BASEL Pillar 3. Public Disclosure of Prudential Information under APS 330 As at 31 Dec Bank of China (Australia) Limited

Transcription

1 Public Disclosure of Prudential Information under APS 330 As at 31 Dec 2013

2 Public Disclosure of Prudential Information Part 1 is using the post 1 January 2018 capital disclosure template because it is fully applying the Basel III regulatory adjustments as implemented by APRA. Table 1 Common Equity Tier 1 capital: instruments and reserves A$m Reconciliation Table Reference 1 Directly issued qualifying ordinary shares (and equivalent for mutuallyowned entities) capital 80.0 Table 1: E19 2 Retained earnings 8.2 Table 1: E21 3 Accumulated other comprehensive income (and other reserves) 0.1 Table 1: E20 4 Directly issued capital subject to phase out from CET1 (only applicable to mutuallyowned companies) 5 Ordinary share capital issued by subsidiaries and held by third parties (amount allowed in group CET1) 6 Common Equity Tier 1 capital before regulatory adjustments 88.3 Common Equity Tier 1 capital : regulatory adjustments 7 Prudential valuation adjustments 8 Goodwill (net of related tax liability) 9 Other intangibles other than mortgage servicing rights (net of related tax liability) 10 Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) 11 Cashflow hedge reserve 12 Shortfall of provisions to expected losses 13 Securitisation gain on sale (as set out in paragraph 562 of Basel II framework) 14 Gains and losses due to changes in own credit risk on fair valued liabilities 15 Defined benefit superannuation fund net assets 16 Investments in own shares (if not already netted off paidin capital on reported balance sheet) 17 Reciprocal crossholdings in common equity Investments in the capital of banking, financial and insurance entities that are outside the 18 scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold) Significant investments in the ordinary shares of banking, financial and insurance entities 19 that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) 20 Mortgage service rights (amount above 10% threshold) 21 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) (0.6) 22 Amount exceeding the 15% threshold 23 of which: significant investments in the ordinary shares of financial entities 24 of which: mortgage servicing rights 25 of which: deferred tax assets arising from temporary differences (0.6) Table 1: A8, L15 26 National specific regulatory adjustments (sum of rows 26a, 26b, 26c, 26d, 26e, 26f, 26g, 26h, 26i and 26j) (1.8) 26a of which: treasury shares 26b of which: offset to dividends declared under a dividend reinvestment plan (DRP), to the extent that the dividends are used to purchase new ordinary shares issued by the ADI 26c of which: deferred fee income 26d of which: equity investments in financial institutions not reported in rows 18, 19 and 23 26e of which: deferred tax assets not reported in rows 10, 21 and 25 26f of which: capitalised expenses (1.8) Table 2 26g of which: investments in commercial (nonfinancial) entities that are deducted under APRA prudential requirements 26h of which: covered bonds in excess of asset cover in pools 26i of which: undercapitalisation of a nonconsolidated subsidiary 26j of which: other national specific regulatory adjustments not reported in rows 26a to 26i 27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions 28 Total regulatory adjustments to Common Equity Tier 1 (2.4) 29 Common Equity Tier 1 Capital (CET1) 85.9 Page 2

3 Public Disclosure of Prudential Information Part 1 is using the post 1 January 2018 capital disclosure template because it is fully applying the Basel III regulatory adjustments as implemented by APRA. Additional Tier 1 Capital: instruments 30 Directly issued qualifying Additional Tier 1 instruments 31 of which: classified as equity under applicable accounting standards 32 of which: classified as liabilities under applicable accounting standards 33 Directly issued capital instruments subject to phase out from Additional Tier 1 34 Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1) 35 of which: instruments issued by subsidiaries subject to phase out 36 Additional Tier 1 Capital before regulatory adjustments 37 Investments in own Additional Tier 1 instruments 38 Reciprocal crossholdings in Additional Tier 1 instruments 39 Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold) 40 Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) 41 National specific regulatory adjustments (sum of rows 41a, 41b and 41c) 41a of which: holdings of capital instruments in group members by other group members on behalf of third parties 41b of which: investments in the capital of financial institutions that are outside the scope of regulatory consolidations not reported in rows 39 and 40 41c of which: other national specific regulatory adjustments not reported in rows 41a and 41b 42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions 43 Total regulatory adjustments to Additional Tier 1 capital 44 Additional Tier 1 capital (AT1) 45 Tier 1 Capital (T1=CET1+AT1) 85.9 Tier 2 Capital: instruments and provisions 46 Directly issued qualifying Tier 2 instruments 47 Directly issued capital instruments subject to phase out from Tier 2 48 Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties (amount allowed in group T2) 49 of which: instruments issued by subsidiaries subject to phase out 50 Provisions 1.3 Table 3 51 Tier 2 Capital before regulatory adjustments 1.3 Tier 2 Capital: regulatory adjustments 52 Investments in own Tier 2 instruments 53 Reciprocal crossholdings in Tier 2 instruments a 56b Investments in the Tier 2 capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the ADI does not own more than 10% of the issued share capital (amount above 10% threshold) Significant investments in the Tier 2 capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions National specific regulatory adjustments (sum of rows 56a, 56b and 56c) of which: holdings of capital instruments in group members by other group members on behalf of third parties of which: investments in the capital of financial institutions that are outside the scope of regulatory consolidation not reported in rows 54 and 55 56c of which: other national specific regulatory adjustments not reported in rows 56a and 56b 57 Total regulatory adjustments to Tier 2 capital 58 Tier 2 capital (T2) Total capital (TC=T1+T2) Total riskweighted assets based on APRA standards Page 3

4 Public Disclosure of Prudential Information Part 1 is using the post 1 January 2018 capital disclosure template because it is fully applying the Basel III regulatory adjustments as implemented by APRA. Capital ratios and buffers 61 Common Equity Tier 1 (as a percentage of riskweighted assets) 19.7% 62 Tier 1 (as a percentage of riskweighted assets) 19.7% 63 Total capital (as a percentage of riskweighted assets) 20.0% 64 Buffer requirement (minimum CET1 requirement of 4.5% plus capital conservation buffer of 2.5% plus any countercyclical buffer requirements expressed as a percentage of riskweighted assets) 7.0% 65 of which: capital conservation buffer requirement 2.0% 66 of which: ADIspecific countercyclical buffer requirements 0.0% 67 of which: GSIB buffer requirement (not applicable) n/a 68 Common Equity Tier 1 available to meet buffers (as a percentage of riskweighted assets) 19.7% National minima (if different from Basel III) 69 National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) 70 National Tier 1 minimum ratio (if different from Basel III minimum) 71 National total capital minimum ratio (if different from Basel III minimum) Amount below thresholds for deductions (not riskweighted) 72 Nonsignificant investments in the capital of other financial entities 73 Significant investments in the ordinary shares of financial entities 74 Mortgage servicing rights (net of related tax liability) 75 Deferred tax assets arising from temporary differences (net of related tax liability) Applicable caps on the inclusion of provisions in Tier 2 76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap) Cap on inclusion of provisions in Tier 2 under standardised approach Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratingsbased approach (prior to application of cap) 79 Cap for inclusion of provisions in Tier 2 under internal ratingsbased approach Capital instruments subject to phaseout arrangements (only applicable between 1 Jan 2018 and 1 Jan 2022) 80 Current cap on CET1 instruments subject to phase out arrangements n/a 81 Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities n/a 82 Current cap on AT1 instruments subject to phase out arrangements n/a 83 Amount excluded from AT1 instruments due to cap (excess over cap after redemptions and maturities) n/a 84 Current cap on T2 instruments subject to phase out arrangements n/a 85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) n/a Page 4

5 Public Disclosure of Prudential Information Part 1 Reconciliation Table 1. Audited Financial Statement Ref Financial Statement Assets per audited accounts Balance Sheet under Regulatory Scope of Consolidation is using the post 1 January 2018 capital disclosure template because it is fully applying the Basel III regulatory adjustments as implemented by APRA. Cash and liquid assets A Receivables due from financial institutions A Financial assets at fair value through income statement A3 Derivative assets A Availableforsale financial assets A Loans and advances A Tax recoverable A Deferred tax assets A Other assets A Total assets A Liability Payables due to financial institutions L Derivative liabilities L Customer deposits L Current tax liabilities L14 Deferred tax liabilities L Other liabilities L Total liabilities L Net assets L Equity Contributed equity E Reserves E Retained profits E Total contributed equity E

6 Public Disclosure of Prudential Information Part 1 Reconciliation Table 2. Other assets Ref Consolidated $'000, Other assets per audited accounts Accrued interest receivable 1.8 Prepaid expenses and other receivables 1.9 Total Other Assets 3.7 Prepaid expenses and other receivables 1.9 Exlucde other receivables 0.1 Capitalised expenses Row 26f 1.8 Reconciliation Table 3. Provision Ref Consolidated $'000, Loan and advances per audited accounts Housing loans Personal loans 12.9 Corporate loans 6.1 Overdrafts 0.5 Total Provision for impairment: Collective provision (1.8) Individually assessed provisions (0.3) Total (2.1) Total Loan and advances Provision Collective provision 1.8 Adjusted for tax effect (0.5) Provisions Raw

7 Public Disclosure of Prudential Information Part 2 Table 2. Disclosure template for main features of Regulatory Capital instruments is using the post 1 January 2018 capital disclosure template because it is fully applying the Basel III regulatory Ordinary Shares Bank of China (Austrlia) Limited 2 Unique identifier (eg CUSIP, ISIN or Bloomberg identifier for private placement) N/A 3 Governing law(s) of the instrument Australia Regulatory treatment 4 Transitional Basel III rules Common Euqity Tier 1 5 Posttransitional Basel III rules Common Euqity Tier 1 6 Eligible at solo/group/group & solo Solo 7 Instrument type (ordinary shares/preference shares/subordinated notes/other) Ordinary Shares Amount recognised in Regulatory Capital (Currency in mil, as of most recent 8 AUD 80M reporting date) 9 Par value of instrument N/A 10 Accounting classification Shareholder's Equity 11 Original date of issuance Perpetual or dated Perpetual 13 Original maturity date No Maturity 14 Issuer call subject to prior supervisory approval No 15 Optional call date, contingent call dates and redemption amount N/A 16 Subsequent call dates, if applicable N/A Coupons/dividends 17 Fixed or floating dividend/coupon N/A 18 Coupon rate and any related index N/A 19 Existence of a dividend stopper No 20 Fully discretionary, partially discretionary or mandatory Fully discretionary 21 Existence of step up or other incentive to redeem No 22 Noncumulative or cumulative Noncumulative 23 Convertible or nonconvertible Nonconvertible 24 If convertible, conversion trigger (s) N/A 25 If convertible, fully or partially N/A 26 If convertible, conversion rate N/A 27 If convertible, mandatory or optional conversion N/A 28 If convertible, specify instrument type convertible into N/A 29 If convertible, specify issuer of instrument it converts into N/A 30 Writedown feature No 31 If writedown, writedown trigger(s) N/A 32 If writedown, full or partial N/A 33 If writedown, permanent or temporary N/A 34 If temporary writedown, description of writeup mechanism N/A 35 Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) Ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any residual proceeds of liquidation 36 Noncompliant transitioned features No 37 If yes, specify noncompliant features N/A

8 Public Disclosure of Prudential Information Part 3 Table 3: Capital Adequacy Bank of China (Australia) Limited is using the post 1 (a) 2013 Dec ( 2013 Sep ( Capital requirements (in terms of riskweighted assets) for: Credit Risk Residential mortgage Other retail Corporate Bank Government Other risk assets Perfomancerelated Contingencies Loan commitment Market related derivatives Securitisation Capital requirements (in terms of riskweighted assets) for (b) equity exposures in the IRB approach (simple riskweighted method). Capital requirements (in terms of riskweighted assets) for (c) market risk. Capital requirements (in terms of riskweighted assets) for (d) operational risk. Capital requirements (in terms of riskweighted assets) for (e) interest rate risk in the banking book (IRRBB) (IRB/AMA (f) approved Asutralianowned ADIs only). Common Equity Tier 1, Tier 1 and Total Capital ratio for the consolidated banking group. Common Equity Tier 1 Ratio 19.7% 20.8% Tier 1 Ratio 19.7% 20.8% Total Capital Ratio 20.0% 21.1%

9 Public Disclosure of Prudential Information Part 3 Table 4: Credit Risk (a) 2013 Dec ( Credit Risk Exposure in 2013 Sep Average Balance for the ( Credit Risk ( Credit Risk Exposure in Exposure in Total gross credit exposures, plus average gross exposure Total gross credit risk exposures, broken down by Debt securities and Due from ADIs Loans Loan commitments Performancerelated contingencies Market related derivatives All other Total gross credit risk exposures, broken down by portfolio Claims secured by residential mortgage Other retail Corporate Banks and other ADIs Government All other (b) Amount of impaired facilities, provision and writeoffs, by portfolio Amount of impaired facilities, by portfolio Claims secured by residential mortgage Other retail Corporate Banks and other ADIs Government All other

10 Public Disclosure of Prudential Information Part 3 Table 4: Credit Risk (Continued) 2013 Dec ( Credit Risk Exposure in 2013 Sep Average Balance for the ( Credit Risk ( Credit Risk Exposure in Exposure in Amount of past due items, by portfolio Claims secured by residential mortgage Other retail Corporate Banks and other ADIs Government All other Amount of specific provision, by portfolio Claims secured by residential mortgage Other retail Corporate Banks and other ADIs Government All other Charges for specific provisions and writeoffs during the period Claims secured by residential mortgage Other retail Corporate Banks and other ADIs Government All other (c) General reserves for credit losses

11 Public Disclosure of Prudential Information Part 3 Table 5: Securitisation exposures The Bank had successfully completed a self securitisation for China Dragon Trust Series 20131R on 3 October The transaction is a securitisation of a portfolio of Australian prime loans backed by residential mortgage originated by the Bank. Total amount of mortgage transferred amounted to AUD million. The Bank holds notes issued by this Trust. This Trust is a special purpose entity consolidated by the Bank. Moody's Investors Service has assigned the following definitive longterm rating to notes issued by Perpetual Corporate Trust Limited in its capacity as trustee of the China Dragon Trust Series 20131R (Trust). The complete rating action is as follows: AUD 112 million of Class A Notes, rated Aaa The AUD 13 million Class B Notes are not rated. The self securitisation transaction is entered by the Bank for the purpose of generating extra contingency funding channel during liquidity crisis. (a) Securitisation activity of current period Exposure securitized Recognized gain(or loss) on (AUD million) sale 2013 Q Q Q Q3 Residential Mortgage Total exposure securitized during the period (b) Aggregate amount of exposures Funding facilities Credit enhancements Derivatives Basis swaps Total securitisation exposures 2013 Q Q3