Australian Housing Dynamics and Affordability
COLLECTIVE PROVISION
COLLECTIVE PROVISION BALANCE
COLLECTIVE PROVISION CHARGE¹
$m
AASB9
813
90
27
23
3,376
$m
1H19
2H19
FY19
CP charge
13
4
17
-79
-21
2,523
Volume/Mix
-28
-51
-79
Change in Risk
-40
19
-21
Economic outlook
CP charge 17
73
17
90
sensitivity
Other
8
19
22
27
Sep-18
Transition
to AASB 9
Volume/
Mix
Change Economic
in Risk Outlook
Sensitivity
Other
charge
FX/Other
B'sheet
Sep-19
COLLECTIVE PROVISION BALANCE
BY DIVISION ($m) AASB9
3,336
358
48
3,378
369
43
3,376
374
38
1,142
1,132
1,169
PROVISION BALANCE/COVERAGE RATIO
BY STAGES ($m) AASB9
31 Mar-19
30 Sep-19
Coverage ratio by stage²
Coverage ratio by stage²
1
0.19%
2
3.31%
3
20.76%
1
0.17%
2
2.40%
3
18.03%
1,788
Sep-18
AUS
Insto.
1.
2.
NZ
Other
1,834
Mar-19
1,795
Sep-19
395
434
1,415
1,568
1,412
1,530
891
814
Stage 1
Stage 1 CP
Stage 2
Stage 2 CP
Stage 3
Stage 1
Stage 2
Stage 3
Stage 3 CP
Stage 3 IP
Change in methodology introduced in 2H19 to measure components of CP charge
Coverage ratio calculated as Provision Balance to Gross Loans & Advances for on-balance sheet exposures. Reduction in 2H19 stage 2 coverage ratio is a result of (a) Denominator effect:
increased stage 2 GLA in Australian home loans due to implementation of a revised provisioning model plus higher delinquency levels, and (b) Numerator effect: stable stage 2 ECL with
the home loan ECL increase offset by decreases for other Australian portfolios and Institutional
ANZ
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