SUNCORP GROUP LIMITED — Audit Report / Information 2018

Feb 14, 2018

SUNCORP GROUP LIMITED ABN 66 145 290 124 SUNCORP BANK APS330

as at 31 DECEMBER 2017 RELEASE DATE: 15 FEBRUARY 2018

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APS 330

SUNCORP

Basis of preparation

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

Suncorp Bank is represented by Suncorp-Metway Limited ( SML ) and its subsidiaries. SML is an authorised deposit-taking institution ( ADI ) 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 Suncorp Group’s consolidated annual and interim financial reports which have been either audited or reviewed in accordance with Australian Auditing Standards.

Figures relate to the quarter ended 31 December 2017 (unless otherwise stated) and should be read in conjunction with other information concerning Suncorp Group filed with the Australian Securities Exchange ( ASX ).

Disclaimer

This report contains general information which is current as at 15 February 2018. 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 forward-looking 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 undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this report (subject to ASX disclosure requirements).

Registered office

Level 28, 266 George Street Brisbane Queensland 4000 Telephone: (07) 3362 1222 suncorpgroup.com.au

Investor Relations

Kelly Hibbins Andrew Dempster Head of Investor Relations EM Investor Relations Telephone: (02) 8121 9208 Telephone: (02) 8121 9206 kelly.hibbins@suncorp.com.au andrew.dempster@suncorp.com.au

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APS 330

Table of Contents

Basis of preparation ....................................................................................................................................................... 2 Regulatory capital reconciliation .................................................................................................................................... 4 Table 1: Capital disclosure template .............................................................................................................................. 6 Table 2: Main features of capital instruments ................................................................................................................ 7 Table 3: Capital adequacy ............................................................................................................................................. 8 Table 4: Credit risk ........................................................................................................................................................ 9 Table 5: Securitisation exposures ................................................................................................................................ 15 Table 20: Liquidity coverage ratio disclosure ............................................................................................................... 16 Appendix – Definitions ................................................................................................................................................. 17

AS AT 31 DECEMBER 2017

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APS 330

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Regulatory Capital Reconciliation

The following table discloses the consolidated balance sheet of SML and its subsidiaries ( Suncorp Bank ), as published in its reviewed financial statements, and the balance sheet under the Level 2 regulatory scope of consolidation pursuant to APS 111 Capital Adequacy: Measurement of Capital .

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

	Per table 1	Per table 1	Statutory	Statutory	Adjustments		Regulatory	Regulatory
		capital	Dec-17		Dec-17		Dec-17
	disclosure		**$M **		**$M **		**$M **
	Assets
	Cash and cash equivalents		363		(5)		358
	Receivables due from other banks		470			-	470
	Trading securities		1,512			-	1,512
	Derivatives		117			-	117
	Investment securities		4,576			-	4,576
	Investment in regulatory non-consolidated subsidiaries	(i)			1		1
	Loans and advances		57,635		(3,976)		53,659
	of which: eligible collective provision component of GRCL in tier 2 capital	(o)				-	(75)
	of which: loan and lease origination fees and commissions paid to
	mortgage originators and brokers in CET1 regulatory adjustments	(f)				-	222
	of which: costs associated with debt raisings in CET1 regulatory
	adjustments	(g)				-	13
	Due from related parties		317			-	317
	Deferred tax assets		47			-	47
	of which: arising from temporary differences included in CET1 regulatory
	adjustments	(e)				-	33
	Goodwill	(d)	21			-	21
	Other assets		148		(20)		128
	Total assets		65,206		(4,000)		61,206
	Liabilities
	Payables due to other banks		54			-	54
	Deposits and short-term borrowings		46,024		14		46,038
	Derivatives		294			-	294
	Payables and other liabilities		405		(9)		396
	Due to related parties		25			-	25
	Due to regulatory non-consolidated subsidiaries				71		71
	Securitisation liabilities		4,111		(4,060)		51
	of which: securitisation start-up costs in CET1 regulatory adjustments	(h)				-	7
	Debt issues		9,722			-	9,722
	Subordinated notes		742			-	742
	of which: directly issued qualifying tier 2 instruments	(k)				-	670
	of which: directly issued instruments subject to phase out from tier 2	(l)				-	72
	Total liabilities		61,377		(3,984)		57,393
	Net assets		3,829		(16)		3,813
	Equity
	Share capital	(a)	2,648			-	2,648
	Capital notes	(j)	550			-	550
	Reserves		(308)			-	(308)
	of which: equity component of GRCL in tier 2 capital	(m)				-	84
	of which: AFS reserve	(c)				-	12
	of which: cash flow hedge reserve	(n)				-	(32)
	Retained profits		939		(16)		923
	of which: included in CET1	(b)				-	551
	Total equity attributable to owners of the Company		3,829		(16)		3,813

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APS330

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Regulatory Capital Reconciliation (Continued)

The Level 2 group for regulatory capital purposes consists of the parent entity, SML, and its eligible subsidiaries.

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

scope of consolidation:
	Total	Total
	assets	liabilities
	Dec-17	Dec-17
	$	$
SPDEF #2 Pty Ltd	1	-
Principal activity:

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

	Total	Total
	assets	liabilities
	Dec-17	Dec-17
	**$M **	**$M **
Suncorp Property Development Equity Fund #2 Unit Trust	18	2
Principal activity:

The Trust was established by the directors of SPDEF #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.

	Total	Total
	assets	liabilities
	Dec-17	Dec-17
	**$M **	**$M **
Securitisation special purpose vehicles(1)
Apollo Series 2010-1 Trust	152	152
Apollo Series 2011-1 Trust	254	254
Apollo Series 2012-1 Trust	261	261
Apollo Series 2013-1 Trust	344	344
Apollo Series 2015-1 Trust	613	613
Apollo Series 2017-1 Trust	1,009	1,009
Apollo Series 2017-2 Trust	1,433	1,433
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.

(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 Suncorp Group’s capital management policies. Any such transactions must be consistent with the Suncorp 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 Suncorp Bank’s ability to continue as a going concern.

AS AT 31 DECEMBER 2017

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APS 330

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Table 1: Capital Disclosure Template

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

1 January 2013.
	Per regulatory
	capital		Dec-17
	**reconciliation **		**$M **
Common Equity Tier 1 capital: instruments and reserves
Directly issued qualifying ordinary shares (and equivalent for mutually-owned entities) capital	(a)		2,648
Retained earnings	(b)		551
Accumulated other comprehensive income (and other reserves)	(c)+(n)		(20)
Common Equity Tier 1 capital before regulatory adjustments			3,179
Common Equity Tier 1 capital: regulatory adjustments
Goodwill (net of related tax liability)	(d)		21
Cash-flow hedge reserve	(n)		(32)
National specific regulatory adjustments			276
of which: deferred tax assets	(e)		33
of which: capitalised expenses	(f)+(g)+(h)		242
of which: other national specific regulatory adjustments not reported above	(i)		1
Total regulatory adjustments to Common Equity Tier 1			265
Common Equity Tier 1 Capital (CET1)			2,914
Additional Tier 1 Capital: instruments
Directly issued qualifying Additional Tier 1 instruments			550
of which: classified as equity under applicable accounting standards	(j)		550
Additional Tier 1 Capital before regulatory adjustments			550
Additional Tier 1 Capital: regulatory adjustments			-
Additional Tier 1 capital (AT1)			550
Tier 1 Capital (T1=CET1+AT1)			3,464
Tier 2 Capital: instruments and provisions
Directly issued qualifying Tier 2 instruments	(k)		670
Directly issued capital instruments subject to phase out from Tier 2	(l)		72
Provisions	(m)+(o)		159
Tier 2 Capital before regulatory adjustments			901
Tier 2 Capital: regulatory adjustments			-
Tier 2 capital (T2)			901
Total capital (TC=T1+T2)			4,365
Total risk-weighted assets based on APRA standards			32,530
Capital ratios and buffers
Common Equity Tier 1 (as a percentage of risk-weighted assets)			8.96%
Tier 1 (as a percentage of risk-weighted assets)			10.65%
Total capital (as a percentage of risk-weighted assets)			13.42%
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%
Common Equity Tier 1 available to meet buffers (as a percentage of risk-weighted assets)			8.96%
Amount below thresholds for deductions (not risk-weighted)
Deferred tax assets arising from temporary differences (net of related tax liability)	(e)		33
Applicable caps on the inclusion of provisions in Tier 2
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach
(prior to application of cap)	(m)+(o)		159
Cap on inclusion of provisions in Tier 2 under standardised approach			363
Capital instruments subject to phase-out arrangements
(only applicable between 1 Jan 2018 and 1 Jan 2022)
Current cap on T2 instruments subject to phase out arrangements			95

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APS330

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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 Suncorp Bank’s regulatory capital.

The Suncorp Bank’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 externally issued regulatory capital instruments are available at www.suncorpgroup.com.au/investors/securities[(1)] .

• (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.

AS AT 31 DECEMBER 2017

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APS 330

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Table 3: Capital Adequacy

Table 3: Capital Adequacy	Table 3: Capital Adequacy	Table 3: Capital Adequacy	Table 3: Capital Adequacy	Table 3: Capital Adequacy	Table 3: Capital Adequacy
Carrying value Avg risk weight Risk weighted assets
	Dec-17	Sep-17	Dec-17	Dec-17	Sep-17
$M $M % $M $M
On-balance sheet credit risk-weighted assets
Cash items 399 412 - 1 4
Claims on Australian and foreign governments 2,426 3,872 - - -
Claims on central banks, international banking agencies, regional development banks, ADIs and overseas banks 1,222 1,311 21 259 303
Claims on securitisation exposures 1,345 1,380 20 268 276
Claims secured against eligible residential mortgages 43,462 42,100 37 16,109 15,669
Past due claims 504 583 84 422 504
Other retail assets 359 384 82 295 321
Corporate 9,293 9,150 100 9,285 9,136
Other assets and claims 296 367 100 296 366
Total banking assets 59,306 59,559 26,935 26,579
Notional amount Credit equivalent Avg risk weight Risk weighted assets
	Dec-17	Dec-17	Dec-17	Dec-17	Sep-17
$M $M % $M $M
Off-balance sheet positions
Guarantees entered into in the normal course of business 275 273 69 188 174
Commitments to provide loans and advances 9,357 2,871 58 1,652 1,937
Foreign exchange contracts 5,459 66 24 16 17
Interest rate contracts 49,290 85 31 26 30
Securitisation exposures 4,128 135 57 85 67
CVA capital charge - - - 117 80
Total off-balance sheet positions 68,509 3,430 2,084 2,305
Market risk capital charge 70 103
Operational risk capital charge 3,441 3,424
Total off-balance sheet positions 2,084 2,305
Total on-balance sheet credit risk-weighted assets 26,935 26,579
Total assessed risk 32,530 32,411
Risk-weighted capital ratios % %
Common Equity Tier 1 8.96 8.77
Tier 1 10.65 11.31
Tier 2 2.77 2.76
Total risk-weighted capital ratio 13.42 **14.07 **

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APS 330

Table 4: Credit Risk

Table 4A: Credit risk by gross credit exposure – outstanding as at 31 December 2017

Receivables due from other Banks (2) Trading securities Derivatives Investment securities Loans and advances Off-balance sheet exposures (credit equivalent amount)(3) $M $M $M $M $M $M	Total credit risk (4) Gross impaired assets Past due not impaired > 90 days Total not past due or impaired Specific provisions (5) $M $M $M $M $M
Agribusiness - - - - 3,876 250 Construction & development - - - - 719 243 Financial services 470 - 117 905 98 377 Hospitality - - - - 973 51 Manufacturing - - - - 259 22 Professional services - - - - 280 21 Property investment - - - - 2,275 159 Real estate - Mortgage - - - - 42,958 1,867 Personal - - - - 259 5 Government/public authorities - 1,512 - 2,326 - - Other commercial & industrial - - - - 2,093 300	4,126 44 19 4,063 15
	962 - - 962 -
	1,967 - 1 1,966 -
	1,024 21 - 1,003 4
	281 2 - 279 -
	301 3 3 295 3
	2,434 5 2 2,427 3
	44,825 40 338 44,447 5
	264 - 7 257 -
	3,838 - - 3,838 -
	2,393 21 24 2,348 7
Total gross credit risk 470 1,512 117 3,231 53,790 3,295 Securitisation exposures(1) 1,345 3,976 135	62,415 136 394 61,885 37
	5,456 - 17 5,439 -
Total including Securitisation 470 1,512 117 4,576 57,766 3,430 Impairment provision TOTAL	67,871 136 411 67,324 37
	(131) (37) (19) (75)
	67,740 99 392 67,249

• (1) The securitisation exposures of $3,976 million included under Loans and advances qualify for regulatory capital relief under APS 120 Securitisation and therefore do 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 Securitisation .

• (2) Receivables due from other banks include collateral deposits provided to derivative counterparties.

• (3) Represent the credit equivalent amount of the Bank’s off-balance sheet exposures calculated in accordance with APS 112 Capital Adequacy .

• (4) Total credit risk excludes cash and cash equivalents, including any reverse repurchase agreements held by the ADI.

• (5) In accordance with APS 220, regulatory specific provisions represents $37 million specific provisions for accounting purposes plus $19 million ineligible collective provision.

AS AT 31 DECEMBER 2017

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APS 330

Table 4: Credit Risk (continued)

Table 4A: Credit risk by gross credit exposure – outstanding as at 30 September 2017

	Receivables due from other Banks (2) Trading securities Derivatives Investment securities Loans and advances Off-balance sheet exposures (credit equivalent amount)(3) $M $M $M $M $M $M	Total credit risk (4) Gross impaired assets Past due not impaired > 90 days Total not past due or impaired Specific provisions (5) $M $M $M $M $M
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	- - - - 3,900 256	4,156 65 15 4,076 12
	- - - - 669 261	930 2 1 927 1
	557 - 149 919 97 378	2,100 - 1 2,099 -
	- - - - 971 57	1,028 35 - 993 13
	- - - - 265 22	287 2 1 284 -
	- - - - 283 18	301 5 2 294 3
	- - - - 2,208 146	2,354 5 3 2,346 3
	- - - - 41,691 2,670	44,361 33 369 43,959 5
	- - - - 255 5	260 - 7 253 -
	- 1,586 - 2,240 - -	3,826 - - 3,826 -
	- - - - 2,068 182	2,250 16 26 2,208 6
Total gross credit risk Securitisation exposures(1)	557 1,586 149 3,159 52,407 3,995	61,853 163 425 61,265 43
	1,380 4,237 96	5,713 - 18 5,695 -
Total including Securitisation Impairment provision TOTAL	557 1,586 149 4,539 56,644 4,091	67,566 163 443 66,960 43
		(140) (43) (25) (72) 67,426 120 418 66,888

(1) The securitisation exposures of $4,237 million included under Loans and advances qualify for regulatory capital relief under APS 120 Securitisation and therefore do 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 Securitisation .

(2) Receivables due from other banks include collateral deposits provided to derivative counterparties.

(3) Represent the credit equivalent amount of the Bank’s off-balance sheet exposures calculated in accordance with APS 112 Capital Adequacy .

(4) Total credit risk excludes cash and cash equivalents, including any reverse repurchase agreements held by the ADI.

(5) In accordance with APS 220, regulatory specific provisions represents $43 million specific provisions for accounting purposes plus $27 million ineligible collective provision.

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APS 330

Table 4: Credit Risk (continued)

Table 4A: Credit risk by gross credit exposure – average gross exposure over period 1 October to 31 December 2017

Receivables due from other banks(2) Trading securities Derivatives Investment securities Loans and advances Off-balance sheet exposures (credit equivalent amount)(3) $M $M $M $M $M $M	Total credit risk (4) $M
Agribusiness - - - - 3,888 253 Construction & development - - - - 694 252 Financial services 514 - 133 912 98 378 Hospitality - - - - 972 54 Manufacturing - - - - 262 22 Professional services - - - - 282 20 Property investment - - - - 2,242 153 Real estate - Mortgage - - - - 42,325 2,269 Personal - - - - 257 5 Government/public authorities - 1,549 - 2,283 - - Other commercial & industrial - - - - 2,081 241	4,141
	946
	2,035
	1,026
	284
	302
	2,395
	44,594
	262
	3,832
	2,322
Total gross credit risk 514 1,549 133 3,195 53,101 3,647 Securitisation exposures(1) 1,363 4,107 116	62,139
	5,586
Total including Securitisation exposures 514 1,549 133 4,558 57,208 3,763 Impairment provision TOTAL	67,725
	(136)
	67,589

(1) The securitisation exposures of $4,107 million included under Loans and advances qualify for regulatory capital relief under APS 120 Securitisation and therefore do 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 Securitisation .

(2) Receivables due from other banks include collateral deposits provided to derivative counterparties.

(3) Represent the credit equivalent amount of the Bank’s off-balance sheet exposures calculated in accordance with APS 112 Capital Adequacy .

(4) Total credit risk excludes cash and cash equivalents, including any reverse repurchase agreements held by the ADI.

AS AT 31 DECEMBER 2017

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APS 330

Table 4: Credit Risk (Continued)

Table 4A: Credit risk by gross credit exposure – average gross exposure over period 1 July to 30 September 2017

	Receivables due from other banks (2) Trading securities Derivatives Investment securities Loans and advances Off-balance sheet exposures (credit equivalent amount)(3)	Total credit risk (4)
	$M $M $M $M $M	$M
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	- - - - 3,933 270	4,203
	- - - - 624 257	881
	562 - 144 961 98 362	2,127
	- - - - 960 61	1,021
	- - - - 270 23	293
	- - - - 279 20	299
	- - - - 2,144 146	2,290
	- - - - 41,804 2,416	44,220
	- - - - 257 5	262
	- 1,553 - 2,250 - -	3,803
	- - - - 2,043 183	2,226
Total gross credit risk Securitisation exposures(1)	562 1,553 144 3,211 52,412 3,743	61,625
	- - 1,337 3,581 33	4,951
Total including Securitisation Impairment provision TOTAL	562 1,553 144 4,548 55,993 3,776	66,576
		(140)
		66,436

(1) The securitisation exposures of $3,581 million included under Loans and advances qualify for regulatory capital relief under APS 120 Securitisation and therefore do 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 Securitisation .

(2) Receivables due from other banks include collateral deposits provided to derivative counterparties.

(3) Represent the credit equivalent amount of the Bank’s off-balance sheet exposures calculated in accordance with APS 112 Capital Adequacy .

(4) Total credit risk excludes cash and cash equivalents, including any reverse repurchase agreements held by the ADI.

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APS 330

TABLE 4: Credit Risk (Continued)

Table 4B: Credit risk by portfolio – 31 December 2017

						Charges for
	Gross	Average		Past due	Specific	specific
	credit risk	gross	Impaired	not impaired	provisions	provisions &
	exposure	exposure	assets	> 90 days	(2)	write offs
	$M	$M	$M	$M	$M	$M
Claims secured against
eligible residential
mortgages(1)	50,296	50,187	40	355	5	4
Other retail	264	262	-	7	-	-
Financial services	1,967	2,035	-	1	-	-
Government and public
authorities	3,838	3,832	-	-	-	-
Corporate and other claims	11,521	11,416	96	48	32	7
Total	67,886	67,732	136	411	37	11

(1) $5,466 million, $5,590 million and $17 million has been included in gross credit risk exposure, average gross exposure and past due not impaired greater than 90 days respectively to include securitisation exposures.

(2) In accordance with APS 220, regulatory specific provisions represents $37 million specific provisions for accounting purposes plus $19 million ineligible collective provision.

Table 4B: Credit risk by portfolio – 30 September 2017

						Charges for
	Gross	Average		Past due	Specific	specific
	credit risk	gross	Impaired	not impaired	provisions	provisions &
	exposure	exposure	assets	> 90 days	(2)	write offs
	$M	$M	$M	$M	$M	$M
Claims secured against
eligible residential
mortgages(1)	50,074	49,226	33	387	5	2
Other retail	260	262	-	7	-	-
Financial services	2,100	2,126	-	1	-	-
Government and public
authorities	3,826	3,803	-	-	-	-
Corporate and other claims	11,306	11,213	130	48	38	2
Total	67,566	66,630	163	443	43	4

(1) $5,713 million, $5,006 million and $18 million has been included in gross credit risk exposure, average gross exposure and past due not impaired greater than 90 days respectively to include securitisation exposures.

(2) In accordance with APS 220, regulatory specific provisions represents $43 million specific provisions for accounting purposes plus $25 million ineligible collective provision.

AS AT 31 DECEMBER 2017

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Table 4C: General reserves for credit losses

	Dec-17	Sep-17
	$M	$M
Collective provision for impairment	94	97
Ineligible collective provisions on past due not impaired	(19)	(25)
Eligible collective provisions	75	72
Equity reserve for credit losses	84	81
General reserve for credit losses	159	153

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APS 330

Table 5: Securitisation Exposures

Table 5A: Summary of securitisation activity for the period

Exposures securitised Recognised gain or (loss) on sale	Exposures securitised Recognised gain or (loss) on sale	Exposures securitised Recognised gain or (loss) on sale	Exposures securitised Recognised gain or (loss) on sale	Exposures securitised Recognised gain or (loss) on sale
	Dec-17	Sep-17	Dec-17	Sep-17
$M $M $M **$M **
Residential mortgages - 1,500 - -
Total exposures securitised during the period - 1,500 - -

Table 5B(i): Aggregate of on-balance sheet securitisation exposures by exposure type

	Dec-17	Sep-17
Exposure type $M **$M **
Debt securities 1,345 1,380
Total on-balance sheet securitisation exposures 1,345 1,380

Table 5B(ii): Aggregate of off-balance sheet securitisation exposures by exposure type

	Dec-17	Sep-17
Exposure type $M **$M **
Liquidity facilities 35 38
Derivative exposures 100 58
Total off-balance sheet securitisation exposures 135 96

AS AT 31 DECEMBER 2017

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Table 20: Liquidity Coverage Ratio Disclosure

Total unweighted value (average)	Total weighted value (average)		Total unweighted value (average)	Total weighted value (average)		Total unweighted value (average)	Total weighted value (average)
Dec-17 Dec-17			Sep-17 Sep-17			Jun-17 Jun-17
$M **$M **			$M **$M **			$M **$M **
Liquid assets, of which:
High-quality liquid assets (HQLA) 5,274			4,783			4,670
Alternative liquid assets (ALA) 3,498			3,493			3,496
Cash outflows
Retail deposits and deposits from small business customers, of which: 20,248 1,684			19,329 1,625			19,429 1,645
stable deposits 14,704 735			14,183 709			13,908 695
less stable deposits 5,544 949			5,146 916			5,521 950
Unsecured wholesale funding, of which: 4,349 3,043			4,590 3,272			4,553 2,988
operational deposits (all counterparties) and deposits in networks for cooperative banks - -			- -			- -
non-operational deposits (all counterparties) 2,812 1,506			2,834 1,516			3,015 1,450
unsecured debt 1,537 1,537			1,756 1,756			1,538 1,538
Secured wholesale funding - 218			- 5			8
Additional requirements, of which: 9,446 1,839			9,228 2,066			7,845 1,698
outflows related to derivatives exposures and other collateral requirements 1,406 1,406			1,616 1,616			1,270 1,270
outflows related to loss of funding on debt products - -			42 42			81 81
credit and liquidity facilities 8,040 433			7,570 408			6,494 347
Other contractual funding obligations 902 614			907 646			929 642
Other contingent funding obligations 8,881 826			8,934 705			8,417 663
Total cash outflows - 8,224			8,319			7,644
Cash inflows
Secured lending (e.g. reverse repos) 938 -			477 -			(436) -
Inflows from fully performing exposures 758 470			939 678			839 552
Other cash inflows 736 736			898 898			845 845
Total cash inflows 2,432 1,206			2,314 1,576			1,248 1,397
	Total adjusted			Total adjusted			Total adjusted
Total liquid assets 8,772			8,276			8,166
Total net cash outflows 7,018			6,743			6,247
Liquidity coverage ratio (%) 125			123			131

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AS AT 31 DECEMBER 2017

SUNCORP

APS 330

Appendix - Definitions

Capital adequacy ratio	Capital base divided by total assessed risk, as defined by APRA
Common Equity Tier 1	Common Equity Tier 1 capital (CET1) comprises accounting equity plus adjustments for
	intangible assets and regulatory reserves
Common Equity Tier 1 ratio	Common Equity Tier 1 divided by risk weighted assets, as defined by APRA
Credit value adjustment (CVA)	A capital charge that covers the risk of mark-to-market losses on the counterparty credit
	risk
Equity reserve for credit losses	The equity reserve for credit losses represents the difference between the collective
	provision for impairment and the estimate of credit losses across the credit cycle based
	on guidance provided by APRA
General reserve credit loss (GRCL)	The general reserve for credit losses is a reserve that covers credit losses prudently
	estimated but not certain to arise over the full life of all the individual facilities based on
	guidance provided by APRA
Liquidity coverage ratio	Liquid assets divided by the forecast net cash outflows during a 30-day simulated
	severe stressed liquidity scenario
Past due loans	Loans outstanding for more than 90 days
Risk weighted assets	Total of the carrying value of each asset class multiplied by their assigned risk
	weighting, as defined by APRA
Total assessed risk	Credit risk-weighted assets, off-balance sheet positions, market risk capital charge and
	operational risk charge, as defined by APRA

AS AT 31 DECEMBER 2017

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