SUNCORP GROUP LIMITED — Interim / Quarterly Report 2012

May 14, 2012

15 May 2012

ASX announcement

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SUNCORP BANK APS330 & GENERAL INSURANCE UPDATE

Key Points

• Core Bank total lending increased 3% over the quarter to $42.0 billion

• Core Bank impairment losses of $13 million for the quarter

• Core Bank non-performing loans of $554 million have increased but remain low as a proportion of total lending

• Non-core portfolio reduced $0.4 billion to $5.3 billion

• Non-core impairment losses of $74 million for the quarter

• Non-core non-performing loans reduced by $0.2 billion for the quarter to $2.2 billion

• General Insurance natural hazard claims for 10 months to 30 April 2012 of $714 million, $253 million above allowance

• Improved underlying trends in General Insurance

Suncorp Bank today provided an update on assets, credit quality and capital as at 31 March 2012 as required under Australian Prudential Standard 330.

Momentum in home and business lending growth was maintained despite subdued economic conditions and lower system growth levels.

Suncorp Bank CEO David Foster said credit growth across the market continued to trend below the average of recent years reflecting subdued consumer confidence. Suncorp Bank recorded above system growth reflecting Queensland’s recovery from last year’s natural disasters. Growth was also driven by the expanded operations in Western Australia and New South Wales and improved servicing of the broker channel.

“Consumers are actively paying down debt at a faster rate than obliged. This trend is weighing on the overall banking system but Suncorp Bank continues to grow as consumers look for alternatives to the major banks,” he said.

“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 through the Bank’s expanding operations, as well as leveraging opportunities to grow across both the direct and intermediated channels.

Core Bank impairment losses of $13 million for the quarter were within the Bank’s medium term expectation. Impaired assets increased to $220 million, or 0.52% of lending assets, predominantly due to the impairment of two mid-sized business lending exposures.

“Past due loan balances remain well below the June 2011 peak, although a seasonal uptick was observed.”

While there was an uptick in arrears in the quarter, the Core Bank’s non performing loans remain low as a proportion of the total portfolio. This reflects Suncorp’s conservative target market which 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.

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

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ASX announcement

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The Core Bank’s deposit to lending ratio of 69.8% remains at the top end of the Bank’s 60% to 70% target range.

The non-core portfolio run-off continued into the March quarter with the overall balance decreasing by $0.4 billion to $5.3 billion.

Impairment losses for the Non-core Bank of $74 million were primarily due to the expectation of longer realisation on impaired assets and a single newly impaired asset. The impaired asset balance reduced slightly to $2.1 billion in the quarter and past due balances have reduced significantly to $60 million.

General Insurance Update

Suncorp’s General Insurance operations have been impacted by ongoing adverse natural hazard claims. For the 10 months to 30 April 2012, natural hazard claims costs of $714 million are $253 million above the long-run expectation of $461 million. The natural hazard events are outlined below:

Date Event Net costs $m	Date Event Net costs $m
Oct 2011 South-EastQueensland hail	14
Nov 2011 NSW/Vicflooding	16
Dec 2011 Christchurch earthquake	14
Dec 2011 Melbourne hail	250
Jan 2012 NSW/Qld storms	17
Feb 2012 Roma/SWQld/Northern NSW floods	76
Feb 2012 NSW storms/floods	17
Mar 2012 NSW/Vicfloods	41
Mar 2012 Qld storms/floods	37
Other natural hazard attritional claims	232
Total natural hazard claims to 30 April 2012	714
Less:allowancefor natural hazards	(461)
Natural hazard costs above allowance as at 30 April 2012	253

While natural hazard claims have been above allowances, the underlying performance of Suncorp’s General Insurance operations has improved ahead of expectations. Suncorp’s building block programs continue to deliver benefits and the positive premium growth seen in the first half has gained momentum, with a return to unit growth in motor and home portfolios.

A further update will be provided at the Group’s Investor Day on 29 May 2012.

Investment strategy update

Suncorp has completed a review of the investment strategy for the General Insurance business. To provide greater flexibility and diversification, the asset allocation within the Australian General insurance Shareholder Funds portfolio has been adjusted from 100% investment grade credit to 78% investment grade credit, 2% cash, 10% Australian equities and 10% international equities. Currency exposure has been hedged.

Ends

For more information Media: Jamin Smith (07) 3135 4321 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 31 March 2012 Release date: 15 May 2012

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APS330 for the quarter ended 31 March 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 31 March 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 15 May 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 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 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 31 March 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 ............................................................................................................... 6 Impaired and past due asset balances...................................................................................................................... 6 Provision for impairment ........................................................................................................................................... 8 Non-core Bank ............................................................................................................................................................. 9 Loans, advances and other receivables .................................................................................................................... 9 Overview ................................................................................................................................................................... 9 Impairment losses on loans and advances ............................................................................................................. 11 Impaired and past due asset balances.................................................................................................................... 12 Provision for impairment ......................................................................................................................................... 13 Appendix 1 – Consolidated Bank ............................................................................................................................. 14 Appendix 2 – APS330 tables ..................................................................................................................................... 17 Appendix 3 – Definitions ........................................................................................................................................... 25 Appendix 4 – Suncorp Bank updated Slide Information ........................................................................................ 26

3

APS330 for the quarter ended 31 March 2012

Core Bank

Core Bank

Loans, advances and other receivables

				MAR-12	MAR-12
	MAR-12	DEC-11	MAR-11	vs DEC-11	vs MAR-11
	$M	$M	$M	%	%
Housing loans	28,482	27,200	26,446	4.7	7.7
Securitised housingloans	4,421	4,659	4,199	(5.1)	5.3
Total housing loans	32,903	31,859	30,646	3.3	7.4
Consumer loans	505	510	565	(1.0)	(10.6)
Retail loans	33,408	32,369	31,211	3.2	7.0
Commercial (SME)	4,890	4,829	4,426	1.3	10.5
Agribusiness	3,680	3,576	3,431	2.9	7.3
Business loans(1)	8,570	8,405	7,857	2.0	9.1
Total lending	41,978	40,774	39,068	3.0	7.4
Other receivables(2)	89	120	153	(25.8)	(41.8)
Gross banking loans, advances and other receivables	42,067	40,894	39,221	2.9	7.3
Provision for impairment	(128)	(120)	(124)	6.7	3.2
Loans, advances and other receivables	41,939	40,774	39,097	2.9	7.3
Credit risk weighted assets	21,883	21,307	20,447	2.7	7.0

(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 continued to demonstrate strong momentum in the March quarter despite challenging market conditions. Home lending growth was 3.3%, while the business lending portfolio maintained a sound growth trajectory in the lead up to the Bank’s traditionally stronger final quarter.

System credit growth continues to trend below the average of recent years reflecting consumer caution and subdued small business confidence. Recent analysis from the Reserve Bank shows that consumers are actively paying down debt at a faster rate than obliged.

Despite these pressures, 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 the Bank’s expanded operations in Western Australia and New South Wales. The Bank has also leveraged opportunities to grow across both the Direct and Intermediated channels.

The Core Bank’s impaired assets and past due loans remain low as a percentage of gross lending, reflecting Suncorp’s conservative portfolio which comprises a high proportion of owner occupiers with an average home loan size of less than $300,000. The Bank has limited exposure to “low doc” mortgages. Impaired assets increased to $220 million in quarter, or 0.52% of lending assets, predominantly due to the impairment of two mid-sized business lending exposures.

The Core Bank’s deposit to lending ratio of 69.8% remains at the top end of the Bank’s 60% to 70% target range. Momentum has been maintained in growing the number of transactional accounts and increasing complete customer penetration. The Core Bank also delivered growth in its established Term Deposit franchise to support the strong levels of lending growth in the March quarter.

4

Financial results for the half year ended 31 December 2011

Core Bank

Personal Lending

Housing lending

Home lending, including securitised assets, totaled $32.9 billion, up 3.3% over the quarter.

The home lending portfolio has sustained above system growth for the last 6 months. The loan growth is attributable to an attractive product proposition, Queensland’s recovery from last year’s natural disasters, and robust performance in the expanded operations in Western Australia and New South Wales. Performance in the Core Bank’s indirect channel was bolstered in the quarter through the introduction of a new commission structure to improve conversion rates. The new structure emphasises customer retention over the medium term.

The Core Bank continued to grow its share of new business with 4% of new home lending being written by Suncorp in the March quarter. The current momentum is expected to continue into the final quarter of the financial year with the Bank maintaining a healthly pipeline of loans ready to settle.

Consumer lending

Consumer (personal and margin) lending balances of $505 million were down 1.0% over the quarter.

Consumers remain cautious in accumulating discretionary debt given the current economic uncertainty.

Business Lending

Commercial (SME)

Suncorp Bank’s commercial (SME) lending of $4.9 billion was up 1.3% over the quarter.

The Commercial portfolio continued to deliver growth broadly in-line with system in its chosen markets, with the Bank balancing its appetite for growth against the need to maintain sound credit quality across the portfolio. Growth in the quarter was supported by on-going efforts to broaden the Core Bank’s market reach and leverage investment in the distribution network, both in and outside of Queensland.

Agribusiness

The Agribusiness portfolio grew to $3.7 billion, up 2.9% over the quarter.

Agribusiness delivered strong growth with the pipeline of new business continuing to build in the lead up to the traditionally strong final quarter. The robust pipeline reflects continued investment in the Suncorp brand in the Agribusiness sector, including the recent sponsorship of the “Year of the Farmer”, as well as investment in the Bank’s expanding operations.

5

APS330 for the quarter ended 31 March 2012

Core Bank

Impairment losses on loans and advances

				MAR-12	MAR-12
	MAR-12	DEC-11	SEP-11	vs DEC-11	vs SEP-11
	$M	$M	$M	%	%
Collective provision for impairment	4	(2)	(4)	n/a	n/a
Specific provision for impairment	7	6	7	16.7	-
Actual net write-offs	2	(2)	4	n/a	n/a
	13	2	7	550.0	85.7
Impairment losses to credit risk weighted assets (annualised)	0.24%	0.04%	0.13%

In the March quarter, impairment losses of 24 basis points (annualised) of credit risk weighted assets was within the Core Bank’s medium term expectation.

The quarter-on-quarter increase in impairment losses relates largely to collective provision charges. This reflects the uptick in arrears and the outcomes of regular review of collective provision factors for smaller exposures.

Impaired and past due asset balances

Impaired and past due asset balances
				MAR-12	MAR-12
	MAR-12	DEC-11	SEP-11	vs DEC-11	vs SEP-11
	$M	$M	$M	%	%
Gross balances of individually impaired loans
with specific provisions set aside	185	124	132	49.2	40.2
without specificprovisions set aside	35	17	16	105.9	118.8
Gross impaired assets	220	141	148	56.0	48.6
Specificprovision for impairment	(49)	(45)	(44)	8.9	11.4
Net impaired assets	171	96	104	78.1	64.4
Size of gross impaired assets
Less than one million	22	21	23	4.8	(4.3)
Greater than one million but less than ten million	129	101	94	27.7	37.2
Greater than ten million	69	19	31	263.2	122.6
	220	141	148	56.0	48.6
Past due loans not shown as impaired assets	334	300	323	11.3	3.4
Gross non-performing loans	554	441	471	25.6	17.6
Analysis of movements in gross impaired assets
Balance at the beginning of the period	141	148	146	(4.7)	(3.4)
Recognition of new impaired assets	87	19	18	357.9	383.3
Increases in previously recognised impaired assets	1	-	1	n/a	-
Impaired assets written off/sold during the period	(2)	(3)	-	(33.3)	n/a
Impaired assets which have been reclassed as performing assets
or repaid	(7)	(23)	(17)	(69.6)	(58.8)
Balance at the end of theperiod	220	141	148	56.0	48.6

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Financial results for the half year ended 31 December 2011

Core Bank

Impaired assets

Core gross impaired assets increased by $79 million during the third quarter to $220 million. The increase predominantly relates to two mid-sized business lending exposures. The Housing portfolio contributed $12 million to the increase in impaired assets.

Core Bank impaired & past due balances ($m)

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269
250 299
230
167
182 161 231
165 175
174
126 114 65
62
63 76
130 75 48 58 65 66 87 93 69
145 153 142 135 150 197 179 175 146 148 141 220
108
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
Impaired assets > 90 days past due SME & Agribusiness > 90 days past due retail
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Past due (not shown as impaired)

Core past due loans increased 11% in the quarter to $334 million with no particular state specific concentration. The Queensland home lending portfolio is well seasoned and past due performance in Suncorp’s home state continues to trend below the national average. Past due balances have remained stable since February 2012 and remain below the June 2011 high point.

The Core Bank’s past due loans remain low as a percentage of gross lending, reflecting Suncorp’s conservative target market of owner occupiers with an average home loan size of less than $300,000. “Low doc” mortgages represent approximately 6% of the home lending portfolio.

Past due loans (90 days) to gross loans

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1.20%
0.96%
1.00%
0.81% 0.82%
0.80% 0.73% 0.72%
0.60% 0.54% 0.58% 0.59% 0.55% 0.53% 0.77% 0.83% 0.74%
0.39% 0.35% 0.64% 0.66%
0.40% 0.50% 0.50% 0.46% 0.47%
0.39%
0.20% 0.28% 0.25%
0.00%
Home lending (QLD) Total home lending
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
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APS330 for the quarter ended 31 March 2012

Core Bank

Provision for impairment

				MAR-12	MAR-12
	MAR-12	DEC-11	SEP-11	vs DEC-11	vs SEP-11
	$M	$M	$M	%	%
Collective provision
Balance at the beginning of the period	75	77	81	(2.6)	(7.4)
Charge against contribution toprofit	4	(2)	(4)	n/a	n/a
Balance at the end of theperiod	79	75	77	5.3	2.6
Specific provision
Balance at the beginning of the period	45	44	39	2.3	15.4
Charge against impairment losses	7	6	7	16.7	-
Write-off of impaired assets	(1)	(3)	-	(66.7)	n/a
Unwind of interest	(2)	(2)	(2)	-	-
Balance at the end of theperiod	49	45	44	8.9	11.4
Totalprovision for impairment - Core Banking activities	128	120	121	6.7	5.8
Equity reserve for credit loss
Balance at the beginning of the period	107	102	74	4.9	44.6
Transfer(to)/from retained earnings	(5)	5	28	n/a	n/a
Balance at the end of theperiod	102	107	102	(4.7)	-
Pre-tax equivalent coverage	146	153	146	(4.6)	-
Total provision for impairment and equity reserve for credit
loss coverage - Core Banking activities	274	273	267	0.4	2.6
	%	%	%
Provision for impairment expressed as a percentage of gross
impaired assets are as follows:
Collective provision	35.9	53.2	52.0
Specific provision	22.3	31.9	29.7
Total provision	58.2	85.1	81.8
Equity reserve for credit loss coverage	66.4	108.5	98.6
Totalprovision and equityreserve for credit loss coverage	124.5	193.6	180.4

The Core Bank continues to be well provisioned. Total provision and ERCL (Equity Reserve for Credit Losses) coverage remains over 100%. The two material new impaired assets are well secured against good quality assets and required only limited specific provisioning.

8

APS330 for the quarter ended 31 March 2012

Non-core Bank

Non-core Bank

Loans, advances and other receivables

				MAR-12	MAR-12
	MAR-12	DEC-11	MAR-11	vs DEC-11	vs MAR-11
	$M	$M	$M	%	%
Corporate	1,161	1,215	1,900	(4.4)	(38.9)
Development finance	1,715	1,848	2,698	(7.2)	(36.4)
Property investment	2,233	2,350	3,598	(5.0)	(37.9)
Lease finance	190	249	438	(23.7)	(56.6)
Non-coreportfolio(1)	5,299	5,662	8,634	(6.4)	(38.6)
Other receivables(2)	1,825	1,776	2,576	2.8	(29.2)
Gross banking loans, advances and other receivables	7,124	7,438	11,210	(4.2)	(36.4)
Provision for impairment	(434)	(433)	(479)	0.2	(9.4)
Loans, advances and other receivables	6,690	7,005	10,731	(4.5)	(37.7)
Credit risk weighted assets	6,228	6,660	10,231	(6.5)	(39.1)

(1) The March 2011 comparsion 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 run-off continued into the March quarter, with a reduction of $0.4 billion to $5.3 billion.

Gross non-performing loans, which includes both impaired and past due balances, reduced by $0.2 billion to $2.2 billion reflecting asset sales, repayments and two exposures returning to performing status.

The number of loans with an outstanding balance at $50 million or greater reduced from 44 to 42 over the quarter.

Non-core Bank run-off profile

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Lease Finance
20,000 Corporate
18,000 Development Finance
16,000 Property Investment
14,000 Initial expectations
12,000 Actual run-off
10,000
8,000
6,000
190
4,000 1,161
2,000 1,715
2,233
0
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APS330 for the quarter ended 31 March 2012

Non-core Bank

Business Portfolios

Development finance

The Development finance portfolio continues to decline, reducing a further $0.1 billion since December 2011 to $1.7 billion.

The 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 $1.4 billion of impaired assets across a combination of asset classes, including vacant land and a small number of assets which carry continuing development risk. Less than half of the impaired portfolio is secured against assets in Queensland.

Corporate lending

The Corporate lending portfolio continued to run off over the March quarter, albeit at a lower rate than the previous period. The portfolio of $1.2 billion includes $0.1 billion of impaired assets.

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.

Since December 2011, the property investment portfolio has reduced by $0.1 billion to $2.2 billion. 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. Loan to valuation ratios following property price depreciation does constrain refinance activity. However, purchasers are showing interest in acquiring quality properties in proven locations.

Lease finance

In line with the natural portfolio amortisation, the lease finance receivables balance reduced $0.1 billion

over the quarter.

The Bank is in advanced negotiations regarding the sale of a significant portion of the Lease finance portfolio.

10

APS330 for the quarter ended 31 March 2012

Non-core Bank

Impairment losses on loans and advances

				MAR-12	MAR-12
	MAR-12	DEC-11	SEP-11	vs DEC-11	vs SEP-11
	$M	$M	$M	%	%
Collective provision for impairment	(19)	(2)	(3)	850.0	533.3
Specific provision for impairment	87	72	43	20.8	102.3
Actual net write-offs	6	6	6	-	-
	74	76	46	(2.6)	60.9
Impairment losses to credit risk weighted assets
(annualised)	4.78%	4.54%	2.35%

Impairment losses were slightly lower in the March quarter. The charge of $74 million comprised:

• IFRS expenses due to work out date extensions of $27 million. Work out periods by their nature will continue to fluctuate given the individual circumstances of each exposure, as well as broader market conditions;

• specific provisions on newly impaired balances of $29 million, which predominantly related to a large single-name exposure that moved to impaired status in the quarter; and

• further provisioning on existing impaired exposures.

11

APS330 for the quarter ended 31 March 2012

Non-core Bank

Impaired and past due asset balances

				MAR-12	MAR-12
	MAR-12	DEC-11	SEP-11	vs DEC-11	vs SEP-11
	$M	$M	$M	%	%
Gross balances of individually impaired loans
with specific provisions set aside	2,116	2,138	2,155	(1.0)	(1.8)
without specificprovisions set aside	27	25	29	8.0	(6.9)
Gross impaired assets	2,143	2,163	2,184	(0.9)	(1.9)
Specificprovision for impairment	(362)	(342)	(327)	5.8	10.7
Net impaired assets	1,781	1,821	1,857	(2.2)	(4.1)
Size of gross impaired assets
Less than one million	7	10	7	(30.0)	-
Greater than one million but less than ten million	197	192	194	2.6	1.5
Greater than ten million	1,939	1,961	1,983	(1.1)	(2.2)
	2,143	2,163	2,184	(0.9)	(1.9)
Past due loans not shown as impaired assets	60	226	257	(73.5)	(76.7)
Gross non-performing loans	2,203	2,389	2,441	(7.8)	(9.8)
Analysis of movements in gross individually impaired assets
Balance at the beginning of the period	2,163	2,184	2,235	(1.0)	(3.2)
Recognition of new impaired assets	198	35	53	465.7	273.6
Increases in previously recognised impaired assets	9	7	12	28.6	(25.0)
Impaired assets written off/sold during the period	(28)	(19)	(27)	47.4	3.7
Impaired assets which have been reclassed as performing assets
or repaid	(199)	(44)	(89)	352.3	123.6
Balance at the end of theperiod	2,143	2,163	2,184	(0.9)	(1.9)

Gross non-performing loans

Gross non-performing loans, which includes both impaired and past due balances, reduced by $0.2 billion to $2.2 billion reflecting asset sales, repayments and two groups returning to performing status.

Impaired assets

Impaired asset balances trended down slightly to $2.1 billion in the March quarter, despite the impaired portfolio absorbing a large single-name exposure that was previously classified as past due. This increase was offset by two groups returning to performing status, as well as asset sales and other repayments that continue to trend at similar levels to prior periods.

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 decreased significantly in the March quarter to $60 million. This is mainly attributable to one group moving from past due to impaired status.

12

APS330 for the quarter ended 31 March 2012

Non-core Bank

Provision for impairment

				MAR-12	MAR-12
	MAR-12	DEC-11	SEP-11	vs DEC-11	vs SEP-11
	$M	$M	$M	%	%
Collective provision
Balance at the beginning of the period	91	93	96	(2.2)	(5.2)
Charge against contribution toprofit	(19)	(2)	(3)	850.0	533.3
Balance at the end of theperiod	72	91	93	(20.9)	(22.6)
Specific provision
Balance at the beginning of the period	342	327	348	4.6	(1.7)
Charge against impairment losses	87	72	43	20.8	102.3
Write-off of impaired assets	(35)	(20)	(27)	75.0	29.6
Unwind of interest	(32)	(37)	(37)	(13.5)	(13.5)
Balance at the end of theperiod	362	342	327	5.8	10.7
Totalprovision for impairment - Non-Core Banking activities	434	433	420	0.2	3.3
Equity reserve for credit loss
Balance at the beginning of the period	69	70	83	(1.4)	(16.9)
Transfer(to)/from retained earnings	(15)	(1)	(13)	1,400.0	15.4
Balance at the end of theperiod	54	69	70	(21.7)	(22.9)
Pre-tax equivalent coverage	77	98	100	(21.4)	(23.0)
Total provision for impairment and equity reserve for credit
loss coverage - Non-core Banking activities	511	531	520	(3.8)	(1.7)
	%	%	%
Provision for impairment expressed as a percentage of gross
impaired assets are as follows:
Collective provision	3.4	4.2	4.3
Specific provision	16.9	15.8	15.0
Total provision	20.3	20.0	19.2
Equity reserve for credit loss coverage	3.6	4.5	4.6
Totalprovision and equityreserve for credit loss coverage	23.8	24.5	23.8

The Non-core portfolio has been closed to new business for over three and a half years. Throughout this period, the Bank has subjected underlying security valuations and expected work-out periods to regular review and assessment in order to ensure the portfolio remains appropriately provisioned and capitalised.

The level of provisioning coverage reflects the lengthy seasoning in the portfolio and detailed assessment of the underlying security. Provision levels will continue to be reviewed and adjusted based on economic, market and exposure-specific conditions.

13

APS330 for the quarter ended 31 March 2012

Appendices

Appendix 1 – Consolidated Bank

Loans, advances and other receivables

	**CORE **	NON-CORE	TOTAL	TOTAL	TOTAL	MAR-12	MAR-12
	MAR-12	MAR-12	MAR-12	DEC-11	**MAR-11 **	vs DEC-11 vs MAR-11
	$M	$M	$M	$M	$M	%	%
Housing loans	28,482	-	28,482	27,200	26,446	4.7	7.7
Securitised housingloans	4,421	-	4,421	4,659	4,199	(5.1)	5.3
Total housing loans	32,903	-	32,903	31,859	30,646	3.3	7.4
Consumer loans	505	-	505	510	565	(1.0)	(10.6)
Retail loans	33,408	-	33,408	32,369	31,211	3.2	7.0
Commercial (SME)	4,890	-	4,890	4,829	4,426	1.3	10.5
Corporate	-	1,161	1,161	1,215	1,900	(4.4)	(38.9)
Development finance	-	1,715	1,715	1,848	2,698	(7.2)	(36.4)
Property investment	-	2,233	2,233	2,350	3,598	(5.0)	(37.9)
Lease finance	-	190	190	249	438	(23.7)	(56.6)
Agribusiness	3,680	-	3,680	3,576	3,431	2.9	7.3
Business loans(1)	8,570	5,299	13,869	14,067	16,491	(1.4)	(15.9)
Total lending	41,978	5,299	47,277	46,436	47,702	1.8	(0.9)
Other receivables(2)	89	1,825	1,914	1,896	2,729	0.9	(29.9)
Gross banking loans, advances and other
receivables	42,067	7,124	49,191	48,332	50,431	1.8	(2.5)
Provision for impairment	(128)	(434)	(562)	(553)	(603)	1.6	(6.8)
Loans, advances and other receivables	41,939	6,690	48,629	47,779	49,828	1.8	(2.4)
Credit risk weighted assets	21,883	6,228	28,111	27,967	30,678	0.5	(8.4)
Geographical breakdown - Total lending
Queensland	26,076	2,511	28,587	28,256	28,871	1.2	(1.0)
New South Wales	8,580	1,821	10,401	10,055	10,276	3.4	1.2
Victoria	3,696	676	4,372	4,370	4,887	0.0	(10.5)
Western Australia	2,465	225	2,690	2,580	2,483	4.3	8.3
South Australia and other	1,161	66	1,227	1,175	1,185	4.4	3.5
Outside of Queensland loans	15,902	2,788	18,690	18,180	18,831	2.8	(0.7)
Total lending	41,978	5,299	47,277	46,436	47,702	1.8	(0.9)

(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.

14

APS330 for the quarter ended 31 March 2012

Appendices

Impairment losses on loans and advances

CORE NON-CORE TOTAL CORE NON-CORE TOTAL MAR-12 MAR-12 MAR-12 DEC-11 DEC-11 DEC-11 $M $M $M $M $M $M	CORE NON-CORE TOTAL SEP-11 SEP-11 SEP-11 $M $M $M
Collective provision for impairment 4 (19) (15) (2) (2) (4) Specific provision for impairment 7 87 94 6 72 78 Actual net write-offs 2 6 8 (2) 6 4	(4) (3) (7) 7 43 50 4 6 10
13 74 87 2 76 78	7 46 53
Impairment losses to risk weighted assets (annualised) 0.24% 4.78% 1.24% 0.04% 4.54% 1.11%	0.13% 2.35% 0.72%

Impaired asset balances

CORE NON-CORE TOTAL CORE NON-CORE TOTAL MAR-12 MAR-12 MAR-12 DEC-11 DEC-11 DEC-11 $M $M $M $M $M $M	CORE NON-CORE TOTAL CORE NON-CORE TOTAL MAR-12 MAR-12 MAR-12 DEC-11 DEC-11 DEC-11 $M $M $M $M $M $M	CORE NON-CORE TOTAL SEP-11 SEP-11 SEP-11
		$M $M $M
Gross balances of individually impaired loans with specific provisions set aside 185 2,116 2,301 124 2,138 2,262 without specificprovisions set aside 35 27 62 17 25 42		132 2,155 2,287 16 29 45
Gross impaired assets 220 2,143 2,363 141 2,163 2,304 Specificprovision for impairment (49) (362) (411) (45) (342) (387)		148 2,184 2,332 (44) (327) (371)
Net impaired assets 171 1,781 1,952 96 1,821 1,917		104 1,857 1,961
Size of gross individually impaired assets Less than one million 22 7 29 21 10 31 Greater than one million but less than ten million 129 197 326 101 192 293 Greater than ten million 69 1,939 2,008 19 1,961 1,980		23 7 30 94 194 288 31 1,983 2,014
220 2,143 2,363 141 2,163 2,304		148 2,184 2,332
Past due loans not shown as impaired assets 334 60 394 300 226 526		323 257 580
Gross non-performing loans 554 2,203 2,757 441 2,389 2,830		471 2,441 2,912
Analysis of movements in gross individually impaired assets Balance at the beginning of the period 141 2,163 2,304 148 2,184 2,332 Recognition of new impaired assets 87 198 285 19 35 54 Increases in previously recognised impaired assets 1 9 10 - 7 7 Impaired assets written off/sold during the period (2) (28) (30) (3) (19) (22) Impaired assets which have been reclassed as performingassets or repaid (7) (199) (206) (23) (44) (67)		146 2,235 2,381 18 53 71 1 12 13 - (27) (27) (17) (89) (106)
Balance at the end of theperiod 220 2,143 2,363 141 2,163	2,304	148 2,184 2,332

15

APS330 for the quarter ended 31 March 2012

Appendices

Provision for impairment

	CORE	NON-CORE	TOTAL	CORE	NON-CORE	TOTAL	CORE	NON-CORE	TOTAL
	MAR-12	MAR-12	MAR-12	DEC-11	DEC-11	DEC-11	SEP-11	SEP-11	SEP-11
	$M	$M	$M	$M	$M	$M	$M	$M	$M
Collective provision
Balance at the beginning of the period	75	91	166	77	93	170	81	96	177
Charge against contribution toprofit	4	(19)	(15)	(2)	(2)	(4)	(4)	(3)	(7)
Balance at the end of theperiod	79	72	151	75	91	166	77	93	170
Specific provision
Balance at the beginning of the period	45	342	387	44	327	371	39	348	387
Charge against impairment losses	7	87	94	6	72	78	7	43	50
Write-off of impaired assets	(1)	(35)	(36)	(3)	(20)	(23)	-	(27)	(27)
Unwind of interest	(2)	(32)	(34)	(2)	(37)	(39)	(2)	(37)	(39)
Balance at the end of theperiod	49	362	411	45	342	387	44	327	371
Total provision for impairment - Banking
activities	128	434	562	120	433	553	121	420	541
Equity reserve for credit loss
Balance at the beginning of the period	107	69	176	102	70	172	74	83	157
Transfer to retained earnings	(5)	(15)	(20)	5	(1)	4	28	(13)	15
Balance at the end of theperiod	102	54	156	107	69	176	102	70	172
Pre-tax equivalent coverage	146	77	223	153	98	251	146	100	246
Total provision for impairment and equity reserve
for credit loss - Banking activities	274	511	785	273	531	804	267	520	787
	%	%	%	%	%	%	%	%	%
Provision for impairment expressed as a
percentage of gross impaired assets are as
follows:
Collective provision	35.9	3.4	6.4	53.2	4.2	7.2	52.0	4.3	7.3
Specific provision	22.3	16.9	17.4	31.9	15.8	16.8	29.7	15.0	15.9
Total provision	58.2	20.3	23.8	85.1	20.0	24.0	81.8	19.2	23.2
Equity reserve for credit loss coverage	66.4	3.6	9.4	108.5	4.5	10.9	98.6	4.6	10.5
Total provision and equity reserve for credit loss
coverage	124.5	23.8	33.2	193.6	24.5	34.9	180.4	23.8	33.7

16

APS330 for the quarter ended 31 March 2012

Appendices

Appendix 2 – APS330 tables

Table 16

On balance sheet risk weighted assets

			AVG Risk
	CARRY VALUE		Weight	Risk Weighted Assets
	MAR-12	DEC-11	Mar-12	Mar-12	Dec-11
	$M	$M	%	$M	$M
On Balance Sheet Risk weighted assets
Assets
Cash Items	182	289	9	17	15
Claims on Australian and foreign Governments	1,333	1,501	0	1	2
Claims on central banks, international banking
agencies, regional development banks, ADIs and	6,208	5,425	20	1,242	1,085
Claims on securitisation exposures	1,536	1,660	20	307	332
Claims secured against eligible residential mortgages	31,111	29,966	40	12,486	12,126
Past due claims	2,416	2,509	134	3,227	3,433
Other assets and claims	10,954	11,085	99	10,831	10,974
Total Banking Assets	53,740	52,435	52	28,111	27,967

Table 16 Off balance sheet risk weighted assets

	Notional	Credit	AVG Risk
	Amount	Equivalent	Weight	Risk Weighted Assets
	MAR-12	MAR-12	MAR-12	Mar-12	Dec-11
	$M	$M	%	$M	$M
Off Balance Sheet Posiitions
Guarantees entered into the normal course of business	157	151	100	151	156
Commitments to provide loans and receivables	6,580	1,620	62	1,005	944
Capital commitments	0	0	0	0	0
Foreign Exchange contracts	11,024	325	29	94	88
Interest rate contracts	48,568	190	75	143	151
Securitisation exposures	2,698	34	85	29	30
Total Off Balance Sheet	69,027	2,320	61	1,422	1,369
Market Risk Capital Charge				510	387
Operational Risk Capital Charge				3,059	3,059
Total on balance sheet risk weighted assets				28,111	27,967
Total Assessed Risk				33,102	32,782
Risk weighted capital ratios				%	%
Tier 1				9.87	9.87
Tier 2				3.14	3.22
Total risk weighted capital ratios				13.01	13.09

17

APS330 for the quarter ended 31 March 2012

Appendices

Table 17A

Credit risk by gross credit exposure – outstanding as at 31 March 2012

	RECEI VABLES DUE FROM OTHER BANKS TRADING S ECURITIES I NVES TM ENT S ECURITIES LOANS , ADVANCES AND OTHER RECEIVABLES CREDI T COM M I TM ENTS DERIVATI VE INS TRUM ENTS $M $M $M $M $M $M	TOTAL CREDIT 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 IM P AIRED S P ECIFIC P ROVIS I ONS $M $M $M $M $M
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Mortgage Personal Government/public authorities Other commercial & industrial Total gross credit risk Securitisation Exposures(1) Total including Securitisation Exposures Impairment provision TOTAL	- - - 3,465 158 - - - - 2,710 100 - 85 4,551 4,923 2,529 11 515 - - - 1,089 52 - - - - 487 32 - - - - 312 13 - - - - 3,333 100 - - - - 30,396 1,194 - - - - 402 9 - - - - 2 - - - - - 2,015 102 -	3,623 189 25 3,409 39 2,810 1,460 25 1,325 302 12,614 - - 12,614 - 1,141 92 4 1,045 1 519 8 6 505 6 325 4 1 320 - 3,433 484 41 2,908 53 31,590 33 264 31,293 7 411 - 4 407 - 2 - - 2 - 2,117 93 24 2,000 3
	85 4,551 4,923 46,740 1,771 515 - - 1,536 2,629 24 10	58,585 2,363 394 55,828 411 4,199 - - 4,199 -
	85 4,551 6,459 49,369 1,795 525	62,784 2,363 394 60,027 411
		(562) (411) (33) (118) -
		62,222 1,952 361 59,909 411

(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 intercompany receivables of $178m.

18

APS330 for the quarter ended 31 March 2012

Appendices

Table 17A

Credit risk by gross credit exposure – outstanding as at 31 December 2011

	RECEI VABLES DUE FROM OTHER BANKS TRADING S ECURITIES I NVES TM ENT S ECURITIES LOANS , ADVANCES AND OTHER RECEIVABLES CREDI T COM M I TM ENTS DERIVATI VE INS TRUM ENTS $M $M $M $M $M $M	TOTAL CREDIT 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 IM P AIRED S P ECIFIC P ROVIS I ONS $M $M $M $M $M
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Mortgage Personal Government/public authorities Other commercial & industrial Total gross credit risk Securitisation Exposures(1) Total including Securitisation Exposures Impairment provision TOTAL	- - - 3,404 152 - - - - 2,865 84 - 169 3,641 5,003 2,466 13 480 - - - 1,110 37 - - - - 490 26 - - - - 324 14 - - - - 3,390 94 - - - - 29,256 1,134 - - - - 407 6 - - - - 3 - - - - - 1,999 106 -	3,556 200 23 3,333 40 2,949 1,416 174 1,359 278 11,772 - - 11,772 - 1,147 57 6 1,084 1 516 8 7 501 6 338 4 1 333 1 3,484 511 55 2,918 53 30,390 24 228 30,138 5 413 - 4 409 - 3 - - 3 - 2,105 84 28 1,993 3
	169 3,641 5,003 45,714 1,666 480 - - 1,664 2,771 24 11	56,673 2,304 526 53,843 387 4,470 - - 4,470 -
	169 3,641 6,667 48,485 1,690 491	61,143 2,304 526 58,313 387 (553) (387) (59) (107) -
		60,590 1,917 467 58,206 387

(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 31 March 2012

Appendices

Table 17A

Credit risk by gross credit exposure – average gross exposure over period 1 January to 31 March 2012

	RECEI VABLES DUE FROM OTHER BANKS TRADING S ECURITIES I NVES TM ENT S ECURITIES LOANS , ADVANCES AND OTHER RECEIVABLES CREDI T COM M I TM ENTS DERIVATI VE INS TRUM ENTS $M $M $M $M $M $M	TOTAL CREDIT 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 IM P AIRED S P ECIFIC P ROVIS I ONS $M $M $M $M $M
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Personal Government/public authorities Other commercial & industrial Total gross credit risk Securitisation Exposures(1) Total including Securitisation Exposures Impairment provision TOTAL	- - - 3,435 155 - - - - 2,788 92 - 127 4,096 4,963 2,498 12 498 - - - 1,100 45 - - - - 489 29 - - - - 318 14 - - - - 3,362 97 - - - - 29,826 1,164 - - - - 405 8 - - - - 3 - - - - - 2,007 104 -	3,590 195 24 3,371 40 2,880 1,438 100 1,342 290 12,194 - - 12,194 - 1,145 75 5 1,065 1 518 8 7 503 6 332 4 1 327 1 3,459 498 48 2,913 53 30,990 29 246 30,715 6 413 - 4 409 - 3 - - 3 - 2,111 89 26 1,996 3
	127 4,096 4,963 46,231 1,720 498 - - 1,600 2,700 24 11	57,635 2,336 461 54,838 400 4,335 - - 4,335 -
	127 4,096 6,563 48,931 1,744 509	61,970 2,336 461 59,173 400
		(558) (399) (46) (113) -
		61,412 1,937 415 59,060 400

(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 31 March 2012

Appendices

Table 17A

Credit risk by gross credit exposure – average gross exposure over period 1 October to 31 December 2011

	RECEI VABLES DUE FROM OTHER BANKS TRADING S ECURITIES I NVES TM ENT S ECURITIES LOANS , ADVANCES AND OTHER RECEIVABLES CREDI T COM M I TM ENTS DERIVATI VE INS TRUM ENTS $M $M $M $M $M $M	TOTAL CREDIT 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 IM P AIRED S P ECIFIC P ROVIS I ONS $M $M $M $M $M
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Personal Government/public authorities Other commercial & industrial Total gross credit risk Securitisation Exposures(1) Total including Securitisation Exposures Impairment provision TOTAL	- - - 3,373 152 - - - - 2,914 97 - 215 4,083 5,263 2,459 12 561 - - - 1,129 38 - - - - 506 25 - - - - 333 13 - - - - 3,438 88 - - - - 29,434 993 - - - - 376 9 - - - - 3 - - - - - 2,078 117 -	3,525 202 23 3,300 43 3,011 1,424 197 1,390 262 12,593 - - 12,593 - 1,167 53 8 1,106 1 531 12 4 515 6 346 4 2 340 1 3,526 514 62 2,950 57 30,427 24 227 30,176 6 385 - 4 381 - 3 - - 3 - 2,195 87 27 2,081 5
	215 4,083 5,263 46,043 1,544 561 - - 1,696 2,217 26 9	57,709 2,320 554 54,835 381 3,948 - - 3,948 -
	215 4,083 6,959 48,260 1,570 570	61,657 2,320 554 58,783 381 (548) (379) (65) (104) -
		61,109 1,941 489 58,679 381

(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.

21

APS330 for the quarter ended 31 March 2012

Appendices

Table 17B

Credit risk by portfolio – 31 March 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	31,590 30,990 33 264 7 2 411 413 - 4 - 2 12,614 12,194 - - - - 2 3 - - - - 13,968 14,035 2,330 126 404 97
	58,585 57,635 2,363 394 411 101

Credit risk by portfolio – 31 December 2011

	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	30,390 30,427 24 228 5 1 413 385 - 4 - 3 11,772 12,593 - - - - 3 3 - - - - 14,095 14,301 2,280 294 382 78
	56,673 57,709 2,304 526 387 82

22

APS330 for the quarter ended 31 March 2012

Appendices

Table 17C General reserves for credit losses

	MAR-12 DEC-11 $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	151 166 (33) (59)
	118 107 (35) (32) 156 176
	239 251

23

APS330 for the quarter ended 31 March 2012

Appendices

Table 18A: Summary of securitisation activity for the period

31-Mar-2012 31-Dec-2011 $m $m Exposures securitised	31-Mar-2012 31-Dec-2011 $m $m Recognised gain (or loss) on sale
Residential mortgages - 1,249	- -
Total exposures securitised during theperiod - 1,249	- -

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

	Exposure	Exposure
	31-Mar-2012	31-Dec-2011
Exposure type	$m	$m
Debt securities	1,536	1,664
Total on-balance sheet securitisation exposures	1,536	1,664

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

	Notional	Notional
	Exposure	Exposure
	31-Mar-2012	31-Dec-2011
Exposure type	$m	$m
Liquidity facilities	58	58
Derivative exposures	2,640	2,784
Total off-balance sheet securitisation exposures	2,698	2,842

24

APS330 for the quarter ended 31 March 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

25

APS330 for the quarter ended 31 March 2012

Appendices

Appendix 4 – Suncorp Bank updated Slide Information

Core Bank

Returning to above system home lending growth

==> picture [391 x 218] intentionally omitted <==

----- Start of picture text -----

Mortgage growth vs. RBA system
Core lending assets ($42.0bn)
(12 month rolling) update
16%
14% RBA system Housing
12% SUN 9% [1%]
10%8% 12% Commercial (SME)
6%
4%
Agribusiness
2%
0% 78%
Consumer
• Overall growth of 3% in the March quarter.
• Agribusiness continued to perform with an increase of 2.9%
• Conditions more subdued for SME with a 1.3% increase
• Deposit to lending ratio maintained at 69.8%
3
Suncorp Group Limited
March 2012
----- End of picture text -----

Core Bank - credit quality

==> picture [391 x 231] intentionally omitted <==

----- Start of picture text -----

Core Non-performing loans ($Am)
269
16575 12648 11458 17465 17566 16762 16163 25076 29987 23093 23169 65
145 153 142 135 150 197 179 175 146 148 141 220
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
Impaired assets > 90 days past due SME & Agribusiness > 90 days past due retail
Past due loans (90 days) to gross loans
1.20%
0.96%
1.00%
0.81% 0.82%
0.80% 0.73% 0.72%
0.60% 0.54% 0.58% 0.59% 0.55% 0.53% 0.77% 0.83% 0.74%
0.39% 0.35% 0.64% 0.66%
0.40% 0.50% 0.50% 0.46% 0.47%
0.39%
0.20% 0.28% 0.25%
0.00%
Home lending (QLD) Total home lending 4
Suncorp Group Limited
March 2012
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
----- End of picture text -----

26

APS330 for the quarter ended 31 March 2012

Appendices

Suncorp Bank change in portfolio mix Non-core portfolio is now only 11% of total lending assets

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----- Start of picture text -----

• June 2009 ($54.4bn) • March 2012 ($47.3bn)
Non-core
11%
Agri
Non-core 8%
32%
Commercial
10%
Mortgage
52%
Consumer
1% Mortgage
Agri 70%
7%
Commercial
8% Consumer
1%
1
Suncorp Group Limited
March 2012
----- End of picture text -----

==> picture [393 x 272] intentionally omitted <==

----- Start of picture text -----

Non-core Bank
Continuing to run-off ahead of expectations....down to $5.3bn
20,00018,000 Run-off profile
16,000 Lease Finance
14,000 Corporate
12,000
Development Finance
10,000
Property Investment
8,000
6,000 190 Initial expectations
4,000 1,161 Actual run-off
2,000 1,715
0 2,233
Impairment losses ($Am)
2nd quarter of half 1st quarter of half
219
282 146
73 78
136 126 50 76
73 83 92 54 46 74
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12
Reporting periods prior to Core/Non-core reporting split 5
Suncorp Group Limited
March 2012
----- End of picture text -----**

27

APS330 for the quarter ended 31 March 2012

Appendices

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Non-core Portfolio Splits
Impaired assets
Property Investment & Corporate $3.4bn Property Investment & Corporate $782m
WA , $10m,
VIC, 1% NSW,
Impaired $782m Performing $2,668m $148m, 19% $182m, 23%
23% 77%
Other,
$7m, 1%
QLD,
$435m,
56%
Impaired assets
Development Finance $1.7bn Development Finance $1,361m
WA, $24m,
Performing VIC, 2%
Impaired $354m $118m, 9%
$1,361m 21%
79%
NSW,
$577m,
42%
QLD,
$642m,
47%
6
Suncorp Group Limited
March 2012
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