Prudential Reporting June 2011

Disclosure of Prudential Information for the quarter ended 30 June 2011


Capital ($)
Tier 1 capital
Retained earnings, including current year earnings 263,439,962
Deductions from Tier 1 capital (20,708,126)
Total Tier 1 capital 242,731,836
Tier 2 capital (net of deductions) 97,038,458
Total capital base 339,770,294


Risk Weighted Assets ($)
Credit risk - standardised approach
Corporate -
Government -
ADIs 187,536,176
Residential Mortgage 1,473,174,442
Other Retail 258,629,381
Other 95,793,549
Off Balance Sheet 35,880,949
Total capital requirement for credit risk 2,050,834,497
Capital requirement relating to securitisation exposures 30,456,859
Capital requirement for operational risk 322,376,052
Total risk weighted assets capital requirement 2,403,667,408
Tier 1 Capital Ratio 10.10%
Total Capital Ratio 14.14%


Gross Credit Exposure
Average Gross Credit
Exposure for Quarter
Exposure Type
Cash and investment securities 1,192,677,902 1,149,916,514
Loans and advances 4,421,451,036 4,389,185,217
Other assets 249,463,231 231,367,976
Total on balance sheet exposures 5,863,592,169 5,770,469,707
Loans approved not yet advanced 81,582,975 79,698,003
Other off balance sheet 4,767,948 4,865,695
Total off balance sheet exposures 86,350,923 84,563,698
Total exposures 5,949,943,092 5,855,033,405
Exposure by Category
Corporate - -
Government 351,118,545 345,603,112
ADIs 841,559,357 804,313,402
Residential Mortgage 4,241,022,070 4,207,425,269
Other Retail 262,011,941 261,457,951
Other 254,231,179 236,233,671
5,949,943,092 5,855,033,405


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 2,658,847 5,468,123 402,672 143,777 220
Other Retail 2,941,805 1,956,032 1,136,736 25,720 697,907
Other - - - - -
Total 5,600,652 7,424,155 1,539,408 169,497 698,127
General Reserve for Credit Losses 2,475,765

* 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.