The rise continues. Mutuals Industry Review November Join the conversation

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1 The rise continues Mutuals Industry Review 2016 November 2016

2 Agenda 1 Introduction 2 KPMG Interactive Dashboard 3 Financial results 4 Changes for growth 5 Financial market observations 2

3 Introduction Presenter: Peter Russell

4 18 5 Mutual banks of which Converted in 2016 (2015: 2) Residential lending increased by 9.8% (2015: 7.9%) Net interest income grew 6.0% (2015: 3.9%) Non-interest income declined by 0.1% (2015: grew 3.3%) Branches decreased by 7 to 820 (2015: 827) Gross loans and receivables Increased by 9.5% (2015: 7.0%) Operating profit before tax increased 2.7% (2015: 2.9%) Impairment provisions decreased to 0.07% (2015: 0.08%) Deposits up 7.8% (2015: 7.6%) 7Mergers completed (2015: 3) 4

5 Introduction Mutuals performed very well in an environment of low economic growth, interest rates and inflation. Balance sheets strengthened, with asset growth of 7.8 percent. Profitability metrics increased, with profit before tax up 2.7 percent to $626 million. Capital levels decreased to 17.5% from 18.0%. Positive results in 2016 emerged on the back of More interaction with fintech startups Growth in lending portfolio Looking forward, we see this momentum will continue. Increased technology spend Continued strengthening of staff Opportunities to propel growth: Regulatory reform Innovation and digital differences Operational cost leverage Greater digital expansion Continued strong credit risk management 5

6 Introduction: Top 10 People s Choice $7.5bn Greater $5.7bn Bank Aus. $4.0bn P&N $3.8bn Beyond $4.8bn CUA $13.5bn Newcastle Permanent $9.8bn Teachers Mutual $5.5bn Heritage $8.4bn IMB $5.2bn 6

7 Introduction: Top 10 Top 10 Mutuals Total Assets $'000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - CUA Newcastle Permanent Heritage People's Choice Greater IMB Teachers Mutual Beyond Bank Aus P&N Top 10 Mutuals Operating Profit before Tax $ ,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - CUA Newcastle Permanent Heritage People's Choice Greater IMB Teachers Mutual Beyond Bank Aus P&N

8 Presenter: Zachary Kutlow

9 1. Industry landscape 9

10 1. Industry landscape Select a mutual Click on a fish each fish is a mutual 10

11 2. Pick a mutual, measure, and ratio 11

12 2. Pick a mutual, measure, and ratio Select a category of mutuals You can also define a peer group by selecting multiple individual mutuals 12

13 3. Pick a mutual and group of measures 13

14 3. Pick a mutual and group of measures 14

15 4. YoY changes in growth metrics 15

16 4. YoY changes in growth metrics Define a peer group by selecting multiple individual mutuals 16

17 5. YoY performance in key ratios 17

18 5. YoY performance in key ratios Define a peer group by selecting multiple individual mutuals 18

19 6. Growth in assets and members 19

20 6. Growth in assets and members 20

21 6. Growth in assets and members

22 KPMG PowerBI Dashboard 22

23 Financial Results Presenter: Peter Russell

24 Assets and asset quality Total assets increased by 7.8 percent (2015: 7.6 percent) whilst the major banks fell 2 percent (2015: 9.7 percent). Impairment provisions fell by 1.2 percent to $53 million (2015: $54 million). Size vs Growth in Total Assets 2016 Growth in Total Assets (%) 45% Impairment Provisions $ , % 35% 25% 15% 55,000 50, % 0.06% 0.04% 5% 45, % -5% - 5,000 10,000 15,000 Total Assets ($m) 40, % Top 10 Mutuals excluding top 10 Line of best fit Provision Provision as a % of Gross Receivables 24

25 Deposits Capital Growth in deposits Average Capital Adequacy Ratio 12% 10% 20% 18% 16% 8% 6% 14% 12% 10% 4% 8% 6% 2% 0% Top 10 Mutuals excluding top 10 4% APRA minimum capital requirement Major banks Top 10 Mutuals excluding top 10 Total deposits grew 7.8 percent (2015: 7.6 percent) Top 10 deposits increased 8.4 percent (2015: 8.1 percent). Composition of funding unchanged: 84 percent retail (2015: 84 percent) Average capital adequacy ratio for total mutuals decreased to 17.5 percent (2015: 18.0 percent). Top 10 decreased from 16.3 percent to 16.2 percent. Slight decrease by the mutuals indicates improved efficiency. 16 percent wholesale (2015: 16 percent) 25

26 Income Net interest income and net interest margin $ 000 1,400,000 1,200,000 1,000, , , , , Top 10 Mutuals excluding top 10 Net interest margin (%) 2.32% 2.27% 2.23% 2.18% 2.14% 2.09% 2.05% 2.00% Non-interest income $ , , , , , , , , , Top 10 Mutuals excluding top 10 Net interest income increased 6% 65 percent of net interest income was earned by the top 10. Net interest margin declined to 2.14 percent (2015: 2.18 percent). Non-interest income was down 0.1 percent increase from last year at $555 million 26

27 Costs Total operating expenses increased by 3.4 percent to $1,946 million (FY15: $1,883 million). Average cost to income ratio for all mutuals decreased to 74.8 percent (2015: 75.7 percent). Composition of costs Cost to Income Ratio 100% 49% Personnel 7% Occupancy 5% Dep n 80% 60% 40% 20% 7% Technology 31% Other 0% Major banks Top 10 Mutuals excluding top 10 27

28 Profits Total profit before tax for the sector was $626 million, up 2.7 percent. Top 10 grew 5 percent (2015: 3.5 percent). Size vs Growth in Operating Profit Before Tax 2016 Growth in Operating Profit After Tax (%) 400% Profit before tax $' ,000 % 4.0% 350% 300% 250% 200% 150% 100% 50% 0% -50% -100% -150% - 5,000 10,000 15,000 Total Assets ($m) 450, % 400, , % 300, % 250, , % 150, % 100,000 50, % % Top 10 Mutuals excluding Top 10 Growth in profit before tax 28

29 Z-Score Performance Assessment METRICS Member Growth (%) Capital Adequacy ratio (%) Cost to income ratio (%) Provision for doubtful debts (%) Deposit growth (%) Gross Loans and Advances growth (%) FINAL RANK 29

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31 Changes for growth The sector continues to be a source for productivity The 10% investment property lending growth cap has slowed loans to investors and held back growth opportunities. Residential investment lending in 2016 Growth at 10% All ADIs $500bn All ADIs $50bn Mutuals $20bn Other ADIs $480bn Mutuals $2bn Other ADIs $48bn 1% market share of total investor lending growth 31

32 Changes for growth Senate Inquiry into Co-operatives and Mutuals Report issued in March recommendations, 6 of which relate to Capital and Regulation, and we consider these to be key priorities Capital Currently, mutuals hold additional capital over regulatory minimums Holding capital levels consistent with larger competitors at ~13.5% would increase loans by ~$25 billion This would lead to $375m additional profits assuming a 1.5% spread 60% in profitability 25% increase in size Regulation Reducing regulatory burden aligned with government s public commitment to reducing red tape by $1bn each year Improving competition so all players have a fair-go, regardless of size 32

33 Changes for growth We see a number of quick wins that could be achieved with potential regulatory changes. Highlighting some of these ideas: 1. Simplifying regulatory rules, responsibilities and audit requirements 2. Allowing all ADIs to call themselves banks 3. Simplifying taxation arrangements 4. Allowing the strength of the sector to be analysed from a collective view 33

34 Presenter: Vic Jansen

35 Volatility in markets 2016 started with a slippery slide Do you remember how the Financial markets started this calendar year? Stock Markets China s Shanghai Index finished January 26% lower than December. In the US, the Dow and S&P500 were down 8.5% and 8.1% respectively. Meanwhile in Japan, the Nikkei slumped 12% Locally, the All Ords and ASX200 were down 6.8% and 7% respectively. Commodity Markets Oil has been a major driver for commodity markets, with a supply glut, Iran production back on line and low global growth all contributing to the price drops to commence the year and the volatility since. Most bulk and base metals were again under price pressure, with lower forecast demand, particularly from China, representing the major contributor to the price falls. As global stocks tumbled, precious metals gained friends, with Gold the standout performer rising rapidly in a risk aversion environment. Interest Rate Markets Australian Interest Rate Swap yields fell, with the 3yr some 0.25% lower in early Negative yields take hold globally, with approx. one third of global bonds in negative yields territory. Australian Corporate Credit markets widen in early 2016, due to equity market turbulence, however the flight to sovereign bond credit narrows spreads there. Foreign Exchange Markets The Australian Dollar has traded a five cent range against the US Dollar so far in 2016, as global influences take hold. The Japanese Yen has been jolted in both directions, following the shock BOJ actions in late January. The Great British Pound has been weaker, with uncertainty surrounding EU membership weighing. The Chinese Yuan has been under heavy pressure, with significant defence by the PBOC. Central Bank Actions European Central Bank (ECB) seeks to review stimulus measures in March, however in the meantime, ECB President Draghi reiterates a firm stance. Peoples Bank of China (PBOC) continued to add to currency market volatility with its daily Yuan fixings, attempting to curtail the impact of market forces by injecting extra liquidity in an attempt to combat capital flight. Bank of Japan (BOJ) adopts a negative interest rate stance, in a bold attempt to fight off deflation and slowing external demand. The US Federal Reserve, after a small rise to the Fed Funds rate, maintains a firm stance to the balance of 2016 with its monetary policy settings, albeit with no further changes in light of continuing soft inflation. 35

36 Approach taken to draw opinions Technical analysis approach: Comment During our analysis we have applied a number of generally available technical analysis tools, in conjunction with applying the overall experience of individuals within the KPMG Corporate Financial Risk Management team. Both Thompson Reuters and ICE SuperDerivatives data and tools have been utilised for the analysis, as part of our KPMG (FAS) subscription services with these service providers. There are numerous technical analysis approaches, methodologies and tools available with which to draw from, however we have maintained a consistent approach across all of the markets that are being discussed today. A combination of wave analysis, made popular by RN Elliott, in conjunction with retracement/extension analysis, commonly used although identified by the mathematician Fibonacci, as well as time period analysis, derived by some of the theory in work by WD Gann. Various other techniques including, but not limited to, noted patterns, such as double bottom, trend channels, resistance and support zones. Below are some links to freely available information, should you seek further information on any of these analysis components. Elliott Wave Principal Leonardo (Pisano) Fibonacci William Delbert Gann Technical Chart Patterns 36

37 Currency Long term price indicators

38 Australian Dollar v s US Dollar Source Thompson Reuters Australia The RBA lowers and maintains the official cash rate at an all time low of 1.50%. AUD completes a major cyclical 5 Wave down trend from 1974 through until 2002, which incorporates the 1983 floating of the AUD. A 5 Wave retracement ensues, taking AUD, post the GFC, through to , which was a major golden Fibonacci ratio (61.8%) retracement of the entire down trend. The AUD then began a new 5 Wave fall, stopping so far at , which has pierced the downward golden ratio by around 3 cents. 38

39 Australian Dollar v s US Dollar Australia The RBA lowers and maintains the official cash rate at an all time low of 1.50%. 2 AUD completes a major cyclical 5 Wave down trend from 1974 through until 2002, which incorporates the 1983 floating of the AUD. 1 4 A 5 Wave retracement ensues, taking AUD, post the GFC, through to , which was a major golden Fibonacci ratio (61.8%) retracement of the entire down trend. Source Thompson Reuters 3 5 The AUD then began a new 5 Wave fall, stopping so far at , which has pierced the downward golden ratio by around 3 cents. 39

40 Australian Dollar v s US Dollar Source Thompson Reuters % Retracement of down trend Australia The RBA lowers and maintains the official cash rate at an all time low of 1.50%. AUD completes a major cyclical 5 Wave down trend from 1974 through until 2002, which incorporates the 1983 floating of the AUD. A 5 Wave retracement ensues, taking AUD, post the GFC, through to , which was a major golden Fibonacci ratio (61.8%) retracement of the entire down trend. The AUD then began a new 5 Wave fall, stopping so far at , which has pierced the downward golden ratio by around 3 cents. 40

41 Australian Dollar v s US Dollar Australia The RBA lowers and maintains the official cash rate at an all time low of 1.50%. 2 AUD completes a major cyclical 5 Wave down trend from 1974 through until 2002, which incorporates the 1983 floating of the AUD A 5 Wave retracement ensues, taking AUD, post the GFC, through to , which was a major golden Fibonacci ratio (61.8%) retracement of the entire down trend. Source Thompson Reuters The AUD then began a new 5 Wave fall, stopping so far at , which has pierced the downward golden ratio by around 3 cents. 41

42 Australian Dollar v s US Dollar Source Thompson Reuters Potential Technically Forecast outcomes Following the current completion of the 5 Wave sequence at , the AUD begins a correction phase back towards or higher. Based on US Dollar Index read, the potential strength of the US Dollar may then turn the AUD lower, with the low becoming the end of Wave 3 (and not Wave 5 as currently marked) thus encouraging a further down leg in AUD to complete the trend from In either scenario on the Wave count, the favoured position is for AUD higher in the first instance. Australia The RBA lowers and maintains the official cash rate at an all time low of 1.50%. AUD completes a major cyclical 5 Wave down trend from 1974 through until 2002, which incorporates the 1983 floating of the AUD. A 5 Wave retracement ensues, taking AUD, post the GFC, through to , which was a major golden Fibonacci ratio (61.8%) retracement of the entire down trend. The AUD then began a new 5 Wave fall, stopping so far at , which has pierced the downward golden ratio by around 3 cents. 42

43 Volatility (Credit) Itraxx update Have we seen a turn on global benchmark bond yields in 2016?

44 Credit Spreads Itraxx Update Source Thompson Reuters Credit Increasing risk sentiment, as global outlook weighs and stock indices tumble in early Credit spreads spiked dramatically as the onset of the GFC loomed, following a long hibernation period prior. A 5 Wave sequence is easily observed from late 2007 through until An initial 5 Wave correction into 2010 before what appears to be a broader A, B, C correction from 2010 currently. The B Wave completes in a double bottom formation at 80bp before moving higher. A smaller rising trend within Wave C follows, so far reaching the Fibonacci golden ratio 61.8% of the earlier down move. 44

45 Credit Spreads Itraxx Update 3 5 Credit Increasing risk sentiment, as global outlook weighs and stock indices tumble in early Source Thompson Reuters Credit spreads spiked dramatically as the onset of the GFC loomed, following a long hibernation period prior. A 5 Wave sequence is easily observed from late 2007 through until An initial 5 Wave correction into 2010 before what appears to be a broader A, B, C correction from 2010 currently. The B Wave completes in a double bottom formation at 80bp before moving higher. A smaller rising trend within Wave C follows, so far reaching the Fibonacci golden ratio 61.8% of the earlier down move. 45

46 Credit Spreads Itraxx Update Credit Increasing risk sentiment, as global outlook weighs and stock indices tumble in early A C? Credit spreads spiked dramatically as the onset of the GFC loomed, following a long hibernation period prior. A 5 Wave sequence is easily observed from late 2007 through until Source Thompson Reuters Double bottom noted at 80bp B An initial 5 Wave correction into 2010 before what appears to be a broader A, B, C correction from 2010 currently. The B Wave completes in a double bottom formation at 80bp before moving higher. A smaller rising trend within Wave C follows, so far reaching the Fibonacci golden ratio 61.8% of the earlier down move. 46

47 Credit Spreads Itraxx Update Source Thompson Reuters 61.% Retracement Credit Increasing risk sentiment, as global outlook weighs and stock indices tumble in early Credit spreads spiked dramatically as the onset of the GFC loomed, following a long hibernation period prior. A 5 Wave sequence is easily observed from late 2007 through until An initial 5 Wave correction into 2010 before what appears to be a broader A, B, C correction from 2010 currently. The B Wave completes in a double bottom formation at 80bp before moving higher. A smaller rising trend within Wave C follows, so far reaching the Fibonacci golden ratio 61.8% of the earlier down move. 47

48 Credit Spreads Itraxx Update Source Thompson Reuters Potential Technically Forecast outcomes With the initial retracement target of 169bp met (from the B Wave down), a short period of consolidation lower may ensue. Once this consolidation phase finishes, a break higher is favoured to complete the A, B, C formation. Potential target zone for the Wave C completion lies in the bp window. Credit Increasing risk sentiment, as global outlook weighs and stock indices tumble in early Credit spreads spiked dramatically as the onset of the GFC loomed, following a long hibernation period prior. A 5 Wave sequence is easily observed from late 2007 through until An initial 5 Wave correction into 2010 before what appears to be a broader A, B, C correction from 2010 currently. The B Wave completes in a double bottom formation at 80bp before moving higher. A smaller rising trend within Wave C follows, so far reaching the Fibonacci golden ratio 61.8% of the earlier down move. 48

49 Benchmark Government Bond Yields: Have we seen the turn in 2016? Source ICE Superderivatives Consistent Technical Themes Nearly all Benchmark Bonds corrected in an A, B, C Elliott wave correction in Mid 2015, before again turning lower. A 5 Wave down in yields was the favoured view in early 2016, with all Benchmark yields having pushed to new lows in August 2016 on that basis. We appeared to be in the Wave 3 s (of the Wave 5 s sequences), so we did see an up move stage into May for the Wave 4 s, before a final push lower. 49

50 Benchmark Government Bond Yields: Have we seen the turn in 2016? Source ICE Superderivatives Consistent Technical Themes Following the recently viewed completion of the Wave 5 downtrend across nearly all Benchmark Bonds, a significant shift may be noted. All Benchmark Bonds moved back into positive yields. Is this the early stages of bull run in yields? 50

51 Benchmark Government Bond Yields: Have we seen the turn in 2016? Source ICE Superderivatives 3 5 Consistent Technical Themes Following the recently viewed completion of the Wave 5 downtrend across nearly all Benchmark Bonds, a significant shift may be noted. All Benchmark Bonds moved back into positive yields. Is this the early stages of a bull run in yields? 51

52 The US Dow A long & winding road Does history teach us anything?

53 The US Dow a long & winding road Source Thompson Reuters Dow Jones Increasing risk sentiment, as global outlook weighs and stock indices tumble in early 2016, before the Dow posts a new high. With one of the longest data sets available we have the opportunity to view major wave sequences over 116 years. Two major 5 Wave multi decade trends may be noted into 2008 prior to the GFC, which also included the 1929 crash and subsequent Great Depression. The GFC produced a sharp freefall, a little lower than 50% retracement of the entire 75 year 5 wave trend. A new Wave 5 is currently well advanced since commencing in 2008, with the early 2016 falls confirming the Wave 4. A new high has been achieved, although the Wave 5 is not yet confirmed as in place. 53

54 The US Dow a long & winding road Dow Jones Source Thompson Reuters 3 5 Increasing risk sentiment, as global outlook weighs and stock indices tumble in early 2016, before the Dow posts a new high. With one of the longest data sets available we have the opportunity to view major wave sequences over 116 years. 4 Two major 5 Wave multi decade trends may be noted into 2008 prior to the GFC, which also included the 1929 crash and subsequent Great Depression The GFC produced a sharp freefall, a little lower than 50% retracement of the entire 75 year 5 wave trend. A new Wave 5 is currently well advanced since commencing in 2008, with the early 2016 falls confirming the Wave 4. A new high has been achieved, although the Wave 5 is not yet confirmed as in place. 54

55 The US Dow a long & winding road Source Thompson Reuters 50% Retracement Dow Jones Increasing risk sentiment, as global outlook weighs and stock indices tumble in early 2016, before the Dow posts a new high. With one of the longest data sets available we have the opportunity to view major wave sequences over 116 years. Two major 5 Wave multi decade trends may be noted into 2008 prior to the GFC, which also included the 1929 crash and subsequent Great Depression. The GFC produced a sharp freefall, a little lower than 50% retracement of the entire 75 year 5 wave trend. A new Wave 5 is currently well advanced since commencing in 2008, with the early 2016 falls confirming the Wave 4. A new high has been achieved, although the Wave 5 is not yet confirmed as in place. 55

56 The US Dow a long & winding road Source Thompson Reuters Dow Jones Increasing risk sentiment, as global outlook weighs and stock indices tumble in early 2016, before the Dow posts a new high. With one of the longest data sets available we have the opportunity to view major wave sequences over 116 years. Two major 5 Wave multi decade trends may be noted into 2008 prior to the GFC, which also included the 1929 crash and subsequent Great Depression. The GFC produced a sharp freefall, a little lower than 50% retracement of the entire 75 year 5 wave trend. A new Wave 5 is currently well advanced since commencing in 2008, with the early 2016 falls confirming the Wave 4. A new high has been achieved, although the Wave 5 is not yet confirmed as in place. 56

57 The US Dow a long & winding road Source Thompson Reuters Potential Technically Forecast outcomes The Dow Jones appears in the latter stages of its multi decade bull run. Given the long time frame to complete thus far, there may be quite some time to fully develop the final stage. Standing back, a larger Wave 5 in totality may be observed, Wave s-1929, Wave 2 Great Depression, Wave , Wave 4 GFC, Wave Current (with 3 of 5 inside waves having already completed). A potential scenario, whereby the Dow corrects lower initially before attempting to make a new final high is starting to shape up. Volatility is anticipated to heat up during this final phase of this long 120 year cycle. Dow Jones Increasing risk sentiment, as global outlook weighs and stock indices tumble in early 2016, before the Dow posts a new high. With one of the longest data sets available we have the opportunity to view major wave sequences over 116 years. Two major 5 Wave multi decade trends may be noted into 2008 prior to the GFC, which also included the 1929 crash and subsequent Great Depression. The GFC produced a sharp freefall, a little lower than 50% retracement of the entire 75 year 5 wave trend. A new Wave 5 is currently well advanced since commencing in 2008, with the early 2016 falls confirming the Wave 4. A new high has been achieved, although the Wave 5 is not yet confirmed as in place. 57

58 Does history teach us anything? Dow Jones With the benefit of modern analysis tools we can dive deeper into the study of the times, and whilst on a long chart the 1920 s appear insignificant, this time period snapshot highlights some interesting observations. The roaring 20 s gave us an early glimpse of a major bull market in stocks, with the Dow rising some 500+% from , a mere 7 years. Following the crash of 1929, the Dow eventually settled back at the level from 1904, nearly 30 years early. The speed at which the fall occurred ie. 3 years tipped global economies. Following the Great Depression and World War 2, The Dow took until the mid-1950 s to retrace the market high put in place back in This timeframe also marked the start of the baby boom. 58

59 Does history teach us anything? Dow Jones 5 With the benefit of modern analysis tools we can dive deeper into the study of the times, and whilst on a long chart the 1920 s appear insignificant, this time period snapshot highlights some interesting observations The roaring 20 s gave us an early glimpse of a major bull market in stocks, with the Dow rising some 500+% from , a mere 7 years. Following the crash of 1929, the Dow eventually settled back at the level from 1904, nearly 30 years early. The speed at which the fall occurred ie. 3 years tipped global economies. Following the Great Depression and World War 2, The Dow took until the mid-1950 s to retrace the market high put in place back in This timeframe also marked the start of the baby boom. 59

60 Does history teach us anything? Dow Jones With the benefit of modern analysis tools we can dive deeper into the study of the times, and whilst on a long chart the 1920 s appear insignificant, this time period snapshot highlights some interesting observations. The roaring 20 s gave us an early glimpse of a major bull market in stocks, with the Dow rising some 500+% from , a mere 7 years. Following the crash of 1929, the Dow eventually settled back at the level from 1904, nearly 30 years early. The speed at which the fall occurred ie. 3 years tipped global economies. Following the Great Depression and World War 2, The Dow took until the mid-1950 s to retrace the market high put in place back in This timeframe also marked the start of the baby boom. 60

61 Does history teach us anything? Dow Jones With the benefit of modern analysis tools we can dive deeper into the study of the times, and whilst on a long chart the 1920 s appear insignificant, this time period snapshot highlights some interesting observations. The roaring 20 s gave us an early glimpse of a major bull market in stocks, with the Dow rising some 500+% from , a mere 7 years. Following the crash of 1929, the Dow eventually settled back at the level from 1904, nearly 30 years early. The speed at which the fall occurred ie. 3 years tipped global economies. Following the Great Depression and World War 2, The Dow took until the mid-1950 s to retrace the market high put in place back in This timeframe also marked the start of the baby boom. 61

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63 Presenters: Peter Russell Zachary Kutlow Vic Jansen Please contact the KPMG Mutuals Survey mailbox at Please remember to enable macros when using the dashboard.

64 Peter Russell Partner, Audit and Assurance Financial Services KPMG Vic Jansen Associate Director, Advisory Corporate Financial Risk Management KPMG kpmg.com.au 2016 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including, if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).