Detailed Capital Disclosures Template (APS 330 Attachment A)

Transcription

1 1 Detailed Capital Disclsures Template (APS 330 Attachment A) The capital disclsures detailed in the template belw represents the pst 1 January 2018 Basel III cmmn disclsure requirements. Gulburn Murray Credit Unin is applying the Basel III regulatry adjustments in full as implemented by APRA. These tables shuld be read in cnjunctin with Regulatry Balance Sheet and the Recnciliatin between detailed capital disclsure template and the Regulatry Balance Sheet. Cmmn Equity Tier 1: instruments & reserves 30 June 17 Basel III APRA Recnciliatin Table Reference 1 Directly issued qualifying rdinary shares 2 Retained Earnings including current year earnings 39,235,304 3 Accumulated ther disclsed reserves 1,246,531 Table A 4 Directly issued capital subject t phase ut frm CET1 5 Ordinary share capital issued by subsidiaries and held by third parties 6 Cmmn Equity Tier 1 capital befre regulatry adjustments 40,481,835 Cmmn Equity Tier 1 capital: regulatry adjustments 7 Prudential valuatin adjustments 8 Gdwill (net f related tax liability) 9 Other intangibles ther than mrtgage servicing rights 10 Deferred tax assets that rely n future prfitability excluding thse arising frm temprary differences 11 Cash-flw hedge reserve 12 Shrtfall f prvisins t expected lsses 13 Securitisatin gain n sale 14 Gains and lsses due t changes in wn credit risk n fair valued liabilities 15 Defined benefits superannuatin fund net assets 16 Investments in wn shares 17 Reciprcal crss-hldings in cmmn equity 18 Investments in the capital f banking, financial and insurance entities that are utside the scpe f regulatry cnslidatin, net f eligible shrt psitins, where the ADI des nt wn mre than 10% f the issued share capital 19 Significant investments in the rdinary shares f banking, financial and insurance entities that are utside the scpe f regulatry cnslidatin, net f eligible shrt psitins 20 Mrtgage service rights 21 Deferred tax assets arising frm temprary differences 22 Amunt exceeding the 15% threshld 23 f which: significant investments in the rdinary shares f financial entities 24 f which: mrtgage servicing rights 25 f which: deferred tax assets arising frm temprary differences 26 Natinal specific regulatry adjustments 954,723 26a f which: treasury shares 26b f which: ffset t dividends declared under a dividend reinvestment plan (DRP), t the extent that the dividends are used t purchase new rdinary shares issued by the ADI 26c f which: deferred fee incme 26d f which: equity investments in financial institutins nt reprted in rws 18,19 and ,465 Table B 26e f which: deferred tax assets nt reprted in rws 10, 21 and ,185 Table C 26f f which: capitalised expenses 86,490 26g f which: investments in cmmercial (nn financial) entities that are deducted under APRA prudential requirements 15,582 Table B 26h f which: cvered bnds in excess f asset cver in pls 26i f which: undercapitalisatin f a nn-cnslidated subsidiary 26j f which: ther natinal specific regulatry adjustments nt reprted in rws 26a t 26i 27 Regulatry adjustments applied t Cmmn Equity Tier 1 due t insufficient Additinal Tier 1 and Tier 2 t cver deductins 28 Ttal regulatry adjustments t Cmmn Equity Tier 1 954, Cmmn Equity Tier 1 Capital (CET1) 39,527,112 Additinal Tier 1 Capital Instruments 30 Directly issued qualifying Additinal Tier 1 Instruments 31 f which: classified as equity under applicable accunting standards 32 f which: classified as liabilities under applicable accunting standards 33 Directly issued capital instruments subject t phase ut frm Additinal Tier 1 34 Additinal Tier 1 instruments issued by subsidiaries and held by third parties 35 f which: instruments issued by subsidiaries subject t phase ut 36 Additinal Tier 1 Capital befre regulatry adjustments Additinal Tier 1 Capital: regulatry adjustments 37 Investments in wn Additinal Tier 1 instruments 38 Reciprcal crss-hldings in Additinal Tier 1 Instruments 39 Investments in the capital f banking, financial and insurance entities that are utside the scpe f regulatry cnslidatin, net f eligible shrt psitins, where the ADI des nt wn mre than 10% f

2 regulatry cnslidatin, net f eligible shrt psitins, where the ADI des nt wn mre than 10% f the issued share capital (amunt abve 10% threshld) 40 Significant investments in the capital f banking, financial and insurance entities that are utside the scpe f regulatry cnslidatin, net f eligible shrt psitins 41 Natinal specific regulatry adjustments 0 41a f which: hldings f capital instruments in grup members by ther grup members n behalf f third parties 41b f which investments in the capital f financial institutins that are utside the scpe f regulatry cnslidatins nt reprted in rws 39 and 40 41c f which: ther natinal specific regulatry adjustments nt reprted in rws 41a and 41b 42 Regulatry adjustments applied t Additinal Tier 1 due t insufficient Tier 2 t cver deductins 43 Ttal regulatry adjustments t Additinal Tier 1 Capital 0 44 Additinal Tier 1 capital (AT1) 0 45 Tier 1 Capital (T1=CET1+AT1) 39,527,112 Tier 2 Capital: instruments and prvisins 46 Directly issued qualifying Tier 2 instruments 47 Directly issued capital instruments subject t phase ut frm Tier 2 48 Tier 2 instruments issued by subsidiaries and held by third parties 49 f which: instruments issued by subsidiaries subject t phase ut 50 Prvisins 856,574 Table A 51 Tier 2 Capital befre regulatry adjustments 856, Investments in wn Tier 2 instruments 53 Reciprcal crss-hldings in Tier 2 instruments 54 Investments in the Tier 2 capital f banking, financial and insurance entities that are utside the scpe f regulatry cnslidatin, net f eligible shrt psitins, where the ADI des nt wn mre than 10% f the issued share capital 55 Significant investments in the Tier 2 capital f banking, financial and insurance entities that are utside the scpe f regulatry cnslidatin, net f eligible shrt psitins 56 Natinal specific regulatry adjustments 0 56a f which: hldings f capital instruments in grup members by ther grup members n behalf f third parties 56b f which: investments in the capital f financial institutins that are utside the scpe f regulatry cnslidatins nt reprted in rws 54 and 55 56c f which: ther natinal specific regulatry adjustments nt reprted in rws 56a and 56b 57 Ttal regulatry adjustments t Tier 2 capital 0 58 Tier 2 capital (T2) 856, Ttal capital (TC=T1+T2) 40,383, Ttal risk weighted assets based n APRA standards 173,577,582 Capital ratis and buffers 61 Cmmn Equity Tier 1 (as a percentage f risk weighted assets) 22.77% 62 Tier 1 (as a percentage f risk weighted assets) 22.77% 63 Ttal Capital (as a percentage f risk weighted assets) 23.27% 64 Institutin -specific buffer requirement 7.00% 65 f which: capital cnservatin buffer requirement 2.50% 66 f which: ADI-specific cuntercyclical buffer requirements 0.00% 67 f which: G-SIB buffer requirement N/A 68 Cmmn Equity Tier 1 available t meet buffers (as a percentage f risk-weighted assets) 15.50% Natinal minima (if different frm BASEL III) 69 Natinal Cmmn Equity Tier 1 minimum rati 70 Natinal Tier 1 minimum rati 71 Natinal ttal capital minimum rati Amunt belw threshlds fr deductins (nt risk weighted) 72 Nn-significant investments in the capital f ther financial entities 73 Significant investments in the rdinary shares f financial entities 74 Mrtgage servicing rights 75 Deferred tax assets arising frm temprary differences Applicable caps n the inclusin f prvisins in Tier 2 76 Prvisins eligible fr inclusin in Tier 2 in respect f expsures subject t standardised apprach 77 Cap n inclusin f prvisins in Tier 2 under standardised apprach 78 Prvisins eligible fr inclusin in Tier 2 in respect f expsures subject t internal ratings-based apprach 79 Cap fr inclusin f prvisins in Tier 2 under internal ratings-based apprach Capital instruments subject t phase ut arrangements (nly applicable between 1 Jan 2018 and 1 Jan 2022) 80 Current cap n CET1 instruments subject t phase ut arrangements 81 Amunt excluded frm CET1 due t cap 82 Current cap n AT1 instruments subject t phase ut arrangements 83 Amunt excluded frm AT1 instruments due t cap 84 Current cap n T2 instruments subject t phase ut arrangements 85 Amunts excluded frm T2 due t cap

3 1.1 Regulatry Balance Sheet 30 June 17 Basel III APRA Template/ Recnciliatin Table Reference Assets Cash and cash equivalents 43,684,734 Lans t ther financial institutins 41,211,324 Receivables 289,155 Lans and advances 257,780,846 Other financial assets 437,048 Table B Investment prperty 660,000 Prperty, plant and equipment 5,105,684 Deferred tax asset 439,164 Table C Current tax asset 0 Intangible assets 86,490 Rw 26f Other 459,068 Ttal Assets 350,153,514 Liabilities Depsits 304,828,945 Shrt Term Brrwings - Bank verdraft - Payables 2,800,258 Emplyee benefits 803,029 Current tax payable 374,896 Deferred tax liability 7,978 Table C Ttal Liabilities 308,815,106 Net Assets 41,338,408 Equity Reserves 2,103,106 Table A Retained Prfits 39,235,302 Ttal Equity 41,338, Recnciliatin between Detailed Capital Template & Regulatry Balance Sheet 30 June 2017 Template Reference Table A Accumulated ther disclsed reserves Asset Revaluatin Reserve 1,161,700 Rw 3 Member Redemptin Reserve 84,831 Rw 3 General Reserve fr Credit Lsses 856,575 Rw 50 Ttal per Balance Sheet 2,103,106 Table B Other Financial Assets Equity Investments 421,466 Rw 26d Investments in cmmercial entities 15,582 Rw 26g Ttal per Balance Sheet 437,048 Table C Deferred Tax Assets Deferred Tax Asset per Balance Sheet 439,164 Less deferred tax liability per Balance Sheet -7,978 Net Deferred Tax Assets 431,186 Rw 26e

4 Gulburn Murray Credit Unin Capital Adequacy Calculatin Capital Adequacy Ttal Risk Weighted Assets fr Credit Risk 31 December March 2018 $ 156,701,861 $ 160,166,353 Ttal Risk Weighted Assets fr Market Risk $ - $ - Ttal Risk Weighted Assets fr Operatinal Risk Ttal Risk Weighted Assets $ 19,536,570 $ 19,536,570 $ 176,238,431 $ 179,702,923 Cmmn Equity Tier 1 Rati 23.52% 23.32% Tier 1 Rati 23.52% 23.32% Ttal Capital Adequacy Rati 24.01% 23.81% Risk Expsure Grss Credit Expsure Gulburn Murray Credit Unin Ttal Credit Risk Expsure Fr the perid ending 31 March 2018 Average Grss Expsure fr the perid Risk Weighted Amunts Specific Prvisin Impaired Assets Past Due Facilities Bad Debts Written Off Cash and Liquid Assets $ 103,466,287 $ 105,173,303 $ 35,389,587 Lans and Advances -Secured by Eligible Mrtgage $ 245,195,472 $ 243,297,650 $ 95,467,259 $ 97,607 $ 2,075,526 $ - -Other Lans & Advances $ 16,312,020 $ 16,083,931 $ 15,598,641 $ 34,746 $ 141,418 $ - $ 1,309 Direct Credit Substitutes $ 174,724 $ 174,724 $ 30,410 Other Cmmitments $ 44,631,523 $ 45,829,213 $ 7,368,225 Plant & Equipment $ 5,895,846 $ 5,891,163 $ 5,895,846 Other Investments $ 437,048 $ 437,048 $ - Other Assets $ 1,336,918 $ 1,317,581 $ 416,387 Ttals $ 417,449,838 $ 418,204,612 $ 160,166,353 $ 132,353 $ 2,216,944 $ - $ 1,309 General Reserve fr Credit Lsses 889,687 Gulburn Murray Credit Unin Risk Expsure Grss Credit Expsure Ttal Credit Risk Expsure Fr the perid ending 31 December 2017 Average Grss Expsure fr Risk Weighted Specific the perid Amunts Prvisin Impaired Assets Past Due Facilities Bad Debts Written Off Cash and Liquid Assets $ 101,548,686 $ 98,582,978 $ 33,161,121 Lans and Advances -Secured by Eligible Mrtgage $ 242,408,145 $ 243,184,117 $ 93,911,142 $ - $ 1,904,433 $ - -Other Lans & Advances $ 15,952,942 $ 15,707,771 $ 15,463,637 $ 31,711 $ 160,180 $ - $ 103,101 Direct Credit Substitutes $ 174,724 $ 143,927 $ 30,410 Other Cmmitments $ 46,071,203 $ 46,127,587 $ 7,856,189 Plant & Equipment $ 5,894,947 $ 5,897,896 $ 5,894,947 Other Investments $ 437,048 $ 437,048 $ - Other Assets $ 1,227,787 $ 1,286,341 $ 384,414 Ttals $ 413,715,481 $ 411,367,665 $ 156,701,861 $ 31,711 $ 2,064,614 $ - $ 103,101 General Reserve fr Credit Lsses 871,555

5 2. Remuneratin (APS 330 Attachment E) The Salary and Structure Cmmittee is respnsible fr verseeing remuneratin. This includes cnducting regular reviews f, and making recmmendatins t the Bard n the Remuneratin Plicy; making annual recmmendatins t the Bard n the remuneratin f the General Manager, direct reprts f the General Manager, ther persns whse activities may, in the Salary and Structure Cmmittee s pinin, affect the financial sundness f the regulated institutin and any ther persn specified by APRA; and making annual recmmendatins t the Bard n the remuneratin f the categries f persns cvered by the Remuneratin plicy. The Salary and Structure Cmmittee perates in accrdance with its written Charter that utlines the Cmmittee s rles, respnsibilities and terms f peratin. The members f the Salary and Structure Cmmittee during the year were: Geff Cbbledick Frank Mandaradni resigned Nv 16 Fina Merrylees resigned Nv 16 Fred West resigned Nv 16 Eugenie Stragalins appinted Nv 16 Eileen Curtis appinted Nv 16 Jhn Guilmartin appinted Nv 16 The Salary and Structure cmmittee meets at least nce a year and as required. The number f meetings during the year and the Cmmittee members attendance recrd is disclsed in the table f quantitative disclsure. During the year, the Salary and Structure Cmmittee did nt engage an external cnsultant t review and prvide advice n the variable remuneratin structure fr material risk takers Gulburn Murray Credit Unin s Remuneratin Plicy effective 1 April 2010 was apprved by the Bard n 17 March The Remuneratin Plicy applies t all emplyees f Gulburn Murray Credit Unin. The Salary and Structure Cmmittee has reviewed the risks and remuneratin structures and cnsiders the fllwing emplyees material risk takers and senir managers in accrdance with CPS510: Type f Emplyee Number Number Senir Managers Managers including functins f peratinal, finance, cmpliance and lending. 5 5 Material Risk Takers Persns subject t significant bnus r perfrmance based remuneratin and whse activities, individually r cllectively, may affect the financial sundness f the regulated institutin. Nil Nil

6 The Remuneratin Plicy is cnsidered an imprtant cmpnent t recruit and retain thse wh have the necessary skills fr the effective and prudent peratin and are cmmitted t making a lng-term career with Gulburn Murray Credit Unin. The Remuneratin Plicy is designed t ensure: The alignment f the Gulburn Murray Credit Unin s interest with thse f its emplyees and members The Gulburn Murray Credit Unin s lng-term financial sundness; and The supprt f an effective risk management framewrk As detailed in the Remuneratin Plicy, the structure f the remuneratin arrangements cmprises the fllwing: Fixed Cmpnent Variable Cmpnent Fixed Cmpnent Fixed cmpnent cnsists f salary, fees, and FBT charges related t emplyee benefits including mtr vehicles, leave entitlements and emplyer cntributins t superannuatin funds. Cmpensatin levels are reviewed annually by the Salary and Structure Cmmittee thrugh a prcess that cnsiders individual and the verall perfrmance f the Gulburn Murray Credit Unin. Variable Cmpnent Emplyees have pprtunities t participate in variable pay arrangements. Discretinary variable pay is dependent n the achievement f financial bjectives as set by Senir Management, utlined in the Budget and apprved by the Bard. The variable cmpnent is differentiated by perfrmance. With cnsideratin fr the expected value f awards, the perfrmance related elements f pay make up a small prprtin f the ttal remuneratin fr mid management, whilst maintaining an apprpriate balance between fixed and variable elements. N bnus structure is available fr Senir Managers. Remuneratin is structured t prvide an pprtunity fr cmpensatin fr higher levels f perfrmance. The Remuneratin Plicy allws fr perfrmance pay adjustment as a result f adverse unexpected cnsequences and payment deferral if utcmes cannt yet be reliably measured. During the year, the Salary and Structure Cmmittee reviewed the Remuneratin Plicy and prpsed n changes. Risk and Cmpliance Staff The perfrmance and remuneratin f risk and cmpliance staff is assessed accrding t bjectives specific t the rles they undertake. These rles are remunerated with a fixed salary which is reviewed and benchmarked against the industry and internally t ensure that it is set at an apprpriate level. Gulburn Murray Credit Unin has develped a risk management framewrk which describes the type f risks it is prepared t take in executing its strategic plan. Hwever, Gulburn Murray Credit Unin des nt have a direct link frm this risk management framewrk t the attainment f variable remuneratin.

7 Directr Meetings Held Meeting Attended Meetings Held Meetings Attended Geff Cbbledick Jhn Guilmartin Frank Mandaradni Fina Merrylees Fred West Eileen Curtis Eugenie Stragalins Remuneratin f the Salary & Structure Cmmittee Remuneratin f the Salary & Structure Cmmittee as part f Bard $80,536 $68,140 The table belw presents the number f emplyees wh received variable remuneratin, guaranteed bnuses, sign-n awards r terminatin payments during the financial year: Variable remuneratin, guaranteed bnuses, sign n award and terminatin payment Variable remuneratin award N f emplyees Ttal ($) N f emplyees Ttal ($) discretinary bnus Guaranteed Bnus Sign-On Award Terminatin Payments Ttal 0 $ - 0 $ - The table belw presents ttal value f remuneratin awards fr senir managers: Ttal value f remuneratin awards Fixed Remuneratin Unrestricted Deferred Ttal Unrestricted Deferred Ttal $ $ $ $ $ $ Cash-based $840,337 - $840,337 $807,027 - $807,027 Shares and share linked instruments Other $840,337 - $840,337 $807,027 - $807,027 Variable remuneratin Cash-based Shares and share linked instruments Other $840,337 - $840,337 $807,027 - $807,027