Australian Housing Dynamics and Affordability slide image

Australian Housing Dynamics and Affordability

RISK MANAGEMENT COMMERCIAL PROPERTY PORTFOLIO COMMERCIAL PROPERTY OUTSTANDINGS BY REGION COMMERCIAL PROPERTY OUSTANDINGS BY SECTOR $b % % 100 42.4 42.9 12 40.2 80 2.8 2.8 38.4 37.9 37.7 37.5 37.6 11 2.9 60 3.9 3.6 2.7 2.4 3.0 10 40 10.7 10.5 20 9.8 9 8.8 9.5 9.7 9.5 9.7 8 Mar-17 Sep-17 Mar-18 Offices Retail Industrial Sep-18 Residential Mar-19 Sep-19 Tourism Other 7 10 5 • 28.9 29.6 4 27.5 25.7 24.8 25.5 25.4 24.9 3 2 1 0 PROPERTY PORTFOLIO MANAGEMENT . • Australian exposure increased by 2% HOH driven by higher lending to Funds and REITS in the Industrial sector partly offset by a decline in Residential lending given the slowdown in the residential property market. Retail exposure declined over the half and the Retail portfolio continues to be closely monitored owing to the weak operating environment Slight decline in New Zealand exposure was driven by exchange rate movements and some significant repayments occurring during 2H FY19 APEA exposure remained stable for 2H19 with the portfolio concentrated on large well rated names in Singapore and Hong Kong. The Hong Kong Property market has seen a 1% index decline given current unrest. Market consensus estimates a decline as high of 10-20% if the protests continue through the year. The Hong Kong property portfolio remains subject to close monitoring of internal and external metrics Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 % of Group GLA (RHS) Australia New Zealand APEA¹ 1. APEA = Asia Pacific, Europe & America ANZ 78
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