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Investor Presentaiton

MyState Sub Debt Issue | Investor Presentation 33 Limited Provisions and coverage ratios Total Collective Provisions and GRCL ($m) 8.61 Loan provisioning strengthened for the potential impact of COVID-19 pandemic 2.0 6.3 5.1 2.3 4.4 3.6 2.4 1.5 4.3 2.7 1.9 Dec 18 2.1 0.4% Jun 19 Dec 19 May 20 (pro forma) ■COVID-19 Overlay ■General Reserve for Credit Losses (GRCL) Top Up Collective Provisions Total Provision Coverage Ratio 0.5% (Collective and GRCL) 0.2% 0.3% 4.44 0.13% 0.07% Jun 19 Dec 18 as % of Credit RWA 0.10% Dec 19 ■as % of Gross loans 0.17% May 20 (pro forma) 1The $3.5m increase in Total Collective Provisions and GRCL between Dec-19 and May-20 (pro-forma) is as follows: +$2.0m COVID-19 overlay (Collective Provision) +$1.4m GRCL Top-Up -$1.5m GRCL Top-up methodology change (contractual life to actual average life for stage 1 loans) +$1.6m Increase in total arrears and an ageing of arrears in the total loan book (Collective Provision) $3.5m has been used for the May-20 pro-forma which is the mid-point of the expected range of $3.0m - $4.0m
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