Australian Housing Dynamics and Affordability
AUSTRALIAN TIER 2 IN A TLAC/MREL CONTEXT
APRA'S CONSERVATIVE RISK WEIGHTS COMBINED WITH "UNQUESTIONABLY STRONG" CET1 REQUIREMENTS PROVIDE
STRONG PROTECTIONS FOR TIER 2 INVESTORS. AN ILLUSTRATIVE LOSS OF 5% OF ASSETS IS PRESENTED BELOW
Illustrative
Loss Absorption
5.0% of
Assets
% over Assets
2.1
T2
AT1
CET1 MREL
0.6
0.7
0.8
0.8
0.5
0.5
0.6
0.6
0.6
0.5
0.4
0.4
0.4
4.5
3.0
3.1
2.8
2.6
0.5
0.4
0.5
0.4
4.0
3.4
3.2
2.6
ANZ
UK Peer 1
UK Peer 2
French Peer 1
French Peer 2
Dutch Peer 1
Dutch Peer 2
Nordic Peer 1
Nordic Peer 2
Average RWA Density¹
43%
26%
25%
28%
26%
27%
34%
20%
27%
KEY METRICS
ROE² (%)
10.9
9.3%
11.5%
Cost/Income (%)
49.5
64.0%
45.9%
9.6%
64.5%
5.5%
13.6%
5.9%
9.0%
7.2%
54.0%
56.4%
64.4%
57.4%
60.0%
NIM (%)
1.76
3.4%
2.9%
1.1%
1.7%
1.7%
1.4%
0.8%
0.9%
NPL (%)
0.33
2.4%
1.9%
2.5%
3.4%
2.3%
3.2%
1.3%
1.9%
Source: Company disclosures and Moody's Ratings. Latest available data as of 4 November 2019 (as at 30 September 2019 for ANZ)
Over total assets.
1.
2.
ROTE are shown for the UK banks as ROE is not available.
ANZ
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