Prudential Reporting June 2012

Heritage Bank Limited APRA Prudential Standard APS 330 - Public Disclosure of Prudential Information as at 30 June 2012

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 30 JUNE 2012

Risk Weighted Assets ($)
Credit risk - standardised approach
Corporate -
Government -
ADIs 229,713,889
Residential Mortgage 1,666,062,420
Other Retail 255,165,331
Other 65,605,104
Off Balance Sheet 50,952,736
Total capital requirement for credit risk 2,267,499,480
Capital requirement relating to securitisation exposures 32,834,343
Capital requirement for operational risk 360,237,179
Total risk weighted assets capital requirement 2,660,571,002
Tier 1 Capital Ratio 10.14%
Total Capital Ratio 12.51%

CREDIT RISK AS AT 30 JUNE 2012

Gross Credit Exposure
($)
Average Gross Credit
Exposure for Quarter
($)
Exposure Type
Cash and investment securities 1,222,798,181 1,050,565,907
Loans and advances 4,928,471,737 4,851,810,816
Other assets 216,108,841 199,735,997
Total on balance sheet exposures 6,367,378,759 6,102,112,720
Loans approved not yet advanced 123,636,369 125,426,373
Other off balance sheet 5,231,692 4,980,386
Total off balance sheet exposures 128,868,061 130,406,759
Total exposures 6,496,246,820 6,232,519,479
Exposure by Category
Corporate - -
Government 258,093,885 112,465,830
ADIs 964,704,296 938,100,077
Residential Mortgage 4,793,225,880 4,719,484,457
Other Retail 258,882,226 257,752,732
Other 221,340,533 204,716,383
6,496,246,820 6,232,519,479

CREDIT RISK FOR THE QUARTER ENDED 30 JUNE 2012

Impaired loans ($) Past due loans ($) Specific provision balance ($) Charges for specific provision ($) Write-offs ($)
Exposure by category
Corporate - - - - -
Government - - - - -
ADIs - - - - -
Residential Mortgage 1,880,893 9,008,044 319,913 (247,551) 164,482
Other Retail 2,753,184 1,250,522 1,155,105 (387,136) 404,558
Other - - - - -
Total 4,634,077 10,258,566 1,475,018 (634,687) 569,040
General Reserve for Credit Losses 3,167,943

SECURITISATION FOR THE QUARTER ENDED 30 JUNE 2012

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

SECURITISATION AS AT 30 JUNE 2012

On Balance Sheet($) Off Balance Sheet($) Total Exposures($)
Securitisation Facility Type
Liquidity Facilities - 11,004,704 11,004,704
Funding Facilities - 418,350 418,350
Swaps - 36,709,690 36,709,690
Holdings of Securities 60,035,077 - 60,035,077
60,035,077 48,132,744 108,167,821

* 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.