Financial Performance and Remediation Update slide image

Financial Performance and Remediation Update

ECL PROVISIONING BY STAGES LOANS AND ADVANCES BY STAGE¹ PROVISIONS BY STAGE² 76 PROVISION COVERAGE BY STAGE3 ($bn) ($m) (%) 0.77 784.5 792.6 833.3 6,011 5,745 0.72 5,171 0.62 7.9 8.7 9.5 1,644 1,594 206.5 237.8 248.9 1,539 19.0 16.8 19.5 3,897 569.3 545.3 576.5 3,879 3,376 1.89 0.56 1.63 0.53 1.36 470 272 256 0.44 0.08 0.05 0.04 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 ■Stage 1 (12 month ECL) ■Stage 2 (Lifetime ECL) ■Stage 3 (Lifetime ECL) • Status Type of provision Stage 1 (12 month ECL) Credit risk not increased significantly since initial recognition; performing Collective Stage 2 (Lifetime ECL) Credit risk increased significantly since initial recognition but not credit impaired Collective Stage 3 (Lifetime ECL) Credit impaired: default no loss Credit impaired: default with loss Collective Specific • Significant increase in credit risk determined by change in credit risk scores for business exposures and change in behavioural scoring outcomes for retail exposures. These rules are not prescribed by accounting standards • No automatic migration from stage 1 to stage 2 as a result of COVID-19 repayment deferrals; migration assumptions included in forward looking adjustments Stage 2 includes majority of forward looking adjustments (1) Notional staging of loans and advances including contingent liabilities and credit-related commitments, incorporates forward looking stress applied in the ECL model (2) Excludes collective provision on loans at fair value and derivatives which are not allocated to a stage under the ECL model (3) Provision coverage: provisions as a percentage of loans and advances including contingent liabilities and credit-related commitments National Australia Bank
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