Bendigo and Adelaide Bank : Pillar 3 capital disclosures

Investor enquiries

Karen McRae, Head of Investor Relations p 03 8414 7060 m 0417 186 500

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ASX Announcement

onlyBasel III Pillar 3 Disclosures: Prudential Standard APS 330

14 February 2022

useBendigo and Adelaide Bank Limited (ASX:BEN), is an Authorised Deposit-taking Institution (ADI) ubject to regulation by the Australian Prudential Regulation Authority (APRA). Attached is the

prudential information required to be disclosed in accordance with Prudential Standard APS 330.

The prudential disclosures have been prepared for Bendigo and Adelaide Bank Limited.

personalThe disclosures provided have been prepared as at 31 December 2021. Approved for release by: Bendigo and Adelaide Bank Board

ForMedia enquiries

James Frost, Head of Public Relations m 0419 867 219

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About Bendigo and Adelaide Bank Limited

Bendigo and Adelaide Bank is Australia's better big bank, with more than 7,000 staff helping our over 2 million customers to achieve their financial goals. Bendigo and Adelaide Bank's vision is to be Australia's bank of choice, by feeding into the prosperity of customers and their communities.

only

For personal eus

For personal use only

Table of Contents

Table 1	Common Disclosure Template	3
Table 1	Common Disclosure Template Reconciliation	7
Table 1	Entities Excluded from Level 2 Regulatory Consolidation Group	8
Table 2	Main Features of Capital Instruments	8
Table 3	Capital Adequacy	9
Table 4	Credit Risk	10
Table 5	Securitisation	11
Table 20	Liquidity Coverage Ratio	12
Table 21	Net Stable Funding Ratio	13
Appendix A	Main Features of Capital Instruments	15

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Bendigo and Adelaide Bank Limited, Basel III Pillar 3 Disclosures, 31 December 2021

Table 1 Common Disclosure Template

The Group is applying the Basel III regulatory adjustments in full as implemented by APRA. The capital disclosures detailed in the Common Disclosure template below represent the post 1 January 2018 Basel III common disclosure requirements.

For personal use only

Capital Ratios

Common Equity Tier 1

Tier 1

Total Capital

Common Equity Tier 1 capital: instruments and reserves

1. Directly issued qualifying ordinary shares (and equivalent for mutually-owned entities) capital
2. Retained earnings
3. Accumulated other comprehensive income (and other reserves)
4. Directly issued capital subject to phase out from CET1 (only applicable to mutually-owned 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

Common Equity Tier 1 capital : regulatory adjustments

1. Prudential valuation adjustments
2. Goodwill (net of related tax liability)
3. Other intangibles other than mortgage servicing rights (net of related tax liability)
4. Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)
5. Cash-flowhedge reserve
6. Shortfall of provisions to expected losses
7. Securitisation gain on sale (as set out in paragraph 562 of Basel II framework)
8. Gains and losses due to changes in own credit risk on fair valued liabilities
9. Defined benefit superannuation fund net assets
10. Investments in own shares (if not already netted off paid-in capital on reported balance sheet)
11. Reciprocal cross-holdings in common equity
12. 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)
13. Significant investments in the ordinary shares of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold)
14. Mortgage service rights (amount above 10% threshold)
15. Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
16. Amount exceeding the 15% threshold

31 December 2021
Basel III
%
9.85%
11.89%
13.98%
31 December 2021	Reconciliation
Basel III	Table
$m	Reference
5,184.7	a
932.5	e
54.1	f, p, q, r, s, x
N/A
N/A
6,171.3

N/A

1,526.7d

15.9g + h

0.0

35.7f

0.0

N/A

N/A

0.0c

N/A

N/A

N/A

N/A

N/A

N/A

N/A

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Bendigo and Adelaide Bank Limited, Basel III Pillar 3 Disclosures, 31 December 2021

Table 1 Common Disclosure Template Continued

31 December 2021	Reconciliation
Basel III	Table
$m	Reference

use only

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

26 National specific regulatory adjustments (sum of rows 26a, 26b, 26c, 26d, 26e, 26f, 26g, 26h, 26i and 26j)

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
26g	of which: investments in commercial (non-financial)
	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 non-consolidated
	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

N/A

N/A

N/A

603.9

N/A

N/A

N/A

47.5 v (less g)

162.6 t (less u)

370.5i to n

2.7	v
N/A
8.9	v
11.7	w
0.0

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28	Total regulatory adjustments to Common Equity Tier 1	2,182.2
29	Common Equity Tier 1 Capital (CET1)	3,989.1
Additional Tier 1 Capital: instruments
30	Directly issued qualifying Additional Tier 1 instruments	824.1	b
31	of which: classified as equity under applicable accounting
	standards	N/A
32	of which: classified as liabilities under applicable
	accounting standards	824.1
33	Directly issued capital instruments subject to phase out from
	Additional Tier 1	0.0
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)	N/A
35	of which: instruments issued by subsidiaries subject to
	phase out	N/A
36	Additional Tier 1 Capital before regulatory adjustments	824.1
Additional Tier 1 Capital: regulatory adjustments
37	Investments in own Additional Tier 1 instruments	N/A
38	Reciprocal cross-holdings in Additional Tier 1 instruments	N/A
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)	N/A

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