1H24 Financial Results slide image

1H24 Financial Results

Provisions1 Peer leading provision coverage of 1.64% Provision coverage²/CRWA % 1.64 1.58 Total provision 1.45 coverage 1.26 Collective provision coverage 1.45 1.43 1.35 1.16 CBA Dec 23 Peer 2 Sep 23 Peer 3 Sep 23 Peer 1 Sep 23 Individually Collectively assessed assessed Provisions by stage Credit exposures Credit provisions Dec 23 Stage 2 exposures by credit grade³ $m Jun 23 Dec 23 Jun 23 Stage 1 921,565 913,693 1,709 1,752 $198bn $188bn Weak Stage 24 187,874 198,203 2,889 2,929 Stage 3 6,210 6,648 598 649 159 Pass 156 Stage 3 1,567 1,383 754 733 Total 1,117,216 1,119,927 5,950 6,063 24 32 Investment Jun 23 Dec 23 1. AASB 9 classifies loans into stages; Stage 1 - Performing, Stage 2 – Performing but significantly increased credit risk, Stage 3 – Non-performing. Performing relates to Stage 1 and Stage 2. Non-performing relates to Stage 3. Stage 2 is defined based on a significant deterioration in internal credit risk ratings, as well as other indicators such as arrears. Assessment of Stage 2 includes the impact of forward-looking adjustments for emerging risk. 2. Excludes estimated impairment provisions for derivatives at fair value. 3. Segmentation of loans in retail and risk rated portfolios is based on the mapping of a counterparty's internally assessed PD to S&P Global ratings (refer Pillar 3), reflecting a counterparty's ability to meet their credit obligations. 4. The assessment of significant increase in credit risk includes the impact of forward looking multiple economic scenarios in addition to adjustments for emerging risks at an industry, geographic location or particular portfolio segment level, which are calculated by stressing an exposure's internal credit rating grade at the reporting date. This accounts for approximately 62% of Stage 2 exposures as at 31 December 2023 (30 June 2023: 62%, 31 December 2022: 59%). In 1H24, the Group recalibrated the capital model for the large corporate portfolio which resulted in a higher proportion of exposures allocated to Stage 2 as at 31 December 2023. This change did not have an impact on provisioning coverage as the Group recognised an increase in provisions for the expected impact of the new model in the prior period. 80
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