Prudential Reporting June 2010

Disclosure of Prudential Information for the quarter ended 30 June 2010


Capital ($)
Tier 1 capital
Retained earnings, including current year earnings 230,859,523
Deductions from Tier 1 capital (18,752,235)
Total Tier 1 capital 212,107,288
Tier 2 capital (net of deductions) 97,752,787
Total capital base 309,860,075


Risk Weighted Assets ($)
Credit risk - standardised approach
Corporate 11,697,127
Government -
ADIs 176,196,621
Residential Mortgage 1,372,863,295
Other Retail 261,044,793
Other 73,813,284
Off Balance Sheet 33,553,489
Total capital requirement for credit risk 1,929,168,609
Capital requirement relating to securitisation exposures 16,574,623
Capital requirement for operational risk 290,790,808
Total risk weighted assets capital requirement 2,236,534,040
Tier 1 Capital Ratio 9.48%
Total Capital Ratio 13.85%


Gross Credit Exposure
Average Gross Credit
Exposure for Quarter
Exposure Type
Cash and investment securities 1,066,624,526 1,058,450,560
Loans and advances 4,140,874,530 4,107,687,475
Other assets 150,817,522 144,654,669
Total on balance sheet exposures 5,358,316,578 5,310,792,704
Loans approved not yet advanced 79,255,555 78,067,556
Other off balance sheet 4,161,713 4,422,672
Total off balance sheet exposures 83,417,268 82,490,288
Total exposures 5,441,733,846 5,393,282,932
Exposure by Category
Corporate 58,485,634 46,547,051
Government 129,576,230 117,018,242
ADIs 878,562,662 834,885,267
Residential Mortgage 3,957,217,960 3,925,386,515
Other Retail 262,912,125 260,368,516
Other 154,979,235 149,077,341
5,441,733,846 5,393,282,932


Impaired loans ($)Past due loans ($)Specific provision balance ($)Charges for specific provision for quarter ($)Write-offs for quarter ($)
Exposure by category
Corporate - - - - -
Government - - - - -
ADIs - - - - -
Residential Mortgage 2,434,818 2,353,984 370,271 370,271 -
Other Retail 1,590,958 1,080,816 634,864 (178,818) 649,872
Other - - - - -
Total 4,025,776 3,434,800 1,005,135 191,453 649,872
General Reserve for Credit Losses 3,537,102

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

Generate a personalised Key Fact Sheet based on your loan amount, term and repayments. This tool is provided to help you compare home loans from Heritage with other financial institutions.