Investor Presentaiton
RESOURCES PORTFOLIO & MANAGEMENT
RESOURCES EXPOSURE AT DEFAULT (EAD) BY SECTOR ($b)
TOTAL EAD (Mar-19): $15.6b (Resources exposures as a % of Group EAD: 1.6%)
THERMAL COAL EXPOSURE within 'coal mining' sector ($b)
9.4
8.6
7.8
7.2
7.0.
7.6 7.4 7.3
1.70
2.0
1.5
1.0
0.5
1.18
0.94
0.81
0.75
Sep-15
Sep-16
Sep-17
Sep-18
Mar-19
4.9 4.6 4.0 3.7 3.5p
4.4 4.4 4.6
2.3 1.8 1.5 1.4 1.1 1.0 1.4 1.5
2.9 2.4
1.7 1.4 1.4 1.2 1.2 1.5
1.3 1.1 1.1 0.9 1.0 0.9 0.9 0.8
Oil & Gas Extraction
Sep-15
Mar-16
Sep-16
Mar-17
Metal Ore Mining
Sep-17
Coal Mining
Services To Mining
Other Mining
Mar-18
Sep-18
Mar-19
EAD & CREDIT QUALITY (Mar-19)
$7.3b
$0.6b
$2.6b
23%
18%
$5.1b
12%
•
39%
77%
82%
88%
61%
AUS
NZ
ASIA
EA & Other
Sub-Investment Grade
Investment Grade
RESOURCES PORTFOLIO MANAGEMENT
Portfolio is skewed towards well capitalised and lower cost resource producers.
27% of the book is less than one year duration.
Investment grade exposures represent 74% of portfolio vs. 67% at Mar 18 and Trade business
unit accounts for 19% of the total Resources EAD.
Mining services customers are subject to heightened oversight given the cautious outlook for
the services sector.
Increased coal mining exposure in FY18 / 1H19 primarily reflects mergers and acquisitions
activity related to existing mines, i.e. predominantly metallurgical coal assets sold by
diversified miners to existing customers. Financing is mainly used to support continuing
operations, and not mine expansions.
Thermal coal exposure is currently $944m. We expect our thermal coal exposure to decline
over time, as it has since 2015, though there was an increase in 1H19 due to one transaction
for an existing customer and a reclassification of one exposure. Our exposures to thermal coal
are primarily concentrated in a small number of Australian-based miners.
ANZ
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