other provisions (69) (52) (3) (2) (126)
Net undrawn and contingent facilities 29,557 1,649 15 13 31,234
Coverage ratio 0.23% 3.06% 16.67% 13.33% 0.40%
As at 30 September 2024
Strong 23,450 196 - - 23,646
Satisfactory 3,530 1,087 - - 4,617
Weak 30 260 - - 290
Defaulted - - 26 10 36
Gross undrawn and contingent facilities 27,010 1,543 26 10 28,589
Allowance for ECL included in Other provisions (74) (56) (3) (3) (136)
Net undrawn and contingent facilities 26,936 1,487 23 7 28,453
Coverage ratio 0.27% 3.63% 11.54% 30.00% 0.48%
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
18 Notes to the condensed consolidated interim financial statements
9. F air value of financial assets and financial liabilities
Classification of financial assets and financial liabilities
ANZBGL New Zealand recognises and measures financial instruments at either fair value or amortised cost, with a significant number of financial
instruments on the balance sheet at fair value.
Fair value is the best estimate of the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market
participants at the measurement date.
The following tables set out the classification of financial assets and liabilities according to their measurement bases together with their carrying amounts
as recognised on the balance sheet.
31 Mar 25 30 Sep 24
At amortised
cost
At fair
value Total
At amortised
cost
At fair
value Total
Note NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Financial assets
Cash and cash equivalents
1
9,771 1,374 11,145 10,590 1,044 11,634
Settlement balances receivable
687 - 687 574 - 574
Collateral paid
742 - 742 1,041 - 1,041
Trading securities
- 5,774 5,774 - 5,576 5,576
Derivative financial instruments
- 8,871 8,871 - 10,173 10,173
Investment securities
- 14,882 14,882 - 13,295 13,295
Net loans and advances 4
153,596 316 153,912 151,963 - 151,963
Other financial assets
1,076 - 1,076 1,113 - 1,113
Total
165,872 31,217 197,089 165,281 30,088 195,369
Financial liabilities
Settlement balances payable 3,391 - 3,391 5,346 - 5,346
Collateral received
951 - 951 525 - 525
Deposits and other borrowings 6
147,322 4,045 151,367 142,882 2,441 145,323
Derivative financial instruments
- 8,149 8,149 - 11,150 11,150
Debt issuances 7
17,735 - 17,735 17,549 - 17,549
Other financial liabilities
1,278 353 1,631 1,733 372 2,105
Total
170,677 12,547 183,224 168,035 13,963 181,998
1.
Comparative amounts have been adjusted to reflect the classification of certain securities purchased under agreements to resell in less than 90 days included in cash and cash equivalents.
Financial assets and financial liabilities measured at f air value
The fair valuation of financial assets and financial liabilities is generally determined at the individual instrument level.
If ANZBGL New Zealand holds offsetting risk positions, then the portfolio exception in NZ IFRS 13 Fair Value Measurement (NZ IFRS 13) is used to measure
the fair value of such groups of financial assets and financial liabilities. ANZBGL New Zealand measures the portfolio based on the price that would be
received to sell a net long position (an asset) for a particular risk exposure, or to transfer a net short position (a liability) for a particular risk exposure.
Fair value designation
ANZBGL New Zealand designates certain loans and advances and deposits and other borrowings as FVTPL where they are managed on a fair value basis
to align the measurement with how the financial instruments are managed.
Fair value approach and valuation techniques
We use valuation techniques to estimate the fair value of assets and liabilities for recognition, measurement and disclosure purposes where no quoted
price in an active market exists for that asset or liability. This includes the following:
Asset or liability F
air value approach
Financial instruments classified as:
- Derivative financial assets and financial liabilities
(including trading and non-trading)
- Repurchase agreements <90 days
- Net loans and advances
- Deposits and other borrowings
- Debt issuances
Discounted cash flow (DCF) techniques are used whereby contractual future cash flows of the
instrument are discounted using wholesale market interest rates, or market borrowing rates for
debt or loans with similar maturities or yield curves appropriate for the remaining term to
maturity.
Other financial instruments held for trading:
- Securities sold short
Valuation techniques are used that incorporate observable market inputs for financial
instruments with similar credit risk, maturity and yield characteristics.
Financial instruments classified as:
- Trading securities
- Investment securities
Valuation techniques use comparable multiples (such as price-to-book ratios) or DCF
techniques incorporating, to the extent possible, observable inputs from instruments with
similar characteristics.
There were no significant changes to valuation approaches during the current or prior periods.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Notes to the condensed consolidated interim financial statements 19
9. F air value of financial assets and financial liabilities (continued)
Fair value hierarchy
ANZBGL New Zealand categorises financial assets and financial liabilities carried at fair value into a fair value hierarchy as required by NZ IFRS 13 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 price in active
markets (Level 1)
Using observable inputs
(Level 2)
Using unobservable
inputs (Level 3) Total
31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24 31 Mar 25 30 Sep 24
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Financial assets
Cash and cash equivalents
1
- - 1,374 1,044 - - 1,374 1,044
Trading securities
2
4,506 4,653 1,268 923 - - 5,774 5,576
Derivative financial instruments
4 3 8,866 10,169 1 1 8,871 10,173
Investment securities
2
12,330 12,184 2,547 1,106 5 5 14,882 13,295
Net loans and advances
- - 316 - - - 316 -
Total
16,840 16,840 14,371 13,242 6 6 31,217 30,088
Financial liabilities
Deposits and other borrowings - - 4,045 2,441 - - 4,045 2,441
Derivative financial instruments
10 70 8,139 11,079 - 1 8,149 11,150
Other financial liabilities
321 358 32 14 - - 353 372
Total
331 428 12,216 13,534 - 1 12,547 13,963
1.
Comparative amounts have been adjusted to reflect the classification of certain securities purchased under agreements to resell in less than 90 days included in cash and cash equivalents.
2.
During the six months ended 31 March 2025, NZ$1,013 million of assets were transferred from Level 1 to Level 2 (September 2024: no assets were transferred from Level 1 to Level 2) and $128
million of assets were transferred from Level 2 to Level 1 for ANZBGL New Zealand (September 2024: NZ$2,390 million transferred from Level 2 to Level 1) due to a change in the observability of
market price and/or valuation inputs. There were no other material transfers between Level 1, Level 2 and Level 3 during the period. Transfers into and out of levels are measured at the beginning of
the reporting period in which the transfer occurred.
Financial assets and financial liabilities not measured at fair value
The financial assets and financial liabilities listed below are measured at amortised cost on ANZBGL New Zealand’s balance sheet. While this is the value at
which we expect the assets will be realised and the liabilities settled, ANZBGL New Zealand provides an estimate of the fair value of the financial assets
and financial liabilities at balance date in the table below.
Fair values of financial asset and financial liabilities carried at amortised cost not included in the table below approximate their carrying values. These
financial assets and financial liabilities are either short term in nature or are floating rate instruments that are re-priced to market interest rates on or near
the end of the reporting period.
Carrying amount in the balance sheet
Fair value
31 Mar 25 30 Sep 24
31 Mar 25 30 Sep 24
At amortised
cost
At fair
value Total
At amortised
cost
At fair
value Total Total Total
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
NZ$m NZ$m
Financial assets
Net loans and advances 153,596 316 153,912 151,963 - 151,963
154,409 152,340
Total
153,596 316 153,912 151,963 - 151,963
154,409 152,340
Financial liabilities
Deposits and other borrowings 147,322 4,045 151,367 142,882 2,441 145,323
151,587 145,593
Debt issuances
17,735 - 17,735 17,549 - 17,549
17,935 17,692
Total
165,057 4,045 169,102 160,431 2,441 162,872
169,522 163,285
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
20 Notes to the condensed consolidated interim financial statements
10. Shareholders’ equity
Shareholders’ equity
31 Mar 25 30 Sep 24
NZ$m NZ$m
Share capital and initial head office account 14,555 14,555
Reserves
FVOCI reserve (33) (28)
Cash flow hedge reserve 61 52
Total reserves 28 24
Retained earnings
1
1,782 1,123
Equity attributable to shareholders of the Ultimate Parent Bank 16,365 15,702
Non-controlling interests 825 825
Total shareholders' equity 17,190 16,527
1.
On 31 March 2025, NZ Branch approved a NZ$150 million repatriation of retained earnings to the Ultimate Parent Bank. As at 7 May 2025, no payment has yet been made.
Share capital
The table below details the movement in shares and share capital for the period.
31 Mar 25 30 Sep 24
Number of shares NZ$m Number of shares NZ$m
Ordinary shares 378,155,112 1,450 378,155,112 1,450
Redeemable preference shares
Balance at start of period 11,527,618,950 13,094 8,354,563,940 9,594
Redeemable preference shares issued - - 3,173,100,000 3,500
Uncalled redeemable preference shares redeemed - - (44,990) -
Total redeemable preference shares at end of period 11,527,618,950 13,094 11,527,618,950 13,094
Total share capital 11,905,774,062 14,544 11,905,774,062 14,544
NZ Branch initial head office account - 11 - 11
Total share capital and initial head office account 11,905,774,062 14,555 11,905,774,062 14,555
Redeemable preference shares
All redeemable preference shares (RPS) were issued by ANZ Holdings (New Zealand) Limited to the Immediate Parent Company. RPS are redeemable by
ANZ Holdings (New Zealand) Limited providing notice in writing to holders of the redeemable preference shares. Dividends are payable at the discretion of
the Directors of ANZ Holdings (New Zealand) Limited and are non-cumulative.
There are nine classes of RPS, relating to issues in 1988, 2005, 2007, 2008, 2009, 2014, 2015, 2018 and 2024. ANZ Holdings (New Zealand) Limited
did not pay any dividends on RPS during the periods ended 31 March 2025 and 31 March 2024.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Notes to the condensed consolidated interim financial statements 21
10. Shareholders’ equity (continued)
Non-controlling interests
The Bank has issued perpetual preference shares (PPS). The PPS are considered non-controlling interests to ANZBGL New Zealand.
Profit attributable to
non-controlling interest
Equity attributable to
non-controlling interest
Dividends paid to
non-controlling interests
31 Mar 25 31 Mar 24 31 Mar 25 30 Sep 24 31 Mar 25 31 Mar 24
NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Perpetual preference shares 21 14 825 825 21 14
Total 21 14 825 825 21 14
PPS do not carry any voting rights. They are 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 PPS are entitled to an amount equal to the issue price of the PPS. Holders of PPS rank behind the claims of all
depositors and other creditors of the Bank (other than creditors that rank equally with the PPS), equally with the rights of other holders of PPS and other
equal ranking securities and obligations, and in priority to the rights of holders of ordinary shares.
Holders of PPS are entitled to receive dividends that are discretionary, non-cumulative and subject to conditions. If a PPS dividend is not paid, there are
certain restrictions on the ability of the Bank to pay a dividend on its ordinary shares. Holders of the PPS have no other rights to participate in the profits or
property of the Bank.
Holders of PPS have no right to require that the PPS be redeemed.
The Bank has two classes of PPS that are quoted on the NZX Debt Market: PPS issued in 2022 and PPS issued in 2024.
The key terms of the PPS are as follows:
2022 PPS 2024 PPS
Issue date 18 July 2022 19 March 2024
Issue amount NZ$550 million NZ$275 million
First optional redemption date 18 July 2028 19 March 2030
Final maturity date Perpetual Perpetual
Dividend amount
6.95% per annum until 18 July 2028 (after which it
changes to a floating rate equal to the New Zealand 3-
month bank bill rate plus 3.25%), multiplied by one
minus the New Zealand company tax rate (where the
PPS dividend is fully imputed).
7.60% per annum until 19 March 2030 (after which it
changes to a floating rate equal to the New Zealand 3-
month bank bill rate plus 3.25%), multiplied by one
minus the New Zealand company tax rate (where the
PPS dividend is fully imputed).
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
22 Notes to the condensed consolidated interim financial statements
11. Commitments and contingent liabilities
Credit related commitments and contingencies
31 Mar 25 30 Sep 24
NZ$m NZ$m
Contract amount of:
Undrawn facilities 28,447 25,759
Guarantees and letters of credit 1,319 1,232
Performance related contingencies 1,594 1,598
Total 31,360 28,589
ANZBGL New Zealand guarantees the performance of customers by issuing standby letters of credit and guarantees to third parties, including its Ultimate
Parent Bank. The risk involved is essentially the same as the credit risk involved in extending loan facilities to customers, therefore these transactions are
subjected to the same credit origination, portfolio management and collateral requirements for customers applying for loans. As the facilities may expire
without being drawn upon, the notional amounts do not necessarily reflect future cash requirements.
Other contingent liabilities
There are outstanding court proceedings, claims and possible claims for and against ANZBGL New Zealand. 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 ANZBGL New Zealand.
Regulatory and customer exposures
ANZBGL New Zealand regularly engages with its regulators. The nature of these regulatory interactions can be wide ranging and include regulatory
investigations, surveillance and reviews, reportable situations, formal and informal inquiries and regulatory supervisory activities in New Zealand and
globally. ANZBGL New Zealand also receives notices and requests for information from its regulators from time to time as part of both industry-wide and
ANZBGL New Zealand-specific reviews and makes disclosures to its regulators at its own instigation.
The nature of these interactions can be wide ranging and, for example, may relate to 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.
The possible exposures associated with the Bank’s regulatory interactions may include civil enforcement actions, criminal proceedings, fines and penalties,
imposition of capital or liquidity requirements, customer remediation, the requirement to conduct independent reviews, sanctions or the exercise of other
regulatory powers.
There may also be exposures to customers, investors or third parties which are additional to any regulatory exposures. These could include class actions
or claims for compensation or other remedies.
The outcomes and total costs associated with these possible regulatory, customer and other exposures remain uncertain.
Loan information litigation
The Bank is defending an opt-out representative proceeding where the plaintiffs are alleging breaches of disclosure requirements under consumer credit
legislation in respect of variation letters sent to certain loan customers. T he High Court ruled the relevant class was 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. In July 2024, the
Court of Appeal, among other things, confirmed the class and granted the plaintiff’s application for a common fund order with immediate effect. The Bank
applied to the Supreme Court for leave to appeal the Court of Appeal’s decision as it relates to common fund orders, but the Supreme Court declined to
hear arguments on the issue. The matter has been referred back to the High Court. The parties are in discussion regarding notification of the claim to
class members and next steps.
Warranties and indemnities
The Bank has provided warranties, indemnities and other commitments in various contracts for the disposal of businesses and assets and other
commercial 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.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand
Limited assurance report
23
Independent Auditor’s Review Report
To the Directors of Australia and New Zealand Banking Group Limited
Report on the condensed consolidated interim financial statements
Conclusion
We have completed a review of the accompanying condensed consolidated interim financial statements (interim financial statements) which
comprises:
•the consolidated balance sheet as at 31 March 2025;
•the consolidated income statement, statement of comprehensive income, changes in equity and cash flows for the six month period then ended;
an
d
•no
tes, including a summary of material accounting policies and other explanatory information.
Based on our review of the interim financial statements of the New Zealand business of Australia and New Zealand Banking Group Limited and its
subsidiaries (together, ANZBGL New Zealand) on pages 4 to 22, nothing has come to our attention that causes us to believe that the 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).
Basis for conclusion
We conducted our review of the interim financial statements in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by
the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor's Responsibilities section of our
report.
We are independent of ANZBGL New Zealand in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual
disclosure statement and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements.
O
ur firm has provided other services to ANZBGL New Zealand in relation to reviews of regulatory returns, internal controls reports, prospectus
assurance or reviews, agreed upon procedures engagements and other assurance engagements. Subject to certain restrictions, partners and
employees of our firm may also deal with ANZBGL New Zealand on normal terms within the ordinary course of trading activities of the business of
ANZBGL New Zealand. These matters have not impaired our independence as auditor of ANZBGL New Zealand. The firm has no other relationship
with, or interest in, ANZBGL New Zealand.
Use of this review report
This review report is made solely to the Directors of Australia and New Zealand Banking Group Limited. Our review work has been undertaken so that
we might state to the Directors of Australia and New Zealand Banking Group Limited those matters we are required to state to them in this review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Directors
of Australia and New Zealand Banking Group Limited for our review work, this review report, or any of the conclusions we have formed.
Responsibilities of Directors
The Directors, on behalf of ANZBGL New Zealand are responsible for:
•the preparation and fair presentation of ANZBGL New Zealand interim financial statements in accordance with NZ IAS 34 and IAS 34; and
•implementing necessary internal control to enable the preparation of interim financial statements that are fairly presented and free from material
misstatement, whether due to fraud or error.
Auditor’s responsibilities
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that causes us to believe that the interim financial
statements do not present fairly and comply with NZ IAS 34 and IAS 34, in all material respects, ANZBGL New Zealand’s financial position as at 31
March 2025 and its financial performance and cash flows for the six months ended on that date.
A review of the interim financial statements prepared in accordance with NZ SRE 2410 (Revised) 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.
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 interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Jamie Munro.
For and on behalf of:
KP
MG
Auckland
7 May 2025
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand
24
Registered Bank Disclosures
This section contains the disclosures required by the Registered Bank Disclosure Statements
(Overseas Incorporated Registered Banks) Order 2014.
Section Order reference Page
B1. General disclosures Schedule 3 25
B2. Additional financial disclosures Schedule 5 26
B3. Asset quality Schedule 7 31
B4. Credit and market risk exposures and capital adequacy Schedule 9 33
B5. Insurance business Schedule 12 33
Directors’ and New Zealand Chief Executive Officer’s statement 34
Limited assurance reports 35
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Registered bank disclosures 25
B1. General disclosures
Guarantees
No material obligations of the NZ Branch are guaranteed as at 7 May 2025.
Changes in the Ultimate Parent Bank’s Board of Directors
Jane Halton, AO PSM retired as an independent non-executive director on 31 March 2025. As at 7 May 2025, there have been no other changes to the
Directors of the Ultimate Parent Bank since 30 September 2024, 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 ANZBGL New Zealand that may have a material adverse effect
on the NZ Branch or ANZBGL New Zealand is included in Note 11 Commitments and contingent liabilities.
Credit rating
The Ultimate Parent Bank has credit ratings that apply to its long-term senior unsecured obligations payable in New Zealand in New Zealand dollars.
As at 7 May 2025, the Ultimate Parent Bank’s credit ratings are:
Rating agency Credit rating Qualification
S&P Global Ratings
AA- Outlook Stable
Fitch Ratings AA- Outlook Stable
Moody’s Investors Service Aa2 Outlook Stable
Other material matters
RBNZ capital requirements
RBNZ has revised the capital adequacy requirements applying to New Zealand locally incorporated registered banks. As a result, the Banking Group is
materially increasing the level of capital it holds over the transition period from October 2021 to July 2028. In March 2025, RBNZ announced that it intends
to conduct a reassessment of key capital settings, with any changes expected to be advised ahead of next year’s (1 July 2026) scheduled increase.
Whilst the outcomes of the future assessment are unknown, at this stage the existing key requirements for the Banking Group still being implemented are:
• The Banking Group’s total capital requirement will progressively increase to 18% of risk weighted assets (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. 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 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 2025, the Bank had NZ$938 million of AT1
instruments that will progressively lose eligible regulatory capital treatment over the transition period to July 2028.
Financial statements of the Ultimate Parent Bank and Overseas Banking Group
Copies of the most recent publicly available financial statements of the Ultimate Parent Bank and Overseas Banking Group will be provided immediately,
free of charge, to any person requesting a copy where request is made at the Registered Office. The most recent publicly available financial statements
for the Ultimate Parent Bank and Overseas Banking Group can also be accessed at the website anz.com/shareholder/centre/.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
26 Registered bank disclosures
B2. Additional financial disclosures
Additional information on the balance sheet
As at 31 March 2025
NZ$m
Total interest earning and discount bearing assets 186,340
Total interest and discount bearing liabilities 155,451
Total amounts due from related entities 6,225
Total amounts due to related entities 9,452
Total liabilities of the NZ Branch less amounts due to related entities 4
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 ANZBGL New Zealand’s covered bond
programmes; and
• collateral provided to RBNZ under the Term Lending Facility and Funding for Lending Programme.
The carrying amounts of assets pledged as security are as follows:
As at 31 March 2025
NZ$m
Securities sold under agreements to repurchase 1,311
Residential mortgages pledged as security for repurchase agreements with RBNZ 2,955
Total assets of the ANZNZ Covered Bond Trust pledged as security for covered bonds 9,229
Additional information on the income statement
The amounts of net trading gains or losses and other fair value adjustments are included in Note 2 Other operating income. ANZBGL New Zealand does
not have any material credit risk adjustments on financial assets designated at FVTPL. Other operating income for the purposes of the Order comprises
net fee and commission income, and all other items of other income (all in Note 2 Other operating income).
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Registered bank disclosures 27
B2. Additional financial disclosures (continued)
Additional information on concentrations of credit risk
Analysis of financial assets by industry is based on Australian and New Zealand Standard Industrial Classification (ANZSIC) codes. The significant
categories shown are the level one New Zealand Standard Industry Output Categories (NZSIOC), except that Agriculture is shown separately as required
by the Order.
Composition of financial instruments that give rise to credit risk by industry group are presented below:
Loans and
advances
Other
financial
assets
Off-balance
sheet credit
related
commitments Total
As at 31 March 2025 NZ$m NZ$m NZ$m NZ$m
New Zealand residents
Agriculture 14,981 78 1,185 16,244
Forestry and fishing, agriculture services 516 6 104 626
Mining 99 2 211 312
Manufacturing 2,429 253 1,773 4,455
Electricity, gas, water and waste services 670 197 3,681 4,548
Construction 1,020 5 961 1,986
Wholesale trade 1,581 72 1,382 3,035
Retail trade and accommodation 2,793 15 703 3,511
Transport, postal and warehousing 1,067 32 667 1,766
Finance and insurance services 1,223 13,640 1,327 16,190
Rental, hiring & real estate services 36,991 1,929 1,970 40,890
Professional, scientific, technical, administrative and support services 1,100 15 533 1,648
Public administration and safety 239 13,314 883 14,436
Health care and social assistance 927 7 235 1,169
Households 85,074 406 14,049 99,529
All other New Zealand residents
1
1,185 81 1,422 2,688
Subtotal 151,895 30,052 31,086 213,033
Overseas
Finance and insurance services 50 12,985 274 13,309
Households 1,542 7 - 1,549
All other non-New Zealand residents 596 11 - 607
Subtotal 2,188 13,003 274 15,465
Gross subtotal 154,083 43,055 31,360 228,498
Allowance for ECL (712) - (126) (838)
Subtotal 153,371 43,055 31,234 227,660
Unearned income (25) - - (25)
Capitalised brokerage and other origination costs 566 - - 566
Maximum exposure to credit risk 153,912 43,055 31,234 228,201
1.
All other New Zealand residents includes exposures to information media and telecommunications, education and training; arts and recreation services; and other services.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
28 Registered bank disclosures
B2. Additional financial disclosures (continued)
Additional information on concentrations of funding
Analysis of funding liabilities by industry is based on ANZSIC codes. The significant categories shown are the level one NZSIOC.
As at 31 March 2025
NZ$m
Funding composition
Customer deposits 140,896
Wholesale funding
Debt issuances 17,735
Certificates of deposit and commercial paper 3,458
Other borrowings 7,013
Total wholesale funding 28,206
Total deposits and wholesale funding 169,102
Customer deposits by industry - New Zealand residents
Agriculture, forestry and fishing 4,694
Mining 309
Manufacturing 2,960
Construction 3,223
Wholesale trade 2,324
Retail trade and accommodation 2,406
Transport, postal and warehousing 1,540
Financial and insurance services 14,000
Rental, hiring and real estate services 3,771
Professional, scientific, technical, administrative and support services 7,018
Public administration and safety 1,805
Health care and social assistance 1,524
Arts, recreation and other services 2,330
Households 78,968
All other New Zealand residents
1
3,034
Subtotal 129,906
Customer deposits by industry - overseas
Households 9,979
All other non-New Zealand residents 1,011
Subtotal 10,990
Total customer deposits 140,896
Wholesale funding (financial and insurance services industry)
New Zealand 6,032
Overseas 22,174
Total wholesale funding 28,206
Total deposits and wholesale funding 169,102
Concentrations of funding by geography
New Zealand 135,938
Australia 4,855
United States 10,940
Europe 9,537
Other countries 7,832
Total deposits and wholesale funding 169,102
1.
All other New Zealand residents includes electricity, gas, water and waste services; information media and telecommunications; and education and training.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Registered bank disclosures 29
B2. Additional financial disclosures (continued)
Additional information on interest rate sensitivity
The following table represents the interest rate sensitivity of ANZBGL New Zealand's assets, liabilities and off-balance sheet instruments by showing the
periods in which these instruments may reprice, that is, when interest rates applicable to each asset or liability can be changed.
Total
Up to
3 months
Over 3 to
6 months
Over 6 to
12 months
Over 1 to
2 years
Over
2 years
Not bearing
interest
1
As at 31 March 2025 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Assets
Cash and cash equivalents 11,145 10,925 - - - - 220
Settlement balances receivable 687 - - - - - 687
Collateral paid 742 742 - - - - -
Trading securities 5,774 314 413 293 1,139 3,615 -
Derivative financial instruments 8,871 - - - - - 8,871
Investment securities 14,882 - - 98 1,424 13,355 5
Net loans and advances 153,912 74,817 21,325 36,934 17,194 3,752 (110)
Other financial assets 1,076 - - - - - 1,076
Total financial assets 197,089 86,798 21,738 37,325 19,757 20,722 10,749
Liabilities
Settlement balances payable 3,391 1,799 - - - - 1,592
Collateral received 951 951 - - - - -
Deposits and other borrowings 151,367 95,440 18,923 13,447 3,771 2,841 16,945
Derivative financial instruments 8,149 - - - - - 8,149
Debt issuances 17,735 811 419 (3) 4,616 11,892 -
Lease liabilities 191 12 12 22 40 105 -
Other financial liabilities 1,440 353 - - - - 1,087
Total financial liabilities 183,224 99,366 19,354 13,466 8,427 14,838 27,773
Hedging instruments - 5,923 2,467 (12,678) (1,682) 5,970 -
Interest sensitivity gap 13,865 (6,645) 4,851 11,181 9,648 11,854 (17,024)
1.
Excludes non-coupon bearing discounted financial assets and financial liabilities which are shown as repricing on their maturity date.
Additional information on liquidity risk
Maturity analysis of financial liabilities
The table below provides residual contractual maturity analysis of financial liabilities at 31 March 2025 within relevant maturity groupings. All outstanding
debt issuances are profiled on the earliest date on which ANZBGL New Zealand may be required to pay. The amounts represent principal and interest
cash flows – so they may differ from equivalent amounts reported on the balance sheet.
On demand
Less than
3 months
3 to 12
months
1 to 5
years
After
5 years Total
As at 31 March 2025 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Settlement balances payable 2,662 753 - - - 3,415
Collateral received - 951 - - - 951
Deposits and other borrowings 81,018 31,141 34,039 6,451 9,944 162,593
Derivative financial liabilities (trading) - 8,088 - - - 8,088
Debt issuances
1
- 65 989 19,148 - 20,202
Lease liabilities - 14 39 124 41 218
Other financial liabilities - 125 6 157 288 576
Derivative financial instruments (balance sheet management)
- gross inflows - 1,475 3,658 7,922 922 13,977
- gross outflows - (1,577) (3,765) (8,178) (923) (14,443)
1.
Any callable wholesale debt instruments have been included at their next call date.
At 31 March 2025, NZ$31,360 million of its credit related commitments and contingent liabilities mature in less than 1 year, based on the earliest date on
which ANZBGL New Zealand may be required to pay.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
30 Registered bank disclosures
B2. Additional financial disclosures (continued)
Liquidity portfolio management
ANZBGL New Zealand holds a diversified portfolio of cash and high quality liquid securities primarily to support liquidity risk management. The size of
ANZBGL New Zealand’s liquidity portfolio is determined with consideration of the amount required to meet the requirements of its internal and regulatory
liquidity scenario metrics.
As at 31 March 2025
NZ$m
Central and local government bonds 11,804
Government treasury bills 621
Certificates of deposit 172
Other bonds 7,650
Securities eligible to be accepted as collateral in repurchase transactions 20,247
Cash and balances with central banks 9,601
Total liquidity portfolio 29,848
Assets held in ANZBGL New Zealand’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$11,137 million at 31 March 2025
(September 2024: NZ$10,480 million).
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 December 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 2025, the Bank had drawn NZ$194 million (September 2024: NZ$228 million) under the TLF and NZ$2,000 million under the FLP
(September 2024: NZ$2,500 million). These amounts are included in securities sold under repurchase agreements in Note 6 Deposits and other
borrowings.
Overseas Banking Group profitability and size
31 Mar 25
Net profit for the six months ended 31 March 2025 (AUDm) 3,684
Net profit after tax for the 12 months ended 31 March 2025 as a percentage of average total assets 0.55%
Total assets (AUDm) 1,302,971
Percentage change in total assets in the 12 months to 31 March 2025 19.52%
Reconciliation of mortgage related amounts
As at 31 March 2025 Note NZ$m
Term loans - housing
1
4 113,396
Less: housing loans made to corporate customers (1,408)
On-balance sheet residential mortgage exposures (per LVR analysis) B4 111,988
Add: off-balance sheet residential mortgage exposures (per LVR analysis) B4 9,964
Total residential mortgage exposures (per LVR analysis) B4 121,952
1.
Term loans – housing includes loans secured over residential property for owner-occupier, residential property investment and business purposes.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Registered bank disclosures 31
B3. Asset quality
This section should be read in conjunction with the estimates, assumptions and judgements included in Note 1 About our interim financial statements,
Note 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 at amortised cost NZ$m NZ$m NZ$m NZ$m NZ$m
As at 1 October 2024 187 370 104 64 725
Transfer between stages 56 (57) - 1 -
New and increased provisions (net of releases) (78) 69 - 38 29
Write-backs - - - (20) (20)
Recoveries of amounts previously written off - - - (4) (4)
Credit impairment charge/(release) (22) 12 - 15 5
Bad debts written-off (excluding recoveries) - - - (23) (23)
Add back recoveries of amounts previously written off - - - 4 4
Discount unwind reversal - - - 1 1
As at 31 March 2025 165 382 104 61 712
Off-balance sheet credit related commitments
As at 1 October 2024 74 56 3 3 136
Transfer between stages 5 (5) - - -
New and increased provisions (net of releases) (10) 1 - (1) (10)
Credit impairment charge/(release) (5) (4) - (1) (10)
As at 31 March 2025 69 52 3 2 126
Impacts of changes in gross financial assets on loss allowances
Gross loans and advances at amortised cost
As at 1 October 2024 138,627 11,939 1,257 370 152,193
Net transfers into each stage 437 14 387 10 848
Amounts drawn from new or existing facilities 22,028 761 37 159 22,985
Additions 22,465 775 424 169 23,833
Net transfers out of each stage (319) (528) - (1) (848)
Amounts repaid (19,212) (1,771) (232) (173) (21,388)
Deletions (19,531) (2,299) (232) (174) (22,236)
Amounts written off - - - (23) (23)
As at 31 March 2025 141,561 10,415 1,449 342 153,767
Loss allowance as at 31 March 2025 165 382 104 61 712
Off-balance sheet credit related commitments
As at 1 October 2024 27,010 1,543 26 10 28,589
Net transfers into each stage - 208 3 2 213
New and increased facilities and drawn amounts repaid 6,771 164 2 5 6,942
Additions 6,771 372 5 7 7,155
Net transfers out of each stage (206) - (7) - (213)
Reduced facilities and amounts drawn (3,949) (214) (6) (2) (4,171)
Deletions (4,155) (214) (13) (2) (4,384)
As at 31 March 2025 29,626 1,701 18 15 31,360
Loss allowance as at 31 March 2025 69 52 3 2 126
Explanation of how changes in the gross carrying amounts of gross loans and advances contributed to changes in loss allowance
Overall, loss allowances are 0.45% of gross balances as at 31 March 2025, down from 0.48% as at 30 September 2024. The NZ$23 million (2.7%)
decrease in loss allowances was driven by a decrease in the proportion of gross balances in Stage 2 and changes in the forward-looking economic
scenarios as described in Note 5 Allowance for expected credit losses, partially offset by an increase in management temporary adjustments.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
32 Registered bank disclosures
B3. Asset quality (continued)
Past due assets and other asset quality information
Total
As at 31 March 2025
NZ$m
Past due assets
Less than 30 days past due 1,215
At least 30 days but less than 60 days past due 641
At least 60 days but less than 90 days past due 307
At least 90 days past due 1,113
Total past due but not individually impaired 3,276
Other asset quality information
Undrawn facilities with individually impaired customers 15
Other assets under administration 3
Asset quality for financial assets designated at fair value
ANZBGL New Zealand has no financial assets designated at FVTPL where changes in fair value are attributable to the credit risk of the financial asset.
Overseas Banking Group asset quality
As at 31 Mar 25
Individually impaired assets (AUDm) 1,100
Individually impaired assets as a percentage of total assets 0.1%
Individual credit impairment allowance (AUDm) 364
Individual credit impairment allowance as a percentage of individually impaired assets 33.1%
Collective credit impairment allowance (AUDm) 4,280
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand unaudited
Registered bank disclosures 33
B4. Credit and market risk exposures and capital adequacy
APRA Basel III capital ratios
Overseas Banking Group
Ultimate Parent Bank
(Extended Licensed Entity)
As at
31 Mar 25 31 Mar 24 31 Mar 25 31 Mar 24
Common equity tier 1 capital 11.8% 13.5% 12.0% 13.3%
Tier 1 capital 13.4% 15.4% 13.9% 15.6%
Total capital 20.4% 21.9% 22.1% 23.2%
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 2025 and for the comparative prior periods.
The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 31 March 2025. The Overseas Banking Group’s Pillar 3
disclosure document for the quarter ended 31 March 2025, in accordance with APS 330: Public Disclosure of Prudential Information, discloses capital
adequacy ratios and other prudential information. This document can be accessed at the website anz.com.
Market risk
ANZBGL New Zealand’s aggregate market risk exposures below have been calculated in accordance with the RBNZ document BPR140: Market Risk. The
peak end-of-day market risk exposures are for the six months ended 31 March 2025.
Implied risk
weighted exposure
Notional capital
charge
Period end Peak Period end Peak
As at 31 March 2025 NZ$m NZ$m NZ$m NZ$m
Interest rate risk 5,944 6,436 476 515
Foreign currency risk 46 95 4 8
Equity risk 5 5 - -
Additional mortgage information
As required by RBNZ, LVRs are calculated as the current exposure secured by a residential mortgage divided by ANZBGL New Zealand's valuation of the
security property at origination of the exposure. Off-balance sheet exposures include undrawn and partially drawn residential mortgage loans as well as
commitments to lend. Commitments to lend are formal offers for housing lending which have been accepted by the customer.
On-balance
sheet
Off-balance
sheet Total
As at 31 March 2025 NZ$m NZ$m NZ$m
LVR range
Does not exceed 60% 56,812 7,426 64,238
Exceeds 60% and not 70% 20,708 1,138 21,846
Exceeds 70% and not 80% 25,609 1,108 26,717
Does not exceed 80% 103,129 9,672 112,801
Exceeds 80% and not 90% 7,432 182 7,614
Exceeds 90% 1,427 110 1,537
Total 111,988 9,964 121,952
B5. Insurance business
As at 31 March 2025, ANZBGL New Zealand does not conduct any insurance business.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand
34
Directors' and New Zealand Chief Executive Officer's Statement
As at the date on which this Disclosure Statement is signed, after due enquiry, each Director of the Ultimate Parent Bank and the Chief Executive Officer –
NZ Branch believes that:
•The Disclosure Statement contains all the information that is required by the Registered Bank Disclosure Statements (Overseas Incorporated
Registered Banks) Order 2014; and
•The Disclosure Statement is not false or misleading.
Over the six months ended 31 March 2025, after due enquiry, each Director of the Ultimate Parent Bank and the Chief Executive Officer – NZ Branch
believes that:
•The Ultimate Parent Bank has complied in all material respects with each condition of registration that applied during that period
1
; and
•The NZ Branch and the Bank had systems in place to monitor and control adequately the material risks of Relevant Members of ANZBGL New Zealand
including credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk and other business risks, and that those
systems were being properly applied.
1.
In accordance with the Order, Australia and New Zealand Banking Group Limited – ANZBGL New Zealand has complied in all material respects with each of its conditions of registration that applied
during the period if RBNZ has not published any information about a breach on its website, and has not notified Australia and New Zealand Banking Group Limited – ANZBGL New Zealand of any
material breach.
Si
gned by the Chief Executive Officer – NZ Branch
Ch
ris O‘Neale
Chief Executive Officer – NZ Branch
7 May 2025
Si
gned on behalf of all the Directors of the Ultimate Parent Bank
An
tonia Watson
Responsible Person
7 May 2025
on
behalf of the Directors of the Ultimate Parent Bank:
John Cincotta
Shayne Elliott
Richard Gibb
Graham Hodges
Holly Kramer
Christine O’Reilly
Paul O’Sullivan
Jeff Smith
Scott St John
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand
Limited assurance report
35
Independent Auditor’s Review Report
To the Directors of Australia and New Zealand Banking Group Limited
Report on the Registered Bank Disclosures in sections B2, B3 and B5 of the Disclosure Statement
Conclusion
We have completed a review of the accompanying registered bank disclosures of the New Zealand business of Australia and New Zealand Banking
Group Limited and its subsidiaries (together, ANZBGL New Zealand) in sections B2, B3 and B5 on pages 26 to 33 of the Disclosure Statement as at
and for the six months ended 31 March 2025, which comprise the information that is required to be disclosed in accordance with Schedules 5, 7, 12
and 14 of Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended) (the Order).
Based on our review, nothing has come to our attention that causes us to believe that the accompanying registered bank disclosures in sections B2,
B3 and B5 of the Disclosure Statement:
•does not present fairly, in all material respects, the matters to which they relate; or
•is not disclosed, in all material respects, in accordance with those Schedules.
Basis for conclusion
We conducted our review of the registered bank disclosures in sections B2, B3 and B5 in accordance with NZ SRE 2410 (Revised) Review of Financial
Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s
Responsibilities section of our report.
We are independent of ANZBGL New Zealand in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual
disclosure statement and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements.
Our firm has provided services to ANZBGL New Zealand in relation to reviews of regulatory returns, internal controls reports, prospectus assurance or
reviews, agreed-upon procedures engagements and other assurance engagements. Subject to certain restrictions, partners and employees of our
firm may also deal with ANZBGL New Zealand on normal terms within the ordinary course of trading activities of the business of ANZBGL New
Zealand. These matters have not impaired our independence as auditor of ANZBGL New Zealand. The firm has no other relationship with, or interest
in, ANZBGL New Zealand.
Use of this review report
This review report is made solely to the Directors of Australia and New Zealand Banking Group Limited. Our review work has been undertaken so that
we might state to the Directors of Australia and New Zealand Banking Group Limited those matters we are required to state to them in this review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Directors
of Australia and New Zealand Banking Group Limited for our review work, this review report, or any of the conclusions we have formed.
Responsibilities of Directors
The Directors, on behalf of ANZBGL New Zealand are responsible for:
•the preparation and fair presentation of ANZBGL New Zealand registered bank disclosures in sections B1, B2, B3 and B5 of the Disclosure
Statement in accordance with Schedules 3, 5, 7, 12 and 14 of the Order; and
•implementing necessary internal control to enable the preparation of the registered bank disclosures in sections B1, B2, B3 and B5 of the
Disclosure Statement that are fairly presented and free from material misstatement, whether due to fraud or error.
Auditor’s responsibilities
Our responsibility is to express a conclusion on the registered bank disclosures in sections B2, B3 and B5 of the Disclosure Statement, based on our
review.
NZ SRE 2410 (Revised) 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 and B5 of the Disclosure Statement:
•does not present fairly, in all material respects, the matters to which they relate, in accordance with Schedules 5, 7, 12 and 14 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 New Zealand business of Australia and New Zealand
Banking Group Limited does not have any such conditions).
A review of the registered bank disclosures in sections B2, B3 and B5 of the Disclosure Statement prepared in accordance with NZ SRE 2410
(Revised) 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.
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 and B5 of the Disclosure Statement.
KP
MG
Auckland
7 May 2025
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand
36 Limited assurance report
Independent Limited Assurance Report
To the Directors of Australia and New Zealand Banking Group Limited
Report on the information relating to credit and market risk exposures and capital adequacy
Conclusion
Our limited assurance conclusion has been formed on the basis of the matters outlined in this report.
Based on our limited assurance engagement, which is not a reasonable assurance engagement or audit, nothing has come to our attention that
would lead us to believe that the information relating to the credit and market risk exposures and capital adequacy of the New Zealand business of
Australia and New Zealand Banking Group Limited and its subsidiaries (together, ANZBGL New Zealand), disclosed in section B4 on page 33 of the
Disclosure Statement, is not, in all material respects, disclosed in accordance with Schedule 9 of the Registered Bank Disclosure Statements
(Overseas Incorporated Registered Banks) Order 2014 (as amended) (the Order).
Information subject to assurance
We have reviewed the information relating to the credit and market risk exposures and capital adequacy, as disclosed in section B4 of the Disclosure
Statement as at and for the six months ended 31 March 2025.
Criteria
The information relating to the credit and market risk exposures and capital adequacy comprises the information that is required to be disclosed in
accordance with Schedule 9 of the Order.
Standards we followed
We conducted our limited assurance engagement in accordance with Standard on Assurance Engagements 3100 (Revised) Compliance
Engagements (SAE 3100 (Revised)) issued by the New Zealand Auditing and Accounting Standards Board. We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis for our limited conclusion. In accordance with the SAE 3100 (Revised), we have:
•used our professional judgement to plan and perform the engagement to obtain limited assurance that the information relating to credit an
d
market risk exposures and capital adequacy, is 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;
•ensured that the engagement team possesses the appropriate knowledge, skills and professional competencies
;
•obtained an understanding of the process, models, data and internal controls implemented over the preparation of the information relating to credit
and market risk exposures and capital adequacy;
•performed inquiry and analytical review procedures over the credit and market risk exposures and capital adequacy;
•obtained an understanding of ANZBGL New Zealand’s compliance framework and internal control environment over the information relating to credi
t
a
nd market risk exposures and capital adequacy, including ANZBGL New Zealand’s assessment of any matters of non-compliance with the Reserve
Bank of New Zealand’s Prudential Requirements; and
•agreed the information relating to credit and market risk exposures and capital adequacy, extracted from ANZBGL New Zealand’s models, accountin
g
r
ecords or other supporting documentation to the Disclosure Statement.
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 judgment, including identifying areas where the risk of material misstatement and non-compliance with Schedule 9 of the Order.
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 information relating to credit and market risk exposures and capital adequacy and non-compliance are
considered material if, individually or in aggregate, they it could reasonably be expected to influence the relevant decisions of the intended users taken
on the basis of the information relating to credit and market risk exposures and capital adequacy.
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.
A limited assurance engagement as at and for the six months ended 31 M
arch 2025 does not provide assurance on whether compliance with
Schedule 9 of the Order will continue in the future.
Use of this assurance report
Our report is made solely for Australia and New Zealand Banking Group Limited’s Directors. Our assurance work has been undertaken so that we
might state to Australia and New Zealand Banking Group Limited’s Directors those matters we are required to state to them in the assurance report
and for no other purpose.
Our report should not be regarded as suitable to be used or relied on by anyone other than Australia and New Zealand Banking Group Limited and
Australia and New Zealand Banking Group Limited’s Directors for any purpose or in any context. Any other person who obtains access to our report or a
copy thereof and chooses to rely on our report (or any part thereof) will do so at its own risk.
Australia and New Zealand Banking Group Limited - ANZBGL New Zealand
Limited assurance report
37
To the fullest extent permitted by law, none of KPMG, any entities directly or indirectly controlled by KPMG, or any of their respective members or
employees accept or assume any responsibility and deny all liability to anyone other than Australia and New Zealand Banking Group Limited and Australia
and New Zealand Banking Group Limited’s Directors for our work, for this independent assurance report, and/or for the opinions or conclusions we have
reached.
Our conclusion is not modified in respect of this matter.
Responsibilities of Directors
The Directors of Australia and New Zealand Banking Group Limited are responsible for the disclosure of the information relating to credit and market
risk exposures and capital adequacy in accordance with Schedule 9 of the Order, which Directors have determined meets the disclosure
requirements under the Order. This responsibility includes such internal control as the Directors determine is necessary to enable compliance and to
monitor ongoing compliance and to enable the disclosure of the information relating to credit and market risk exposures and capital adequacy that is
free from material misstatement and non-compliance whether due to fraud or error.
Our responsibility
Our responsibility is to express a conclusion to Australia and New Zealand Banking Group Limited on whether anything has come to our attention that
would lead us to believe that, in all material respects the information relating to credit and market risk exposures and capital adequacy has not been
disclosed in accordance with Schedule 9 of the Order as at and for the six months ended 31 March 2025.
Our independence and quality management
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) (PES 1) 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 (PES 3), which requires the firm to design, implement and operate a system of quality control including
policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our firm has provided services to ANZBGL New Zealand in relation to reviews of regulatory returns, internal controls reports, prospectus assurance or
reviews, agreed-upon procedures engagements and other assurance engagements. Subject to certain restrictions, partners and employees of our
firm may also deal with ANZBGL New Zealand on normal terms within the ordinary course of trading activities of the business of ANZBGL New
Zealand. These matters have not impaired our independence as auditor of ANZBGL New Zealand. The firm has no other relationship with, or interest
in, ANZBGL New Zealand.
KP
MG
Auckland
7 May 2025
anz.co.nz
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- WBC — Westpac Banking Corporation: WBC - NZ Banking Group Disclosure Statement - 31 Mar 20252025-05-12
“Certain information contained in this Disclosure Statement is required by the Order. In this Disclosure Statement, reference is made to: -Overseas Bank - refers to Westpac Banking Corporation; -Overseas Banking Group - refers to the Overseas Bank and all other entities included i…”