Australian Housing Dynamics and Affordability

RISK MANAGEMENT PROVISIONS CREDIT IMPAIRMENT CHARGE ANZ HISTORICAL LOSS RATES bps $m 1,500 250 1,200 1,038 918 200 900 720 479 150 600 408 280 393 402 100 300 0 680 50 -300 0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 Sep Sep 90 93 Sep 96 Sep 99 Sep 02 Sep Sep Sep Sep 05 08 11 14 Sep 17 Sep Sep 18 19 Consumer Commercial Institutional CP Charge IP Loss Rate = INDIVIDUAL PROVISION CHARGE Median Annual IP Loss Rate (excl. current period) LONG RUN LOSS RATE (INTERNAL EXPECTED LOSS) $m % 1,047 892 787 Division 554 826 Australia 430 343 398 922 380 969 812 612 594 592 532 New Zealand Institutional 495 229 153 136 116 122 93 157 -259 -274 -335 -394 -298 -245 -373 -351 Other Subtotal 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H191 New Increased Asia Retail Total Writebacks & Recoveries Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 0.35 0.33 0.33 0.33 0.31 0.29 0.29 0.29 0.25 0.26 0.26 0.22 0.21 0.19 0.19 0.37 0.36 0.35 0.30 0.32 0.27 1.47 1.79 1.60 1.69 0.34 0.33 0.33 0.30 0.30 1.50 1.51 1.51 2.75 0.37 0.35 0.35 0.32 0.30 0.18 0.27 0.25 1.95 1.78 1.60 1.40 0.27 0.27 0.26 0 0 0 0 0.27 0.27 0.26 IP: Individual Provision charge; CP: Collective Provision charge; CIC: Total Credit Impairment charge 1. Increase to New and Increased Individual Provisions and Writebacks & Recoveries compared to prior half is largely related to the home loan portfolio in Australia Retail and Commercial following the implementation of a more market responsive collateral valuation methodology ANZ 73

View entire presentation