Disclosure Template for Main Features of Regulatory Capital Instruments | ||
---|---|---|
1 | Issuer | Heritage Bank Limited |
2 | Unique identifier (eg CUSIP, ISIN or Bloomberg identifier for private placement) | ASX - HBSHA |
3 | Governing law(s) of the instrument | Queensland |
Regulatory treatment | ||
4 | Transitional Basel III rules | Tier 2 |
5 | Post-transitional Basel III rules | Ineligible |
6 | Eligible at solo/group/group & solo | Solo |
7 | Instrument type (ordinary shares/preference shares/subordinated notes/other) | Subordinated Notes |
8 | Amount recognised in Regulatory Capital (Currency in mil, as of most recent reporting date) |
$45 million |
9 | Par value of instrument | $50 million ($100 per Heritage Note) |
10 | Accounting classification | Liability - fair value option |
11 | Original date of issuance | 26 October 2009 |
12 | Perpetual or dated | Dated |
13 | Original maturity date | 25 October 2019 |
14 | Issuer call subject to prior supervisory approval | Yes |
15 | Optional call date, contingent call dates and redemption amount | Prior to the Maturity Date, Heritage may, with the prior written approval of APRA, Redeem: - some or all Heritage Notes on the Step-Up Date (27 October 2014) or any subsequent Interest Payment Date; - any affected Heritage Notes on any Interest Payment Date if a Tax Event occurs; or - all Heritage Notes at any time if a Regulatory Event or Change of Control Event occurs Redemption amount will be face value plus accrued interest |
16 | Subsequent call dates, if applicable | Refer item 15 above |
Coupons/dividends | ||
17 | Fixed or floating dividend/coupon | Fixed to Floating |
18 | Coupon rate and any related index | 10% per Annum Fixed until 27 October 2014 following which the interest rate will change to Floating (90 day BBSW plus 4.435% x 1.5) |
19 | Existence of a dividend stopper | Not applicable |
20 | Fully discretionary, partially discretionary or mandatory | Mandatory |
21 | Existence of step up or other incentive to redeem | Yes |
22 | Noncumulative or cumulative | Cumulative |
23 | Convertible or non-convertible | Non-convertible |
24 | If convertible, conversion trigger(s) | Not applicable |
25 | If convertible, fully or partially | Not applicable |
26 | If convertible, conversion rate | Not applicable |
27 | If convertible, mandatory or optional conversion | Not applicable |
28 | If convertible, specify instrument type convertible into | Not applicable |
29 | If convertible, specify issuer of instrument it converts into | Not applicable |
30 | Write-down feature | No |
31 | If write-down, write-down trigger(s) | Not applicable |
32 | If write-down, full or partial | Not applicable |
33 | If write-down, permanent or temporary | Not applicable |
34 | If temporary write-down, description of write-up mechanism | Not applicable |
35 | Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) | In the event of a winding-up of Heritage, the claims of Holders against Heritage in respect of Heritage Notes will be subordinated in right of payments to the claims of all Senior Creditors (including Trade Creditors) |
36 | Non-compliant transitioned features | Yes |
37 | If yes, specify non-compliant features | If Heritage Notes are not redeemed on the Step-Up Date the initial margin will increase, refer item 18. The Notes will not be eligible for inclusion in Regulatory Capital after this date. |
The full prospectus for Heritage Notes can be obtained from the About Heritage section at heritage.com.au
Risk Weighted Assets (A$m) | |
---|---|
Capital Requirements | |
Credit risk | |
Corporate | - |
Government | - |
ADIs | 296.3 |
Residential Mortgage | 1,746.1 |
Other Retail | 237.8 |
Other | 43.4 |
Off Balance Sheet | 36.5 |
2,360.1 | |
Securitisation | 24.0 |
Equity Exposure | - |
Market Risk | - |
Operational risk | 382.3 |
Interest Rate Risk | - |
2,766.4 | |
Common Equity Tier 1 | 11.51% |
Tier 1 | 11.51% |
Total Capital Ratio | 13.26% |
Gross Credit Exposure (A$m) |
Average Gross Credit Exposure for Quarter (A$m) |
|
---|---|---|
Exposure Type | ||
Cash and investment securities | 1,385.2 | 1,468.8 |
Loans and advances | 5,117.7 | 5,118.1 |
Other assets | 124.4 | 137.7 |
Total on balance sheet exposures | 6,627.3 | 6,724.6 |
Loans approved not yet advanced | 84.8 | 91.9 |
Other off balance sheet | 5.8 | 5.3 |
Total off balance sheet exposures | 90.6 | 97.2 |
Total exposures | 6,717.9 | 6,821.8 |
Exposure by Portfolio | ||
Corporate | - | - |
Government | 270.0 | 274.3 |
ADIs | 1,115.2 | 1,194.5 |
Residential Mortgage | 4,960.4 | 4,966.5 |
Other Retail | 242.1 | 243.5 |
Other | 130.2 | 143.0 |
6,717.9 | 6,821.8 |
Impaired loans (A$m) | Past due loans (A$m) | Specific provision balance (A$m) | Charges for specific provision (A$m) | Write-offs (A$m) | |
---|---|---|---|---|---|
Exposure by Portfolio | |||||
Corporate | - | - | - | - | - |
Government | - | - | - | - | - |
ADIs | - | - | - | - | - |
Residential Mortgage | 6.5 | 12.2 | 0.5 | 0.1 | - |
Other Retail | 2.9 | 1.3 | 1.3 | 0.3 | 0.4 |
Other | - | - | - | - | - |
Total * | 9.4 | 13.5 | 1.8 | 0.4 | 0.4 |
General Reserve for Credit Losses | 3.4 | ||||
Total impaired items, including restructured loans per statutory financial statements | 6.6 | ||||
Additional items defined as restructured as per the prudential standards | 2.8 | ||||
* | 9.4 |
Total Exposures Securitised (A$m) | Recognised Gain or Loss on Sale (A$m) | ||
---|---|---|---|
Securitisation Exposure Types | |||
Residential Mortgage | 0.0 | - | |
Total Exposures | 0.0 | - |
On Balance Sheet(A$m) | Off Balance Sheet(A$m) | Total Exposures(A$m) | |
---|---|---|---|
Securitisation Exposure Types | |||
Liquidity Facilities | - | 10.5 | 10.5 |
Funding Facilities | - | 0.2 | 0.2 |
Swaps | - | 28.4 | 28.4 |
Holdings of Securities | 36.1 | - | 36.1 |
36.1 | 39.1 | 75.2 |
Risk Weighted Assets (A$m) | |
---|---|
Capital Requirements | |
Credit risk | |
Corporate | - |
Government | - |
ADIs | 314.8 |
Residential Mortgage | 1,745.6 |
Other Retail | 242.6 |
Other | 53.9 |
Off Balance Sheet | 38.4 |
2,395.3 | |
Securitisation | 23.1 |
Equity Exposure | - |
Market Risk | - |
Operational risk | 382.3 |
Interest Rate Risk | - |
2,800.7 | |
Common Equity Tier 1 | 11.07% |
Tier 1 | 11.07% |
Total Capital Ratio | 12.81% |
Gross Credit Exposure (A$m) |
Average Gross Credit Exposure for Quarter (A$m) |
|
---|---|---|
Exposure Type | ||
Cash and investment securities | 1,544.5 | 1,369.2 |
Loans and advances | 5,119.1 | 5,278.3 |
Other assets | 172.3 | 145.8 |
Total on balance sheet exposures | 6,835.9 | 6,793.3 |
Loans approved not yet advanced | 91.3 | 93.1 |
Other off balance sheet | 5.1 | 5.5 |
Total off balance sheet exposures | 96.4 | 98.6 |
Total exposures | 6,932.3 | 6,891.9 |
Exposure by Portfolio | ||
Corporate | - | - |
Government | 194.8 | 189.7 |
ADIs | 1,349.7 | 1,179.5 |
Residential Mortgage | 4,963.1 | 5,124.2 |
Other Retail | 247.3 | 247.2 |
Other | 177.4 | 151.3 |
6,932.3 | 6,891.9 |
Impaired loans (A$m) | Past due loans (A$m) | Specific provision balance (A$m) | Charges for specific provision (A$m) | Write-offs (A$m) | |
---|---|---|---|---|---|
Exposure by Portfolio | |||||
Corporate | - | - | - | - | - |
Government | - | - | - | - | - |
ADIs | - | - | - | - | - |
Residential Mortgage | 10.4 | 11.2 | 0.4 | 0.1 | - |
Other Retail | 2.7 | 1.0 | 1.0 | (0.3) | 0.5 |
Other | - | - | - | - | - |
Total * | 13.1 | 12.2 | 1.4 | (0.2) | 0.5 |
General Reserve for Credit Losses | 3.7 | ||||
Total impaired items, including restructured loans per statutory financial statements | 6.5 | ||||
Additional items defined as restructured as per the prudential standards | 6.6 | ||||
* | 13.1 |
Total Exposures Securitised (A$m) | Recognised Gain or Loss on Sale (A$m) | ||
---|---|---|---|
Securitisation Exposure Types | |||
Residential Mortgage | 243.9 | - | |
Total Exposures | 243.9 | - |
On Balance Sheet(A$m) | Off Balance Sheet(A$m) | Total Exposures(A$m) | |
---|---|---|---|
Securitisation Exposure Types | |||
Liquidity Facilities | - | 11.0 | 11.0 |
Funding Facilities | - | 0.2 | 0.2 |
Swaps | - | 28.6 | 28.6 |
Holdings of Securities | 40.1 | - | 40.1 |
40.1 | 39.8 | 79.9 |
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