SUNCORP GROUP LIMITED — Interim / Quarterly Report 2014

Feb 18, 2014

ABN 66 145 290 124 Suncorp Group Limited Suncorp Bank APS330 the quarter ended 31 December 2013

Release date: 19 February 2014

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APS330 f or the quarter ended 31 December 2013

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.

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

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

Disclaimer

This report contains general information which is current as at 19 February 2014. It is information given in summary form and does not purport to be complete.

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

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

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

Registered Office

Investor Relations

Level 18, 36 Wickham Terrace Mark Ley Brisbane Queensland 4000 Head of Investor Relations Telephone: (07) 3835 5769 Telephone: (07) 3135 3991 w ww.suncorpgroup.com.au mark.ley@suncorp.com.au

2

APS330 f or the quarter ended 31 December 2013

Table of contents

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

3

APS330 f or the quarter ended 31 December 2013

REGULATORY CAPITAL RECONCILIATION

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

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

	BALANCE SHEET PER PUBLISHED REVIEWED FINANCIAL STATEMENTS	ADJUSTMENTS	BALANCE SHEET UNDER REGULATORY SCOPE OF CONSOLIDATION	REFERENCE
	DEC-13 DEC-13 DEC-13
	$M $M $M
Assets	810 790	- 810 - 790
Cashand cashequivalents
Receivables duefromotherbanks
Trading securities	2,129 451 6,652	- 2,129 - 451 - 6,652
Derivatives
Investment securities
Investmentin regulatorynon-consolidated subsidiaries	- 49,435	24 24 (3,656) 45,779		(j)
Loans, advances and other receivables
of which: eligible collectiveprovision component of GRCL in tier 2 capital		(62) (o) 116 (f) 8 (g)
of which: loan and lease origination fees and commissions paid to mortgage . originators and brokers in CET1 regulatory adjustments				(f)
of which: costs associated with debt raisings in CET1 regulatory adjustments				(g)
Deferred taxassets	88	- 88
of which: arising from temporary differences included in CET1 regulatory . adjustments		71		(e)
Other assets	213	(46) 167
of which: loan and lease origination fees and commissions paid to mortgage . originators and brokers in CET1 regulatory adjustments		3		(h)
Goodwill and intangible assets	26	- 26		(d)
Total assets Liabilities	60,594	(3,678) 56,916
Deposits and short-termborrowings	(44,597) (13) (44,610) (494) 21 (473)
Derivatives
Payables due to otherbanks	(186) - (186)
Payables and other liabilities	(474) 17 (457)
Due toregulatorynon-consolidated subsidiaries	-	(72) (72)
Securitisation liabilities	(4,267) 3,721 (546)
of which: securitisation start-up costs in CET1 regulatory adjustments		10		(i)
Debtissues	(6,433) - (6,433)
Total liabilities excluding loan capital Loan capital	(56,451) 3,674 (52,777) - (840) - (840)
Subordinatednotes
of which:directly issued qualifying tier 2 instruments		(670) (170)		(m)
of which: directly issued instruments subject to phase out from tier 2				(n)
Preference shares	-	- -		(l)
Total loan capital	(840) - (840)
Total liabilities	(57,291) 3,674 (53,617)
Net assets	3,303	(4) 3,299
Equity	(2,492) - (2,492) (a) (450) - (450) (k)
Share capital
Capital notes
Reserves	283	1 284
of which: equity component of GRCL in tier 2 capital		(125) (4)		(p)
of which: AFS reserve				(c)
Retainedprofits	(644) 3 (641)
of which: included in CET1		(269) (b)
Total equity	(3,303) 4 (3,299)

4

APS330 f or the quarter ended 31 December 2013

REGULATORY CAPITAL RECONCILIATION (continued)

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

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

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

	TOTAL ASSETS TOTAL LIABILITIES
Suncorp Property Development Equity Fund #2 Pty Limited	DEC-13 DEC-13 $ $
	1 -

Principal activity:

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

Polaris Data Centre Unit Trust	DEC-13 DEC-13 $ $
	10 -

Principal activity:

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

Suncorp Property Development Equity Fund #2 Unit Trust Principal activity:	DEC-13 DEC-13 $M $M
	38 (11)

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

Securitisation special purpose vehicles1 Apollo Series 2005-2 Trust Apollo Series 2006-1E Trust Apollo Series 2007-1E Trust Apollo Series 2010-1 Trust Apollo Series 2011-1 Trust Apollo Series 2012-1 Trust Apollo Series 2013-1 Trust Principal activity:	DEC-13 DEC-13 $M $M
	79 (79) 315 (315) 453 (452) 421 (421) 754 (754) 753 (753) 990 (990)

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

Note

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

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

5

APS330 f or the quarter ended 31 December 2013

TABLE 1: COMMON DISCLOSURES – COMPOSITION OF CAPITAL

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

		DEC-13	SOURCE IN REGULATORY CAPITAL RECON- CILIATION
		$M
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25	Common Equity Tier 1capital: instruments and reserves	2,492 (a) 269 (b) 4 (c) - -
	Directly issued qualifying ordinary shares (and equivalent for mutually-owned entities) capital
	Retained earnings
	Accumulated othercomprehensiveincome (and other reserves)
	Directly issued capital subject to phase out from CET1 (only applicable to mutually- owned companies)
	Ordinary share capital issued by subsidiaries and held by third parties (amount allowed ingroup CET1)
	Common Equity Tier 1 capital before regulatory adjustments Common Equity Tier 1capital: regulatory adjustments	2,765 - 26 (d) - - - - - - - - - - - - - - - - -
	Prudential valuationadjustments
	Goodwill(net of related tax liability)
	Other intangibles otherthan mortgage servicingrights (net of related tax liability)
	Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)
	Cash-flow hedgereserve
	Shortfallofprovisions to expectedlosses
	Securitisationgainonsale (as set outinparagraph562of Basel II framework)
	Gains andlosses due to changesinowncreditriskon fair valuedliabilities
	Defined benefit superannuation fundnet assets
	Investments in own shares (if not already netted off paid-in capital on reported balance sheet)
	Reciprocalcross-holdingsincommonequity
	Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% oftheissued share capital(amount above10% threshold)
	Significant investments in the ordinary shares of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above10% threshold)
	Mortgage servicerights (amount above10% threshold)
	Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
	Amount exceeding the15% threshold
	of which:significant investments inthe ordinary shares of financial entities
	of which: mortgage servicing rights
	of which: deferred tax assets arising from temporary differences

6

APS330 f or the quarter ended 31 December 2013

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

		DEC-13	SOURCE IN REGULATORY CAPITAL RECON- CILIATION
		$M
26 26a 26b 26c 26d 26e 26f 26g 26h 26i 26j 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 41a 41b 41c 42 43 44 45	National specific regulatory adjustments (sum of rows 26a, 26b, 26c, 26d, 26e, 26f, 26g,26h,26iand26j)	232 - - - - 71 (e) 137 (f)+(g)+(h)+(i) - - - 24 (j) -
	of which:treasury shares
	of which: offset to dividends declared under a dividend reinvestment plan (DRP), to . the extent that the dividends are used to purchase new ordinary shares . issued by the ADI
	of which:deferred fee income
	of which:equity investments in financial institutions not reported in rows 18, 19 and 23
	of which:deferred tax assets not reported in rows 10, 21and 25
	of which:capitalised expenses
	of which: investments in commercial (non-financial) entities that are deducted under . APRA rules
	of which:covered bonds inexcess of asset cover inpools
	of which:undercapitalisation of a non-consolidated subsidiary
	of which:other national specific regulatory adjustments not reported in rows 26a - 26i
	Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1andTier 2to coverdeductions
	Total regulatory adjustments to Common Equity Tier 1	258
	Common Equity Tier 1 Capital(CET1)	2,507
	Additional Tier 1Capital: instruments	450 (k) 450 (k) - - (l) - -
	Directlyissued qualifyingAdditional Tier 1 instruments
	of which:classified as equity under applicable accounting standards
	of which:classified as liabilities under applicable accounting standards
	Directlyissued capital instruments subject to phase outfrom Additional Tier 1
	Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries andheld by third parties (amount allowedingroupAT1)
	of which: instruments issued by subsidiaries subject to phase out
	Additional Tier 1 Capital before regulatory adjustments Additional Tier 1Capital: regulatory adjustments	450 - - - - - - - - -
	Investmentsinown Additional Tier 1 instruments
	Reciprocalcross-holdingsin Additional Tier 1 instruments
	Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% oftheissued share capital(amount above10% threshold)
	Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation(net ofeligible short positions)
	Nationalspecificregulatory adjustments (sumof rows41a,41b and41c)
	of which: holdings of capital instruments in group members by other group members .on behalfof third parties
	of which: investments in the capital of financial institutions that are outside the scope of . regulatory consolidations not reported in rows 39 and 40
	of which:other national specific regulatory adjustments not reported in rows 41a & 41b
	Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
	Total regulatory adjustments to Additional Tier 1capital	-
	Additional Tier 1capital (AT1)	450
	Tier 1 Capital(T1=CET1+AT1)	2,957

7

APS330 f or the quarter ended 31 December 2013

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

		DEC-13	SOURCE IN REGULATORY CAPITAL RECON- CILIATION
		$M
46 47 48 49 50 51 52 53 54 55 56 56a 56b 56c 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75	Tier 2 Capital: instruments and provisions
	Directly issued qualifying Tier 2 instruments
	Directly issued capital instruments subject to phase out from Tier 2
	Tier 2 Capital before regulatory adjustments 1,027 Tier 2 Capital: regulatory adjustments Investments in own Tier 2 instruments - Reciprocal cross-holdings in Tier 2 instruments - Investments in the Tier 2 capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold) - Significant investments in the Tier 2 capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions - National specific regulatory adjustments (sum of rows 56a, 56b and 56c) - of which: holdings of capital instruments in group members by other group members . on behalf of third parties - of which: investments in the capital of financial institutions that are outside the scope . of regulatory consolidation not reported in rows 54 and 55 - of which: other national specific regulatory adjustments not reported in rows 56a & 56b -
	Total regulatory adjustments to Tier 2 capital -
	Tier 2 capital(T2) 1,027
	Total capital(TC=T1+T2) 3,984
	Total risk-weighted assets based on APRA standards 30,725
	Capital ratios and buffers Common Equity Tier 1 (as a percentage of risk-weighted assets) 8.16% Tier 1 (as a percentage of risk-weighted assets) 9.63% Total capital (as a percentage of risk-weighted assets) 12.97% Buffer requirement (minimum CET1 requirement of 4.5% plus capital conservation buffer of 2.5% plus any countercyclical buffer requirements expressed as a percentage of risk-weighted assets) 7.00% of which: capital conservation buffer requirement 2.50% of which: ADI-specific countercyclical buffer requirements - of which: G-SIB buffer requirement (not applicable) Common Equity Tier 1 available to meet buffers (as a percentage of risk-weighted assets) 8.16% National minima (if different from Basel III) National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) n/a National Tier 1 minimum ratio (if different from Basel III minimum) n/a National total capital minimum ratio (if different from Basel III minimum) n/a Amount below thresholds for deductions (not risk-weighted) Non-significant investments in the capital of other financial entities - Significant investments in the ordinary shares of financial entities - Mortgage servicing rights (net of related tax liability) - Deferred tax assets arisingfrom temporarydifferences(net of related tax liability) 71 (e)

8

APS330 f or the quarter ended 31 December 2013

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

		DEC-13	SOURCE IN REGULATORY CAPITAL RECON- CILIATION
		$M
76 77 78 79 80 81 82 83 84 85	Applicable caps on the inclusion of provisions in Tier 2	187 339 n/a n/a - - 689 - 170 -
	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach(priorto applicationofcap)		(o)+(p)
	Cap on inclusionofprovisionsin Tier 2understandardised approach
	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach(priorto applicationofcap)
	Cap for inclusion of provisions in Tier 2 under internal ratings-based approach Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2018 and 1Jan 2022)
	Current cap on CET1 instruments subject to phase out arrangements
	Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities
	Current cap on AT1 instruments subject to phase out arrangements
	Amount excluded from AT1 instruments due to cap (excess over cap after redemptions and maturities)
	Current cap on T2 instruments subject to phase out arrangements
	Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)

9

APS330 f or the quarter ended 31 December 2013

TABLE 2: MAIN FEATURES OF CAPITAL INSTRUMENTS

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

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

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

Note

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

10

APS330 f or the quarter ended 31 December 2013

TABLE 3: CAPITAL ADEQUACY

	CARRYING VALUE	AVG RISK WEIGHT	RISK-WEIGHTED ASSETS
	DEC-13 SEP-13 DEC-13 DEC-13 SEP-13 $M $M % $M $M
On-balance sheet credit risk-weighted assets Cash Items Claims on Australian and foreign Governments Claims on central banks, international banking agencies, regional development banks, ADIs and overseas banks Claims on securitisation exposures Claims secured against eligible residential mortgages Past due claims	619 361 - - 53 1,418 1,426 - - - 4,771 4,793 21 1,003 997 1,445 1,516 20 289 310 35,482 34,586 39 13,981 13,704 668 688 100 665 720
Other retail assets	630 626 83 520 517
Corporate Other assets and claims	8,621 8,357 100 8,601 8,338 351 337 99 348 305
Total Banking assets(1)	54,005 52,690 47 25,407 24,944

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

	NOTIONAL AMOUNT	CREDIT EQUIVALENT	AVG RISK WEIGHT	RISK-WEIGH	TED ASSETS
	DEC-13	DEC-13	DEC-13	DEC-13
Off-balance sheet positions Guarantees entered into in the normal course of business Commitments to provide loans and advances Foreign exchange contracts Interest rate contracts Securitisation exposures CVA capital charge	309 307 74 228 229 7,225 1,917 58 1,115 1,105 6,413 215 28 61 71 55,579 169 50 84 96 3,771 51 84 43 53 - - - 142 168
Total off-balance sheetpositions	73,297 2,659 63 1,673 1,722
Market risk capital charge Operational risk capital charge Total on-balance sheet credit risk-weighted assets				370 337 3,275 3,308 25,407 24,944
Total Assessed Risk				30,725 30,311
Risk-weighted capital ratios				% %
Common Equity Tier 1 Tier 1 Tier 2				8.16 8.06 9.63 9.54 3.34 3.39
Total risk-weighted capital ratio				12.97 12.93

11

APS330 f or the quarter ended 31 December 2013

TABLE 4: CREDIT RISK

TABLE 4A: CREDIT RISK BY GROSS CREDIT EXPOSURE – OUTSTANDING AS AT 31 DECEMBER 2013

	RECEIVABLES DUE FROM OTHER BANKS (4) TRADING SECURITIES INVESTMENT SECURITIES LOANS, ADVANCES AND OTHER RECEIVABLES (3) CREDIT COMMITMENTS (2) DERIVATIVE INSTRUMENTS (2)	TOTAL CREDIT RISK IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS TOTAL NOT PAST DUE OR IMPAIRED SPECIFIC PROVISIONS
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	$M $M $M $M $M $M	$M $M $M $M $M
	- - - 4,115 176 -	4,291 168 6 4,117 41
	- - - 643 142 -	785 70 21 694 20
	790 2,129 5,207 519 169 384	9,198 - - 9,198 -
	- - - 1,014 42 -	1,056 40 - 1,016 12
	- - - 402 19 -	421 27 2 392 8
	- - - 262 10 -	272 4 5 263 2
	- - - 1,988 76 -	2,064 21 2 2,041 8
	- - - 34,637 1,440 -	36,077 22 373 35,682 5
	- - - 452 11 -	463 - 9 454 -
	- - - 2 - -	2 - - 2 -
	- - - 1,955 139 -	2,094 64 27 2,003 17
Total gross credit risk Securitisation Exposures(1)	790 2,129 5,207 45,989 2,224 384	56,723 416 445 55,862 113
	- - 1,445 3,656 36 15	5,152 - - 5,152 -
Total including Securitisation Exposures Impairment provision TOTAL	790 2,129 6,652 49,645 2,260 399	61,875 416 445 61,014 113
		(210) (113) (35) (62)
		61,665 303 410 60,952

(1) The securitisation exposures of $3,656 million included under “Loans advances and other receivables” qualify for regulatory capital relief under APS 120 and therefore does not contribute to the Bank’s Total gross credit risk. The remaining securitisation exposures carry credit risk commensurate with their respective asset classes in accordance with APS 120.

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

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

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

12

APS330 f or the quarter ended 31 December 2013

TABLE 4: CREDIT RISK (continued)

TABLE 4A: CREDIT RISK BY GROSS CREDIT EXPOSURE – OUTSTANDING AS AT 30 SEPTEMBER 2013

	RECEIVABLES DUE FROM OTHER BANKS (4) TRADING SECURITIES INVESTMENT SECURITIES LOANS, ADVANCES AND OTHER RECEIVABLES (3) CREDIT COMMITMENTS (2) DERIVATIVE INSTRUMENTS (2)	TOTAL CREDIT RISK IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS TOTAL NOT PAST DUE OR IMPAIRED SPECIFIC PROVISIONS
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	$M $M $M $M $M $M	$M $M $M $M $M
	- - - 3,985 197 -	4,182 149 20 4,013 30
	- - - 701 106 -	807 105 11 691 33
	636 2,404 5,056 584 168 422	9,270 - - 9,270 -
	- - - 1,015 43 -	1,058 49 - 1,009 19
	- - - 397 24 -	421 13 17 391 4
	- - - 258 13 -	271 3 4 264 2
	- - - 1,971 58 -	2,029 39 12 1,978 29
	- - - 33,657 1,478 -	35,135 30 341 34,764 7
	- - - 453 11 -	464 - 8 456 -
	- - - 1 - -	1 - - 1 -
	- - - 1,914 137 -	2,051 79 29 1,943 22
Total gross credit risk Securitisation Exposures(1)	636 2,404 5,056 44,936 2,235 422	55,689 467 442 54,780 146
	- - 1,516 3,918 45 17	5,496 - - 5,496 -
Total including Securitisation Exposures Impairment provision TOTAL	636 2,404 6,572 48,854 2,280 439	61,185 467 442 60,276 146
		(239) (146) (31) (62)
		60,946 321 411 60,214

(1) The securitisation exposures of $3,918 million included under “Loans advances and other receivables” qualify for regulatory capital relief under APS 120 and therefore does not contribute to the Bank’s Total gross credit risk. The remaining securitisation exposures carry credit risk commensurate with their respective asset classes in accordance with APS 120.

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

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

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

13

APS330 f or the quarter ended 31 December 2013

TABLE 4: CREDIT RISK (continued)

TABLE 4A: CREDIT RISK BY GROSS CREDIT EXPOSURE – AVERAGE GROSS EXPOSURE OVER PERIOD 1 OCTOBER TO 31 DECEMBER 2013

	RECEIVABLES DUE FROM OTHER BANKS (4) TRADING SECURITIES INVESTMENT SECURITIES LOANS, ADVANCES AND OTHER RECEIVABLES (3) CREDIT COMMITMENTS (2) DERIVATIVE INSTRUMENTS (2)	TOTAL CREDIT RISK IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS TOTAL NOT PAST DUE OR IMPAIRED SPECIFIC PROVISIONS
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	$M $M $M $M $M $M	$M $M $M $M $M
	- - - 4,050 186 -	4,236 159 13 4,064 35
	- - - 672 124 -	796 88 16 692 26
	713 2,267 5,132 552 169 403	9,236 - - 9,236 -
	- - - 1,015 43 -	1,058 45 - 1,013 16
	- - - 400 21 -	421 20 10 391 6
	- - - 260 11 -	271 4 5 262 2
	- - - 1,980 67 -	2,047 30 7 2,010 19
	- - - 34,147 1,459 -	35,606 26 357 35,223 6
	- - - 453 11 -	464 - 9 455 -
	- - - 2 - -	2 - - 2 -
	- - - 1,935 138 -	2,073 72 28 1,973 20
Total gross credit risk Securitisation Exposures(1)	713 2,267 5,132 45,466 2,229 403	56,210 444 445 55,321 130
	- - 1,481 3,787 41 16	5,325 - - 5,325 -
Total including Securitisation Exposures Impairment provision TOTAL	713 2,267 6,613 49,253 2,270 419	61,535 444 445 60,646 130
		(225) (130) (33) (62)
		61,310 314 412 60,584

(1) The securitisation exposures of $3,787 million included under “Loans advances and other receivables” qualify for regulatory capital relief under APS 120 and therefore does not contribute to the Bank’s Total gross credit risk. The remaining securitisation exposures carry credit risk commensurate with their respective asset classes in accordance with APS 120.

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

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

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

14

APS330 f or the quarter ended 31 December 2013

TABLE 4: CREDIT RISK (continued)

TABLE 4A: CREDIT RISK BY GROSS CREDIT EXPOSURE – AVERAGE GROSS EXPOSURE OVER PERIOD 1 JULY TO 30 SEPTEMBER 2013

	RECEIVABLES DUE FROM OTHER BANKS (4) TRADING SECURITIES INVESTMENT SECURITIES LOANS, ADVANCES AND OTHER RECEIVABLES (3) CREDIT COMMITMENTS (2) DERIVATIVE INSTRUMENTS (2)	TOTAL CREDIT RISK IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS TOTAL NOT PAST DUE OR IMPAIRED SPECIFIC PROVISIONS
Agribusiness Construction & development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government/public authorities Other commercial & industrial	$M $M $M $M $M $M	$M $M $M $M $M
	- - - 3,952 190 -	4,142 139 22 3,981 31
	- - - 746 111 -	857 130 22 705 45
	1,048 2,933 5,022 572 150 461	10,186 - - 10,186 -
	- - - 1,016 45 -	1,061 44 12 1,005 16
	- - - 395 26 -	421 13 10 398 5
	- - - 259 11 -	270 3 3 264 2
	- - - 2,088 68 -	2,156 42 15 2,099 37
	- - - 33,514 1,351 -	34,865 30 316 34,519 7
	- - - 458 9 -	467 - 8 459 -
	- - - 1 - -	1 - - 1 -
	- - - 1,941 150 -	2,091 87 32 1,972 32
Total gross credit risk Securitisation Exposures(1)	1,048 2,933 5,022 44,942 2,111 461	56,517 488 440 55,589 175
	- - 1,584 3,819 43 17	5,463 - - 5,463 -
Total including Securitisation Exposures Impairment provision TOTAL	1,048 2,933 6,606 48,761 2,154 478	61,980 488 440 61,052 175
		(270) (172) (35) (63)
		61,710 316 405 60,989

(1) The securitisation exposures of $3,819 million included under “Loans advances and other receivables” qualify for regulatory capital relief under APS 120 and therefore does not contribute to the Bank’s Total gross credit risk. The remaining securitisation exposures carry credit risk commensurate with their respective asset classes in accordance with APS 120.

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

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

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

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APS330 f or the quarter ended 31 December 2013

TABLE 4: CREDIT RISK (continued) TABLE 4B: CREDIT RISK BY PORTFOLIO – 31 DECEMBER 2013

	GROSS CREDIT RISK EXPOSURE AVERAGE GROSS EXPOSURE IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS SPECIFIC PROVISIONS CHARGES FOR SPECIFIC PROVISIONS & WRITE OFFS LOSSES ON DISPOSAL OF LOANS AND ADVANCES
Claims secured against eligible residential mortgages Other retail Financial services Government and public authorities Corporate and other claims	$M $M $M $M $M $M $M
	36,077 35,606 22 373 5 2 -
	463 464 - 9 - 1 -
	9,198 9,236 - - - - -
	2 2 - - - - -
	10,983 10,902394 63 10820 8
Total	56,723 56,210 416 445 113 23 8

TABLE 4B: CREDIT RISK BY PORTFOLIO – 30 SEPTEMBER 2013

	GROSS CREDIT RISK EXPOSURE AVERAGE GROSS EXPOSURE IMPAIRED ASSETS PAST DUE NOT IMPAIRED > 90 DAYS SPECIFIC PROVISIONS CHARGES FOR SPECIFIC PROVISIONS & WRITE OFFS LOSSES ON DISPOSAL OF LOANS AND ADVANCES
Claims secured against eligible residential mortgages Other retail Financial services Government and public authorities Corporate and other claims	$M $M $M $M $M $M $M
	35,135 34,865 30 341 7 6 -
	464 467 - 8 - 2 -
	9,270 10,186 - - - - -
	1 1 - - - - -
	10,819 10,998 437 93 139 19 5
Total	55,689 56,517 467 442 146 27 5

TABLE 4C: GENERAL RESERV ES FOR CREDIT LOSSES

	DEC-13 SEP-13
Collective provision for impairment Ineligible Collective Provisions on Past Due not Impaired	$M $M
	97 93
	(35) (31)
Eligible Collective Provisions EquityReserve for credit losses	62 62
	125 125
General Reserve for Credit losses	187 187

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APS330 f or the quarter ended 31 December 2013

TABLE 5: SECURITISATION EXPOSURES

TABLE 5A: SUMMARY OF SECURITISATION ACTIVITY FOR THE PERIOD

	EXPOSURES SECURITISED	EXPOSURES SECURITISED	RECOGNISED GAIN OR (LOSS) ON SALE	RECOGNISED GAIN OR (LOSS) ON SALE
	DEC-13	SEP-13	DEC-13	SEP-13
	$M $M $M $M
Residential mortgages	- 452 - -
Total exposures securitised during theperiod	- 452 - -

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

	EXPOSURE	EXPOSURE
Exposure type	DEC-13 SEP-13 $M $M
Debt securities	1,445 1,516
Total on-balance sheet securitisation exposures	1,445 1,516

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

	PRINCIPAL OR NOTIONAL EXPOSURE PRINCIPAL OR NOTIONAL EXPOSURE
Exposure type	DEC-13 SEP-13 $M $M
Liquidity facilities Derivative exposures	72 89 3,699 3,960
Total off-balance sheet securitisation exposures	3,771 4,049

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