Financial Performance and Remediation Update
GROUP OFFICE, RETAIL, TOURISM & LEISURE COMMERCIAL REAL ESTATE¹
GLA PROFILE
KEY CONSIDERATIONS
Limit utilisation ~87%
•
$35.9bn
$36.9bn
2.0
2.0
16.3
17.7
17.6
■Tourism & Leisure
■Retail
■ Office
Mar 21
PORTFOLIO CHARACTERISTICS¹
17.2
■Tourism & Leisure
■Retail
■ Office
Sep 21
Office, Retail and Tourism & Leisure (T&L) viewed as most
impacted by COVID-19 across Group CRE portfolio
• Office faces medium term uncertainties, dependent on extent and
timing of return-to-work and asset-specific lease expiries; ~44% of
Australian balances CBD-based (of which ~88% C&I)
• Market liquidity and well supported valuations for Retail assets with
stronger bias to non-discretionary tenants; T&L to benefit from
increasing vaccination rates and lifting of restrictions
• CBD-based Retail and T&L assets impacted by lockdowns given
low office occupancy and closed borders: ~6% of Australian Retail
balances (of which ~50% C&I); minority of Australian T&L balances
90+ DPD AND GIAS AND AS % OF SECTOR GLAS
82
Geographic breakdown
Portfolio security²
($m)
WA
Qld
14%
4%
៨៖
SA
5%
0.16%
Vic
25%
Fully
secured
New
Zealand
12%
90%
Partially
secured
4%
NSW
35%
Other
Unsecured
6%
5%
0.25%
0.24%
0.17%
90
85
62
58
Borrower breakdown: Investor 96%, Developer 4%
Mar 20
Sep 20
190+ DPD & GIAS
Mar 21
as % of GLAS
Sep 21
(1) Measured as balance outstanding as at 30 September 2021 per APRA Commercial Property ARF230 definitions
(2) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of
security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to
market value based on the nature of the underlying security. Unsecured proportion represents Institutional exposures that are weighted towards listed A-REITs and wholesale funds which are lowly
geared and exhibit strong debt servicing.
National
Australia
BankView entire presentation