Financial Performance and Remediation Update
ASSET QUALITY IMPROVING
KEY IMPACTS IN 2H21
•
90+ DPD & GIA ratio reduction with improvements in
business lending and Australian home lending
NEW IMPAIRED ASSETS³
($m)
•
Reduction in Watch loans reflects aviation sale
807
Small number of
well-secured NZ
dairy exposures
276
New impaired assets remain at low levels
•
>70% of non-retail categorised assets relate to COVID-
19 sectors1
553
531
539
271
286
.
Total deferral balances associated with recent
lockdowns ~$2.2bn at 30 September², majority housing
Sep 19
Mar 20 Sep 20 Mar 21 Sep 21
90+ DPD, GIAS & WATCH LOANS AS A % OF GLAS4,5
Re-gradings of
performing
customers
1.03%
1.03%
0.93%
Sep 19
0.97%
Mar 20
2.58%
2.30%
1.95%
1.03%
Sep 20
1.23%
Mar 21
0.94%
Sep 21
90+ DPD & GIAS as a % of GLAS
■Watch loans as a % of GLAS
(1) Categorised assets include 90+ DPD, GIAS and Watch loans. COVID-19 sectors refer to Retail Trade, Tourism, Hospitality & Entertainment, Air Travel and related services, Office, Retail, Tourism &
Leisure CRE (see slides 82-85 for more details)
(2) APRA concessional treatment of deferrals ended 30 September 2021
(3) Figures represent Half Year to date flow of new impaired assets
26
(4) Referral to Watch generally triggered by banker annual reviews through the year or as a result of performing customers experiencing cashflow pressures
(5) Eligible deferral customers treated in accordance with APRA guidance, with arrears profile frozen for period of deferral
National
Australia
BankView entire presentation