Australian Housing Dynamics and Affordability

KEY RISK METRICS CREDIT IMPAIRMENT CHARGE $m INDIVIDUAL PROVISION (IP) CHARGE $m $m 787 554 430 343 398 COLLECTIVE PROVISION (CP) BALANCE & COVERAGE Sep-19 CP/CRWA impacted -3bps by increase in CRWA's from regulatory & methodology changes (incl. SA-CCR) 3,378 3,376 380 2,785 2,662 2,579 2,523 0.98% 0.94% 0.81% 0.79% 0.75% 0.75% 720 479 408 393 402 0.25% 280 0.16% 0.14% 0.13% 0.13% 1H17 2H17 1H18 0.09% 2H18 1H19 Total Provision Charge 2H19 1H17 2H17 1H18 New Increased 2H18 1H19 Writebacks & Recoveries 2H191 CIC as % Avg. GLA GROSS IMPAIRED ASSETS NEW IMPAIRED ASSETS Mar-17 Sep-17 Mar-18 Sep-18 Mar 19 Sep-19 CP Balance (AASB9) CP Balance CP/CRWA AUSTRALIA MORTGAGES 90DPD (INCL NPL) $m $m $m 2,940 1,787 3,071 2,384 2,034 1,425 2,139 2,128 2,029 1,145 963 1,117 890 2,013 0.79% 2,226 0.84% 2,401 0.89% 2,373 0.86% 2,696 1.00% 1.16% Mar-17 Sep-17 Australia Mar-18 New Zealand Sep-18 Mar-19 Sep-19 1H17 2H17 1H18 2H18 1H19 2H192 Mar-17 Institutional Other Australia New Zealand Institutional Other CREDIT RWA EXPOSURE AT DEFAULT (EAD) Sep-17 Mar-18 Sep-18 90DPD (Incl. NPL) % Total Portfolio INTERNAL EXPECTED LOSS (IEL) Mar-19 Sep-19 $b $b 342 337 343 338 346 358 899 903 930 944 968 977 38.0% 37.3% 36.9% 35.8% 35.7% 36.7% 0.35% $m 1,983 1,870 1,780 1,666 0.32% 0.30% 0.27% 0.27% 0.26% 1,659 1,605 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 1H17 2H17 1H18 2H18 1H19 2H19 CRWA - CRWA/EAD IEL IEL/GLA 1. 2. Increase to New and Increased Individual Provisions and Writebacks & Recoveries compared to prior half is largely related to the home loan portfolio in Australia Retail and Commercial following the implementation of a more market responsive collateral valuation methodology New Impaired Assets in 2H19 includes a $167m uplift on 1H19 in Australia home loans following the implementation of revised provisioning and impairment processes (including a more market responsive collateral valuation methodology) ANZ 72

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