Prudential Reporting December 2012

Heritage Bank Limited APRA Prudential Standard APS 330 - Public Disclosure of Prudential Information as at 31 December 2012

CAPITAL STRUCTURE AS AT 31 DECEMBER 2012

Capital ($)
Tier 1 capital
Retained earnings, including current year earnings 312,491,481
Deductions from Tier 1 capital (25,704,662)
Total Tier 1 capital 286,786,819
Tier 2 capital (net of deductions) 53,755,099
Total capital base 340,541,918

CAPITAL STRUCTURE AS AT 30 JUNE 2012

Capital ($)
Tier 1 capital
Retained earnings, including current year earnings 292,760,319
Deductions from Tier 1 capital (22,923,494)
Total Tier 1 capital 269,836,825
Tier 2 capital (net of deductions) 63,078,347
Total capital base 332,915,172

CAPITAL ADEQUACY AS AT 31 DECEMBER 2012

Risk Weighted Assets ($)
Credit risk - standardised approach
Corporate -
Government -
ADIs 277,924,923
Residential Mortgage 1,787,764,171
Other Retail 243,448,395
Other 51,637,173
Off Balance Sheet 47,619,310
Total capital requirement for credit risk 2,408,393,972
Capital requirement relating to securitisation exposures 26,827,134
Capital requirement for operational risk 370,692,404
Total risk weighted assets capital requirement 2,805,913,510
Tier 1 Capital Ratio 10.22%
Total Capital Ratio 12.14%

CAPITAL ADEQUACY AS AT 30 SEPTEMBER 2012

Risk Weighted Assets ($)
Credit risk - standardised approach
Corporate -
Government -
ADIs 267,410,638
Residential Mortgage 1,740,100,504
Other Retail 244,374,562
Other 57,863,221
Off Balance Sheet 53,902,816
Total capital requirement for credit risk 2,363,651,741
Capital requirement relating to securitisation exposures 30,268,560
Capital requirement for operational risk 360,237,179
Total risk weighted assets capital requirement 2,754,157,480
Tier 1 Capital Ratio 10.08%
Total Capital Ratio 12.36%

CREDIT RISK AS AT 31 DECEMBER 2012

Gross Credit Exposure
($)
Average Gross Credit
Exposure for Quarter
($)
Exposure Type
Cash and investment securities 1,221,174,586 1,241,502,506
Loans and advances 5,247,092,638 5,213,160,826
Other assets 158,340,617 142,992,276
Total on balance sheet exposures 6,626,607,841 6,597,655,608
Loans approved not yet advanced 116,055,291 117,132,982
Other off balance sheet 6,010,409 6,131,886
Total off balance sheet exposures 122,065,700 123,264,868
Total exposures 6,748,673,541 6,720,920,476
Exposure by Category
Corporate - -
Government 90,686,851 167,480,194
ADIs 1,130,487,735 1,074,022,312
Residential Mortgage 5,116,086,750 5,085,108,356
Other Retail 247,061,178 245,185,452
Other 164,351,027 149,124,162
6,748,673,541 6,720,920,476

CREDIT RISK AS AT 30 SEPTEMBER 2012

Gross Credit Exposure
($)
Average Gross Credit
Exposure for Quarter
($)
Exposure Type
Cash and investment securities 1,119,631,859 1,047,981,173
Loans and advances 5,119,958,099 5,058,078,348
Other assets 193,352,986 205,877,221
Total on balance sheet exposures 6,432,942,944 6,311,936,742
Loans approved not yet advanced 132,532,698 127,516,914
Other off balance sheet 6,104,371 5,475,002
Total off balance sheet exposures 138,637,069 132,991,916
Total exposures 6,571,580,013 6,444,928,658
Exposure by Category
Corporate - -
Government 52,459,197 42,017,638
ADIs 1,067,172,662 1,005,963,535
Residential Mortgage 5,004,160,251 4,936,432,369
Other Retail 248,330,546 249,162,893
Other 199,457,357 211,352,223
6,571,580,013 6,444,928,658

CREDIT RISK FOR THE QUARTER ENDED 31 DECEMBER 2012

Impaired loans ($) Past due loans ($) Specific provision balance ($) Charges for specific provision ($) Write-offs ($)
Exposure by category
Corporate - - - - -
Government - - - - -
ADIs - - - - -
Residential Mortgage 2,063,385 5,352,372 178,603 (180,405) 201,876
Other Retail 2,819,172 1,384,432 1,230,820 16,012 326,262
Other - - - - -
Total 4,882,557 6,736,804 1,409,423 (164,393) 528,138
General Reserve for Credit Losses 3,454,553

CREDIT RISK FOR THE QUARTER ENDED 30 SEPTEMBER 2012

Impaired loans ($) Past due loans ($) Specific provision balance ($) Charges for specific provision ($) Write-offs ($)
Exposure by category
Corporate - - - - -
Government - - - - -
ADIs - - - - -
Residential Mortgage 3,411,489 6,087,939 359,008 39,095 5,000
Other Retail 2,758,216 1,172,876 1,214,808 59,703 307,566
Other - - - - -
Total 6,169,705 7,260,815 1,573,816 98,798 312,566
General Reserve for Credit Losses 3,003,195

SECURITISATION FOR THE QUARTER ENDED 31 DECEMBER 2012

Total Exposures Securitised ($) Recognised Gain or Loss on Sale ($)
Underlying Asset Type
Residential Mortgage - -
- -

SECURITISATION FOR THE QUARTER ENDED 30 SEPTEMBER 2012

Total Exposures Securitised ($) Recognised Gain or Loss on Sale ($)
Underlying Asset Type
Residential Mortgage - -
- -

SECURITISATION AS AT 31 DECEMBER 2012

On Balance Sheet($) Off Balance Sheet($) Total Exposures($)
Securitisation Facility Type
Liquidity Facilities - 10,084,502 10,084,502
Funding Facilities - 376,764 376,764
Swaps - 31,350,687 31,350,687
Holdings of Securities 49,081,337 - 49,081,337
49,081,337 41,811,953 90,893,290

SECURITISATION AS AT 30 SEPTEMBER 2012

On Balance Sheet($) Off Balance Sheet($) Total Exposures($)
Securitisation Facility Type
Liquidity Facilities - 10,531,154 10,531,154
Funding Facilities - 396,643 396,643
Swaps - 33,268,351 33,268,351
Holdings of Securities 54,437,832 - 54,437,832
54,437,832 44,196,148 98,633,980

Previous Reports

* Based on a $150,000 loan over 25 years. 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.