SUNCORP GROUP LIMITED — Audit Report / Information 2015

Feb 10, 2015

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Suncorp Group Limited ABN 66 145 290 124

Suncorp Bank APS330 as at 31 December 2014 Release date: 11 February 2015

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APS330 as at 31 December 2014

Basis of preparation

This document has been prepared by the Suncorp Bank to meet the disclosure obligations set down under the Australian Prudential Regulation Authority (APRA) Australian Prudential Standard (APS) 330: Public Disclosure .

Suncorp Bank is represented by Suncorp-Metway Ltd and its subsidiaries. Suncorp-Metway Ltd is an authorised deposit-taking institution and a wholly owned subsidiary of Suncorp Group Limited. Suncorp Group is represented by Suncorp Group Limited and its subsidiaries.

Other than statutory information required by a regulator (including APRA), all financial information is measured in accordance with Australian Accounting Standards. All figures have been quoted in Australian dollars and have been rounded to the nearest million.

This document has not been audited nor reviewed in accordance with Australian Auditing Standards. It should be read in conjunction with the Suncorp Group’s consolidated annual and interim financial reports which have been either audited or reviewed in accordance with Australian Auditing Standards.

Disclaimer

This report contains general information which is current as at 11 February 2015. It is information given in summary form and does not purport to be complete.

It is not a recommendation or advice in relation to the Suncorp Group and Suncorp Bank or any product or service offered by its entities. It is not intended to be relied upon as advice to investors or potential investors, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.

The information in this report is for general information only. To the extent that the information may constitute forward-looking statements, the information reflects Suncorp Group’s intent, belief or current expectations with respect to our business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices at the date of this report. Such forwardlooking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, many of which are beyond Suncorp Group’s control, which may cause actual results to differ materially from those expressed or implied.

Suncorp Group and Suncorp Bank undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this report (subject to stock exchange disclosure requirements).

Registered Office

Level 28, 266 George Street Brisbane Queensland 4000 Telephone: (07) 3835 5769 www.suncorpgroup.com.au

Investor Relations

Mark Ley Head of Investor Relations Telephone: (07) 3135 3991 mark.ley@suncorp.com.au

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APS330 as at 31 December 2014

Table of contents

Basis of preparation ...................................................................................................................................................... 2 Regulatory capital reconciliation .................................................................................................................................... 4 Table 1: Common disclosures – Composition of capital ................................................................................................ 6 Table 2: Main features of capital instruments .............................................................................................................. 10 Table 3: Capital adequacy ........................................................................................................................................... 11 Table 4: Credit risk ...................................................................................................................................................... 12 Table 5: Securitisation disclosures .............................................................................................................................. 17

3

APS330 as at 31 December 2014

REGULATORY CAPITAL RECONCILIATION

The following table discloses the consolidated Balance sheet of Suncorp-Metway Limited and its subsidiaries (“the Group”), as published in its reviewed financial statements, and the Balance sheet under the Level 2 regulatory scope of consolidation pursuant to APS 111.

Each component of capital reported below in Table 1: Common Disclosures – components of capital can be reconciled to the Balance sheets below using the reference letters included in both tables.

	BALANCE SHEET PER PUBLISHED REVIEWED FINANCIAL STATEMENTS	ADJUSTMENTS	BALANCE SHEET UNDER REGULATORY SCOPE OF CONSOLIDATION	REFERENCE
	DEC-14 DEC-14 DEC-14
	$M $M $M
Assets	521 566	- 521 - 566
Cash and cash equivalents
Receivables due from other banks
Trading securities	2,298 710 6,634	- 2,298 - 710 - 6,634
Derivatives
Investment securities
Investment in regulatory non-consolidated subsidiaries	- 50,280	20 20 (2,465) 47,815		(j)
Loans, advances and other receivables
of which: eligible collectiveprovision component of GRCL in tier 2 capital		(99) (o) 146 (f) 10 (g)
of which: loan and lease origination fees and commissions paid to mortgage . originators and brokers in CET1 regulatory adjustments				(f)
of which: costs associated with debt raisings in CET1 regulatory adjustments				(g)
Deferred tax assets	95	- 95
of which: arising from temporary differences included in CET1 regulatory . adjustments		88		(e)
Other assets	223	(34) 189
of which: loan and lease origination fees and commissions paid to mortgage . originators and brokers in CET1 regulatory adjustments		3		(h)
Goodwill and intangible assets	26	- 26		(d)
Total assets Liabilities	61,353	(2,479) 58,874
Deposits and short-term borrowings	(45,104) (13) (45,117) (424) 16 (408)
Derivatives
Payables due to other banks	(314) - (314)
Payables and other liabilities	(537) 12 (525)
Due to regulatory non-consolidated subsidiaries	- (42) (42)
Securitisation liabilities	(2,872) 2,503 (369)
of which: securitisation start-up costs in CET1 regulatory adjustments	7 (i)
Debt issues	(7,727) - (7,727)
Total liabilities excluding loan capital Loan capital	(56,978) 2,476 (54,502) - (742) - (742)
Subordinated notes
of which: directly issued qualifying tier 2 instruments	(670) (72)			(m)
of which: directly issued instruments subject to phase out from tier 2				(n)
Preference shares	- - - (l)
Total loan capital	(742) - (742)
Total liabilities	(57,720) 2,476 (55,244)
Net assets	3,633 (3) 3,630
Equity	(2,565) - (2,565) (a) (450) - (450) (k)
Share capital
Capital notes
Reserves	227 - 227
of which: equity component of GRCL in tier 2 capital	(144) (14)			(p)
of which: AFS reserve				(c)
Retainedprofits	(845) 3 (842)
of which: included in CET1	(471) (b)
Total equity	(3,633) 3 (3,630)

4

APS330 as at 31 December 2014

REGULATORY CAPITAL RECONCILIATION (continued)

The Level 2 group for regulatory capital purposes consists of the head entity, Suncorp-Metway Limited (“SML”), and its eligible subsidiaries.

There are no entities included in the regulatory scope of consolidation which are excluded from the accounting scope of consolidation.

The following legal entities are included in the accounting scope of consolidation but are excluded from the regulatory scope of consolidation:

	TOTAL ASSETS TOTAL LIABILITIES
	DEC-14 DEC-14 $ $
Suncorp Property Development Equity Fund #2 Pty Limited	1 -
Principal activity:

The company acts as trustee for Suncorp Property Development Equity Fund #2 Unit Trust and Polaris Data Centre Unit Trust.

	DEC-14 DEC-14 $ $
Polaris Data Centre Unit Trust	10 -
Principal activity:

The Trust was established by the directors of Suncorp Property Development Equity Fund #2 Pty Ltd (the trustee) for the purpose of forming an unincorporated joint venture for the construction and subsequent leasing of the Polaris Data Centre. In December 2011, the Trust sold its interest in the joint venture, and has since been non-operating.

	DEC-14 DEC-14 $M $M
Suncorp Property Development Equity Fund #2 Unit Trust	30 (7)
Principal activity:

The Trust was established by the directors of Suncorp Property Development Equity Fund #2 Pty Ltd (the trustee) for the purpose of forming an unincorporated joint venture to develop land for the purpose of reselling as residential housing lots.

Securitisation special purpose vehicles1	DEC-14 DEC-14 $M $M
Apollo Series 2006-1E Trust Apollo Series 2007-1E Trust Apollo Series 2010-1 Trust Apollo Series 2011-1 Trust Apollo Series 2012-1 Trust Apollo Series 2013-1 Trust	- - 345 (345) 311 (311) 563 (563) 564 (564) 755 (755)
Principal activity:

The Trusts were established for the purpose of raising funds, via the issue of mortgage backed securities, to fund the purchase of mortgage loans by equitable assignment.

Note

1. The Trusts qualify for regulatory capital relief under APS 120 and are therefore deconsolidated from the Level 2 regulatory group. The assets of the Trusts include the secured loans from SML, representing the outstanding balance of securitised mortgages and accrued interest, as well as cash and other receivables.

Any transfer of funds or regulatory capital within the Level 2 group can occur only after the relevant approvals from management and the Board of each affected entity, in line with the Group’s capital management policies. Any such transactions must be consistent with the Group’s capital management strategy objectives to ensure each entity in the Level 2 group has sufficient capital resources to maintain the business and operational requirements, retain sufficient capital to exceed externally imposed capital requirements, and ensure the Group’s ability to continue as a going concern.

5

APS330 as at 31 December 2014

TABLE 1: COMMON DISCLOSURES – COMPOSITION OF CAPITAL

The disclosures below are presented using the post 1 January 2018 common disclosure template as, pursuant to APRA guidelines, the Bank is applying, in full, the Basel III regulatory adjustments from 1 January 2013.

		DEC-14	SOURCE IN REGULATORY CAPITAL RECON- CILIATION
		$M
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25	Common Equity Tier 1capital: instruments and reserves	2,565 (a) 471 (b) 14 (c) - -
	Directly issued qualifying ordinary shares (and equivalent for mutually-owned entities) capital
	Retained earnings
	Accumulated othercomprehensiveincome (and other reserves)
	Directly issued capital subject to phase out from CET1 (only applicable to mutually- owned companies)
	Ordinary share capital issued by subsidiaries and held by third parties (amount allowed ingroup CET1)
	Common Equity Tier 1 capital before regulatory adjustments Common Equity Tier 1capital: regulatory adjustments	3,050 - 26 (d) - - - - - - - - - - - - - - - - -
	Prudential valuationadjustments
	Goodwill(net of related tax liability)
	Other intangibles otherthan mortgage servicingrights (net of related tax liability)
	Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)
	Cash-flow hedgereserve
	Shortfallofprovisions to expectedlosses
	Securitisationgainonsale (as set outinparagraph562of Basel II framework)
	Gains andlosses due to changesinowncreditriskon fair valuedliabilities
	Defined benefit superannuation fundnet assets
	Investments in own shares (if not already netted off paid-in capital on reported balance sheet)
	Reciprocalcross-holdingsincommonequity
	Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% oftheissued share capital(amount above10% threshold)
	Significant investments in the ordinary shares of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above10% threshold)
	Mortgage servicerights (amount above10% threshold)
	Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
	Amount exceeding the15% threshold
	of which:significant investments inthe ordinary shares of financial entities
	of which: mortgage servicing rights
	of which: deferred tax assets arising from temporary differences

6

APS330 as at 31 December 2014

TABLE 1: COMMON DISCLOSURES – COMPOSITION OF CAPITAL (continued)

		DEC-14	SOURCE IN REGULATORY CAPITAL RECON- CILIATION
		$M
26 26a 26b 26c 26d 26e 26f 26g 26h 26i 26j 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 41a 41b 41c 42 43 44 45	National specific regulatory adjustments (sum of rows 26a, 26b, 26c, 26d, 26e, 26f, 26g,26h,26i and26j)	274 - - - - 88 (e) 166 (f)+(g)+(h)+(i) - - - 20 (j) -
	of which: treasury shares
	of which: offset to dividends declared under a dividend reinvestment plan (DRP), to . the extent that the dividends are used to purchase new ordinary shares . issued by the ADI
	of which: deferred fee income
	of which: equity investments in financial institutions not reported in rows 18, 19 and23
	of which: deferred tax assets not reported in rows 10,21 and25
	of which: capitalised expenses
	of which: investments in commercial (non-financial) entities that are deducted under . APRA rules
	of which: covered bonds in excess of asset cover in pools
	of which: undercapitalisation of a non-consolidated subsidiary
	of which: other national specific regulatory adjustments not reported in rows26a- 26i
	Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier2to cover deductions
	Total regulatory adjustments to Common Equity Tier 1	300
	Common Equity Tier 1 Capital(CET1)	2,750
	Additional Tier 1 Capital: instruments	450 (k) 450 (k) - - (l) - -
	Directly issued qualifying Additional Tier 1 instruments
	of which: classified as equity under applicable accounting standards
	of which: classified as liabilities under applicable accounting standards
	Directly issued capital instruments subject to phase out from Additional Tier 1
	Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1)
	of which: instruments issued by subsidiaries subject to phase out
	Additional Tier 1 Capital before regulatory adjustments Additional Tier 1 Capital: regulatory adjustments	450 - - - - - - - - -
	Investments in own Additional Tier 1 instruments
	Reciprocal cross-holdings in Additional Tier 1 instruments
	Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold)
	Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions)
	National specific regulatory adjustments (sum of rows 41a, 41b and 41c)
	of which: holdings of capital instruments in group members by other group members . on behalf of third parties
	of which: investments in the capital of financial institutions that are outside the scope of . regulatory consolidations not reported in rows 39 and 40
	of which: other national specific regulatory adjustments not reported in rows 41a & 41b
	Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
	Total regulatory adjustments to Additional Tier 1 capital	-
	Additional Tier 1 capital (AT1)	450
	Tier 1 Capital(T1=CET1+AT1)	3,200

7

APS330 as at 31 December 2014

TABLE 1: COMMON DISCLOSURES – COMPOSITION OF CAPITAL (continued)

		DEC-14	SOURCE IN REGULATORY CAPITAL RECON- CILIATION
		$M
46 47 48 49 50 51 52 53 54 55 56 56a 56b 56c 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75	Tier 2 Capital: instruments and provisions
	Directly issued qualifying Tier 2 instruments
	Directly issued capital instruments subject to phase out from Tier 2
	Tier 2 Capital before regulatory adjustments 985 Tier 2 Capital: regulatory adjustments Investments in own Tier 2 instruments - Reciprocal cross-holdings in Tier 2 instruments - Investments in the Tier 2 capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold) - Significant investments in the Tier 2 capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions - National specific regulatory adjustments (sum of rows 56a, 56b and 56c) - of which: holdings of capital instruments in group members by other group members . on behalf of third parties - of which: investments in the capital of financial institutions that are outside the scope . of regulatory consolidation not reported in rows 54 and 55 - of which: other national specific regulatory adjustments not reported in rows 56a & 56b -
	Total regulatory adjustments to Tier 2 capital -
	Tier 2 capital(T2) 985
	Total capital(TC=T1+T2) 4,185
	Total risk-weighted assets based on APRA standards 31,226
	Capital ratios and buffers Common Equity Tier 1 (as a percentage of risk-weighted assets) 8.81% Tier 1 (as a percentage of risk-weighted assets) 10.25% Total capital (as a percentage of risk-weighted assets) 13.40% Buffer requirement (minimum CET1 requirement of 4.5% plus capital conservation buffer of 2.5% plus any countercyclical buffer requirements expressed as a percentage of risk-weighted assets) 7.00% of which: capital conservation buffer requirement 2.50% of which: ADI-specific countercyclical buffer requirements - of which: G-SIB buffer requirement (not applicable) Common Equity Tier 1 available to meet buffers (as a percentage of risk-weighted assets) 8.81% National minima (if different from Basel III) National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) n/a National Tier 1 minimum ratio (if different from Basel III minimum) n/a National total capital minimum ratio (if different from Basel III minimum) n/a Amount below thresholds for deductions (not risk-weighted) Non-significant investments in the capital of other financial entities - Significant investments in the ordinary shares of financial entities - Mortgage servicing rights (net of related tax liability) - Deferred tax assets arisingfrom temporarydifferences(net of related tax liability) 88 (e)

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APS330 as at 31 December 2014

TABLE 1: COMMON DISCLOSURES – COMPOSITION OF CAPITAL (continued)

		DEC-14	SOURCE IN REGULATORY CAPITAL RECON- CILIATION
		$M
76 77 78 79 80 81 82 83 84 85	Applicable caps on the inclusion of provisions in Tier 2	243 346 n/a n/a - - 612 - 151 -
	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach(priorto applicationofcap)		(o)+(p)
	Cap on inclusionofprovisionsin Tier 2understandardised approach
	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach(priorto applicationofcap)
	Cap for inclusion of provisions in Tier 2 under internal ratings-based approach Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2018 and 1Jan 2022)
	Current cap on CET1 instruments subject to phase out arrangements
	Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities
	Current cap on AT1 instruments subject to phase out arrangements
	Amount excluded from AT1 instruments due to cap (excess over cap after redemptions and maturities)
	Current cap on T2 instruments subject to phase out arrangements
	Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)

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APS330 as at 31 December 2014

TABLE 2: MAIN FEATURES OF CAPITAL INSTRUMENTS

Attachment B of APS 330 details the continuous disclosure requirements for the main features of all capital instruments included in the Group’s regulatory capital.

The Group’s main features of capital instruments are updated on an ongoing basis and are available at www.suncorpgroup.com.au/investors/regulatory-disclosures.

The full terms and conditions of all of Suncorp Group’s regulatory capital instruments are available at www.suncorpgroup.com.au/investors/securities[1] .

Note

1. The published full terms and conditions represent the comparable capital instruments issued by Suncorp Group Limited to external investors. The terms of these instruments may differ slightly to those instruments issued by the regulatory Level 2 group.

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APS330 as at 31 December 2014

TABLE 3: CAPITAL ADEQUACY

	CARRYING VALUE	AVG RISK WEIGHT	RISK-WEIGHTED ASSETS
	DEC-14 SEP-14 DEC-14 DEC-14 SEP-14 $M $M % $M $M
On-balance sheet credit 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	613 684 - 0 3 2,638 2,261 - - - 3,358 4,710 22 722 984 1,054 1,153 20 211 231 37,870 36,522 39 14,841 14,450 570 624 98 559 601
Other retail assets	547 573 81 444 466
Corporate Other assets and claims	8,732 8,752 100 8,714 8,734 133 159 98 131 156
Total Banking assets(1)	55,515 55,438 46 25,622 25,625

(1) The total carrying value of Banking assets differs from the Group’s total assets under the accounting scope of consolidation due to the adoption of APRA’s classification of intangible assets, deferred tax assets, incorporation of trading book assets in the market risk capital charge and general reserve for credit losses for capital adequacy purposes.

	NOTIONAL AMOUNT	CREDIT EQUIVALENT	AVG RISK WEIGHT	**RISK-WEIGH **	TED ASSETS
	DEC-14	DEC-14	DEC-14	DEC-14
Off-balance sheet positions Guarantees entered into in the normal course of business Commitments to provide loans and advances Foreign exchange contracts Interest rate contracts Securitisation exposures CVAcapitalcharge	291 290 70 204 210 9,108 3,373 46 1,545 970 5,915 262 25 66 73 62,541 133 46 61 82 2,563 33 85 28 33 - - - 134 141
Total off-balance sheetpositions	80,418 4,091 50 2,038 1,509
Market risk capital charge Operational risk capital charge Total on-balance sheet credit risk-weighted assets				284 221 3,282 3,265 25,622 25,625
Total Assessed Risk				31,226 30,620
Risk-weighted capital ratios				% %
Common Equity Tier 1 Tier 1 Tier 2				8.81 8.70 10.25 10.18 3.15 3.20
Total risk-weighted capital ratio				13.40 13.38

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APS330 as at 31 December 2014

TABLE 4: CREDIT RISK

TABLE 4A: CREDIT RISK BY GROSS CREDIT EXPOSURE – OUTSTANDING AS AT 31 DECEMBER 2014

	RECEIVABLES DUE FROM OTHER BANKS (4) TRADING SECURITIES INVESTMENT SECURITIES LOANS, ADVANCES AND OTHER RECEIVABLES (3) CREDIT COMMITMENTS (2) DERIVATIVE INSTRUMENTS (2)	TOTAL CREDIT RISK IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS TOTAL NOT PAST DUE OR IMPAIRED SPECIFIC PROVISIONS
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	$M $M $M $M $M $M	$M $M $M $M $M
	- - - 4,103 185 -	4,288 155 25 4,108 52
	- - - 582 148 -	730 17 3 710 10
	566 2,298 5,580 278 177 395	9,294 - - 9,294 -
	- - - 998 47 -	1,045 26 1 1,018 10
	- - - 363 21 -	384 13 13 358 10
	- - - 244 9 -	253 9 1 243 3
	- - - 1,911 87 -	1,998 8 21 1,969 7
	- - - 37,316 2,873 -	40,189 20 291 39,878 4
	- - - 403 11 -	414 - 7 407 -
	- - - 1 - -	1 - - 1 -
	- - - 1,849 105 -	1,954 14 32 1,908 8
Total gross credit risk Securitisation Exposures (1)	566 2,298 5,580 48,048 3,663 395	60,550 262 394 59,894 104
	- - 1,054 2,465 24 9	3,552 - - 3,552 -
Total including Securitisation Exposures Impairment provision TOTAL	566 2,298 6,634 50,513 3,687 404	64,102 262 394 63,446 104
		(233) (104) (30) (99)
		63,869 158 364 63,347

(1) The securitisation exposures of $2,465 million included under “Loans advances and other receivables” qualify for regulatory capital relief under APS 120 and therefore does not contribute to the Bank’s Total gross credit risk. The remaining securitisation exposures carry credit risk commensurate with their respective asset classes in accordance with APS 120.

(2) “Credit commitments” and “Derivative instruments” represent the credit equivalent amount of the Bank’s off-balance sheet exposures calculated in accordance with APS 112.

(3) Total loans, advances and other receivables includes receivables due from related parties.

(4) Receivables due from other Banks includes collateral deposits provided to derivative counterparties.

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APS330 as at 31 December 2014

TABLE 4: CREDIT RISK (continued)

TABLE 4A: CREDIT RISK BY GROSS CREDIT EXPOSURE – OUTSTANDING AS AT 30 SEPTEMBER 2014

	RECEIVABLES DUE FROM OTHER BANKS (4) TRADING SECURITIES INVESTMENT SECURITIES LOANS, ADVANCES AND OTHER RECEIVABLES (3) CREDIT COMMITMENTS (2) DERIVATIVE INSTRUMENTS (2)	TOTAL CREDIT RISK IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS TOTAL NOT PAST DUE OR IMPAIRED SPECIFIC PROVISIONS
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	$M $M $M $M $M $M	$M $M $M $M $M
	- - - 4,245 200 -	4,445 155 25 4,265 48
	- - - 668 168 -	836 29 5 802 11
	676 1,499 5,672 248 188 432	8,715 - - 8,715 -
	- - - 1,091 46 -	1,137 33 1 1,103 14
	- - - 398 29 -	427 12 15 400 10
	- - - 279 10 -	289 10 1 278 2
	- - - 1,405 78 -	1,483 2 15 1,466 -
	- - - 35,935 1,226 -	37,161 18 313 36,830 4
	- - - 413 11 -	424 - 8 416 -
	- - - 1 - -	1 - - 1 -
	- - - 2,099 113 -	2,212 22 40 2,150 13
Total gross credit risk Securitisation Exposures(1)	676 1,499 5,672 46,782 2,069 432	57,130 281 423 56,426 102
	- - 1,153 2,883 28 10	4,074 - - 4,074 -
Total including Securitisation Exposures Impairment provision TOTAL	676 1,499 6,825 49,665 2,097 442	61,204 281 423 60,500 102
		(224) (102) (31) (91)
		60,980 179 392 60,409

(1) The securitisation exposures of $2,883 million included under “Loans advances and other receivables” qualify for regulatory capital relief under APS 120 and therefore does not contribute to the Bank’s Total gross credit risk. The remaining securitisation exposures carry credit risk commensurate with their respective asset classes in accordance with APS 120.

(2) “Credit commitments” and “Derivative instruments” represent the credit equivalent amount of the Bank’s off-balance sheet exposures calculated in accordance with APS 112.

(3) Total loans, advances and other receivables includes receivables due from related parties.

(4) Receivables due from other Banks includes collateral deposits provided to derivative counterparties.

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APS330 as at 31 December 2014

TABLE 4: CREDIT RISK (continued)

TABLE 4A: CREDIT RISK BY GROSS CREDIT EXPOSURE – AVERAGE GROSS EXPOSURE OVER PERIOD 1 OCTOBER TO 31 DECEMBER 2014

	RECEIVABLES DUE FROM OTHER BANKS (4) TRADING SECURITIES INVESTMENT SECURITIES LOANS, ADVANCES AND OTHER RECEIVABLES (3) CREDIT COMMITMENTS (2) DERIVATIVE INSTRUMENTS (2)	TOTAL CREDIT RISK IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS TOTAL NOT PAST DUE OR IMPAIRED SPECIFIC PROVISIONS
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	$M $M $M $M $M $M	$M $M $M $M $M
	- - - 4,174 193 -	4,367 155 25 4,187 49
	- - - 625 158 -	783 23 4 756 10
	621 1,899 5,626 263 183 414	9,006 - - 9,006 -
	- - - 1,045 47 -	1,092 30 1 1,061 12
	- - - 381 25 -	406 13 14 379 10
	- - - 262 10 -	272 10 1 261 3
	- - - 1,658 83 -	1,741 5 18 1,718 4
	- - - 36,626 2,050 -	38,676 19 302 38,355 4
	- - - 408 11 -	419 - 8 411 -
	- - - 1 - -	1 - - 1 -
	- - - 1,974 109 -	2,083 18 36 2,029 11
Total gross credit risk Securitisation Exposures(1)	621 1,899 5,626 47,417 2,869 414	58,846 273 409 58,164 103
	- - 1,104 2,674 26 10	3,814 - - 3,814 -
Total including Securitisation Exposures Impairment provision TOTAL	621 1,899 6,730 50,091 2,895 424	62,660 273 409 61,978 103
		(229) (103) (31) (95)
		62,431 170 378 61,883

(1) The securitisation exposures of $2,674 million included under “Loans advances and other receivables” qualify for regulatory capital relief under APS 120 and therefore does not contribute to the Bank’s Total gross credit risk. The remaining securitisation exposures carry credit risk commensurate with their respective asset classes in accordance with APS 120.

(2) “Credit commitments” and “Derivative instruments” represent the credit equivalent amount of the Bank’s off-balance sheet exposures calculated in accordance with APS 112.

(3) Total loans, advances and other receivables includes receivables due from related parties.

(4) Receivables due from other Banks includes collateral deposits provided to derivative counterparties.

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APS330 as at 31 December 2014

TABLE 4: CREDIT RISK (continued)

TABLE 4A: CREDIT RISK BY GROSS CREDIT EXPOSURE – AVERAGE GROSS EXPOSURE OVER PERIOD 1 JULY TO 30 SEPTEMBER 2014

	RECEIVABLES DUE FROM OTHER BANKS (4) TRADING SECURITIES INVESTMENT SECURITIES LOANS, ADVANCES AND OTHER RECEIVABLES (3) CREDIT COMMITMENTS (2) DERIVATIVE INSTRUMENTS (2)	TOTAL CREDIT RISK IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS TOTAL NOT PAST DUE OR IMPAIRED SPECIFIC PROVISIONS
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	$M $M $M $M $M $M	$M $M $M $M $M
	- - - 4,257 186 -	4,443 176 17 4,250 48
	- - - 637 155 -	792 33 5 754 11
	802 1,546 5,482 294 187 395	8,706 - - 8,706 -
	- - - 1,047 53 -	1,100 31 1 1,068 13
	- - - 381 27 -	408 12 15 381 10
	- - - 269 10 -	279 8 2 269 2
	- - - 1,700 80 -	1,780 7 15 1,758 5
	- - - 35,890 1,232 -	37,122 20 336 36,766 4
	- - - 422 11 -	433 - 8 425 -
	- - - 1 - -	1 - - 1 -
	- - - 2,019 111 -	2,130 22 35 2,073 11
Total gross credit risk Securitisation Exposures(1)	802 1,546 5,482 46,917 2,052 395	57,194 309 434 56,451 104
	- - 1,181 2,993 29 11	4,214 - - 4,214 -
Total including Securitisation Exposures Impairment provision TOTAL	802 1,546 6,663 49,910 2,081 406	61,408 309 434 60,665 104
		(226) (104) (33) (89)
		61,182 205 401 60,576

(1) The securitisation exposures of $2,993 million included under “Loans advances and other receivables” qualify for regulatory capital relief under APS 120 and therefore does not contribute to the Bank’s Total gross credit risk. The remaining securitisation exposures carry credit risk commensurate with their respective asset classes in accordance with APS 120.

(2) “Credit commitments” and “Derivative instruments” represent the credit equivalent amount of the Bank’s off-balance sheet exposures calculated in accordance with APS 112.

(3) Total loans, advances and other receivables includes receivables due from related parties.

(4) Receivables due from other Banks includes collateral deposits provided to derivative counterparties.

15

APS330 as at 31 December 2014

TABLE 4: CREDIT RISK (continued)

TABLE 4B: CREDIT RISK BY PORTFOLIO – 31 DECEMBER 2014

	GROSS CREDIT RISK EXPOSURE AVERAGE GROSS EXPOSURE IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS SPECIFIC PROVISIONS CHARGES FOR SPECIFIC PROVISIONS & WRITE OFFS
Claims secured against eligible residential mortgages Other retail Financial services Government and public authorities Corporate and other claims	$M $M $M $M $M $M
	40,189 38,676 20 291 4 1
	414 419 - 7 - 2
	9,294 9,006 - - - -
	1 1 - - - -
	10,65210,74424296 100 13
Total	60,550 58,846 262 394 104 16

TABLE 4B: CREDIT RISK BY PORTFOLIO – 30 SEPTEMBER 2014

	GROSS CREDIT RISK EXPOSURE AVERAGE GROSS EXPOSURE IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS SPECIFIC PROVISIONS CHARGES FOR SPECIFIC PROVISIONS & WRITE OFFS
Claims secured against eligible residential mortgages Other retail Financial services Government and public authorities Corporate and other claims	$M $M $M $M $M $M
	37,161 37,122 18 313 4 1
	424 433 - 8 - 2
	8,715 8,706 - - - -
	1 1 - - - -
	10,829 10,932 263 10298 15
Total	57,130 57,194 281 423 102 18

TABLE 4C: GENERAL RESERVES FOR CREDIT LOSSES

	DEC-14 SEP-14
Collective provision for impairment Ineligible Collective Provisions on Past Due not Impaired	$M $M
	129 122
	(30) (31)
Eligible Collective Provisions EquityReserve for credit losses	99 91
	144 149
General Reserve for Credit losses	243 240

16

APS330 as at 31 December 2014

TABLE 5: SECURITISATION EXPOSURES

TABLE 5A: SUMMARY OF SECURITISATION ACTIVITY FOR THE PERIOD

	EXPOSURES SECURITISED	RECOGNISED GAIN OR (LOSS) ON SALE
	DEC-14 SEP-14 DEC-14 SEP-14 $M $M $M $M
Residential mortgages	- - - -
Total exposures securitised during theperiod	- - - -

TABLE 5B(I): AGGREGATE OF ON-BALANCE SHEET SECURITISATION EXPOSURES BY EXPOSURE TYPE

	EXPOSURE	EXPOSURE
Exposure type	DEC-14 SEP-14 $M $M
Debt securities	1,054 1,153
Total on-balance sheet securitisation exposures	1,054 1,153

TABLE 5B(II): AGGREGATE OF OFF-BALANCE SHEET SECURITISATION EXPOSURES BY EXPOSURE TYPE

	PRINCIPAL OR NOTIONAL EXPOSURE PRINCIPAL OR NOTIONAL EXPOSURE
Exposure type	DEC-14 SEP-14 $M $M
Liquidity facilities Derivative exposures	48 56 2,515 2,950
Total off-balance sheet securitisation exposures	2,563 3,006

17