1H24 Financial Results

Home loans - resilience¹ Home loans 88% of the book originated under tightened standards since FY16 Key serviceability changes by year² FY16-19 Increased serviceability buffer and buffers on existing debts • Removed Low doc and EQFS products Tightened lending requirements for non-residents and use of foreign currency Tightened lending requirements in high risk areas New loan assessment (from FY16)³ • Income • • All income used in application to assess serviceability is verified • FY20 FY21 • Reduced IO maximum term limits Changes to serviceability buffer and floor assessment rate • Removed LMI/LDP waivers for construction, land loans Temporary COVID-19 tightening on verification • Restrictions on family guarantor arrangements Living expenses • • Rental expense capture (net rental income) • • Expenses excluded from HEM added to higher of declared expenses or HEM Increased serviceability floor rate • Reduced max LVR for construction and bridging loans Interest rates FY22 FY23 Enhanced self employed and investment income calculations • Increased serviceability buffer • Tightened LVR limits for high value properties Updated post code level appetite to current economic cycle Updated rental income shading and maximum yield to market cycle Existing debt • Allowed latest year financials for high quality self employed segments Increased serviceability floor rate Mortgage portfolio by year of origination 88% ΠΠΠ Pre FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H24 FY11 • • • 80% or lower cap on less stable income sources (e.g. bonus, overtime) Applicants reliant on less stable sources of income manually decisioned 90% cap on tax free income, including Government benefits • Limits on investor income allowances • Rental income net of rental expenses used for servicing Living expenses captured for all customers Servicing calculations use the higher of declared expenses or HEM adjusted by income and household size Expenses excluded from HEM are added to the higher of the declared expenses or HEM Assess customer ability to pay based on the higher of the customer rate plus serviceability buffer or minimum floor rate Interest Only (IO) loans assessed on principal and interest basis over the residual term of the loan Existing customer commitments are verified through Comprehensive Credit Reporting (CCR) or CBA transaction accounts data CBA transaction accounts and CCR data used to identify undisclosed customer obligations • For repayments on existing debt: CBA and OFI repayments recalculated using the higher of the actual rate plus a buffer or minimum floor over remaining principal and interest loan term - Credit card repayments calculated at an assessment rate of 3.8% - Other debt repayments calculated based on actual rate + buffer 1. CBA excluding Bankwest unless stated otherwise. Excludes Line of Credit, Reverse Mortgage, Commonwealth Portfolio Loan and Residential Mortgage Group. 2. Serviceability changes are reflective of changes made within the financial year and may have changed since implementation or may not be in currently in place. 3. Indicative loan assessment and is subject to change. 92

View entire presentation