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ANZ comments on APRAs proposed composition of Level Two ADI Group

ANZ today confirmed it has been advised in recent discussions with the Australian Prudential Regulation Authority (APRA) that APRA is considering clarifying the composition of the Level 2 Authorised Deposit-Taking Institution (ADI) Group.

This change would impact the capital benefit arising from external debt held in ANZ Wealth Australia Limited.


ANZ currently has two debt issuances held by ANZ Wealth Australia Limited of ~$400 million each, maturing in June 2015 and March 2016 respectively.


Should the change come into effect as currently proposed, it would reduce ANZ’s Level 2 capital ratios by ~20 basis points, subject to any transitional arrangements agreed with APRA. Consistent with previous prudential changes we expect to meet any additional capital requirements through organic capital generation.


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