Australia and New Zealand Banking Group Ltd. - Annual Report 2025

==> picture [102 x 35] intentionally omitted <==

10 November 2025

Market Announcements Office ASX Limited Exchange Place Level 27 39 Martin Place 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 year ended 30 September 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 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522

==> picture [121 x 39] intentionally omitted <==

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered Bank Disclosure Statement For the year ended 30 September 2025

==> picture [539 x 180] intentionally omitted <==

----- Start of picture text -----

Contents
Additional information 2
Glossary 2
Disclosure Statement
Financial Statements 3
Consolidated financial statements 4
Notes to the consolidated financial statements 8
Independent auditor’s report 66
Registered Bank Disclosures 72
Directors' and New Zealand Chief Executive Officer's statement 90
Assurance reports 91
----- End of picture text -----

Additional information

Climate Statements for the year ended 30 September 2025

ANZBGL has climate reporting obligations under the Financial Markets Conduct Act 2013 (FMCA) as a climate reporting entity (CRE). For the financial year ended 30 September 2025, ANZBGL is relying on the Financial Markets Conduct (Climate-related Disclosures – Australia and New Zealand Banking Group Limited) Exemption Notice 2024. The effect of relying on this exemption is that ANZBGL’s New Zealand business is not required to prepare and lodge a climate statement under Part 7A of the FMCA for the financial year ended 30 September 2025.

ANZ Group, including ANZBGL, has prepared a voluntary climate report for the financial year ending 30 September 2025 in accordance with the Task Force on Climate-related Financial Disclosures. The report is accessible at the website anz.com/esgreport.

The Bank is also a CRE. It prepares an annual climate statement for itself and its subsidiaries in accordance with Part 7A of the FMCA. These can be accessed at anz.co.nz/about-us/corporate-responsibility/environment/. The climate statement for the reporting period ended 30 September 2025 will be published by 31 January 2026.

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, ANZBGL 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 and address for service is Level 10, 171 Featherston Street, Wellington, New Zealand.

RBNZ means the Reserve Bank of New Zealand.

APRA means the Australian Prudential Regulation Authority.

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.

Financial Statements	Financial Statements
Contents
Consolidated Financial Statements
Income Statement	4
Statement of Comprehensive Income	4
Balance Sheet	5
Cash Flow Statement	6
Statement of Changes in Equity	7
Notes to the Consolidated		Non-financial assets
Financial Statements		18. Goodwill and other intangible assets	50
Basis of preparation
1. About our financial statements	8	Non-financial liabilities
		19. Other provisions	54
Financial performance
2. Operating income	10	Equity
3. Operating expenses	12	20. Shareholders’ equity	55
4. Income tax	13	21. Capital management	57
5. Dividends	14
6. Segment reporting	15	Consolidation and presentation
		22. Controlled entities	58
Financial assets		23. Structured entities	59
7. Cash and cash equivalents	16	24. Assets pledged, collateral accepted,
8. Trading securities	17	and financial assets transferred	61
9. Derivative financial instruments	18
10. Investment securities	23	Other disclosures
11. Net loans and advances	24	25. Related party disclosures	62
12. Allowance for expected credit losses	25	26. Commitments and contingent liabilities	64
		27. Auditor fees	65
Financial liabilities
13. Deposits and other borrowings	31	Independent auditor’s report	66
14. Debt issuances	32
Financial instrument disclosures
15. Financial risk management	33
16. Fair value of financial assets and financial
liabilities	46
17. Offsetting	49

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Consolidated financial statements

Income Statement

Income Statement
		2025	2024
For the year ended 30 September	Note	NZ$m	NZ$m
Interest income		10,548	11,933
Interest expense		(6,075)	(7,617)
Net interest income	2	4,473	4,316
Other operating income	2	912	467
Operating income		5,385	4,783
Operating expenses	3	(1,814)	(1,761)
Profit before credit impairment and income tax		3,571	3,022
Credit impairment release/(charge)	12	25	(44)
Profit before income tax		3,596	2,978
Income tax expense	4	(1,015)	(846)
Profit for the year		2,581	2,132
Comprising:
Profit attributable to the shareholders of the Ultimate Parent Bank		2,538	2,097
Profit attributable to non-controlling interests		43	35

Statement of Comprehensive Income

Statement of Comprehensive Income
	2025	2024
For the year ended 30 September	NZ$m	NZ$m
Profit for the year	2,581	2,132
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Actuarial gain on defined benefit schemes	18	3
Items that may be reclassified subsequently to profit or loss
Reserve movements:
Unrealised gains recognised directly in equity	149	164
Realised gains transferred to the income statement	(4)	(2)
Income tax attributable to the above items	(45)	(46)
Total comprehensive income for the year	2,699	2,251
Comprising total comprehensive income attributable to:
The shareholders of the Ultimate Parent Bank	2,656	2,216
Non-controlling interests	43	35

The notes appearing on pages 8 to 65 form an integral part of these financial statements.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Consolidated financial statements

Balance Sheet

Balance Sheet
	Note	2025	2024
As at 30 September		NZ$m	NZ$m

Assets
Cash and cash equivalents	7	9,386	11,634
Settlement balances receivable		1,620	574
Collateral paid		1,114	1,041
Trading securities	8	6,348	5,576
Derivative financial instruments	9	11,446	10,173
Investment securities	10	16,458	13,295
Net loans and advances Deferred tax assets	11	158,964	151,963
	4	392	419
Goodwill and other intangible assets	18	3,100	3,094
Premises and equipment		324	363
Other assets		1,115	1,334
Total assets		210,267	199,466

Liabilities
Settlement balances payable		4,597	5,346
Collateral received		1,725	525
Deposits and other borrowings	13	156,172	145,323
Derivative financial instruments	9	10,198	11,150
Current tax liabilities		320	256
Payables and other liabilities		1,624	2,457
Employee entitlements		122	121
Other provisions	19	225	212
Debt issuances	14	17,766	17,549
Total liabilities		192,749	182,939
Net assets		17,518	16,527

Shareholders' equity
Share capital	20	14,555	14,555
Reserves	20	129	24
Retained earnings	20	2,009	1,123
Equity attributable to the shareholders of the Ultimate Parent Bank	20	16,693	15,702
Non-controlling interests	20	825	825
Total shareholders' equity	20	17,518	16,527

The notes appearing on pages 8 to 65 form an integral part of these financial statements.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Consolidated financial statements

Cash Flow Statement

Cash Flow Statement
	2025	2024
For the year ended 30 September	NZ$m	NZ$m
Profit for the year	2,581	2,132
Adjustments to reconcile to net cash provided by/(used in) operating activities:
Depreciation and amortisation	103	109
Impairment of premises and equipment and lease remeasurements	5	1
Net derivatives/foreign exchange adjustment	(869)	729
Other non-cash movements	(170)	(87)
Net (increase)/decrease in operating assets:
Collateral paid	(73)	(240)
Trading securities	(772)	345
Net loans and advances	(7,001)	(2,336)
Other assets	(800)	(353)
Net increase/(decrease) in operating liabilities:
Deposits and other borrowings (excluding items included in financing activities)	12,166	2,039
Settlement balances payable	(749)	2,460
Collateral received	1,200	(975)
Other liabilities	(736)	680
Total adjustments	2,304	2,372
Net cashprovided byoperatingactivities1	4,885	4,504
Cash flows from investing activities
Investment securities:
Purchases	(4,839)	(4,297)
Proceeds from sale or maturity	2,212	2,905
Other assets	(48)	(35)
Net cash used in investingactivities	(2,675)	(1,427)
Cash flows from financing activities
Deposits and other borrowings2	(1,563)	(1,072)
Debt issuances:3
Issue proceeds	1,689	2,567
Redemptions	(2,955)	(3,538)
Borrowings from Immediate Parent and Ultimate Parent Bank:4
Change in short term borrowings	127	(35)
Proceeds from issue of perpetual preference shares	-	271
Repayment of lease liabilities	(48)	(50)
Dividends paid5	(1,558)	(2,680)
NZ Branch retained earnings repatriated	(150)	-
Net cash used in financingactivities	(4,458)	(4,537)
Net change in cash and cash equivalents	(2,248)	(1,460)
Cash and cash equivalents at beginning of year	11,634	13,094
Cash and cash equivalents at end of year	9,386	11,634

Net cash provided by operating activities includes income taxes paid of NZ$969 million (2024: NZ$718 million).

Movement in deposits and other borrowings include repayments of repurchase transactions entered into with the RBNZ under the Term Lending Facility of NZ$63 million (2024: NZ$72 million) and NZ$1,500 million under the Funding for Lending Programme (2024: NZ$1,000 million).

Movement in debt issuances (Note 14 Debt issuances) also includes a NZ$1,402 million increase (2024: NZ$787 million decrease) from the effect of foreign exchange rates, a NZ$91 million increase (2024: NZ$811 million increase) from changes in fair value hedging instruments and a NZ$10 million decrease (2024: NZ$2 million increase) from other changes.

Movement in borrowings from Immediate Parent and Ultimate Parent Bank (Note 13 Deposit and other borrowings) also includes a NZ$103 million increase (2024: NZ$60 million decrease) from the effect of foreign exchange rates, and a NZ$16 million increase (2024: NZ$57 million increase) from changes in fair value hedging instruments. The prior year included a NZ$1 million increase of other changes. 5.

In the prior year, a non-cash dividend paid to the Immediate Parent Company of NZ$3,500 million in August 2024 was used to purchase redeemable preferences shares in ANZ Holdings (New Zealand) Limited.

The notes appearing on pages 8 to 65 form an integral part of these financial statements.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Consolidated financial statements

Statement of Changes in Equity

Statement of Changes in Equity
				Equity
				attributable
				to the
	Share capital			shareholders
	and initial			of the	Non-	Total
	head office		Retained	Ultimate	controlling	shareholders'
	account	Reserves	earnings	Parent Bank	interests	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 year	-	-	2,097	2,097	35	2,132
Other comprehensive income for the year	-	117	2	119	-	119
Total comprehensive income for the year	-	117	2,099	2,216	35	2,251
Transactions with equity holders in their capacity as equity
owners:
Ordinary shares dividends paid	-	-	(6,145)	(6,145)	-	(6,145)
Redeemable preference shares issued	3,500	-	-	3,500	-	3,500
Perpetual preference shares issued (net of issue costs)	-	-	(4)	(4)	275	271
Perpetual preference shares dividends paid	-	-	-	-	(35)	(35)
As at 30 September 2024	14,555	24	1,123	15,702	825	16,527
Profit or loss for the year	-	-	2,538	2,538	43	2,581
Other comprehensive income for the year	-	105	13	118	-	118
Total comprehensive income for the year	-	105	2,551	2,656	43	2,699
Transactions with equity holders in their capacity as equity
owners:
Ordinary shares dividends paid	-	-	(1,515)	(1,515)	-	(1,515)
Perpetual preference shares dividends paid	-	-	-	-	(43)	(43)
Other equity movements:
NZ Branch retained earnings repatriated	-	-	(150)	(150)	-	(150)
As at 30 September 2025	14,555	129	2,009	16,693	825	17,518

The notes appearing on pages 8 to 65 form an integral part of these financial statements.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

Notes to the Consolidated Financial Statements

1. About our financial statements

General information

These are the consolidated financial statements for ANZBGL New Zealand for the year ended 30 September 2025. The Ultimate Parent Bank is incorporated in Australia and is also registered in New Zealand (NZ Branch). The NZ Branch is domiciled in New Zealand, and the address of the NZ Branch's registered office and its principal place of business is Level 10, 171 Featherston Street, Wellington, New Zealand.

On 7 November 2025, the Directors resolved to authorise the issue of these financial statements.

Information in the financial statements is included only to the extent we consider it material and relevant to the understanding of the financial statements. A disclosure is considered material and relevant if, for example:

the amount is significant in size (quantitative factor);
the information is significant by nature (qualitative factor);
the user cannot understand ANZBGL New Zealand’s results without the specific disclosure (qualitative factor);
the information is critical to a user’s understanding of the impact of significant changes in ANZBGL New Zealand’s business during the period – for example, business acquisitions or disposals (qualitative factor);
the information relates to an aspect of ANZBGL New Zealand’s operations that is important to its future performance (qualitative factor); and
the information is required under legislative or other regulatory requirements.

This section of the financial statements:

outlines the basis upon which ANZBGL New Zealand’s financial statements have been prepared; and
discusses any new accounting standards or regulations that directly impact the financial statements.

Basis of preparation

These financial statements are general purpose (Tier 1) financial statements prepared by a ‘for profit’ entity, in accordance with the requirements of the Financial Markets Conduct Act 2013. These financial statements comply with:

New Zealand Generally Accepted Accounting Practice (NZ GAAP), as defined in the Financial Reporting Act 2013;
New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for publicly accountable for-profit entities; and
International Financial Reporting Standards (IFRS).

We present the financial statements of ANZBGL New Zealand in New Zealand dollars, which is ANZBGL New Zealand’s functional and presentation currency. We have rounded values to the nearest million dollars (NZ$m), unless otherwise stated.

Certain comparative amounts have been restated to conform with the basis of presentation in the current year.

Basis of measurement and presentation

The financial information has been prepared on a historical cost basis - except 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).

Basis of consolidation

The consolidated 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. An entity, including a structured entity, is considered a subsidiary of ANZBGL New Zealand when we determine that ANZBGL New Zealand has control over the entity. Control exists when ANZBGL New Zealand is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. We assess power by examining existing rights that give ANZBGL New Zealand the current ability to direct the relevant activities of the entity. We have eliminated, on consolidation, the effect of all transactions between entities in ANZBGL New Zealand.

Foreign currency translation

Transactions and balances

Foreign currency transactions are translated into the relevant functional currency at the exchange rate prevailing at the date of the transaction. At the reporting date, monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the relevant spot rate. Any foreign currency translation gains or losses that arise are included in profit or loss in the period they arise.

We measure translation differences on non-monetary items classified as FVTPL and report them as part of the fair value gain or loss on these items. For non-monetary items classified as investment securities measured at FVOCI, translation differences are included in other comprehensive income.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

1. About our financial statements (continued)

Fiduciary activities

ANZBGL New Zealand provides fiduciary services to third parties including custody, nominee and trustee services. This involves ANZBGL New Zealand holding assets on behalf of third parties and making decisions regarding the purchase and sale of financial instruments. If ANZBGL New Zealand is not the beneficial owner or does not control the assets, then we do not recognise these transactions in these financial statements, except when required by accounting standards or another legislative requirement.

==> picture [503 x 31] intentionally omitted <==

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. Further information on the key judgements and estimates that we consider material to the financial statements are contained within each relevant note to the financial statements.

The global economy continues to face challenges reflecting the impacts of global uncertainties from 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 financial statements.

ANZBGL New Zealand is exposed to climate risk either directly through its operations or indirectly, for example, through lending to customers. Climate risk may also be a driver of other risks within our risk management framework. Our most material climate risks arise from lending to business and retail customers, which contribute to credit risk.

ANZBGL New Zealand made various accounting estimates in these financial statements based on forecasts of economic conditions which reflect expectations and assumptions at 30 September 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 financial statements. The significant accounting estimates impacted by these forecasts and associated uncertainties are predominantly related to expected credit losses and recoverable amounts of non-financial assets.

The impact of these uncertainties on each of these accounting estimates is discussed in the relevant notes in these financial statements, along with assumptions and judgements made in relation to other key estimates. Readers should consider these disclosures in light of the uncertainties described above.

Accounting standards adopted in the period

Accounting policies have been consistently applied, unless otherwise noted.

Lease Liability in a Sale and Leaseback

Amendments to New Zealand Accounting Standards – Lease Liability in a Sale and Leaseback amends NZ IFRS 16 Leases and specifies the accounting for variable lease payments by seller-lessees in sale and leaseback transactions. The amendment was effective from 1 October 2024 and did not have a material impact on ANZBGL New Zealand.

Accounting standards not early adopted

A number of new standards, amendments to standards and interpretations have been published but are not mandatory for the financial statements for the year ended 30 September 2025 and have not been applied by ANZBGL New Zealand in preparing these financial statements. Further details of these are set out below.

NZ IFRS 18 Presentation and Disclosure in Financial Statements

In May 2024, the External Reporting Board (XRB) issued NZ IFRS 18 Presentation and Disclosure in Financial Statements (NZ IFRS 18) which updates and replaces requirements for the presentation and disclosure of information in financial statements. NZ IFRS 18 introduces new defined subtotals to be presented in the consolidated income statement, disclosure of management-defined performance measures and requirements for grouping of information. This standard will be effective for the financial year beginning 1 October 2027. We are currently assessing the impact of adopting this standard.

Classification and measurement amendments to NZ IFRS 9 Financial Instruments

In June 2024, the XRB issued Amendments to the Classification and Measurement of Financial Instruments which amends requirements related to settling financial liabilities using an electronic payment system and assessing contractual cash flow characteristics of financial assets with environmental, social and corporate governance and similar features. The amendments will be effective for the financial year beginning 1 October 2026. We are currently assessing the impact of adopting this standard.

Nature dependent electricity contracts

In May 2025, the XRB issued Amendments to NZ IFRS 9 Financial Instruments and NZ IFRS 7 Financial Instruments: Disclosures – Contracts Referencing Nature Dependent Electricity which enhances guidance on the application of the ‘own use’ exemption on nature dependent power purchase agreements (PPAs) and hedge accounting requirements for PPAs that are classified as derivative financial instruments. The amendments also introduce new disclosure requirements for certain PPAs. The amendments will be effective for the financial year beginning 1 October 2026. We are currently assessing the impact of adopting these amendments.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

2. Operating income

2. Operating income
	2025	2024
	NZ$m	NZ$m
Net interest income
Interest income by type of financial asset
Financial assets at amortised cost	9,723	11,245
Trading securities	231	249
Investment securities	542	409
Financial assets at FVTPL	52	30
Interest income	10,548	11,933
Interest expense by type of financial liability
Financial liabilities at amortised cost	(5,904)	(7,389)
Financial liabilities designated at FVTPL	(171)	(228)
Interest expense	(6,075)	(7,617)
Net interest income	4,473	4,316
Other operating income
Fee and commission income
Lending fees	21	19
Non-lending fees	713	715
Commissions	28	29
Funds management income	244	246
Fee and commission income	1,006	1,009
Fee and commission expense	(523)	(515)
Net fee and commission income	483	494
Other income
Net foreign exchange earnings and other financial instruments income1	419	(39)
Adjustment to gain on sale of UDC Finance Ltd	-	2
Gain on sale of premises and equipment	-	1
Other	10	9
Other income	429	(27)
Other operatingincome	912	467
Operatingincome	5,385	4,783

Includes fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges entered into to manage interest rate and foreign exchange risk, ineffective portions of cash flow hedges, and fair value movements in financial assets and liabilities at FVTPL.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

2. Operating income (continued)

==> picture [508 x 32] intentionally omitted <==

Net interest income

Interest income and expense

We recognise interest income and expense in net interest income for all financial instruments, including those classified as held for trading, assets measured at FVOCI, and assets and liabilities designated at FVTPL. We use the effective interest rate method to calculate the amortised cost of assets held at amortised cost and to recognise interest income on financial assets measured at amortised cost and FVOCI. The effective interest rate is the rate that discounts the stream of estimated future cash receipts or payments over the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or liability. For assets subject to prepayment, we determine their expected life on the basis of historical behaviour of the particular asset portfolio taking into account contractual obligations and prepayment experience.

We recognise fees and costs, which form an integral part of the financial instrument (for example loan origination fees and costs), using the effective interest rate method. These are presented as part of interest income or expense depending on whether the underlying financial instrument is a financial asset or financial liability.

Other operating income

Fee and commission income

We recognise fee and commission revenue arising from contracts with customers (a) over time when the performance obligation is satisfied across more than one reporting period, or (b) at a point in time when the performance obligation is satisfied immediately or is satisfied within one reporting period.

lending fees exclude fees treated as part of the effective yield calculation of interest income. Lending fees include certain guarantee and commitment fees where the loan or guarantee is not likely to be drawn upon, and other fees charged for providing customers a distinct good or service that are recognised separately from the underlying lending product.
non-lending fees include fees associated with deposit and credit card accounts, interchange fees and fees charged for specific customer transactions such as international transaction fees. Where ANZBGL New Zealand provides multiple goods or services to a customer under the same contract, ANZBGL New Zealand allocates the transaction price of the contract to distinct performance obligations based on the relative stand-alone selling price of each performance obligation. Revenue is recognised as each performance obligation is satisfied.
commissions represent fees from third parties where we act as an agent by arranging a third party (such as an insurance provider) to provide goods and services to a customer. In such cases, we are not primarily responsible for providing the underlying good or service to the customer. If ANZBGL New Zealand collects funds on behalf of a third party when acting as an agent, we only recognise the net commission retained as revenue. When the commission is variable based on factors outside our control (such as a trail commission), revenue is only recognised if it is highly probable that a significant reversal of the variable amount will not be required in future periods.
funds management income represents fees earned from customers for providing financial advice and asset management services. Revenue is recognised either at the point the financial advice is provided or over the period in which the asset management services are delivered.

Net foreign exchange earnings and other financial instruments income

We recognise the following as net foreign exchange earnings and other financial instruments income:

exchange rate differences arising on the settlement of monetary items and translation differences on monetary items translated at rates different to those at which they were initially recognised;
fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges that we use to manage interest rate and foreign exchange risk on funding instruments;
the ineffective portions of fair value hedges and cash flow hedges;
immediately upon sale or repayment of a hedged item, the unamortised fair value adjustments to items designated as fair value hedges and amounts accumulated in equity related to designated cash flow hedges;
fair value movements on financial assets and financial liabilities at FVTPL or held for trading;
amounts released from the FVOCI reserve when a debt instrument classified as FVOCI is sold; and
the gain or loss on derecognition of financial assets or liabilities measured at amortised cost.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

3. Operating expenses

3. Operating expenses
	2025	2024
	NZ$m	NZ$m
Personnel
Salaries and related costs	1,025	1,021
Superannuation costs	30	31
Other	49	38
Personnel	1,104	1,090
Premises
Rent	20	19
Depreciation	71	74
Other	46	40
Premises	137	133
Technology
Depreciation and amortisation	32	35
Subscription licences and outsourced services	214	193
Other	29	29
Technology	275	257
Other
Advertising and public relations	43	39
Professional fees	69	76
Freight, stationery, postage and communication	50	43
Charges from ANZ Group	82	68
Other	54	55
Other	298	281
Operatingexpenses	1,814	1,761

==> picture [505 x 31] intentionally omitted <==

Operating expenses

Operating expenses are recognised as services are provided to ANZBGL New Zealand, over the period in which an asset is consumed, or once a liability is created.

Salaries and related costs - annual leave, long service leave and other employee benefits

Wages and salaries, annual leave and other employee entitlements expected to be paid or settled within twelve months of employees rendering service are measured at their nominal amounts using remuneration rates that ANZBGL New Zealand expects to pay when the liabilities are settled.

We accrue employee entitlements relating to long service leave using an actuarial calculation. It includes assumptions regarding staff departures, leave utilisation and future salary increases. The result is then discounted using market yields at the reporting date. The market yields are determined from a blended rate of government bonds with terms to maturity that closely match the estimated future cash outflows.

If we expect to pay short term cash bonuses, then a liability is recognised when ANZBGL New Zealand has a present legal or constructive obligation to pay this amount (as a result of past service provided by the employee) and the obligation can be reliably measured.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

4. Income tax

Income tax expense

Reconciliation of the prima facie income tax expense on pre-tax profit with the income tax expense recognised in profit or loss:

	2025	2024
	NZ$m	NZ$m
Profit before income tax	3,596	2,978
Prima facie income tax expense at 28%	1,007	834
Tax effect of permanent differences:
Tax provisions no longer required	(3)	-
Non-assessable income and non-deductible expenditure	12	12
Income tax overprovided inpreviousyears	(1)	-
Income tax expense	1,015	846
Current tax expense	1,015	911
Adjustments recognised in the current year in relation to the current tax of prior years	(13)	(1)
Deferred tax expense/(income) relatingto the origination and reversal of temporarydifferences	13	(64)
Income tax expense	1,015	846
Effective tax rate	28.2%	28.4%
Deferred tax assets and liabilities
	2025	2024
	NZ$m	NZ$m
Deferred tax assets balances comprise temporary differences attributable to:
Amounts recognised in the Income Statement:
Collectively assessed allowances for expected credit losses	206	222
Individually assessed allowances for expected credit losses	19	19
Provision for employee entitlements	56	55
Other provisions	21	21
Software	132	130
Lease liabilities	62	67
Other	11	14
Total	507	528
Total deferred tax assets (before set-off)	507	528
Set-off of deferred tax balancespursuant to set-offprovisions	(115)	(109)
Net deferred tax assets	392	419
	2025	2024
	NZ$m	NZ$m
Deferred tax liabilities balances comprise temporary differences attributable to:
Amounts recognised in the Income Statement:
Fixed assets	-	6
Right of use assets	48	54
Other	12	29
Total	60	89
Amounts recognised directly in Other comprehensive income:
Cash flow hedge reserve	55	20
Total	55	20
Total deferred tax liabilities (before set-off)	115	109
Set-off of deferred tax balancespursuant to set-offprovisions	(115)	(109)
Net deferred tax liabilities	-	-

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

4. Income tax (continued)

==> picture [505 x 31] intentionally omitted <==

Income tax expense

Income tax expense comprises both current and deferred taxes and is based on the accounting profit adjusted for differences in the accounting and tax treatments of income and expenses (that is, taxable income). We recognise tax expense in profit or loss except when the tax relates to items recognised directly in equity and other comprehensive income, in which case we recognise the tax directly in equity or other comprehensive income respectively.

Current tax expense

Current tax expense is the tax we expect to pay on taxable income for the year, based on tax rates (and tax laws) which are enacted at the reporting date. We recognise current tax as a liability (or asset) to the extent that it is unpaid (or refundable).

Deferred tax assets and liabilities

We account for deferred tax using the balance sheet method. Deferred tax arises because the accounting income is not always the same as the taxable income. This creates temporary differences, which usually reverse over time. Until they reverse, we recognise a deferred tax asset, or liability, on the balance sheet. We measure deferred taxes at the tax rates that we expect will apply to the period(s) when the asset is realised, or the liability settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

We offset current and deferred tax assets and liabilities only to the extent that:

they relate to income taxes imposed by the same taxation authority;
there is a legal right and intention to settle on a net basis; and
it is allowed under the tax law of the relevant jurisdiction.

==> picture [502 x 31] intentionally omitted <==

Judgement is required in determining provisions held in respect of uncertain tax positions. ANZBGL New Zealand estimates its tax liabilities based on its understanding of the relevant law and seeks independent advice where appropriate.

5. Dividends

Ordinary share dividends

Dividends determined by the NZ Branch’s Board are recognised with a corresponding reduction of retained earnings on the dividend payment date.

	Total
Amount	dividend
Dividends per share	NZ$m
Financial Year 2024 Dividend paid in March 2024 286.9 cents Dividend paid in August 2024 925.5 cents Dividendpaid in September 2024 412.5 cents
	1,085
	3,500
	1,560
Dividendspaid duringtheyear ended 30 September 2024	6,145
Financial Year 2025 Dividend paid in March 2025 166.6 cents Dividendpaid in September 2025 234.0 cents
	630
	885
Dividendspaid duringtheyear ended 30 September 2025	1,515

Imputation credit account

Imputation credit account
			ANZBGL New Zealand		Bank1
			2025	2024	2025	2024
			NZ$m	NZ$m	NZ$m	NZ$m
Imputation credits available as at	30	September	6,217	5,911	1,168	830

Imputation credits available to the Bank are shown separately as this is relevant for holders of perpetual preference shares (refer to Note 20 Shareholders’ equity) issued by the Bank.

The imputation credit balance for ANZBGL New Zealand includes the imputation credit balance in relation to the Trans-Tasman imputation group, the Bank consolidated imputation group and other companies in ANZBGL New Zealand that are not in either of these imputation groups. The imputation credit balance available to ANZBGL New Zealand includes imputation credits that will arise from the payment of the amount of provision for income tax as at the reporting date.

The imputation credit balance for the Bank reflects the imputation credit balance of the Bank consolidated imputation group. The imputation credit balance available to the Bank includes imputation credits that will arise from the payment of the amount of provision for income tax as at the reporting date.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

6. 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 (CEO).

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 and medium enterprises, and the agricultural business segment.

Institutional

The Institutional division services government and government-related entities, 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

Operating segments
Year ended 30 September	Personal Business & Agri Institutional Other Total
	2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Net interest income	2,590 2,383 959 1,013 763 753 161 167 4,473 4,316
Net fee and commission income - Lending fees - Non-lending fees - Commissions - Funds management income - Fee and commission expense	9 8 - - 12 11 - - 21 19 454 449 212 217 49 51 (2) (2) 713 715 27 28 - - 1 1 - - 28 29 244 246 - - - - - - 244 246 (355) (345) (168) (170) - - - - (523) (515)
Net fee and commission income Other income	379 386 44 47 62 63 (2) (2) 483 494 2 - (1) - 204 242 224 (269) 429 (27)
Other operatingincome	381 386 43 47 266 305 222 (271) 912 467
Operating income Operatingexpenses	2,971 2,769 1,002 1,060 1,029 1,058 383 (104) 5,385 4,783 (1,234) (1,213) (299) (276) (255) (248) (26) (24) (1,814) (1,761)
Profit/(loss) before credit impairment and income tax Credit impairment release/(charge)	1,737 1,556 703 784 774 810 357 (128) 3,571 3,022 (10) 17 30 (47) 5 (14) - - 25 (44)
Profit/(loss) before income tax Income tax expense Non-controllinginterests	1,727 1,573 733 737 779 796 357 (128) 3,596 2,978 (484) (443) (205) (207) (218) (223) (108) 27 (1,015) (846) - - - - - - (43) (35) (43) (35)
Profit/(loss) after income tax1	1,243 1,130 528 530 561 573 206 (136) 2,538 2,097
Financial position Goodwill Net loans and advances Customer deposits	1,042 1,042 695 695 1,269 1,269 - - 3,006 3,006 115,598 110,447 24,324 23,952 19,042 17,564 - - 158,964 151,963 96,544 91,814 19,068 17,996 27,930 26,353 - - 143,542 136,163

Attributable to the shareholders of the Ultimate Parent Bank.

Other segment

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

Other segment The Other segment profit/(loss) after income tax comprises:
	2025	2024
For the year ended 30 September	NZ$m	NZ$m
Personal and Business & Agri central functions	(2)	6
Group Centre	45	53
Economic hedges	163	(195)
Total	206	(136)

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

Financial assets

Outlined below is a description of how we classify and measure financial assets as they apply to the note disclosures that follow.

==> picture [529 x 44] intentionally omitted <==

Financial assets - general

There are three measurement classifications for financial assets under NZ IFRS 9 Financial Instruments (NZ IFRS 9): amortised cost, FVTPL and FVOCI. Financial assets are classified into these measurement classifications on the basis of two criteria:

the business model within which the financial asset is managed; and
the contractual cash flow characteristics of the financial asset (specifically whether the contractual cash flows represent solely payments of principal and interest).

The resultant financial asset classifications are as follows:

Amortised cost: Financial assets with contractual cash flows that comprise solely payments of principal and interest and which are held in a business model whose objective is to collect their cash flows;
FVOCI: Financial assets with contractual cash flows that comprise solely payments of principal and interest and which are held in a business model whose objective is to collect their cash flows or to sell the assets; and
FVTPL: Any other financial assets not falling into the categories above are measured at FVTPL.

Fair value option for financial assets

A financial asset may be irrevocably designated on initial recognition:

at FVTPL when the designation eliminates or significantly reduces an accounting mismatch that would otherwise arise; or
at FVOCI for investments in equity securities, where that instrument is neither held for trading nor contingent consideration recognised by an acquirer in a business combination.

7. Cash and cash equivalents

Cash and cash equivalents comprise coins, notes, money at call, reverse repurchase agreements of less than 90 days, balances held with central banks and other banks, and other cash equivalents that are readily convertible to known amounts of cash with insignificant risk of changes in value.

	2025	2024
	NZ$m	NZ$m
Coins, notes and cash at bank	130	149
Reverse repurchase agreements	2,026	1,762
Balances with central banks	6,949	9,451
Balances with other banks and other cash equivalents	281	272
Cash and cash equivalents	9,386	11,634

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

8. Trading securities

8. Trading securities
	2025	2024
	NZ$m	NZ$m
Government securities	5,520	4,869
Corporate and financial institution securities	828	707
Tradingsecurities	6,348	5,576

==> picture [505 x 31] intentionally omitted <==

Trading securities are financial instruments we either:

Acquire principally for the purpose of selling in the short-term; or
Hold as part of a portfolio we manage for short-term profit making.

We recognise purchases and sales of trading securities on trade date:

Initially, we measure them at fair value; and
Subsequently, we measure them in the Balance Sheet at their fair value with any change in fair value recognised in profit or loss.

Assets disclosed as Trading securities are subject to the general classification and measurement policy for Financial Assets outlined on page 16.

==> picture [502 x 31] intentionally omitted <==

Judgement is required when applying the valuation techniques used to determine the fair value of trading securities not valued using quoted market prices. Refer to Note 16 Fair value of financial assets and financial liabilities for further details.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

9. Derivative financial instruments

9. Derivative financial instruments
	Assets	Liabilities	Assets	Liabilities
	2025	2025	2024	2024
Fair value	NZ$m	NZ$m	NZ$m	NZ$m
Derivative financial instruments - held for trading1	11,432	(10,178)	10,143	(11,123)
Derivative financial instruments - designated in hedgingrelationships1	14	(20)	30	(27)
Derivative financial instruments	11,446	(10,198)	10,173	(11,150)

Comparative amounts have been adjusted to be consistent with the current period’s presentation.

Features

Derivative financial instruments are contracts:

whose value is derived from an underlying price index (or other variable) defined in the contract – sometimes the value is derived from more than one variable;
that require little or no initial net investment; and
that are settled at a future date.

Movements in the price of the underlying variables, which cause the value of the contract to fluctuate, are reflected in the fair value of the derivative.

Purpose

ANZBGL New Zealand’s derivative financial instruments have been categorised as follows:

Trading	Derivatives held in order to:	Derivatives held in order to:
	•	meet customer needs for managing their own risks.
	•	manage risks in ANZBGL New Zealand that are not in a designated hedge accounting relationship (some elements
		of balance sheet management).
	•	undertake market making and positioning activities to generate profits from short-term fluctuations in prices or
		margins.
Designated in hedging	Derivatives designated into hedge accounting relationships in order to minimise profit or loss volatility by matching
relationships	movements in underlying positions relating to:
	•	hedges of ANZBGL New Zealand’s exposures to interest rate risk and currency risk.
	•	hedges of other exposures relating to non-trading positions.

Types

ANZBGL New Zealand offers or uses four different types of derivative financial instruments:

Forwards	A contract documenting the rate of interest, or the currency exchange rate, to be paid or received on a notional
	principal amount at a future date.
Futures	An exchange traded contract in which the parties agree to buy or sell an asset in the future for a price agreed on the
	transaction date, with a net settlement in cash paid on the future date without physical delivery of the asset.
Swaps	A contract in which two parties exchange one series of cash flows for another.
Options	A contract in which the buyer of the contract has the right - but not the obligation - to buy (known as a ‘call option’) or
	to sell (known as a ‘put option’) an asset or instrument at a set price on a future date. The seller has the corresponding
	obligation to fulfil the transaction to sell or buy the asset or instrument if the buyer exercises the option.

Risks managed

ANZBGL New Zealand offers and uses the instruments described above to manage fluctuations in the following:

Foreign exchange	Currencies at current or determined rates of exchange.
Interest rate	Fixed or variable interest rates applying to money lent, deposited or borrowed.
Commodity	Soft commodities (that is, agricultural products such as wheat, coffee, cocoa, and sugar) and hard commodities (that is,
	mined products such as gold, oil and gas).
Credit	Risk of default by customers or third parties.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

9. Derivative financial instruments (continued)

ANZBGL New Zealand uses central clearing counterparties and exchanges to settle derivative transactions. Different arrangements for posting of collateral exist with these exchanges:

some transactions are subject to clearing arrangements which result in separate recognition of collateral assets and liabilities, with the carrying values of the associated derivative assets and liabilities held at their fair value.
other transactions are legally settled by the payment or receipt of collateral which reduces the carrying values of the related derivative instruments by the amount paid or received.

Derivative financial instruments – held for trading

The majority of ANZBGL New Zealand’s derivative financial instruments are held for trading. The fair value of derivative financial instruments held for trading are:

are:
	Assets	Liabilities	Assets	Liabilities
	2025	2025	2024	2024
Fair value	NZ$m	NZ$m	NZ$m	NZ$m
Interest rate contracts
Forward rate agreements	5	(4)	-	-
Futures contracts	2	(43)	3	(70)
Swap agreements1	5,160	(5,032)	3,912	(3,938)
Options	2	(1)	1	(1)
Total	5,169	(5,080)	3,916	(4,009)
Foreign exchange contracts
Spot and forward contracts	1,770	(1,465)	2,355	(2,954)
Swap agreements	4,431	(3,570)	3,793	(4,080)
Options	15	(14)	33	(33)
Total	6,216	(5,049)	6,181	(7,067)
Commoditycontracts and credit default swaps	47	(49)	46	(47)
Derivative financial instruments - held for trading2	11,432	(10,178)	10,143	(11,123)

Comparative amounts have been adjusted to be consistent with the current period’s presentation.

Includes derivatives held for balance sheet management which are not designated into accounting hedge relationships.

Derivative financial instruments – designated in hedging relationships

Under the accounting policy choice provided by NZ IFRS 9, ANZBGL New Zealand has continued to apply the hedge accounting requirements of NZ IAS 39 Financial Instruments: Recognition and Measurement (NZ IAS 39).

ANZBGL New Zealand uses two types of hedge accounting relationships:

	Fair value hedge	Cash flow hedge
Objective of this hedging	To hedge our exposure to changes to the fair value of a	To hedge our exposure to variability in cash flows of a
arrangement	recognised asset or liability or unrecognised firm	recognised asset or liability, a firm commitment or a highly
	commitment caused by interest rate or foreign currency	probable forecast transaction caused by interest rate,
	movements.	foreign currency and other price movements.
Recognition of effective	The following are recognised in profit or loss at the same	We recognise the effective portion of changes in the fair
hedge portion	time:	value of derivatives designated as a cash flow hedge in
	• all changes in the fair value of the underlying item	the cash flow hedge reserve.
	relating to the hedged risk; and
	• the change in the fair value of the derivatives.
Recognition of ineffective	Recognised immediately in Other operating income.
hedge portion
If a hedging instrument	When we recognise the hedged item in profit or loss, we	Only when we recognise the hedged item in profit or loss
expires, or is sold,	recognise the related unamortised fair value adjustment in	is the amount previously deferred in the cash flow hedge
terminated, or exercised;	profit or loss. This may occur over time if the hedged item	reserve transferred to profit or loss.
or no longer qualifies for	is amortised to profit or loss as part of the effective yield
hedge accounting	over the period to maturity.
Hedged item sold or repaid	We recognise the unamortised fair value adjustment	Amounts accumulated in equity are transferred
	immediately in profit or loss.	immediately to profit or loss.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

9. Derivative financial instruments (continued)

The fair value of derivative financial instruments designated in hedging relationships are:

		2025			2024
	Nominal			Nominal
	amount	Assets	Liabilities	amount	Assets	Liabilities
	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
Fair value hedges
Interest rate swap agreements1	32,100	2	(13)	29,126	18	(22)
Cash flow hedges
Interest rate swapagreements1	27,754	12	(7)	30,383	12	(5)
Derivative financial instruments - designated in hedgingrelationships	59,854	14	(20)	59,509	30	(27)

Comparative amounts have been adjusted to be consistent with the current period’s presentation.

The maturity profile of the nominal amounts of our hedging instruments held is:

		Less than 3	3 to 12	1 to 5	After 5
	Average	months	months	years	years	Total
Nominal amount	rate	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
As at 30 September 2025
Fair value hedges
Interest rate	2.44%	-	3,122	19,500	9,478	32,100
Cash flow hedges
Interest rate	3.97%	6,128	8,044	12,849	733	27,754
As at 30 September 2024
Fair value hedges
Interest rate	2.20%	373	1,880	17,863	9,010	29,126
Cash flow hedges
Interest rate	4.62%	6,025	6,495	15,727	2,136	30,383

The impacts of ineffectiveness from our designated hedge relationships by type of hedge relationship and type of risk being hedged are:

	Ineffectiveness Amount reclassified from the cash flow hedge reserve to profit or loss4 Change in value of hedging instrument2 Change in value of hedged item Hedge ineffectiveness recognised in profit or loss3 2025 2024 2025 2024 2025 2024 2025 2024 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Fair value hedges1 Interest rate Cash flow hedges1 Interest rate	(1,275) (9) 1,277 12 2 3 - - . 126 149 (126) (150) - - (3) (1)

All hedging instruments are classified as derivative financial instruments.

Changes in value of hedging instruments is before any adjustments for Settle to Market clearing arrangements.

Recognised in Other operating income.

Recognised in Net interest income and Other operating income.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

9. Derivative financial instruments (continued)

The hedged items in relation to ANZBGL New Zealand’s fair value hedges are:

The hedged items in relation to ANZBGL New Zealand’s fair value hedges are:
Balance Sheet presentation Hedged risk	Carrying amount	Accumulated fair value hedge adjustments on the hedged item
	Assets Liabilities NZ$m NZ$m	Assets Liabilities NZ$m NZ$m
As at 30 September 2025 Fixed rate debt issuance Debt issuances Interest rate Fixed rate investment securities at FVOCI1 Investment securities Interest rate
	- (16,599)	- 340
	15,576 -	420 -
Total	15,576 (16,599)	420 340

As at 30 September 2024 Fixed rate debt issuance Debt issuances Interest rate Fixed rate investment securities at FVOCI1 Investment securities Interest rate
	- (16,352) 12,443 -	- 447 39 -
Total	12,443 (16,352)	39 447
1. The carrying amount of debt instruments at FVOCI does not include the fair value hedge adjustment. The fair value hedge The hedged items in relation to ANZBGL New Zealand’s cash flow hedges are:	adjustment is included in other comprehensive income. Continuing Discontinued hedges hedges
	2025 2024 2025 2024 NZ$m NZ$m NZ$m NZ$m
Hedged risk
Floating rate loans and advances Interest rate Floatingrate customer deposits Interest rate	269 186 17 - (91) (114) - -

All cash flow hedges relate to hedges of interest rate risk and the movements in the cash flow hedge reserve are shown in the Statement of Changes in Equity on page 7.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

9. Derivative financial instruments (continued)

==> picture [541 x 422] intentionally omitted <==

----- Start of picture text -----

Recognition Initially and at each reporting date, we recognise all derivatives at fair value. If the fair value of a derivative is
positive, then we carry it as an asset, but if its value is negative, then we carry it as a liability.
Valuation adjustments are integral in determining the fair value of derivatives. This includes:
• a credit valuation adjustment to reflect the counterparty risk and/or event of default; and
• a funding valuation adjustment to account for funding costs and benefits in the derivatives portfolio.
Derecognition of We remove derivative assets from our Balance Sheet when the contracts expire or we have transferred
assets and liabilities substantially all the risks and rewards of ownership. We remove derivative liabilities from our Balance Sheet
when ANZBGL New Zealand’s contractual obligations are discharged, cancelled or expired.
With respect to derivatives cleared through a central clearing counterparty or exchange, derivative assets or
liabilities may be derecognised in accordance with the principle above when collateral is settled, depending
on the legal arrangements in place for each instrument.
Impact on the The recognition of gains or losses on derivative financial instruments depends on whether the derivative is
Income Statement held for trading or is designated in a hedge accounting relationship. For derivative financial instruments held
for trading, gains or losses from changes in the fair value are recognised in profit or loss.
For an instrument designated in a hedge accounting relationship, the recognition of gains or losses depends
on the nature of the item being hedged. Refer to the table on page 19 for details of the recognition
approach applied for each type of hedge accounting relationship.
Sources of hedge accounting ineffectiveness may arise from differences in the interest rate reference rate,
margins, or rate set differences and differences in discounting between the hedged items and the hedging
instruments.
Hedge effectiveness To qualify for hedge accounting under NZ IAS 39 , a hedge relationship is expected to be highly effective. A
hedge relationship is highly effective only if the following conditions are met:
• the hedge is expected to be highly effective in achieving offsetting changes in fair value or cash flows
attributable to the hedged risk during the period for which the hedge is designated (prospective
effectiveness); and
• the actual results of the hedge are within the range of 80-125% (retrospective effectiveness).
ANZBGL New Zealand monitors hedge effectiveness on a regular basis but at a minimum at each reporting
date.
----- End of picture text -----

==> picture [506 x 31] intentionally omitted <==

Judgement is required when we select the valuation techniques used to determine the fair value of derivatives, particularly the selection of valuation inputs that are not readily observable, and the application of valuation adjustments to certain derivatives. Refer to Note 16 Fair value of financial assets and financial liabilities for further details.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

10. Investment securities

10. Investment securities
					2025	2024
					NZ$m	NZ$m
Investment securities measured at FVOCI
Debt securities					16,452	13,290
Equitysecurities					6	5
Total					16,458	13,295
The maturity profile of investment securities is as follows:
	Less than 3	3 to 12		After	No
	months	months	1 to 5 years	5 years	maturity	Total
As at 30 September 2025	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
Government securities	176	271	11,168	4,460	-	16,075
Corporate and financial institution securities	1	-	363	13	-	377
Equitysecurities	-	-	-	-	6	6
Total	177	271	11,531	4,473	6	16,458
As at 30 September 2024
Government securities	126	829	7,326	4,543	-	12,824
Corporate and financial institution securities	1	50	415	-	-	466
Equitysecurities	-	-	-	-	5	5
Total	127	879	7,741	4,543	5	13,295

==> picture [505 x 31] intentionally omitted <==

Investment securities are those financial assets in security form (that is, transferable debt or equity instruments) that are not held for trading purposes. By way of exception, bills of exchange (a form of security/transferable instrument) which are used to facilitate ANZBGL New Zealand’s customer lending activities are classified as Loans and advances (rather than Investment securities) to better reflect the substance of the arrangement.

Equity investments not held for trading purposes may be designated at FVOCI on an instrument-by-instrument basis. If this election is made, gains or losses are not reclassified from Other comprehensive income to profit or loss on disposal of the investment. However, gains or losses may be reclassified within equity.

Assets disclosed as Investment securities are subject to the general classification and measurement policy for financial assets outlined on page 16. Additionally, expected credit losses associated with Investment securities - debt securities at FVOCI are recognised and measured in accordance with the accounting policy outlined in Note 12 Allowance for expected credit losses, and the allowance for expected credit loss is recognised in the FVOCI reserve in equity with a corresponding charge to profit or loss.

==> picture [505 x 31] intentionally omitted <==

Judgement is required when we select valuation techniques used to determine the fair value of assets not valued using quoted market prices, particularly the selection of valuation inputs that are not readily observable. Refer to Note 16 Fair value of financial assets and financial liabilities for further details.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

11. Net loans and advances

The following table provides details of Net loans and advances for ANZBGL New Zealand:

The following table provides details of Net loans and advances for ANZBGL New Zealand:
	2025	2024
	NZ$m	NZ$m
Overdrafts	1,149	1,091
Credit cards	1,230	1,243
Term loans - housing	116,116	111,104
Term loans - non-housing1	40,524	38,755
Gross subtotal	159,019	152,193
Unearned income2	(26)	(21)
Capitalised brokerage and other origination costs2	639	516
Gross loans and advances	159,632	152,688
Allowance for expected credit losses (refer to Note 12)	(668)	(725)
Net loans and advances	158,964	151,963
Residual contractual maturity:
Within one year	19,383	25,276
More than oneyear	139,581	126,687
Net loans and advances	158,964	151,963
Carried on Balance Sheet at:
Amortised cost	158,003	151,963
Fair value throughprofit or loss	961	-
Net loans and advances	158,964	151,963

Includes reverse repurchase agreements (with 90 days or more to maturity) designated at FVTPL of NZ$961 million (2024: nil).

Amortised over the expected life of the loan.

Loans and advances are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are facilities ANZBGL New Zealand provides directly to customers or through third party channels.

Loans and advances are initially recognised at fair value plus transaction costs directly attributable to the issue of the loan or advance, which are primarily brokerage and other origination costs which we amortise over the estimated life of the loan. Subsequently, we then measure loans and advances at amortised cost using the effective interest rate method, net of any allowance for expected credit losses, or at fair value when they are specifically designated on initial recognition as FVTPL, are classified as held for sale or when held for trading. Refer to Note 16 Fair value of financial assets and financial liabilities for further details.

ANZBGL New Zealand enters into transactions in which it transfers financial assets that are recognised on its Balance Sheet. When ANZBGL New Zealand retains substantially all of the risks and rewards of the transferred assets, the transferred assets remain on ANZBGL New Zealand’s Balance Sheet, however if substantially all the risks and rewards are transferred, ANZBGL New Zealand derecognises the asset. If the risks and rewards are partially retained and control over the asset is lost, ANZBGL New Zealand derecognises the asset. If control over the asset is not lost, ANZBGL New Zealand continues to recognise the asset to the extent of its continuing involvement.

We separately recognise the rights and obligations retained, or created, in the transfer of assets as appropriate.

Assets disclosed as Net loans and advances are subject to the general classification and measurement policy for financial assets outlined on page 16. Additionally, expected credit losses associated with loans and advances at amortised cost are recognised and measured in accordance with the accounting policy outlined in Note 12 Allowance for expected credit losses.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

12. Allowance for expected credit losses

12. Allowance for expected credit losses
		2025			2024
	Collectively	Individually		Collectively	Individually
	assessed	assessed	Total	assessed	assessed	Total
	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
Net loans and advances at amortised cost	604	64	668	661	64	725
Off-balance sheet commitments	130	4	134	133	3	136
Total	734	68	802	794	67	861

The following tables present the movement in the allowance for expected credit losses (ECL) for the year.

Net loans and advances - at amortised cost

Allowance for ECL is included in Net loans and advances.

Net loans and advances - at amortised cost Allowance for ECL is included in Net loans and advances.
	Stage 3


Stage 1 Stage 2 NZ$m NZ$m	Collectively assessed Individually assessed NZ$m NZ$m	Total NZ$m
As at 1 October 2023 193 398	79 60	730
Transfer between stages 36 (40)	(1) 5	-
New and increased provisions (net of releases) (42) 12	26 99	95
Write-backs - -	- (49)	(49)
Bad debts written-off (excluding recoveries) - -	- (41)	(41)
Discount unwind - -	- (10)	(10)
As at 30 September 2024 187 370	104 64	725
Transfer between stages 58 (58)	(2) 2	-
New and increased provisions (net of releases) (57) 8	(6) 94	39
Write-backs - -	- (53)	(53)
Bad debts written-off (excluding recoveries) - -	- (47)	(47)
Discount unwind - -	- 4	4
As at 30 September 2025 188 320	96 64	668
Off-balance sheet commitments - undrawn and contingent facilities

Allowance for ECL is included in Other provisions.

As at 1 October 2023 80 39 Transfer between stages 4 (4) New and increased provisions (net of releases) (10) 21	3 5 - - - (2)	127 - 9
As at 30 September 2024 74 56	3 3	136
Transfer between stages 5 (5)	- -	-
New and increased provisions (net of releases) (9) 6	- 1	(2)
As at 30 September 2025 70 57	3 4	134

The collectively assessed allowance for ECL decreased by NZ$60 million attributable to: releases of NZ$53 million primarily driven by improvements in the forward-looking economic scenarios and portfolio credit risk profile, releases of NZ$21 million in management temporary adjustments, partially offset by NZ$14 million increase due to enhancements in model methodology.

Credit impairment charge – Income Statement

Credit impairment charge/(release) analysis

Credit impairment charge – Income Statement Credit impairment charge/(release) analysis
	2025	2024
	NZ$m	NZ$m
New and increased provisions (net of releases)1
- Collectively assessed	(60)	2
- Individually assessed	97	102
Write-backs	(53)	(49)
Recoveries of amountspreviouslywritten-off	(9)	(11)
Total credit impairment charge/(release)	(25)	44

Includes the impact of transfers between collectively assessed and individually assessed.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

12. Allowance for expected credit losses (continued)

==> picture [505 x 31] intentionally omitted <==

Expected credit loss model

The measurement of expected credit losses reflects an unbiased, probability weighted prediction which evaluates a range of scenarios and takes into account the time value of money, past events, current conditions and forecasts of future economic conditions.

Expected credit losses are either measured over 12 months or the expected lifetime of the financial asset, depending on credit deterioration since origination, according to the following three-stage approach:

Stage 1: At the origination of a financial asset, and where there has not been a Significant Increase in Credit Risk (SICR) since origination, an allowance for ECL is recognised reflecting the expected credit losses resulting from default events that are possible within the next 12 months from the reporting date. For instruments with a remaining maturity of less than 12 months, expected credit losses are estimated based on default events that are possible over the remaining time to maturity.
Stage 2: Where there has been a SICR since origination, an allowance for ECL is recognised reflecting expected credit losses resulting from all possible default events over the expected life of a financial instrument. If credit risk were to improve in a subsequent period such that the increase in credit risk since origination is no longer considered significant, the exposure returns to a Stage 1 classification with ECL measured accordingly.
Stage 3: Where there is objective evidence of impairment, an allowance equivalent to lifetime ECL is recognised.
Expected credit losses are estimated on a collective basis for exposures in Stage 1 and Stage 2, and on either a collective or individual basis when transferred to Stage 3.

Measurement of expected credit loss

ECL is calculated as the product of the following credit risk factors at a facility level, discounted to incorporate the time value of money:

Probability of default (PD) - the estimate of the likelihood that a borrower will default over a given period;
Exposure at default (EAD) - the expected balance sheet exposure at default taking into account repayments of principal and interest, expected additional drawdowns and accrued interest; and
Loss given default (LGD) - the expected loss in the event of the borrower defaulting, expressed as a percentage of the facility's EAD, taking into account direct and indirect recovery costs.

These credit risk factors are adjusted for current and forward-looking information through the use of macroeconomic variables.

Expected life

When estimating ECL for exposures in Stage 2 and 3, ANZBGL New Zealand considers the expected lifetime over which it is exposed to credit risk.

For non-retail portfolios, ANZBGL New Zealand uses the maximum contractual period as the expected lifetime for non-revolving credit facilities. For non-retail revolving credit facilities, such as corporate lines of credit, the expected life reflects ANZBGL New Zealand’s contractual right to withdraw a facility as part of a contractually agreed annual review, after taking into account the applicable notice period.

For retail portfolios, the expected lifetime is determined using a behavioural term, taking into account expected prepayment behaviour and events that give rise to substantial modifications.

Definition of default, credit impaired and write-offs

The definition of default used in measuring ECL is aligned to the definition used for internal credit risk management purposes across all portfolios. This definition is also in line with the regulatory definition of default. Default occurs when there are indicators that a debtor is unlikely to fully satisfy contractual credit obligations to ANZBGL New Zealand, or the exposure is 90 days past due.

Financial assets, including those that are well secured, are considered credit impaired for financial reporting purposes when they default.

When there is no realistic probability of recovery, loans are written off against the related impairment allowance on completion of ANZBGL New Zealand’s internal processes and when all reasonably expected recoveries have been collected. In subsequent periods, any recoveries of amounts previously written-off are recorded as a release to the credit impairment charge in the Income Statement.

Modified financial assets

If the contractual terms of a financial asset are modified or an existing financial asset is replaced with a new one for either credit or commercial reasons, an assessment is made to determine if the changes to the terms of the existing financial asset are considered substantial. This assessment considers both changes in cash flows arising from the modified terms as well as changes in the overall instrument risk profile; for example, changes in the principal (credit limit), term, or type of underlying collateral. Where a modification is considered non-substantial, the existing financial asset is not derecognised and its date of origination continues to be used to determine SICR. Where a modification is considered substantial, the existing financial asset is derecognised and a new financial asset is recognised at its fair value on the modification date, which also becomes the date of origination used to determine SICR for this new asset.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

12. Allowance for expected credit losses (continued)

==> picture [504 x 31] intentionally omitted <==

Significant increase in credit risk

Stage 2 assets are those that have experienced a SICR since origination. In determining what constitutes a SICR, ANZBGL New Zealand considers both qualitative and quantitative information:

i. Internal credit rating grade

For the majority of portfolios, the primary indicator of a SICR is a significant deterioration in the internal credit rating grade of a facility since origination and is measured by the application of thresholds.

For non-retail portfolios, a SICR is determined by comparing the Customer Credit Rating (CCR) applicable to a facility at reporting date to the CCR at origination of that facility. A CCR is assigned to each borrower which reflects the PD of the borrower and incorporates both borrower and non-borrower specific information, including forward-looking information. CCRs are subject to review at least annually or more frequently when an event occurs which could affect the credit risk of the customer.

For retail portfolios, a SICR is determined, depending on the type of facility, by either comparing the scenario weighted lifetime PD at the reporting date to that at origination, or by reference to customer behavioural score thresholds. The scenario weighted lifetime probability of default may increase significantly if:

there has been a deterioration in the economic outlook, or an increase in economic uncertainty; or
there has been a deterioration in the customer’s overall credit position, or ability to manage their credit obligations.
ii. Backstop criteria

ANZBGL New Zealand uses 30 days past due arrears as a backstop criterion for both non-retail and retail portfolios. For retail portfolios only, facilities are required to demonstrate three to six months of good payment behaviour prior to being allocated back to Stage 1.

Forward-looking information

Forward-looking information is incorporated into both our assessment of whether a financial asset has experienced a SICR since origination and in our estimate of ECL. In applying forward-looking information for estimating ECL, ANZBGL New Zealand considers four probabilityweighted forecast economic scenarios as follows:

i. Base case scenario

The base case scenario is ANZBGL New Zealand’s view of future macroeconomic conditions. It reflects the same basis of assumptions used by management for strategic planning and budgeting, and also informs the Banking Group’s Internal Capital Adequacy Assessment Process which is the process ANZBGL New Zealand applies in strategic and capital planning over a 3-year time horizon;

ii. Upside scenario

The upside scenario is fixed by reference to average economic cycle conditions (not economic conditions prevailing at balance date) and is based on a combination of more optimistic economic events and uncertainty over long term horizons; and

iii. Downside and iv. Severe downside scenarios

The downside and severe scenarios assume an economic downturn, both domestically and globally. Forecast macroeconomic variables for such scenarios are developed internally, reflecting plausible scenarios unfolding over a 5-year period given current economic conditions. These assumptions have been revised in 2025, reflecting a sharp rise in inflation, declining asset prices, and increases to unemployment. The impacts to underlying macroeconomic variables are deeper in the case of the severe scenario.

The four scenarios are described in terms of macroeconomic variables used in the PD, LGD and EAD models (collectively the ECL models) depending on the lending portfolio and country of the borrower. Examples of the macroeconomic variables include unemployment rates, Gross Domestic Product (GDP) growth rates, residential property price indices, commercial property price indices and consumer price indices.

Probability weighting of each scenario is determined by management considering the risks and uncertainties surrounding the base case economic scenario, as well as specific portfolio considerations where required.

Where applicable, temporary adjustments may be made to account for situations where known or expected risks have not been adequately addressed in the modelling process.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

12. Allowance for expected credit losses (continued)

==> picture [505 x 31] intentionally omitted <==

Collectively assessed allowance for expected credit losses In estimating collectively assessed ECL, ANZBGL New Zealand makes judgements and assumptions in relation to:

==> picture [505 x 587] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|•|the selection of an estimation technique or modelling methodology; and|
|•|the selection of inputs for those models, and the interdependencies between those inputs.|
|The following table summarises the key judgements and assumptions in relation to the model inputs and the interdependencies between|
|those inputs, and highlights significant changes during the current period.|
|The judgements and associated assumptions have been made within the context of the uncertainty as to how various factors might impact|
|the global economy and reflect historical experience and other factors that are considered to be relevant, including expectations of future|
|events that are believed to be reasonable under the circumstances. ANZBGL New Zealand’s ECL estimates are inherently uncertain and, as a|
|result, actual results may differ from these estimates.|
|Judgement/Assumption|Description|Considerations for the year ended 30 September 2025|
|Determining when a SICR|In the measurement of ECL, judgement is involved|The determination of SICR was consistent with prior|
|has occurred or reversed|in determining whether there has been a SICR|period.|
|since initial recognition of a loan, which would|
|result in it moving from Stage 1 to Stage 2. This is|
|a key area of judgement since transition from|
|Stage 1 to Stage 2 increases the ECL from an|
|allowance based on the PD in the next 12|
|months, to an allowance for lifetime ECL.|
|Subsequent decreases in credit risk resulting in|
|transition from Stage 2 to Stage 1 may similarly|
|result in significant changes in the ECL allowance.|
|The setting of precise SICR trigger points requires|
|judgement which may have a material impact|
|upon the size of the ECL allowance. ANZBGL New|
|Zealand monitors the effectiveness of SICR|
|criteria on an ongoing basis.|
|Measuring both 12-|The PD, LGD and EAD factors used in determining|The PD, LGD and EAD models are subject to ANZBGL New|
|month and lifetime|ECL are point-in-time measures reflecting the|Zealand’s model risk policy that stipulates periodic model|
|expected credit losses|relevant forward-looking information determined|monitoring and re-validation, and defines approval|
|by management. Judgement is involved in|procedures and authorities according to model materiality.|
|determining which forward-looking information is|
|There were no material changes to the policy.|
|relevant for particular lending portfolios and for|
|determining each portfolio’s point-in-time|
|sensitivity.|
|In addition, judgement is required where|
|behavioural characteristics are applied in|
|estimating the lifetime of a facility which is used in|
|measuring ECL.|
|Base case economic|ANZBGL New Zealand derives a forward-looking|There have been no changes to the types of forward-|
|forecast|‘base case’ economic scenario which reflects our|looking variables (key economic drivers) used as model|
|view of future macroeconomic conditions.|inputs.|
|The base case assumptions have been updated to reflect|
|a stabilisation in inflation. Near-term growth forecasts have|
|been reduced, reflecting the impacts of global uncertainty.|
|Weaker GDP growth momentum pushes the return to|
|average out to 2027. Further interest rate cuts are|
|expected to contribute to a recovery in consumer|
|spending. The level of unemployment is elevated but|
|projected to fall.|
|The expected outcomes of key economic drivers for the|
|base case scenario at 30 September 2025 are described|
|in the section on page 29 under the heading ‘Base case|
|economic forecast assumptions’.|

----- End of picture text -----

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

12. Allowance for expected credit losses (continued)

==> picture [505 x 31] intentionally omitted <==

==> picture [505 x 268] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Judgement/Assumption|Description|Considerations for the year ended 30 September 2025|
|Probability weighting of|Probability weighting of each economic scenario|Probability weightings remain unchanged from the prior|
|each economic scenario|is determined by management considering the|period, reflecting our assessment of the continuing|
|(base case, upside,|risks and uncertainties surrounding the base case|downside risks in local and global economies, and|
|downside and severe|economic scenario at each measurement date.|uncertainties related to foreign policies.|
|downside scenarios)|
|The assigned probability weightings are subject|The probability weightings for current and prior periods are|
|to a high degree of inherent uncertainty and|as detailed in the section on page 30 under the heading|
|therefore the actual outcomes may be|‘Probability weightings’.|
|significantly different to those projected.|
|Management temporary|Management temporary adjustments to the ECL|Management have continued to apply adjustments to|
|adjustments|allowance are used in circumstances where it is|accommodate risks associated with higher inflation and|
|judged that our existing inputs, assumptions and|interest rates experienced over the last few years.|
|model techniques do not capture all the risk|Management overlays have been made for risks particular|
|factors relevant to our lending portfolios.|to mortgages and commercial lending. The total amount|
|Emerging local or global macroeconomic,|of adjustments has decreased from the prior period as|
|microeconomic or political events, and natural|anticipated risks are now represented in the portfolio|
|disasters that are not incorporated into our|credit profiles.|
|current parameters, risk ratings, or forward-|
|Management temporary adjustments total NZ$52 million|
|looking information are examples of such|
|(2024: NZ$73 million).|
|circumstances.|
|Management has considered and concluded no|
|temporary adjustment is required at 30 September 2025|
|to the ECL in relation to climate or weather related events|
|during the period.|

----- End of picture text -----

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 ANZBGL New Zealand’s view of future macroeconomic conditions used at 30 September 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.

==> picture [505 x 81] intentionally omitted <==

----- Start of picture text -----

|||||
|---|---|---|---|
|Forecast calendar year|
|2025|2026|2027|
|New Zealand|
|GDP (annual % change)|0.9|2.4|2.7|
|Unemployment rate (annual average as a %)|5.2|4.8|4.3|
|Residential property prices (annual % change)|2.5|5.0|4.5|
|Consumer price index (annual average % change)|2.7|1.9|2.0|

----- End of picture text -----

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

12. Allowance for expected credit losses (continued)

==> picture [505 x 31] intentionally omitted <==

Probability weightings

Probability weightings for each scenario are determined by management considering the risks and uncertainties surrounding the base case economic scenario including the uncertainties described above.

The 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, taking into account short and long term inter-relationships within ANZBGL New Zealand’s credit portfolios. The weightings applied are set out below:

==> picture [505 x 53] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|2025|2024|
|Base|50.00%|50.00%|
|Upside|3.75%|3.75%|
|Downside|33.75%|33.75%|
|Severe downside|12.50%|12.50%|

----- End of picture text -----

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 30 September 2025:

==> picture [504 x 111] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Total|Impact on total|[1]|
|NZ$m|NZ$m|
|Collectively assessed ECL as at 30 September 2025 (refer to page 25)|734|-|
|If 1% of Stage 1 facilities were included in Stage 2|739|+5|
|If 1% of Stage 2 facilities were included in Stage 1|733|-1|
|100% upside scenario|280|-454|
|100% base scenario|360|-374|
|100% downside scenario|819|+85|
|100% severe downside scenario|1,720|+986|

----- End of picture text -----

There is an inverse and proportionate impact on profit or loss.

Individually assessed allowance for expected credit losses

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 financial statements.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

Financial liabilities

Outlined below is a description of how we classify and measure financial liabilities relevant to the note disclosures that follow.

==> picture [532 x 44] intentionally omitted <==

Financial liabilities

Financial liabilities are measured at amortised cost, or FVTPL when they are held for trading. Additionally, financial liabilities can be designated at FVTPL where:

the designation eliminates or significantly reduces an accounting mismatch which would otherwise arise;
a group of financial liabilities are managed and their performance are evaluated on a fair value basis, in accordance with a documented risk management strategy; or
the financial liability contains one or more embedded derivatives unless:
a) the embedded derivative does not significantly modify the cash flows that otherwise would be required by the contract; or
b) the embedded derivative is closely related to the host financial liability.

Where financial liabilities are designated as measured at fair value, gains or losses relating to changes in the entity’s own credit risk are included in Other comprehensive income, except where doing so would create or enlarge an accounting mismatch in profit or loss.

13. Deposits and other borrowings

13. Deposits and other borrowings
	2025	2024
	NZ$m	NZ$m
Term deposits	60,808	59,308
On demand and short term deposits	65,405	60,983
Deposits not bearinginterest	17,329	15,872
Total customer deposits	143,542	136,163
Certificates of deposit	882	1,174
Commercial paper	4,165	1,419
Securities sold under repurchase agreements	4,520	3,750
Borrowings from Ultimate Parent Bank and Immediate Parent Company1	3,063	2,817
Deposits and other borrowings	156,172	145,323
Residual contractual maturity:
Within one year	147,914	136,670
More than oneyear	8,258	8,653
Deposits and other borrowings	156,172	145,323
Carried on balance sheet at:
Amortised cost	148,652	142,882
Fair value throughprofit or loss (designated on initial recognition)	7,520	2,441
Deposits and other borrowings	156,172	145,323

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.

==> picture [505 x 31] intentionally omitted <==

For deposits and other borrowings that:

are not designated at FVTPL on initial recognition, we measure them at amortised cost and recognise their interest expense using the effective interest rate method; and
are managed on a fair value basis, reduce or eliminate an accounting mismatch or contain an embedded derivative, we designate them as measured at FVTPL.

Refer to Note 16 Fair value of financial assets and financial liabilities for further details.

For deposits and other borrowings designated at fair value we recognise the amount of fair value gain or loss attributable to changes in ANZBGL New Zealand’s own credit risk in Other comprehensive income in retained earnings. Any remaining amount of fair value gain or loss we recognise directly in profit or loss. Once we have recognised an amount in other comprehensive income, we do not later reclassify it to profit or loss.

Securities sold under repurchase agreements represent a liability to repurchase the financial assets that remain on our balance sheet since the risks and rewards of ownership remain with ANZBGL New Zealand. Over the life of the repurchase agreement, we recognise the difference between the sale price and the repurchase price and charge it to interest expense in profit or loss.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

14. 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.

holders of unsubordinated debt) of that issuer.
	2025	2024
	NZ$m	NZ$m
Senior debt	12,020	12,349
Covered bonds	2,510	2,156
Total unsubordinated debt	14,530	14,505
Subordinated debt	3,236	3,044
Total debt issued	17,766	17,549
Residual contractual maturity:
Within one year	3,307	3,213
More than oneyear	14,459	14,336
Total debt issued	17,766	17,549

Total debt issued by currency

The table below shows ANZBGL New Zealand’s issued debt by currency of issue, which broadly represents the debt holders’ base location.

		2025	2024
		NZ$m	NZ$m
AUD	Australian dollars	905	907
EUR	Euro	6,902	5,892
NZD	New Zealand dollars	1,835	1,097
CHF	Swiss Francs	-	743
USD	United States dollars	8,124	8,910
Total debt issued		17,766	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 Covered Bond Trust). The Covered Bond Trust is a member of ANZBGL New Zealand. The Covered Bond Guarantor is not a member of ANZBGL New Zealand 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 61 for the carrying amount of assets transferred to the ANZ Covered Bond Trust pledged as security for covered bonds.

Subordinated debt

The table below shows the subordinated debt on issue at 30 September 2025 and 30 September 2024:

					Interest	2025	2024
Currency	Face value	Issue date	Maturity	Next optional call date	rate	NZ$m	NZ$m
Term subordinated debt issued by the Bank
NZD	600m	Sep 2021	Sep 2031	Sep 2026	Fixed	598	597
USD	500m	Aug 2022	Aug 2032	Aug 2027	Fixed	849	771
USD	500m	Jul 2024	Jul 2034	Jul 2029	Fixed	884	812
Perpetual	subordinated debt issued by ANZ Holdings (New Zealand) Limited
AUD	800m	Sep2024	Perpetual	Oct 2030	Floating	905	864
Subordinated debt1						3,236	3,044

Carrying amounts are net of issuance costs and, where applicable, include fair value hedge accounting adjustments.

==> picture [505 x 31] intentionally omitted <==

Debt issuances are initially recognised at fair value and are subsequently measured at amortised cost, except where designated at FVTPL. Interest expense on debt issuances is recognised using the effective interest rate method. Where ANZBGL New Zealand enters into a fair value hedge accounting relationship, the fair value attributable to the hedged risk is reflected in adjustments to the carrying value of the debt.

Subordinated debt with capital-based conversion features (i.e. Common Equity Capital Trigger Events or Non-Viability Trigger Events) are considered to contain embedded derivatives that we account for separately at FVTPL. The embedded derivatives arise because the number of shares issued on conversion following any of those trigger events is subject to the maximum conversion number, however they have no significant value as of the reporting date given the remote nature of those trigger events.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management

Risk management framework and model

Introduction

The use of financial instruments is fundamental to ANZBGL New Zealand’s business of providing banking and other financial services to our customers. The associated financial risks (primarily credit, market, and liquidity risks) are a significant portion of ANZBGL New Zealand’s material risks.

This note details ANZBGL New Zealand’s financial risk management policies, processes and quantitative disclosures in relation to the material financial risks:

Material financial risks Key sections applicable to this risk Credit risk • Credit risk overview, management and control responsibilities The risk of financial loss resulting from: • Maximum exposure to credit risk • a counterparty failing to fulfil its obligations; or • Credit quality • a decrease in credit quality of a counterparty resulting in a financial loss. • Concentrations of credit risk Credit risk incorporates the risks associated with us lending to customers who • Collateral management could be impacted by climate change, changes to laws, regulations, or other policies adopted by governments or regulatory authorities. Climate change impacts include both physical risks (climate- or weather-related events) and transition risks resulting from the adjustment to a low emissions economy. Transition risks include resultant changes to laws, regulations and policies noted above.

Market risk

Market risk overview, management and control responsibilities
The risk to ANZBGL New Zealand’s earnings arising from: • Measurement of market risk • changes in interest rates, foreign exchange rates, credit spreads, volatility • Traded and non-traded market risk and correlations; or • Foreign currency risk – structural exposure
• fluctuations in bond, commodity or equity prices. Liquidity and funding risk • Liquidity risk overview, management and control responsibilities The risk that ANZBGL New Zealand is unable to meet its payment obligations • Key areas of measurement for liquidity risk as they fall due, including: • Liquidity portfolio management
• repaying depositors or maturing wholesale debt; or • Funding position
• ANZBGL New Zealand having insufficient capacity to fund increases in assets. • Residual contractual maturity analysis of ANZBGL New Zealand’s liabilities
fluctuations in bond, commodity or equity prices.

Overview

An overview of our risk management framework

This overview is provided to aid the users of the financial statements in understanding the context of the financial disclosures required under NZ IFRS 7 Financial Instruments: Disclosures .

The Board is responsible for establishing and overseeing ANZBGL New Zealand’s Risk Management Framework (RMF). The Board has delegated authority to the Bank’s Board Risk Committee (BRC) to develop and monitor compliance with ANZBGL New Zealand’s risk management policies. The BRC reports regularly to the Board on its activities.

The Board approves the strategic objectives of ANZBGL New Zealand including:

the Risk Appetite Statement (RAS), which sets out the Board’s expectations regarding the degree of risk that ANZBGL New Zealand is prepared to accept in pursuit of its strategic objectives and business plan; and
the Risk Management Strategy (RMS), which describes ANZBGL New Zealand’s strategy for managing risks and the key elements of the RMF that give effect to this strategy. This includes a description of each material risk, and an overview of how the RMF addresses each risk, with reference to the relevant policies, standards and procedures. It also includes information on how ANZBGL New Zealand identifies, measures, evaluates, monitors, reports and controls or mitigates material risks.

ANZBGL New Zealand, through its training and management standards and procedures, aims to maintain a disciplined and robust control environment in which all employees understand their roles and obligations. At ANZBGL New Zealand, risk is everyone’s responsibility.

ANZBGL New Zealand has an independent risk management function, headed by the Chief Risk Officer who:

is responsible for overseeing the risk profile and the risk management framework;
can effectively challenge activities and decisions that materially affect ANZBGL New Zealand’s risk profile; and
has an independent reporting line to the BRC to enable the appropriate escalation of issues of concern.

Internal Audit Function

Internal Audit is a function independent of management whose role is to provide the Board and management with an effective and independent appraisal of the internal controls established by management. Operating under a Board approved Charter, the reporting line for the outcomes of work conducted by Internal Audit is direct to the Chair of the Audit Committee, with a direct communication line to the Chief Executive Officer and the external auditor. The Internal Audit Plan is developed using a risk based approach and is reviewed quarterly. The Audit Committee approves the plan.

All audit activities are conducted in accordance with international internal auditing standards, and the results of the activities are reported to the Audit Committee and management. These results influence the performance assessment of business heads. Furthermore, Internal Audit monitors the remediation of audit issues and reports the current status of any outstanding audits.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Credit risk

Credit risk overview, management and control responsibilities

Granting credit facilities to customers is one of ANZBGL New Zealand’s major sources of income. As this activity is also a principal risk, ANZBGL New Zealand dedicates considerable resources to its management. ANZBGL New Zealand assumes credit risk in a wide range of lending and other activities in diverse markets and in many jurisdictions. Credit risks arise from traditional lending to customers as well as from interbank, treasury, trade finance and capital markets activities.

Our credit risk management framework ensures we apply a consistent approach across ANZBGL New Zealand when we measure, monitor and manage the credit risk appetite set by the Board. The Board is assisted and advised by the BRC in discharging its duty to oversee credit risk. The BRC:

approves the credit risk appetite and credit strategies; and
approves policies and control frameworks for the management of ANZBGL New Zealand’s credit risk.

The BRC delegates responsibility for day-to-day management of credit risk and compliance with credit risk policies to the Bank’s Credit Risk Management Committee (CRMC).

We quantify credit risk through an internal credit rating system (Master Scale) to ensure consistency across exposure types and to provide a consistent framework for reporting and analysis. The system uses models and other tools to measure the following for customer exposures:

Probability of Default (PD)	Expressed by a Customer Credit Rating (CCR), reflecting ANZBGL New Zealand’s assessment of a
	customer’s ability to service and repay debt.
Exposure at Default (EAD)	The expected balance sheet exposure at default taking into account repayments of principal and interest,
	expected additional drawdowns and accrued interest at the time of default.
Loss Given Default (LGD)	Expressed by a Security Indicator (SI) ranging from A to G. The SI is calculated by reference to the
	percentage of loan covered by security which ANZBGL New Zealand can realise if a customer defaults.
	The A-G scale is supplemented by a range of other SIs which cover such factors as cash cover and
	sovereign backing. For retail and some small business lending, we group exposures into large
	homogeneous pools, and the LGD is assigned at the pool level.

Our specialist credit risk teams develop and validate ANZBGL New Zealand’s PD and LGD rating models. The outputs from these models drive our day-today credit risk management decisions including origination, pricing, approval levels, regulatory capital adequacy, internal capital allocation, and credit provisioning.

All customers with whom ANZBGL New Zealand has a credit relationship are assigned a CCR at origination via either of the following assessment approaches:

Large and more complex lending	Retail and some small business lending
Rating models provide a consistent and structured assessment, with	Automated assessment of credit applications using a combination of
judgement required around the use of out-of-model factors. We	scoring (application and behavioural), policy rules and external credit
handle credit approval on a dual approval basis, jointly with the	reporting information. If the application does not meet the automated
business writer and an independent credit officer.	assessment criteria, then it is subject to manual assessment.

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

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Credit risk (continued)

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.

held or other credit enhancements.
	Maximum exposure Reported Excluded1 to credit risk
	2025 2024 2025 2024 2025 2024 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m

On-balance sheet positions Net loans and advances Other financial assets: Cash and cash equivalents Settlement balances receivable Collateral paid Trading securities Derivative financial instruments Investment securities Other financial assets2	158,964 151,963 - - 158,964 151,963 9,386 11,634 130 130 9,256 11,504 1,620 574 - - 1,620 574 1,114 1,041 - - 1,114 1,041 6,348 5,576 - - 6,348 5,576 11,446 10,173 - - 11,446 10,173 16,458 13,295 - - 16,458 13,295 860 1,113 - - 860 1,113
Total other financial assets	47,232 43,406 130 130 47,102 43,276
Subtotal	206,196 195,369 130 130 206,066 195,239
Off-balance sheet positions Undrawn and contingent facilities3	30,059 28,453 - - 30,059 28,453
Total	236,255 223,822 130 130 236,125 223,692

Coins, notes and cash at bank within cash and cash equivalents were excluded as they do not have credit risk exposure.

Other financial assets mainly comprise accrued interest and acceptances.

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.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Credit risk (continued)

Credit quality

An analysis of ANZBGL New Zealand’s credit risk exposure is presented in the following tables based on ANZBGL New Zealand’s internal credit quality rating by stage without taking account of the effects of any collateral or other credit enhancements.

Net loans and advances Stage 1 Stage 2	Stage 3 Collectively assessed Individually assessed Total
As at 30 September 2025 NZ$m NZ$m	NZ$m NZ$m NZ$m
Strong 79,775 1,316 Satisfactory 61,428 5,577 Weak 5,301 3,048 Defaulted - -	- - 81,091
	- - 67,005
	- - 8,349
	1,244 369 1,613
Gross loans and advances at amortised cost 146,504 9,941	1,244 369 158,058
Allowance for ECL (188) (320)	(96) (64) (668)
Net loans and advances at amortised cost 146,316 9,621	1,148 305 157,390
Coverage ratio 0.13% 3.22%	7.72% 17.34% 0.42%
Loans and advances at FVTPL Unearned income Capitalised brokerage and other origination costs	961
	(26)
	639
Net carryingamount	158,964

As at 30 September 2024
Strong 73,720 1,550 Satisfactory 59,983 6,912 Weak 4,924 3,477 Defaulted - -	- - 75,270 - - 66,895 - - 8,401 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 carryingamount 151,963

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Credit risk (continued)

Credit risk (continued)
Off-balance sheet commitments - undrawn and contingent facilities Stage 1 Stage 2	Stage 3 Collectively assessed Individually assessed Total
As at 30 September 2025 NZ$m NZ$m	NZ$m NZ$m NZ$m
Strong 24,008 254 Satisfactory 4,169 1,097 Weak 223 403 Defaulted - -	- - 24,262
	- - 5,266
	- - 626
	16 23 39
Gross undrawn and contingent facilities 28,400 1,754	16 23 30,193
Allowance for ECL included in Otherprovisions (refer to Note 19) (70) (57)	(3) (4) (134)
Net undrawn and contingent facilities 28,330 1,697	13 19 30,059
Coverage ratio 0.25% 3.25%	18.75% 17.39% 0.44%

As at 30 September 2024
Strong 23,450 196 Satisfactory 3,530 1,087 Weak 30 260 Defaulted - -	- - 23,646 - - 4,617 - - 290 26 10 36
Gross undrawn and contingent facilities 27,010 1,543	26 10 28,589
Allowance for ECL included in Otherprovisions (refer to Note 19) (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%

Other financial assets
	2025	2024
	NZ$m	NZ$m
Strong	47,016	43,237
Satisfactory	76	32
Weak	10	7
Defaulted	-	-
Total carryingamount	47,102	43,276

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Credit risk (continued)

Concentrations of credit risk

Credit risk becomes concentrated when a number of customers are engaged in similar activities, have similar economic characteristics, or have similar activities within the same geographic region – therefore, they may be similarly affected by changes in economic or other conditions. ANZBGL New Zealand monitors its credit portfolio to manage risk concentration and rebalance the portfolio. ANZBGL New Zealand also applies single customer counterparty limits to protect against unacceptably large exposures to one single customer.

Analysis of financial assets by industry sector 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.

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
	2025 2024 2025 2024 2025 2024 2025 2024 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m

New Zealand residents Agriculture Forestry and fishing, agriculture services Mining Manufacturing Electricity, gas, water and waste services Construction Wholesale trade Retail trade and accommodation Transport, postal and warehousing Finance and insurance services Rental, hiring & real estate services Professional, scientific, technical, administrative and support services Public administration and safety Health care and social assistance Households All other New Zealand residents1
	15,517 15,489 70 82 1,055 745 16,642 16,316
	557 557 5 4 102 94 664 655
	83 158 1 2 80 226 164 386
	2,347 2,444 184 94 2,182 1,952 4,713 4,490
	1,263 589 298 290 2,018 1,383 3,579 2,262
	1,093 961 5 6 970 969 2,068 1,936
	1,433 1,439 70 39 1,476 1,578 2,979 3,056
	2,638 2,902 13 28 770 621 3,421 3,551
	1,061 1,043 40 89 853 706 1,954 1,838
	2,307 864 12,353 12,999 1,215 1,407 15,875 15,270
	38,163 37,143 1,916 1,960 1,772 1,996 41,851 41,099
	1,047 1,054 21 8 616 440 1,684 1,502
	181 209 15,196 10,938 721 845 16,098 11,992
	886 915 11 9 338 294 1,235 1,218
	87,017 83,116 356 427 14,400 13,760 101,773 97,303
	1,172 1,154 71 109 1,338 1,384 2,581 2,647
Subtotal	156,765 150,037 30,610 27,084 29,906 28,400 217,281 205,521
Overseas Finance and insurance services Households All other non-New Zealand residents
	61 66 16,259 16,172 287 189 16,607 16,427
	1,554 1,512 6 8 - - 1,560 1,520
	639 578 227 12 - - 866 590
Subtotal	2,254 2,156 16,492 16,192 287 189 19,033 18,537
Gross subtotal	159,019 152,193 47,102 43,276 30,193 28,589 236,314 224,058
Allowance for ECL	(668) (725) - - (134) (136) (802) (861)
Subtotal	158,351 151,468 47,102 43,276 30,059 28,453 235,512 223,197
Unearned income Capitalised brokerage and other origination costs	(26) (21) - - - - (26) (21)
	639 516 - - - - 639 516
Maximum exposure to credit risk	158,964 151,963 47,102 43,276 30,059 28,453 236,125 223,692

Other 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

Notes to the consolidated financial statements

15. Financial risk management (continued)

Credit risk (continued)

Collateral management

We use collateral for on and off-balance sheet exposures to mitigate credit risk if a counterparty cannot meet its repayment obligations. Where there is sufficient collateral, an expected credit loss is not recognised. This is largely the case for certain lending products, such as margin loans and reverse repurchase agreements that are secured by the securities purchased using the lending. For some products, the collateral provided by customers is fundamental to the product’s structuring, so it is not strictly the secondary source of repayment - for example, lending secured by trade receivables is typically repaid by the collection of those receivables. During the period there was no change in our collateral policies.

The nature of collateral or security held for the relevant classes of financial assets is as follows:

Net loans and advances
Loans – housing and personal	Housing loans are secured by mortgage(s) over property and additional security may take the form of
	guarantees and deposits.
	Personal lending (including credit cards and overdrafts) is predominantly unsecured. If we take security,
	then it is restricted to eligible vehicles, motor homes and other assets.
Loans – business	Business loans may be secured, partially secured or unsecured. Typically, we take security by way of a
	mortgage over property and/or a charge over the business or other assets.
	If appropriate, we may take other security to mitigate the credit risk, such as guarantees, standby letters
	of credit or derivative protection.
Other financial assets
Trading securities, investment	For trading securities, we do not seek collateral directly from the issuer or counterparty. However, the
securities, derivatives and other	collateral may be implicit in the terms of the instrument (for example, with an asset-backed security). The
financial assets	terms of debt securities may include collateralisation.
	For derivatives we will have large individual exposures to single name counterparties such as central
	clearing houses, financial institutions, and other institutional clients. Open derivative positions with these
	counterparties are aggregated and cash collateral (or other forms of eligible collateral) is exchanged daily
	through the respective Credit Support Annex (CSA) agreements. The collateral is provided by the
	counterparty when their position is out of the money (or provided to the counterparty by ANZBGL New
	Zealand when our position is out of the money). Credit risk will remain where the full amount of the
	derivative exposure is not covered by any collateral.
Off-balance sheet positions
Undrawn and contingent facilities	Collateral for off-balance sheet positions is mainly held against undrawn facilities, and they are typically
	performance bonds or guarantees. Undrawn facilities that are secured include housing loans secured by
	mortgages over residential property and business lending secured by commercial real estate and/or
	charges over business assets.

The table below shows the estimated value of collateral we hold and the net unsecured portion of credit exposures:

	Maximum exposure to credit risk Total value of collateral1 Unsecured portion of credit exposure
	2025 2024 2025 2024 2025 2024
	NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Net loans and advances Other financial assets Off-balance sheetpositions	158,964 151,963 149,917 144,843 9,047 7,120 47,102 43,276 5,985 3,605 41,117 39,671 30,059 28,453 17,260 15,700 12,799 12,753
Total	236,125 223,692 173,162 164,148 62,963 59,544

In estimating the value of collateral for housing loans, customers are assumed to be meeting their insurance obligations for the properties over which the mortgages are secured.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Market risk

Market risk overview, management and control responsibilities

Market risk stems from ANZBGL New Zealand’s trading and balance sheet management activities and the impact of changes and correlations between interest rates, foreign exchange rates, credit spreads, commodities, equities and the volatility within these asset classes.

The BRC delegates responsibility for day-to-day management of both market risk and compliance with market risk policies to the Bank’s Asset & Liability Management Committee (ALCO).

Within overall strategies and policies established by the BRC, business units and risk management have joint responsibility for the control of market risk at the ANZBGL New Zealand level. The Market & Treasury Risk team (a specialist risk management unit independent of the business) allocates market risk limits at various levels and monitors and reports on them daily. This detailed framework allocates individual limits to manage and control exposures using risk factors and profit and loss limits.

Management, measurement and reporting of market risk is undertaken in two broad categories:

Traded market risk Non-traded market risk Risk of loss from changes in the value of financial instruments due to Risk of loss associated with the management of non-traded interest rate risk, movements in price factors for both physical and derivative trading liquidity risk and foreign exchange exposures. This includes interest rate risk in positions. Principal risk categories monitored are: the banking book. This risk of loss arises from adverse changes in the overall • Currency risk – potential loss arising from changes in foreign and relative level of interest rates for different tenors, differences in the actual versus expected net interest margin, and the potential valuation risk associated exchange rates or their implied volatilities. with embedded options in financial instruments and bank products.

Interest rate risk – potential loss from changes in market interest rates or their implied volatilities.
Credit spread risk – potential loss arising from a movement in margin or spread relative to a benchmark.
Commodity risk – potential loss arising from changes in commodity prices or their implied volatilities.
Equity risk – potential loss arising from changes in equity prices.

Measurement of market risk

We primarily manage and control market risk using Value at Risk (VaR), sensitivity analysis and stress testing.

VaR measures ANZBGL New Zealand’s possible daily loss based on historical market movements.

ANZBGL New Zealand’s VaR approach for both traded and non-traded risk is historical simulation. We use historical changes in market rates, prices and volatilities over:

the previous 500 business days, to calculate standard VaR; and
a 1-year stressed period, to calculate stressed VaR.

We calculate traded and non-traded VaR using a one-day holding period. For stressed VaR we use a ten-day period. Back testing is used to ensure our VaR models remain accurate.

ANZBGL New Zealand measures VaR at a 99% confidence interval which means there is a 99% chance that a loss will not exceed the VaR for the relevant holding period.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Market risk (continued)

Traded and non-traded market risk

Traded market risk

The table below shows the traded market risk VaR on a diversified basis by risk categories:

	2025 2024
	High for Low for Average High for Low for Average As at year year for year As at2 year year for year
	NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Traded value at risk 99% confidence Foreign exchange Interest rate Credit Diversification benefit1
	0.6 1.7 0.2 0.5 0.8 1.4 0.3 0.8 0.9 2.7 0.6 1.2 0.8 3.8 0.8 1.5 0.5 0.9 0.1 0.4 0.5 1.1 0.1 0.7 (0.5) n/a n/a (0.8) (0.5) n/a n/a (1.0)
Total VaR	1.5 4.1 0.6 1.3 1.3 4.8 1.2 2.0

The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low VaR reported for ANZBGL New Zealand as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table.

Comparative amounts have been adjusted to be consistent with the current period’s presentation.

Non-traded market risk

Balance sheet risk management

The principal objectives of balance sheet risk management are to maintain acceptable levels of interest rate and liquidity risk to mitigate the negative impact of movements in interest rates on the earnings and market value of ANZBGL New Zealand’s banking book, while ensuring ANZBGL New Zealand maintains sufficient liquidity to meet its obligations as they fall due.

Interest rate risk management

Non-traded interest rate risk relates to the potential adverse impact of changes in market interest rates on ANZBGL New Zealand’s future net interest income. This risk arises from two principal sources, namely mismatches between the repricing dates of interest bearing assets and liabilities; and the investment of capital and other non-interest bearing liabilities and assets. Interest rate risk is reported using VaR and scenario analysis (based on the impact of a 1% rate shock). The table below shows VaR figures for non-traded interest rate risk for ANZBGL New Zealand.

impact of a 1% rate shock). The table below s	hows VaR figures for non-traded interest rate risk for ANZBGL New Zealand.
	2025 2024
	As at High for year Low for year Average for year As at High for year Low for year Average for year NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Non-traded value at risk 99% confidence Total VaR	26.8 30.1 21.9 25.9 29.4 37.4 26.2 28.8

We undertake scenario analysis to stress test the impact of extreme events on ANZBGL New Zealand’s market risk exposures. We model a 1% overnight parallel positive shift in the yield curve to determine the potential impact on our net interest income over the next 12 months. This is a standard risk measure which assumes the parallel shift is reflected in all wholesale and customer rates.

The table below shows the outcome of this risk measure for the current and previous financial years, expressed as a percentage of reported net interest income.

income.
	2025	2024
Impact of 1% rate shock on the next 12 months' net interest income
As at period end	0.3%	-0.4%
Maximum exposure	0.7%	1.1%
Minimum exposure	-0.5%	-0.6%
Average exposure (in absolute terms)	0.0%	0.4%

Foreign currency risk – structural exposures

Where it is considered appropriate, ANZBGL New Zealand takes out economic hedges against larger foreign exchange denominated expenditure streams (primarily Australian Dollar, US Dollar and US Dollar correlated). The primary objective of hedging these streams is to protect against a significant decrease in shareholder value due to negative impacts of foreign exchange rate movements.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Liquidity and funding risk

Liquidity risk overview, management and control responsibilities

Liquidity risk is the risk that ANZBGL New Zealand:

is unable to meet its payment obligations (including repaying depositors or maturing wholesale debt) when they fall due; or
does not have the appropriate amount, tenor and composition of funding and liquidity to fund increases in its assets.

Management of liquidity and funding is overseen by ALCO following delegation from the BRC. Within an overall framework established by the BRC, Treasury and Market & Treasury Risk have responsibility for the control of funding and liquidity risk. ANZBGL New Zealand liquidity and funding risks are governed by principles approved by the BRC that include:

maintaining the ability to meet all payment obligations in the immediate term;
maintaining the ability to meet ‘survival horizons’ under New Zealand specific and general market liquidity stress scenarios to meet cash flow obligations over the short to medium term;
maintaining strength in the balance sheet structure to ensure long term resilience in the liquidity and funding risk profile;
adequately diversifying funding arrangements by counterparty, geography and tenor;
maintaining a portfolio of high-quality liquid assets to act as a source of liquidity in times of stress and support normal day-to-day payment activities; and
establishing a stress funding plan that would cover a range of market funding scenarios.

Key areas of measurement for liquidity and funding risk

Supervision and regulation

RBNZ requires the Bank to have a comprehensively documented Board approved liquidity framework that specifies governance and oversight responsibilities and principal methods that will be used to measure, monitor and control liquidity risk. This also includes a formal contingency plan for dealing with a liquidity crisis. The Banking Group is required to meet one week and one month liquidity mismatch ratios and a one year core funding ratio each day.

Scenario modelling

A key component of ANZBGL New Zealand’s liquidity management framework is scenario modelling of a range of regulatory and internal liquidity metrics.

Potential severe liquidity crisis scenarios that model the behaviour of cash flows where there is a problem (real or perceived) may include, but are not limited to, operational issues, doubts about solvency, or adverse credit rating changes. Under these scenarios ANZBGL New Zealand may have significant difficulty rolling over or replacing funding. ANZBGL New Zealand’s liquidity management framework requires sufficient high quality liquid assets to be held to meet its liquidity needs for the following one month under the modelled scenarios.

As at 30 September 2025, ANZBGL New Zealand was operating above the required minimums for the modelled scenarios.

Structural balance sheet metrics

The Banking Group’s liquidity management framework also encompasses structural balance sheet metrics such as the RBNZ’s core funding ratio. The core funding ratio is designed to limit the amount of wholesale funding required to be rolled over within a one year timeframe and so interacts with the modelled liquidity scenarios to maintain the Banking Group‘s liquidity position.

Wholesale funding

The Banking Group’s wholesale funding strategy is designed to deliver a sustainable portfolio of wholesale funds that balances cost efficiency with targeting diversification by markets, investors, currencies, maturities and funding structures. Short-term and long-term wholesale funding is managed and executed by Treasury.

The Banking Group also uses maturity concentration limits under the wholesale funding and liquidity management framework. Maturity concentration limits ensure that the Banking Group is not required to issue large volumes of new wholesale funding within a short time period to replace maturing wholesale funding. Funding instruments used to meet the wholesale borrowing requirement must be on a pre-established list of approved products.

Funding capacity and debt issuance planning

The Banking Group adopts a conservative approach to determine its funding capacity. Annually, a funding plan is approved by the Bank’s Board. The plan is supplemented by regular updates and is linked to the Banking Group’s three-year strategic planning cycle.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Liquidity and funding risk (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.

liquidity scenario metrics.
	2025	2024
	NZ$m	NZ$m
Central and local government bonds	14,487	9,684
Government treasury bills	111	207
Certificates of deposit	537	359
Other bonds	7,543	8,205
Securities eligible to be accepted as collateral in repurchase transactions	22,678	18,455
Cash and balances with central banks	7,270	9,723
Total liquidity portfolio	29,948	28,178

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$11,441 million at 30 September 2025 (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 30 September 2025, the Bank had NZ$165 million drawn under the TLF (2024: NZ$228 million) and NZ$1,000 million drawn under the FLP (2024: NZ$2,500 million). These amounts are included in securities sold under repurchase agreements in Note 13 Deposits and other borrowings.

Liquidity crisis contingency planning

ANZBGL New Zealand maintains a liquidity crisis contingency plan to define an approach for analysing and responding to a liquidity-threatening event. The framework includes:

the establishment of crisis severity/stress levels;
clearly assigned crisis roles and responsibilities;
early warning signals indicative of an approaching crisis, and mechanisms to monitor and report these signals;
action plans, and courses of action for altering asset and liability behaviour;
procedures for crisis management reporting, and covering cash-flow shortfalls; and
the approach to internal and external communications.

Funding position

ANZBGL New Zealand actively uses balance sheet disciplines to prudently manage the funding mix. ANZBGL New Zealand employs funding metrics to ensure that an appropriate proportion of its assets are funded from stable sources, including customer liabilities, longer-dated wholesale debt (with remaining term exceeding one year) and equity.

remaining term exceeding one year) and equity.
	2025	2024
	NZ$m	NZ$m
Funding composition
Customer deposits	143,542	136,163
Wholesale funding
Debt issuances	17,766	17,549
Certificates of deposit	882	1,174
Commercial paper	4,165	1,419
Other borrowings	7,583	6,567
Total wholesale funding	30,396	26,709
Total deposits and wholesale funding	173,938	162,872

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

15. Financial risk management (continued)

Liquidity and funding risk (continued)

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

	2025	2024
	NZ$m	NZ$m
Customer deposits by industry - New Zealand residents
Agriculture, forestry and fishing	4,595	3,949
Mining	222	313
Manufacturing	2,967	3,091
Construction	3,195	2,911
Wholesale trade	2,389	2,326
Retail trade and accommodation	2,312	2,195
Transport, postal and warehousing	1,616	1,530
Financial and insurance services	15,591	13,773
Rental, hiring and real estate services	3,697	3,441
Professional, scientific, technical, administrative and support services	6,803	6,750
Public administration and safety	1,428	1,855
Health care and social assistance	1,685	1,587
Arts, recreation and other services	2,507	2,466
Households	80,832	77,164
All other New Zealand residents1	2,662	2,577
Subtotal	132,501	125,928
Customer deposits by industry - overseas
Households	10,260	9,488
All other non-New Zealand residents	781	747
Subtotal	11,041	10,235
Total customer deposits	143,542	136,163
Wholesale funding (financial and insurance services industry)
New Zealand	6,432	5,470
Overseas	23,964	21,239
Total wholesale funding	30,396	26,709
Total deposits and wholesale funding	173,938	162,872
Concentrations of funding by geography
New Zealand	138,933	131,398
Australia	4,656	4,273
United States	12,983	11,156
Europe	9,260	8,730
Other countries	8,106	7,315
Total deposits and wholesale funding	173,938	162,872

Other 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

Notes to the consolidated financial statements

15. Financial risk management (continued)

Liquidity and funding risk (continued)

Residual contractual maturity analysis of ANZBGL New Zealand’s financial liabilities

The tables below provide residual contractual maturity analysis of financial liabilities at 30 September 2025 and 30 September 2024 within relevant maturity groupings. All outstanding debt issuances are profiled on the earliest date on which ANZBGL New Zealand may pay. The amounts represent principal and interest cash flows – so they may differ from equivalent amounts reported on the Balance Sheet.

It should be noted that this is not how ANZBGL New Zealand manages its liquidity risk. The management of this risk is detailed on page 42.

		Less than	3 to 12	1 to 5	After
	On demand	3 months	months	years	5 years	Total
As at 30 September 2025	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
Settlement balances payable	3,403	1,215	-	-	-	4,618
Collateral received	-	1,725	-	-	-	1,725
Deposits and other borrowings	82,737	35,027	32,852	6,409	9,430	166,455
Derivative financial liabilities (trading)	-	10,122	-	-	-	10,122
Debt issuances1	-	50	3,867	15,921	-	19,838
Lease liabilities	-	14	41	137	42	234
Other financial liabilities	-	26	10	87	180	303
Derivative financial instruments
(balance sheet management)
- gross inflows	-	(530)	3,132	7,285	819	10,706
- gross outflows	-	829	(3,265)	(7,455)	(870)	(10,761)
As at 30 September 2024
Settlement balances payable	3,772	1,599	-	-	-	5,371
Collateral received	-	525	-	-	-	525
Deposits and other borrowings	76,860	25,381	36,806	8,024	9,739	156,810
Derivative financial liabilities (trading)	-	11,062	-	-	-	11,062
Debt issuances1	-	441	3,332	14,922	1,191	19,886
Lease liabilities	-	14	41	156	46	257
Other financial liabilities	-	454	32	152	296	934
Derivative financial instruments
(balance sheet management)2
- gross inflows	-	(525)	7,288	4,307	1,203	12,273
- gross outflows	-	787	(7,508)	(4,344)	(1,096)	(12,161)

Any callable wholesale debt instruments have been included at their next call date. Refer to Note 14 Debt issuances for subordinated debt call dates.

Comparative amounts have been adjusted to be consistent with the current period’s presentation.

At 30 September 2025, NZ$30,193 million (2024: NZ$28,589 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

Notes to the consolidated financial statements

16. Fair 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.

as recognised on the Balance Sheet.
Note	2025 2024
	At amortised cost At fair value Total At amortised cost At fair value Total NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Financial assets Cash and cash equivalents1 7 Settlement balances receivable Collateral paid Trading securities 8 Derivative financial instruments 9 Investment securities 10 Net loans and advances 11 Other financial assets	7,760 1,626 9,386 10,590 1,044 11,634 1,620 - 1,620 574 - 574 1,114 - 1,114 1,041 - 1,041 - 6,348 6,348 - 5,576 5,576 - 11,446 11,446 - 10,173 10,173 - 16,458 16,458 - 13,295 13,295 158,003 961 158,964 151,963 - 151,963 860 - 860 1,113 - 1,113
Total	169,357 36,839 206,196 165,281 30,088 195,369
Financial liabilities Settlement balances payable Collateral received Deposits and other borrowings 13 Derivative financial instruments 9 Debt issuances 14 Other financial liabilities	4,597 - 4,597 5,346 - 5,346 1,725 - 1,725 525 - 525 148,652 7,520 156,172 142,882 2,441 145,323 - 10,198 10,198 - 11,150 11,150 17,766 - 17,766 17,549 - 17,549 1,095 195 1,290 1,733 372 2,105
Total	173,835 17,913 191,748 168,035 13,963 181,998

Comparative amounts have been adjusted to reflect the classification of certain reverse repurchase agreements included in cash and cash equivalents.

Financial assets and financial liabilities measured at fair 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 Net 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	Fair value approach
Financial instruments classified as:		Discounted cash flow (DCF) techniques are used whereby contractual future cash flows of the
-	Derivative financial assets and financial liabilities	instrument are discounted using wholesale market interest rates, or market borrowing rates for
-	(including trading and non-trading) Repurchase agreements <90 days	debt or loans with similar maturities or yield curves appropriate for the remaining term to maturity.
-	Net loans and advances
-	Deposits and other borrowings
-	Debt issuances
Other	financial instruments held for trading:	Valuation techniques are used that incorporate observable market inputs for financial
-	Securities sold short	instruments with similar credit risk, maturity and yield characteristics.
Financial instruments classified as:		Valuation techniques use comparable multiples (such as price-to-book ratios) or DCF
-	Trading securities	techniques incorporating, to the extent possible, observable inputs from instruments with similar characteristics.
-	Investment securities

There were no significant changes to valuation approaches during the current or prior periods.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

16. Fair 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 2025 2024 2025 2024 2025 2024 2025 2024 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Financial assets Cash and cash equivalents1 Trading securities2 Derivative financial instruments Investment securities2 Net loans and advances	- - 1,626 1,044 - - 1,626 1,044 5,169 4,653 1,179 923 - - 6,348 5,576 2 3 11,442 10,169 2 1 11,446 10,173 14,370 12,184 2,082 1,106 6 5 16,458 13,295 - - 961 - - - 961 -
Total	19,541 16,840 17,290 13,242 8 6 36,839 30,088
Financial liabilities Deposits and other borrowings Derivative financial instruments Other financial liabilities	- - 7,520 2,441 - - 7,520 2,441 43 70 10,155 11,079 - 1 10,198 11,150 195 358 - 14 - - 195 372
Total	238 428 17,675 13,534 - 1 17,913 13,963

Comparative amounts have been adjusted to reflect the classification of certain reverse repurchase agreements included in cash and cash equivalents.
During 2025, NZ$434 million of assets were transferred from Level 1 to Level 2 (2024: no assets were transferred from Level 1 to Level 2) and NZ$127 million of assets were transferred from Level 2 to Level 1 for ANZBGL New Zealand (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 year. 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.

At amortised cost 2025 2024 NZ$m NZ$m	Categorised into fair value hierarchy Quoted price in active markets (Level 1) Using observable inputs (Level 2) Using unobservable inputs (Level 3) Total fair value 2025 2024 2025 2024 2025 2024 2025 2024 NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m NZ$m
Financial assets Net loans and advances 158,003 151,963	- - 82 69 158,565 152,271 158,647 152,340
Total 158,003 151,963	- - 82 69 158,565 152,271 158,647 152,340
Financial liabilities Deposits and other borrowings 148,652 142,882 Debt issuances1 17,766 17,549	- - 148,965 143,152 - - 148,965 143,152 1,897 1,094 16,142 16,598 - - 18,039 17,692
Total 166,418 160,431	1,897 1,094 165,107 159,750 - - 167,004 160,844

Comparative amounts have been adjusted to be consistent with the current period’s presentation.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

16. Fair value of financial assets and financial liabilities (continued)

The following table sets out ANZBGL New Zealand’s basis of estimating the fair values of financial assets and liabilities carried at amortised cost where the carrying value is not typically a reasonable approximation of fair value.

Financial asset and liability	Fair value approach
Net loans and advances to banks	Discounted cash flows using prevailing market rates for loans with similar credit quality.
Net loans and advances to customers	Present value of future cash flows, discounted using a curve that incorporates changes in wholesale
	market rates, ANZBGL New Zealand’s cost of wholesale funding and the customer margin, as
	appropriate.
Deposit liability without a specified maturity or at	The amount payable on demand at the reporting date. We do not adjust the fair value for any value
call	we expect ANZBGL New Zealand to derive from retaining the deposit for a future period.
Interest bearing fixed maturity deposits and	Market borrowing rates of interest for debt with a similar maturity are used to discount contractual
other borrowings and acceptances with quoted	cash flows to derive the fair value.
market rates
Debt issuances	Calculated based on quoted market prices or observable inputs as applicable. If quoted market
	prices are not available, we use a discounted cash flow model using a yield curve appropriate for the
	remaining term to maturity of the debt instrument. The fair value reflects adjustments to credit
	spreads applicable to ANZBGL New Zealand for that instrument.

==> picture [502 x 31] intentionally omitted <==

A significant portion of financial instruments are carried on the Balance Sheet at fair value. ANZBGL New Zealand therefore regularly evaluates the key valuation assumptions used in the determination of the fair valuation of financial instruments incorporated within the financial statements, as this can involve a high degree of judgement and estimation in determining the carrying values at the balance sheet date.

In determining the fair valuation of financial instruments, ANZBGL New Zealand has considered the impact of related economic and market conditions on fair value measurement assumptions and the appropriateness of valuation inputs in these estimates, notably valuation adjustments, as well as the impact of these matters on the classification of financial instruments in the fair value hierarchy.

Most of the valuation models ANZBGL New Zealand uses employ only observable market data as inputs. For certain financial instruments, we may use data that is not readily observable in current markets. If we use unobservable market data, then we need to exercise more judgement to determine fair value depending on the significance of the unobservable input to the overall valuation. Generally, we derive unobservable inputs from other relevant market data and compare them to observed transaction prices where available. When establishing the fair value of a financial instrument using a valuation technique, ANZBGL New Zealand also considers any required valuation adjustments in determining the fair value. We may apply adjustments (such as credit valuation adjustments and funding valuation adjustments – refer to Note 9 Derivative financial instruments) to reflect ANZBGL New Zealand’s assessment of factors that market participants would consider in determining fair value of a particular financial instrument.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

17. Offsetting

We offset financial assets and financial liabilities in the balance sheet (in accordance with NZ IAS 32 Financial Instruments: Presentation ) when there is:

a current legally enforceable right to set off the recognised amounts in all circumstances; and
an intention to settle the asset and liability on a net basis, or to realise the asset and settle the liability simultaneously.

The following table identifies financial assets and financial liabilities which have not been offset but are subject to enforceable master netting agreements (or similar arrangements) and the related amounts not offset in the Balance Sheet. We have not taken into account the effect of over collateralisation.

			Amount subject to master netting agreement or similar	Amount subject to master netting agreement or similar	Amount subject to master netting agreement or similar	Amount subject to master netting agreement or similar	Amount subject to master netting agreement or similar
		Amounts not
	Total amounts	subject to			Financial
	recognised	master netting			collateral
	in the	agreement or		Financial	(received)/
	Balance Sheet	similar	Total	instruments5	pledged5	Net amount
As at 30 September 2025	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m		NZ$m
Derivative financial assets1	11,446	(1,526)	9,920	(7,975)	(717)		1,228
Reverse repurchase agreements2
- at amortised cost	1,361	-	1,361	-	(1,361)		-
- at FVTPL	1,626	-	1,626	-	(1,626)		-
Total financial assets	14,433	(1,526)	12,907	(7,975)	(3,704)		1,228
Derivative financial liabilities1	(10,198)	1,035	(9,163)	7,975	434		(754)
Repurchase agreements3
- at amortised cost	(1,165)	-	(1,165)	-	1,165		-
- at FVTPL	(3,355)	-	(3,355)	-	3,355		-
Total financial liabilities	(14,718)	1,035	(13,683)	7,975	4,954		(754)
As at 30 September 2024
Derivative financial assets1	10,173	(1,596)	8,577	(8,256)	(72)		249
Reverse repurchase agreements2,4
- at amortised cost	718	-	718	-	(718)		-
- at FVTPL	1,044	-	1,044	-	(1,044)		-
Total financial assets	11,935	(1,596)	10,339	(8,256)	(1,834)		249
Derivative financial liabilities1	(11,150)	1,876	(9,274)	8,256	332		(686)
Repurchase agreements3,4
- at amortised cost	(2,728)	-	(2,728)	-	2,728		-
- at FVTPL	(1,022)	-	(1,022)	-	1,022		-
Total financial liabilities	(14,900)	1,876	(13,024)	8,256	4,082		(686)

Derivative assets and liabilities recognised in the Balance Sheet reflect the impact of certain central clearing collateral arrangements, whereby collateral that qualifies as legal settlement has reduced the carrying value of those associated derivative balances.
Reverse repurchase agreements:
with less than 90 days to maturity are presented in the Balance Sheet within Cash and cash equivalents; or
with 90 days or more to maturity are presented in the Balance Sheet within Net loans and advances.
Repurchase agreements are presented on the Balance Sheet within Deposits and other borrowings.
Comparative amounts have been adjusted to be consistent with the current period’s presentation.
The amount of financial instruments and financial collateral disclosed is limited to the net balance sheet exposure of the relevant financial assets or liabilities, and any over-collateralisation is excluded from the tables.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

18. Goodwill and other intangible assets

18. Goodwill and other intangible assets
	2025	2024
	NZ$m	NZ$m
Goodwill	3,006	3,006
Software	27	19
Management rights	67	69
Goodwill and other intangible assets	3,100	3,094

Goodwill and other intangible assets allocated to cash-generating units (CGUs)

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

Goodwill and funds management rights are allocated to CGUs as follows:
Cash generating unit	Goodwill Management rights
	2025 2024 2025 2024 NZ$m NZ$m NZ$m NZ$m
Personal Funds Management	980 980 - - 62 62 67 69
Personal segment Business & Agri Institutional	1,042 1,042 67 69 695 695 - - 1,269 1,269 - -
Total	3,006 3,006 67 69

Goodwill was assessed for indicators of impairment as at 30 September 2025, taking into account the results of the February 2025 impairment test and associated sensitivity and scenario analysis performed and the forecast impact of recent economic events. There were no indicators of impairment therefore, in accordance with NZ IAS 36 Impairment of Assets , no further impairment test was required.

The following information is for the annual goodwill impairment test, and reflects the CGUs and goodwill allocations as at 28 February 2025.

Annual goodwill impairment test

The annual impairment test is performed as at the end of February each year. Goodwill is considered to be impaired if the carrying amount of the relevant CGU exceeds its recoverable amount. The recoverable amount of a CGU is the higher of its fair value less costs of disposal (FVLCOD) and its value-in-use (VIU). We use a VIU approach to estimate the recoverable amount of the CGU to which each goodwill component is allocated. Based on this assessment no impairment was identified for any CGU, and therefore a FVLCOD calculation was not required.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

18. Goodwill and other intangible assets (continued)

Value-in-use

These calculations use cash flow projections based on a number of financial budgets within each CGU covering an initial forecast period. These projections also incorporate economic assumptions including GDP, inflation, unemployment, residential and commercial property prices, and the implementation of RBNZ’s increased capital requirements. Cash flows beyond the forecast period are extrapolated using the terminal growth rate. These cash flow projections are discounted using a discount rate derived using a capital asset pricing model.

Future changes in the assumptions upon which the calculation is based may materially impact this assessment, resulting in the potential impairment of part or all of the goodwill balances.

	Values applied in 28 February 2025 impairment test
Forecast period and projections	To 30 September 2028 – a forecast period was used to cover the implementation of RBNZ’s increased
	capital requirements over the transition period ending on 1 July 2028.
Revenue growth over forecast	Comprises impacts of net interest margin and volume growth, arising from planned responses to known
period	regulatory and economic forecasts. Average annual forecast revenue growth rates are shown below.
Credit impairment over forecast	Varies by CGU, based on ECL modelling for 2025 and 2026, before returning to long run experience levels for
period	2027 to 2028. Long run experience levels are based on ANZBGL New Zealand’s bad debts written off, net of
	recoveries, since 2004 of 0.13% of gross loans and advances. Credit impairment for each CGU as a
	percentage of forecast gross loans and advances for 2027 to 2028 is shown below.
Terminal growth rate	2.0% - based on 2026 forecast inflation from RBNZ’s February 2025 Monetary Policy Statement.
Discount rate	Post tax: 11.1% (February 2024: 11.7%).
	The main variables in the calculation of the discount rate used are the risk free rate, beta and the market risk
	premium. The risk-free rate was the average traded 10-year New Zealand government bond yield as at 28
	February 2025 of 4.6%. The market risk premium was estimated using observed historic rates of return for
	the New Zealand stock exchange and 10-year government bonds. Beta was consistent with observable
	measures applied in the regional banking sector.

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

Cash generating unit	Revenue growth Credit impairment Pre-tax discount rate
	28 Feb 25 29 Feb 24 28 Feb 25 29 Feb 24 28 Feb 25 29 Feb 24
Personal Funds Management Business & Agri Institutional	3.6% 4.6% 0.02% 0.04% 29.0% 25.3% 1.4% 4.4% n/a n/a 26.5% 23.5% 2.4% 2.8% 0.12% 0.11% 29.8% 25.4% 1.6% 1.8% 0.05% 0.12% 29.4% 25.5%

We performed stress tests for key sensitivities in each CGU. For Institutional, a 140 basis point decrease in the average annual growth over the forecast period to 0.2% would be required to reduce the CGU's recoverable amount to nil. A change, considered to be reasonably possible by management, in key assumptions would not cause the carrying amounts of any CGU to exceed its recoverable amount.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

18. Goodwill and other intangible assets (continued)

==> picture [541 x 457] intentionally omitted <==

----- Start of picture text -----

The table below details how we recognise and measure different intangible assets:
Goodwill Software Other Intangibles
Definition Excess amount ANZBGL New Purchased software owned by ANZBGL Management fee rights arising
Zealand has paid in acquiring New Zealand is capitalised. from acquisition of funds
a business over the fair value Internal and external costs incurred in management business.
of the identifiable assets and
building software and computer systems
liabilities acquired.
costing greater than NZ$20 million are
capitalised as assets. Those less than
NZ$20 million are expensed in the year in
which the costs are incurred.
Costs incurred in planning or evaluating
software proposals or in maintaining
systems after implementation are
not capitalised.
Carrying value Cost less any accumulated Initially, measured at cost or if acquired in a Initially, measured at fair value at
impairment losses. business combination at the acquisition acquisition.
date, fair value.
Allocated to the CGU to which Subsequently, carried at cost less
the acquisition relates. Subsequently, carried at cost less accumulated impairment losses.
accumulated amortisation and impairment
losses.
Useful life Indefinite. Except for major core infrastructure, Management fee rights with an
Goodwill is reviewed for amortised over periods between indefinite life are reviewed for
2-5 years; however major core infrastructure impairment at least annually or
impairment at least annually or
when there is an indication of may be amortised over 7 years subject to when there is an indication of
approval by the Audit Committee. impairment.
impairment.
Purchased software is amortised over 2
years unless it is considered integral to other
assets with a longer useful life.
Amortisation Not applicable. Straight-line method. Not applicable.
method
----- End of picture text -----

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

18. Goodwill and other intangible assets (continued)

==> picture [505 x 31] intentionally omitted <==

Management judgement is used to assess the recoverable value of goodwill and other intangible assets, and the useful economic life of an asset, or whether an asset has an indefinite life. We reassess the recoverability of the carrying value at each reporting date.

Goodwill

A number of key judgements are required in the determination of whether or not a goodwill balance is impaired including:

the level at which goodwill is allocated – consistent with prior periods the CGUs to which goodwill is allocated are ANZBGL New Zealand’s revenue generating segments that benefit from relevant historical business combinations generating goodwill.
determination of the carrying amount of each CGU which includes an allocation, on a reasonable and consistent basis, of corporate assets and liabilities that are not directly attributable to the CGUs to which goodwill is allocated.
assessment of the recoverable amount of each CGU used to determine whether the carrying amount of goodwill is supported and is based on judgements including the selection of the model and key assumptions used to calculate the recoverable amount.

Software and other intangible assets

At each reporting date, software and other intangible assets are assessed for indicators of impairment and, where such indicators are identified, an impairment test is performed. In the event that an asset’s carrying amount is determined to be greater than its recoverable amount, the carrying amount of the asset is written down immediately. Those assets not yet ready for use are tested for impairment annually.

In addition, the expected useful lives of intangible assets are assessed at each reporting date. The assessment requires management judgement, and in relation to our software assets, a number of factors can influence the expected useful lives. These factors include changes to business strategy, significant divestments and the pace of technological change.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

19. Other provisions

19. Other provisions
	2025	2024
	NZ$m	NZ$m
ECL allowance on undrawn and contingent facilities1	134	136
Customer remediation	39	24
Restructuring costs	15	8
Leasehold make good	21	22
Other	16	22
Total other provisions	225	212

Refer to Note 12 Allowance for expected credit losses for movement analysis.

	Customer	Restructuring	Leasehold
	remediation	costs	make good	Other
	NZ$m	NZ$m	NZ$m	NZ$m
Balance at 1 October 2024	24	8	22	22
New and increased provisions made during the year	27	15	1	5
Provisions used during the year	(12)	(8)	(1)	(7)
Unused amounts reversed duringtheyear	-	-	(1)	(4)
Balance at 30 September 2025	39	15	21	16

Customer remediation

Customer remediation includes provisions for expected refunds to customers and other counterparties, and related customer, counterparty and regulatory claims, penalties and litigation costs and outcomes.

Restructuring costs

Provisions for restructuring costs arise from activities related to material changes in the scope of business undertaken by ANZBGL New Zealand or the manner in which that business is undertaken and include employee termination benefits. Costs relating to on-going activities are not provided for and are expensed as incurred.

Leasehold make good

Provisions associated with leased premises where, at the end of a lease, ANZBGL New Zealand is required to remove any fixtures and fittings installed in the leased property. This obligation arises immediately upon installation. Estimated make good costs are added to the right of use asset (within premises and equipment) upon installation and amortised over the lease term.

Other

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

==> picture [505 x 31] intentionally omitted <==

ANZBGL New Zealand recognises provisions when there is a present obligation arising from a past event, an outflow of economic resources is probable, and the amount of the provision can be measured reliably.

The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the timing and amount of the obligation. Where a provision is measured using the estimated cash flows required to settle the present obligation, its carrying amount is the present value of those cash flows.

==> picture [506 x 32] intentionally omitted <==

ANZBGL New Zealand holds provisions for various obligations including customer remediation, restructuring costs, leasehold make good and litigation related claims. These provisions involve judgements regarding the timing and outcome of future events, including estimates of expenditure required to satisfy such obligations. Where relevant, expert legal advice has been obtained and, in light of such advice, provisions and/or disclosures as deemed appropriate have been made.

In relation to customer remediation, determining the amount of the provisions, which represent management’s best estimate of the cost of settling the identified matters, requires the exercise of significant judgement. It will often be necessary to form a view on a number of different assumptions, including the number of impacted customers, the average refund per customer, and the implications of regulatory exposures and customer claims having regard to their specific facts and circumstances. There is a heightened level of estimation uncertainty where the customer remediation provision relates to a legal proceeding or matter. The appropriateness of the underlying assumptions is reviewed on a regular basis against actual experience and other relevant evidence including expert legal advice, and adjustments are made to the provisions where appropriate.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

20. Shareholders' equity

Shareholders’ equity

Shareholders’ equity
	2025	2024
	NZ$m	NZ$m
Share capital and initial head office account	14,555	14,555
Reserves
FVOCI reserve	(11)	(28)
Cash flow hedge reserve	140	52
Total reserves	129	24
Retained earnings	2,009	1,123
Equity attributable to the shareholders of the Ultimate Parent Bank	16,693	15,702
Non-controlling interests	825	825
Total shareholders' equity	17,518	16,527

Share capital

The table below details the movement in shares and share capital for the period.

Share capital The table below details the movement in shares and share capital for the period.
	2025		2024
	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 redeemablepreference shares	11,527,618,950	13,094	11,527,618,950	13,094
Subtotal	11,905,774,062	14,544	11,905,774,062	14,544
NZ Branch initial head office account	-	11	-	11
Total share capital	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 years ended 30 September 2025 and 30 September 2024.

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	Equity attributable to	Equity attributable to	Dividend paid to	Dividend paid to
	non-controlling interest		non-controlling interest		non-controlling	interests
	2025	2024	2025	2024	2025	2024
	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
Perpetualpreference shares	43	35	825	825	43	35
Total	43	35	825	825	43	35

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.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

20. Shareholders' equity (continued)

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	7.60% per annum until 19 March 2030 (after which it
	changes to a floating rate equal to the New Zealand 3-	changes to a floating rate equal to the New Zealand 3-
	month bank bill rate plus 3.25%), multiplied by one	month bank bill rate plus 3.25%), multiplied by one
	minus the New Zealand company tax rate (where the	minus the New Zealand company tax rate (where the
	PPS dividend is fully imputed).	PPS dividend is fully imputed).

As at 30 September 2025, the PPS carried a BBB+ credit rating from S&P Global Ratings.

The Bank may, at its option, redeem a class of PPS on an optional redemption date (being each scheduled quarterly dividend payment date from and including the first optional redemption date), or at any time following the occurrence of a tax event or regulatory event, subject to prior written approval of RBNZ and certain other conditions being met.

==> picture [541 x 523] intentionally omitted <==

----- Start of picture text -----

Ordinary shares Ordinary shares have no par value. They entitle holders to receive dividends, or proceeds available
on winding up of ANZ Holdings (New Zealand) Limited, in proportion to the number of fully paid
ordinary shares held. They are recognised at the amount paid per ordinary share net of directly
attributable costs. Every holder of fully paid ordinary shares present at a meeting of ANZ Holdings
(New Zealand) Limited in person, or by proxy, is entitled to:
• on a show of hands, one vote; and
• on a poll, one vote, for each share held.
Redeemable preference shares RPS do not carry any voting rights. They are wholly classified as equity instruments as there is no
contractual obligation for ANZ Holdings (New Zealand) Limited to either deliver cash or another
financial instrument or to exchange financial instruments on a potentially unfavourable basis.
In the event of liquidation of ANZ Holdings (New Zealand) Limited, holders of RPS are entitled to
available subscribed capital per share, pari passu with all holders of existing RPS but in priority to all
holders of ordinary shares. They have no entitlement to participate in further distribution of profits or
assets.
Reserves:
Cash flow hedge reserve Includes fair value gains and losses associated with the effective portion of designated cash flow
hedging instruments together with any tax effect.
FVOCI reserve Includes changes in the fair value of certain debt securities and equity securities included within
Investment Securities together with any tax effect.
In respect of debt securities classified as measured at FVOCI, the FVOCI reserve records
accumulated changes in fair value arising subsequent to initial recognition, except for those relating
to allowance for ECL, interest income and foreign currency exchange gains and losses which are
recognised in profit or loss. As debt securities at FVOCI are recorded at fair value, the balance of
the FVOCI reserve is net of the ECL allowance associated with such assets. When a debt security
measured at FVOCI is derecognised, the cumulative gain or loss recognised in the FVOCI reserve in
respect of that security is reclassified to profit or loss and presented in Other operating income.
In respect of the equity securities classified as measured at FVOCI, the FVOCI reserve records
accumulated changes in fair value arising subsequent to initial recognition (including any related
foreign exchange gains or losses). When an equity security measured at FVOCI is derecognised,
the cumulative gain or loss recognised in the FVOCI reserve in respect of that security is not
recycled to profit or loss.
Non-controlling interests Share in the net assets of controlled entities attributable to equity interests which ANZBGL New
Zealand does not own directly or indirectly. The equity interest comprises PPS issued by the Bank.
PPS do not carry any voting rights. They are wholly classified as equity instruments as there is no
contractual obligation for the Bank to either deliver cash or another financial instrument or to
exchange financial instruments on a potentially unfavourable basis.
In the event of liquidation, holders of PPS are entitled to available subscribed capital per share, pari
passu with other equally ranking subordinated debt issued by the Bank but in priority to all holders
of ordinary shares issued by the Bank. They have no entitlement to participate in further distribution
of profits or assets.
----- End of picture text -----

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

21. Capital management

Capital management strategy

ANZBGL New Zealand’s core capital objectives are to:

protect the interests of depositors, creditors and shareholders;
ensure the safety and soundness of ANZBGL New Zealand’s capital position; and
ensure that the capital base supports ANZBGL New Zealand’s risk appetite, and strategic business objectives, in an efficient and effective manner.

The Bank has regulatory capital requirements and holds, and manages, most of the Banking Group’s capital position. The Bank’s Board holds ultimate responsibility for ensuring that capital adequacy of the Banking Group is maintained. This includes: setting, monitoring and obtaining assurance for the Banking Group’s Internal Capital Adequacy Assessment Process (ICAAP) policy and framework; standardised risk definitions for all material risks; materiality thresholds; capital adequacy targets; internal risk capital principles; and risk appetite.

The Banking Group has minimum and trigger levels for capital that ensure sufficient capital is maintained to:

meet minimum prudential requirements imposed by the Bank’s regulators;
ensure consistency with the Banking Group’s overall risk profile and financial positions, taking into account its strategic focus and business plan; and
support the internal risk capital requirements of the business.

ALCO is responsible for developing, implementing and maintaining the Banking Group's ICAAP framework, including ongoing monitoring, reporting and compliance. The Banking Group’s ICAAP is subject to independent and periodic review.

Regulatory environment

The Ultimate Parent Bank is a registered bank in New Zealand, and conducts business in New Zealand through the NZ Branch. While RBNZ requires the Ultimate Parent Bank to comply with the minimum capital adequacy requirements as administered by APRA, there are no regulatory capital requirements that apply specifically to the NZ Branch or ANZBGL New Zealand.

Managed capital

The Banking Group is subject to its own regulatory capital requirements as administered by RBNZ. The following table provides details of the capital of ANZBGL New Zealand which is managed outside the Banking Group.

ANZBGL New Zealand which is managed outside the Banking Group.
	2025	2024
	NZ$m	NZ$m
ANZBGL New Zealand shareholders' equity	17,518	16,527
Subordinated debt issued by ANZ Holdings (New Zealand) Limited used to purchase PPS issued by the Bank	905	864
Borrowings from the Immediate Parent Company used to purchase ordinary shares issued by the Bank	1,766	1,766
less: Banking Group shareholders' equity	(19,898)	(18,810)
Capital of ANZBGL New Zealand managed outside the BankingGroup	291	347
Total assets of ANZBGL New Zealand held outside the Banking Group	281	298
Ratio	103.6%	116.4%

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

22. Controlled entities

The following table lists the subsidiaries of ANZBGL New Zealand. All subsidiaries are 100% owned and incorporated in New Zealand unless stated otherwise.

otherwise.
	Nature of business
Australia and New Zealand Banking Group Limited (New Zealand Branch)2,3	Registered bank
ANZ Holdings (New Zealand) Limited3	Holding company
ANZ Bank New Zealand Limited	Registered bank
ANZ Custodial Services New Zealand Limited	Custodian and nominee
ANZ Investment Services (New Zealand) Limited	Funds management
ANZ National Staff Superannuation Limited	Staff superannuation scheme trustee
ANZ New Zealand (Int'l) Limited	Finance
ANZ New Zealand Investments Holdings Limited	Holding company
ANZ New Zealand Investments Limited	Funds management
OneAnswer Nominees Limited	Wrap services provider
ANZNZ Covered Bond Trust1	Securitisation entity
Arawata Assets Limited	Property
Endeavour Finance Limited	Investment
Kingfisher NZ Trust 2008-11	Securitisation entity
ANZ Nominees Pty Limited (New Zealand Branch)2,3	Nominee
Institutional Securitisation Services Limited (New Zealand Branch)2,3	Securitisation services

ANZBGL New Zealand does not own ANZNZ Covered Bond Trust and Kingfisher NZ Trust 2008-1. Control exists as ANZBGL New Zealand retains substantially all the risks and rewards of the operations. Details of ANZBGL New Zealand’s interest in consolidated structured entities is included in Note 23 Structured entities.

Incorporated in Australia and registered in New Zealand as an Overseas ASIC Company.

These companies are included in the Relevant Members of ANZBGL New Zealand referred to in the Directors’ and New Zealand Chief Executive Officer’s Statement on page 90.

Changes in controlled entities

ANZ New Zealand Investments Nominees Limited amalgamated with OneAnswer Nominees Limited on 31 August 2025.

ANZBGL New Zealand’s subsidiaries are those entities it controls through:

being exposed to, or having rights to, variable returns from the entity; and
being able to affect those returns through its power over the entity.

ANZBGL New Zealand assesses whether it has power over those entities by examining ANZBGL New Zealand’s existing rights to direct the relevant activities of the entity.

If ANZBGL New Zealand sells or acquires subsidiaries during the year, it includes their operating results in ANZBGL New Zealand results to the date of disposal or from the date of acquisition. When ANZBGL New Zealand’s control ceases, it derecognises the assets and liabilities of the subsidiary, any related non-controlling interest and other components of equity.

If ANZBGL New Zealand’s ownership interest in a subsidiary changes in a way that does not result in a loss of control, then ANZBGL New Zealand accounts for that as a transaction with equity holders in their capacity as equity holders.

All transactions between ANZBGL New Zealand entities are eliminated on consolidation.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

23. Structured entities

A Structured Entity (SE) is an entity that has been designed such that voting or similar rights are not the dominant factor in determining who controls the entity. SEs are generally established with restrictions on their ongoing activities in order to achieve narrow and well defined objectives.

SEs are classified as subsidiaries and consolidated when control exists. If ANZBGL New Zealand does not control a SE, then it is not consolidated. This note provides information on both consolidated and unconsolidated SEs.

ANZBGL New Zealand’s involvement with SEs is as follows:

Type	Details
Securitisation	ANZBGL New Zealand uses the Kingfisher NZ Trust 2008-1 (the Kingfisher Trust) to securitise residential mortgages
	that it has originated, in order to diversify sources of funding for liquidity management. The Kingfisher Trust is an
	internal securitisation (bankruptcy remote) vehicle created for the purpose of structuring assets that are eligible for
	repurchase under agreements with RBNZ (these are known as ‘Repo eligible’).
	ANZBGL New Zealand is exposed to variable returns from its involvement with the Kingfisher Trust and has the ability
	to affect those returns through its power over the Kingfisher Trust’s activities. The Kingfisher Trust is therefore
	consolidated.
	As at 30 September 2025 and 30 September 2024, ANZBGL New Zealand had entered into repurchase agreements
	with RBNZ in relation to the TLF and FLP.
	Additionally, ANZBGL New Zealand may acquire interests in securitisation vehicles set up by third parties through
	providing lending facilities to, or holding securities issued by, such entities.
ANZNZ Covered Bond Trust	Substantially all of the assets of the Covered Bond Trust are made up of certain housing loans and related securities
(the Covered Bond Trust)	originated by the Bank which are security for the guarantee by ANZNZ Covered Bond Trust Limited as trustee of the
	Covered Bond Trust of issuances of covered bonds by the Bank, or its wholly owned subsidiary ANZ New Zealand
	(Int’l) Limited, from time to time. The assets of the Covered Bond Trust are not available to creditors of the Bank,
	although the Bank (or its liquidator or statutory manager) may have a claim against the residual assets of the Covered
	Bond Trust (if any) after all priority ranking creditors of the Covered Bond Trust have been satisfied.
	ANZBGL New Zealand is exposed to variable returns from its involvement with the Covered Bond Trust and has the
	ability to affect those returns through its power over the Covered Bond Trust’s activities. The Covered Bond Trust is
	therefore consolidated.
Structured finance	ANZBGL New Zealand is involved with SEs established:
arrangements	• in connection with structured lending transactions to facilitate debt syndication and/or to ring-fence collateral; and
	• to own assets that are leased to customers in structured leasing transactions.
	ANZBGL New Zealand may provide risk management products (derivatives) to the SE.
	In all instances, ANZBGL New Zealand does not control these SEs. Further, ANZBGL New Zealand’s involvement does
	not establish more than a passive interest in decisions about the relevant activities of the SE, and accordingly we do
	not consider that interest disclosable.
Funds management activities	ANZBGL New Zealand is the scheme manager for a number of Managed Investment Schemes (MIS). These MIS
	include the ANZ and OneAnswer branded KiwiSaver, and retail schemes. These MIS are financed through the issue of
	units to investors and ANZBGL New Zealand considers them to be SEs. ANZBGL New Zealand’s interests in these MIS
	are limited to receiving fees for services or providing risk management products (derivatives). These interests do not
	create significant exposures to the MIS that would allow ANZBGL New Zealand to control the funds. Therefore, these
	MIS are not consolidated.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

23. Structured entities (continued)

Consolidated structured entities

Financial or other support provided to consolidated SEs

The Bank provides lending facilities, derivatives and commitments to the Kingfisher Trust and the Covered Bond Trust and/or holds debt instruments that they have issued. The Bank did not provide any non-contractual support to consolidated SEs during the year (2024: nil).

Unconsolidated structured entities

ANZBGL New Zealand’s interest in unconsolidated SEs

An ‘interest’ in an unconsolidated SE is any form of contractual or non-contractual involvement with a SE that exposes ANZBGL New Zealand to variability of returns from the performance of that SE. These interests include, but are not limited to: holdings of debt or equity securities; derivatives that pass on risks specific to the performance of the SE; lending; loan commitments; financial guarantees; and fees from funds management activities.

For the purpose of disclosing interests in unconsolidated SEs:

no disclosure is made if ANZBGL New Zealand’s involvement is not more than a passive interest - for example: when ANZBGL New Zealand’s involvement constitutes a typical customer-supplier relationship. On this basis, exposures to unconsolidated SEs that arise from lending, trading and investing activities are not considered disclosable interests - unless the design of the structured entity allows ANZBGL New Zealand to participate in decisions about the relevant activities (being those that significantly affect the entity’s returns).
‘interests’ do not include derivatives intended to expose ANZBGL New Zealand to market risk (rather than performance risk specific to the SE) or derivatives through which ANZBGL New Zealand creates, rather than absorbs, variability of the unconsolidated SE (such as purchase of credit protection under a credit default swap).

ANZBGL New Zealand earned funds management fees from its MIS of NZ$207 million (2024: NZ$199 million) during the year. As at 30 September 2025, ANZBGL New Zealand had total funds under management of NZ$41.9 billion (2024: NZ$39.7 billion) of which NZ$26.8 billion (2024: NZ$26.0 billion) related to its MIS, with the largest individual fund being approximately NZ$5.4 billion (2024: NZ$5.2 billion).

ANZBGL New Zealand did not provide any non-contractual support to unconsolidated SEs during the year (2024: nil): nor does it have any current intention to provide financial or other support to unconsolidated SEs.

24. Assets pledged, collateral accepted, and financial assets transferred

Amounts presented as collateral paid and received in the Balance Sheet relate to derivative liabilities and derivative assets respectively. The terms and conditions of those collateral agreements are included in the standard CSA that forms part of the ISDA Master Agreement under which most of ANZBGL New Zealand derivatives are executed. The following disclosures exclude these balances.

In the normal course of business, ANZBGL New Zealand enters into transactions where it pledges or transfers financial assets directly to third parties. These transfers may result in ANZBGL New Zealand fully, or partially, derecognising those financial assets - depending on ANZBGL New Zealand’s exposure to the risks and rewards or control over the transferred assets. If ANZBGL New Zealand retains substantially all of the risks and rewards of a transferred asset, the transfer does not qualify for derecognition and the asset remains on ANZBGL New Zealand’s balance sheet in its entirety, with a corresponding liability recognised for proceeds from the transfer.

Covered bonds

ANZBGL New Zealand operates a covered bond programme to raise funding. Refer to Note 14 Debt issuances and Note 23 Structured entities for further details. The covered bonds issued externally are included within debt issuances.

Repurchase agreements

When ANZBGL New Zealand sells securities subject to repurchase agreements under which we retain substantially all the risks and rewards of ownership, then those assets do not qualify for derecognition. An associated liability is recognised for the consideration received from the counterparty.

The table below sets out the balance of assets transferred that do not qualify for derecognition, along with the associated liabilities:

	Covered bonds	Covered bonds	Repurchase	agreements
	2025	2024	2025	2024
	NZ$m	NZ$m	NZ$m	NZ$m
Current carrying amount of assets transferred	9,995	10,563	4,947	4,327
Carrying amount of associated liabilities	2,510	2,156	4,520	3,750

Collateral accepted as security for assets

ANZBGL New Zealand has received collateral associated with various financial transactions. Under certain arrangements ANZBGL New Zealand has the right to sell, or to repledge, the collateral received. These arrangements are governed by standard industry agreements.

The fair value of collateral we have received and that which we have sold or repledged is as follows:

The fair value of collateral we have received and that which we have sold or repledged is as follows:
	2025	2024
	NZ$m	NZ$m
Fair value of assets which can be sold or repledged	2,631	1,707
Fair value of assets sold or repledged	1,789	697

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

25. Related party disclosures

Key management personnel and their related parties

Key management personnel (KMP) are defined as directors and those executives having authority and responsibility for planning, directing and controlling the activities of ANZBGL New Zealand. Executive roles included in KMP are the Bank’s CEO and all executives reporting directly to the Bank’s CEO, and the CEO – NZ Branch. KMP compensation included within total personnel expenses in Note 3 Operating expenses is as follows:

CEO – NZ Branch. KMP compensation included within total personnel expenses in Note 3 Operating expenses is as follows:
	2025	2024
Key management personnel compensation1	NZ$000	NZ$000
Salaries and short-term employee benefits	13,736	13,318
Post-employment benefits	612	363
Other long-term benefits2	77	76
Share-based payments	3,783	4,200
Total	18,208	17,957

Includes former disclosed KMPs until the end of their employment, and close family members of KMP employed by ANZBGL New Zealand.

Comprises long service leave accrued during the year.

1. Includes former disclosed KMPs until the end of their employment, and close family members of KMP employed by ANZBGL New Zealand. 2. Comprises long service leave accrued during the year.
	2025	2024
Transactions and balances with key management personnel and their related parties1	NZ$m	NZ$m
Secured loans and advances	12	12
Credit related commitments (undrawn loan facilities)	3	4
Interest income	1	1
Customer deposits2	8	9
Payables and other liabilities (share-based payments liability)	3	4

Includes KMP, close family members of KMP and entities that are controlled or jointly controlled by KMP or their close family members, of ANZBGL New Zealand and its parent companies.
Includes holdings of units in the ANZ PIE Fund (a sponsored unconsolidated structured entity) which are invested solely in deposits of the Bank.

Loans made to KMP and their related parties are made in the ordinary course of business on normal commercial terms and conditions no more favourable than those given to other employees or customers, including the term of the loan, security required and the interest rate. No amounts have been written off or forgiven, or individually assessed allowances for expected credit losses raised in respect of these balances (2024: nil).

All other transactions with KMP and their related parties are made on terms and conditions no more favourable than those given to other employees or customers. These transactions generally involve the provision of financial and investment services. In addition to the amounts above:

Aggregate amounts for each of unsecured loans and advances, interest expense, fee income, debt issuances and collectively assessed credit impairment charge and allowance for expected credit losses were less than NZ$1 million for both years presented.
KMP and their related parties also hold units in other MIS managed by ANZBGL New Zealand. Transactions and balances in respect of these MIS holdings are not disclosed because those MIS are unconsolidated structured entities and not included in the financial statements of ANZBGL New Zealand.
Some KMP pay ANZBGL New Zealand for the use of carparks in premises owned or leased by ANZBGL New Zealand. These amounts were less than NZ$0.1 million (2024: less than NZ$0.1 million).

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

25. Related party disclosures (continued)

Transactions with other members of the ANZ Group and associates

ANZBGL New Zealand undertakes transactions with the Immediate Parent Company, the Ultimate Parent Bank, other members of the ANZ Group and associates.

These transactions principally consist of funding and hedging transactions, the provision of other financial and investment services, technology and process support, and compensation for share based payments made to ANZBGL New Zealand employees. These transactions are conducted on an arm’s length basis and on normal commercial terms.

arm’s length basis and on normal commercial terms.
	2025	2024
Transactions	NZ$m	NZ$m
Immediate Parent Company
Interest expense	131	86
Redeemable preference shares issued	-	3,500
Dividends paid	1,515	6,145
Ultimate Parent Bank and other ANZ Group subsidiaries
Interest income	12	9
Interest expense	131	154
Other operating income	12	11
Operating expenses	84	68
NZ Branch retained earnings repatriated	150	-
Associates
Operating expenses	3	3
	2025	2024
Outstanding balances	NZ$m	NZ$m
Ultimate Parent Bank and other ANZ Group subsidiaries
Cash and cash equivalents	443	117
Collateral paid	1	-
Derivative financial instruments	8,206	7,448
Other assets	55	160
Total due from relatedparties	8,705	7,725
Immediate Parent Company
Deposits and other borrowings	1,766	1,766
Payables and other liabilities	55	49
Ultimate Parent Bank and other ANZ Group subsidiaries
Settlement balances payable	21	69
Collateral received	775	-
Deposits and other borrowings	1,353	1,312
Derivative financial instruments	7,263	7,444
Payables and other liabilities	33	26
Debt issuances	-	2
Associates
Deposits and other borrowings	1	1
Total due to related parties	11,267	10,669

Balances due from / to other members of the ANZ Group and associates are unsecured. The Bank has provided guarantees and commitments to, and received guarantees from, these entities as follows:

received guarantees from, these entities as follows:
	2025	2024
	NZ$m	NZ$m
Financial guarantees provided by the Ultimate Parent Bank and other ANZ Group subsidiaries	166	249
Financial guarantees provided to the Ultimate Parent Bank and other ANZ Group subsidiaries	287	189
Undrawn facilities provided to associates	1	1

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Notes to the consolidated financial statements

26. Commitments and contingent liabilities

Credit related commitments and contingencies

Credit related commitments and contingencies
	2025	2024
	NZ$m	NZ$m
Contract amount of:
Undrawn facilities	26,964	25,759
Guarantees and letters of credit	1,427	1,232
Performance related contingencies	1,802	1,598
Total	30,193	28,589

Undrawn facilities

The majority of undrawn facilities are subject to customers maintaining specific credit and other requirements or conditions. Many of these facilities are expected to be only partially used, and others may never be used at all. As such, the total of the nominal principal amounts is not necessarily representative of future liquidity risks or future cash requirements. Based on the earliest date on which ANZBGL New Zealand may be required to pay, the full amount of undrawn facilities mature within 12 months.

Guarantees, letters of credit and performance related contingencies

Guarantees, letters of credit and performance related contingencies relate to transactions that ANZBGL New Zealand has entered into as principal.

Letters of credit involve ANZBGL New Zealand issuing letters of credit guaranteeing payment in favour of an exporter. They are secured against an underlying shipment of goods or backed by a confirmatory letter of credit from another bank.

Performance related contingencies are liabilities that oblige ANZBGL New Zealand to make payments to a third party if the customer fails to fulfil its nonmonetary obligations under the contract.

To reflect the risks associated with these transactions, we apply the same credit origination, portfolio management and collateral requirements that we apply to loans. The contract amount represents the maximum potential amount that we could lose if the counterparty fails to meet its financial obligations. As the facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements. Based on the earliest date on which ANZBGL New Zealand may be required to pay, the full amount of guarantees and letters of credit and performance related contingencies mature within 12 months.

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 (refer to Note 19 Other provisions) and/or disclosures as deemed appropriate have been made. In some instances we have not disclosed the estimated financial impact of the individual items either because it is not practicable to do so or because such disclosure may prejudice seriously the interests of 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.

ANZBGL New Zealand’s regulatory interactions can relate to a broad range of matters including, for example, 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. The 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. The class and the allegations made in the proceedings would potentially cover approximately 17,000 loan customers.

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. Lawyers for the plaintiffs have notified potential class members about the class action and a summary judgment hearing has been set down in the High Court in Auckland for March 2026.

In March 2025, the Government introduced a Bill that confirms the High Court has the power to reduce or extinguish potential consequences under section 99(1A) of the Credit Contracts and Consumer Finance Act 2003 from the date of its inception in 2015. Currently, it is proposed that the retrospective law change will not apply to the claim against the Bank.

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

Notes to the consolidated financial statements

27. Auditor fees

27. Auditor fees
	2025	2024
	NZ$000	NZ$000
KPMG1
Audit or review of the financial statements2	2,567	2,725
Audit or review related services:
- Assurance engagements3	29	132
- Agreed upon procedures engagements4	93	94
- Other non-assurance engagements5	124	120
Total audit or review related services	246	346
Other assurance services and other agreed upon procedures engagements6	468	792
Total fees relatingto ANZBGL New Zealand	3,281	3,863
Fees relating to unconsolidated SEs managed by ANZBGL New Zealand
Audit or review of the financial statements	1,058	821
Audit or review related services7	185	429
Other assurance services and other agreed upon procedures engagements6	241	-
Total fees relatingto unconsolidated SEs managed byANZBGL New Zealand	1,484	1,250
Total KPMG fees	4,765	5,113

Comparative amounts have been adjusted to be consistent with the current period’s presentation of auditor fees. 2.

Includes fees relating to the audit of the annual disclosure statements, review of the interim disclosure statements and the audit of the Branch’s subsidiaries’ annual financial statements. 3.

Includes fees relating to trust deed compliance, internal control reviews and other regulatory reporting assurance.

Includes fees relating to other SEs, registry reviews and other services. 5.

Includes fees relating to treasury funding programmes and offer document reviews. 6.

Includes assurance engagement fees relating to greenhouse gas statements, other sustainability reports, and regulatory reporting.

Includes assurance engagement fees relating to internal control and registry reviews.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Independent auditor’s report

Independent Auditor’s Report

To the directors of Australia and New Zealand Banking Group Limited

Report on the audit of the consolidated financial statements

Opinion

We have audited the accompanying consolidated financial statements of the New Zealand business of Australia and New Zealand Banking Group Limited (ANZBGL) and its subsidiaries (ANZBGL New Zealand) on pages 4 to 65 which comprise:

the consolidated balance sheet as at 30 September 2025;
the consolidated income statement, statements of comprehensive income, changes in equity and cash flows for the year then ended; and
notes, including material accounting policy information and other explanatory information.

In our opinion, the accompanying consolidated financial statements:

give a true and fair view of ANZBGL New Zealand’s financial position as at 30 September 2025 and its financial performance and cash flows for the year ended on that date; and
comply with New Zealand Generally Accepted Accounting Practice, which in this instance means New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) issued by the New Zealand Accounting Standards Board and International Financial Reporting Standards issued by the International Accounting Standards Board.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We are independent of ANZBGL New Zealand in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), as applicable to audits of financial statements of public interest entities. We have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report.

Our firm has provided services to ANZBGL New Zealand in relation to review 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.

Key Audit Matters

The Key Audit Matters we identified are:

Allowance for expected credit losses
Valuation of financial instruments
Information technology systems and controls
Carrying amount of goodwill

Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements in the current period. We summarise below those matters and our key audit procedures to address those matters in order that the directors as a body may better understand the process by which we arrived at our audit opinion.

Our procedures were undertaken in the context of and solely for the purpose of our audit opinion on the consolidated financial statements as a whole and we do not express discrete opinions on separate elements of the consolidated financial statements.

KPMG, a New Zealand partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Independent auditor’s report

Key Audit Matters (continued)

Allowance for expected credit losses ($802 million)

Refer to Note 12 of the consolidated financial statements.

The Key Audit Matter

Allowance for expected credit losses (ECL) is a key audit matter due to the significance of the loans and advances balance to the consolidated financial statements and the inherent complexity of ANZBGL New Zealand’s Expected Credit Loss models (ECL models) used to measure ECL allowances. These models are reliant on data and a number of estimates including impacts of multiple economic scenarios, and other assumptions such as defining a Significant Increase in Credit Risk (SICR).

NZ IFRS 9 requires ANZBGL New Zealand to measure ECL on a forward-looking basis reflecting a range of future economic conditions, of which GDP and unemployment levels are considered key assumptions. Post-model adjustments to the ECL results are also made by ANZBGL New Zealand to address known ECL model limitations or emerging trends in the loan portfolios. We exercise significant judgement in challenging both the economic scenarios used and the judgemental post-model adjustments that ANZBGL New Zealand applies to the ECL results.

ANZBGL New Zealand’s criteria selected to identify a SICR, such as a decrease in customer credit rating (CCR), are key areas of judgement within ANZBGL New Zealand’s ECL methodology as these criteria determine if a forward-looking 12 month or lifetime allowance is recorded.

How the matter was addressed in our audit

Our audit procedures for the allowance for ECL and disclosures included assessing ANZBGL New Zealand’s significant accounting policies against the requirements of the accounting standard. Credit risk and economic specialists were used in ECL audit procedures as a core part of our audit team. We tested key controls in relation to:

ANZBGL New Zealand’s ECL model governance and validation processes which involved assessment of model performance;
ANZBGL New Zealand’s assessment and approval of the forward-looking macro-economic assumptions and scenario weightings through challenge applied by ANZBGL New Zealand’s internal governance processes;
Reconciliation of the data used in the ECL calculation process to gross balances recorded within the general ledger as well as source systems;
Counterparty risk grading for wholesale loans (larger customer exposures are monitored individually), a key input into the SICR assumption. We tested the approval of new lending facilities against ANZBGL New Zealand’s lending policies, and controls over the monitoring of counterparty credit quality; and
IT system controls which record retail loans lending arrears, group exposures into delinquency buckets and recalculate individual allowances. We tested automated calculation and change management controls and evaluated the oversight of the portfolios, with a focus on controls over delinquency monitoring.

We tested relevant General Information Technology Controls over the key IT applications used by ANZBGL New Zealand in measuring ECL allowances, as detailed in the IT Systems and Controls key audit matter below.

In addition to controls testing, our procedures included:

Re-performing credit assessments for a sample of wholesale loans controlled by ANZBGL New Zealand’s specialist workout and recovery team, who assessed them as higher risk or impaired, and a sample of other loans, focusing on larger exposures assessed by ANZBGL New Zealand as showing signs of deterioration, or in areas of emerging risk (assessed against external market);
For each loan sampled, we challenged ANZBGL New Zealand’s CCR and Security Indicator, assessment of loan recoverability, valuation of security and the impact on the credit allowance. To do this, we reviewed the information on ANZBGL New Zealand’s loan file, understood the facts and circumstances of the case with the relationship manager, and performed our own assessment of recoverability;
Exercising our judgement, our procedures included using our understanding of relevant industries and the macro-economic environment, and comparing data and assumptions used by ANZBGL New Zealand in recoverability assessments to externally sourced evidence, such as commodity prices and external property sale information. Where relevant, we assessed the forecast timing of future cash flows in the context of underlying valuations and approved business plans and challenged key assumptions in the valuations;
Obtaining an understanding of ANZBGL New Zealand’s processes to determine ECL allowances, evaluating ANZBGL New Zealand’s ECL model methodologies against established market practices and criteria in the accounting standards;
Working with our credit risk specialists, we assessed the accuracy of ANZBGL New Zealand’s ECL model estimates by re-performing, for a sample of loans, the ECL allowance using our independently driven calculation tools and comparing this to the amount recorded by ANZBGL New Zealand;
Working with our economic specialists, we challenged ANZBGL New Zealand’s forward-looking macro-economic assumptions and scenarios incorporated in ANZBGL New Zealand’s ECL models. We compared ANZBGL New Zealand’s forecast GDP and unemployment rates, to relevant publicly available macro-economic information, and considered other known variables and information obtained through our other audit procedures to identify contradictory indicators;
Testing the implementation of ANZBGL New Zealand’s SICR methodology by re-performing the staging calculation for a sample of loans taking into consideration movements in the CCR from loan origination and comparing our expectation to actual staging applied on an individual account level in ANZBGL New Zealand’s ECL model; and
Assessing the accuracy of the data used in the ECL models by confirming a sample of data fields such as account balance and CCR to relevant source systems.

We also challenged key assumptions in the components of ANZBGL New Zealand’s post-model adjustments. This included:

Assessing the requirement for post-model adjustments considering ANZBGL New Zealand’s ECL model and data deficiencies identified by ANZBGL New Zealand’s ECL model validation processes;
Comparing underlying data used in concentration risk and economic cycle allowances to underlying loan portfolio characteristics of recent loss experience, current market conditions and specific risks inherent in ANZBGL New Zealand’s loan portfolios;
Assessing certain post-model adjustments identified against internal and external information; and
Assessing the completeness of post-model adjustments by checking the consistency of risks we identified in the portfolios against ANZBGL New Zealand’s assessment.

We assessed the appropriateness of ANZBGL New Zealand’s disclosures in the consolidated financial statements using our understanding obtained from our testing and against the requirements of NZ IFRS.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Independent auditor’s report

Key Audit Matters (continued)

Valuation of financial instruments

Fair value of Level 2 financial instruments in asset positions $17,290 million, in liability positions $17,675 million

Refer to Note 16 of the consolidated financial statements.

The Key Audit Matter

The fair value of ANZBGL New Zealand’s Level 2 financial instruments is determined by ANZBGL New Zealand through the application of valuation techniques which often involve the exercise of judgement and the use of assumption and estimates.

The valuation of Level 2 financial instruments held at fair value is a key audit matter due to the complexity associated with the valuation methodology and models of certain more complex Level 2 financial instruments including fair value adjustments (FVAs) leading to an increase in subjectivity and estimation uncertainty. Level 2 financial instruments represent 47% of ANZBGL New Zealand’s financial assets carried at fair value and 99% of ANZBGL New Zealand’s financial liabilities carried at fair value.

How the matter was addressed in our audit

Our audit procedures for the valuation of financial instruments held at fair value included:

Performing an assessment of the population of financial instruments held at fair value to identify portfolios that have a higher risk of misstatement arising from significant judgment over valuation either due to unobservable inputs or complex models.

We tested the design and operating effectiveness of key controls relating specifically to these financial instruments, including:

Independent Price Verification (IPV), including completeness of portfolios and valuation inputs subject to IPV;
Model validation at inception and periodically, including assessment of model limitation and assumptions;
Review and challenge of daily profit and loss by a control function;
Collateral management process, including review of margin reconciliations with clearing houses; and
Review and approval of FVAs, including exit price and portfolio level adjustments.

In relation to the valuation of Level 2 financial instruments, with the assistance of our valuation specialists:

Assessing the reasonableness of key inputs and assumptions using comparable data in the market and available alternatives;
Comparing ANZBGL New Zealand’s valuation methodology to industry practice and the criteria in the accounting standards; and
Independently revaluing a selection of financial instruments and FVAs. This involved sourcing independent inputs from comparable data in the market and available alternatives. We challenged and assessed any differences.

We assessed ANZBGL New Zealand’s consolidated financial statement disclosures, including key judgements and assumptions using our understanding obtained from our testing and against NZ IFRS.

Information technology (IT) systems and controls

The Key Audit Matter

As a major New Zealand bank, ANZBGL New Zealand’s businesses utilise a large number of complex, interdependent IT systems to process and record a high volume of transactions. Controls over access and changes to IT systems are critical to the recording of financial information and the preparation of financial statements which provides a true and fair view of ANZBGL New Zealand’s financial position and performance. The IT systems and controls, as they impact the financial recording and reporting of transactions, is a key audit matter and our audit approach could significantly differ depending on the effective operation of ANZBGL New Zealand’s IT controls.

How the matter was addressed in our audit

We tested the control environment for key IT applications used in processing significant transactions and recording balances in the general ledger. We also tested automated controls embedded within these systems which support the effective operation of technology-enabled business processes. Our IT specialists were used throughout the engagement as a core part of our audit team.

Our audit procedures included:

Assessing the governance and higher-level controls in place across the IT environment, including the approach to ANZBGL New Zealand policy design, review and awareness;
Design and operating effectiveness testing of controls across the User Access Management Lifecycle, including how users are on-boarded, reviewed, and removed on a timely basis from critical IT applications and supporting infrastructure. We also examined how privileged roles and functions are managed across each IT application and the supporting infrastructure;
Design and operating effectiveness testing of controls in place over change management, including how changes are initiated, documented, approved, tested and authorised prior to migration into the production environment of critical IT applications. We also assessed the appropriateness of users with access to make changes to IT applications across ANZBGL New Zealand;
Design and operating effectiveness testing of controls used by ANZBGL New Zealand’s technology teams to schedule system jobs and monitor system integrity;
Design and operating effectiveness testing of controls related to significant IT application programs per the ANZ Delivery Framework; and
Design and operating effectiveness testing of automated business process controls including those that enforce segregation of duties between conflicting roles within IT applications, configurations in place to perform calculations, mappings, and flagging of financial transactions, automated reconciliation controls (both between systems, and intra-system) and data integrity of critical system reporting used by us in our audit to select samples and analysis data used by management to generate financial reporting.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Independent auditor’s report

Key Audit Matters (continued)

Carrying amount of goodwill ($3,006 million)

Refer to Note 18 of the consolidated financial statements.

The Key Audit Matter

Carrying value of goodwill is a key audit matter due to a number of judgements required in the determination of the recoverable amount of goodwill, and because the carrying value of goodwill is financially significant at the reporting date.

ANZBGL New Zealand uses a value-in-use (VIU) approach to estimate the recoverable amount of each Cash Generating Unit (CGU) to which goodwill is allocated. The reasonableness of the recoverable amounts was assessed using an implied market-multiples approach.

The ongoing effects and uncertainties associated with the environment continue to increase the potential for impairment and our audit effort in this area remains elevated. There is increased judgement in forecasting cash flows and assumptions used in the discounted cash flow models and marketmultiples used in the reasonableness assessment. The risk is most pronounced for the Institutional CGU.

How the matter was addressed in our audit

We involved valuation specialists to supplement our senior team members in assessing this key audit matter.

Working with our valuation specialists, our procedures included:

In accordance with accounting standards, assessing the reasonableness of the amounts allocated to the CGUs to which ANZBGL New Zealand allocated goodwill;
Considering the appropriateness of the valuation method applied by ANZBGL New Zealand to perform their annual test for impairment against the requirements of the accounting standards;
Assessing the integrity of the VIU model used by ANZBGL New Zealand, including the accuracy of the underlying calculation formulae;
Assessing the accuracy of previous ANZBGL New Zealand forecasts to inform our evaluation of forecasts incorporated in the VIU model;
For each CGU, stress testing key VIU assumptions to consider reasonably possible alternatives;
For the Institutional CGU, assessing ANZBGL New Zealand’s key assumptions used in the VIU model, including discount rates, revenue growth rates, and terminal growth rates comparing to external observable metrics, historical experience, our knowledge of the markets and current market practice;
Comparing the forecast cash flows contained in the model to the revised Operational forecast, reflecting the current economic environment and the increased regulatory minimum capital requirements;
Assessing the reasonableness of ANZBGL New Zealand’s review for potential internal and external indicators of impairment. This review considered the period from the annual impairment test as at 28 February 2025 up to financial year end; and
Assessing the disclosures in the financial statements against the requirements of the accounting standards.

Other information

The Directors, on behalf of ANZBGL New Zealand, are responsible for the other information. The other information comprises ANZBGL New Zealand’s general disclosures in section B1 required to be included in ANZBGL New Zealand’s Disclosure Statement in accordance with schedule 2 of the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014, but does not include the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover any other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements our responsibility is to read the other information and in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Use of this independent auditor’s report

This independent auditor’s report is made solely to the directors of ANZBGL. Our audit work has been undertaken so that we might state to the directors those matters we are required to state to them in the independent auditor’s report and for no other purpose. 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 responsibility and deny all liability to anyone other than the directors for our audit work, this independent auditor’s report, or any of the opinions or conclusions we have formed.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Independent auditor’s report

Responsibilities of the Directors for the consolidated financial statements

Directors, on behalf of ANZBGL New Zealand, are responsible for:

the preparation and fair presentation of the consolidated financial statements in accordance with Clause 24 of the Order;
implementing necessary internal control to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error; and
assessing the ability of ANZBGL New Zealand to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objective is:

to obtain reasonable assurance about whether the consolidated financial statements prepared in accordance with Clause 24 of the Order as a whole are free from material misstatement, whether due to fraud or error; and
to issue an independent auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

A further description of our responsibilities for the audit of these consolidated financial statements is located at the External Reporting Board (XRB) website at:

https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/

This description forms part of our independent auditor’s report.

The engagement partner on the audit resulting in this independent auditor's report is Jamie Munro.

For and on behalf of:

==> picture [73 x 35] intentionally omitted <==

KPMG Auckland

7 November 2025

This page has been left blank intentionally

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered Bank Disclosures

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

==> picture [457 x 130] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Section|Order reference|Page|
|B1. General disclosures|Schedule 2|73|
|B2. Additional financial disclosures|Schedule 4|80|
|B3. Asset quality|Schedule 7|81|
|B4. Credit and market risk exposures and capital adequacy|Schedule 9|84|
|B5. Insurance business, securitisation, funds management, other fiduciary|
|Schedule 11|85|
|activities, and marketing and distribution of insurance products|
|B6. Risk management policies|Schedule 13|87|
|Directors’ and New Zealand Chief Executive Officer’s statement|90|
|Assurance reports|91|

----- End of picture text -----

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B1. General disclosures (unaudited)

Details of ultimate parent bank and ultimate non-bank holding company

The registered bank, which is also the ultimate parent bank, is Australia and New Zealand Banking Group Limited (Ultimate Parent Bank). The principal office and place of business outside New Zealand, and address for service of the Ultimate Parent Bank, is ANZ Centre, Melbourne, Level 9, 833 Collins Street, Docklands, Victoria 3008, Australia.

The ultimate non-bank holding company is ANZ Group Holdings Limited. The address for service is ANZ Centre, Melbourne, Level 9, 833 Collins Street, Docklands, Victoria 3008, Australia.

Ultimate Parent Bank enforceable undertaking with APRA and its relevance to the Bank

The Ultimate Parent Bank is the subject of an enforceable undertaking with APRA where it has committed to a comprehensive programme of activity to uplift its management of non-financial risk and improve its control environment. The Bank will also deliver this uplift, where relevant.

Subordination of claims of creditors

Certain creditors of the Ultimate Parent Bank are given a statutory priority under Australian law. Unsecured creditors of the NZ Branch could be expected to rank behind such claims.

Specifically, pursuant to subsection 13A(3) of the Banking Act 1959 of the Commonwealth of Australia (the Banking Act), if an Authorised Deposit-Taking Institution (ADI) (which includes the Ultimate Parent Bank) becomes unable to meet its obligations or suspends payment, the assets of the ADI in Australia are to be available to meet the ADI's liabilities in the following order:

(a) first, the ADI's liabilities (if any) to APRA because of the rights APRA has against the ADI because of section 16AI or 16AIC of the Banking Act;
(b) second, the ADI's debts (if any) to APRA under section 16AO of the Banking Act;
(c) third, the ADI's liabilities (if any) in Australia in relation to protected accounts that account-holders keep with the ADI. (Broadly, this means accounts (including deposit accounts) kept with the Ultimate Parent Bank that are situated in Australia and recorded in Australian dollars);
(d) fourth, the ADI’s debts (if any) to the Reserve Bank of Australia;
(e) fifth, the ADI’s liabilities (if any) under an industry support contract that is certified by APRA under section 11CB of the Banking Act; and
(f) sixth, the ADI's other liabilities in the order of their priority (apart from subsection 13A(3)).

Unsecured creditors of the NZ Branch could be expected to rank as a creditor pursuant to the sixth paragraph, together with other unsecured creditors of the Ultimate Parent Bank that do not otherwise have a priority claim under preceding paragraphs.

Subsections 16(1) and (2) of the Banking Act provide that, despite anything contained in any law relating to the winding-up of companies, but subject to subsection 13A(3) of the Banking Act, the debts of an ADI to APRA in respect of APRA's costs (including costs in the nature of remuneration and expenses) of being in control of the ADI's business, or of having an administrator in control of the ADI's business, are a debt due to APRA and have priority in a winding-up of the ADI over all other unsecured debts.

Section 86 of the Reserve Bank Act 1959 of the Commonwealth of Australia provides that notwithstanding anything contained in any law relating to the winding-up of companies, but subject to subsection 13A(3) of the Banking Act, debts due to the Reserve Bank of Australia by any ADI shall, in a windingup, have priority over all other debts.

This description of the liabilities which are mandatorily preferred by law is not exhaustive.

These provisions affect all of the unsecured liabilities of the NZ Branch, which as at 30 September 2025, amounted to NZ$4 million (2024: NZ$2 million).

Requirement to maintain sufficient assets to cover ongoing obligation to pay deposit liabilities

Subsection 13A(4) of the Banking Act states that it is an offence if an ADI does not hold assets (excluding goodwill and any assets or other amount excluded by the prudential standards for the purposes of that subsection) in Australia of a value that is equal to or greater than the total amount of its deposit liabilities in Australia, and APRA has not authorised the ADI to hold assets of a lesser value. This requirement has the potential to impact on the management of the liquidity of the NZ Branch.

APRA’s powers

The Ultimate Parent Bank is subject to extensive prudential regulation by APRA.

The Banking Act requires APRA to exercise its powers and functions for the protection of the depositors of ADIs and for the promotion of financial system stability in Australia.

Where APRA considers that an ADI may become unable to meet its obligations or suspends payment (among other circumstances), APRA can take control of the ADI's business (including by appointment of an ADI statutory manager). APRA also has power to direct the ADI not to make payments in respect of its indebtedness and to compulsorily transfer some or all of the ADI’s assets and liabilities to another ADI in certain circumstances and to increase its capital in specified circumstances. A counterparty to a contract with an ADI cannot rely solely on the fact that an ADI statutory manager is in control of the ADI's business or on the making of a direction or compulsory transfer order as a basis for denying any obligations to the ADI or for accelerating any debt under that contract or closing out any transaction relating to that contract.

The Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018 (the Crisis Management Act) amended the Banking Act (among other statutes applicable to financial institutions in Australia) and enhanced APRA’s powers to facilitate resolution of the entities it regulates (and their subsidiaries) in times of distress. Additional powers which could impact the Overseas Banking Group include greater oversight, management and directions powers in relation to the Ultimate Parent Bank and other Overseas Banking Group entities, statutory management powers over regulated entities within the Overseas Banking Group and statutory recognition of the conversion or write-off of regulatory capital instruments.

The requirements of the Banking Act and the exercise by APRA of its powers have the potential to impact the management of the liquidity of ANZBGL New Zealand.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B1. General disclosures (unaudited) (continued)

Restrictions on the Ultimate Parent Bank’s ability to provide financial support

Effect of APRA’s Prudential Standards

APRA Prudential Standard APS 222 Associations with Related Entities (APS 222) sets minimum requirements for ADIs in Australia, including the Ultimate Parent Bank. The key requirements of APS 222 are that: an ADI must have a board-approved policy that governs its associations and dealings with its related entities; identify, monitor, manage and control potential contagion risk between the ADI and its related entities and step-in risk entities; meet minimum requirements with respect to dealings with related entities and step-in risk entities which may give rise to prudential concerns; and maintain exposures to related entities within limits.

Under APS 222, the Ultimate Parent Bank’s ability to provide financial support to the Bank is subject to the following restrictions:

the Ultimate Parent Bank should not undertake any dealings with any unrelated entities for the purpose of supporting the business of the Bank;
the Ultimate Parent Bank must not provide support to, or accept support from, the Bank, unless such support is expressed clearly in legal documentation, is fixed as to time and amount, and is in accordance with the Ultimate Parent Bank’s policies and the prudential requirements set out in paragraphs 13 to 17 of APS 222. These requirements include (without limitation) that the Ultimate Parent Bank must not:
have unlimited exposures to the Bank; or
agree to cross-default clauses whereby a default by the Bank on an obligation (whether financial or otherwise) triggers or is deemed to trigger a default by the Ultimate Parent Bank on its obligations;
the Ultimate Parent Bank must satisfy APRA (upon request) that when it purchases assets or securities issued by, or assumes or acquires liabilities of, the Bank, or sells assets and securities to the Bank, that these activities do not constitute the Ultimate Parent Bank providing capital support to the Bank; and
the level of exposure, net of exposures deducted from capital, of the Ultimate Parent Bank’s level 1 tier 1 capital base to the Bank should not exceed: (A) 25% on an individual exposure basis; or (B) 75% in aggregate (being exposures to all similar regulated ADI equivalent entities related to the Ultimate Parent Bank).

In addition, since 1 January 2021, no more than 5% of the Ultimate Parent Bank’s level 1 tier 1 capital base can comprise non-equity exposures to its New Zealand operations (including its subsidiaries incorporated in New Zealand, such as the Banking Group, and the NZ Branch) during ordinary times. This limit does not include holdings of capital instruments or eligible secured contingent funding support provided to the Bank during times of financial stress.

APRA has also confirmed that contingent funding support by the Ultimate Parent Bank to the Bank during times of financial stress must be provided on terms that are acceptable to APRA. At present, only covered bonds meet APRA’s criteria for contingent funding.

In July 2025, APRA released a consultation paper proposing to replace tier 1 capital references with CET1 capital in relation to exposure limits, including APS 222 and Trans-Tasman funding arrangements, which may impact the Ultimate Parent Bank’s capacity to fund exposures under the above metrics (depending on existing capacity under those metrics). ADIs who are impacted by the changes to APS 222 or Trans-Tasman funding arrangements have been advised to contact their APRA supervisor to discuss potential adjustments. APRA has indicated that it intends to finalise changes to prudential standards before the end of the 2025 calendar year, with implementation from 1 January 2027.

Effect of the Level 3 framework

In addition, certain requirements of APRA’s Level 3 framework relating to, among other things, group governance and risk exposures became effective on 1 July 2017. This framework also requires that the Ultimate Parent Bank must limit its financial and operational exposures to subsidiaries (including the Bank).

In determining the acceptable level of exposure to a subsidiary, the Board of the Ultimate Parent Bank should have regard to:

the exposures that would be approved for third parties of broadly equivalent credit status;
the potential impact on the Ultimate Parent Bank’s capital and liquidity positions; and
the Ultimate Parent Bank’s ability to continue operating in the event of a failure by the Bank.

These requirements are not expected to place additional restrictions on the Ultimate Parent Bank’s ability to provide financial or operational support to the Bank.

Other APRA powers

The Ultimate Parent Bank may not provide financial support in breach of the Banking Act, as described under ‘APRA’s powers’ above.

Guarantees

No material obligations of the NZ Branch are guaranteed as at 7 November 2025.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B1. General disclosures (unaudited) (continued)

Directors, New Zealand Chief Executive Officer and Responsible Person

Any document or communication may be sent to any Director or the Chief Executive Officer – NZ Branch at the Registered Office. The document or communication should be marked for the attention of that Director or the Chief Executive Officer – NZ Branch as applicable.

Directors of the Ultimate Parent Bank as at 7 November 2025

	Paul O’Sullivan	Nuno Matos	John Cincotta
Position	Chairman and Director	Chief Executive Officer and Director	Director
Occupation	CompanyDirector	ANZ GroupChief Executive Officer	CompanyDirector
Qualifications	BA (Mod) Economics, Advanced	BBA, MBA	BBus, CPA
	Management Program of Harvard
Resides	Sydney, Australia	Melbourne, Australia	Sydney, Australia
Executive	No	Yes	No
Independent	Yes	No	Yes (from ANZ non-bankgroup)
Other company	ANZ Group Holdings Ltd, ANZ BH Pty Ltd,	ANZ Group Holdings Ltd, ANZ BH Pty Ltd,	ANZ BH Pty Ltd, ASX Clear Pty Ltd, ASX
directorships	St Vincent’s Health Australia, Western	The Financial Markets Foundation for	Settlement Pty Ltd, ASX Clearing
	Sydney Airport Corporation	Children, SBGH Ltd	Corporation Ltd, ASX Clear (Futures) Pty
			Ltd, ASX Settlement Corporation Ltd,
			Austraclear Ltd, Norfina Ltd, SBGH Ltd
	Alison Gerry	Richard Gibb	Graham Hodges
Position	Director	Director	Director
Occupation	CompanyDirector	CompanyDirector	CompanyDirector
Qualifications	BMS (Hons), MAppFin, CFInstD	Mcom, BEc	BEc (Hons)
Resides	Queenstown, New Zealand	Sydney, Australia	Melbourne, Australia
Executive	No	No	No
Independent	Yes	Yes	Yes (from ANZ non-bankgroup)
Other company	ANZ Group Holdings Ltd, ANZ BH Pty Ltd,	ANZ Group Holdings Ltd, ANZ BH Pty Ltd,	ANZ BH Pty Ltd, Regis Healthcare Ltd,
directorships	Air New Zealand Ltd, Glendora Avocados	Austal Ltd, Norfina Ltd, SBGH Ltd	Assemble Communities
	Ltd, Glendora Holdings Ltd, Infratil Ltd,
	On BeingBold Ltd
	HollyKramer	Christine O’Reilly	Jeff Smith
Position	Director	Director	Director
Occupation	CompanyDirector	CompanyDirector	CompanyDirector
Qualifications	BA (Hons), MBA	BBus	BAPPSC, MBA
Resides	Sydney, Australia	Melbourne, Australia	United States of America
Executive	No	No	No
Independent	Yes	Yes	Yes
Other company	ANZ Group Holdings Ltd, ANZ BH Pty Ltd,	ANZ Group Holdings Ltd, ANZ BH Pty Ltd,	ANZ Group Holdings Ltd, ANZ BH Pty Ltd,
directorships	Fonterra Co-operative Group Ltd	Australia Pacific Airports Corporation Ltd,	ANZ Group Services Pty Ltd, Pexa Australia
		BHP Group Ltd, Infrastructure Victoria,	Ltd, Sonrai Security Inc
		Norfina Ltd, SBGH Ltd
	Scott St John
Position	Director
Occupation	CompanyDirector
Qualifications	BCom, Diploma of Business
Resides	Auckland, New Zealand
Executive	No
Independent	Yes
Other company	ANZ Group Holdings Ltd, ANZ BH Pty Ltd,
directorships	Captain Cook Nominees Ltd, Hutton Wilson
	Nominees Ltd, Mercury NZ Ltd,
	Te Awanga Terraces Ltd

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B1. General disclosures (unaudited) (continued)

Chief Executive Officer – NZ Branch and Responsible Person as at 7 November 2025

	Sam Forgie	Antonia Watson
Position	Chief Executive Officer – NZ Branch	Responsible Person1
Occupation	Chief Executive Officer, Australia and	Chief Executive Officer –
	New Zealand Banking Group Ltd –	ANZ Bank New Zealand Ltd
	New Zealand Branch
Qualifications	BA, BCom	BCom (Hons), GAICD
Resides	Wellington, New Zealand	Auckland, New Zealand
Other company	None	Not applicable
directorships

Authorised in writing by the Directors to sign the Disclosure Statement in accordance with section 82 of the Banking (Prudential Supervision) Act 1989.

Transactions with Directors

There are no transactions entered into by any Director, the Chief Executive Officer – NZ Branch, or any immediate relative or close business associate of any Director or the Chief Executive Officer – NZ Branch, with any part of ANZBGL New Zealand which has been either entered into on terms other than those which would in the ordinary course of business be given to any other person of like circumstances or means or which could otherwise be reasonably likely to influence materially the exercise of the Directors' or Chief Executive Officer – NZ Branch duties in respect of the NZ Branch and ANZBGL New Zealand.

Board Audit Committee

The Ultimate Parent Bank has a board Audit Committee which covers audit matters. The Committee has seven members. Each member is a nonexecutive Director.

Policy of the board of directors for avoiding or dealing with conflicts of interest

The Board of the Ultimate Parent Bank has adopted procedures to ensure that conflicts and potential conflicts of interest between a Director’s duties to the Ultimate Parent Bank and their own interests are avoided or dealt with. Pursuant to these procedures:

each Director should disclose to all Directors any material personal interest they have in any matter which relates to the affairs of the Ultimate Parent Bank and any other interest which the Director believes is appropriate to disclose in order to avoid an actual conflict of interest or the perception of a conflict of interest. This disclosure should be made as soon as practicable after the Director becomes aware of their interest or the need to make a disclosure.
any Director who has an interest of the type referred to above in a matter that is to be considered at a Directors' meeting, must not vote on the matter nor be present while the matter is considered at the meeting, unless a majority of Directors who do not have such an interest in the matter agree that the interest should not disqualify such Director from being present while the matter is being considered and from voting on the matter. The minutes of the meeting should record the decision taken by the Directors who do not have an interest in the matter.

In addition, Standing Notices about Interests are maintained for each Director. If the Director's interests change, the Director shall disclose the change as soon as practicable and an updated Standing Notice shall be tabled at the next Board meeting and recorded in the minutes of that meeting.

Auditors

KPMG, 18 Viaduct Harbour Avenue, Auckland, New Zealand.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B1. General disclosures (unaudited) (continued)

Conditions of registration

The following conditions of registration were applicable as at 30 September 2025, and have applied from 1 November 2015.

The registration of Australia and New Zealand Banking Group Limited (the registered bank) in New Zealand is subject to the following conditions:

That the banking group does not conduct any non-financial activities that in aggregate are material relative to its total activities.

In this condition of registration, the meaning of “material” is based on generally accepted accounting practice.

That the banking group’s insurance business is not greater than 1% of its total consolidated assets. For the purposes of this condition of registration, the banking group’s insurance business is the sum of the following amounts for entities in the banking group:
a) if the business of an entity predominantly consists of insurance business and the entity is not a subsidiary of another entity in the banking group whose business predominantly consists of insurance business, the amount of the insurance business to sum is the total consolidated assets of the group headed by the entity; and
b) if the entity conducts insurance business and its business does not predominantly consist of insurance business and the entity is not a subsidiary of another entity in the banking group whose business predominantly consists of insurance business, the amount of the insurance business to sum is the total liabilities relating to the entity’s insurance business plus the equity retained by the entity to meet the solvency or financial soundness needs of its insurance business.

In determining the total amount of the banking group’s insurance business—

a) all amounts must relate to on balance sheet items only, and must comply with generally accepted accounting practice; and
b) if products or assets of which an insurance business is comprised also contain a non-insurance component, the whole of such products or assets must be considered part of the insurance business.

For the purposes of this condition of registration,—

“insurance business” means the undertaking or assumption of liability as an insurer under a contract of insurance:
“insurer” and “contract of insurance” have the same meaning as provided in sections 6 and 7 of the Insurance (Prudential Supervision) Act 2010.
That the business of the registered bank in New Zealand does not constitute a predominant proportion of the total business of the registered bank.
That no appointment to the position of the New Zealand chief executive officer of the registered bank shall be made unless: a) the Reserve Bank has been supplied with a copy of the curriculum vitae of the proposed appointee; and
b) the Reserve Bank has advised that it has no objection to that appointment.
1. That Australia and New Zealand Banking Group Limited complies with the requirements imposed on it by the Australian Prudential Regulation Authority.
That Australia and New Zealand Banking Group Limited complies with the following minimum capital adequacy requirements, as administered by the Australian Prudential Regulation Authority:
a) Common Equity Tier 1 capital of Australia and New Zealand Banking Group Limited is not less than 4.5 percent of risk weighted exposures;
b) Tier 1 capital of Australia and New Zealand Banking Group Limited is not less than 6 percent of risk weighted exposures;
c) Total capital of Australia and New Zealand Banking Group Limited is not less than 8 percent of risk weighted exposures.
That the business of the registered bank in New Zealand is restricted to:
a) acquiring for fair value, and holding, mortgages originated by ANZ Bank New Zealand Limited; and
b) any other business for which the prior written approval of the Reserve Bank has been obtained; and c) activities that are necessarily incidental to the business specified in paragraphs (a) and (b).
That the value of the mortgages held by the registered bank in New Zealand must not exceed $15 billion in aggregate.
That the registered bank in New Zealand does not incur any liabilities except:
a) to the government of New Zealand in respect of taxation and other charges;
b) to other branches or the head office of the registered bank;
c) to trade creditors and staff;
d) to ANZ Bank New Zealand Limited in respect of activities, other than borrowing, that are necessarily incidental to the business specified in paragraphs a) and b) of condition 7; and
e) any other liabilities for which the prior written approval of the Reserve Bank has been obtained.

In these conditions of registration,—

“banking group” means the New Zealand business of the registered bank and its subsidiaries as required to be reported in group financial statements for the group’s New Zealand business under section 461B(2) of the Financial Markets Conduct Act 2013.

“business of the registered bank in New Zealand” means the New Zealand business of the registered bank as defined in the requirement for financial statements for New Zealand business in section 461B(1) of the Financial Markets Conduct Act 2013.

“generally accepted accounting practice” has the same meaning as in section 8 of the Financial Reporting Act 2013.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B1. General disclosures (unaudited) (continued)

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 26 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 November 2025, the Ultimate Parent Bank’s credit ratings are:

As at 7 November 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

The following table describes the credit rating grades available. The descriptions are from S&P Global Ratings. Credit ratings from S&P Global Ratings and Fitch Ratings may be modified by the addition of "+" or "-" to show the relative standing within the “AA” to “B” categories. Moody's Investors Service applies numerical modifiers 1, 2, and 3 to each of the “Aa” to “Caa” classifications, with 1 indicating the higher end and 3 the lower end of the rating category.

		Moody's
	S&P Global	Investors	Fitch
	Ratings	Service	Ratings
Investment grade:
Extremely strong capacity to meet financial commitments. Highest rating.	AAA	Aaa	AAA
Very strong capacity to meet financial commitments.	AA	Aa	AA
Strong ability to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.	A	A	A
Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.	BBB	Baa	BBB
Speculative grade:
Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.	BB	Ba	BB
More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.	B	B	B
Currently vulnerable and dependent on favourable business, financial and economic conditions to meet financial commitments.	CCC	Caa	CCC
Highly vulnerable; default has not yet occurred, but is expected to be a virtual certainty.	CC to C	Ca	CC to C
Payment default on a financial commitment or breach of an imputed promise; also used when a bankruptcy petition has been filed or similar action taken.	D	C	RD & D

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B1. General disclosures (unaudited) (continued)

Historical summary of financial statements

Income statement

Income statement
	2025	2024	2023	2022	2021
For the year ended 30 September	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
Interest income	10,548	11,933	10,226	5,824	4,608
Interest expense	(6,075)	(7,617)	(5,987)	(2,062)	(1,203)
Net interest income	4,473	4,316	4,239	3,762	3,405
Non-interest income	912	467	610	1,117	759
Operating income	5,385	4,783	4,849	4,879	4,164
Operating expenses	(1,814)	(1,761)	(1,663)	(1,654)	(1,622)
Credit impairment release/(charge)	25	(44)	(183)	(39)	115
Profit before income tax	3,596	2,978	3,003	3,186	2,657
Income tax expense	(1,015)	(846)	(832)	(887)	(738)
Profit after income tax	2,581	2,132	2,171	2,299	1,919
Comprising:
Profit attributable to the shareholders of the Ultimate Parent Bank	2,538	2,097	2,144	2,299	1,919
Profit attributable to non-controlling interests	43	35	27	-	-
Balance sheet
	2025	2024	2023	2022	2021
As at 30 September	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
Total assets	210,267	199,466	194,589	201,439	185,072
Total individually impaired assets	369	370	287	146	155
Total liabilities	192,749	182,939	177,904	185,417	169,996
Shareholders' equity	16,693	15,702	16,135	15,472	15,076
Non-controlling interests	825	825	550	550	-
Dividends paid or provided for included in Shareholders' equity
Ordinary dividends paid	1,515	6,145	1,345	1,880	845
Preference dividends paid	43	35	27	-	-

The amounts included in this summary have been taken from the audited financial statements of ANZBGL New Zealand.

Other material matters

RBNZ capital requirements

In 2019, RBNZ decided to revise the capital adequacy requirements that apply to New Zealand locally incorporated registered banks. Implementation of the revised requirements has been underway since 2021, requiring a material increase in capital to be held by the Banking Group. Further required increases were expected to be implemented incrementally to July 2028 but may not proceed as RBNZ is conducting a review of their key capital requirements for banks.

In its consultation paper published in August 2025, RBNZ proposed introducing lower and more granular standardised risk weights for certain types of lending, and removing AT1 capital from the capital framework. RBNZ also outlined two potential options for the capital requirements for the New Zealand systemically important banks, including the Bank:

Option 1 proposes a minimum common equity tier 1 (CET1) capital ratio requirement of 14% and a minimum total capital ratio requirement of 17%.
Option 2 proposes a minimum CET1 capital ratio requirement of 12%, a minimum total capital ratio requirement of 15% and a Loss Absorbing Capacity (LAC) requirement, of which the form has not yet been considered, of 6%. Under Option 2 all tier 2 and LAC instruments would be required to be issued to the Ultimate Parent Bank.

RBNZ expects both options to result in lower average funding costs than the 2019 capital decisions once fully implemented.

RBNZ has announced that it intends to make any final decisions by the end of 2025. The impact of the review on the Banking Group is uncertain.

Under RBNZ’s 2019 capital review decisions, contingent capital instruments will no longer be treated as eligible regulatory capital. As at 30 September 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 anz.com/shareholder/centre/.

Other information

The depositor compensation scheme protects up to NZ$100,000 per eligible depositor per deposit taker, in the event of a deposit taker failure. It is funded by levies collected from deposit takers, including the Bank, and commenced on 1 July 2025. For more information about the scheme, please refer to RBNZ’s website at www.rbnz.govt.nz/dcs.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B2. Additional financial disclosures

Additional information on the balance sheet

		2025	2024
		NZ$m	NZ$m
Total interest	earning and discount bearing assets	192,016	183,414
Total interest	and discount bearing liabilities	161,195	150,977
Total liabilities	of the NZ Branch less amounts due to related entities	4	2

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.

		Up to	Over 3 to	Over 6 to	Over 1 to	Over	Not bearing
	Total	3 months	6 months	12 months	2 years	2 years	interest1
As at 30 September 2025	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m	NZ$m
Assets
Cash and cash equivalents	9,386	9,147	-	-	-	-	239
Settlement balances receivable	1,620	-	-	-	-	-	1,620
Collateral paid	1,114	1,114	-	-	-	-	-
Trading securities	6,348	588	50	851	1,199	3,660	-
Derivative financial instruments	11,446	-	-	-	-	-	11,446
Investment securities	16,458	13	-	272	2,447	13,720	6
Net loans and advances	158,964	74,433	20,586	35,262	23,961	4,713	9
Other financial assets	860	-	-	-	-	-	860
Total financial assets	206,196	85,295	20,636	36,385	27,607	22,093	14,180
Liabilities
Settlement balances payable	4,597	2,461	-	-	-	-	2,136
Collateral received	1,725	1,725	-	-	-	-	-
Deposits and other borrowings	156,172	99,928	18,490	13,843	3,200	3,381	17,330
Derivative financial instruments	10,198	-	-	-	-	-	10,198
Debt issuances	17,766	911	-	3,272	3,820	9,763	-
Lease liabilities	206	12	12	24	46	112	-
Other financial liabilities	1,084	195	-	-	-	-	889
Total financial liabilities	191,748	105,232	18,502	17,139	7,066	13,256	30,553
Hedginginstruments	-	7,183	1,796	(4,076)	(10,206)	5,303	-
Interest sensitivity gap	14,448	(12,754)	3,930	15,170	10,335	14,140	(16,373)

Excludes non-coupon bearing discounted financial assets and financial liabilities which are shown as repricing on their maturity date.

Overseas Banking Group Profitability and Size

	2025
Net profit for the year ended 30 September 2025 (A$m)1	6,076
Net profit after tax for the year ended 30 September 2025 as a percentage of average total assets	0.45%
Total assets (A$m)	1,297,671
Percentage change in total assets in the 12 months to 30 September 2025	5.54%

Net profit after tax for the year includes A$41 million of profit attributable to non-controlling interests.

Reconciliation of mortgage related amounts

Reconciliation of mortgage related amounts
As at 30 September 2025	Note	NZ$m
Term loans - housing1	11	116,116
Less: housingloans made to corporate customers		(1,524)
On-balance sheet residential mortgage exposures (per LVR analysis)	B4	114,592
Add: off-balance sheet residential mortgage exposures (per LVR analysis)	B4	10,263
Total residential mortgage exposures (per LVR analysis)	B4	124,855

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

Registered bank disclosures

B3. Asset quality

This section should be read in conjunction with the estimates, assumptions and judgements included in Note 1, Note 12 and Note 15 to the financial statements.

Movements in components of loss allowance – total

Movements in components of loss allowance – total
			Stage 3
	Stage 1 NZ$m	Stage 2 NZ$m	Collectively assessed NZ$m	Individually assessed Total NZ$m NZ$m

Net loans and advances at amortised cost
As at 1 October 2024	187	370	104	64 725
Transfer between stages	58	(58)	(2)	2 -
New and increased provisions (net of collective provision releases)	(57)	8	(6)	94 39
Write-backs	-	-	-	(53) (53)
Recoveries of amounts previously written off	-	-	-	(9) (9)
Credit impairment charge/(release)	1	(50)	(8)	34	(23)
Bad debts written-off (excluding recoveries)	-	-	-	(47)	(47)
Add back recoveries of amounts previously written off	-	-	-	9	9
Discount unwind	-	-	-	4	4
As at 30 September 2025	188	320	96	64	668

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 collective provision releases)	(9)	6	-	1	(2)
Credit impairment charge/(release)	(4)	1	-	1	(2)
As at 30 September 2025	70	57	3	4	134

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	272	8	369	168	817
Amounts drawn from new or existing facilities	42,862	1,670	71	205	44,808
Additions	43,134	1,678	440	373	45,625
Net transfers out of each stage	(219)	(575)	(23)	-	(817)
Amounts repaid	(35,038)	(3,101)	(430)	(327)	(38,896)
Deletions	(35,257)	(3,676)	(453)	(327)	(39,713)
Amounts written off	-	-	-	(47)	(47)
As at 30 September 2025	146,504	9,941	1,244	369	158,058
Loss allowance as at 30 September 2025	188	320	96	64	668
Off-balance sheet credit related commitments
As at 1 October 2024	27,010	1,543	26	10	28,589
Net transfers into each stage	9	208	5	11	233
New and increased facilities and drawn amounts repaid	7,535	365	4	9	7,913
Additions	7,544	573	9	20	8,146
Net transfers out of each stage	(212)	(10)	(11)	-	(233)
Reduced facilities and amounts drawn	(5,942)	(352)	(8)	(7)	(6,309)
Deletions	(6,154)	(362)	(19)	(7)	(6,542)
As at 30 September 2025	28,400	1,754	16	23	30,193
Loss allowance as at 30 September 2025	70	57	3	4	134

Explanation of how changes in the gross carrying amounts of gross loans and advances contributed to changes in loss allowance Overall, loss allowances are 0.43% of gross balances as at 30 September 2025, down from 0.48% as at 30 September 2024. The NZ$59 million (6.9%) decrease in loss allowances was driven by a decrease in the proportion of gross balances in Stage 2 and a release of management temporary adjustments, partially offset by changes in the forward-looking economic scenarios as described in Note 12 Allowance for expected credit losses.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B3. Asset quality (continued)

Movements in components of loss allowance – total

Movements in components of loss allowance – total
	Stage 3
Stage 1 Stage 2 Net loans and advances at amortised cost NZ$m NZ$m	Collectively assessed Individually assessed Total NZ$m NZ$m NZ$m
As at 1 October 2023 193 398	79 60 730
Transfer between stages 36 (40)	(1) 5 -
New and increased provisions (net of collective provision releases) (42) 12	26 99 95
Write-backs - -	- (49) (49)
Recoveries of amounts previously written off - -	- (11) (11)
Credit impairment charge/(release) (6) (28)	25 44 35
Bad debts written-off (excluding recoveries) - -	- (41) (41)
Add back recoveries of amounts previously written off - -	- 11 11
Discount unwind - -	- (10) (10)
As at 30 September 2024 187 370	104 64 725

Off-balance sheet credit related commitments
As at 1 October 2023 80 39	3 5 127
Transfer between stages 4 (4)	- - -
New and increased provisions (net of collective provision releases) (10) 21	- (2) 9
Credit impairment charge/(release) (6) 17	- (2) 9
As at 30 September 2024 74 56	3 3 136

Impacts of changes in gross financial assets on loss allowances

Gross loans and advances at amortised cost
As at 1 October 2023 137,626 11,120	893 287 149,926
Net transfers into each stage - 1,953	498 143 2,594
Amounts drawn from new or existing facilities 32,959 1,695	100 255 35,009
Additions 32,959 3,648	598 398 37,603
Net transfers out of each stage (2,594) -	- - (2,594)
Amounts repaid (29,364) (2,829)	(234) (274) (32,701)
Deletions (31,958) (2,829)	(234) (274) (35,295)
Amounts written off - -	- (41) (41)
As at 30 September 2024 138,627 11,939	1,257 370 152,193
Loss allowance as at 30 September 2024 187 370	104 64 725

Off-balance sheet credit related commitments - total
As at 1 October 2023 27,439 1,137	15 13 28,604
Net transfers into each stage - 301	8 15 324
New and increased facilities and drawn amounts repaid 6,357 389	11 1 6,758
Additions 6,357 690	19 16 7,082
Net transfers out of each stage (324) -	- - (324)
Reduced facilities and amounts drawn (6,462) (284)	(8) (19) (6,773)
Deletions (6,786) (284)	(8) (19) (7,097)
As at 30 September 2024 27,010 1,543	26 10 28,589
Loss allowance as at 30 September 2024 74 56	3 3 136

Explanation of how changes in the gross carrying amounts of gross loans and advances contributed to changes in loss allowance

Overall, loss allowances are 0.48% of gross balances as at 30 September 2024, unchanged from 30 September 2023. The NZ$4 million (0.5%) increase in loss allowances was driven by an increase in the proportion of gross balances in Stage 2 and Stage 3, and changes in the forward-looking economic scenarios, offset by a release of management temporary adjustments.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B3. Asset quality (continued)

Past due assets and other asset quality information

Past due assets and other asset quality information
	2025	2024
Past due assets	NZ$m	NZ$m
Less than 30 days past due	1,033	1,073
At least 30 days but less than 60 days past due	336	461
At least 60 days but less than 90 days past due	412	360
At least 90 days past due	963	947
Total past due but not individually impaired	2,744	2,841
Other asset quality information
Undrawn facilities with individually impaired customers	23	10
Other assets under administration	5	5

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

Overseas Banking Group asset quality
As at	30 Sep 25	30 Sep 24
Individually impaired assets (A$m)	1,145	907
Individually impaired assets as a percentage of total assets	0.1%	0.1%
Individual credit impairment allowance (A$m)	399	308
Individual credit impairment allowance as a percentage of individually impaired assets	34.8%	34.0%
Collective credit impairment allowance (A$m)	4,379	4,247

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B4. Credit and market risk exposures and capital adequacy (unaudited)

APRA Basel III capital ratios

APRA Basel III capital ratios
			Ultimate Parent Bank
	Overseas Banking Group		(Extended Licensed Entity)
As at	2025	2024	2025	2024
Common equity tier 1 capital	12.0%	12.2%	12.4%	12.6%
Tier 1 capital	13.6%	14.0%	14.2%	14.9%
Total capital	21.0%	20.6%	22.8%	22.7%

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 30 September 2025 and for the comparative prior periods.

The Overseas Banking Group is required to publicly disclose Pillar 3 financial information as at 30 September 2025. The Overseas Banking Group’s Pillar 3 disclosure document for the quarter ended 30 September 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 anz.com/shareholder/centre/reporting/regulatory-disclosure/.

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 30 September 2025.

peak end-of-day market risk exposures are for the six months ended 30 September 2025.
	Implied risk		Notional	capital
	weighted	exposure	charge
	Period end	Peak	Period end		Peak
As at 30 September 2025	NZ$m	NZ$m	NZ$m		NZ$m
Interest rate risk	6,114	6,629	489		530
Foreign currency risk	19	88	2		7
Equity risk	6	6	-		-

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	Off-balance
	sheet	sheet	Total
As at 30 September 2025	NZ$m	NZ$m	NZ$m
LVR range
Does not exceed 60%	55,716	7,508	63,224
Exceeds 60% and not 70%	21,443	1,222	22,665
Exceeds 70% and not 80%	27,329	1,229	28,558
Does not exceed 80%	104,488	9,959	114,447
Exceeds 80% and not 90%	8,718	196	8,914
Exceeds 90%	1,386	108	1,494
Total	114,592	10,263	124,855

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B5. Insurance business, securitisation, funds management, other fiduciary activities, and marketing and distribution of insurance products

Insurance business

ANZBGL New Zealand does not carry on any insurance business.

Non-consolidated insurance and non-financial activities

The Ultimate Parent Bank does not carry on any insurance business or non-financial activities in New Zealand that are outside ANZBGL New Zealand.

ANZBGL New Zealand’s involvement in securitisation, funds management, other fiduciary activities, and marketing and distribution of insurance products

a) ANZBGL New Zealand’s involvement in the establishment, marketing, or sponsorship of trust, custodial, funds management, and other fiduciary activities

Activity	Details
Custodial	As at 30 September 2025, ANZ Custodial Services New Zealand Limited is the sole custodian operated by ANZBGL New Zealand.
	It serves as the appointed custodian for private banking’s (ANZ Private) Discretionary Investment Management Service, Wholesale
	Investment Services and Trading Service.
Funds	ANZBGL New Zealand provides the following funds management services:
management	• _Managed Investment Schemes (MIS):_ANZBGL New Zealand’s subsidiaries ANZ New Zealand Investments Limited (ANZ
	Investments) and ANZ Investment Services (New Zealand) Limited (ANZIS) act as manager for a number of managed
	investment schemes. ANZ Investments holds an MIS Manager licence and is the issuer and manager of ANZ and
	OneAnswer-branded KiwiSaver and retail schemes. ANZIS is the issuer and manager of the ANZ PIE Fund. ANZ National Staff
	Superannuation Limited, also a subsidiary of ANZBGL New Zealand, is the trustee and manager of the ANZ National
	Retirement Scheme, which is a restricted workplace savings scheme.
	• _Discretionary Investment Management Service (DIMS):_The Bank is a licensed DIMS provider. This service is offered to ANZ
	Private customers.
	• _Other investment portfolios:_ANZ Investments also manages investment portfolios for a number of schemes where the
	scheme manager or trustee has outsourced investment management services to ANZ Investments.
Other fiduciary	ANZ Investments, through its subsidiary OneAnswer Nominees Limited, offers the OneAnswer Portfolio Service. The associated
activities	administration and custody services are provided by FNZ Limited and FNZ Custodians Limited respectively (together FNZ). FNZ is
	not a member or related party of ANZBGL New Zealand.

b) ANZBGL New Zealand’s involvement in the origination of securitised assets, and the marketing or servicing of securitisation schemes

ANZBGL New Zealand originates securitised assets in the form of residential mortgage backed securities held for potential repurchase transactions with RBNZ, and covered bonds. Refer to Note 23 Structured entities for further details about these programmes. Other than these activities, ANZBGL New Zealand is not involved in the marketing or servicing of securitisation schemes.

c) ANZBGL New Zealand’s involvement in marketing and distribution of insurance products

ANZBGL New Zealand markets and distributes life insurance, other personal and business insurance products provided by or arranged through a number of insurance partners. None of these insurance partners are affiliated insurance entities or affiliated insurance groups. Our insurance partners are:

Vero Insurance New Zealand Limited for home, contents, motor vehicle, boat, and lifestyle block insurance;
AWP Services New Zealand Limited, trading as Allianz Partners, for premium card overseas travel insurance. Policies are underwritten by Mitsui Sumitomo Insurance Company, Limited (incorporated in Japan);
Chubb Life Insurance New Zealand Limited for life & living, and business insurance; and
Arthur J. Gallagher & Co (NZ) Limited for business insurance.

Arrangements to ensure no adverse impacts arising from the above activities

Arrangements have been put in place to ensure that difficulties arising from the activities in a), b) and c) above would not impact adversely on ANZBGL New Zealand. The policies and procedures in place include comprehensive and prominent disclosure of information regarding products, and formal and regular review of operations and policies by management.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B5. Insurance business, securitisation, funds management, other fiduciary activities, and marketing and distribution of insurance products (continued)

Amounts represented by funds management and securitisation activities

Amounts represented by funds management and securitisation activities
	2025	2024
	NZ$m	NZ$m
Funds under management:
KiwiSaver1	23,025	21,768
Other managed funds1	3,560	3,370
ANZ PIE Fund2	7,292	5,994
DIMS3	7,808	7,621
Other investment portfolios4	168	910
Total funds under management	41,853	39,663
Funds under custodial arrangements	7,820	7,635
Other funds held or managed subject to fiduciary responsibilities5	1,978	2,004
Outstanding securitised assets originated by ANZBGL New Zealand - carrying amount of covered bonds	2,510	2,156

Managed by ANZ Investments.
Managed by ANZIS and wholly invested in deposits of the Bank.
Managed by the Bank.

Comprises portfolios managed by ANZ Investments, and the ANZ National Retirement Scheme managed by ANZ National Staff Superannuation Limited.

Not included in funds under management.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B6. Risk management policies

Information about risk

At ANZBGL New Zealand, risk management is a foundational pillar that enables us to deliver on our purpose: to shape a world where people and communities thrive. In an increasingly complex and dynamic environment, we recognise that our ability to identify, access, and manage risk is critical on delivering on customer commitments, maintaining trust, protecting our stakeholders, and achieving sustainable growth.

Our RMF is designed to support ANZBGL New Zealand’s strategic objectives. It encompasses a structured approach to identifying and managing both financial and non-financial material risks through robust governance, clear accountabilities, and a culture of proactive risk ownership.

Central to our approach are ANZBGL New Zealand’s Risk Principles, which guide everyday decision-making across the organisation. They ensure that risk management is not siloed but shared - everyone at ANZBGL New Zealand has a role to play in keeping ANZBGL New Zealand strong, safe and trusted.

The Board is ultimately responsible for establishing and overseeing ANZBGL New Zealand’s RMF, which is supported by ANZBGL New Zealand’s underlying systems, structures, policies, procedures, processes and people. The Board has delegated authority to the Bank’s BRC to develop and monitor compliance with ANZBGL New Zealand’s risk management policies. The BRC reports regularly to the Board on its activities. The key pillars of ANZBGL New Zealand’s RMF include:

The Risk Management Strategy (RMS) is a key part of the RMF. It outlines how risk management supports ANZBGL New Zealand’s purpose and strategy; and the values and behaviours that guide risk decision making. The RMS describes each material risk and how it is managed, including policies, standards and procedures. It also details how risks are identified, measured, evaluated, monitored, reported and controlled or mitigated, along with the oversight mechanism and committees in place.
The Risk Appetite Statement (RAS) articulates the maximum level of risk ANZBGL New Zealand is willing to accept in pursuing its strategic objectives and its operating plans considering its shareholders’, depositors’ and customers’ interests.
ANZBGL New Zealand’s Strategic Planning outlines the approach to implementing strategic objectives, considering the material risks the Bank might have to navigate to achieve its goals.

Material risks

The material risks facing ANZBGL New Zealand per our RMS, and how these risks are managed, are summarised below.

Each material risk has an associated RAS component and, where applicable, is measured by appropriate metric(s) and associated tolerance(s) representing the maximum level of risk appropriate to execute ANZBGL New Zealand’s strategic agenda. Metrics are reviewed at least annually. A risk appetite dashboard is prepared and reviewed by senior management monthly, and presented to the BRC at each meeting.

Risk type	Description	Description	Managing the risk

Capital	The	risk of loss arising from ANZBGL New Zealand failing to	We pursue an active approach to Capital Management, which is
adequacy	maintain the level of capital required by prudential regulators		designed to protect the interests of depositors, creditors and
risk	and	other key stakeholders (shareholders, debt investors,	shareholders through ongoing review, and Board approval, of the level
	depositors, rating agencies, etc.) to support ANZBGL New		and composition of our capital base against key policy objectives. The
	Zealand’s consolidated operations and risk appetite.		ICAAP also operates as part of the management framework for this
			risk.

Credit risk	The	risk of financial loss resulting from:	Our Credit risk framework is top down, being defined by credit
	•	a counterparty failing to fulfil its obligations; or	principles, policies and requirements. Credit policies, requirements and procedures cover all aspects of the credit life cycle from initial approval
	•	a decrease in credit quality of a counterparty resulting in	and risk grading, through to ongoing management and problem debt
		a deterioration of value.	management.
	Includes:		The effectiveness of the Credit risk framework is assessed through
	•	concentrations of credit risk;	various compliance and monitoring processes. These, together with
	•	intra-day credit risk;	portfolio selection, define and guide the credit process, organisation
	•	credit risk to bank counterparties; and	and staff.
	•	related party credit risk

Liquidity and	The	risk that ANZBGL New Zealand is unable to meet its	ANZBGL New Zealand recognises the inherent liquidity and funding risk
funding risk	payment obligations as they fall due, including:		in the balance sheet and has established a set of key principles, to
	•	repaying depositors or maturing wholesale debt; or	mitigate and control liquidity and funding risk.
	•	ANZBGL New Zealand having insufficient capacity to	Our framework is top down, being defined by liquidity principles and
		fund increases in assets.	policies. A liquidity limit framework is in place with liquidity limits set
			based on a liquidity stress testing framework.

Market	The	risk stems from our trading and balance sheet activities	We have a detailed market risk management and control framework
risk	and	is the risk to ANZBGL New Zealand’s earnings arising	which includes incorporating an independent risk measurement
	from:		approach to quantify the magnitude of market risk within the trading
	•	changes in any interest rates, foreign exchange rates, credit spreads, volatility, and correlations; or	and balance sheet portfolios. This approach identifies the range of possible outcomes that can be expected over a given period of time, and establishes the likelihood of those outcomes and allocates an
	•	fluctuations in bond, commodity or equity prices.	appropriate amount of capital to support these activities.
			ANZBGL New Zealand’s key tools to measure and manage Market risk
			on a daily basis include value at risk, earnings at risk, interest rate
			sensitivities, market value loss limits and stress testing.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B6. Risk management policies (continued)

Risk type	Description	Managing the risk

Strategic	Strategic risk is defined as the risk that ANZBGL New	Strategic risks are discussed and managed by the New Zealand
risk	Zealand is prevented from achieving the key strategic goals	Leadership Team (NZLT) through ANZBGL New Zealand’s strategic
	that are core to its operations through ineffective strategic	planning process. Additionally, we monitor delivery risk associated with
	choices, failure to execute the strategy effectively or manage	strategic initiatives and perform risk assessments when strategy
	introduced risk due to strategy changes or a failure to adapt	changes to understand introduced risks, in line with change
	the strategy in response to changing environments and	management processes.
	requirements.
	Strategic risk may arise from factors such as changes in the
	environment context, failure to meet strategic targets, and
	the introduction of risks resulting from strategic changes.

Climate risk	Climate risk refers to the financial and non-financial risks	We continue to integrate and embed climate risk within our RMF.
	arising from climate change including:	While climate risk can be a driver of credit risk through lending to our
	• Physical risk – arising from both longer-term changes in	customers, it may also result in other financial risks.
	climate (chronic risk) as well as changes to the frequency and magnitude of extreme weather events (acute risk). Examples of chronic physical risks drivers include rising sea levels, rising average temperatures and ocean acidification. Examples of acute physical risk	Climate risks can also be a driver of non-financial risks including conduct risk, regulatory risk, operational resilience risk and physical security risk. Climate-related financial and non-financial risks are managed through
	drivers include heatwaves, floods, bushfires and	the risk management strategies associated with these risks.
	cyclones; or
	• Transition risk – arising from the transition to a lower
	emissions economy, including changes in domestic and
	international policy and regulatory settings, technological
	innovation, social adaptation, market changes and
	litigation or regulatory action.

Non-	Non-financial risk (NFR), is the risk of loss and/or non-	ANZBGL New Zealand’s strategy for evolving NFR management
financial risk	compliance (including failure to act in accordance with laws,	provides a planned and proactive approach to improving ANZBGL New
(operational	regulations, industry standards and codes, and internal	Zealand’s NFR management. The NFR strategy is being operationalised
risk)	policies) resulting from inadequate or failed internal	through the NFR Framework, which has been designed to enable
	processes, people, system and/or data, or from external	ANZBGL New Zealand to holistically, consistently and effectively
	events.	identify, assess, remediate, monitor and report on NFR. ANZBGL New
		Zealand manages NFR in accordance with the industry-wide
		Operational Risk Exchange (ORX) taxonomy, of 16 ‘Risk Themes’,
		noting some of these present a higher inherent risk to ANZBGL New
		Zealand such as Technology, Conduct, Financial Crime, Data and
		Information Security (including Cyber).
		Cyber threats continue to increase in sophistication, persistence, scale,
		frequency and impact. Cyber-attacks have the potential to cause
		financial system instability, loss to ANZBGL New Zealand and could
		result in serious disruption to customer banking services or
		compromise customer data privacy and cause customer losses.

Refer to Note 15 Financial risk management for the disclosures required under NZ IFRS 7 Financial Instruments: Disclosures.

Other material risks

Other material risks do not require the same degree of active or transactional management as the material risks and are managed and monitored as part of ANZBGL New Zealand’s business, strategic and capital management process. The maximum level of risk is set as part of the Banking Group’s ICAAP. Refer to Note 21 Capital management for more information about the Banking Group’s ICAAP.

ANZBGL New Zealand has identified credit concentration risk as an other material risk, which is not explicitly captured in the calculation of the Banking Group’s tier 1 and total capital.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Registered bank disclosures

B6. Risk management policies (continued)

Reviews of ANZBGL New Zealand’s risk management systems

Refer to Note 15 Financial risk management for details of the Internal Audit Functions reviews of ANZBGL New Zealand’s RMF. These reviews are not conducted by a party external to ANZBGL New Zealand, the Overseas Banking Group, or the Ultimate Parent Bank.

Internal Audit Function of ANZBGL New Zealand

ANZBGL New Zealand has an Internal Audit Function, refer to Note 15 Financial risk management for details.

Board Audit Committee

The nature and scope of the responsibilities of the Bank’s Audit Committee, to which Internal Audit reports, are to assist the Bank’s Board by providing oversight and review of:

ANZBGL New Zealand's financial reporting principles and policies, controls, systems and procedures;
the effectiveness of ANZBGL New Zealand’s internal control and risk management framework;
the work and internal audit standards of Internal Audit which reports directly and solely to the Chair of the Bank’s Audit Committee;
the integrity of ANZBGL New Zealand's aggregated financial statements and the independent audit thereof, and ANZBGL New Zealand’s compliance with legal and regulatory requirements in relation thereto;
any due diligence procedures;
prudential supervision procedures and other regulatory requirements to the extent relating to financial reporting; and
any other matters referred to it by the Bank’s Board.

The Bank’s Audit Committee is also responsible for:

the appointment, annual evaluation and oversight of the external auditor;
annual review of the independence, fitness and propriety, and qualifications of the external auditor;
compensation of the external auditor; and
where deemed appropriate, replacement of the external auditor.

In carrying out its responsibilities and duties, the Bank’s Audit Committee will aim to seek fair customer outcomes and financial market integrity in its deliberations.

Access to parental disclosures

Disclosures made by the Ultimate Parent Bank in relation to capital adequacy requirements and risk management processes implemented by the Ultimate Parent Bank are included in the Ultimate Parent Bank’s Annual Report and APS 330 Basel III Pillar 3 Capital Disclosures documents which can be accessed at the website shareholder.anz.com.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

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 year ended 30 September 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.
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.

Signed by the Chief Executive Officer – NZ Branch

==> picture [109 x 30] intentionally omitted <==

Sam Forgie Chief Executive Officer – NZ Branch 7 November 2025

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

Antonia Watson Responsible Person 7 November 2025

on behalf of the Directors of the Ultimate Parent Bank: John Cincotta Alison Gerry Richard Gibb Graham Hodges Holly Kramer Nuno Matos Christine O’Reilly Paul O’Sullivan Jeff Smith Scott St John

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Assurance reports

Independent Auditor’s Report

To the directors of Australia and New Zealand Banking Group Limited

Report on the audit of the Registered Bank Disclosures in sections B2, B3, B5 and B6 of the Disclosure Statement

Opinion

We have audited the accompanying registered bank disclosures of the New Zealand business of Australia and New Zealand Banking Group Limited (ANZBGL) and its subsidiaries (together, ANZBGL New Zealand) in sections B2, B3, B5 and B6 on pages 80 to 83 and 85 to 89 of the Disclosure Statement as at and for the year ended 30 September 2025, which comprise the information that is required to be disclosed in accordance with schedules 4, 7, 11 and 13 of the Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended) (the Order).

In our opinion, the accompanying registered bank disclosures that are required to be disclosed in accordance with schedules 4, 7, 11 and 13 of the Order on pages 80 to 83 and 85 to 89:

presents fairly the matters to which they relate;
are disclosed in accordance with those schedules; and
have been prepared, in all material respects, in accordance with any conditions of registration relating to the disclosure requirements, imposed under section 74(4)(c) of the Banking (Prudential Supervision) Act 1989 and any conditions of registration.

Basis for opinion

We are independent of ANZBGL New Zealand in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), as applicable to audits of public interest entities. We have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities section of our report.

Other information

The Directors, on behalf of ANZBGL New Zealand, are responsible for the other information. The other information comprises ANZBGL New Zealand’s general disclosures in section B1, but does not include the registered bank disclosures in sections B2, B3, B5 and B6 and our auditor’s report thereon. Our opinion on the registered bank disclosures in sections B2, B3, B5 and B6 does not cover any other Information and we do not express any form of assurance conclusion thereon. In connection with our audit of the registered bank disclosures in sections B2, B3, B5 and B6 our responsibility is to read the other information and in doing so, consider whether the other information is materially inconsistent with the registered bank disclosures in sections B2, B3, B5 and B6 or our knowledge obtained in the audit or otherwise appears materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report in this regard.

Use of this independent auditor’s report

This independent auditor’s report is made solely to the directors. Our audit work has been undertaken so that we might state to the directors those matters we are required to state to them in this independent auditor’s 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 for our audit work, this independent auditor’s report, or any of the opinions we have formed.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Assurance reports

Responsibilities of the Directors

The Directors, on behalf of ANZBGL New Zealand, are responsible for:

the preparation and fair presentation of the registered bank disclosures in sections B1, B2, B3, B5 and B6 of the Disclosure Statement in accordance with Schedules 2, 4, 7, 11 and 13 of the Order; and
implementing necessary internal control to enable the preparation of the registered bank disclosures in sections B1, B2, B3, B5 and B6 of the Disclosure Statement that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibilities

Our objective is:

to obtain reasonable assurance about whether the registered bank disclosures in sections B2, B3, B5 and B6, (excluding the supplementary information relating to credit and market risk exposures and capital adequacy disclosures) in accordance with schedules 4, 7, 11 and 13 of the Order as a whole are free from material misstatement, whether due to fraud or error; and
to issue an independent auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.

For and on behalf of:

==> picture [73 x 35] intentionally omitted <==

KPMG Auckland

7 November 2025

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Assurance reports

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 disclosures

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 disclosures of the New Zealand business of Australia and New Zealand Banking Group Limited (ANZBGL) and its subsidiaries (together, ANZBGL New Zealand), disclosed in section B4 on page 84 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 disclosures, as disclosed in section B4 of the Disclosure Statement as at and for the six months ended 30 September 2025.

Criteria

The information relating to the credit and market risk exposures and capital adequacy disclosures 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 and market risk exposures and capital adequacy disclosures, 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 disclosures;
performed inquiry and analytical review procedures over the credit and market risk exposures and capital adequacy disclosures;
obtained an understanding of ANZBGL’s compliance framework and internal control environment over the information relating to credit and market risk exposures and capital adequacy disclosures, including ANZBGL’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 disclosures, extracted from ANZBGL’s models, accounting records 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 judgement, 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 disclosures and noncompliance are considered material if, individually or in aggregate, they 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 disclosures.

Australia and New Zealand Banking Group Limited - ANZBGL New Zealand

Assurance reports

Inherent limitations

Because of the inherent limitations of an assurance engagement, together with the internal control structure it is possible that fraud, error or noncompliance with compliance requirements may occur and not be detected.

A limited assurance engagement as at and for the six months ended 30 September 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 ANZBGL’s directors. Our assurance work has been undertaken so that we might state to ANZBGL’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 ANZBGL and ANZBGL’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.

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 ANZBGL and ANZBGL’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 disclosures 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 disclosures 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 the Directors of 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 disclosures has not been disclosed in accordance with Schedule 9 of the Order as at and for the six months ended 30 September 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.

==> picture [74 x 36] intentionally omitted <==

KPMG Auckland

7 November 2025

This page has been left blank intentionally

==> picture [74 x 23] intentionally omitted <==

anz.co.nz

AI assistant

Australia and New Zealand Banking Group Ltd. — Annual Report 2025

10425_rns_2025-11-09_35e59780-4194-4ba1-bc5e-70cb5a2a00be.pdf

10 November 2025

Simon Pordage

Additional information

Glossary

Income Statement

Statement of Comprehensive Income

Balance Sheet

Cash Flow Statement

Statement of Changes in Equity

Notes to the Consolidated Financial Statements

1. About our financial statements

General information

Basis of preparation

Basis of measurement and presentation

Basis of consolidation

Foreign currency translation

Transactions and balances

1. About our financial statements (continued)

Fiduciary activities

Accounting standards adopted in the period

Lease Liability in a Sale and Leaseback

Accounting standards not early adopted

NZ IFRS 18 Presentation and Disclosure in Financial Statements

Classification and measurement amendments to NZ IFRS 9 Financial Instruments

Nature dependent electricity contracts

2. Operating income

2. Operating income (continued)

Net interest income

Interest income and expense

Other operating income

Fee and commission income

3. Operating expenses

Operating expenses

Salaries and related costs - annual leave, long service leave and other employee benefits

4. Income tax

Income tax expense

4. Income tax (continued)

Income tax expense

Current tax expense

Deferred tax assets and liabilities

5. Dividends

Ordinary share dividends

6. Segment reporting

Description of segments

Personal

Business & Agri

Institutional

Other

Operating segments

Other segment

Financial assets

Financial assets - general

Fair value option for financial assets

7. Cash and cash equivalents

8. Trading securities

9. Derivative financial instruments

Features

Purpose

Types

Risks managed

9. Derivative financial instruments (continued)

Derivative financial instruments – held for trading

Derivative financial instruments – designated in hedging relationships

9. Derivative financial instruments (continued)

9. Derivative financial instruments (continued)

9. Derivative financial instruments (continued)

10. Investment securities

11. Net loans and advances

12. Allowance for expected credit losses

Net loans and advances - at amortised cost

Credit impairment charge – Income Statement

Credit impairment charge/(release) analysis

12. Allowance for expected credit losses (continued)

Expected credit loss model

Measurement of expected credit loss

Expected life

Definition of default, credit impaired and write-offs

Australia and New Zealand Banking Group Ltd. Annual Report 2025