ANZ Financial Performance Overview
SECTION 4
$m
Doubtful Debts Provision reflects improved underlying portfolio
"Standard" ELP (as a % of NLAs) has decreased
significantly from 46 bps to 32 bps across the
period 1998 through 2003. This is consistent with
mortgage growth in key lending markets of
Australia and NZ and reduced Group risk profile
ELP Charge
bp's
ELP Adjustment
ANZ has adopted a conservative view on the
level of offshore expected default
frequencies post Sep 2001 by recognising an
approximately 7bp average incremental ELP
adjustment charge
350
80
ELP Charge
Standard ELP (bps)
309
311
301
303
Headline ELP (bps)
70
300
290
36
36
47
50
62
52
ELP adjustment expected to be progressively
wound back over the next two years, predicated
on continued risk reduction and stabilisation in the
offshore book.
258
252
256
250
246
250
237
241
41
41
60
ELP Rate Drivers
200
bps
46
Normalised ELP
ELP Top-Up
46
47
45
43
42
22
44
42
40
38
150
(1)
1
39
(4)
100
T
36
34
32
50
50
30
28
Sep-02
Headline
in NLA's
IFS reduction
Corporate
increase in
NLA's
Growth in
mortgages
Sep-03
Headline
40
40
Mar- Sep- Mar- Sep- Mar- Sep-
98 98 99 99 00 00
29
36
50
43
42
41
40
39
35
40
40
39
38
36
*
X
33
30
32
Mar- Sep- Mar- Sep- Mar- Sep-
01 01 02 02 03 03
ANZ
+0
10
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