Proposed share issue by BNZ

Exchange announcement 7 December 2017 Proposed share issue by Bank of New Zealand The board of directors of Bank of New Zealand (BNZ) has approved the issue of 1.105 billion ordinary shares to its immediate shareholder, National Australia Group (NZ) Limited (NAGNZ), at a subscription price of $1.00 per share (Ordinary Share Issue). The Ordinary Share Issue is proposed to take place on or around 8 December 2017. This will result in the number of BNZ's ordinary shares increasing from 3,370,997,499 to 4,475,997,499 and BNZ's ordinary share capital increasing by $1.105 billion. The board of directors of BNZ has also resolved to pay dividends on its ordinary shares on or around 8 December 2017, which combined with the Ordinary Share Issue will result in a net payment to NAGNZ of $300 million. Ends For further information, please contact: Neil Bradley, Treasurer, BNZ T. 09 976 5020, E. neil_bradley@bnz.co.nz End CA:00311581 For:BNZ Type:ADMIN Time:2017-12-07 15:21:51