APS 330 Public Disclosure
Capital adequacy and credit risk exposure
as at 31 December 2015
Credit Union SA Ltd
ABN 36 087 651 232
AFSL/Australian
Credit Licence Number
241066
1. Capital Adequacy
The Credit Union's lead regulator, APRA, sets and monitors minimum capital requirements based
on an Internal Capital Adequacy Assessment Process (ICAAP) prepared by the Credit Union, which
sets a targeted capital range based on risk analysis and capital allocation for identified risk
categories.
In implementing current capital requirements, APRA requires the Credit Union to maintain a
prescribed capital adequacy ratio. The Credit Union has complied with all APRA capital adequacy
requirements throughout the period.
The Credit Union maintains capital through the appropriation of retained earnings to general
reserves. No other capital instruments are utilised.
The Credit Union has adopted a standardised approach to the calculation of the capital adequacy
ratio in accordance with the Basel III capital framework.
There have been no material changes in the Credit Union's management of capital during the
period.
1.1
Capital
Common Equity Tier 1 Capital
Retained and current year's earnings
Other reserves
Common Equity Tier 1 capital before regulatory adjustments
Common Equity Tier 1 Capital : regulatory adjustments
$'000
87,927
474
88,401
Goodwill and Other Intangibles
Deferred Tax Assets arising from temporary differences
Investment in banking and financial entities
Equity investments in commercial entities
(894)
(730)
(1,661)
(3,644)
Total regulatory adjustments to Common Equity Tier 1 Capital
Total Common Equity Tier 1 Capital
(6,929)
81,472
Tier 2 Capital: instruments and provisions
Redeemed Preference Share Capital
General Reserve for Credit Losses
48
666
Total Tier 2 Capital
714
Total Capital
82,186
The Credit Union is using the post 1 January 2018 common disclosure template because it is fully
applying the Basel III regulation adjustments as implemented by APRA.
1.2
Reconciliation of Regulatory Capital
$'000
Equity
89,401
(952)
(48)
General Reserves for Credit Losses (inclusive of deferred tax asset)
Redeemed members shares
Common Equity Tier 1 capital before regulatory adjustments
88,401
(6,929)
Regulatory adjustments to Common Equity Tier 1 Capital
Total Common Equity Tier 1 Capital
Total Tier 2 Capital
81,472
Total Capital
82,186
1.3
Capital Requirements
Credit Risk
loans and advances secured by mortgages
other loans and advances
external liquid deposits
off balance sheet exposures
Cash
Other assets
Credit Risk Weighted Exposure
Operational Risk Weighted Exposure
Total Risk Weighted Exposure
1.4
714
Total
Exposure
$'000
Risk Weighted
Exposure
$'000
660,809
46,310
198,443
15,918
3,581
3,660
237,322
46,310
75,087
5,984
538
3,660
928,721
368,901
49,869
418,770
Capital Adequacy Ratios
Common Equity Tier 1 Ratio
19.46%
Total Capital Ratio
19.63%
2. Credit Risk Exposure
Individual
Provision
Charge for
Individual
Provisions and
Write-offs
for the Period
General
Reserve for
Credit
Losses
$'000
$'000
$'000
$'000
154
510
11
144
146
-
689,449
154
521
144
146
952
198,443
202,463
-
-
-
-
-
3,581
4,487
-
-
-
-
-
3,660
3,693
-
-
-
-
-
15,918
16,248
-
-
-
-
-
916,340
154
521
144
146
952
Gross Credit
Risk at
September
2015
Quarterly
Average Gross
Exposure
Amount
Impaired
Amount Past
Due 90 days
$'000
$'000
$'000
Loans and Advances to Members
Loans and advances secured by mortgages
Other loans and advances
660,809
46,310
643,236
46,213
Total Loans and Advances to Members
707,119
External Liquid Deposits
Cash
Other Assets
Off Balance Sheet Exposures
Total Credit Risk Exposure
928,721