Condensed Consolidated Financial Statements for Desklib

View the Condensed Consolidated Financial Statements for Desklib, including income statement, balance sheet, and cash flow statement. The report includes a review of operations, lead auditor's independence declaration, and significant events since balance date. The report also lists the Directors of the Company and the consolidated profit attributable to shareholders.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - TABLE OF CONTENTS
CONTENTS Page
Condensed Consolidated Income Statement 75
Condensed Consolidated Statement of Comprehensive Income 76
Condensed Consolidated Balance Sheet 77
Condensed Consolidated Cash Flow Statement 78
Condensed Consolidated Statement of Changes in Equity 79
Notes to Condensed Consolidated Financial Statements 80

DIRECTORS’ REPORT
The Directors present their report on the Condensed Consolidated Financial Statements for the half year ended 31 March 2018.
Directors
The names of the Directors of the Company who held office during and since the end of the half year are:
Mr DM Gonski, AC Chairman
Mr SC Elliott Director and Chief Executive Officer
Ms IR Atlas Director
Ms PJ Dwyer Director
Ms SJ Halton, AO PSM Director
Mr Lee Hsien Yang Director
Mr GR Liebelt Director
Rt Hon Sir JP Key, GNZM AC Director, appointed 28 February 2018
Mr JT MacFarlane Director
Result
The consolidated profit attributable to shareholders of the Company was $3,323 million, and consolidated profit attributable to shareholders of the
Company from continuing operations was $3,923 million. Further details are contained in Group Results on pages 17 to 41 which forms part of this report,
and in the Condensed Consolidated Financial Statements.
Review of operations
A review of the operations of the Group during the half year and the results of those operations are contained in the Group Results on pages 17 to 41
which forms part of this report.
Lead auditor’s independence declaration
The lead auditor’s independence declaration given under section 307C of the Corporations Act 2001 (as amended) is set out on page 108 which forms
part of this report.
Rounding of amounts
The amounts contained in these Condensed Consolidated Financial Statements have been rounded to the nearest million dollars, except where
otherwise indicated, as permitted by ASIC Corporations Instrument 2016/191.
Significant events since balance date
There have been no significant events from 31 March 2018 to the date of signing of this report.
Signed in accordance with a resolution of the Directors.

CONDENSED CONSOLIDATED INCOME STATEMENT
Australia and New Zealand Banking Group Limited
Half Year1 Movement
Note
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Interest income 14,849 14,694 14,426 1% 3%
Interest expense (7,499) (7,238) (7,007) 4% 7%
Net interest income 2 7,350 7,456 7,419 -1% -1%
Other operating income 2 2,430 1,885 1,704 29% 43%
Net funds management and insurance income 2 307 335 299 -8% 3%
Share of associates' profit 2, 17 88 127 173 -31% -49%
Operating income 10,175 9,803 9,595 4% 6%
Operating expenses 3 (4,411) (4,480) (4,487) -2% -2%
Profit before credit impairment and income tax 5,764 5,323 5,108 8% 13%
Credit impairment charge 9 (408) (479) (719) -15% -43%
Profit before income tax 5,356 4,844 4,389 11% 22%
Income tax expense 4 (1,426) (1,427) (1,447) 0% -1%
Profit after tax from continuing operations 3,930 3,417 2,942 15% 34%
Profit/(Loss) after tax from discontinued operations 11 (600) 85 (23) large large
Profit for the period 3,330 3,502 2,919 -5% 14%
Comprising:
Profit attributable to shareholders of the Company 3,323 3,495 2,911 -5% 14%
Profit attributable to non-controlling interests 7 7 8 0% -13%
Earnings per ordinary share (cents) including discontinued
operations
Basic 6 114.2 119.9 100.2 -5% 14%
Diluted 6 108.6 114.7 96.7 -5% 12%
Earnings per ordinary share (cents) from continuing operations
Basic 6 134.8 117.0 100.9 15% 34%
Diluted 6 127.4 112.0 97.4 14% 31%
Dividend per ordinary share (cents) 5 80 80 80 0% 0%
1. Information has been restated and presented on a continuing operations basis. Discontinued operations include OnePath pensions and investments and aligned dealer groups sale to IOOF
Holdings Limited and the life insurance sale to Zurich Financial Services Australia.
The notes appearing on pages 80 to 106 form an integral part of the Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Australia and New Zealand Banking Group Limited
Half Year1 Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v Sep 17
Mar 18
v Mar 17
Profit for the period from continuing operations 3,930 3,417 2,942 15% 34%
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss 27 2 24 large 13%
Items that may be reclassified subsequently to profit or loss
Foreign currency translation reserve 2 460 (59) (689) large large
Other reserve movements 174 (69) (228) large large
Income tax attributable to the above items (121) 18 (10) large large
Share of associates' other comprehensive income 3 (5) (1) 2 large large
Other comprehensive income after tax from continuing operations 535 (109) (901) large large
Profit/(Loss) after tax from discontinued operations (600) 85 (23) large large
Other comprehensive income after tax from discontinued operations 10 (1) (29) large large
Total comprehensive income for the period 3,875 3,392 1,989 14% 95%
Comprising total comprehensive income attributable to:
Shareholders of the Company 3,865 3,392 1,980 14% 95%
Non-controlling interests 10 - 9 n/a 11%
1. Information has been restated and presented on a continuing operations basis. Discontinued operations include OnePath pensions and investments and aligned dealer groups sale to IOOF
Holdings Limited and the life insurance sale to Zurich Financial Services Australia.
2. Includes foreign currency translation differences attributable to non-controlling interests of $3 million gain (Sep 17 half: $7 million loss; Mar 17 half: $1 million gain).
3. Share of associates’ other comprehensive income includes an available for sale revaluation reserve loss of $2 million (Sep 17 half: $3 million gain; Mar 17 half: $4 million loss) and a foreign
currency translation reserve loss of $3 million (Sep 17 half: $4 million loss; Mar 17 half: $6 million gain) that may be reclassified subsequently to profit or loss.
The notes appearing on pages 80 to 106 form an integral part of the Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED BALANCE SHEET
Australia and New Zealand Banking Group Limited
As at Movement
Assets Note
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Cash and cash equivalents 1 82,071 68,048 75,185 21% 9%
Settlement balances owed to ANZ 5,037 5,504 2,930 -8% 72%
Collateral paid 10,863 8,987 11,179 21% -3%
Trading securities 45,058 43,605 44,085 3% 2%
Derivative financial instruments 70,915 62,518 63,882 13% 11%
Available for sale assets 70,239 69,384 64,685 1% 9%
Net loans and advances 8 588,946 574,331 564,035 3% 4%
Regulatory deposits 1,229 2,015 2,154 -39% -43%
Assets held for sale 11 45,278 7,970 14,145 large large
Investment in associates 2,481 2,248 2,286 10% 9%
Current tax assets 15 30 242 -50% -94%
Deferred tax assets 840 675 572 24% 47%
Goodwill and other intangible assets 5,338 6,970 7,053 -23% -24%
Investments backing policy liabilities - 37,964 37,602 -100% -100%
Premises and equipment 1,892 1,965 1,979 -4% -4%
Other assets 4,914 5,112 4,497 -4% 9%
Total assets 935,116 897,326 896,511 4% 4%
Liabilities
Settlement balances owed by ANZ 10,577 9,914 9,736 7% 9%
Collateral received 9,395 5,919 5,189 59% 81%
Deposits and other borrowings 10 616,230 595,611 581,407 3% 6%
Derivative financial instruments 70,624 62,252 65,050 13% 9%
Current tax liabilities 371 241 185 54% large
Deferred tax liabilities 258 257 224 0% 15%
Liabilities held for sale 11 44,773 4,693 17,166 large large
Policy liabilities - 37,448 37,111 -100% -100%
External unit holder liabilities - 4,435 4,227 -100% -100%
Payables and other liabilities 7,442 8,350 8,054 -11% -8%
Provisions 1,110 1,158 1,179 -4% -6%
Debt issuances 12 114,836 107,973 109,075 6% 5%
Total liabilities 875,616 838,251 838,603 4% 4%
Net assets 59,500 59,075 57,908 1% 3%
Shareholders' equity
Ordinary share capital 27,933 29,088 29,036 -4% -4%

CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Australia and New Zealand Banking Group Limited
The Condensed Consolidated Cash Flow Statement includes cash flows associated with discontinued operations. Please refer to Note 11 for cash flows associated
with discontinued operations and cash and cash equivalents reclassified as held for sale.
Half Year
Inflows Inflows Inflows
(Outflows) (Outflows) (Outflows)
Mar 18
$M
Sep 17
$M
Mar 17
$M
Profit after income tax 3,330 3,502 2,919
Adjustments to reconcile to net cash provided by/(used in) operating activities:
Provision for credit impairment charge 408 479 719
Depreciation and amortisation 485 468 504
(Profit)/loss on sale of premises and equipment - - (114)
Net derivatives/foreign exchange adjustment 903 (1,833) (1,576)
(Gain)/loss on sale from divestments (469) (13) 554
Other non-cash movements (221) (157) (85)
Net (increase)/decrease in operating assets:
Collateral paid (1,725) 2,065 1,468
Trading securities (1,148) (1,994) 4,075
Net loans and advances (10,909) (11,424) (6,414)
Investments backing policy liabilities (881) (672) (1,450)
Other assets (643) 459 50
Net increase/(decrease) in operating liabilities:
Deposits and other borrowings 14,023 14,815 16,089
Settlement balances owed by ANZ 596 204 (831)
Collateral received 3,300 864 (1,174)
Life insurance contract policy liabilities 1,130 824 1,436
Other liabilities (28) 1,225 (1,010)
Total adjustments 4,821 5,310 12,241
Net cash provided by/(used in) operating activities 1 8,151 8,812 15,160
Cash flows from investing activities
Available for sale assets:
Purchases (13,483) (12,725) (14,495)
Proceeds from sale or maturity 12,670 7,224 12,527
Proceeds from divestments 2,044 (5,213) -
Other assets 1,026 (400) 252
Net cash provided by/(used in) investing activities 2,257 (11,114) (1,716)
Cash flows from financing activities
Debt issuances:
Issue proceeds 14,694 8,602 15,371
Redemptions (9,171) (7,533) (15,045)
Subordinated debt:
Issue proceeds (2) 1,155 -
Redemptions (573) (3,762) (1,069)
Dividends paid (2,104) (2,123) (2,087)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Australia and New Zealand Banking Group Limited
Ordinary
share
capital Reserves
Retained
earnings
Share capital
and reserves
attributable to
shareholders of
the Company
Non-
controlling
interests
Total
shareholders'
equity
$M $M $M $M $M $M
As at 1 October 2016 28,765 1,078 27,975 57,818 109 57,927
Profit or loss from continuing operations - - 2,934 2,934 8 2,942
Profit or loss from discontinued operations - - (23) (23) - (23)
Other comprehensive income for the period from continuing
operations - (922) 20 (902) 1 (901)
Other comprehensive income for the period from
discontinued operations - (29) - (29) - (29)
Total comprehensive income for the period - (951) 2,931 1,980 9 1,989
Transactions with equity holders in
their capacity as equity holders: 1
Dividends paid - - (2,300) (2,300) (1) (2,301)
Dividend income on treasury shares held within the Group's
life insurance statutory funds - - 14 14 - 14
Dividend reinvestment plan 199 - - 199 - 199
Other equity movements: 1
Treasury shares Wealth Australia adjustment 71 - - 71 - 71
Group employee share acquisition scheme 1 - - 1 - 1
Other items - (12) 20 8 - 8
As at 31 March 2017 29,036 115 28,640 57,791 117 57,908
Profit or loss from continuing operations - - 3,410 3,410 7 3,417
Profit or loss from discontinued operations - - 85 85 - 85
Other comprehensive income for the period from continuing
operations - (97) (5) (102) (7) (109)
Other comprehensive income for the period from
discontinued operations - (1) - (1) - (1)
Total comprehensive income for the period - (98) 3,490 3,392 - 3,392
Transactions with equity holders in
their capacity as equity holders: 1
Dividends paid - - (2,309) (2,309) - (2,309)
Dividend income on treasury shares held within the Group's
life insurance statutory funds - - 12 12 - 12
Dividend reinvestment plan 176 - - 176 - 176
Group share buy-back 2 (176) - - (176) - (176)
Other equity movements: 1
Treasury shares Wealth Australia adjustment (2) - - (2) - (2)
Group employee share acquisition scheme 55 - - 55 - 55
Other items (1) 20 1 20 (1) 19
As at 30 September 2017 29,088 37 29,834 58,959 116 59,075
Profit or loss from continuing operations - - 3,923 3,923 7 3,930
Profit or loss from discontinued operations - - (600) (600) - (600)
Other comprehensive income for the period from continuing
operations - 511 21 532 3 535
Other comprehensive income for the period from
discontinued operations - 10 - 10 - 10
Total comprehensive income for the period - 521 3,344 3,865 10 3,875

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
These Condensed Consolidated Financial Statements:
 have been prepared in accordance with the recognition and measurement requirements of Australian Accounting Standards (AASs);
 should be read in conjunction with ANZ’s Annual Financial Statements for the year ended 30 September 2017 and any public announcements made
by the Parent Entity and its controlled entities (the Group) for the half year ended 31 March 2018 in accordance with the continuous disclosure
obligations under the Corporations Act 2001 and the ASX Listing Rules;
 do not include all notes of the type normally included in ANZ’s Annual Financial Report;
 are presented in Australian dollars unless otherwise stated; and
 were approved by the Board of Directors on 30 April 2018.
i) Statement of Compliance
These Condensed Consolidated Financial Statements have been prepared in accordance with the Corporations Act 2001 and AASB 134 which ensures
compliance with IAS 34 Interim Financial Reporting.
ii) Accounting policies
These Condensed Consolidated Financial Statements have been prepared on the basis of accounting policies and using methods of computation
consistent with those applied in the 2017 ANZ Annual Financial Report.
Discontinued operations are excluded from the results of the continuing operations and are presented as a single line item ‘profit/(loss) after tax from
discontinued operations’ in the Condensed Consolidated Income Statement. Notes to the Condensed Consolidated Income Statement have been
restated and presented on a continuing basis. Assets and liabilities of discontinued operations have been presented as held for sale on the Condensed
Consolidated Balance Sheet as at 31 March 2018.
iii) Basis of measurement
The financial information has been prepared in accordance with the historical cost basis except that the following assets and liabilities are stated at their
fair value:
 derivative financial instruments as well as, in the case of fair value hedging, the fair value adjustment on the underlying hedged exposure;
 available for sale financial assets;
 financial instruments held for trading;
 other financial assets and liabilities designated at fair value through profit and loss; and
 assets and liabilities held for sale (except those at carrying value as per Note 11).
In accordance with AASB 1038 Life Insurance Contracts, life insurance liabilities are measured using the Margin on Services model.
In accordance with AASB 119 Employee Benefits, defined benefit obligations are measured using the Projected Unit Credit method.
iv) Use of estimates, assumptions and judgements
The preparation of these Condensed Consolidated Financial Statements requires the use of management judgement, estimates and assumptions that
affect reported amounts and the application of accounting policies. Discussion of the critical accounting estimates and judgements, which include
complex or subjective decisions or assessments are provided in the 2017 ANZ Annual Financial Report. Such estimates and judgements are reviewed on
an ongoing basis.
At 31 March 2018, the impairment assessment of non-lending assets identified that two of the Group’s associate investments (AMMB Holdings Berhad
(AmBank) and PT Bank Pan Indonesia (PT Panin) had indicators of impairment. Although their market value (based on share price) was below their
carrying value, no impairment was recognised as the carrying value was supported by their value in use (VIU).
The VIU calculation is sensitive to a number of key assumptions, including discount rate, long term growth rates, future profitability and capital levels. A
change in key assumptions could have an adverse impact on the recoverable amount of the investment. The key assumptions used in the VIU

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
vi) Future accounting developments
AASB 9 Financial Instruments (AASB 9)
AASB 9 is effective for the Group from 1 October 2018.
AASB 9 stipulates new requirements for the impairment of financial assets, classification and measurement of financial assets and liabilities and general
hedge accounting. Details of the key requirements and estimated impacts on the Group are outlined below.
Impairment
AASB 9 replaces the “incurred loss” impairment model under AASB 139 Financial Instruments: Recognition and Measurement (AASB 139) with an
“expected loss” model incorporating forward looking information. This model will be applied to all financial assets measured at amortised cost, debt
instruments measured at fair value through other comprehensive income, lease receivables, certain loan commitments and financial guarantees not
measured at fair value through profit or loss.
Under AASB 9, the following three-stage approach is applied to measuring expected credit losses (ECL) consequent to credit migration between the
stages:
• Stage 1: At the origination of a financial asset, and where there has not been a significant increase in credit risk since origination, a provision
equivalent to 12 months ECL is recognised.
• Stage 2: Where there has been a significant increase in credit risk since origination, a provision equivalent to lifetime ECL is recognised.
• Stage 3: Similar to the current AASB 139 requirements for individual impairment provisions, lifetime ECL is recognised for loans where there is
objective evidence of impairment.
Expected credit losses are estimated by using a probability of default reflecting a probability weighted range of possible future economic scenarios, and
applying this to the estimated exposure of the Group at the point of default (exposure at default) after taking into account the value of any collateral held
or other mitigants of loss (loss given default), while allowing for the impact of discounting for the time value of money.
Key judgements and estimates made by the Group include the following:
 Significant increase in credit risk
Stage 2 assets are those that have experienced a significant increase in credit risk (SICR) since initial recognition. In determining what constitutes a
SICR, the Group considers both qualitative and quantitative information. 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. The Group will also use secondary indicators, such as 30 days past due
arrears, as backstops to these primary indicators.
The determination of trigger points in relation to the deterioration of rating grades, combined with secondary risk indicators where used, requires
judgement. In determining the Group’s policy, alternative indicators have been considered and assessed, and these will be subject to regular review
to ensure they remain appropriate.
 Forward looking information
The measurement of expected credit losses needs to reflect an unbiased probability-weighted range of possible future outcomes. AASB 9 provides
limited guidance on how to meet this requirement and consequently the Group has developed an approach considered appropriate for its credit
portfolio informed by emerging market practices.
In applying forward looking information in the Group’s AASB 9 credit models, the Group intends to consider four alternative economic scenarios in
estimating ECL. A base case scenario reflects management’s base case assumptions used for medium term planning purposes. Additional upside
and downside scenarios are determined together with a severe downside scenario. The Group’s Credit and Market Risk Committee (CMRC) will be
responsible for reviewing and approving forecast economic scenarios and the associated probability weights applied to each scenario.
Where applicable, adjustments may be made to account for situations where known or expected risks have not been adequately addressed in the
modelling process. CMRC will be responsible for recommending such adjustments.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The resultant financial asset classifications are summarised in the following table:
Amortised Cost Fair Value through Other
Comprehensive Income
Fair Value through Profit or
Loss
Business Model Objective is to collect contractual
cash flows
Objective is to both collect
contractual cash flows and to sell
All other business models
Contractual cash flow
characteristics
Solely Payments of Principal and
Interest
Solely Payments of Principal and
Interest
All other contractual cash flow
characteristics
In December 2017, the AASB issued AASB 2017-6 Amendments to Australian Accounting Standards - Prepayment Features with Negative
Compensation [AASB 9] which amends the requirements of AASB 9 so that certain prepayment features meet the solely payments of principal and
interest test. The Group intends to early adopt this amendment so that it applies from the date of initial application of AASB 9.
Financial assets - equity instruments
AASB 9 also permits non-traded equity investments to be designated at FVOCI on an instrument by instrument basis. If this election is made under AASB
9, 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.
Financial liabilities
The classification and measurement requirements for financial liabilities under AASB 9 are largely consistent with AASB 139 with the exception that for
financial liabilities 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. This part of the standard was early adopted by the Group on 1 October 2013.
General hedge accounting
AASB 9 introduces new hedge accounting requirements which more closely align accounting with risk management activities undertaken when hedging
financial and non-financial risks.
AASB 9 provides the Group with an accounting policy choice to continue to apply the AASB 139 hedge accounting requirements until the International
Accounting Standards Board’s ongoing project on macro hedge accounting is completed. The Group’s current expectation is that it will continue to apply
the hedge accounting requirements of AASB 139.
Transition to AASB 9
Other than as noted above under classification and measurement of financial liabilities, AASB 9 has a date of initial application for the Group of 1 October
2018.
The classification and measurement, and impairment requirements, will be applied retrospectively by adjusting opening retained earnings at 1 October
2018. ANZ does not intend to restate comparatives.
Impact
Impairment
Based on the portfolio of in-scope financial assets held as at 30 September 2017, economic conditions prevailing at that time and management’s
judgements and estimates, the application of AASB 9 at that date would have resulted in:
 an aggregate of stage 1 and 2 expected credit loss provisions of between $2.9 billion and $3.2 billion. This represents an increase over the previous
collective provision in the range of $240 million and $540 million; and
 a reduction in the CET1 capital ratio in the range of 3 bps to 6 bps.
The actual impact at the date of initial application (1 October 2018) will differ reflecting the composition of the Group’s portfolio, prevailing economic and
business conditions, and management judgements and estimates which cannot be anticipated in advance.
The Group continues to refine its methodology and assumptions over the period until the initial application of the standard on 1 October 2018.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AASB 16 Leases (AASB 16)
The final version of AASB 16 was issued in February 2016 and is effective for the Group from 1 October 2019. AASB 16 requires a lessee to recognise
its:
 right to use the underlying leased asset, as a right-of-use asset; and
 obligation to make lease payments as a lease liability.
AASB 16 substantially carries forward the lessor accounting requirements in AASB 117 Leases (AASB 117).
The Group is in the process of assessing the impact of the application of AASB 16 and is not yet able to reasonably estimate the impact on its financial
statements.
AASB 17 Insurance Contracts (AASB 17)
The final version of AASB 17 was issued in July 2017 and is effective for the Group from 1 October 2021. It will replace AASB 4 Insurance Contracts,
AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts. AASB 17 establishes principles for the recognition, measurement,
presentation and disclosure of insurance contracts.
The measurement, presentation and disclosure requirements under AASB 17 are significantly different from current accounting standards. Although the
overall profit recognised in respect of insurance contracts will not change, it is expected that the timing of profit recognition will change.
The Group is not yet able to reasonably estimate the impact of AASB 17 on its financial statements.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
2. Income
Half Year1 Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Interest income 14,849 14,694 14,426 1% 3%
Interest expense (7,322) (7,152) (7,007) 2% 4%
Major bank levy (177) (86) - large n/a
Net interest income 7,350 7,456 7,419 -1% -1%
i) Fee and commission income
Lending fees2 348 363 369 -4% -6%
Non-lending fees and commissions 1,429 1,475 1,518 -3% -6%
Fee and commission income 1,777 1,838 1,887 -3% -6%
Fee and commission expense (625) (611) (661) 2% -5%
Net fee and commission income 1,152 1,227 1,226 -6% -6%
ii) Other income
Net foreign exchange earnings and other financial instruments income 3 770 578 867 33% -11%
Gain on sale of 100 Queen Street, Melbourne - - 114 n/a -100%
Sale of Asia Retail and Wealth businesses 99 14 (324) large large
Sale of SRCB 233 (1) (230) large large
Sale of MCC 119 - - n/a n/a
Other4 57 67 51 -15% 12%
Other income 1,278 658 478 94% large
Other operating income 2,430 1,885 1,704 29% 43%
iii) Net funds management and insurance income
Funds management income 142 159 162 -11% -12%
Investment income 1 3 14 -67% -93%
Insurance premium income 183 211 213 -13% -14%
Commission expense (11) (27) (20) -59% -45%
Claims (31) (29) (20) 7% 55%
Changes in policy liabilities 23 18 (50) 28% large
Net funds management and insurance income 307 335 299 -8% 3%
iv) Share of associates' profit 88 127 173 -31% -49%
Operating income 10,175 9,803 9,595 4% 6%
1. Information has been restated and presented on a continuing operations basis.
2. Lending fees exclude fees treated as part of the effective yield calculation in interest income.
3. 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
on funding instruments, ineffective portions of cash flow hedges, and fair value movements in financial assets and liabilities designated at fair value through profit and loss.
4. Other income includes external dividend income of nil (Sep 17 half: $27.3 million; Mar 17 half: nil).

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. Operating expenses
Half Year1 Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
i) Personnel
Salaries and related costs 2,133 2,117 2,215 1% -4%
Superannuation costs 149 150 153 -1% -3%
Other 120 138 151 -13% -21%
Personnel expenses 2,402 2,405 2,519 0% -5%
ii) Premises
Rent 232 252 248 -8% -6%
Other 163 178 184 -8% -11%
Premises expenses 395 430 432 -8% -9%
iii) Technology
Depreciation and amortisation 368 348 373 6% -1%
Licences and outsourced services 327 332 301 -2% 9%
Other 120 123 125 -2% -4%
Technology expenses 815 803 799 1% 2%
iv) Restructuring 78 26 36 large large
v) Other
Advertising and public relations 99 125 114 -21% -13%
Professional fees 259 252 177 3% 46%
Freight, stationery, postage and telephone [phone]% -8%
Other 247 307 284 -20% -13%
Other expenses 721 816 701 -12% 3%
Operating expenses 4,411 4,480 4,487 -2% -2%
1. Information has been restated and presented on a continuing operations basis.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4. Income tax expense
Reconciliation of the prima facie income tax expense on pre-tax profit with the income tax expense recognised in the profit and loss.
Half Year1 Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Profit before income tax 5,356 4,844 4,389 11% 22%
Prima facie income tax expense at 30% 1,607 1,453 1,317 11% 22%
Tax effect of permanent differences:
Sale of MCC (37) - - n/a n/a
Share of associates' profit (26) (38) (52) -32% -50%
Sale of SRCB (84) 16 156 large large
Interest on Convertible Instruments 34 34 35 0% -3%
Overseas tax rate differential (48) (32) (5) 50% large
Tax provisions no longer required (23) - - n/a n/a
Other 3 12 (3) -75% large
1,426 1,445 1,448 -1% -2%
Income tax over provided in previous years - (18) (1) -100% -100%
Income tax expense 1,426 1,427 1,447 0% -1%
Australia 949 1,007 1,010 -6% -6%
Overseas 477 420 437 14% 9%
Income tax expense 1,426 1,427 1,447 0% -1%
Effective tax rate 26.6% 29.5% 33.0%
1. Information has been restated and presented on a continuing operations basis.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
5. Dividends
Dividend per ordinary share (cents) - including discontinued operations Half Year Movement
Mar 18 Sep 17 Mar 17
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Interim (fully franked) 80 - 80 n/a 0%
Final (fully franked) - 80 - n/a n/a
Total 80 80 80 0% 0%
Ordinary share dividend ($M) 1
Interim dividend - 2,349 - n/a n/a
Final dividend 2,350 - 2,342 n/a 0%
Bonus option plan adjustment (42) (40) (42) 5% 0%
Total 2,308 2,309 2,300 0% 0%
Ordinary share dividend payout ratio (%)2 69.6% 67.2% 80.7%
1. Dividends paid to ordinary equity holders of the Company. Excludes dividends paid by subsidiaries of the Group to non-controlling equity holders (Mar 18 half: nil; Sep 17 half: nil; Mar 17
half: $1.3 million).
2. Dividend payout ratio is calculated using the proposed 2018 interim dividend of $2,313 million (not shown in the above table). The proposed 2018 interim dividend of $2,313 million is based
on the forecast number of ordinary shares on issue at the dividend record date. Dividend payout ratios for the September and March 2017 half year are calculated using actual dividends
paid of $2,350 million and $2,349 million respectively.
Ordinary Shares
The Directors propose that an interim dividend of 80 cents be paid on each eligible fully paid ANZ ordinary share on 2 July 2018. The 2018 interim
dividend will be fully franked for Australian tax purposes, and New Zealand imputation credits of NZ 9 cents per ordinary share will also be attached.
ANZ has a Dividend Reinvestment Plan (DRP) and a Bonus Option Plan (BOP) that will operate in respect of the proposed 2018 interim dividend. For the
2018 interim dividend, ANZ intends to provide shares under the DRP through an on-market purchase and BOP through the issue of new shares. The
“Acquisition Price” to be used in determining the number of shares to be provided under the DRP and BOP will be calculated by reference to the
arithmetic average of the daily volume weighted average sale price of all fully paid ANZ ordinary shares sold in the ordinary course of trading on ASX and
Chi-X during the ten trading days commencing on 18 May 2018, and then rounded to the nearest whole cent. Shares provided under the DRP and BOP
will rank equally in all respects with existing fully paid ANZ ordinary shares. Election notices from shareholders wanting to commence, cease or vary their
participation in the DRP or BOP for the 2018 interim dividend must be received by ANZ's Share Registrar by 5.00pm (Australian Eastern Standard Time)
on 16 May 2018.
Subject to receiving effective contrary instructions from the shareholder, dividends payable to shareholders with a registered address in the United
Kingdom (including the Channel Islands and the Isle of Man) or New Zealand will be converted to Pounds Sterling or New Zealand Dollars respectively at
an exchange rate calculated on 18 May 2018.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6. Earnings per share
Half Year Movement
Mar 18 Sep 17 Mar 17
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Earnings Per Share (EPS) - Basic
Earnings Per Share (cents) 1 114.2 119.9 100.2 -5% 14%
Earnings Per Share (cents) from continuing operations 134.8 117.0 100.9 15% 34%
Earnings Per Share (cents) from discontinued operations (20.6) 2.9 (0.8) large large
Earnings Per Share (EPS) - Diluted
Earnings Per Share (cents) 108.6 114.7 96.7 -5% 12%
Earnings Per Share (cents) from continuing operations 127.4 112.0 97.4 14% 31%
Earnings Per Share (cents) from discontinued operations (18.8) 2.7 (0.7) large large
Reconciliation of earnings used in EPS Calculations
Basic:
Profit for the period ($M) 3,330 3,502 2,919 -5% 14%
Less: profit attributable to non-controlling interests ($M) 7 7 8 0% -13%
Earnings used in calculating basic earnings per share ($M) 3,323 3,495 2,911 -5% 14%
Less: Profit/(Loss) after tax from discontinued operations ($M) (600) 85 (23) large large
Earnings used in calculating basic earnings per share from continuing operations
($M) 3,923 3,410 2,934 15% 34%
Diluted:
Earnings used in calculating basic earnings per share ($M) 3,323 3,495 2,911 -5% 14%
Add: interest on convertible subordinated debt ($M) 141 140 148 1% -5%
Earnings used in calculating diluted earnings per share ($M) 3,464 3,635 3,059 -5% 13%
Less: Profit/(Loss) after tax from discontinued operations ($M) (600) 85 (23) large large
Earnings used in calculating diluted earnings per share from continuing operations
($M) 4,064 3,550 3,082 14% 32%
Reconciliation of weighted average number of ordinary shares (WANOS) used in
EPS calculations2
WANOS used in calculating basic earnings per share 2,909.6 2,914.0 2,906.6 0% 0%
Add: Weighted average dilutive potential ordinary shares (M)
Convertible subordinated debt (M) 269.7 243.0 247.1 11% 9%
Share based payments (options, rights and deferred shares) (M) 10.0 11.5 10.0 -13% 0%
Adjusted weighted average number of shares - diluted (M) 3,189.3 3,168.5 3,163.7 1% 1%
1. Post disposal of the discontinued operations, treasury shares held in Wealth Australia will cease to be eliminated in the Group’s consolidated financial statements and will be included in the
denominator used in calculating earnings per share. If the weighted average number of treasury shares held in Wealth Australia was included in the denominator used in calculating
earnings per share from continuing operations for the half year ended 31 March 2018, basic earnings per share would have been 134.1 cents (Sep 17 half: 116.4 cents; Mar 17 half: 100.4
cents) and diluted earnings per share would have been 126.8 cents (Sep 17 half: 111.5 cents; Mar 17 half: 96.9 cents).
2. Weighted average number of ordinary shares excludes the weighted average number of treasury shares held in ANZEST and Wealth Australia as summarised in the table below:
Mar 18 half
(Million)
Sep 17 half
(Million)
Mar 17 half
(Million)
ANZEST Pty Ltd 6.3 7.5 8.8

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
7. Segment analysis
i) Description of segments
The Group operates on a divisional structure with six continuing divisions: Australia, New Zealand, Institutional, Asia Retail & Pacific, Wealth Australia,
and Technology, Services & Operations (TSO) and Group Centre. For further information on the composition of divisions refer to the Definitions on page
121.
During the March 2018 half:
 the Group transferred Wealth Australia businesses to be divested and associated Group reclassification and consolidation impacts to discontinued
operations;
 the Corporate business, formerly part of the Corporate and Commercial Banking business within the Australia division, was transferred to the
Institutional division;
 the residual Asia Retail and Wealth businesses in Philippines, Japan and Cambodia not sold as part of the Asia Retail and Wealth divestment have
been transferred to the Institutional division; and
 the Group made a further realignment by transferring Group Hub’s divisional specific operations in TSO and Group Centre to the respective divisions.
As these costs were previously recharged, there is no change to previously reported divisional cash profit. Divisional full time equivalents (FTEs)
have been restated to reflect this change.
Other than the changes described above, there have been no other significant structural changes during the year. However, certain prior period
comparatives have been restated to align with current period presentation. The divisions reported below are consistent with internal reporting provided to
the chief operating decision maker, being the Chief Executive Officer.
ANZ measures the performance of continuing segments on a cash profit basis. To calculate cash profit, certain non-core items are removed from
statutory profit. Details of these items are included in the ‘Other items’ section of this note. Transactions between business units across segments within
ANZ are conducted on an arm’s-length basis and disclosed as part of the income and expenses of these segments. For information on discontinued
operations please refer to Note 11. The retained Wealth Australia business includes lenders mortgage insurance, share investing, financial planning and
general insurance distribution.
ii) Operating segments Half Year1 Movement
Operating Income
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Australia 4,863 4,784 4,651 2% 5%
Institutional 2,544 2,575 3,055 -1% -17%
New Zealand 1,616 1,595 1,577 1% 2%
Wealth Australia 186 189 204 -2% -9%
Asia Retail & Pacific 303 428 166 -29% 83%
TSO and Group Centre 296 269 323 10% -8%
Subtotal 9,808 9,840 9,976 0% -2%
Other2 367 (37) (381) large large
Group total 10,175 9,803 9,595 4% 6%
Half Year1 Movement
Profit
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Australia 1,915 1,857 1,759 3% 9%
Institutional 793 859 1,065 -8% -26%
New Zealand 726 692 677 5% 7%
Wealth Australia 44 37 58 19% -24%

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
7. Segment analysis, cont’d
iii) Other items
The table below sets out the profit after tax impact of other items which are removed from statutory profit to reflect the cash profit of each segment.
Half Year1 Movement
Item gains/(losses) Related segment
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Revaluation of policy liabilities New Zealand 10 8 (33) 25% large
Economic hedges Institutional, TSO and Group Centre 124 (31) (178) large large
Revenue hedges TSO and Group Centre (40) (6) 105 large large
Structured credit intermediation trades Institutional 3 2 1 50% large
Sale of SRCB TSO and Group Centre 333 (17) (316) large large
Total profit after tax from continuing operations 430 (44) (421) large large
1. Information has been restated and presented on a continuing operations basis.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
8. Net loans and advances
As at Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Australia
Overdrafts 5,843 5,939 5,786 -2% 1%
Credit cards outstanding 8,629 8,632 8,846 0% -2%
Commercial bills outstanding 7,467 8,471 9,232 -12% -19%
Term loans - housing 270,631 264,105 255,721 2% 6%
Term loans - non-housing 125,901 124,307 123,464 1% 2%
Lease receivables 1,072 1,153 1,084 -7% -1%
Hire purchase contracts 893 634 641 41% 39%
Other 8 15 415 -47% -98%
Total Australia 420,444 413,256 405,189 2% 4%
Asia Pacific, Europe & America
Overdrafts 538 449 743 20% -28%
Credit cards outstanding 13 869 1,351 -99% -99%
Term loans - housing 729 2,469 6,501 -70% -89%
Term loans - non-housing 1 53,971 50,901 52,131 6% 4%
Lease receivables 210 117 163 79% 29%
Other 17 34 320 -50% -95%
Total Asia Pacific, Europe & America 55,478 54,839 61,209 1% -9%
New Zealand
Overdrafts 809 957 1,158 -15% -30%
Credit cards outstanding 1,558 1,508 1,503 3% 4%
Term loans - housing 73,751 70,735 68,592 4% 8%
Term loans - non-housing 41,306 40,697 40,247 1% 3%
Lease receivables 182 189 198 -4% -8%
Hire purchase contracts 1,411 1,263 1,115 12% 27%
Total New Zealand 119,017 115,349 112,813 3% 5%
Sub-total 594,939 583,444 579,211 2% 3%
Unearned income (441) (411) (458) 7% -4%
Capitalised brokerage/mortgage origination fees 2 1,044 1,058 1,040 -1% 0%
Customer liability for acceptances 3 - - 565 n/a -100%
Gross loans and advances (including assets reclassified as held for sale) 595,542 584,091 580,358 2% 3%
Provision for credit impairment (refer to Note 9) (3,595) (3,798) (4,054) -5% -11%
Net loans and advances (including assets reclassified as held for sale) 591,947 580,293 576,304 2% 3%
Net loans and advances held for sale (refer to Note 11) (3,001) (5,962) (12,269) -50% -76%

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
9. Provision for credit impairment
Half Year Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Individual provision
Balance at start of period 1,136 1,269 1,307 -10% -13%
New and increased provisions 728 948 1,121 -23% -35%
Write-backs (191) (280) (221) -32% -14%
Adjustment for exchange rate fluctuations and transfers 5 (2) (12) large large
Discount unwind (7) (8) (24) -13% -71%
Bad debts written-off (651) (791) (902) -18% -28%
Asia Retail and Wealth businesses divestment (4) - - n/a n/a
Total individual provision 1,016 1,136 1,269 -11% -20%
Collective provision
Balance at start of period 2,662 2,785 2,876 -4% -7%
Charge/(Release) to Income Statement (22) (75) (67) -71% -67%
Adjustment for exchange rate fluctuations and transfers 18 (9) (24) large large
Asia Retail and Wealth businesses divestment (79) (39) - large n/a
Total collective provision 1 2,579 2,662 2,785 -3% -7%
Total provision for credit impairment 3,595 3,798 4,054 -5% -11%
1. The collective provision includes amounts for off-balance sheet credit exposures of $522 million as at 31 March 2018 (Sep 17: $544 million; Mar 17: $574 million). The impact on the Income
Statement for the half year ended 31 March 2018 was a $26 million release (Sep 17 half: $20 million release; Mar 17 half: $46 million release).
Half Year Movement
Provision movement analysis
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
New and increased individual provisions 728 948 1,121 -23% -35%
Write-backs (191) (280) (221) -32% -14%
537 668 900 -20% -40%
Recoveries of amounts previously written-off (107) (114) (114) -6% -6%
Individual credit impairment charge 430 554 786 -22% -45%
Collective credit impairment charge/(release) (22) (75) (67) -71% -67%
Credit impairment charge 408 479 719 -15% -43%

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
10. Deposits and other borrowings
As at Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Australia
Certificates of deposit 43,157 50,565 51,875 -15% -17%
Term deposits 75,116 72,679 72,471 3% 4%
On demand and short term deposits 191,228 190,480 179,928 0% 6%
Deposits not bearing interest 10,548 10,221 9,268 3% 14%
Deposits from banks and securities sold under repurchase agreements 37,718 35,896 37,824 5% 0%
Commercial paper 21,658 14,599 6,786 48% large
Total Australia 379,425 374,440 358,152 1% 6%
Asia Pacific, Europe & America
Certificates of deposit 5,234 2,894 4,629 81% 13%
Term deposits 77,335 78,863 90,449 -2% -14%
On demand and short term deposits 19,557 21,769 23,468 -10% -17%
Deposits not bearing interest 4,362 4,519 4,650 -3% -6%
Deposits from banks and securities sold under repurchase agreements 30,756 23,251 24,765 32% 24%
Total Asia Pacific, Europe & America 137,244 131,296 147,961 5% -7%
New Zealand
Certificates of deposit 1,897 1,763 924 8% large
Term deposits 44,810 41,829 40,236 7% 11%
On demand and short term deposits 39,580 38,143 38,762 4% 2%
Deposits not bearing interest 9,334 8,173 7,832 14% 19%
Deposits from banks and securities sold under repurchase agreements 1,543 145 662 large large
Commercial paper and other borrowings 3,297 4,380 3,888 -25% -15%
Total New Zealand 100,461 94,433 92,304 6% 9%
Total deposits and other borrowings (including liabilities reclassified as held for sale) 617,130 600,169 598,417 3% 3%
Deposits and other borrowings held for sale (refer to Note 11) (900) (4,558) (17,010) -80% -95%
Total deposits and other borrowings 616,230 595,611 581,407 3% 6%

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
11. Discontinued operations and assets and liabilities held for sale
i) Discontinued operations
On 17 October 2017, the Group announced it had agreed to sell OnePath pensions and investments (OnePath P&I) and aligned dealer groups (ADG)
business to IOOF Holdings Limited (IOOF). The aligned dealer groups business consists of aligned advice businesses that operate under their own
Australian Financial Services licences. Completion is expected in the first half of the 2019 financial year, subject to certain conditions including regulatory
approvals and completing the extraction of the OnePath P&I business from OnePath Life Insurance.
On 12 December 2017, ANZ announced that it had agreed to the sale of its life insurance business to Zurich Financial Services Australia (Zurich) to
further simplify ANZ’s Wealth Australia division. The transaction is subject to closing conditions and regulatory approval and ANZ expects it to close in the
first half of the 2019 financial year.
As a result of the sale transactions outlined above, the financial results of the businesses to be divested and associated Group reclassification and
consolidation impacts are treated as discontinued operations from a reporting perspective. This impacts the current and comparative financial information
for Wealth Australia and TSO and Group Centre divisions.
Income Statement
Half Year Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Net interest income - - (3) n/a -100%
Other operating income 1 (655) 5 6 large large
Net funds management and insurance income 426 469 398 -9% 7%
Operating income (229) 474 401 large large
Operating expenses (243) (237) (244) 3% 0%
Profit/(Loss) before income tax (472) 237 157 large large
Income tax expense (128) (152) (180) -16% -29%
Profit/(Loss) for the period attributable to shareholders of the Company (600) 85 (23) large large
1. Includes a $632 million loss relating to the reclassification of Wealth Australia businesses to held for sale.
Cash Flow Statement
Half Year Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Net cash provided by/(used in) operating activities 924 558 799 66% 16%
Net cash provided by/(used in) investing activities (1,133) (492) (1,675) large -32%
Net cash provided by/(used in) financing activities 179 (64) 864 large -79%
Net cash provided by/(used in) (30) 2 (12) large large
ii) Assets and liabilities held for sale
At 31 March 2018, assets and liabilities held for sale are re-measured at the lower of their existing carrying amount and fair value less costs to sell,
except for assets such as deferred tax assets, financial assets and contractual rights under insurance contracts, which are specifically exempt from this
requirement and continue to be recognised at their existing carrying value.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
95
Assets and liabilities held for sale1
As at 31 Mar 2018 As at 30 Sep 2017 As at 31 Mar 2017
Discontinued
operations
$M
UDC
and Paymark
$M
Metrobank
Card
Corporation
$M
Total
$M
Asia Retail
and Wealth
businesses
$M
UDC
$M
Shanghai
Rural
Commercial
Bank
$M
Metrobank
Card
Corporation
$M
Total
$M
Asia Retail
and Wealth
businesses
$M
UDC
$M
Shanghai
Rural
Commercial
Bank
$M
Total
$M
Cash and cash equivalents 5 - - 5 - - - - - - - - -
Derivative financial instruments 1 - - 1 - - - - - - - - -
Available for sale assets 1,040 - - 1,040 - - - - - - - - -
Net loans and advances 118 2,883 - 3,001 3,283 2,679 - - 5,962 9,776 2,493 - 12,269
Investment in associates 1 7 60 68 - - 1,748 120 1,868 - - 1,735 1,735
Deferred tax assets 72 - - 72 - - - - - - - - -
Goodwill and other intangible assets 946 124 - 1,070 - 122 - - 122 - 118 - 118
Investments backing policy liabilities 38,803 - - 38,803 - - - - - - - - -
Premises and equipment 5 - - 5 - - - - - - - - -
Other assets 1,198 15 - 1,213 - 18 - - 18 - 23 - 23
Total assets held for sale 42,189 3,029 60 45,278 3,283 2,819 1,748 120 7,970 9,776 2,634 1,735 14,145
Deposits and other borrowings - 900 - 900 3,602 956 - - 4,558 15,818 1,192 - 17,010
Current tax liabilities (158) 36 - (122) - 22 - - 22 - 31 - 31
Deferred tax liabilities 387 (9) - 378 - (8) - - (8) - - - -
Policy liabilities 38,381 - - 38,381 - - - - - - - - -
External unit holder liabilities 4,618 - - 4,618 - - - - - - - - -
Payables and other liabilities 560 28 - 588 47 30 - - 77 44 30 - 74
Provisions 29 1 - 30 43 1 - - 44 50 1 - 51
Total liabilities held for sale 43,817 956 - 44,773 3,692 1,001 - - 4,693 15,912 1,254 - 17,166
1. Amounts in the table above are shown net of intercompany balances.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
11. Discontinued operations and assets and liabilities held for sale, cont’d
Other strategic divestments presented as assets and liabilities held for sale in the prior periods:
 Asia Retail and Wealth Businesses
The Group announced that it had agreed to sell Retail and Wealth businesses in Singapore, Hong Kong, China, Taiwan and Indonesia to
Singapore’s DBS Bank on 31 October 2016, and its Retail business in Vietnam to Shinhan Bank Vietnam on 21 April 2017. The Group successfully
completed the transition of businesses in China, Singapore and Hong Kong in the September 2017 half, and Vietnam, Taiwan, and Indonesia in the
March 2018 half. These businesses were part of the Asia Retail & Pacific division.
 UDC Finance (UDC) and Paymark Limited (Paymark)
On 11 January 2017, the Group announced that it had entered into a conditional agreement to sell UDC to HNA Group (HNA). On 21 December
2017, the Group announced that it had been informed that New Zealand’s Overseas Investment Office had declined HNA’s application to acquire
UDC and the agreement with HNA was terminated in January 2018.
On 20 March 2018, the Group announced that it was continuing to examine a broad range of options for UDC’s future including an Initial Public
Offering (IPO) and trade sale. As a result of the ongoing process, the assets and liabilities of UDC continue to meet the criteria to be reclassified to
held for sale as at 31 March 2018.
On 17 January 2018, the Group entered into an agreement to sell its 25% shareholding in Paymark to Ingenico Group. The carrying amount of the
Group’s investment in Paymark at 31 March 2018 is $7 million and the asset is reclassified to held for sale. The transaction is subject to regulatory
consents. These businesses are part of the New Zealand division.
 Shanghai Rural Commercial Bank
On 3 January 2017, the Group announced it had agreed to sell its 20% stake in Shanghai Rural Commercial Bank (SRCB). On 18 September 2017,
the Group announced a revision to the 3 January 2017 arrangement in which Baoshan Iron & Steel Co. Ltd. (Bao) replaced Shanghai Sino-Poland
Enterprise Management Development Corporation Limited to join China COSCO Shipping Corporation Limited (COSCO) to acquire ANZ’s 20%
stake in SRCB. Under the updated arrangement, COSCO and Bao each acquired a 10% stake in SRCB. The key financial terms of the revised sale
agreement were unchanged from the original transaction announcement. The sale was completed in the March 2018 half. This asset was part of the
TSO and Group Centre division.
 Metrobank Card Corporation
On 18 October 2017, the Group announced it had entered into an agreement with its joint venture partner Metropolitan Bank & Trust Company
(Metrobank) in relation to its 40% stake in the Philippines based Metrobank Card Corporation (MCC). The Group agreed to sell 20% of its stake, and
entered into a put option to sell the remaining 20% stake, exercisable in the fourth quarter of 2018 on the same terms for the same consideration.
The first 20% stake sale was completed in the March 2018 half. This asset is part of the TSO and Group Centre division.
Income Statement impact relating to assets and liabilities held for sale
During the March 2018 half year, the Group recognised the following impacts in relation to assets and liabilities held for sale:
 $632 million loss relating to the reclassification of the Wealth Australia business to held for sale, comprising a $277 million impairment, and $355
million of costs (net of tax) associated with the sale. This loss is recognised in discontinued operations.
 $85 million gain relating to the sale of the remaining Asia Retail and Wealth businesses, net of costs associated with the sale including $14 million of
tax expenses. This gain is recognised in continuing operations.
 $18 million gain relating to UDC comprising a cost recovery in respect of the terminated transaction process. This gain is recognised in continuing
operations.
 $247 million net gain relating to SRCB comprising a $289 million gain on release of reserves, $56 million of foreign exchange losses and other costs,
and a $14 million adjustment for tax. This gain is recognised in continuing operations.
 $121 million net gain relating to MCC comprising a $121 million gain on sale of the first 20% stake, $1 million of foreign exchange gains, $3 million

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
12. Debt issuances
Half Year Movement
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Total unsubordinated debt 97,576 90,263 88,778 8% 10%
Additional Tier 1 Capital 1
Convertible Preference Shares (ANZ CPS)
ANZ CPS32 - 573 1,340 -100% -100%
ANZ Capital Notes (ANZ CN)
ANZ CN13 1,117 1,116 1,116 0% 0%
ANZ CN24 1,604 1,604 1,603 0% 0%
ANZ CN35 961 963 962 0% 0%
ANZ CN46 1,609 1,608 1,607 0% 0%
ANZ CN57 924 925 - 0% n/a
ANZ Capital Securities 8 1,188 1,206 1,218 -1% -2%
ANZ NZ Capital Notes 9 467 457 454 2% 3%
Tier 2 Capital10
Perpetual subordinated notes 1,174 1,150 1,156 2% 2%
Term subordinated notes 8,216 8,108 10,841 1% -24%
Total subordinated debt 17,260 17,710 20,297 -3% -15%
Total debt issuances 114,836 107,973 109,075 6% 5%
1. ANZ Capital Notes, ANZ Capital Securities and the ANZ NZ Capital Notes are Basel 3 compliant instruments.
2. On 28 September 2011, ANZ issued $1,340 million of convertible preference shares (CPS3). On 28 September 2017, ANZ bought back and cancelled $767 million of CPS3 and on 1 March
2018 ANZ repaid all remaining CPS3 for their issue price of $100 each.
3. On 7 August 2013, ANZ issued capital notes (CN1) which will convert into ANZ ordinary shares on 1 September 2023 at a 1% discount (subject to certain conditions being satisfied). If
ANZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZ receives a notice of non-viability from APRA, then the notes will immediately convert into ANZ ordinary
shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 1 September 2021 the notes are redeemable or convertible to ANZ ordinary shares (on
similar terms to mandatory conversion) by ANZ.
4. On 31 March 2014, ANZ issued capital notes (CN2) which will convert into ANZ ordinary shares on 24 March 2024 at a 1% discount (subject to certain conditions being satisfied). If ANZ’s
Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZ receives a notice of non-viability from APRA, then the notes will immediately convert into ANZ ordinary shares at
a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 24 March 2022 the notes are redeemable or convertible into ANZ ordinary shares (on similar
terms to the mandatory conversion) by ANZ.
5. On 5 March 2015, ANZ acting through its New Zealand Branch issued capital notes (CN3) which will convert into ANZ ordinary shares on 24 March 2025 at a 1% discount (subject to certain
conditions being satisfied). If ANZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZ receives a notice of non-viability from APRA, then the notes will immediately
convert into ANZ ordinary shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 24 March 2023 the notes are redeemable or convertible into
ANZ ordinary shares (on similar terms to the mandatory conversion) by ANZ.
6. On 27 September 2016, ANZ issued capital notes (CN4) which will convert into ANZ ordinary shares on 20 March 2026 at a 1% discount (subject to certain conditions being satisfied). If
ANZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZ receives a notice of non-viability from APRA, then the notes will immediately convert into ANZ ordinary
shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 20 March 2024 the notes are redeemable or convertible into ANZ ordinary shares (on
similar terms to the mandatory conversion) by ANZ.
7. On 28 September 2017, ANZ issued capital notes (CN5) which will convert into ANZ ordinary shares on 20 March 2027 at a 1% discount (subject to certain conditions being satisfied). If
ANZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125% or ANZ receives a notice of non-viability from APRA, then the notes will immediately convert into ANZ ordinary
shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 20 March 2025 the notes are redeemable or convertible into ANZ ordinary shares (on
similar terms to the mandatory conversion) by ANZ.
8. On 15 June 2016, ANZ acting through its London branch issued fully-paid perpetual subordinated contingent convertible securities (ANZ Capital Securities). If ANZ’s Common Equity Tier 1
capital ratio is equal to or less than 5.125%, or ANZ receives a notice of non-viability from APRA, then the securities will immediately convert into ANZ ordinary shares at a 1% discount
subject to a maximum conversion number. Subject to certain conditions, on the First Reset Date (15 June 2026) and each 5 year anniversary, ANZ has the right to redeem all of the
securities at its discretion.
9. On 31 March 2015, ANZ Bank New Zealand Limited (ANZ Bank NZ) issued convertible notes (ANZ NZ Capital Notes) which will convert into ANZ ordinary shares on 25 May 2022 at a 1%
discount (subject to certain conditions being satisfied). If ANZ or ANZ Bank NZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, ANZ receives a notice of non-viability
from APRA, ANZ Bank NZ receives a direction from RBNZ or a statutory manager is appointed to ANZ Bank NZ and makes a determination, then the notes will immediately convert into
ANZ ordinary shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 25 May 2020 the notes are redeemable or convertible into ANZ ordinary
shares (on similar terms to the mandatory conversion) by ANZ Bank NZ.
10. The convertible dated subordinated notes are Basel 3 compliant instruments. APRA has granted transitional capital treatment for all other outstanding subordinated notes until their first call
date or, in the case of the perpetual subordinated notes the earlier of the end of the transitional period (December 2021) and the first call date when a step-up event occurs. If ANZ receives
a notice of non-viability from APRA, then the convertible subordinated notes will immediately convert into ANZ ordinary shares at a 1% discount subject to a maximum conversion number.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
13. Credit risk
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 the group would have to pay if the instrument is called upon.
The table below shows the maximum exposure to credit risk of on-balance sheet, and off-balance sheet, positions before taking account of any collateral
held or other credit enhancements:
Reported Excluded/Other1,2 Maximum Exposure to Credit Risk
As at As at As at
On-balance sheet positions 3 Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
$M
Sep 17
$M
Mar 17
$M
Net loans and advances 2 591,947 580,293 576,304 (548) (562) (590) 592,495 580,855 576,894
Other financial assets 329,365 307,789 304,820 50,524 50,472 47,684 278,841 251,317 257,136
Total other financial assets 921,312 888,082 881,124 49,976 49,910 47,094 871,336 832,172 834,030
Off-balance sheet positions
Undrawn and contingent facilities 2,4 233,527 232,162 236,054 548 562 590 232,979 231,600 235,464
Total 1,154,839 1,120,244 1,117,178 50,524 50,472 47,684 1,104,315 1,063,772 1,069,494
1. Excluded comprises bank notes and coins and cash at bank within liquid assets, equity securities within available-for-sale financial assets and investments relating to the insurance
business where the credit risk is passed onto the policy holder. In September 2017, equity securities and precious metal exposures recognised as trading securities and trade dated assets
recognised as settlement balances owed to ANZ have been excluded as they do not carry credit risk. Comparatives have been restated accordingly.
2. Other relates to the transfer of individual and collective provisions related to off-balance sheet facilities held in net loans and advances. The provisions are transferred for the purposes of
showing the maximum exposure to credit risk by relevant facility type in this and the following tables.
3. On-balance sheet positions include assets and liabilities reclassified as held for sale.
4. Undrawn facilities and contingent facilities includes guarantees, letters of credit and performance related contingencies.
Credit Quality
The table below provides an analysis of the credit quality of the maximum exposure to credit risk split by:
 Neither past due nor impaired assets by credit quality
The credit quality of financial assets is managed by the Group using internal customer credit ratings (CCRs) based on their current probability of
default. The Group’s masterscales are mapped to external rating agency scales, to enable wider comparisons.
 Past due but not impaired assets by ageing
Ageing analysis of past due loans is used by the Group to measure and manage emerging credit risks. Financial assets that are past due but not
impaired include those which are assessed, approved and managed on a portfolio basis within a centralised environment (for example credit cards
and personal loans) that can be held on a productive basis until they are 180 days past due, as well as those which are managed on an individual
basis. A large portion of retail credit exposures, such as residential mortgages, are generally well secured. That is, the value of supporting collateral
is sufficient to cover amounts outstanding.
 Restructured and impaired assets presented as gross amounts and net of individual provisions.
ANZ regularly reviews its portfolio and monitors adherence to contractual terms. When doubt arises as to the collectability of a credit facility, the
financial instrument (or ‘the facility’) is classified and reported as individually impaired and an individual provision is allocated against it.
As described in the summary of significant accounting policies in the 2017 Annual Financial Report, impairment provisions are created for financial

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
13. Credit risk, cont’d
Loans and advances Other financial assets
Off-balance sheet credit related
commitments
As at As at As at
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
$M
Sep 17
$M
Mar 17
$M
Neither past due nor impaired
Strong credit profile 1 427,729 410,343 435,778 274,815 246,774 252,646 194,393 190,083 193,658
Satisfactory risk 2 131,229 137,432 107,026 3,859 4,429 4,322 36,756 39,578 39,217
Sub-standard but not past due or impaired 3 16,767 16,879 17,101 167 114 158 1,761 1,858 2,520
Subtotal 575,725 564,654 559,905 278,841 251,317 257,126 232,910 231,519 235,395
Past due but not impaired
1-29 days 8,974 8,790 9,123 - - - - - -
30-59 days 2,576 2,143 2,355 - - - - - -
60-89 days 1,233 1,148 1,148 - - - - - -
>90 days 3,038 2,953 2,771 - - - - - -
Subtotal 15,821 15,034 15,397 - - - - - -
Restructured and impaired
Impaired loans 1,863 2,118 2,478 - - - - - -
Restructured items 4 76 167 367 - - - - - -
Non-performing commitment and
contingencies - - - - - - 95 99 85
Other - - - - - 10 - - -
Gross impaired financial assets 1,939 2,285 2,845 - - 10 95 99 85
Individual provisions (990) (1,118) (1,253) - - - (26) (18) (16)
Subtotal 949 1,167 1,592 - - 10 69 81 69
Total 592,495 580,855 576,894 278,841 251,317 257,136 232,979 231,600 235,464
1. Customers that have demonstrated superior stability in their operating and financial performance over the long-term, and whose debt servicing capacity is not significantly vulnerable to
foreseeable events. This rating broadly corresponds to ratings “Aaa” to “Baa3” and “AAA” to “BBB-” of Moody’s and Standard & Poor’s respectively. In 2018, collective provisions against
Satisfactory and Sub-standard risk, which previously had been allocated against Strong credit profile are now reallocated to Satisfactory and Sub-standard risk. Comparatives have been
restated accordingly.
2. Customers that have consistently demonstrated sound operational and financial stability over the medium to long term, even though some may be susceptible to cyclical trends or variability
in earnings. This rating broadly corresponds to ratings “Ba2” to “B1” and “BB” to “B+” of Moody’s and Standard & Poor’s respectively. In 2018, collective provisions against Satisfactory and
Sub-standard risk, which previously had been allocated against Strong credit profile are now reallocated to Satisfactory and Sub-standard risk. Comparatives have been restated
accordingly (Sep 17: Net loans and advances $585 million, Credit related commitments $187 million; Mar 17: Net loans and advances $550 million, Credit related commitments $186
million).
3. Customers that have demonstrated some operational and financial instability, with variability and uncertainty in profitability and liquidity projected to continue over the short and possibly
medium term. This rating broadly corresponds to ratings “B2” to “Caa” and “B” to “CCC” of Moody’s and Standard & Poor’s respectively. In 2018, collective provisions against Satisfactory
and Sub-standard risk, which previously had been allocated against Strong credit profile are now reallocated to Satisfactory and Sub-standard risk. Comparatives have been restated
accordingly (Sep 17: Net loans and advances $639 million, Credit related commitments $85 million; Mar 17: Net loans and advances $762 million, Credit related commitments $114 million).
4. Restructured items are facilities in which the original contractual terms have been modified for reasons related to the financial difficulties of the customer. Restructuring may consist of
reduction of interest, principal or other payments legally due, or an extension in maturity materially beyond those typically offered for new facilities with similar risk.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
14. Fair value measurement
The Group carries a significant number of financial instruments on the balance sheet at fair value. In addition the Group also holds assets classified as
held for sale which are measured at fair value less costs to sell. The 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.
i) Assets and liabilities measured at fair value on the balance sheet
a) Valuation
The Group has an established control framework, including appropriate segregation of duties, to ensure that fair values are accurately determined,
reported and controlled. The framework includes the following features:
 products are approved for transacting with external customers and counterparties only where fair values can be appropriately determined;
 when using quoted prices to value an instrument, these are independently verified from external pricing providers;
 fair value methodologies and inputs are evaluated and approved by a function independent of the party that undertakes the transaction;
 movements in fair values are independently monitored and explained by reference to underlying factors relevant to the fair value; and
 valuation adjustments (such as funding valuation adjustments, credit valuation adjustments and bid-offer adjustments) are independently validated
and monitored.
If the Group holds offsetting risk positions, then the Group uses the portfolio exception in AASB 13 Fair Value Measurement (AASB 13) to measure the
fair value of such groups of financial assets and financial liabilities. We measure 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.
b) 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 for that asset or liability exists. This includes the following:
Asset or Liability Fair Value Approach
Financial instruments classified as:
- trading securities
- securities short sold
- derivative financial assets and liabilities
- available-for-sale assets
- other assets
Valuation techniques are used that incorporate observable market inputs for securities
with similar credit risk, maturity and yield characteristics. Equity instruments that are not
traded in active markets may be measured using comparable company valuation
multiples.
Net loans and advances, deposits and other borrowings
and debt issuances
Discounted cash flow techniques are used whereby contractual future cash flows of the
instrument are discounted using discount rates incorporating wholesale market rates, or
market borrowing rates for debt with similar maturities or with a yield curve appropriate
for the remaining term to maturity.
Assets and liabilities held for sale Valuation based on the agreed sale price before transaction costs.
Details of significant unobservable inputs used in measuring fair values are described in (ii)(a) below.
c) Fair value hierarchy categorisation
The Group categorises financial assets and liabilities carried at fair value into a fair value hierarchy as required by AASB 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.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
14. Fair value measurement, cont’d
Fair value measurements
As at March 2018
Level 1
$M
Level 2
$M
Level 3
$M
Total
$M
Assets
Trading securities 1 38,517 6,541 - 45,058
Derivative financial instruments 259 70,593 63 70,915
Available for sale assets 1, 2 63,283 5,921 1,035 70,239
Net loans and advances (measured at fair value) - 145 - 145
Assets held for sale 3 - 42,544 - 42,544
Other assets 4 139 - 143
Total 102,063 125,883 1,098 229,044
Liabilities
Deposits and other borrowings (designated at fair value) - 2,470 - 2,470
Derivative financial instruments 1,008 69,570 46 70,624
Liabilities held for sale 3 - 43,817 - 43,817
Payables and other liabilities (measured at fair value) 5 1,884 161 - 2,045
Debt issuances (designated at fair value) - 1,785 - 1,785
Total 2,892 117,803 46 120,741
As at September 2017
Assets
Trading securities 1 40,435 3,170 - 43,605
Derivative financial instruments 433 61,996 89 62,518
Available for sale assets 1 61,694 7,479 211 69,384
Net loans and advances (measured at fair value) - 156 - 156
Investments backing policy liabilities 1 27,308 10,306 350 37,964
Assets held for sale 3 - 1,748 - 1,748
Total 129,870 84,855 650 215,375
Liabilities
Deposits and other borrowings (designated at fair value) - 3,497 - 3,497
Derivative financial instruments 275 61,900 77 62,252
Policy liabilities4 - 37,106 - 37,106
External unit holder liabilities (life insurance funds) - 4,435 - 4,435
Payables and other liabilities (measured at fair value) 5 1,726 166 - 1,892
Debt issuances (designated at fair value) - 1,752 - 1,752
Total 2,001 108,856 77 110,934
As at March 2017
Assets
Trading securities 1 40,714 3,371 - 44,085
Derivative financial instruments 378 63,407 97 63,882
Available for sale assets 1 58,353 6,111 221 64,685
Net loans and advances (measured at fair value) - 314 18 332
Investments backing policy liabilities 1 26,640 10,603 359 37,602
3

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
14. Fair value measurement, cont’d
ii) Details of fair value measurements that incorporate unobservable market data
a) Level 3 fair value measurements
The net balance of Level 3 financial instruments is an asset of $1,052 million (Sep 17: $573 million; Mar 17: $597 million). The financial instruments which
incorporate significant unobservable inputs primarily include:
 structured credit products for which credit spreads and default probabilities relating to the reference assets and derivative counterparties cannot be
observed;
 reverse mortgage swaps for which the mortality rate cannot be observed; and
 equities for which there is no active market or traded prices cannot be observed.
Movements in the Level 3 balance are due to:
 investments backing policy liabilities being classified to Level 2 as part of assets held for sale following the agreed sale of the Wealth businesses,
and;
 our available-for-sale investment in Bank of Tianjin being transferred to Level 3 following a change in the valuation approach used to measure the
asset.
There were no other material transfers in or out of Level 3 during the period.
Bank of Tianjin (BoT)
A revised valuation technique was applied to the investment in BoT as the Group considers that, in light of persistent illiquidity, the share price of BoT is
not representative of fair value. The investment is valued based on comparative price-to-book (P/B) multiples (a P/B multiple is the ratio of the market
value of equity to the book value of equity). The extent of judgment applied in determining the appropriate multiple and comparator group from which the
multiple is derived are non-observable inputs which have resulted in the Level 3 classification.
The application of this valuation approach resulted in a $306 million increase in the carrying value of the investment during the period to $982 million (Sep
17: $676 million). The increase has been recognised as an unrealised gain in the available for sale revaluation reserve within shareholders’ equity and
accordingly, there is no impact from this revaluation on the Income Statement for the March 2018 half.
b) Sensitivity to Level 3 data inputs
When we make assumptions due to significant inputs not being directly observable in the market place (Level 3 inputs), then changing these assumptions
changes the Group’s estimate of the instrument’s fair value. Favourable and unfavourable changes are determined by changing the primary
unobservable parameter used to derive the valuation.
Bank of Tianjin (BoT)
The valuation of the BoT investment is sensitive to the selected unobservable input, being the P/B multiple. If the P/B multiple was increased or
decreased by 10% it would result in a $98 million increase or decrease to the fair value of the investment, which would be recognised in shareholders’
equity.
Other
The remaining Level 3 balance is immaterial and changes in the Level 3 inputs have a minimal impact on net profit and net assets of the Group.
c) Deferred fair value gains and losses
The Group does not immediately recognise the difference between the transaction price and the amount we determine based on the valuation technique
(day one gain or loss) in profit or loss. After initial recognition, we recognise the deferred amount in profit or loss over the life of the transaction on a
straight line basis or until all inputs become observable.
The day one gains and losses deferred are not material.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
14. Fair value measurement, cont’d
Carrying amount in the balance sheet Fair Value
As at March 2018
At amortised
cost
$M
At fair
value
$M
Total
$M $M
Financial assets
Net loans and advances 1 591,684 263 591,947 592,352
Financial liabilities
Deposits and other borrowings 1 614,660 2,470 617,130 617,254
Debt issuances 113,051 1,785 114,836 115,811
Total 727,711 4,255 731,966 733,065
As at September 2017
Financial assets
Net loans and advances 1 580,137 156 580,293 580,479
Financial liabilities
Deposits and other borrowings 1 596,672 3,497 600,169 600,359
Debt issuances 106,221 1,752 107,973 109,251
Total 702,893 5,249 708,142 709,610
As at March 2017
Financial assets
Net loans and advances 1 575,972 332 576,304 576,650
Financial liabilities
Deposits and other borrowings 1 595,646 2,771 598,417 598,654
Debt issuances 107,289 1,786 109,075 110,178
Total 702,935 4,557 707,492 708,832
1. Net loans and advances and deposits and other borrowings include amounts reclassified to assets and liabilities held for sale (refer to Note 11).

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
15. Shareholders’ equity
Issued and quoted securities Half Year
Ordinary share capital
Mar 18
No.
Sep 17
No.
Mar 17
No.
Closing balance 2,898,758,978 2,937,415,327 2,936,037,009
Issued/(Repurchased) during the period 1 (38,656,349) 1,378,318 8,560,349
1. The Company issued 8.1 million shares under the Dividend Reinvestment Plan and Bonus Option Plan for the 2017 final dividend (7.5 million shares for the 2017 interim dividend; 8.6
million shares for the 2016 final dividend). Following the provision of the 8.1 million shares, the Company repurchased 6.6 million of shares via an on-market share buy-back resulting in 6.6
million shares being cancelled. On 18 December 2017, the Company announced its intention to buy-back up to $1.5 billion of shares on-market as part of the Group’s broader capital
management plan. To date, the Company has bought back $1,132 million of shares resulting in 40.1 million shares being cancelled during the half.
Half Year Movement
Shareholders' equity
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Ordinary share capital 27,933 29,088 29,036 -4% -4%
Reserves
Foreign currency translation reserve 257 (196) (140) large large
Share option reserve 70 87 67 -20% 4%
Available for sale revaluation reserve 119 38 31 large large
Cash flow hedge reserve 117 131 180 -11% -35%
Transactions with non-controlling interests reserve (22) (23) (23) -4% -4%
Total reserves 541 37 115 large large
Retained earnings 30,900 29,834 28,640 4% 8%
Share capital and reserves attributable to shareholders of the Company 59,374 58,959 57,791 1% 3%
Non-controlling interests 126 116 117 9% 8%
Total shareholders' equity 59,500 59,075 57,908 1% 3%

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
16. Changes in composition of the Group
There were no acquisitions or disposals of material controlled entities for the half year ended 31 March 2018.
17. Investments in Associates
Half Year Movement
Mar 18 Sep 17 Mar 17
Mar 18
v. Sep 17
Mar 18
v. Mar 17
Share of associates' profit 88 127 173 -31% -49%
Contributions to profit 1 Contribution to
Group profit after tax
Ownership interest
held by Group
Associates Half Year As at
Mar 18
$M
Sep 17
$M
Mar 17
$M
Mar 18
%
Sep 17
%
Mar 17
%
P.T. Bank Pan Indonesia 45 51 50 39 39 39
AMMB Holdings Berhad 42 48 48 24 24 24
Shanghai Rural Commercial Bank 2 - - 58 - 20 20
Other associates 3 1 28 17 n/a n/a n/a
Share of associates' profit 88 127 173
1. Contributions to profit reflect the IFRS equivalent results adjusted to align with the Group’s financial year end which may differ from the published results of these entities. Excludes gains or
losses on disposal or valuation adjustments.
2. On 3 January 2017, the Group announced that it had agreed to sell its 20% stake in Shanghai Rural Commercial Bank (SRCB). The Group ceased equity accounting for the investment in
SRCB from that date. The sale concluded during the March 2018 half.
3. Includes Metrobank Card Corporation (MCC). On 18 October 2017, the Group announced it had entered into an agreement with its joint venture partner Metropolitan Bank & Trust Company
(Metrobank) in relation to its 40% stake in the Philippines based Metrobank Card Corporation (MCC). The Group agreed to sell 20% of its stake (sale completed in the March 2018 half), and
entered into a put option to sell the remaining 20% stake, exercisable in the fourth quarter of FY18 on the same terms for the same consideration. MCC was reclassified as an asset held for
sale and the Group ceased equity accounting for the investment from 1 October 2017.
18. Related party disclosure
There have been no transactions with related parties that are significant to understanding the changes in financial position and performance of the Group
since 30 September 2017.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
19. Contingent liabilities and contingent assets
There are outstanding court proceedings, claims and possible claims for and against the Group. Where relevant, expert legal advice has been obtained
and, in the light of such advice, provisions and/or disclosures as deemed appropriate have been made. In some instances we have not disclosed the
estimated financial impact of the individual items either because it is not practicable to do so or because such disclosure may prejudice the interests of
the Group.
Refer to Note 33 of the 2017 ANZ Annual Financial Report for a description of contingent liabilities and contingent assets as at 30 September 2017. A
summary of some of those contingent liabilities, and new contingent liabilities that have arisen in the current reporting period, is set out below.
 Bank fees litigation
A litigation funder commenced a class action against the Company in 2010, followed by a second similar class action in March 2013. The applicants
contended that certain exception fees (honour, dishonour and non-payment fees on transaction accounts and late payment and over-limit fees on
credit cards) were unenforceable penalties and that various of the fees were also unenforceable under statutory provisions governing unconscionable
conduct, unfair contract terms and unjust transactions. A further action, limited to late payment fees only, commenced in August 2014.
The penalty and statutory claims in the March 2013 class action failed and the claims have been dismissed. The August 2014 action was
discontinued in October 2016.
The original claims in the 2010 class action have been dismissed. A new claim has been added to the 2010 class action, in relation to the Company’s
entitlement to charge certain periodical payment non-payment fees.
 Benchmark/rate actions
In July and August 2016, class action complaints were brought in the United States District Court against local and international banks, including the
Company - one action relating to the bank bill swap rate (BBSW), and one action relating to the Singapore Interbank Offered Rate (SIBOR) and the
Singapore Swap Offer Rate (SOR). The class actions are expressed to apply to persons and entities that engaged in US-based transactions in
financial instruments that were priced, benchmarked, and/or settled based on BBSW, SIBOR, or SOR. The claimants seek damages or
compensation in amounts not specified, and allege that the defendant banks, including the Company, violated US anti-trust laws, anti-racketeering
laws, the Commodity Exchange Act, and (in the BBSW case only) unjust enrichment principles. The Company is defending the proceedings. The
matters are at an early stage.
In February 2017, the South African Competition Commission commenced proceedings against local and international banks including the Company
alleging breaches of the cartel provisions of the South African Competition Act in respect of trading in the South African rand. The potential civil
penalty or other financial impact is uncertain. The matter is at an early stage.
 Franchisee litigation
In February 2018, two related class actions were brought against the Company. The primary action alleges that the Company breached contractual
obligations and acted unconscionably when it lent to the applicant, and other 7-Eleven franchisees. The action seeks to set aside the loans to those
franchisees and claims unspecified damages. The second action seeks to set aside related mortgages and guarantees given to the Company. The
matters are at an early stage.
 Regulatory and customer exposures
In recent years there has been an increase in the number of matters on which ANZ engages with its regulators. There have been significant
increases in the nature and scale of regulatory investigations and reviews, enforcement actions (whether by court action or otherwise) and the
quantum of fines issued by regulators, particularly against financial institutions both in Australia and globally. ANZ also instigates engagement with its
regulators. The nature of these interactions can be wide ranging and, for example, currently include a range of matters including responsible lending
practices, product suitability, wealth advice, pricing and competition, conduct in financial markets and capital market transactions and product
disclosure documentation. ANZ has received various notices and requests for information from its regulators as part of both industry-wide and ANZ-
specific reviews and has also made disclosures to its regulators at its own instigation. There may be exposures to customers which are additional to
any regulatory exposures. These could include class actions, individual claims or customer remediation or compensation activities. The outcomes
and total costs associated with such reviews and possible exposures remain uncertain.

DIRECTORS’ DECLARATION
Directors’ Declaration
The Directors of Australia and New Zealand Banking Group Limited declare that:
1. in the Directors’ opinion the Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements are in
accordance with the Corporations Act 2001, including:
 section 304, that they comply with the Australian Accounting Standards and any further requirements in the Corporations Regulations 2001;
and
 section 305, that they give a true and fair view of the financial position of the Group as at 2018 and of its performance for the half year ended
on that date; and
2. in the Directors’ opinion as at the date of this declaration there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable.
Signed in accordance with a resolution of the Directors.
David M Gonski, AC Shayne C Elliott
Chairman Director
30 April 2018

AUDITOR’S REVIEW REPORT AND INDEPENDENCE DECLARATION
Independent Auditor’s Review Report to the shareholders of Australia and New Zealand Banking Group Limited
Report on the half year Condensed Consolidated Financial Statements
Conclusion
We have reviewed the accompanying half year Condensed Consolidated Financial Statements of Australia and New Zealand Banking Group Limited (the
Group).
The Group comprises Australia and New Zealand Banking Group Limited (the Company) and the entities it controlled at the half year’s end or from time
to time during the half year.
The half year Condensed Consolidated Financial Statements comprise:
 the condensed consolidated balance sheet as at 31 March 2018;
 the condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement
of changes in equity, and condensed consolidated statement of cash flows for the half-year ended on 31 March 2018;
 Notes 1 to 20 comprising a basis of preparation and other explanatory information; and
 the Directors’ Declaration.
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half year Condensed Consolidated
Financial Statements of Australia and New Zealand Banking Group Limited are not in accordance with the Corporations Act 2001, including:
i) giving a true and fair view of the Group’s financial position as at 31 March 2018 and of its performance for the half year ended on that date; and
ii) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
Responsibilities of the Directors for the half year Condensed Consolidated Financial Statements
The Directors of the Company are responsible for:
 the preparation of the half year Condensed Consolidated Financial Statements that give a true and fair view in accordance with Australian
Accounting Standards and the Corporations Act 2001; and
 such internal control as the Directors determine is necessary to enable the preparation of the half year Condensed Consolidated Financial
Statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility for the review of the half year Condensed Consolidated Financial Statements
Our responsibility is to express a conclusion on the half year Condensed Consolidated Financial Statements based on our review. We conducted our
review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor
of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the
half year Condensed Consolidated Financial Statements are not in accordance with the Corporations Act 2001 including: giving a true and fair view of the
Group’s financial position as at 31 March 2018 and its performance for the half year ended on that date, and complying with Australian Accounting
Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As auditor of Australia and New Zealand Banking Group
Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of half year Condensed Consolidated Financial Statements consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance
with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit opinion.
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.