Australian Housing Dynamics and Affordability slide image

Australian Housing Dynamics and Affordability

AUSTRALIA HOME LOANS PORTFOLIO PERFORMANCE PRODUCT 90+ DAY DELINQUENCIES 1,2,3 % 5.0 HOME LOAN DELINQUENCIES 1,2,5 % 2.5 2.0 4.0 1.5 3.0 1.0 2.0 0.5 1.0 0.0 0.0 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep Sep Sep Sep 19 12 13 14 Sep 15 Sep Sep Sep 16 17 18 Sep 19 90+ Investor Home Loans Personal Loans Consumer Cards - Corporate & Commercial4 HOME LOANS 90+ DPD BY STATE 1,2 % 2.5 2.0 1.5 1.0 0.5 0.0 VIC & TAS NSW & ACT QLD Mar-12 Mar-13 Sep-12 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 WA Mar-16 Sep-16 SA & NT Portfolio 30+ DPD % 90+ Owner Occupied HOME LOANS 90+ DPD (BY VINTAGE)6 Note: FY14 vintages and prior were impacted by hardship prior to policy solutions put in place and therefore not comparable to FY15 vintages and onwards % 2.5 2.0 1.5 1.0 0.5 0.0 6 8 - FY15 FY16 - 10 FY17 FY18 12 14 FY19 16 18 20 22 24 Month on book 26 28 30 32 34 36 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 1. Includes Non Performing Loans 2. ANZ delinquencies calculated on a missed payment basis 3. For Personal Loans, a new collections platform was implemented in Aug-18 enabling automated charge-off of late stage accounts. This resulted in a step change to 90+ rates. Following this, compatibility issues between systems resulted in an accumulation of 90+ debt not being charged-off, causing the 90+ rate to increase. This issue has now been resolved and the 90+ rate has returned to expected levels in FY19 4. Retail portfolio (Small Business, Commercial Cards and Asset Finance) 5. The current classification of Investor vs Owner Occupier, is based on ANZ's product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer's obligation to advise ANZ of any change in circumstances 6. Home loans 90+ DPD vintages represent % ratio of over 90+ delinquent (measured by # accounts), contains at least 6 application months of that fiscal year contributing to each data point ANZ 89
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