ANZ Financial Performance Overview
SECTION 6
Mortgages portfolio sound
Strong LVR profile
·
An LVR analysis of ANZ's mortgage portfolio
suggests it has sufficient equity margin to
80%
sustain a reasonable devaluation in Australian
residential property prices.
70%
60%
• Stress testing conducted by ANZ showed that
even under the most extreme scenario of;
50%
.
Unemployment rising to 10.3%, Mortgage
rates increasing to 10.57% and property
prices falling by 20%, the loss incurred
40%
II LVR at origination
Dynamic LVR
30%
would be approximately A$90 million, or
0.12% of the portfolio.
20%
10%
Emerging risks in apartment investment lending
in near city locations in Sydney, Melbourne &
Brisbane have been controlled by
implementation of tighter policies.
0%
0-60%
61-75%
76-80%
81%+
$b
90
Strong growth in the
mortgage portfolio
Portfolio by product
77.0
100%
80
70.3
70
64.2
28
29
30
59.3
80%
60- 55.4
5
50
40
52322°
60%
40%
30
67
40
69
66
65
63
T
20
10
0
T
Sep-01 Mar-02 Sep-02 Mar-03
Sep-03
20%
0%
2001
2002
2003
II Home Loans
Equity Loans
■RILS
48
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