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Provisions for expected credit losses (Tables)
 6 Months Ended
Mar. 31, 2021
Provisions for expected credit losses  
Schedule of impact of COVID-19 to the provision for ECL

 

 

 

 

 

 

 

 

 

As at

 

As at

 

As at

 

 

31 March

 

30 Sept

 

31 March

$m

    
2021

    
2020

    
2020

Modelled provision for ECL

 

4,580

 

5,480

 

5,147

Overlays

 

902

 

652

 

619

Total provision for ECL

 

5,482

 

6,132

 

5,766

 

Summary of the the probability weighted scenarios

 

 

 

 

 

 

 

 

 

As at

 

As at

 

As at

 

 

31 March

 

30 Sept

 

31 March

$m

    
2021

    
2020

    
2020

Reported probability-weighted ECL

 

5,482

 

6,132

 

5,766

100% base case ECL

 

3,902

 

4,750

 

4,476

100% downside ECL

 

7,865

 

8,315

 

7,902

 

Summary of macroeconomic scenario weightings

 

 

 

 

 

 

 

 

 

As at

 

As at

 

As at

 

 

31 March

 

30 Sept

 

31 March

Macroeconomic scenario weightings (%)

    
2021

    
2020

    
2020

Upside

 

 5

 

 5

 

 5

Base

 

55

 

55

 

55

Downside

 

40

 

40

 

40

 

Reconciliation of impairment charges

 

 

 

 

 

 

 

 

 

Half Year

 

Half Year

 

Half Year

 

 

March

 

Sept

 

March

$m

    
2021

 
2020

 
2020

Loans and credit commitments:

 

 

 

 

 

 

Business activity during the period

 

(226)

 

11

 

184

Net remeasurement of the provision for ECL

 

(9)

 

1,016

 

2,140

Impairment charges for debt securities at amortised cost

 

(6)

 

 5

 

13

Impairment charges for debt securities at FVOCI1

 

 1

 

 1

 

 1

Recoveries

 

(132)

 

(93)

 

(100)

Impairment charges/(benefits)

 

(372)

 

940

 

2,238

1.     Impairment on debt securities at FVOCI is recognised in the income statement with a corresponding amount in other comprehensive income (refer to Note 15). There is no reduction of the carrying value of the debt securities which remains at fair value.

Loans and credit commitments  
Provisions for expected credit losses  
Schedule of provision for ECL

 

 

 

 

 

 

 

 

 

 

 

 

 

As at

 

As at

 

As at

 

% Mov’t

 

 

31 March

 

30 Sept

 

31 March

 

Mar 21 - 

 

Mar 21 - 

$m

    
2021

    
2020

    
2020

    

Sept 20

    

Mar 20

Performing - Stage 1

    

1,022

    

1,084

    

1,181

    

(6)

    

(13)

Performing - Stage 2

 

2,568

 

2,875

 

2,878

 

(11)

 

(11)

Non-performing - Stage 3

 

1,892

 

2,173

 

1,707

 

(13)

 

11

Total provisions for ECL on loans and credit commitments

 

5,482

 

6,132

 

5,766

 

(11)

 

(5)

Presented as:

 

 

 

 

 

 

 

 

 

 

Provision for ECL on loans (Note 9)

 

4,913

 

5,602

 

5,190

 

(12)

 

(5)

Provision for ECL on loans included in assets held for sale (Note 17)

 

85

 

 —

 

 —

 

 —

 

 —

Provision for ECL on credit commitments (Note 14)

 

477

 

530

 

576

 

(10)

 

(17)

Provision for ECL on credit commitments included in liabilities held for sale (Note 17)

 

 7

 

 —

 

 —

 

 —

 

 —

Total provisions for ECL on loans and credit commitments

 

5,482

 

6,132

 

5,766

 

(11)

 

(5)

Of which:

 

 

 

 

 

 

 

 

 

 

Individually assessed provisions

 

564

 

611

 

606

 

(8)

 

(7)

Collectively assessed provisions

 

4,918

 

5,521

 

5,160

 

(11)

 

(5)

Total provisions for ECL on loans and credit commitments

 

5,482

 

6,132

 

5,766

 

(11)

 

(5)

 

Summary and changes in the provision for ECL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-

 

 

Consolidated

 

Performing

 

performing

 

 

$m

    

Stage 1

    

Stage 2

 

Stage 3

    

Total

Balance as at 30 September 2019

 

884

 

1,674

 

1,355

 

3,913

Transfers to Stage 1

 

600

 

(583)

 

(17)

 

 —

Transfers to Stage 2

 

(131)

 

466

 

(335)

 

 —

Transfers to Stage 3

 

(2)

 

(334)

 

336

 

 —

Business activity during the period

 

120

 

114

 

(50)

 

184

Net remeasurement of provision for ECL

 

(297)

 

1,526

 

911

 

2,140

Write-offs

 

 —

 

 —

 

(537)

 

(537)

Exchange rate and other adjustments

 

 7

 

15

 

44

 

66

Balance as at 31 March 2020

 

1,181

 

2,878

 

1,707

 

5,766

Transfers to Stage 1

 

978

 

(945)

 

(33)

 

 —

Transfers to Stage 2

 

(214)

 

695

 

(481)

 

 —

Transfers to Stage 3

 

(5)

 

(621)

 

626

 

 —

Business activity during the period

 

92

 

(54)

 

(27)

 

11

Net remeasurement of provision for ECL

 

(936)

 

948

 

1,004

 

1,016

Write-offs

 

 —

 

 —

 

(633)

 

(633)

Exchange rate and other adjustments

 

(12)

 

(26)

 

10

 

(28)

Balance as at 30 September 2020

 

1,084

 

2,875

 

2,173

 

6,132

Transfers to Stage 1

 

695

 

(662)

 

(33)

 

 —

Transfers to Stage 2

 

(112)

 

719

 

(607)

 

 —

Transfers to Stage 3

 

(3)

 

(244)

 

247

 

 —

Business activity during the period

 

52

 

(107)

 

(171)

 

(226)

Net remeasurement of provision for ECL

 

(689)

 

(8)

 

688

 

(9)

Write-offs

 

 —

 

 —

 

(431)

 

(431)

Exchange rate and other adjustments

 

(5)

 

(5)

 

26

 

16

Balance as at 31 March 2021

 

1,022

 

2,568

 

1,892

 

5,482

 

Schedule of provision for ECL by class and stage

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

Non-

    

 

 

 

Performing

 

performing

 

 

$m

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

Housing

 

195

 

544

 

583

 

1,322

Personal

 

267

 

562

 

319

 

1,148

Business

 

719

 

1,772

 

805

 

3,296

Balance as at 31 March 2020

 

1,181

 

2,878

 

1,707

 

5,766

Housing

 

192

 

747

 

977

 

1,916

Personal

 

216

 

408

 

232

 

856

Business

 

676

 

1,720

 

964

 

3,360

Balance as at 30 September 2020

 

1,084

 

2,875

 

2,173

 

6,132

Housing

 

180

 

704

 

830

 

1,714

Personal

 

184

 

331

 

208

 

723

Business

 

658

 

1,533

 

854

 

3,045

Balance as at 31 March 2021

 

1,022

 

2,568

 

1,892

 

5,482

 

Debt Securities  
Provisions for expected credit losses  
Summary and changes in the provision for ECL

The following tables reconcile the provision for ECL on debt securities.

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

 

 

 

 

 

Debt

 

securities at

 

Assets held

 

 

 

 

securities at

 

amortised

 

for sale

 

Total debt

$m

    

FVOCI1

    

cost

    

(Note 17)

    

securities

Balance as at 30 September 2019

 

 2

 

 9

 

 —

 

11

Stage 1 - change in the provision during the period

 

 1

 

10

 

 —

 

11

Stage 2 - change in the provision during the period

 

 —

 

 3

 

 —

 

 3

Balance as at 31 March 2020

 

 3

 

22

 

 —

 

25

Stage 1 - change in the provision during the period

 

 1

 

(19)

 

 —

 

(18)

Stage 2 - change in the provision during the period

 

 —

 

24

 

 —

 

24

Balance as at 30 September 2020

 

 4

 

27

 

 —

 

31

Stage 1 - change in the provision during the period

 

 1

 

 1

 

 —

 

 2

Stage 2 - change in the provision during the period

 

 —

 

(7)

 

 —

 

(7)

Balances reclassified to assets held for sale2

 

 —

 

(21)

 

21

 

 —

Balance as at 31 March 2021

 

 5

 

 —

 

21

 

26

1.     Impairment on debt securities at FVOCI is recognised in the income statement with a corresponding amount in other comprehensive income (refer to Note 15). There is no reduction of the carrying value of the debt securities which remains at fair value.

2.     A provision for ECL of $21 million was transferred from debt securities at amortised cost to assets held for sale consistent with the transfer of the gross exposure (refer Note 17 for further details). The $21 million provision for ECL is comprised of $1 million stage 1 ECL balance and $20 million of stage 2 ECL balance.