SUNCORP GROUP LIMITED — Interim / Quarterly Report 2013

Nov 11, 2012

ASX announcement

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12 November 2012

SUNCORP BANK APS330 SEPTEMBER 2012 QUARTER UPDATE

Key Points

• Core Bank total lending increased 2.1% over the quarter to $44.3 billion

• Core Bank non-performing loans reduced 4.5% to $510 million

• Core Bank impairment losses of $16 million for the quarter

• Non-core portfolio reduced $0.5 billion to $4.0 billion and now comprises only 8% of the total Suncorp Bank lending assets

• Non-core non-performing loans stable at under $1.9 billion

• Non-core impairment losses of $66 million for the quarter

Suncorp Bank today provided an update on assets, credit quality and capital as at 30 September 2012 as required under Australian Prudential Standard 330.

Despite subdued economic conditions, Suncorp Bank’s overall credit quality improved and the Core Bank continued to deliver above system growth.

Suncorp Bank CEO David Foster said Suncorp Bank continued to record above system lending growth due to both strong branch distribution in Queensland, Western Australia and New South Wales and improved servicing of the broker channel.

“Consumers are taking advantage of the lower interest rate environment to actively pay down debt at a faster rate than required and this trend is weighing on the overall banking system. Suncorp Bank continues to grow, offering consumers a simple and attractive product suite as they look for alternatives to the major banks,” he said.

Core Bank impairment losses of $16 million for the quarter were within the Bank’s medium term expectation. Impaired assets reduced to $235 million, or 0.53% of lending assets, and past due loans reduced to $275 million.

The overall reduction in non-performing loans of 4.5% to $510 million reflects the conservative nature of the Core Bank. The target market for housing loans primarily comprises owner-occupiers with an average home loan size of less than $300,000. The Core Bank has limited exposure to “low doc” loans.

The non-core portfolio run-off continued into the September quarter with the overall balance decreasing by $0.5 billion to just under $4 billion. A pipeline of opportunities to divest both performing and non-performing loans means that the Group is on track to ensure the total non-core portfolio is below $3 billion at 30 June 2013.

Impairment losses for the Non-core Bank of $66 million were primarily due to two new impaired exposures. The run-off of previously impaired exposures has ensured that impaired assets and non performing loans remain stable at $1.8 billion and $1.9 billion respectively.

Ends

For more information Media: Amy McDonald (07) 3835 5580 Analysts/investors: Mark Ley (07) 3135 3991

Suncorp Group Limited - ABN 66 145 290 124 - GPO Box 1453, Brisbane QLD 4001 www.suncorpgroup.com.au

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ABN 66 145 290 124 Suncorp Group Limited Suncorp Bank APS330 the quarter ended 30 September 2012

Release date: 12 November 2012

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APS330 for the quarter ended 30 September 2012

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 Capital Adequacy: Public Disclosure of Prudential Information.

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.

In addition to presenting consolidated information on the Suncorp Bank, this document is disaggregated into Core and Non-core Banks to allow separate analysis given their unique lending profiles. The Core and Non-core Bank tables represent an indicative view of relative performance and are presented separately in this document, with consolidated tables available in the appendices.

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.

This disclosure was prepared as at 30 September 2012 and should be read in conjunction with the definitions in Appendix 3 and other information concerning Suncorp Group filed with the Australian Securities Exchange.

Disclaimer

This report contains general information which is current as at 12 November 2012. 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 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 18, 36 Wickham Terrace Brisbane Queensland 4000 Telephone: (07) 3835 5769 www.suncorpgroup.com.au

Investor Relations

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

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APS330 for the quarter ended 30 September 2012

Table of contents

Basis of Preparation .................................................................................................................................................... 2 Core Bank..................................................................................................................................................................... 4 Loans, advances and other receivables .................................................................................................................... 4 Overview ................................................................................................................................................................... 4 Impairment losses on loans and advances ............................................................................................................... 5 Impaired and past due asset balances ..................................................................................................................... 6 Provision for impairment ........................................................................................................................................... 7 Non-core Bank ............................................................................................................................................................. 8 Loans, advances and other receivables .................................................................................................................... 8 Overview ................................................................................................................................................................... 8 Impairment losses on loans and advances ............................................................................................................. 10 Impaired and past due asset balances ................................................................................................................... 11 Provision for impairment ......................................................................................................................................... 12 Appendix 1 – Consolidated Bank ............................................................................................................................. 13 Appendix 2 – APS330 tables..................................................................................................................................... 16 Appendix 3 – Definitions ........................................................................................................................................... 24 Appendix 4 – Suncorp Bank updated Slide Information ........................................................................................ 25

3

APS330 for the quarter ended 30 September 2012

Core Bank

Core Bank

Loans, advances and other receivables

				SEP-12	SEP-12
	SEP-12	JUN-12	SEP-11	vs JUN-12	vs SEP-11
	$M	$M	$M	%	%
Housing loans	27,826	27,639	27,449	0.7	1.4
Securitisedhousingloans	6,976	6,316	3,674	10.4	89.9
Total housing loans	34,802	33,955	31,123	2.5	11.8
Consumer loans	464	482	527	(3.7)	(12.0)
Retail loans	35,266	34,437	31,650	2.4	11.4
Commercial (SME)	5,058	5,063	4,528	(0.1)	11.7
Agribusiness	3,944	3,856	3,522	2.3	12.0
Businessloans(1)	9,002	8,919	8,050	0.9	11.8
Total lending	44,268	43,356	39,700	2.1	11.5
Other receivables (2)	44	95	97	(53.7)	(54.6)
Gross banking loans, advances and other receivables	44,312	43,451	39,797	2.0	11.3
Provision for impairment	(128)	(129)	(121)	(0.8)	5.8
Loans, advances and other receivables	44,184	43,322	39,676	2.0	11.4
Credit risk weighted assets	22,731	22,606	21,378	0.6	6.3

(1) Business loan balances have been adjusted to reflect interest not brought to account.

(2) Other receivables are primarily collateral deposits provided to derivative counterparties.

Overview

The Core Bank delivered positive lending growth in the first quarter despite the continued challenges in the Australian economy. Home lending growth was 2.5%. Business lending grew 0.9%, driven by growth in Agribusiness as the Bank continues to rebuild its brand presence in regional Australia.

Demand for credit growth remains restrained and, as recent RBA data shows, consumers are continuing to save and pay down existing debt at a faster rate than contractually required.

The Core Bank has maintained its focus on offering a simple and attractive product proposition across its chosen markets. Lending growth in the quarter was delivered in the Bank’s home state of Queensland and through expanded operations in Western Australia and New South Wales. The Bank has also leveraged opportunities to grow in the Intermediated channel.

The Core Bank’s impaired assets and past due loans both reduced during the quarter and remain low as a percentage of gross lending. This reflects Suncorp’s conservative portfolio which comprises a high proportion of owner occupiers with an average home loan size of less than $300,000. New lending is focused on the sub-$500,000 segment. The Bank has limited exposure to “low doc” mortgages.

The Core Bank’s lending growth is underpinned by the Bank’s access to a range of stable retail and wholesale funding markets. Over 95% of the Core lending portfolio is funded by customer deposits and long term wholesale instruments. In delivering this outcome, the Bank has maintained momentum in growing the number of transaction accounts and increasing complete customer penetration.

4

APS330 for the quarter ended 30 September 2012

Core Bank

Personal Lending

Personal lending receivables including securitised assets increased to $35.3 billion, up 2.4% in the quarter.

The home lending portfolio has maintained above system growth for the last 12 months. The loan growth is attributable to an attractive product proposition, and access to both the Direct and Intermediary channels. Performance in the Core Bank’s indirect channel continued to see the benefit of the recent commission restructure which emphasises customer retention over the medium term.

There was a small reduction in the consumer portfolio, comprising personal loans and margin lending, as consumers remain cautious in accumulating discretionary debt given continuing economic uncertainty.

Business Lending

Commercial (SME)

Suncorp Bank’s commercial (SME) lending of $5.1 billion, remained flat over the quarter.

The current commercial market is challenging and characterised by strong competition for customers choosing to refinance their debt. Suncorp has been able to acquire customers through an improved service offering, a strong brand presence and an attractive pricing and product proposition.

The Bank continues to balance its appetite for growth against the need to maintain sound credit quality across the portfolio.

Agribusiness

The Agribusiness portfolio grew to $3.9 billion, up 2.3% over the quarter.

Agribusiness delivered strong growth following favourable seasonal conditions in the Bank’s target market. The pipeline remains steady on the back of ongoing efforts to replace settled leads with new quality opportunities, leveraging efforts to rebuild the Bank’s brand presence in selected markets.

Impairment losses on loans and advances

				SEP-12	SEP-12
	SEP-12	JUN-12	MAR-12	vs JUN-12	vs MAR-12
	$M	$M	$M	%	%
Collective provision for impairment	1	4	4	(75.0)	(75.0)
Specific provision for impairment	12	12	7	-	71.4
Actual netwrite-offs	3	3	2	-	50.0
	16	19	13	(15.8)	23.1
Impairment losses to credit risk weighted assets(annualised)	0.28%	0.34%	0.24%

Impairment losses of 28 basis points (annualised) of credit risk weighted assets remained within the Bank’s normal operating range and in line with the impairment loss for six months to 30 June 2012.

The $16 million charge was driven by specific provisions related to a small number of single name business related exposures. Quarter-on-quarter impairment losses have declined slightly. The core portfolio of housing, Agribusiness and SME continues to show no systemic issues and credit quality remains stable.

5

APS330 for the quarter ended 30 September 2012

Core Bank

Impaired and past due asset balances

Impaired and past due asset balances
				SEP-12	SEP-12
	SEP-12	JUN-12	MAR-12	vs JUN-12	vs MAR-12
	$M	$M	$M	%	%
Gross balances of individually impaired loans
with specific provisions set aside	183	192	185	(4.7)	(1.1)
without specific provisions set aside	52	49	35	6.1	48.6
Gross impaired assets	235	241	220	(2.5)	6.8
Specific provision for impairment	(44)	(46)	(49)	(4.3)	(10.2)
Net impaired assets	191	195	171	(2.1)	11.7
Size of gross impaired assets
Less than one million	23	21	22	9.5	4.5
Greater than one million but less than ten million	117	117	129	-	(9.3)
Greaterthanten million	95	103	69	(7.8)	37.7
	235	241	220	(2.5)	6.8
Past due loans not shown as impaired assets	275	293	334	(6.1)	(17.7)
Gross non-performing loans	510	534	554	(4.5)	(7.9)
Analysis of movements in gross impaired assets
Balance at the beginning of the period	241	220	141	9.5	70.9
Recognition of new impaired assets	33	44	87	(25.0)	(62.1)
Increases in previously recognised impaired assets	1	-	1	n/a	-
Impaired assets written off/sold during the period	(12)	(14)	(2)	(14.3)	500.0
Impaired assets which have been reclassed as performing assets
or repaid	(28)	(9)	(7)	211.1	300.0
Balance at the end of theperiod	235	241	220	(2.5)	6.8

Impaired assets

Core gross impaired assets recorded a modest improvement of $6m during the quarter. The home lending portfolio recorded a small decline offset by a small number of business related impairments.

Past due (not shown as impaired)

Core past due loans improved by 6% in the quarter with improvement evident in the home lending portfolio which is in line with seasonal expectations. Home lending past due performance in Queensland continues to trend favourably to the portfolio average.

The Core Bank’s past due loans remain low as a percentage of gross lending and have returned to preJanuary 2011 Brisbane flood levels. This low level of arrears reflects Suncorp’s conservative target market of owner occupiers with an average home loan size of less than $300,000. “Low doc” mortgages represents less than 6% of the home lending portfolio.

6

APS330 for the quarter ended 30 September 2012

Core Bank

Provision for impairment

Provision for impairment
				SEP-12	SEP-12
	SEP-12	JUN-12	MAR-12	vs JUN-12	vs MAR-12
	$M	$M	$M	%	%
Collective provision
Balance at the beginning of the period	83	79	75	5.1	10.7
Charge against contributionto profit	1	4	4	(75.0)	(75.0)
Balance at the end ofthe period	84	83	79	1.2	6.3
Specific provision
Balance at the beginning of the period	46	49	45	(6.1)	2.2
Charge against impairment losses	12	12	7	-	71.4
Write-off of impaired assets	(12)	(12)	(1)	-	1,100.0
Unwind of interest	(2)	(3)	(2)	(33.3)	-
Balance at the end ofthe period	44	46	49	(4.3)	(10.2)
Total provision for impairment -Core Banking activities	128	129	128	(0.8)	-
Equity reserve for credit loss
Balance at the beginning of the period	102	102	107	-	(4.7)
Transfer(to)/from retained earnings	2	-	(5)	n/a	(140.0)
Balance at the end ofthe period	104	102	102	2.0	2.0
Pre-taxequivalent coverage	149	146	146	2.1	2.1
Total provision for impairment and equity reserve for credit
loss coverage - Core Banking activities	277	275	274	0.7	1.1
	%	%	%
Provision for impairment expressed as a percentage of gross
impaired assets are as follows:
Collective provision	35.7	34.4	35.9
Specific provision	18.7	19.1	22.3
Total provision	54.5	53.5	58.2
Equity reserve for credit loss coverage	63.4	60.6	66.4
Totalprovision and equityreserve for credit loss coverage	117.9	114.1	124.5

The Core Bank continues to be well provisioned with total provision and Equity Reserve for Credit Losses (ERCL) coverage remaining above 100%. The small improvement in the coverage ratio was due to the reduction in the impaired balances.

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APS330 for the quarter ended 30 September 2012

Non-core Bank

Non-core Bank

Loans, advances and other receivables

				SEP-12	SEP-12
	SEP-12	JUN-12	SEP-11	vs JUN-12	vs SEP-11
	$M	$M	$M	%	%
Corporate & Lease Finance	991	1,132	1,695	(12.5)	(41.5)
Development finance	1,383	1,473	1,995	(6.1)	(30.7)
Propertyinvestment	1,598	1,868	2,644	(14.5)	(39.6)
Non-core portfolio (1)	3,972	4,473	6,334	(11.2)	(37.3)
Other receivables (2)	1,203	1,823	1,707	(34.0)	(29.5)
Gross banking loans, advances and other receivables	5,175	6,296	8,041	(17.8)	(35.6)
Provision for impairment	(377)	(408)	(420)	(7.6)	(10.2)
Loans, advances and other receivables	4,798	5,888	7,621	(18.5)	(37.0)
Credit risk weighted assets	4,732	5,396	7,750	(12.3)	(38.9)

(1) The September 2011 comparison has been adjusted to reflect interest not brought to account.

(2) Other receivables are primarily collateral deposits provided to derivative counterparties.

Overview

The Non-core portfolio reduced by $0.5 billion in the quarter, with an outstanding balance of $3.972 billion at 30 September 2012. There are now 31 loans with balances above $50 million, down from 34 at 30 June. The September quarter run off included $0.2 billion related to loan disposals.

The pace of run off continues to track ahead of original expectations, with the portfolio approximately 22% of its original size and now representing just 8% of the Bank's total assets. The Bank expects the Noncore portfolio to reduce to below $3 billion by June 2013.

The Bank's strategy continues to be to manage its Non-core exposures in a manner designed to maximise the amount of capital that can be returned to the Group and ultimately to shareholders. The significant capital and liquidity buffers provide the opportunity to assess the full range of run down options available for each individual exposure without needing to accelerate sales on unfavourable terms.

Gross non performing loans, which include both impaired and past due balances, remained stable at $1.9 billion. The disposal of a large single name exposure was offset by the impairment of two medium sized Property Investment exposures. While the market for distressed assets remains cautious the Bank is confident the balance of impaired assets will be below $1.5 billion by June 2013.

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APS330 for the quarter ended 30 September 2012

Non-core Bank

Business Portfolios

Development finance

The Development finance portfolio continues to decline, reducing by a further $0.1 billion since June 2012 to $1.4 billion.

Performing exposures have now matured through their construction risk phase. Conditions in the development finance property markets remain difficult with excess supply in some areas, particularly for higher-end product and vacant land. Sale opportunities are available for completed projects.

The portfolio includes $1.1 billion of impaired assets across a combination of asset classes, including vacant land and a small number of assets which carry continuing development risk. Approximately half of the impaired portfolio is secured against assets in Queensland.

Corporate and Leasing finance

The Corporate and Leasing portfolio continued to run off over the September quarter, reducing a further $0.1 billion to $0.9 billion. The portfolio includes a $0.1 billion impaired asset, with the Bank in advanced negotiations on the sale of this exposure.

Refinance markets are generally robust in this segment of the portfolio, although appetite remains exposure-specific. Many customers have favourable pricing terms and this has discouraged refinancing.

Property investment

Property investment includes assets such as shopping centres, commercial offices, and industrial warehouses and excludes construction projects.

The property investment portfolio has reduced by $0.3 billion to $1.6 billion. The reduction included the sale of two large exposures, demonstrating the Bank’s ability to execute on the full range of run-down options available. The portfolio includes $0.6 billion of impaired assets.

With vacancy rates remaining at relatively low levels, appetite has slowly improved for investors and financiers in this segment, however, loan to valuation ratios following property price depreciation does constrain refinance activity. Purchasers are showing interest in acquiring quality properties in proven locations.

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APS330 for the quarter ended 30 September 2012

Non-core Bank

Impairment losses on loans and advances

				SEP-12	SEP-12
	SEP-12	JUN-12	MAR-12	vs JUN-12	vs MAR-12
	$M	$M	$M	%	%
Collective provision for impairment	(11)	(10)	(19)	10.0	(42.1)
Specific provision for impairment	75	172	87	(56.4)	(13.8)
Actual netwrite-offs	2	6	6	(66.7)	(66.7)
	66	168	74	(60.7)	(10.8)
Impairment losses to credit risk weighted assets
(annualised)	5.53%	12.52%	4.78%

Impairment losses were lower in the September quarter, with the specific provision charge of $75 million comprising of:

• a $39 million specific provision charge relating to two sizable newly impaired exposures;

• a further $23 million of specific provision charges relating to a number of existing impaired exposures across the Development Finance and Property Investment portfolios;

• IFRS expenses due to work out date extensions of $13 million. Work out periods by their nature will continue to fluctuate given the individual circumstances of each exposure, as well as broader market conditions;

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APS330 for the quarter ended 30 September 2012

Non-core Bank

Impaired and past due asset balances

				SEP-12	SEP-12
	SEP-12	JUN-12	MAR-12	vs JUN-12	vs MAR-12
	$M	$M	$M	%	%
Gross balances of individually impaired loans
with specific provisions set aside	1,822	1,823	2,116	(0.1)	(13.9)
without specific provisions set aside	21	26	27	(19.2)	(22.2)
Gross impaired assets	1,843	1,849	2,143	(0.3)	(14.0)
Specific provision for impairment	(326)	(346)	(362)	(5.8)	(9.9)
Net impaired assets	1,517	1,503	1,781	0.9	(14.8)
Size of gross impaired assets
Less than one million	6	4	7	50.0	(14.3)
Greater than one million but less than ten million	149	145	197	2.8	(24.4)
Greaterthanten million	1,688	1,700	1,939	(0.7)	(12.9)
	1,843	1,849	2,143	(0.3)	(14.0)
Past due loans not shownas impaired assets	34	27	60	25.9	(43.3)
Gross non-performing loans	1,877	1,876	2,203	0.1	(14.8)
Analysis of movements in gross individually impaired assets
Balance at the beginning of the period	1,849	2,143	2,163	(13.7)	(14.5)
Recognition of new impaired assets	143	24	198	495.8	(27.8)
Increases in previously recognised impaired assets	19	8	9	137.5	111.1
Impaired assets written off/sold during the period	(63)	(193)	(28)	(67.4)	125.0
Impaired assets which have been reclassed as performing assets
or repaid	(105)	(133)	(199)	(21.1)	(47.2)
Balance at the end of theperiod	1,843	1,849	2,143	(0.3)	(14.0)

Gross non-performing loans

Gross non-performing loans, which includes both impaired and past due balances, remained stable at under $1.9 billion.

Impaired assets

The Non-core Bank’s impaired assets remained stable with the disposal of a large single name exposure offset by the impairment of two medium sized Property Investment exposures.

The market for distressed assets remains cautious and is some way from a full recovery. These conditions are expected to continue, adding uncertainty to the workout periods for impaired accounts.

Past due (not shown as impaired)

Past due loans increased marginally by $7 million in the first quarter to $34 million.

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APS330 for the quarter ended 30 September 2012

Non-core Bank

Provision for impairment

				SEP-12	SEP-12
	SEP-12	JUN-12	MAR-12	vs JUN-12	vs MAR-12
	$M	$M	$M	%	%
Collective provision
Balance at the beginning of the period	62	72	91	(13.9)	(31.9)
Charge against contributionto profit	(11)	(10)	(19)	10.0	(42.1)
Balance at the end ofthe period	51	62	72	(17.7)	(29.2)
Specific provision
Balance at the beginning of the period	346	362	342	(4.4)	1.2
Charge against impairment losses	75	172	87	(56.4)	(13.8)
Write-off of impaired assets	(63)	(157)	(35)	(59.9)	80.0
Unwind of interest	(32)	(31)	(32)	3.2	-
Balance at the end ofthe period	326	346	362	(5.8)	(9.9)
Total provision for impairment - Non-Core Banking activities	377	408	434	(7.6)	(13.1)
Equity reserve for credit loss
Balance at the beginning of the period	45	54	69	(16.7)	(34.8)
Transfer(to)/from retained earnings	(10)	(9)	(15)	11.1	(33.3)
Balance at the end ofthe period	35	45	54	(22.2)	(35.2)
Pre-tax equivalent coverage	50	64	77	(21.9)	(35.1)
Total provision for impairment and equity reserve for credit
loss coverage - Non-core Banking activities	427	472	511	(9.5)	(16.4)
	%	%	%
Provision for impairment expressed as a percentage of gross
impaired assets are as follows:
Collective provision	2.8	3.4	3.4
Specific provision	17.7	18.7	16.9
Total provision	20.5	22.1	20.3
Equity reserve for credit loss coverage	2.7	3.5	3.6
Totalprovision and equityreserve for credit loss coverage	23.2	25.5	23.8

Non-core Bank provision coverage decreased by 2% in the September quarter. The reduction in provision coverage is due to previously raised specific provisions being written off as part of the workout of existing impaired exposures.

Over the life of the portfolio, the Non-core Bank has partially written down exposures where recovery is extremely unlikely. The Non-core Bank’s coverage ratio would have been over 8 percentage points higher had these partial write-downs not reduced both impaired and provision balances.

The Non-core Bank will continue to subject underlying security valuations and work out periods to regular review and assessment in order to ensure the portfolio remains appropriately provisioned for an orderly run-off in challenging domestic and global economic conditions.

12

APS330 for the quarter ended 30 September 2012

Appendices

Appendix 1 – Consolidated Bank

Loans, advances and other receivables

	**CORE **	NON-CORE	TOTAL	TOTAL	TOTAL	SEP-12	SEP-12
	SEP-12	SEP-12	SEP-12	JUN-12	**SEP-11 **	vs JUN-12	vs SEP-11
	$M	$M	$M	$M	$M	%	%
Housing loans	27,826	-	27,826	27,639	27,449	0.7	1.4
Securitisedhousingloans	6,976	-	6,976	6,316	3,674	10.4	89.9
Total housing loans	34,802	-	34,802	33,955	31,123	2.5	11.8
Consumer loans	464	-	464	482	527	(3.7)	(12.0)
Retail loans	35,266	-	35,266	34,437	31,650	2.4	11.4
Commercial (SME)	5,058	-	5,058	5,063	4,528	(0.1)	11.7
Corporate & Lease Finance	-	991	991	1,132	1,695	(12.5)	(41.5)
Development finance	-	1,383	1,383	1,473	1,995	(6.1)	(30.7)
Property investment	-	1,598	1,598	1,868	2,644	(14.5)	(39.6)
Agribusiness	3,944	-	3,944	3,856	3,522	2.3	12.0
Businessloans (1)	9,002	3,972	12,974	13,392	14,384	(3.1)	(9.8)
Total lending	44,268	3,972	48,240	47,829	46,034	0.9	4.8
Other receivables (2)	44	1,203	1,247	1,918	1,804	(35.0)	(30.9)
Gross banking loans, advances and other
receivables	44,312	5,175	49,487	49,747	47,838	(0.5)	3.4
Provision for impairment	(128)	(377)	(505)	(537)	(541)	(6.0)	(6.7)
Loans, advances and other receivables	44,184	4,798	48,982	49,210	47,297	(0.5)	3.6
Credit risk weighted assets	22,731	4,732	27,463	28,002	29,128	(1.9)	(5.7)
Geographical breakdown - Total lending
Queensland	26,955	1,909	28,864	28,711	28,116	0.5	2.7
New South Wales	9,510	1,373	10,883	10,698	9,833	1.7	10.7
Victoria	3,798	513	4,311	4,377	4,437	(1.5)	(2.8)
Western Australia	2,744	162	2,906	2,807	2,510	3.5	15.8
South Australia and other	1,261	15	1,276	1,236	1,138	3.2	12.1
Outside ofQueenslandloans	17,313	2,063	19,376	19,118	17,918	1.3	8.1
Total lending	44,268	3,972	48,240	47,829	46,034	0.9	4.8

(1) Business loan balances have been adjusted to reflect interest not brought to account.

(2) Other receivables are primarily collateral deposits provided to derivative counterparties.

13

APS330 for the quarter ended 30 September 2012

Appendices

Impairment losses on loans and advances

CORE NON-CORE TOTAL CORE NON-CORE TOTAL SEP-12 SEP-12 SEP-12 JUN-12 JUN-12 JUN-12 $M $M $M $M $M $M	CORE NON-CORE TOTAL MAR-12 MAR-12 MAR-12 $M $M $M
Collective provision for impairment 1 (11) (10) 4 (10) (6) Specific provision for impairment 12 75 87 12 172 184 Actual netwrite-offs 3 2 5 3 6 9	4 (19) (15) 7 87 94 2 6 8
16 66 82 19 168 187	13 74 87
Impairment losses to risk weighted assets (annualised) 0.28% 5.53% 1.18% 0.34% 12.52% 2.69%	0.24% 4.78% 1.24%

Impaired asset balances

CORE NON-CORE TOTAL CORE NON-CORE TOTAL SEP-12 SEP-12 SEP-12 JUN-12 JUN-12 JUN-12 $M $M $M $M $M $M	CORE NON-CORE TOTAL CORE NON-CORE TOTAL SEP-12 SEP-12 SEP-12 JUN-12 JUN-12 JUN-12 $M $M $M $M $M $M	CORE NON-CORE TOTAL MAR-12 MAR-12 MAR-12
		$M $M $M
Gross balances of individually impaired loans with specific provisions set aside 183 1,822 2,005 192 1,823 2,015 without specific provisions set aside 52 21 73 49 26 75		185 2,116 2,301 35 27 62
Gross impaired assets 235 1,843 2,078 241 1,849 2,090 Specific provision for impairment (44) (326) (370) (46) (346) (392)		220 2,143 2,363 (49) (362) (411)
Net impaired assets 191 1,517 1,708 195 1,503 1,698		171 1,781 1,952
Size of gross individually impaired assets Less than one million 23 6 29 21 4 25 Greater than one million but less than ten million 117 149 266 117 145 262 Greaterthanten million 95 1,688 1,783 103 1,700 1,803		22 7 29 129 197 326 69 1,939 2,008
235 1,843 2,078 241 1,849 2,090		220 2,143 2,363
Past due loans not shownas impaired assets 275 34 309 293 27 320		334 60 394
Gross non-performing loans 510 1,877 2,387 534 1,876 2,410		554 2,203 2,757
Analysis of movements in gross individually impaired assets Balance at the beginning of the period 241 1,849 2,090 220 2,143 2,363 Recognition of new impaired assets 33 143 176 54 30 84 Increases in previously recognised impaired assets 1 19 20 1 11 12 Impaired assets written off/sold during the period (12) (63) (75) (16) (221) (237) Impaired assets which have been reclassed as performing assets or repaid (28) (105) (133) (18) (114) (132)		141 2,163 2,304 87 198 285 1 9 10 (2) (28) (30) (7) (199) (206)
Balance at the end of theperiod 235 1,843 2,078 241 1,849	2,090	220 2,143 2,363

14

APS330 for the quarter ended 30 September 2012

Appendices

Provision for impairment

	CORE	NON-CORE	TOTAL	CORE	NON-CORE	TOTAL	CORE	NON-CORE	TOTAL
	SEP-12	SEP-12	SEP-12	JUN-12	JUN-12	JUN-12	MAR-12	MAR-12	MAR-12
	$M	$M	$M	$M	$M	$M	$M	$M	$M
Collective provision
Balance at the beginning of the period	83	62	145	79	72	151	75	91	166
Charge against contributionto profit	1	(11)	(10)	4	(10)	(6)	4	(19)	(15)
Balance at the end ofthe period	84	51	135	83	62	145	79	72	151
Specific provision
Balance at the beginning of the period	46	346	392	49	362	411	45	342	387
Charge against impairment losses	12	75	87	12	172	184	7	87	94
Write-off of impaired assets	(12)	(63)	(75)	(12)	(157)	(169)	(1)	(35)	(36)
Unwind of interest	(2)	(32)	(34)	(3)	(31)	(34)	(2)	(32)	(34)
Balance at the end ofthe period	44	326	370	46	346	392	49	362	411
Total provision for impairment - Banking
activities	128	377	505	129	408	537	128	434	562
Equity reserve for credit loss
Balance at the beginning of the period	102	45	147	102	54	156	107	69	176
Transfertoretained earnings	2	(10)	(8)	-	(9)	(9)	(5)	(15)	(20)
Balance at the end ofthe period	104	35	139	102	45	147	102	54	156
Pre-taxequivalent coverage	149	50	199	146	64	210	146	77	223
Total provision for impairment and equity reserve
for credit loss - Banking activities	277	427	704	275	472	747	274	511	785
	%	%	%	%	%	%	%	%	%
Provision for impairment expressed as a
percentage of gross impaired assets are as
follows:
Collective provision	35.7	2.8	6.5	34.4	3.4	6.9	35.9	3.4	6.4
Specific provision	18.7	17.7	17.8	19.1	18.7	18.8	22.3	16.9	17.4
Total provision	54.5	20.5	24.3	53.5	22.1	25.7	58.2	20.3	23.8
Equity reserve for credit loss coverage	63.4	2.7	9.6	60.6	3.5	10.0	66.4	3.6	9.4
Total provision and equity reserve for credit loss
coverage	117.9	23.2	33.9	114.1	25.5	35.7	124.5	23.8	33.2

15

APS330 for the quarter ended 30 September 2012

Appendices

Appendix 2 – APS330 tables

Table 16

On balance sheet assets

			AVG Risk
	CARRY	VALUE	Weight	Risk Weighted Assets
	SEP-12	JUN-12	SEP-12	SEP-12	JUN-12
	$M	$M	%	$M	$M
On balance sheet assets
Cash Items	264	161	13	35	13
Claims on Australian and foreign Governments	1,221	1,285	0	0	0
agencies, regional development banks, ADIs and
overseas banks	5,201	5,954	20	1,041	1,191
Claims on securitisation exposures	1,404	1,391	20	281	278
Claims secured against eligible residential mortgages	32,270	32,284	40	12,903	12,900
Past due claims	2,198	2,262	133	2,928	3,041
Other retail assets	918	968	86	792	836
Corporate	9,275	9,606	100	9,259	9,584
Otherassets and claims	215	142	104	224	159
Total on balance sheet assets	52,966	54,053	52	27,463	28,002

Off balance sheet positions

	Notional	Credit	AVG Risk
	Amount	Equivalent	Weight	Risk Weighted Assets
	SEP-12	SEP-12	SEP-12	SEP-12	JUN-12
	$M	$M	%	$M	$M
Off balance sheet positions
Guarantees entered into the normal course of business	320	319	76	241	152
Commitments to provide loans and receivables	6,531	1,696	59	994	806
Capital commitments	0	0	0	0	0
Foreign exchange contracts	8,727	245	30	74	79
Interest rate contracts	55,910	253	78	198	185
Securitisationexposures	3,415	49	85	42	30
Total off balance sheetpositions	74,903	2,562	60	1,549	1,252
Market Risk Capital Charge				519	462
Operational Risk Capital Charge				3,334	3,334
Totalonbalance sheetrisk weighted assets				27,463	28,002
Total assessed risk				32,865	33,050
Risk weighted capital ratios				%	%
Tier 1				9.70	9.64
Tier 2				2.96	3.00
Total risk weighted capital ratios				12.66	12.64
				$M	$M
Core Equity Tier 1 capital				2,409	2,409
				%	%
Core Equity Tier 1 ratio				7.33	7.29

16

APS330 for the quarter ended 30 September 2012

Appendices

Table 17A

Credit risk by gross credit exposure – outstanding as at 30 September 2012

	RECEI VABLES DUE FROM OTHER BANKS TRADI NG S ECURI TI ES I NVES TM ENT S ECURI TI ES LOANS , ADVANCES AND OTHER RECEI VABLES CREDI T COM M I TM ENTS DERI VATI VE I NS TRUM ENTS $M $M $M $M $M $M	TOTAL CREDI T RI S K I M P AI RED AS S ETS P AS T DUE NOT I M P AI RED > 9 0 DAYS TOTAL NOT P AS T DUE OR I M P AI RED S P ECI FI C P ROVI S I ONS $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 Total gross credit risk Securitisation Exposures(1) Total including Securitisation Exposures Impairment provision TOTAL	- - - 3,656 160 - - - - 2,295 86 - 174 4,690 4,280 1,821 169 498 - - - 1,126 43 - - - - 415 36 - - - - 273 9 - - - - 2,900 80 - - - - 31,580 1,306 - - - - 384 13 - - - - 1 - - - - - 1,935 113 -	3,816 182 33 3,601 26 2,381 1,115 32 1,234 240 11,632 - - 11,632 - 1,169 116 3 1,050 5 451 13 1 437 - 282 4 1 277 1 2,980 483 10 2,487 77 32,886 27 204 32,655 5 397 - 3 394 - 1 - - 1 - 2,048 138 22 1,888 16
	174 4,690 4,280 46,386 2,015 498 - - 1,404 3,329 35 14	58,043 2,078 309 55,656 370 4,782 - - 4,782 -
	174 4,690 5,684 49,715 2,050 512	62,825 2,078 309 60,438 370
		(505) (370) (36) (99) -
		62,320 1,708 273 60,339 370

(1) Securitisation exposures included in Loans, advances and other receivables qualify for regulatory capital relief and therefore does not contribute to the Bank's Total credit risk.

(2) Total loans, advances and other receivables includes receivables due from related parties of $228 million.

17

APS330 for the quarter ended 30 September 2012

Appendices

Table 17A

Credit risk by gross credit exposure – outstanding as at 30 June 2012

	RECEI VABLES DUE FROM OTHER BANKS TRADI NG S ECURI TI ES I NVES TM ENT S ECURI TI ES LOANS , ADVANCES AND OTHER RECEI VABLES CREDI T COM M I TM ENTS DERI VATI VE I NS TRUM ENTS $M $M $M $M $M $M	TOTAL CREDI T RI S K I M P AI RED AS S ETS P AS T DUE NOT I M P AI RED > 9 0 DAYS TOTAL NOT P AS T DUE OR I M P AI RED S P ECI FI C P ROVI S I ONS $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 Total gross credit risk Securitisation Exposures(1) Total including Securitisation Exposures Impairment provision TOTAL	- - - 3,644 124 - - - - 2,345 77 - 154 4,787 4,903 2,491 11 500 - - - 1,093 35 - - - - 453 25 - - - - 286 10 - - - - 3,129 62 - - - - 31,544 1,053 - - - - 393 7 - - - - 1 - - - - - 2,084 90 -	3,768 202 24 3,542 36 2,422 1,264 26 1,132 286 12,846 - - 12,846 - 1,128 117 4 1,007 4 478 14 - 464 - 296 4 4 288 1 3,191 369 6 2,816 53 32,597 26 233 32,338 6 400 - 4 396 - 1 - - 1 - 2,174 94 19 2,061 6
	154 4,787 4,903 47,463 1,494 500 - - 1,391 2,485 24 12	59,301 2,090 320 56,891 392 3,912 - - 3,912 -
	154 4,787 6,294 49,948 1,518 512	63,213 2,090 320 60,803 392 (537) (392) (39) (106) -
		62,676 1,698 281 60,697 392

(1) Securitisation exposures included in Loans, advances and other receivables qualify for regulatory capital relief and therefore does not contribute to the Bank's Total credit risk.

(2) Total loans, advances and other receivables includes receivables due from related parties of $201 million.

18

APS330 for the quarter ended 30 September 2012

Appendices

Table 17A

Credit risk by gross credit exposure – average gross exposure over period 1 July to 30 September 2012

	RECEI VABLES DUE FROM OTHER BANKS TRADI NG S ECURI TI ES I NVES TM ENT S ECURI TI ES LOANS , ADVANCES AND OTHER RECEI VABLES CREDI T COM M I TM ENTS DERI VATI VE I NS TRUM ENTS $M $M $M $M $M $M	TOTAL CREDI T RI S K I M P AI RED AS S ETS P AS T DUE NOT I M P AI RED > 9 0 DAYS TOTAL NOT P AS T DUE OR I M P AI RED S P ECI FI C P ROVI S I ONS $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 Total gross credit risk Securitisation Exposures(1) Total including Securitisation Exposures Impairment provision TOTAL	- - - 3,650 142 - - - - 2,320 82 - 164 4,738 4,592 2,156 90 499 - - - 1,110 39 - - - - 434 31 - - - - 280 10 - - - - 3,015 71 - - - - 31,562 1,180 - - - - 389 10 - - - - 1 - - - - - 2,010 102 -	3,792 192 29 3,571 31 2,402 1,190 29 1,183 263 12,239 - - 12,239 - 1,149 117 4 1,028 5 465 14 1 450 - 290 4 3 283 1 3,086 426 8 2,652 65 32,742 27 219 32,496 6 399 - 4 395 - 1 - - 1 - 2,112 116 21 1,975 11
	164 4,738 4,592 46,927 1,757 499 - - 1,398 2,907 29 13	58,677 2,086 318 56,273 382 4,347 - - 4,347 -
	164 4,738 5,990 49,834 1,786 512	63,024 2,086 318 60,620 382
		(522) (381) (38) (103) -
		62,502 1,705 280 60,517 382

(1) Securitisation exposures included in Loans, advances and other receivables qualify for regulatory capital relief and therefore does not contribute to the Bank's Total credit risk.

19

APS330 for the quarter ended 30 September 2012

Appendices

Table 17A

Credit risk by gross credit exposure – average gross exposure over period 1 April to 30 June 2012

	RECEI VABLES DUE FROM OTHER BANKS TRADI NG S ECURI TI ES I NVES TM ENT S ECURI TI ES LOANS , ADVANCES AND OTHER RECEI VABLES CREDI T COM M I TM ENTS DERI VATI VE I NS TRUM ENTS $M $M $M $M $M $M	TOTAL CREDI T RI S K I M P AI RED AS S ETS P AS T DUE NOT I M P AI RED > 9 0 DAYS TOTAL NOT P AS T DUE OR I M P AI RED S P ECI FI C P ROVI S I ONS $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 Total gross credit risk Securitisation Exposures(1) Total including Securitisation Exposures Impairment provision TOTAL	- - - 3,555 141 - - - - 2,528 89 - 120 4,669 4,913 2,510 11 508 - - - 1,091 44 - - - - 470 29 - - - - 299 12 - - - - 3,231 81 - - - - 30,970 1,124 - - - - 398 8 - - - - 2 - - - - - 2,050 96 -	3,696 196 25 3,475 38 2,617 1,362 26 1,229 294 12,731 - - 12,731 - 1,135 105 4 1,026 3 499 11 3 485 3 311 4 3 304 1 3,312 427 24 2,861 53 32,094 30 249 31,815 7 406 - 4 402 - 2 - - 2 - 2,146 94 22 2,030 5
	120 4,669 4,913 47,104 1,635 508 - - 1,464 2,557 24 11	58,949 2,229 360 56,360 404 4,056 - - 4,056 -
	120 4,669 6,377 49,661 1,659 519	63,005 2,229 360 60,416 404 (550) (402) (36) (112) -
		62,455 1,827 324 60,304 404

(1) Securitisation exposures included in Loans, advances and other receivables qualify for regulatory capital relief and therefore does not contribute to the Bank's Total credit risk.

20

APS330 for the quarter ended 30 September 2012

Appendices

Table 17B

Credit risk by portfolio – 30 September 2012

	GROSS CREDIT RISK EXPOSURE AVERAGE GROSS EXPOSURE IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS 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 Total	32,886 32,742 27 204 5 1 397 399 - 3 - 2 11,632 12,239 - - - - 1 1 - - - - 13,127 13,2962,051 102365 89
	58,043 58,677 2,078 309 370 92

Credit risk by portfolio – 30 June 2012

	GROSS CREDIT RISK EXPOSURE AVERAGE GROSS EXPOSURE IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS 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 Total	32,597 32,094 26 233 6 3 400 406 - 4 - 2 12,846 12,731 - - - - 1 2 - - - - 13,457 13,7162,06483 386189
	59,30158,9492,090 320 392 194

21

APS330 for the quarter ended 30 September 2012

Appendices

Table 17C

General reserves for credit losses

	SEP-12 JUN-12 $M $M
General Reserve for Credit losses Collective provision for impairment Ineligible Collective Provisions on Past Due not Impaired Eligible Collective Provisions FITB relating to eligible collective provision Equity Reserve for credit losses	135 145 (36) (39)
	99 106
	(30) (32) 139147
	208 221

22

APS330 for the quarter ended 30 September 2012

Appendices

Table 18A: Summary of securitisation activity for the period

SEP-12 JUN-12 $m $m Exposures securitised	SEP-12 JUN-12 $m $m Recognised gain (or loss) on sale
Residential mortgages 999 -	- -
Total exposures securitised during the period 999 -	- -

Table 18B(i): Aggregate of on-balance sheet securitisation exposures by exposure type

	Exposure	Exposure
	SEP-12	JUN-12
Exposure type	$m	$m
Debt securities	1,404	1,391
Total on-balance sheet securitisation exposures	1,404	1,391

Table 18B(ii): Aggregate of off-balance sheet securitisation exposures by exposure type

	Notional	Notional
	Exposure	Exposure
	SEP-12	JUN-12
Exposure type	$m	$m
Liquidity facilities	70	58
Derivative exposures	3,345	2,494
Total off-balance sheet securitisation exposures	3,415	2,552

23

APS330 for the quarter ended 30 September 2012

Appendices

Appendix 3 – Definitions

Capital adequacy ratio	Capital base divided by total assessed risk, as defined by APRA
Core equity tier 1	Core equity tier 1 includes ordinary shareholder equity and retained
	profits less tier 1 and tier 2 regulatory deductions
Core equity tier 1 ratio	Core equity tier 1 divided by total assessed risk
Deposit to loan ratio	Total retail deposits divided by total loans and advances, excluding
	other receivables
Equity reserve for credit	The equity reserve for credit losses represents the difference between
losses	the collective provisions for impairment and the estimate of credit
	losses across the credit cycle based on guidance provided by APRA
Gross non-performing	Gross impaired assets plus past due loans
loans
Impairment losses to gross	Impairment losses on loans and advances divided by gross banking
loans and advances	loans, advances and other receivables
Impairment losses to risk	Impairment losses on loans and advances divided by risk weighted
weighted assets	assets
Past due	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	Risk weighted assets, off balance sheet positions and market risk
	capital charge and operational risk charge, as defined by APRA

24

APS330 for the quarter ended 30 September 2012

Appendices

Appendix 4 – Suncorp Bank updated slide information

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25

APS330 for the quarter ended 30 September 2012

Appendices

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26

APS330 for the quarter ended 30 September 2012

Appendices

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27

APS330 for the quarter ended 30 September 2012

Appendices

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28