Australia and New Zealand Banking Group Ltd. — Interim / Quarterly Report 2011

Feb 24, 2011

ANZ National Bank Limited

ANZ National Bank Limited

Key Information Summary for the three months ended 31 December 2010

Government Guarantees

The Bank has guarantees under the New Zealand Wholesale Funding Facility, which is provided under a Crown Wholesale Funding Guarantee in respect of the Bank entered into by the Crown on 23 December 2008 and supplemented on 19 February 2009 (“Crown Wholesale Guarantee”). The government closed the Crown Wholesale Guarantee to new debt securities on 30 April 2010. The closure did not affect debt securities previously issued with the benefit of the Crown Wholesale Guarantee. Further information about the Crown Wholesale Guarantee is available on the Treasury website treasury.govt.nz and in the Bank’s most recent General Short Form Disclosure Statement and Supplemental Disclosure Statement.

As at 18 February 2011, the Bank does not have a guarantee under any New Zealand government retail deposit guarantee scheme.

Independent Examination Report to the Directors of ANZ National Bank Limited

We have examined the attached Key Information Summary. The information in the Key Information Summary has been extracted from the General Short Form Disclosure Statement of ANZ National Bank Limited and its subsidiaries (the “Banking Group”) for the three months ended 31 December 2010 prepared in accordance with the Registered Bank Disclosure Statement (Off-Quarter – New Zealand Incorporated Registered Banks) Order 2008 (the “Order”).

We have reviewed the interim financial statements and certain supplementary information contained within the General Short Form Disclosure Statement for the three months ended 31 December 2010, on which we issued an unqualified review opinion dated 18 February 2011.

Directors’ Responsibilities

The Directors are responsible for the preparation and presentation of the Key Information Summary in accordance with the Order.

Auditor’s Responsibilities

In accordance with the Order, we are responsible for examining the Key Information Summary presented by the Directors for compliance with the Order, and reporting our findings to you.

Basis of Report

We have examined the information contained in the Key Information Summary and compared it to the corresponding information contained in the General Short Form Disclosure Statement for the three months ended 31 December 2010.

Unqualified Statement of Findings

Based on our examination of the Key Information Summary, we report that:

• the Key Information Summary has been prepared in accordance with the Order; and

• the information contained in the Key Information Summary has been properly extracted, where applicable, from the information contained in the General Short Form Disclosure Statement for the three months ended 31 December 2010.

For a better understanding of the scope of our examination of ANZ National Bank Limited’s General Short Form Disclosure Statement, and of the balance sheet of the Banking Group as at 31 December 2010 and the results of their operations and cash flows for the three months ended on that date, this report should be read in conjunction with the General Short Form Disclosure Statement for the three months ended 31 December 2010 from which the information in the Key Information Summary was extracted and our independent review report thereon.

Key Information Summary

ANZ NATIONAL BANK LIMITED For the three months ended 31 December 2010 Number 60 Issued February 2011

Key Information Summary for the three months ended 31 December 2010

Introductory information

The purpose of this Key Information Summary is to provide customers and potential customers with information about the financial condition of their bank.

The information contained in the Key Information Summary is explained in the Reserve Bank of New Zealand publication “Your Bank’s Disclosure Statement – What’s In It For You?”, which can be obtained from the Reserve Bank of New Zealand.

Corporate information

The full name of the registered bank is ANZ National Bank Limited (the “Bank”). The full name of the Ultimate Parent Bank of the Bank is Australia and New Zealand Banking Group Limited, which is domiciled in Victoria, Australia.

Credit Rating

As at 18 February 2011 the Bank has three credit ratings, which are applicable to its long-term senior unsecured obligations which are payable in New Zealand in New Zealand dollars. On 16 February 2011 Moody’s placed the Bank’s Aa2 long-term debt and deposit ratings on review for possible downgrade. This followed a similar action on the Ultimate Parent Bank and the other major Australian Banks. On 20 May 2010 Fitch changed the outlook on the Bank from Stable to Positive. During the two years ended 31 December 2010 there were no other changes to the Bank’s credit ratings or qualifications.

The Bank’s Credit Ratings are:

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Current Credit
Rating Agency Qualification
Rating
Standard & Poor’s AA Outlook Stable
Review for
Moody’s Investors Aa2 Possible
Service
Downgrade
Fitch Ratings AA- Outlook Positive
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Our review was completed on 18 February 2011 and our unqualified statement of findings is expressed as at that date.

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Wellington

ANZ National Bank Limited

Key Information Summary for the three months ended 31 December 2010

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BANKING GROUP
Unaudited Unaudited
31/12/2010 31/12/2009
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Proftability
Net proft after tax for three months ended 31 December ($m)	258	243
Net proft after tax for the year ended 31 December as a percentage of average total assets	0.7%	0.3%
Size – as at 31 December
Total assets ($m)	113,803	115,103
The percentage increase / (decrease) in total assets from 1 January to 31 December	(1.1)%	(12.9)%
Capital Adequacy – as at 31 December
Tier One Capital as a percentage of risk weighted exposures	10.1%	9.6%
Reserve Bank of New Zealand minimum Tier One Capital ratio	4.0%	4.0%
Total Capital as a percentage of risk weighted exposures	13.4%	13.3%
Reserve Bank of New Zealand minimum Total Capital ratio	8.0%	8.0%
Asset Quality – as at 31 December
Total impaired assets ($m)	2,006	1,322
Total impaired assets as a percentage of total assets	1.8%	1.1%
Total individual provisions ($m)	588	562
Total individual provisions as a percentage of total impaired assets	29.3%	42.5%
Total collective provisions ($m)	738	794

ANZ National Bank Limited

Key Information Summary for the three months ended 31 December 2010

Peak credit exposure concentrations – for the quarter ended 31 December

The number of individual counterparties (excluding OECD Governments and connected persons), where the Banking Group’s quarter end and peak end-of-day credit exposure over the quarter equals or exceeds 10% of equity (as at the end of the quarter) in ranges of 10% of equity, on the basis of limits, are:

Number of counterparties	BANKING GROUP Unaudited 31/12/2010 Unaudited As at Peak for the quarter As at	BANKING GROUP Unaudited 31/12/2010 Unaudited As at Peak for the quarter As at	BANKING GROUP Unaudited 31/12/2010 Unaudited As at Peak for the quarter As at	31/12/2009 Peak for the quarter
Concentrations of credit risk to bank counterparties
10% to 20% of equity	3	3	1	2
20% to 30% of equity	-	-	-	1
Concentrations of credit risk to non bank counterparties
10% to 20% of equity	1	1	1	1

There were no individual provisions on the exposures included in the disclosures above. No account is taken of security and/or guarantees which the Bank may hold in respect of the various counterparty limits and exposures.

Peak connected persons credit exposures – for the quarter ended 31 December

	BANKING GROUP Unaudited 31/12/2010 Unaudited Amount $m % of Tier One Capital Amount $m	BANKING GROUP Unaudited 31/12/2010 Unaudited Amount $m % of Tier One Capital Amount $m	BANKING GROUP Unaudited 31/12/2010 Unaudited Amount $m % of Tier One Capital Amount $m	31/12/2009 % of Tier One Capital
The peak end-of-day aggregate credit exposures to connected persons were:
On a gross basis	4,785	68.8%	4,923	73.1%
Amount netted of	3,361	48.4%	2,787	41.4%
On a partial bilateral net basis1	1,424	20.5%	2,136	31.7%

1. Netting has occurred in respect of certain transactions which are the subject of a bilateral netting agreement disclosed in the Bank’s most recent Supplemental Disclosure Statement for the three months ended 31 December 2010.

There were no individual provisions on exposures to connected persons and the information stated above excludes exposures of a capital nature. The Bank and its subsidiaries have complied with the limits on aggregate credit exposures to connected persons and non-bank connected persons, as set out in the Bank’s Conditions of Registration, at all times during the period and comparative period.

Availability of Disclosure Statements

Copies of the Bank’s most recent General Short Form Disclosure Statement and Supplemental Disclosure Statement will be provided at no charge immediately to any person requesting a copy where the request is made at the Bank’s head office, Level 6, 1 Victoria Street, Wellington; and within five working days where the request is made at any branch or agency of the Bank. This Key Information Summary, the most recent General Short Form Disclosure Statement and Supplemental Disclosure Statement can be accessed at the website addresses anz.co.nz and nationalbank.co.nz.