1H24 Financial Results

CET1 - International | CET1 APRA's revised capital framework remains more conservative than Basel framework CET1 Level 2 1.7% Definition of Capital 19.0% 1.4% IRRBB RWA International adjustments¹ Risk weighting equity investments, deferred tax assets, capitalised expenses which are fully deducted from CET1 under APRA rules Removal of IRRBB RWA from APRA's minimum Pillar 1 capital requirements International adjustments¹ 6.7% 1.5% 12.3% 1.1% Residential Mortgages IRB Scalar Removal of APRA's risk weight floors and multipliers (e.g. 1.4 owner-occupier, 1.7 interest-only) Removal of APRA's scaling factor of 1.1 for all internal ratings-based (IRB) asset classes 12.3% 0.5% RBNZ rules APRA requires application of RBNZ capital rules for credit exposures in NZ including banking subsidiaries². There are a number of differences between RBNZ and Basel including mortgages, specialised lending and farm lending 0.3% Income Producing Real Estate Multiplier Removal of APRA's multiplier of 1.5 for IPRE exposure 0.2% Non-retail LGD APRA rules are more conservative for certain exposure types under the Foundation and Advanced IRB approaches Dec 23 APRA Dec 23 Int'l 6.7% 1. Methodology based on the Australian Banking Association publication 'Basel 3.1 Capital Comparison Study' (March 2023), which compares APRA's revised capital framework, including RBNZ prudential requirements, with the finalised post-crisis Basel III reforms. 2. Except in respect of the overall scaling factor and Standardised floor, where APRA's rules must be applied. 119

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