SUNCORP GROUP LIMITED — Audit Report / Information 2009

Feb 23, 2010

SUNCORP-METWAY LTD

APS 330 DISCLOSURE : TABLE 15 CAPITAL STRUCTURE 31 DECEMBER 2009

	31-Dec-09 $m
Tier 1 Ordinary share capital Subsidiary share capital (eliminated upon consolidation) Reserves Retained profits Preference shares Insurance liabilities in excess of liability valuation Less goodwill, brands Less software assets Less other intangible assets Less deferred tax asset Less other required deductions Less tier 1 deductions for investments in subsidiaries, capital support Total tier 1 capital Tier 2 APRA general reserves for credit losses Asset Revaluation Reserve Subordinated notes Less tier 2 deductions for investments in subsidiaries, capital support Total tier 2 capital Total capital base	12,694 - - 848 879 - (7,837) (59) (98) (224) (1) (1,413)
	4,789 448 6 1,653 (1,413)
	694
	5,483

SUNCORP-METWAY LTD

APS 330 DISCLOSURE : TABLE 16 CAPITAL ADEQUACY 31 DECEMBER 2009

	Risk Weighted Balance 31-Dec-09 $m
On-Balance Sheet Risk Weighted Assets Cash items Claims on Australian and foreign governments Claims on central banks, international banking agencies, regional development banks, ADIs and overseas banks Claims on securitisation exposures Claims secured against eligible residential mortgages Past due claims Other retail assets Corporate Other assets and claims Total Banking assets Off balance sheet positions Guarantees entered into in the normal course of Business Commitments to provide loans and advances Capital commitments Foreign exchange contracts Interest rate contracts Securitisation exposures Total off balance sheet positions Total Credit Risk capital charge Market risk capital charge Operational risk capital charge Total risk weighted assets Risk weighted capital ratios Tier 1 Total risk weighted capital ratios	13 2 872 57 10,609 3,118 1,002 18,660 601
	34,934 150 967 14 127 89 207
	1,554
	36,488 544 2,994
	40,026
	%
	11.964%
	13.698%

SUNCORP-METWAY LTD

APS 330 DISCLOSURE : TABLE 17 CREDIT RISK 31 DECEMBER 2009

Table 17A: CREDIT RISK BY GROSS CREDIT EXPOSURE - OUTSTANDING AS AT 31 DEC 09

31-Dec-09	Receivables due from other banks Trading securities Investment securities Loans, advances and other receivables Credit commitments Derivative instruments $m $m $m $m $m $m	Total Credit Risk $m	Impaired assets Past Due not Impaired > 90days Total not past due or impaired Specific Provisions $m $m $m $m
Agribusiness Construction and development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government and public authorities Other commercial and industrial Total gross credit risk Eligible securitised loans Total including eligible securitised loans Impairment provision TOTAL	- - - 3,352 21 - - - - 6,017 146 - 123 7,050 3,048 2,740 156 831 - - - 1,429 - - - - - 812 - - - - - 535 - - - - - 6,368 - - - - - 25,703 1,122 - - - - 596 - - - - - 7 - - - - - 3,747 359 -	3,373 6,163 13,948 1,429 812 535 6,368 26,825 596 7 4,106	210 36 3,127 65 1,369 102 4,692 306 - - 13,948 - 34 4 1,391 23 14 10 788 7 9 2 524 3 316 11 6,041 104 28 128 26,669 13 - - 596 - - - 7 - 239 2 3,865 78
	123 7,050 3,048 51,306 1,804 831 - - - 2,875 - -	64,162 2,875	2,219 295 61,648 597 2,875
	123 7,050 3,048 54,181 1,804 831	67,037 (820)	2,219 295 64,523 597 (597) (223)
		66,217	1,622 295 64,300 597

Table 17A: CREDIT RISK BY GROSS CREDIT EXPOSURE - AVERAGE GROSS EXPOSURE OVER PERIOD - 01 SEP 09 to 31 DEC 09

31-Dec-09	Receivables due from other banks Trading securities Investment securities Loans, advances and other receivables Credit commitments Derivative instruments $m $m $m $m $m $m	Total Credit Risk $m	Impaired assets Past Due not Impaired > 90days Total not past due or impaired Specific Provisions $m $m $m $m
Agribusiness Construction and development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government and public authorities Other commercial and industrial Total gross credit risk Eligible securitised loans Total including eligible securitised loans Impairment provision TOTAL	- - - 3,372 21 - - - - 6,184 160 - 158 6,969 3,298 2,699 157 1,028 - - - 1,527 - - - - - 839 - - - - - 562 - - - - - 6,539 - - - - - 25,568 1,127 - - - - 595 - - - - - 7 - - - - - 3,877 416 -	3,393 6,344 14,308 1,527 839 562 6,539 26,695 595 7 4,292	203 31 3,148 65 1,214 169 4,890 278 0 1 14,307 - 75 5 1,442 19 17 10 809 8 9 4 546 3 290 13 6,225 100 29 119 26,110 13 - 1 584 - - - 7 - 150 27 4,065 49
	158 6,969 3,298 51,767 1,880 1,028 - - - 2,986 - -	65,100 2,986	1,986 381 62,133 534 2,986
	158 6,969 3,298 54,754 1,880 1,028	68,086 (789)	1,986 381 65,119 534 (534) (255)
		67,297	1,452 381 64,864 534

Table 17B: CREDIT RISK BY PORTFOLIO

Table 17B:CREDIT RISK BY PORTFOLIO
31-Dec-09	Gross Credit Risk Exposure Average Gross Exposure Impaired assets Past Due not Impaired > 90days Specific Provisions Charges for Specific Provisions & Write-offs $m $m $m $m $m $m
Claims secured against eligible residential mortgages Other retail Financial services Government and public authorities Corporate and other claims	26,825 26,695 28 128 13 4 596 595 - - - 2 13,948 14,308 - - - - 7 7 - - - - 22,786 23,495 2,191 168 584 197
Total	64,162 65,100 2,219 295 597 203

Table 17C: GENERAL RESERVES FOR CREDIT LOSSES

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31-Dec-09 $m
Collective provision for impairment 223
FITB relating to collective provision -67
Equity Reserve for credit lossess 292
General Reserve for Credit losses 448
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Provision for impairment		Dec-09
	Core	Non-Core	Total
	$M	$M	$M
Collective Provision
Balance at the beginning of the period	54	228	282
Charge against contribution to profit	(19)	(40)	(59)
Balance at the end of the period	35	188	223
Specific provision
Balance at the beginning of the period	42	435	477
Charge against impairment losses	4	155	159
Charge against interest income	0	(39)	(39)
Balance at the end of the period	46	551	597
Total provision for impairment - Banking Activities	81	739	820
Equity reserve for credit loss
Balance at the beginning of the period	62	133	195
Transfer to/from retained earnings	(7)	103	96
Balance at the end of the period	55	236	291
Pre-tax equivalent coverage	79	337	416
Total provision for impairment and equity reserve for credit loss coverage - Banking Activities	160	1,076	1,236
Total Expected Loss	126	919	1,045
Provision for impairment expressed as a percentage of gross impaired assets are as	%	%	%
follows:
Collective Provision	24.7	9.1	10.0
Specific Provision	32.4	26.5	26.9
Total Provision	57.1	35.6	37.0
Equity reserve for credit loss coverage	55.8	16.2	18.8
Total provision and equity reserve for credit loss coverage	112.9	51.8	55.7
Impaired Assets		Dec-09
	Core	Non-Core	Total
	$M	$M	$M
Gross balances of individually impaired loans	142	2,077	2,219
Specific provions for impairment	(46)	(551)	(597)
Net individually impaired loan	96	1,526	1,622
Past due loans not shown as impaired assets	172	123	295
Gross non performing loans	314	2,200	2,514
Gross individually impaired assets as a percentage of gross loans	0.38	12.11	4.09
Gross non performing loans as a percentage of gross lonas	0.85	12.83	4.64
Gross individually impaired assets as a percentage of impairment provisions and ERCL coverage	88.55	192.97	179.46
Impairment Provisions and ERCL coverage as a percentage of credit risk weighted assets	0.84	6.76	3.54
Impairment losses on loans and advances		Dec-09
	Core	Non-Core	Total
	$M	$M	$M
Collective provision for impairment	(19)	(40)	(59)
Specific provision for impairment	4	155	159
Actual net write offs	17	157	174
Total	2	272	274
	%	%	%
Impairment charge to credit RWA (annualised)	0.02	3.42	1.57