Investor Presentaiton
Historical Loss
bps
EAD
Group regulatory expected loss
75
69
19
61
62
Historical observed loss rates
bps
%
250
IP Loss Rate (LHS)
120
200
-Corporate Gearing lagged 15 months
(RHS)
100
150
100
44
54
50
Mar 11
Mar 12
Mar 13
Mar 14
Mar 15
80
60
60
60
40
40
20
20
0
Sep 90 Sep 94 Sep 98 Sep 02 Sep 06 Sep 10 Sep 14
•
•
Corporate gearing remains low
Corporate gearing ratios¹ were compared with the Group IP loss rates from 1990. Lagging corporate gearing 15 months
provides a reasonably strong relationship, with corporate gearing a leading indicator of loss
Current IP loss rate (annualised) as at Mar'15 was 17bps which is similar to that observed between 2005 and 2007
The annualised 1H15 IP loss rate (17 bps) is the 6th lowest rate over the time period analysed since 1990
1. Debt to equity ratios for listed Australian Corporations sourced from the RBA.
ANZ
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