Annual Report 2016 –17 Sonya & Michael – Lennox Head Front cover: Top to bottom Row 1: Lori & Michael – Hope Island Row 2: Paige – Charlestown Row 3: Farnhams Butchery – Wallsend & Fletcher Row 4: Alex – Singleton Row 5: Sonya & Michael – Lennox Head Chairman and CEO’s Report 04

Our Community 08

Greater Charitable Foundation 12

Financial Statements 30 June 2017 16 Annual Report | 2016–17 4 sustainable business. and continue to grow a strong, stable and ourwe service and customers better support to ensure change for aroadmap established provider –wehave services financial focused organisation – a customer-owned and same wefundamentally the remain While strategic for Change’. plan – the ‘Blueprint to roll outour as months wecontinue past 12 over the Bank at Greater has changed Much Chairman CEO and experience plus adds productivity improvements. productivity adds plus experience customer the enhances that aprocess Simple’: ‘Lending and service, concierge awebchat including developments, several operationalise now and refine test, to us allowed has This platforms. business-as-usual our to environments parallel in run are that activities learn’ and ‘test of aseries developed wehave this Through customers. our of needs evolving to the insights to obtain us enables it fintechs, various with undertaken research broader with together groups, insight customer our from by feedback Driven improvement. business and to innovation approach strategic our Incubator, Innovation the through born was platform digital assisted an for idea The process. the through channel physical to a migrate or to aperson out to reach customers allows that platform digital assisted an to develop us led has That space. digital the in assistance seek customers more that werecognise this, of part As solution as quickly as possible. a reaching of view the with it need they where choice of channel to their access have customers our We to ensure want business. the for priority ahigh been have reach multi-channel delivering to aview with channels key distribution our across processes and capability structural to our Changes people. committed and knowledgeable as well as systems, business efficient and robust through competitively priced products can only be delivered Providing outstanding customer service, and quality, Strengthen Business Capabilities plan. strategic our against delivering weare how Year and 2017 the Financial across achievements our of asnapshot provides report This ’ s Report

base, and also countering our competitive threats. competitive our countering also and base, customer informed better and growing our of needs the essential to our strategic supporting ambitions, meeting is culture a performance-based Driving change. the to undertake equipped well also but of aware only not are all to ensure process, the through people our to support undertaken been has work Significant success. ongoing to our critical again is that of With change comes cultural shift and the management and attentive employees. knowledgeable just than more requires However, this customers. new attracting as well as existing to retaining Providing customers with outstanding service is critical 250,000. approximately of base acustomer off coming increase a significant Year; 2017 the for Financial customers new 20,000 than more in resulted has strategy growth Our dreams. their realise customers helping weare how shows and stories customer real on 2017, May in It’, ‘We Did launched centres campaign, the of incarnation recent most The markets. target chosen our eyesof the in relevant weremain ensuring on focused campaign to acontinuous evolved has This Bank. to Greater name our changing with started which brand, our of repositioning the been has this of Part choice. of provider service financial their from require customers our processes and technology experience, the by delivering customers our with relationship of depth our strengthening are we so doing In phase. growth to acustomer focus our shifting now weare business, the in success to measure fundamental remain growth portfolio and asset While Sustainably our Grow Customer Base Roger Cracknell, Scott Robinson; Back: Russell Ware Russell Back: Robinson; Scott Cracknell, Roger LtoR: Middle Russell; Wayne Drinkwater, Jayne McDonald, Malcolm LtoR: Front Members, Board Bank Greater Above: CEO Morgan, Scott Chairman; Russell, Wayne page: Opposite customers. our of needs evolving the to meet capabilities delivering on emphasis an with business, the in investment ongoing our reflects and expectations with line in was tax after million $28.6 of result profit group Our business. the of efficiency operational and management strength, the of reflective is which results, financial strong posted wehave this Against period. reporting the for backdrop achallenging provided Macroeconomic and competitive conditions have Efficiency Organisational Improve standard. highest the of are touchpoints these that and it need they where and when services and to products access with customers weprovide to ensure undertaking weare improvement continued and staff our of efforts dedicated to the testament is category this in success ongoing Our 95%. Year averaging 2017 the for Financial ratings with ratings, satisfaction customer highest the achieved wehave that year consecutive fourth the is This Awards. Satisfaction Customer Roy Morgan the in Year winner the of Bank named wewere when recognised again were service customer strong of foundations Our improvements. year’s this of some are capabilities opening account integrated improved, and management enquiry lending better valuations, Electronic purpose. for fit and competitive are products our ensure to pricing and features to review We continue

indicator of our financial strength and security. and strength financial our of indicator aclear is position, asset strong our with along This, Australia. in institutions deposit-taking authorised other many of that and requirements prudential our above 17.2% of well Adequacy remains Capital Our to lend. which from base astrong have we to ensure continues and result year’s previous the on up 9.4% of also was growth Total deposit $1.2 topped billion. year the for approved loans net Our products. loan our of pricing and quality the also but Illawarra, the and Newcastle of key markets our in particularly environment, economic current the of reflective are results These Year. 20145.1% 1% the Financial 2016 in just in and to compares 7.7% was which growth Lending year. previous the billion $5.7 from up billion, to $6.3 2017 June grew 30 ending year the for assets total Our for three months. almost increase the wedeferred as borrowers existing for term short the in absorbed further was cost This responsibilities. regulatory our meeting we were to ensure and funding loan of costs increasing to the cover necessary became which year, the in late rates however, interest move on We did, Year. Financial the across increases rate interest decided against conducting multiple out-of-cycle we lenders, major the of actions to the Contrary

Annual Report | 2016–17 5 Annual Report | 2016–17 6 Marie Hanson-Kentwell, Bruce White and Bob Moffat Bob and White Bruce Hanson-Kentwell, Marie King, Michael Morgan, Scott Brokate, Emma Newham, Craig LtoR: Committee Executive Bank Greater to fair and responsible banking. commitment industry by an covered are they knowing of confidence the customers our gives code This Practice. of Code their with comply and Association Banking Owned Customer the amember also We are issues. of escalation appropriate facilitate lines reporting Independent appetite. risk to our relative profile risk our of oversight and risk of management weensure team, Executive the and Committees its Board, the Through framework. this of part important an is obligations compliance other and regulatory our Meeting business. the within risks emerging and current the manage and analyse to identify, us allows framework The policies. all into explicitly incorporated are Framework Management Risk and structure defence of lines three Our appetite. risk our within to operate continue we to ensure Framework Management Risk robust and established our wemaintain that imperative is it strategy, technology our delivering In profile. risk our changes also it However needs. to customer adapt to quickly us allows fintechs) as (such providers external from sourced is which of some technology, evolving Rapidly rewarded. and encouraged are behaviours management risk how as well as capabilities, and risk of understanding athorough have staff our of all that imperative is It culture. risk a sound is there to ensure business to the communicated and operationalised is which appetite, risk our sets Board The operations. our of areas all across oversights and decision-making risk-based by employing out carried is This business. the of performance sound long-term, the to maintain and customers our of interests best the to ensure designed is Framework Management Risk Our management of and risk regulation. effective as well as governance corporate of standards committed to achieving and demonstrating the highest are Committee Executive and Board Bank Greater The Change Risk and Regulatory Proactively Manage environmental benefits. and social economic, by delivering stakeholders our all of development sustainable to the contributing to commitment our is Responsibility Social Corporate Responsibility (CSR) Commit to Corporate Social

that support us. support that communities the to support doing weare work the into insight agreater to gain report this of section Community’ ‘Our the to read you We encourage Illawarra. to the Coast Gold the from operation, of area our across groups, community grassroots of support to the through properties commercial major from partnerships, of a range Additionally, supported our portfolio sponsorship operate. they which in communities the and families of lives to the difference areal making are foundation to provide grants to many charities that the to allow annually $1 million than more invested has Board 2011, in Bank Greater the Established Foundation. Charitable Greater the through is support to community contributor greatest Our weoperate. which in communities the support and to foster and services, and products value better to provide business our into reinvested are Profits shareholders. have not does that bank empowered acustomer to be mission our supports structure bank community Our Looking Ahead Looking will do so again in the 2018 Financial Year. 2018 Financial the in again so do will focus continued an with and results great achieved already wehave Together, Change. for Blueprint our to employee every of commitment and work hard the as well as Committee, Executive and Board the acknowledge the contribution and dedication of and thank to sincerely like wewould Finally, decision. business every of heart the at remain customers our that ensuring is to this Essential markets. key target our through business new driving for ameans as focus agreater be will growth Customer these expectations. on deliver will procedures and processes our refining and Incubator, Innovation the through capabilities fintechs, developing technological our in-house with Engaging customers. our of expectations and needs future the on deliver better that improvements technology and process to develop continue We will coming Financial Year. the in so to do continue will and far so change significant driven has plan strategic Our succeed. and to grow to continue abusiness for imperative but inevitable just not is evolution and Change Chairman Wayne Russell

CEO Morgan Scott

CEO Morgan Scott

Annual Report | 2016–17 7 Annual Report | 2016–17 8 Greater Bank is a proud community partner of the Newcastle Jets Newcastle the of partner community aproud is Bank Greater match. to the free for travel play team to their watch to afford unable were who fans Jets by helping community the with connect again to Bank Greater for opportunity agreat was January in Harbour Coffs in City Melbourne against A match heroes. sporting their from skills to learn footballers young aspiring 1,200 than more for opportunity the provided Cessnock, and Terrace Raymond Morisset, Singleton, Tamworth, Muswellbrook, in held and squad A-League full by the hosted series, clinic coaching Play Jets the addition, In Gunnedah. and Armidale Tamworth, Muswellbrook, in conducted visits school and clinics community as well as matches, trial saw NSW regional of Tour Jets pre-season The community events and activities. of aseries in to participate staff, Bank Greater as well as staff, coaching and players Jets’ the for platform the provided has that program Connect Jets the supported wehave year second the is It NSW. Northern as well as Hunter, the across communities with to engage Jets Newcastle the with closely to work continued has Bank Greater Partner, Community club’s Major A-League the As NEWCASTLE JETS Year. Financial 2017 the in wesupported partnerships community and programs major the of asnapshot is Here CommunityOur Partnerships carers. unpaid and hospital in children ill seriously youth, disadvantaged by cancer, impacted people programs, youth Indigenous services, health mental to support projects of range adiverse developed have that partners charity additional to eight allocated $1 saw million Round 2016 Funding Foundation’s The weserve. that communities and lives the to enrich aimed that operation of area our across partnerships area 31 local a further and partnerships major nine on focused portfolio Year, sponsorship our 2017 the Financial During Foundation. Charitable Greater the and portfolio our commercial and community sponsorship streams: two via delivered is commitment This We have this commitment made to our customers through our strategic community and planning. us. communities the that support we are committed to bank, supporting acustomer-owned As CommunityOur

The Greater Bank Fun Run Series also saw events held in: held events saw also Series Run Fun Bank Greater The region’s calendar. running the event on iconic an become has what for line start to the taking people 1,000 almost with Bank, Greater event for 15 ashowcase was Fernleigh Newcastle’s series. the in part take and active, up, be to get entrants, time to first through athletes elite from people, 5,000 than more encouraged and state 11 the across events to host played Series Run Fun Bank 2016The Greater NSW RUN day. the on place took that activities decorating cookie and $1,721.95 raffle raise the through to OzHarvest helped also Bank Greater Wanderers. Sydney Western against match 25 Round to the food non-perishable of acan along to bring encouraged members and fans with sponsorship day match the through donated was food of kilograms 93 incredible An need. in those to food to deliver aday for along went they when van delivery food OzHarvest the first-hand experiencing as well as match, to the up lead the in program cooking (Nutrition, Education, Sustenance Training) community NEST OzHarvest the in participated players Jets OzHarvest. partner Foundation Charitable Greater of awareness to raise helped Bank by Greater sponsored Stadium Jones McDonald at Round Community Jets The walked, wheeled, ran or jogged for a total of 5km. of atotal for jogged or ran wheeled, walked, then and wearable; or app tracking aGPS synching by level ability or location age, their of regardless participated 11 10 of People and weekend December. the over held run” “fun aone-of-a-kind in involved get to opportunity the NSW across from people gave which race, digital 5km first the was series the of part Also Wollongong Sydney Raymond Terrace Parkes Nowra Goulburn Dubbo Casino Armidale

Annual Report | 2016–17 9 10 Annual Report | 2016–17 In Hand, is a non-profit organisation established as a a as established organisation anon-profit is Hand, In event, Hand the conducted that house art local The evening. final the on a“classic” as well as drama, and of varied genres, including comedy, romantic comedy, films Italian contemporary seven event screened the November, in Held Festival. Film Italian Newcastle the of sponsor major the again was Bank Greater FESTIVAL ITALIAN FILM for the hospital’s children’s ward. children’s hospital’s the for machine BP apaediatric to purchase used was which customers, Rivers Northern Bank’s Greater of behalf on Kids to Our $5,000 donated we also children, the for presents 250 than more with Along children. sick these for present asuitable by donating cheer some to bring them with to join community wider the and customers their encouraged Casino and Ballina Lismore, in staff Our period. festive the over Hospital Base Lismore in were who teenagers and children to the experience Christmas a greater 2016 in to bring Kids Our with partnered Bank Greater LISMORE KIDS OUR

Association NSW. Association Disease Neurone Motor for $13,500 to raise them allowed year this festival the of support Our charities. worthwhile of arange for funds and awareness raise to help formed also was organisation the Importantly, hub. vibrant and diverse aculturally as region contribute to promoting Newcastle and the wider that events and festivals diverse to organise vehicle support the immediate community in which they live. they which in community immediate the support to helps way some in that organisations small to their improvements to make funding the to receive like would they to vote who on community the allows program The organisations that contribute to a greater Armidale. community local to 30 donated been had $50,000 Year, of atotal 2016 the of Financial end to the Up 2016. September in centre region England New the in introduced was program funding community Armidale Greater The PROGRAM FUNDING COMMUNITY ARMIDALE

our support in the 2017 Financial Year included: 2017 the in Financial support our Other community organisations that received Community Major Other Support productive lives. productive more and happier lead and ajob to find them assists employment, for participants program prepares team BackTrack the youth, of outcomes overall the improve Based on the ideal that community can participation training. and education with to reconnect community the in way their lost have who region England New NSW the in people young assists and aids BackTrack PROGRAM BACKTRACK 9 netball associations across regional NSW regional across associations 9netball program netball Sport of Academy Hunter program netball Sport of Academy Coast Central Wallsend Winter Fair Winter Wallsend Beaumont St Carnivale Academy Rugby GRAA8 Stars the Under Christmas Mingara

‘Our Kids’ Lismore paediatric BP machine donation; donation; machine BP paediatric Lismore Kids’ ‘Our shortages in the region. the in shortages skills agricultural and trade growing the addresses and creating job in opportunities regional communities Lads Ag to rollout BackTrack enabled has support financial Our Tournament; Armidale BackTrack visit; HAS Netball Program Netball HAS visit; BackTrack Armidale Tournament; Christmas Gift Giving Program; Jets Tour; Armidale Community Community Armidale Tour; Jets Program; Giving Gift Christmas Second row, left to right: Fernleigh 15; ‘Our Kids’ Lismore Lismore Kids’ 15; ‘Our Fernleigh toright: row, left Second Funding Program; Funding Community program; Armidale 15 winners; Fernleigh Festival; Film Italian toright: row, left First HAS Netball Tournament Netball HAS Netball HAS tournament; Netball Sport of Academy Hunter : an innovative, industry-led program that is is that program industry-led innovative, : an

11 Annual Report | 2016–17 25,000 Greater Charitable since Foundation beneficiaries establishment Formed in 2011, the Greater Charitable Foundation aims to improve the life outcomes $6 million of families and communities throughout NSW and South-East Queensland. We achieve this in funding over by supporting Australian-based charities undertaking practical, life-changing initiatives 6 years within Greater Bank’s areas of operation. of operations Since establishment, we have now provided $6 million in funding to support 21 charitable 200 organisations. This has provided a direct benefit Greater Bank to more than 25,000 people. volunteers = In July 2016 we celebrated our fifth year of giving with a milestone event at Newcastle’s Civic Park. An installation of 3,000 pin wheels spelt out the word 1,000 hours ‘Change’. This symbolised what we have achieved over the past five years and reinforces our ongoing charitable mission to ‘improve life outcomes’. organisations Following is an overview of 12 charitable partners and 12 the projects we supported over the last Financial Year: BEYONDBLUE Program: Phase II of the Friends and Family Support Program (FFSP) Investment: $50,000 The first three months following a suicide attempt are critical in a person’s recovery as they are at a higher risk of a further attempt. This program developed by beyondblue and funded by the Greater Charitable Foundation, aims to positively impact the life of the person who has attempted suicide, and also equip their family and friends with the tools to understand and manage their feelings of helplessness and grief in the aftermath of the suicide attempt.

SIR DAVID MARTIN FOUNDATION Program: Creative Arts and Vocational Education (CAVE) Program Investment: $57,000 The Creative Arts and Vocational Education (CAVE) Program based at Triple Care Farm (TCF) – an award- winning drug and alcohol rehabilitation facility in the Southern Highlands of NSW – adopts innovative methods to assist students in overcoming their mental health and addiction disorders. Participants engage in music, art and film-making to improve their mental wellbeing, and assist in securing employment prospects beyond the program. experiencing a serious illness. illness. aserious experiencing teenagers for exclusively designed are Zine Livewire nationwide the and workshops in-hospital Livewire The areas. these in hospitalised or in living families support Room, Express Starlight (Newcastle) Hospital Children’s Hunter John the at programs in-hospital and visits Queensland.South-East Starlight Connection Ward and NSW regional in families their and children ill to seriously support much-needed their of expansion the enabled has Foundation Children’s Starlight of funding Foundation’s Charitable Greater The Investment: $150,000 programs Livewire and Connection Starlight Program: STARLIGHT CHILDREN’S FOUNDATION AUSTRALIA weeks. to six one from anywhere staying retreat, respite the from benefited have families 100 than 2012, in more opened House Harry’s Since years. two past the within to cancer child their of loss the grieving those as well as Hunter, the in treatment cancer undergoing achild have that families for home’ from away a‘home provides House Harry’s Stockton, of village beachside Newcastle the in Located Investment: $50,000 House Harry’s Program: FOUNDATION MEYN HARRY patients. cancer breast of hundreds of lives the impacted positively has which region, Newcastle the in Nurse Care Breast asecond employ to Foundation McGrath the enabled has funding year two- Foundation’s Charitable Greater met. The are needs emotional and psychological physical, their ensuring and care, coordinating advocates, patient as by acting cancer breast with diagnosed people for outcomes improving in essential are Nurses Care Breast Investment: $117,000 region Newcastle the for Nurse Care Breast Program: FOUNDATION MCGRATH Greater Bank Staff with Starlight Captains, Lismore Base Hospital Hospital Base Lismore Captains, Starlight with Staff Bank Greater

AUTISM SPECTRUM AUSTRALIA SPECTRUM AUTISM 5 Years of Change event Civic Park, Newcastle July 2016 July Newcastle Park, Civic event Change of 5 Years RENEWAL (FRRR) FOUNDATION FOR RURAL AND REGIONAL Singleton and Taree. Macquarie, Port Dubbo, Orange, including centres, NSW regional of anumber across change sustainable about bringing so, is doing in and level grassroots the at disadvantage to long-term relating issues address to helping is program The attendance. school low very have or attending not are who students male Islander Strait Torres and Aboriginal at-risk, targets program The Clontarf Foundation’s in-school re-engagement Investment: $175,000 Program: In-school re-engagement program CLONTARF FOUNDATION program. this through supported been have families 2011. in 500 than Region More Hunter the in began pilot the since EIRP funded has Foundation Charitable Greater The potential. learning future their enhance will that services appropriate into transition child’s their for them to prepare support practical and information with families to provide established been has program The autism. of diagnosis after with faced are they challenges the through to navigate families assisting is (EIRP) Program Readiness Intervention Early Aspect’s Investment: $160,000 (EIRP) Program Readiness Intervention Early Program: important community initiatives. these for support collaborative provide –that sector philanthropic the and State Government representing – bodies funding eight of one is Foundation Charitable Greater The regions. Coast North Mid and Hunter the in LGAs situated NSW 10 regional in communities facing issues social persistent and pressing addressing on focuses that project impact acommunity conducts Renewal Regional and Rural for Foundation The Investment: $50,000 program Impact Community Program:

13 Annual Report | 2016–17 14 Annual Report | 2016–17 Russell and CEO Scott Morgan at the 2016 Announcement Event; Event; 2016 Announcement the at Morgan Scott CEO and Russell Wayne Chairman Bank Greater Long, Anne CEO and Nelmes Ian Chairman Foundation Charitable Greater with Recipients Funding Foundation Charitable Greater Bivard; Andrew Dr and Lin Longting Dr Researchers Stroke HMRI Newcastle; Staff, Bank Greater and participants program NEST OzHarvest toright: Left adisability. with people or elderly the of carers unpaid more of support the enable will that Illawarra the into services the of expansion the assisted has grant Foundation’s Charitable Greater The services. counselling and resources programs, educational support, consumer forums, recreational and provision of information, referrals, advocacy the including services, support of arange with carers provided has SSCSS years, 20 past the For Investment: $50,000 Illawarra the in Program Support Carer Program: (SSCSS) SERVICE SUPPORT CARER SHIRE SUTHERLAND minimise food waste. food minimise to ways and cooking healthy shopping, food planning, meal cost low choices, eating healthy about taught are Participants skills. life and nutrition with essential information regarding and learnings disadvantaged and vulnerable most region’s the provides program (NEST) Training Sustenance OzHarvest Newcastle’s Nutrition Education Investment: $25,000 program (NEST) Training Sustenance Education Nutrition Program: OZHARVEST NEWCASTLE

Applications for the Foundation open in February and are announced in August. in announced are and February in open Life Therapist, Veronica Oakley Veronica Therapist, Life Child Quality Camp with Eckert Josiah page: Opposite Hospital Manning Captains, Starlight with staff Bank Greater Program; Therapy Life Child their for Quality toCamp gifts delivers Long Anne CEO Foundation Charitable Greater Year; the of Volunteer 2017 Employee Foundation Charitable Greater Rix, Leanne HUNTER MEDICAL RESEARCH INSTITUTE (HMRI) INSTITUTE RESEARCH MEDICAL HUNTER CAMP QUALITY QUALITY CAMP standard of stroke care internationally. internationally. care stroke of standard anew to establish aims research this Australia, in death of cause leading third the and disability of cause one number the being stroke With care. and treatment stroke in advances promising most the of one to be proving is that medication clot-busting anew of trial international the 2014 supported has since 1997. in funding Our establishment Institute’s to the back goes HMRI of support Bank’s Greater $50,000 –Investment: Research Stroke Program: the Hunter Region are supported by this service. service. by this supported are Region Hunter the in treatment cancer undergoing achild have who families all that ensured has funding Foundation’s Charitable Greater The skills. coping improve and levels anxiety and stress to minimise able are they procedures, and surgery treatment, for preparation as well as distraction, education, play, Through journey. cancer achild’s of cycle treatment the during akey role plays Therapist Life A Child Investment: $61,000 Hospital Children’s Hunter John the at program Therapy Life Child Program:

’ s 2017 Funding Round Round Funding s 2017

the Year Award in 2015. in Year Award the Foundation established the Employee Volunteer of Charitable Greater the employees, selfless these of support wonderful the afew.to To name recognise just literacy, financial about people young educate activitiesperiod, and in participating skill-based to a12-month across programs mentoring in part taking Room, Express Starlight the in volunteering as such activities included has This partners. charity Foundation to support hours 1,000 than more provided employees Bank Greater 200 Year, around 2017 the Financial During time to the community. their giving for passion and commitment a strong display who employees its and Bank by Greater supported well is It Foundation. Charitable Greater the for akey platform remains Volunteering Volunteering Therapist at the John Hunter Children’s Hospital. Children’s Hunter John the at Therapist Life aChild support to years ahalf and two last over the Quality Camp to funding provided Foundation has The Greater Charitable

“Becoming involved in these programs is one one is involved programs these in “Becoming Thank you for the amazing opportunity to to opportunity amazing the you for Thank met through reading, arts and crafts, and games. and crafts, and arts reading, through met being still were milestones developmental his ensured and strategies coping valuable him provided faced, he procedures the about Josiah empowered pain, and hospital between association that distance helped sessions The procedure. any for went he before session play hour’s an for hospital to the Josiah take would who Therapist, Life Child Quality aCamp Veronica, to introduced were they time that at was It him. help to how unsure were parents his and uncertainty and despair of feelings experienced Josiah family. his on toll aheavy took trauma and treatment of years early The well. as life his of period challenging this through thrive but cope, only to not him helped Therapy Life Child through developed had Josiah skills life face. The to have should child no that traumas braving hospital, in life his of years six first the of five spent Eckert Josiah a camp for the first time. time. first the for a camp attending children to young Companion Camp activities for the organisation, including being a time, compassion across and skills many different her provided has Leanne years, three past the Over Quality. Camp partner, Foundation of support ongoing her for award the received Rix, Leanne Analyst, Test IT Bank Greater year, This community. local to their back to give capacity their in beyond and above go who employees Bank Greater those acknowledged has award the now years three For of the most rewarding things I have ever done. Ihave ever done. things most rewarding the of Charitable Foundation Employee Volunteer of the Year. the of Volunteer Employee Foundation Charitable It was an honour and privilege.” and honour an was It volunteering. through Bank represent Greater Leanne Rix, Greater Bank IT Test Analyst and 2017 Greater 2017 and Greater Analyst Test IT Bank Greater Rix, Leanne

Case Study Case Study

15 Annual Report | 2016–17 16 Financial Report | 2016–17 Lori &Lori Michael – Hope Island – Hope Independent Auditor’s Report Auditor’s Independence Declaration the FinancialStatements Partof Notes toandForming Statements ofCashFlows Statements ofChangesinEquity Balance Sheets Statements ofComprehensive Income Directors’ Declaration Directors’ Report

27 64 26 25 24 23 22 63 18

17 FinancialFinancial Report Report | | 2016–17 2016–17 18 Financial Report | 2016–17 W M Russell W MRussell report. this of date the until up Year and Financial the of whole the for Directors as office held persons following The Directors 2017. June 30 ended year the during, of, or end the at controlled it entities the and Company the of consisting Bank), (Greater Group Bank Greater entity, consolidated the and Company the on report their presenting in pleasure much have 956 (Company) 651 087 88 ABN Limited Bank Greater of Directors The Directors M L McDonald M LMcDonald Committee. Planning Succession the of Member and Committee Remuneration the of Chairman Responsibilities: Special Newcastle. of south Cooranbong, at village aretirement Living, Retirement Gardens Rosedale of director and aco-owner is He years. 30 over for industries diverse in companies public of anumber of boards the on served has He Consultant. Business and Director Company aprofessional became he 1987 when until 14 for years law practised He 2009. February in Board the joined Ware Mr W RWare Committee. Planning Succession the of Member and Committee Strategy M&A the of Member Board, the of Chairman Deputy Responsibilities: Special Navy. Australian Royal the in Officer aJunior was and TAFE at teacher a part-time as worked previously also has Robinson Mr development. land and engineering planning, town surveying, in consultancy based Hunter aleading Johnson, ADW of Director Managing the is He development. land and planning town surveying, in experience years’ 30 over has and 2007 October in Board the joined Robinson Mr D SRobinson Planning Committee. Succession the of Chairman and Committee Strategy M&A the of Member Committee, Remuneration the of Member Committee, Risk Board the of Member Committee, Audit Board the of Member Responsibilities: Special 2011. November 29 on appointment his since Board the of the been Chairman has Russell Mr Association. Auditors Institutions Financial Australian the of President past and Executive the of amember is and associations industry of anumber in involved is Russell Mr Partners. Pitcher firm accountancy at apartner currently is He years. 20 for PricewaterhouseCoopers at partner assurance and audit an as worked having services, assurance and auditing providing in experience 2011. extensive April has in He Board the joined Russell Mr Member of the Board Audit Committee and Member of the Board Risk Committee. Risk Board the of Member and Committee Audit Board the of Member Committee, Planning Succession the of Member Committee, Remuneration the of Member Responsibilities: Special Newcastle. of Diocese Anglican the of aTrustee also is She limited. funds health nib at Officer Operating Chief and Officer Marketing Chief Zealand, New CEO Interim as employed previously was Drinkwater Mrs marketing. and IT service, customer operations, in Executive aSenior as experience extensive has 2010. She October in Board the joined Drinkwater Mrs V J Drinkwater V JDrinkwater Committee. Remuneration the of Member and Committee Planning Succession the of Member Committee, Risk Board and Committee Audit Board the of Chairman Responsibilities: Special level. Committee and Board at sector Profit for Not the in involvement considerable 2016 has and February until Newcastle of Diocese Anglican the of aTrustee as served He years. several for account own his on practised subsequently He 1994. in resignation his until Marwick Peat KPMG and &Co Ross Touché of Offices Newcastle the in aPartner was and years 30 over for Accountant aChartered as practised has He 2009. May in Board the joined McDonald Mr LL.M. (Hons), FAICD FAICD (Hons), LL.M. B.Comm, CA, GAICD, MIIA (Aust) MIIA GAICD, CA, B.Comm, B.Surveying (Hons), MAICD (Hons), B.Surveying B Ec., FCA, GAICD FCA, B Ec., B Ec., MBA (With merit), GAICD, CAHRI GAICD, merit), (With MBA B Ec., ’ Report

and expand the range of products and services available to customers. available services and products of range the expand and channels distribution its of quality the to improve Bank Greater to enable platform the provided and Bank Greater of in the form of to customers taking deposits and providing services financial accommodation. Those activities financial of enhanced the financial position provision the of consisted year the during Bank Greater of activity principal The Activities Principal objectives: long-term and short following the by achieving viability financial long-term its ensure will Bank Greater ObjectivesCorporate Zealand. New and Australia Accountants Chartered the of amember is Moffat Mr Institute. Investment and Securities the from Finance Applied of aDiploma as well as Newcastle of University the from Administration Business of aMasters and degree Commerce of aBachelor holds Moffat Mr internationally. and Australia in both management capital and treasury strategy, finance, across roles various held has and industry finance the within experience management of has Moffat years Mr 20 over Bank. Greater for operations intelligence business and treasury governance, and reporting financial all for responsibilities with Officer Financial Chief incumbent the 2016 is and 5October on secretary company appointed was RJMoffat Mr retirement. his 2016 following 5October on secretary company as acting ceased GJTaylor Mr Australia. of Institute Taxation the of aFellow is and NSW of Society Law the Australia, Counsel Corporate of Association the Directors, Company of Institute Australian the of amember is He Newcastle. of University the from degrees Commerce of Bachelor and Laws of Bachelor holds Nyman Mr Helmore. Sparke at Counsel Special as majority the practice, legal corporate in experience of years 20 over with Bank Greater at Legal of Head the is 2016. Nyman Mr 18on January appointment initial his from role this in to act continuing GNyman Mr with secretaries company two has Company The Company Secretary Committee. Strategy M&A the of Chairman and Committee Planning Succession the of Member Committee, Risk Board the of Member Committee, Audit Board the of Member Responsibilities: Special years. 40 over for &Starr Cracknell Jones, of firm the accountancy in apartner was Cracknell Mr (National). AAPBS of aCouncillor was and Division) (NSW Societies Building Permanent Australian the with positions executive various held has He industry. society building the in experience years’ 40 over has 2011 and April 1973 from until Society Building ABS of 2011. May Executive in Chief Board was He the joined Cracknell Mr R JCracknell, while non-financial indicators include number of products and services per customer, staff and customer satisfaction. customer and staff customer, per services and products of number include indicators non-financial growth, while portfolio deposit and growth portfolio loan assets, on return ratio, to income cost margins, interest are financial indicators main The indicators. non-financial and financial of arange using performance its measures Bank Greater choice. of employer an is and governance corporate good with knowledge and capacity to build continues workplace, enjoyable and achallenging provides Bank Greater that to ensure place in are strategies internal Furthermore, contact. of points all at experience customer the to enhance and level, service asuperior to provide to continue customers, of demands the to meet services and products of arange to provide customers, of needs increasing the supports that network adistribution to maintain are objectives these to achieve place in strategies current The Commit to corporate social responsibility. social to corporate Commit and systems), and process (people, capabilities business Strengthen risk, and change regulatory manage Proactively efficiency, organisational Improve markets, target in base customer our grow Sustainably CPA, FAICD CPA,

19 FinancialFinancial Report Report | | 2016–17 2016–17 20 Financial Report | 2016–17 Directors C The state of affairs of Greater Bank in the Financial Years subsequent to 30 June 2017. June to 30 subsequent Years Financial the in Bank Greater of affairs of state C The or operations, those of results B The Bank, Greater the of operations A The affect: significantly may or affected 2017 significantly have June that 30 since arisen have that circumstances or matters any of aware not are Directors The Date Events Balance After $244,118. is up wound were Company the if to contribute liable are Company the of members that amount total The to member. $1 per limited is and Company the of by members provided is guarantee The guarantee. and by shares limited acompany is Limited Bank Greater Liability Member Year. Financial the during Bank Greater of affairs of state the in change significant no was There Affairs of State entity. consolidated the of officers as capacity their in officers the against may that brought be proceedings criminal or civil defending in incurred be may that expenses and costs are insured liabilities The contract. the in clause by aconfidentiality prohibited is contract, insurance by the covered liabilities the of nature the and under, payable premium of amount total the of disclosure practice, commercial normal with accordance In Company and its the of controlled entities. officers Executive Senior and Directors the to insure premiums paid Bank Year, Greater Financial the During Insurance Officers of follows: as were Director by each attended meetings of number the and year the during held Committees) of meetings (including Directors the of meetings of number The RJCracknell. and VJDrinkwater M LMcDonald, WRWare, DSRobinson, WMRussell, were: year the during Company the of Directors as office holding persons The Directors Reports. Officer’s Executive Chief and Chairman’s the in contained is Bank Greater for operations of A review Operations of Review ENTITY CONSOLIDATED THE OF RESULTS R JCracknell V JDrinkwater W RWare M LMcDonald D SRobinson W MRussell Meetings of Number PROFIT AFTER INCOME TAX EXPENSE TAX INCOME AFTER PROFIT ’ Meeting ’ Report Board of Directors of Board 11 10 (11) 10 (11) 11 (11) 11 (11) 11 (11) 10 (11) 11 Audit Committee 4 4 (4) 4 (4) 4 - (4) 4 - (4) 4 Risk Committee 5 5 (5) 5 (5) 5 - (5) 5 - (5) 5 Remuneration Remuneration Committee 3 - (3) 3 (3) 3 (3) 3 - (3) 2 28,641 $’000 2017 M & A Strategy M &AStrategy

Committee 1 1 (1) 1 - - - (1) 1 (1) 1 29,512 $’000

2016

237 of the the of 237 Section under Court the of leave with Company the of behalf on in intervened or brought been have proceedings No proceedings. those of part or all for Company the of behalf on responsibility taking of purpose the for aparty, is Company the to which proceedings any in to intervene or Company, the of behalf PricewaterhouseCoopers Australia continues in office in accordance with section 327 of the the of 327 section with accordance in office in continues Australia PricewaterhouseCoopers Auditor applies. Instrument Legislative the to which entity an 2016/191 Instrument Reports) Financial/Directors’ in (Rounding Corporations ASIC under Company to the available option the under dollars thousand nearest to the rounded been have statements financial the in amounts The AmountsRounding of 63. page on out set Act 2001 is Corporations the of 307C section under required as declaration independence auditors’ the of A copy Auditor regulation. environmental significant to any subject not is Bank Greater Environmental Regulation the of 237 Section under Court to the applied has person No Proceedings on Behalf of the Company report. this of date the at operations, profitable continued than other Bank, Greater of operations the in developments likely material no are There Likely Results Developments Operations of Expected and Signed at Hamilton this 26th day of September 2017 in accordance with a resolution of the Directors. the of aresolution with 2017 accordance in September of day 26th this Hamilton at Signed Chairman W MRussell 26. Note in disclosed are year the during provided services non-audit and audit for Australia) (PricewaterhouseCoopers auditor to the payable or paid amounts the of Details ’ s Independence Declaration Independence s Corporations Act 2001 Act Corporations . Corporations Act 2001 Act Corporations for leave to bring proceedings on on proceedings to bring leave for Corporations Act 2001 Act Corporations . The Company is is Company . The .

21 FinancialFinancial Report Report | | 2016–17 2016–17 22 Financial Report | 2016–17 Signed at Hamilton this 26th day of September 2017. September of day 26th this Hamilton at Signed Chairman W MRussell Directors. the of aresolution with accordance in made is declaration This C B A opinion: Directors’ the In Directors issued by the International Accounting Standards Board. Standards Accounting International by the issued as Standards Reporting Financial International with comply also statements financial the that 1(A)Note confirms and payable; and due become they when and as debts its to pay able be will Limited Bank Greater that to believe grounds reasonable are There ii)  ii)  i) including: Act 2001 Corporations the with accordance in to 62 are 23 pages on out set notes and statements financial The   reporting requirements; and requirements; reporting 2001 Regulations Corporations the Standards, Accounting with Complying cash flows, for the Financial Year ended on that date; and that on Year ended Financial the for flows, cash their and equity in changes operations, their of results by the represented as performance, 2017 their of and June 30 at as position financial entity’s consolidated and Limited’s Bank Greater of view fair and atrue Giving ’ Declaration and other mandatory professional , for the year ended 30 June 2017 June 30 ended year the for Statements Comprehensive of Income Total other comprehensive income comprehensive Total other Cash flow hedges flow Cash OTHER COMPREHENSIVE INCOME COMPREHENSIVE OTHER The above Statements of Comprehensive Income should be read in conjunction with the accompanying notes. accompanying the with conjunction in read be should Income Comprehensive of Statements above The TOTAL COMPREHENSIVE INCOME COMPREHENSIVE TOTAL Revaluation of land and buildings Non-interest income income interest Net PROFIT FOR THE YEAR THE FOR PROFIT TAX INCOME BEFORE PROFIT Income tax relating to these items to these relating tax Income items to these relating tax Income expense tax Income Interest expense Interest revenue Interest Items that may be reclassified to profit or loss or to profit reclassified be may that Items Items that will not be reclassified to profit or loss or to profit reclassified be not will that Items Non-interest expense Non-interest Notes 23 23 23 23

3 4 2 6 5 15 3) 4 3 (115, (109,669) 242,632 132,963 156,188 (12,204) 40,845 28,447 28,641 23,225 $’000 (1,345) 1,068 2017 (320) (194) 403 CONSOLIDATED (108,975) 19 42) 5 (119, 129,584 249,126 151,186 (12,699) 29,512 42,211 29,143 21,602 $’000 (2,149) 1,622 2016 (487) (369) 645 (124,366) 152 5) (115,24 256,785 155,637 132,419 28,258 28,063 40,392 (12,134) 23,218 $’000 (1,345) 2017 1,067 (320) (195) 403 COMPANY (133,954) 263,062 (109,181) 129,108 151,019 28,905 (12,626) 41,838 29,212 $’000 21,911 (2,149) 2016 1,710 (307) (513) 645 23 FinancialFinancial Report Report | | 2016–17 2016–17 24 Financial Report | 2016–17 Balance Sheets Balance for the year ended 30 June 2017 June 30 ended year the for Cash and cash equivalents ASSETS The above Balance Sheets should be read in conjunction with the accompanying notes. accompanying the with conjunction in read be should Sheets Balance above The TOTAL EQUITY profits Retained Reserves EQUITY Current tax liabilities Deposits revenue Deferred Investment properties Payables and other liabilities other and Payables LIABILITIES TOTAL ASSETS Intangible assets equipment and plant Property, assets tax Deferred assets financial Other Loans and advances NET ASSETS TOTAL LIABILITIES Provisions Other liabilities financial Derivative financial instruments Derivative financial instruments Other receivables Investment securities Notes 22 20 23 24 10 10 18 13 19 12 15 14 16 17 21 11 9 8 7 5,804,979 6,286,212 4,895,476 5,375,917 1,112,673 481,233 481,233 404,832 226,717 449,143 32,090 1453 5 11,4 $’000 31,158 6,039 1,349 6,797 1,307 2017 3,718 9,926 3,051 320 263 195 CONSOLIDATED 4,544,409 5,262,529 5,715,315 4,911,888 452,786 452,786 421,886 173,498 951,477 327,961 30,900 28,624 $’000 3,640 5,656 9,465 2016 1,625 9,647 5,374 2,401 320 736 692 431 5,380,486 6,504,276 1,098,252 6,981,662 4,895,476 1,849,128 477,386 477,386 47,678 4 179,773 29,708 $’000 31,158 12,761 3,806 6,039 8,299 1,349 6,797 1,307 2017 9,926 923 263 195 COMPANY 4,544,409 1,403,756 5,693,812 6,143,135 4,916,114 449,323 449,323 420,804 754,424 144,152 28,624 28,519 10,241 $’000 5,656 3,728 2,401 9,465 2016 5,374 5,821 923 736 692 431 for the year ended 30 June 2017 June 30 ended year the for Statements Changes of Equity in Reserves YEAR FINANCIAL THE OF START AT THE TOTAL EQUITY Reserves YEAR THE FOR INCOME COMPREHENSIVE TOTAL OTHER profits Retained YEAR THE FOR LOSS AND TOTAL PROFIT profits Retained Reserves YEAR FINANCIAL THE OF END AT THE TOTAL EQUITY to reserves profits retained from Transfer YEAR THE FOR EQUITY WITHIN TRANSACTIONS OTHER The above Statements of Changes in Equity should be read in conjunction with the accompanying notes. accompanying the with conjunction in read be should Equity in Changes of Statements above The profits Retained profits to retained reserves from Transfer Notes 23 23 23 23 24 24 24 24 452,786 481,233 421,886 449,143 28,641 30,900 32,090 28,641 $’000 (1,384) 1,384 2017 (194) (194) CONSOLIDATED - 423,643 452,786 394,834 421,886 28,809 30,900 29,512 29,512 $’000 (2,460) 2,460 2016 (369) (369) - 449,323 477,386 420,804 47,678 4 28,258 28,258 29,708 28,519 $’000 (1,384) 1,384 2017 (195) (195) - COMPANY 449,323 420,418 420,804 394,052 29,212 26,366 28,519 $’000 (2,460) 29,212 2,460 2016 (307) (307) - 25 FinancialFinancial Report Report | | 2016–17 2016–17 26 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Flows Cash of Statements Interest received Interest ACTIVITIES OPERATING FROM FLOWS CASH The above Statements of Cash Flows should be read in conjunction with the accompanying notes. accompanying the with conjunction in read be should Flows Cash of Statements above The YEAR FINANCIAL THE OF END AT THE CASH YEAR FINANCIAL THE OF BEGINNING AT THE CASH held cash in increase/(decrease) Net ACTIVITIES BY FINANCING PROVIDED CASH NET notes commercial of issue/(repayment) Net ACTIVITIES FINANCING FROM FLOWS CASH ACTIVITIES INVESTING FROM FLOWS CASH equipment and plant property, of sale from Proceeds equipment and plant property, for Payments liabilities and assets financial other in sales and purchases Net ACTIVITIES INVESTING FROM FLOWS CASH ACTIVITIES BY OPERATING PROVIDED CASH NET deposits in payments and acceptances Net securities investment in redemptions and placements Net advances and loans in repayments and advances Net Income taxes paid Operating expenses paid Interest paid Other income received received commissions and Fees Notes 29 7 (Outflows) Inflows/ (130,344) (109,360) (351,764) 226,717 464,360 173,498 (110,112) 241,831 (12,435) 46,879 22,022 46,879 14,198 53,219 (7,858) $’000 (8,172) 2017 262 CONSOLIDATED 52 - (Outflows) Inflows/ (221,270) (123,927) (105,739) 173,498 (64,506) 248,994 216,723 171,254 71,860 (91,158) 71,860 $’000 21,213 (6,257) (5,110) (9,621) 2,244 2016 860 287 279 (Outflows) (270,357) Inflows/ (350,063) (414,520) (124,639) 313,836 464,703 255,984 179,773 313,836 11441) (111,4 144,152 (12,435) 22,022 35,621 (7,858) $’000 (8,172) 2017 262 32 52 COMPANY (Outflows) Inflows/ (138,093) (221,255) (109,775) (84,258) 144,152 262,929 (107,961) 152,875 217,678 80,645 80,645 $’000 21,213 (8,723) (6,257) (5,110) (9,621) 2016 860 287 627

1. 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes stated. otherwise unless presented, periods to all applied consistently been have policies These below. out set Year are Financial previous the of that and statements financial these of preparation the in adopted policies accounting significant The disclosed. previously as balance total the alter not do changes Such details. additional with user the to provide restated been have may comparatives year prior containing Notes currency. dollar Australian in expressed are amounts All and property of classes investment certain property. value, fair at instruments) derivative (including liabilities and assets financial certain of revaluation by the modified as convention, cost historical the under prepared are Bank Greater of statements financial The statements. financial preparing of purposes the for entity afor-profit is Bank Board Greater (IASB). Standards Accounting International by the issued as (IFRS) Standards Reporting Financial International with comply also statements financial Bank’s Greater Australia. Act 2001 in Corporations the and Standards Accounting provisions Australian of with accordance in prepared reports financial purpose general are Bank Greater of statements financial The subsidiaries. its all and Company the of consisting Bank) (Greater entity entity consolidated the and individual an as (Company) Limited Bank Greater for statements financial separate includes report financial The A

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY Greater Bank has partially adopted adopted partially has Bank Greater financial statements are reasonable. Actual results in the future may differ from those reported. those from differ may future the in results Actual reasonable. are statements financial the preparing in used estimates the believes Management events. future of expectations reasonable including factors, other and experience historical on based are and evaluated continually are judgements and Estimates (effective 1 January 2018) 1January (effective customers with contracts from Revenue below. out set is standards new the of Asummary statements. 2018 financial June 30 the in published be will review this of results The loss. and profit and sheet balance the both on impact the to quantify seeks Bank Greater as underway currently is standards new these of review Adetailed period. 2017 June reporting 30 the for mandatory not are that published been have interpretations and standards accounting new Certain are: these of significant most The statements. financial Bank’s to Greater significant are assumptions where areas or complexity, or judgement of degree ahigher involving areas the out set statements financial to the notes The policies. accounting the applying of process the in judgement to exercise management requires also It estimates. accounting critical certain of use the requires statements financial the of preparation The ii) i) Preparation of Basis and profit and loss, such changes are yet to be quantified. yet quantified. to be are changes such loss, and profit and sheet balance the to both changes in result will standard new this that expects Bank Greater Whilst model. loss apredictive move towards to the due standard current the under than earlier recognised being defaults loan on losses in result will standard new The Bank. by Greater yet adopted to be provisioning loss loan and accounting hedge around rules new 9introduces AASB detail). further 1Ffor Note (refer instruments financial of The IASB has issued a new standard, standard, anew issued has IASB The 2019) 1January (effective leases for accounting and Recognition recognised. is revenue how on impact minimal to have standard new this expects Bank Greater rewards. and risks of notion existing the replaces control of notion the so to acustomer, transfers service or agood of control when recognised is revenue that principle the on 15 based is AASB contracts. IAS11, construction and covers which services, AASB 15 Revenue from contracts with customers with contracts from Revenue 15  AASB Financial Instruments yet quantified. to be is loss and profit the on impact The liabilities. and assets additional of recognition the in result will change the expects Bank Greater leases. all for sheet balance the onto liability lease and asset a‘right-to-use’ to account bring now will Lessees leases. operating and finance between distinction and 117. classification AASB the removes replace standard new will The This

fair valuation estimates. consolidation of special purpose entities, and advances, and loans on losses impairment

Critical accounting estimates and significant judgements New accounting standardsNew and interpretations (effective 1 January 2018) 1January (effective AASB 9 Financial Instruments Financial 9 AASB AASB 16 Leases 16 AASB will replace both IAS18, which covers contracts for goods and and goods for contracts covers IAS18, which both replace will , for the recognition and accounting for lease transactions. transactions. lease for accounting and recognition the , for in regards to the accounting and recognition recognition and accounting to the regards in

27 FinancialFinancial Report Report | | 2016–17 2016–17 28 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes are less than the quantitative threshold required for separate disclosure. separate for required threshold quantitative the than less are segments operating All Officer. Executive Chief the as identified been has segments, operating the of performance assessing and resources allocating for responsible is who decision-maker, operating chief The decision-maker. operating chief to the provided reporting internal the with consistent amanner in reported are segments Operating C B

Consolidation its SPEs. Accordingly, their underlying assets, liabilities, revenues and expenses are reported in the Company’s consolidated Company’s balance the sheet in and statement reported are of comprehensive expenses and income. revenues liabilities, assets, underlying their Accordingly, SPEs. its consolidated has Company The returns. those to affect ability its and entity the of returns variable to the exposure its about judgements makes it SPE, the control does Company the whether to determine difficult be sometimes can it Where control. not does it SPE an consolidate not does Company The funding. to access Company the allow positions securitised These (SPEs). Entities Purpose Special of anumber through held are positions Securitised loss. or profit in recognised value fair in changes with value to fair remeasured subsequently are afinancial as liability classified Amounts liability. afinancial or equity as either classified is consideration Contingent purchase. abargain as loss or profit in directly recognised is difference the acquired, the of subsidiary assets identifiable net the of value fair the than less are amounts those If goodwill. as recorded is acquired assets identifiable net the of value fair the over entity, acquired the in interest equity previous any of value fair date acquisition the and acquiree the in interest non-controlling any of amount the transferred, consideration the of excess The Acquisition-related transaction costs are expensed as incurred. date. acquisition the at values fair their at initially measured exceptions, limited with are, in assumed combination a business liabilities contingent and liabilities and acquired assets Identifiable group. by the the issued and interests incurred equity liabilities the transferred, assets the of values fair the comprises asubsidiary of acquisition the for transferred consideration The combinations. business all for to account used is accounting of method acquisition The cost. at Company by the for accounted are subsidiaries in Investments existed. during control period which financial the of part that for included are results its period, financial the during ceased entity an of control Where commenced. control which on date the from income comprehensive of statement consolidated the in included been have results its period, financial the during obtained was entity an of control Where sheet. balance and equity of changes of statement income, comprehensive of statement consolidated the in separately shown are capital, issued the of 100% than less owns Company the where entities, controlled of equity and results the in interest Non-controlling full. in eliminated been have Group Bank Greater the in entities between transactions all of effects The entity. the of activities the to direct power its through returns those to affect ability the has and entity the with involvement its from returns to, variable rights has to, or exposed is it when entity an controls Bank Greater Bank). (Greater Group Bank Greater the to as referred are entities controlled its and Company the Collectively, entities. controlled its and (Company) Limited Bank Greater of statements financial the comprise statements financial consolidated The Segment Reporting iii) ii) i)

Securitisation Controlled entities Business combinations

9 AASB to apply elected has Bank Greater F ATO. the with liability tax income entity’s consolidated the settling for responsibility has Company The account. intercompany on effected be entity. will head to the transfers Such liability tax their transferring before taxpayers standalone were they if as liability tax notional their to calculate required are entities member group 2013. Broadly, 1July from entities’, apply member ‘group as entities, known controlled Australian owned wholly certain and Company the between agreements sharing and funding Tax financial statements. consolidated the in off set are entities those of liabilities and assets tax deferred the and entity asingle as taxed are entities those aconsequence, As decision. the of notified been has Office Taxation Australian The 1 of as 2002. legislation July consolidation tax the implemented entities controlled Australian owned wholly certain and Company The directly in equity. recognised also are equity in directly recognised to amounts attributable balances tax deferred and Current losses. and differences temporary those to utilise available be will amounts taxable that future the probable is it if only losses tax unused and differences temporary deductible for recognised are assets tax Deferred loss. or profit taxable nor profit accounting the neither affects time the at and, transaction, the of combination abusiness not is that atransaction in liability or asset an of recognition initial the from arises asset/liability tax deferred the where except differences, temporary for recognised are liabilities and assets tax Deferred sheet. balance atax-based or sheet balance the either in recognised amounts affect that events other and transactions of effect tax the on focuses which accounting tax-effect of method liability sheet balance the adopted has Bank Greater E D 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes accounting measurement. The categories and measurement treatments are: treatments measurement and categories The subsequent measurement. their accounting determines turn in which asset, financial equity or adebt either as classified then are assets Financial asset. financial the of issue or acquisition to the attributable directly are that costs fair at as transaction loss, or classified not profit through value liabilities and assets financial of case the in plus, value fair at recognised initially are assets financial All flows. cash future of uncertainty and timing amounts, the to assess users for information Standards arising from AASB 9 AASB from arising Standards

accounted for separately. for accounted not are and outstanding principal the on interest and principal of payment solely are asset the of flows cash the whether determining in considered are asset financial debt the in embedded derivatives any of nature The A debt financial asset is classified as at amortised cost only if both of the following criteria are met: are criteria following the of both if only cost amortised at as classified is asset financial A debt incurred. or provided been has service the when basis accruals an on revenue as income comprehensive of statement the in recognised is income fee and commission income, Other outstanding. securities investment to maturity held and loans the of amount carrying to the adjustment an as sheet balance the in recognised is expense and income origination deferred the of outstanding balance The financial instrument. the of life the throughout flows cash future estimated discounts exactly that rate that is rate interest effective The instrument. financial the of life expected the over basis ayield on income comprehensive of statement the in recognised and deferred are rate interest effective the of part integral an are which securities investment maturity to held and loans of origination the with associated costs transaction and fees Incremental method. rate interest effective the using to account brought is securities investment to maturity held and loans from arising income Interest Income TaxIncome i) AssetsFinancial ii) i) Recognition Revenue 

on the principal outstanding. principal the on interest and principal of payments solely are that flows to cash dates specified on rise give terms contractual the and, flows, cash contractual the to collect objective the with model abusiness within held is asset the

Interest revenueInterest Debt financial asset financial Debt revenueOther from 1 July 2010, because the new accounting standards provide more reliable and relevant relevant and reliable more provide standards accounting new the 2010, because 1 July from Financial Instruments Financial and AASB2009-11 AASB2009-11 and Amendments to Australian Accounting Accounting Australian to Amendments

29 FinancialFinancial Report Report | | 2016–17 2016–17 30 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes H risk value. in changes of insignificant to an subject are and to cash convertible readily are that less or months three of maturities original with investments liquid highly short-term, other and call at deposits and hand on cash includes equivalents cash and Cash G

Investments in associates are accounted for by the Company at cost. at Company by the for accounted are associates in Investments investment. the of amount carrying the against adjusted are movements post-acquisition cumulative The reserves. consolidated in recognised is reserves in movements post-acquisition of share its and income, comprehensive of statement consolidated the in recognised is associates of losses or profits post-acquisition the of share Bank’s Greater method, this Under method. accounting equity the using statements financial the in for accounted are associates in Investments control. not but influence, significant exercises Bank Greater which over entities those are Associates 1D). Note (refer method rate interest effective the using income comprehensive of statement the in recognised is securities investment from arising income Interest process. amortisation the through as well as impairment, on derecognised, are investments the when loss and profit in recognised are investments from losses or gains Any to maturity. period the over acquisition, on premium or discount any account into by taking calculated is cost Amortised method. rate effective the interest using cost amortised at measured are and assets financial debt as classified are securities Investment cost. at recorded are they valued reliably be cannot assets financial equity Where participants. market by used commonly techniques valuation other and models pricing option analysis, flow cash discounted transactions, length arm’s recent including techniques, valuation by using value fair establishes Bank Greater unlisted), are securities the (or active considered not is market relevant the If prices. bid current on based are markets active in assets financial equity quoted of values Fair value. fair at measured are assets financial Equity investment. on a return represent they as long as and established is payments to receive right the when revenue other as loss or in profit recognised to be continue assets financial equity from Dividends profits. to retained transferred be will loss or gain cumulative the time which at derecognised, is asset the until equity, in reserve income comprehensive other through value fair at asset financial the in directly recognised are income comprehensive other value fair as through nominated assets financial equity for value fair in changes subsequent from arising losses and Gains loss. or to profit losses and gains value fair of reclassification subsequent no is there income, comprehensive other in assets financial equity on losses and gains value fair to present elected has management Where loss. or profit through than rather (OCI) income comprehensive other through value fair in changes to recognise asset financial equity each of recognition initial at election make can irrevocable an Bank Greater trading), for held than other assets financial equity (i.e. assets financial equity other all For revenue. other as presented is income Dividend gains/(losses). net the in included is assets financial these from income Interest applicable. as statement income the in expenses other or income other in recognised are loss or profit through value fair at assets fair financial of the in value Changes loss. or profit through value fair at measured are trading for held are that assets financial Equity value. fair at measured are assets financial equity All arises. it which in period the in expenses other or income other within statement income the in net presented and loss or profit in recognised is relationship ahedging of part not is and value fair at measured subsequently is that asset financial adebt on loss or A gain loss. or profit through value fair at as classified is asset financial debt met, the not are above criteria two the of either If method. rate interest effective the using process the through amortisation and impaired or derecognised is asset financial the when loss or profit in recognised is relationship ahedging of part not is and cost amortised at measured subsequently is that asset financial adebt on loss or A gain iii) ii) i) Investment Securities CashCash Equivalents and ii) Investments in associates in Investments recognition Revenue recognition Asset asset financial Equity

I 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes a specific allowance in respect of the debt being written off. written being debt the of respect in allowance a specific includes balance allowance the that extent to the only losses impaired for allowance the against directly off written be can debts Bad identified. are they which in period the in loss and to profit directly off written be will debts Bad unlikely. is debt the of recovery the that to expect reasonable is it when Directors of Board the and by management identified as off written are debts Bad arrangements. security of enforcement through similar facility or aloan of settlement partial or full in acquired assets are security of enforcement through acquired Assets terms. new to the agreed formally has customer the once as restructured recognised be only will Loans to impairment. subject be shall loan the secured well not is it and doubtful remains restructuring after loan the Where borrower. the of difficulties to financial relating reasons for changes to provide concessional modified been have terms contractual original the where facility anon-commercial is loan A restructured Standard Prudential the with accordance in 1S) note calculated (refer and profits retained of appropriation an is reserve loss credit the standard, under accounting required any not Whilst portfolio. loan the in inherent risks to credit cover equity in maintained is reserve loss A credit experience. loss historical the on impacted have may that conditions adjusted current any for experience loss historical of basis the on estimated are impairment for assessed collectively are that Loans assessment. collective the from excluded is impaired and considered assessed individually been has that loan Any impairment. for collectively assessed then and characteristics risk credit similar of loans with together grouped are they impaired be to not found are loans individual Where rate. interest effective loans the at discounted flows cash estimated the of value present the and amount carrying loans the between difference the at measured are loans these on losses Estimated impaired. to be known are that loans for incurred be may that losses for raised are allowances Specific impairment. of evidence objective is there where allowance an recognises which model, loss incurred an on based are losses loans on impairment for Allowances impairment. possible for assessment and review to regular subject are assets loan All basis. accruals an on income other as loss and profit as recognised are to services relation in provided fees service other and commissions fees, loan Other outstanding. advances and loans the of value the of part as sheet balance the in included are costs and revenues deferred The method. rate interest effective the using loan the of life expected the over basis ayield on loan the of revenue interest to the adjustment an as included and deferred are loan the of acquisition to the attributable directly costs transaction and received fees Loan 1D). Note (refer method rate interest effective the using to account brought is loans from arising income Interest 1F). Note (refer method rate interest effective the using cost amortised at carried are They to customers. advanced is cash when recognised are and assets receivable and loans as classified are advances and Loans i) andLoans Advances vi) v) iv) iii) ii)

Asset recognition Asset Bad debts written off written debts Bad security of enforcement through acquired Assets Restructured loans impairment Loan recognition Revenue APS 220 Credit Quality Credit 220 APS .

31 FinancialFinancial Report Report | | 2016–17 2016–17 32 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes

J

carrying amount does not differ materially from the asset’s fair value at the balance sheet date. sheet balance the at value fair asset’s the from materially differ not does amount carrying the that ensuring require) circumstances if often more (or years three every performed valuations by independent supplemented Directors, by the made are value fair the of assessments Annual date. valuation the at as length arm’s transaction an in seller willing aknowledgeable and buyer willing aknowledgeable between exchanged be could assets the that amount the is which evidence, to market-based by reference determined is value Fair derecognised. is item the year the in loss and profit in included is item) the of amount carrying the and proceeds disposal net the between difference the as (calculated asset the of derecognition on arising loss or gain Any asset. the of use continued the from to arise expected are benefits economic future no when or disposal upon derecognised is equipment and plant property, of item An tax liability. gains capital potential any of net are asset particular each for reserve surplus revaluation asset the in balances The profits. to retained transferred is disposed being asset particular to the relating reserve surplus revaluation any disposal, Upon asset. the of amount revalued to the restated is amount net the and asset the of amount carrying gross the against eliminated is date revaluation the at as depreciation accumulated Any loss. or to profit charged are decreases other all asset; to the attributable surplus remaining the of extent to the income comprehensive other in recognised first are asset same the of increases previous reverse that loss. or Decreases profit in recognised first is increase the loss, or profit in recognised previously adecrease reverses increase the that extent To the equity. in reserve surplus revaluation property the in accumulated and income other in comprehensive tax, of net recognised, are buildings and land of revaluation on arising amounts carrying the in Increases losses. impairment accumulated and buildings of depreciation accumulated subsequent any less revaluation the of date the at value fair at carried are buildings and Land purchase. of time the at expensed are $1,000, than less cost which assets, small other and fittings and furniture equipment, of Items asset. the of acquisition to the attributable directly expenditure includes Cost annually. impairment for reviewed are Assets adjustment. impairment any less and depreciation accumulated less cost at carried subsequently then and cost at recognised initially are equipment and Plant depreciation. accumulated less value fair at carried subsequently then and cost at recognised initially are buildings and Land i) and EquipmentPlant, Property ii) Revaluations Asset recognition Asset

M value. realisable net and cost of lower the at stated are inventories All inventory. as treated not etc are brochures, advertising forms, internal printed as such Items nature. and size in insignificant is it or value realisable no has it where asset an as treated is expenditure No L Inventory and equipment. property plant, as classified is property the occupation, own its for Bank by Greater used is property the Where loss. and profit in directly recognised are properties investment for values fair in Changes date. sheet balance the at value fair asset’s the from differ not does materially amount carrying the that ensuring require) circumstances if often more (or years three every performed valuations by independent supplemented Directors, by the made are value fair the of assessments the at as Annual date. valuation transaction length arm’s an in seller willing aknowledgeable and buyer willing aknowledgeable between exchanged be could assets the that amount the is which evidence, to market-based by reference determined is value Fair asset. the of acquisition to the attributable directly expenditure includes Cost value. fair at carried subsequently then and cost at recognised initially are properties Investment K 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes

might be impaired. In this event, it is carried at cost less accumulated impairment losses. impairment accumulated less cost at carried event, is it this In impaired. be it might that indicate events if frequently more or annually, impairment for tested but amortised not is in Goodwill investments of value associates. carrying the in included is associates of acquisitions on Goodwill assets. intangible in is entities included controlled of acquisitions on Goodwill acquisition. of date the at entity acquired the of assets identifiable net the of share Bank’s Greater of value fair the over acquisition an of cost the of excess the represents Goodwill depreciation: of methods and rates following the uses Bank Greater acquisition. of date the from depreciated are Additions life. useful expected its over land) (excluding equipment and plant property, of item each of amount revalued or cost net the off to write as so calculated is Depreciation Goodwill i) AssetsIntangible Investment Properties ii) for tax purposes. tax for depreciation of method balance reducing the uses generally Bank Greater Taxation. of Commissioner by the public made Rulings by Taxation determined as asset the for life effective an adopts Bank Greater purposes, taxation For loss. and profit in recognised are assets fixed of disposal on and restatements such from arising Adjustments amount. recoverable to its immediately down written is amount carrying the adjustment, impairment or value residual life, to auseful due amount recoverable its than greater is value carrying asset’s an If developments. technological and commercial of light in reassessed and annually reviewed are values residual and lives Useful basis. cost aprime on improvements leasehold the of life useful the or lease the of period unexpired the of shorter the over amortised are improvements Leasehold Depreciation Office Furniture Buildings Office Equipment Office Cash Dispensing Units Hardware Computer Motor Vehicles Motor RATE 2.5% 30% 40% 25% 25% 15% straight line reducing balance straight line reducing balance reducing balance reducing balance METHOD

33 FinancialFinancial Report Report | | 2016–17 2016–17 34 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes accounting. hedge for requirements the meets and ahedge as designated is derivative the unless loss, and profit recognised in are derivatives of amounts carrying the in Movements counterparties. swap the of worthiness credit the and rates interest current account into taking date, balance the at swap the to terminate pay or receive would Company the that amount estimated the is swaps rate interest for values Fair date. balance at value fair to their remeasured subsequently and into entered is contract aderivative date the on value fair at recognised initially are Derivatives 1F). Note (refer negative is date balance at value fair the where aliability as or date balance at value fair apositive have they where asset an as disclosed are and value at fair sheet balance the on recognised are purposes, hedging sheet balance for used those including derivatives, All purposes. trading for instruments financial derivative issue or hold not does Bank Greater policy, management treasury its with accordance In activities. investment and operational, financing from arising risks rate to interest exposure its to hedge instruments financial derivative uses Bank Greater Q non-usage. of rate estimated by an discounted date balance the at unpaid amount the as measured is provision The arise. obligations present the when recognised is costs scheme reward and promotion for A provision obligation. the to settle required be will resources of outflow an that probable is it and events past of aresult as obligation constructive or legal apresent has it where provision makes Bank Greater P 9 AASB under circumstances allowed as limited other in and loss, and profit through value fair at as designated liabilities financial derivatives, 1D) Note (refer for except method rate interest effective the using cost amortised at measured are liabilities Financial O 1D). Note (refer method rate interest effective the using to account brought is deposits on Interest 1F). Note (refer method rate interest effective the using cost amortised at measured are deposits Customers’ N Customers All Greater Bank’s financial liabilities except for derivatives are classified at amortised cost. amortised at classified are derivatives for except liabilities financial Bank’s Greater All Provisions fair value of the hedged asset or liability that are attributable to the hedged risk. hedged to the attributable are that liability or asset hedged the of value fair the in changes any with together loss and profit in recognised is derivative the on loss or gain the afirm (or commitment), liability or asset arecognised from arising exposure value afair hedging as designated aderivative For loss. and profit in immediately recognised is hedge the of portion ineffective to the relating loss or gain The to account. brought is item hedged the when income comprehensive other of statement the into reclassified and reserve hedge flow cash the in equity in recognised initially is hedge the of portion effective the with associated derivative the on loss or gain the transaction), forecast ahighly (or probable liability or asset arecognised from arising exposure flow acash hedging as designated aderivative For depreciation: of methods and rates following the uses Bank Greater incurred. as expensed are maintenance software and research on incurred Costs life. useful estimated the over amortised and software to computer capitalised are reductions cost and/or generation revenue through benefits financial period to future contribute systems or will that products major developing in incurred costs plus software, computer acquiring in incurred directly Costs Derivative Instruments LiabilitiesFinancial ii) i) ii)

Cash flow hedges Cash flow Fair value hedges Computer software Computer Software Computer Development Product or System Major ’ Deposits Financial Instruments Financial which are subsequently measured at fair value through profit and loss. loss. and profit through value fair at measured subsequently are which 40% 3 to 7years /LIFE RATE reducing balance straight line METHOD

to the nearest thousand dollars, or in certain cases, the nearest dollar. nearest the cases, certain in or dollars, thousand nearest to the Instrument Legislative this with accordance in off rounded been have statements financial the in Amounts statements. financial the in amounts of off’ ‘rounding to the relating Commission, Investments and Securities by Australian issued The Company is of a kind referred to in to in referred akind of is Company The W 12 months. within to settle expected are amounts All cost. at recorded been have and to creditors payable amounts represent liabilities other and Payables V amount. revaluation previous the of extent to the only but areversal as is loss recognised impairment the case which in revalued, been previously has asset the unless loss and profit in recognised are losses Impairment amount. recoverable its exceeds asset an of amount carrying the whenever recognised is loss impairment Any estimated. is amount recoverable asset’s the exists, indication such any If impairment. of indication any is there whether to determine period reporting each of end the at least at reviewed are assets Bank’s Greater of amounts carrying The U tax. services and goods of inclusive are operations from payments and receipts flows, cash of statement the of purposes the For expense. of item an of part as or asset an of acquisition of cost the of part as recognised is tax the recoverable, not is incurred tax services and goods of amount the where Accordingly, authorities. taxation from non-recoverable generally is tax services and goods activities, taxed to input relate acquisitions expense or capital Where T profits. retained of appropriation an as recognised is reserve loss credit the in 1I Note Movement (refer (iii)). portfolio loan the in yet not incurred but inherent risks to credit cover losses credit for areserve established has Company the 2005 1July from effect With S R 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Reserves

Impairment employment to which they relate has occurred. has relate they the to which when employment expenses and liabilities as recognised are tax, payroll including employees, with associated On-costs to benefits employees to on provide retirement. liability funds’ the in shortfall to any cover obligation legal no has Company The incurred. when expenses as charged are and fund superannuation employee’s to an Company by the made are Contributions outflows. cash future estimated the possible, as closely as match, that to maturity terms with securities guaranteed government national on yields market using discounted are payments future Expected service. of periods and departures employee of experience levels, salary and wage future to expected given is Consideration method. credit unit projected the using date balance to the up by employees provided services of respect in made to be payments future expected of value present the as measured is and recognised is leave service long for A liability settled. are liabilities the when paid to be expected amounts the at measured are and recognised are leave sick and leave annual salaries, and wages for Liabilities Payables Liabilities and Other Rounding of Amounts of Rounding Tax Services and Goods iv) On-costs iii) ii) i) Entitlements Employee

Superannuation Wages and salaries and annual leave Long service leave service Long ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 Instrument Reports) Financial/Directors’ in (Rounding Corporations ASIC

,

35 FinancialFinancial Report Report | | 2016–17 2016–17 36 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Cash and cash equivalents 2. Deposits 3. Loans and advances Investment securities Other general and administration expenses administration and general Other costs processing system Payment Operating rental expense equipment and plant property, of disposal on loss Net buildings and land of revaluation on loss Net properties investment of revaluation on loss Net Marketing and promotions Employee related expense Donations and sponsorships Depreciation – plant and equipment Depreciation – buildings ofAmortisation computer software 5. Fee income Commission 4. Other liabilities financial Depreciation – leasehold improvements –leasehold Depreciation revenue Other revenue Rental equipment and plant property, of disposal on gain Net securities investment of disposal on gain Net properties investment of revaluation on gain Net recovery Insurance recovered losses Impaired INTEREST REVENUE INTEREST INTEREST EXPENSE INTEREST NON-INTEREST EXPENSE NON-INTEREST INCOMENON-INTEREST 242,632 115,343 109,669 206,134 23,225 98,858 32,892 16,001 19,048 61,049 $’000 0 811 10, 5,085 3,606 2,037 9,885 1,342 8,940 1,637 2017 9,698 1,133 440 383 403 422 642 139 149 CONSOLIDATED 64 39 32 - 108,975 249,126 119,542 210,963 109,951 21,602 56,548 32,867 15,512 $’000 19,011 1,455 1,363 5,296 3,963 9,549 2016 8,818 9,240 1,269 9,591 1,574 386 399 325 150 875 44 55 37 4 - - 256,785 124,366 115,245 206,134 23,218 25,489 98,877 16,001 18,748 61,049 $’000 7 497 47, 5,085 2,037 9,885 1,342 8,940 1,841 2017 3,154 9,697 1,133 440 383 403 422 642 139 142 64 39 31 - COMPANY 263,062 133,954 109,181 0,80 109,98 210,963 56,548 21,911 18,695 23,974 72 5 47,24 15,512 $’000 4,854 1,455 1,363 3,963 9,223 9,549 2016 8,816 1,766 1,574 503 386 325 399 875 44 55 37 4 - - debited or credited to equity credited or directly debited but loss or profit net in recognised not and period reporting the in arising tax deferred and current Aggregate C for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Current tax – credited directly to equity directly –credited tax Current 6. 6. directly to equity directly Net deferred tax – debited/(credited) EXPENSE TAX INCOME Under/(over) provision prior year prior Under/(over) provision entity consolidated for forgiveness Debt Entertainment expenses income (exemptNon-assessable Charitable Foundation) income taxable calculating in (taxable) deductible not are which amounts of effect Tax (2016 –30%) 30% at payable tax facie Prima expense tax income before operations from Profit B liabilities tax deferred in Increase/(decrease) assets tax deferred in Decrease/(increase) comprises expense tax income in included expense/(revenue) tax income Deferred expense tax income Aggregate operations from to profit attributable expense tax Income years prior of tax to current Adjustment tax Deferred tax Current A

INCOME TAX EXPENSE TAX INCOME Amounts Recognised Directly in Equity in Directly Recognised Amounts Numerical Reconciliation of Income Tax Expense to Prima Facie Tax Facie Tax Prima to Payable Income of Expense Reconciliation Numerical Income Tax Expense

Notes 23 13 13 13 40,845 12,204 12,204 12,204 12,204 12,254 12,282 $’000 2017 (386) 308 CONSOLIDATED (50) (78) (78) (66) (15) 83 98 16 - - - 12,699 12,663 12,699 12,699 12,699 12,940 42,211 $’000 2016 (205) (309) (309) (728) 363 158 419 (43) 68 68 36 11 - 40,392 12,134 12,134 12,134 12,134 12,212 $’000 12,118 2017 (386) 308 (78) (78) (15) 83 98 16 16 - - - - COMPANY 12,626 41,838 12,626 12,626 $’000 12,881 12,551 12,626 2016 (205) (323) (323) (728) 405 337 132 68 68 75 (4) 11 - 37 FinancialFinancial Report Report | | 2016–17 2016–17 38 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Cash on hand on Cash assets current are Equivalents Cash and Cash All 7. Other receivables Prepayments Accrued income assets current are Receivables Other All 9. 12 months after to mature expected securities Investment 12 months within to mature expected securities Investment days. 90 than greater is maturity original where those are institutions financial with Investments securities other in Investments Financial institutions balance 8. days. 90 than less is maturity original where those are equivalents cash and cash Short-term Financial institution balance – short-term call –at balance institution Financial CASH AND CASH EQUIVALENTS CASH AND CASH OTHER RECEIVABLES OTHER INVESTMENT SECURITIES INVESTMENT 1,112,673 1,112,673 226,717 160,836 894,356 134,735 951,837 218,317 83,136 $’000 3,051 8,846 1,354 2017 1,296 401 CONSOLIDATED 173,498 951,477 951,477 806,259 152,445 799,032 145,218 92,702 61,879 $’000 18,917 1,625 2016 1,079 242 304 1,849,128 1,849,128 1,688,292 179,773 160,836 954,772 894,356 134,735 36,149 $’000 8,889 6,606 8,299 1,292 2017 401 COMPANY 1,403,756 1,403,756 1,251,311 808,427 144,152 152,445 595,329 32,506 92,702 18,944 $’000 5,821 4,504 2016 1,075 242 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Interest rate swap contracts – cash flow hedges flow –cash contracts swap rate Interest Derivative financial instrument asset 10. Derivatives expected to mature after 12 months after to mature expected Derivatives New/(Released) provision write-off debt Bad balance Opening follows as are losses impairment specific for allowance the in Movement A 12 months after paid to be expected advances and Loans 12 months within paid to be expected advances and Loans Net loans and advances losses impairment specific for Allowance advances and loans Gross loans Term Overdrafts 11. –gain/(loss) ineffectiveness hedge flow Cash 12 months within to mature expected Derivatives hedges flow –cash contracts swap rate Interest Derivative financial instrument liability 12 months within to mature expected Derivatives Derivatives expected to mature after 12 months after to mature expected Derivatives

DERIVATIVE FINANCIAL INSTRUMENTS FINANCIAL DERIVATIVE Allowance for Specific Impairment Losses Impairment Specific for Allowance LOANS ADVANCES AND 4,895,476 4,895,476 4,808,760 4,896,499 3,916,870 978,606 87,739 $’000 (1,023) 1,023 1,349 1,349 1,349 1,224 2017 (444) 263 263 820 243 263 263 529 CONSOLIDATED - - 4,544,409 4,544,409 4,545,633 4,445,895 3,629,619 914,790 99,738 $’000 (1,224) 1,224 2016 1,119 (479) 736 736 584 220 692 692 422 736 270 692 516 - 4,895,476 4,895,476 4,808,760 4,896,499 3,916,870 978,606 87,739 $’000 (1,023) 1,023 1,349 1,349 1,349 1,224 2017 (442) 263 263 820 263 263 529 241 - - COMPANY 4,544,409 4,544,409 4,545,633 4,445,895 3,629,619 914,790 99,738 $’000 (1,224) 1,224 2016 1,119 (465) 736 736 220 692 692 422 736 270 692 570 516 - 39 FinancialFinancial Report Report | | 2016–17 2016–17 40 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes against funds held on deposit. on held funds against charges or property other over mortgage estate, real over mortgage registered either of form the in is loans personal for Security estate. real commercial and/or residential over mortgage registered of form the in is loans for commercial Security estate. real property residential over mortgage registered of form the in is loans housing for Security due past more or 6 months due past 6months than to less 3 months due past 3months than Less impaired not are but schedule repayment contractual their met not have that loans of Analysis D operations. its in Bank by Greater used were that year the during security of enforcement the through assets no were There borrower. to the returned are repaid is debt the after proceeds residual Any indebtedness. outstanding the to reduce used proceeds the with possible practically as soon as of disposed are year the during acquired Assets assets Other estate Real Year Financial the of end the at held still security of enforcement the through acquired assets of value fair Net C deposit. on held funds against charges or property other over mortgage estate, real over mortgage registered either of form the in is loans personal for Security estate. real commercial and/or residential over mortgage registered of form the in is loans for commercial Security estate. real property residential over mortgage registered of form the in is loans housing for Security provided. security the and prospects financial future their the consider will counterparties’ to willingness meet impairment, their contractual arrangements, specific the counterparties’ economic circumstances individual and assessing in Bank, Greater type. product significant either is aparticular of or exposure by amount risk the where performed be usually will assessment Individual assessed impairment. and for assets risk collectively credit similar with together grouped or individually assessed either be will loans Impaired provision Less impairment for provision specific with loans Impaired B

Past Due Loans Due Past Assets Acquired Through the Enforcement of Security Loans Impaired 86,376 $’000 79,825 (1,023) 1,739 2,623 3,928 1,165 2017 2,762 1,165 CONSOLIDATED - 102,882 $’000 (1,224) 96,151 1,789 2,759 3,972 2016 3,013 655 655 - 86,376 $’000 79,825 (1,023) 1,739 2,623 3,928 1,165 2017 2,762 1,165 - COMPANY 102,882 $’000 (1,224) 96,151 1,789 2,759 3,972 2016 3,013 655 655 - for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes GBS Secured Funding Trust No 1 No Trust Funding Secured GBS GBS Receivables Repo Trust Repo Receivables GBS Equity financial assets assets non-current are assets financial other All 12. d)  issue. on notes the of all holds Company the and securitisation internal an is Trust Repo Receivables GBS c) The b)  Australia. in incorporated are entities above the a) All Notes: Ltd Pty Services Greater Investment ENTITY OF NAME Controlled Entities Controlled entities Number 1 Pty Ltd 1 Pty Number Holdings Property Greater GBS Receivables Trust No 4 No Trust Receivables GBS Foundation Ltd Pty Greater Charitable Foundation Trust Greater Charitable as the Company is exposed to, and has the ability to affect, the variable returns associated with these special purpose entities. entities. purpose special these with associated returns variable the to affect, ability the has to, and exposed is Company 1 No the as Trust Funding Secured GBS and Trust Repo Receivables GBS 4, No Trust Receivables GBS of control has Company The The investment holding in Greater Property Holdings Number 1 Pty Ltd was impaired as at 30 June 2017 and written down to nil (2016 nil). to nil down 2017 written and June 30 at as impaired Ltd was 1Pty Number Holdings Property Greater in holding investment The OTHER FINANCIAL ASSETS FINANCIAL OTHER

CLASS OFCLASS SHARE Ordinary Ordinary Ordinary N/A N/A N/A N/A 100% 100% 100% 100% 2017 N/A N/A N/A %

INVESTMENT HOLDING 100% 100% 100% 100% 2016 N/A N/A N/A %

$’000 2017 320 320 CONSOLIDATED $’000 2017 - 603 ------

$’000 2016 320 320 $’000 2016 603 ------

special purpose entity special purpose Mortgage securitisation special purpose entity special purpose Mortgage securitisation special purpose entity special purpose Mortgage securitisation NATURE OF BUSINESS OF NATURE Management Services Trustee Charitable Foundation Dormant Entity $’000 2017 923 603 320 COMPANY

$’000 2016 923 603 320 41 FinancialFinancial Report Report | | 2016–17 2016–17 42 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Net deferred tax assets tax deferred Net 13. Total set-off amount of deferred tax liabilities tax deferred of amount set-off Total Property revaluation surplus reserve surplus revaluation Property equity in directly recognised Amounts Securitisation trust establishment costs Investment securities Insurance settlement receivable hedges flow Cash equity in directly recognised Amounts Accrued expenditure Investment securities Prepaid expenditure revenue Deferred equipment and plant Property, adjustments value fair and costs origination Loan Employee benefits Impaired assets Impaired debts Doubtful to attributable differences temporary comprises balance The Assets Tax Deferred A Property, plant and equipment and plant Property, to attributable differences temporary comprises balance The liabilities tax deferred of set-off Less Deferred tax liabilities

DEFERRED TAX ASSETS TAX DEFERRED Composition Deferred of Tax Net Assets (3,188) $’000 (1,280) (1,908) 6,906 (1,214) 3,718 6,577 2,978 2017 1,673 1,189 329 307 392 CONSOLIDATED (57) 20 18 (9) - - - (2,880) $’000 6,520 (1,270) (1,562) 3,640 (1,318) 2,836 6,496 2016 1,611 720 367 (33) 931 (15) 28 24 3 - - - (3,188) $’000 (1,280) (1,908) 6,994 3,806 (1,214) 6,665 2,978 2017 1,673 1,188 329 307 392 (57) 20 89 18 (9) - - COMPANY (2,880) $’000 6,608 (1,588) (1,244) (1,292) 3,728 6,584 2,836 2016 1,611 930 720 367 (33) (15) 28 89 24 3 - - for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes NET DEFERRED TAX ASSETS TAX DEFERRED NET 12 months than more after settled to be liabilities tax Deferred liabilities tax to deferred Attributable C income comprehensive of statement to the Charged/(credited) balance Opening liabilities tax to deferred Attributable liabilities tax deferred of off-set Less year prior in Under/(over) provision Credited/(charged) to equity income comprehensive of statement to the Credited/(charged) Deferred tax liabilities to be settled within 12 months within settled to be liabilities tax Deferred 12 months within recovered to be assets tax Deferred 12 months than more after recovered to be assets tax Deferred assets tax deferred to Attributable ASSETS TAX DEFERRED NET liabilities tax deferred of amount Total set-off year prior in Under/(over) provision Charged/(credited) to equity Opening balance Opening assets tax deferred to Attributable B

Recovery of Deferred Tax Deferred Assets of Recovery Movements in Net Deferred Tax Deferred Assets Net in Movements $’000 2,880 3,718 3,718 6,520 2,792 6,906 6,906 2017 3,188 3,188 4,114 3,116 (305) (336) (123) 320 324 CONSOLIDATED 814 72 $’000 3,640 3,640 2,880 2,880 3,608 6,520 6,520 2,801 3,207 6,939 2016 3,313 (358) (363) (290) (75) (61) 79 - $’000 3,806 3,806 2,880 2,880 6,608 6,994 2017 6,994 3,188 3,188 4,114 3,116 (305) (336) (123) 320 324 814 72 COMPANY $’000 3,728 3,728 2,880 2,880 6,608 6,608 3,608 3,402 3,206 2,801 2016 ,013 7, (101) (344) (290) (337) (61) 79 - 43 FinancialFinancial Report Report | | 2016–17 2016–17 44 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Land and buildings assets non-current are equipment and plant property, All 14. Net book amount book Net Accumulated depreciation Cost Land and buildings follows as be would basis, cost historical the on stated buildings and land Freehold B 6283 No. Valuer (AAPI), Reg BGreen 67837 6173 No. No. and (FAPI, CPV), Valuer Valuer Reg Reg HPawlik and 2016 June (AAPI), 30 at by DRich performed valuations independent the considered valuation 2016June Directors’ – the 2016 June 30 at undertaken valuations independent previous the 2017 considered June 30 at having value fair of assessment Directors’ performed. valuations 2017June independent –no below. shown are valuations independent the of Details by independent valuations. supported are assessments Directors’ The value. fair the from materially differ not do values carrying the that to ensure Directors by the made is assessment annual An rates. capitalisation commercial rental net current the of and market observations include inputs Specifically, period. reporting each of end the at existing conditions market on based are that assumptions makes and methods of avariety uses Bank Greater value, fair determining In level as 3 assets. classified are and use existing on based values market fair of basis the on is buildings and land of valuation The A PROPERTY, PLANT AND EQUIPMENT AND PLANT PROPERTY, Less accumulated depreciation Plant and equipment Less accumulated depreciation Leasehold improvements Less accumulated depreciation

PROPERTY, PLANT AND EQUIPMENT AND PLANT PROPERTY, Carrying Amounts that would have been Recognised if Land and Buildings were Stated at Cost at Stated were Buildings and Land if Recognised been have would that Amounts Carrying Valuation of Land and Buildings (10,855) (10,603) 13,808 22,486 22,486 31,158 18,674 $’000 (4,866) 13,175 16,955 2,320 6,352 2017 CONSOLIDATED - (12,466) 28,624 14,098 (10,112) 18,587 12,246 21,785 21,785 $’000 (4,489) 17,171 4,705 2016 2,134 - (10,855) (10,603) 13,808 22,486 22,486 31,158 18,674 $’000 (4,866) 13,175 16,955 2,320 6,352 2017 - COMPANY (12,466) 28,624 14,098 (10,112) 18,587 12,246 21,785 21,785 $’000 (4,489) 17,171 4,705 2016 2,134 - for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes the previous independent valuations undertaken at 30 June 2016. June 30 at undertaken valuations independent previous the Reg Valuer No. 6173 and H Pawlik (FAPI, CPV), Reg Valuer No. 67837 and B Green (AAPI), Reg Valuer No. 6283. No. Valuer Reg (AAPI), Green B and 67837 No. Valuer Reg CPV), (FAPI, Pawlik H and 6173 No. Valuer Reg June 2017 – no independent valuations performed. Directors’ assessment of fair value at 30 June 2017 having considered considered having 2017 June 30 at value fair of assessment Directors’ performed. valuations independent no – 2017 June below. shown are valuations independent the of Details by valuations. supported independent are assessments Directors’ The value. fair from materially differ not do values carrying the that to ensure Directors by the made is assessment annual An rates. capitalisation net commercial the of current and market observations rental include inputs Specifically, period. reporting each of end the at existing conditions market on based are that assumptions makes and methods of avariety uses Bank Greater value, fair as determining In 3assets. level classified are and use existing on based values market fair of basis the on is properties investment of valuation The A properties Investment assets. non-current are Properties Investment All 15. year of end at as Balance expense Depreciation Disposals Additions year of start at as Balance E year of end at as Balance expense Depreciation Disposals loss and profit in recognised increment/(decrement) Revaluation construction of course in Building Disposals Additions year of start at as Balance C Additions year of start at as Balance D year of end at as Balance expense Depreciation Properties to Investment Transfer income comprehensive other in Revaluation increment/(decrement) recognised June 2016 – the Directors’ valuation considered the independent valuations performed at 30 June 2016 by D Rich (AAPI), (AAPI), Rich D by 2016 June 30 at performed valuations independent the considered valuation Directors’ the – 2016 June

Valuation of Investment Properties Equipment and Plant in Movement Movement in Leasehold Improvements Movement in Land and Buildings INVESTMENT PROPERTIES INVESTMENT 22,486 21,785 $’000 (2,037) 2,320 6,352 (1,133) 6,039 4,705 1,335 3,992 1,068 2017 2,134 (308) (403) (32) CONSOLIDATED (16) 68 - - - 21,785 $’000 21,183 (1,363) (1,574) 4,705 5,656 2,134 2,704 1,622 2016 4,128 2,621 (553) (399) (617) 876 (4) - - - - 22,486 21,785 $’000 (2,037) 2,320 6,352 (1,133) 6,039 4,705 1,335 3,992 2017 1,067 2,134 (308) (403) (16) (31) 68 - - - COMPANY 21,785 $’000 21,183 (1,363) (1,574) 4,705 5,656 2,134 2,704 2,621 2016 4,128 1,710 (553) (705) (399)

876 (4) - - - - 45 FinancialFinancial Report Report | | 2016–17 2016–17 46 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Creditors and other accruals other and Creditors 12 months. within settled to be expected are liabilities other and payables All 17. year of end at as Balance expenseAmortisation Disposal Additions year of start at as Balance A Less accumulated amortisation software Computer assets non-current are assets intangible All 16. Direct operating expenses Rental income D year of end at as Balance years five before but year one than Later year one Within follows as receivable are statements financial the in recognised not payments lease Minimum follows as are properties investment of leases on receivable payments lease Minimum monthly. payable rentals with leases operating short-term under to tenants leased are properties investment The C year of end at as Balance Buildings and Land from Transfer loss and profit in recognised increment/(decrement) Revaluation Additions year of start at as Balance B

Movement Balances in Software Leasing Arrangements Amount Recognised in Profit and Loss for Investment Properties Investment for Loss and Profit in Recognised Amount Movement in Investment Properties PAYABLES AND OTHER LIABILITIES PAYABLES OTHER AND INTANGIBLE ASSETS 11,453 12,393 $’000 (5,596) (1,342) 6,039 6,797 6,797 2,777 5,656 2017 1,041 5,374 (125) 383 297 422 347 694 CONSOLIDATED (12) - - $’000 (4,531) 5,656 5,374 5,374 9,647 2,677 4,995 3,576 2016 9,905 (130) (875) 808 256 335 386 473 617 44 (4) - 12,393 12,761 $’000 (5,596) (1,342) 6,039 6,797 6,797 2,777 5,656 2017 1,041 5,374 (125) 383 297 422 347 694 (12) - - COMPANY 10,241 $’000 (4,531) 5,656 5,374 5,374 2,677 4,995 3,576 2016 9,905 (130) (875) 808 256 335 386 705 473 (44) (4) - for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Expected to be brought to account within 12 months 12 months within to account brought to be Expected 18. Term deposits Call deposits 19. 12 months after to account brought to be Expected Other financial liabilities expected to be settled after 12 months 12 months after settled to be expected liabilities financial Other 12 months within settled to be expected liabilities financial Other Investment purchased, not securities settled Loans – securitisation special purpose entities Commercial notes 21. Income tax payable 12 months. within settled to be expected are liabilities tax current All 20. deposits. non-current and current of split the for E) 30 note Refer Other benefits employee other and leave Annual leave service Long Company and –Consolidated provisions in Movement 12 months after settled to be expected Provisions 12 months within settled to be expected Provisions Other Employee benefits 22. DEFERRED REVENUE DEPOSITS OTHER FINANCIAL LIABILITIES FINANCIAL OTHER LIABILITY TAX CURRENT PROVISIONS 5,375,917 2,836,818 2,539,099 404,832 404,832 1 Jul 16 1 Jul 255,890 374,898 148,942 29,934 $’000 1,307 4,805 9,465 5,656 9,926 9,926 3,798 1,307 2017 9,926 5,121 195 195 CONSOLIDATED 11 - - - Additions 4,911,888 2,732,372 2,179,516 229,660 327,961 327,961 327,961 98,301 $’000 4,785 4,343 9,465 9,465 2,401 9,454 3,952 2016 5,122 1,417 833 984 431 431 11 - - - Utilisation 5,380,486 1,098,252 1,098,252 2,539,099 2,841,387 1,068,318 340,427 5,825 2 8 757, (4,324) 29,934 $’000 (3,513) 1,307 4,805 9,926 9,926 1,307 2017 9,926 5,121 (800) 195 195 (11) - - - COMPANY 30 Jun 17 Jun 30 2,736,598 4,916,114 2,179,516 754,424 754,424 206,662 754,424 47,762 5 $’000 4,343 9,465 9,465 5,689 9,926 2,401 4,237 9,454 2016 5,122 1,417 984 431 431 11 - - - 47 FinancialFinancial Report Report | | 2016–17 2016–17 48 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Community support reserve support Community 23. of property as described in Note 1J. Note in described as property of revaluation the on decrements and increments unrealised the to record used is reserve surplus revaluation property The tax Deferred gross transfer Depreciation tax Deferred gross Revaluation year of beginning at Balance D environment. economic astressed under portfolio advances and loans the in losses inherent represents and potential the Standards Prudential Authority Regulation Prudential Australian of arequirement is reserve loss credit The profits (to)/from retained Transfer Balance at beginning of year of beginning at Balance C 1Q Note in (i). described as accounting hedge with accordance in hedges effective as designated been have that instruments hedged of value future the represents reserve hedge flow cash The tax Deferred year the during loss and to profit Transferred B operates. Bank which Greater in communities the in facilities and services to provide aside set been has reserve support community The Transfer (to)/from retained profits (to)/from retained Transfer year of beginning at Balance A RESERVES IN MOVEMENT Recognised in equity during the year the during equity in Recognised year of beginning at Balance Business combination reserve reserve surplus revaluation Property reserve loss Credit reserve hedge flow Cash

RESERVES Property RevaluationProperty Surplus Reserve Credit Loss Reserve Reserve Hedge Flow Cash Community Reserve Support 32,090 14,079 12,555 10,699 14,079 $’000 6,835 (1,016) 6,835 6,087 1,524 2017 1,137 (520) (520) (329) (140) (199) (121) 997 403 403 665 422 997 CONSOLIDATED 30,900 12,555 12,555 10,699 $’000 (2,012) 6,087 6,087 2,577 1,254 1,240 1,137 4,952 2016 1,926 9,978 1,137 (372) (137) (115) (117) 422 645 382 422 14,079 29,708 12,555 10,699 14,079 $’000 4,453 (1,016) 4,453 3,706 1,524 2017 1,137 (520) (520) (329) (140) (199) (121) 997 403 403 664 422 997 COMPANY 12,555 28,519 12,555 10,699 $’000 (2,012) 3,706 2,509 2,577 3,706 1,254 1,328 1,137 2016 1,926 9,978 1,137 (398) (137) (115) (117) 422 645 382 422 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes 25. 25. Report. Directors’ the in shown are Directors to the changes of Details Bank. Greater of activities the of directing controlling and planning, the for responsible are who Executives Senior those and Directors the are personnel Key management B Note in 12. disclosed is entities controlled of respect in Information A Transfer (to)/from community contribution reserve reserve loss (to)/from credit Transfer year the in profit Net year of beginning at Balance profits retained in Movement Retained profits 24. merger. on acquired assets net the recognises reserve combination business The profits (to)/from retained Transfer year of beginning at Balance E

RELATED PARTIES RELATED of employment, their seniority and their salary level. salary their and length their seniority upon their dependent employment, of interest of rates concessional at loans for eligible are staff policy, this Under concessional the policy. with loan staff accordance in Executives to Senior provided to loans relate terms non-commercial at granted Loans policy. risk credit normal Company’s the with accordance in cases of majority the in taken is generally. Security to customers available terms and rate interest same the at provided are terms commercial at granted Loans year of end at outstanding Loans year the during made Repayments charged fees and Interest year the during made Advances personnel in changes from balances Net Termination benefits benefits long-term Other Post-employment benefits Key Personnel Management Controlled Entities Business Combination Reserve Business Combination Loans outstanding at beginning of year of beginning at outstanding Loans  ii) employeeShort-term benefits i) paid to Compensation key personnel management RETAINED PROFITS RETAINED Loans to key management personnel (including related parties) related (including personnel key management to Loans 3,402,006 6,300,984 2,893,662 4,275,536 3,048,138 (550,509) (645,770) 292,220 449,143 449,143 421,886 173,589 216,124 10,699 10,699 28,641 $’000 (1,524) 2017 2017 140 CONSOLIDATED CONSOLIDATED $ - - (1,558,546) 3,958,343 3,048,138 ,7,00 3,479,60 1,632,954 ,30, 67 07,6 3 3, (394,380) 421,886 421,886 262,863 394,834 215,880 60,443 10,699 10,699 29,512 $’000 (2,577) 2016 2016 117 $ - - 3,402,006 6,300,984 2,893,662 4,275,536 3,048,138 (550,509) (645,770) 420,804 292,220 447,678 447,678 173,589 216,124 10,699 28,258 10,699 $’000 (1,524) 2017 2017 140 $ - - COMPANY COMPANY (1,558,546) 3,958,343 3,048,138 ,7,00 3,479,60 1,632,954 ,30, 67 07,6 3 3, (394,380) 420,804 420,804 262,863 215,880 394,052 60,443 10,699 10,699 $’000 29,212 (2,577) 2016 2016 117 $ - - 49 FinancialFinancial Report Report | | 2016–17 2016–17 50 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Other audit-related work audit-related Other entity within the consolidated entity consolidated the within entity and prudential regulation reporting of any statements financial the for services Auditing entity: parent the of auditor by the provided services for payable or paid were fees following the year the During PricewaterhouseCoopers Australia 26. entities: following the with transactions party related has Company The C

Deposits outstanding at the beginning of year of beginning the at outstanding Deposits parties) related (including personnel by key management made Deposits iii) iii) ii) i) Transactions with Other Related Parties disclosure. above the in included are amounts These payable. are fees transaction no which upon account adeposit member staff each provides Company The year the of end the at outstanding Deposits Net movement in deposits during the year the during deposits in movement Net Interest paid personnel in changes from balances Net REMUNERATION OF AUDITORS OF REMUNERATION       Greater Charitable Foundation invests funds with the Company. At balance date these deposits totalled totalled deposits these date At balance Company. the with funds invests Foundation Charitable Greater of $324,000 for nil consideration. Previously, administrative services were provided for consideration (2016 $391,000). consideration for provided were services administrative Previously, consideration. nil for $324,000 of foundation to the services administrative provided Company the year, the During foundation. to the $1,200,000) (2016 $1,200,000 donated Company the year the During purpose. acharitable promote or to advance persons or entities to other distributions of provision the are activities principal Trust’s (2016 The $1,966,000). $2,130,000 Trust No 1. At balance date the units had a value of $31,000,000 (2016 $20,000,000). $31,000,000 of avalue had units the date 1. No Funding At balance Trust Secured GBS in units holds Company the addition, In (2016 $425,000,000). $700,000,000 of avalue had units the date At balance Trust. Repo Receivables GBS with units the all holds also Company (2016 The $2,168,850). $2,182,000 totalled (2016 $5,111,000) deposits the $3,274,000 of and avalue had units the date Trust At balance 4. No Receivables GBS with funds invests and in units holds Company The loans. mortgage to access by securitising Company the funding allow that entities purpose special are trusts These mortgages. securitised the of servicer as acting as well 1as No Trust Funding Secured GBS and Trust Repo Receivables GBS 4, No Trust Receivables to GBS facilities commitment redraw and swap rate interest swap, basis custodian, provides Company The administration services to the entity for $NIL (2016 $NIL) consideration. consideration. (2016 $NIL) $NIL for entity to the services administration provides 1. Company No The Trust Funding Secured GBS and Trust Repo Receivables GBS 4, No Trust Receivables GBS for manager the as acts entity The entity. to the commitment support afinancial including agreement asupport provided has Company the licence, AFS entities’ the of support In (2016 $2,259,000). $2,439,000 totalled deposits these date At balance Company. the with funds Ltd invests Pty Services Investment Greater 1,670,136 2,790,202 382,038 (673,667) (493,676) 366,548 15,490 72 7 47,27 2017 CONSOLIDATED $ 2,790,202 , 61,211 2,4 429,363 369,036 77 62 0 7, 27 60,327 56,100 (4,171) 2016 $ 2,790,202 1,670,136 (673,667) (493,676) 322,316 310,661 72 7 47,27 1655 5 11,6 2017 $ COMPANY

2,790,202 , 61,211 2,4 368,753 77 62 0 7, 27

314,936 56,100 53,817 (4,171) 2016

$ for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Increase/(decrease) in creditors and accrued expenses accrued and creditors in Increase/(decrease) payable taxes income in Increase/(decrease) revenue deferred in Increase/(decrease) expenditure prepaid and debtors sundry in Decrease/(increase) assets tax deferred net in Decrease/(increase) Decrease/(increase) in other receivables Decrease/(increase) in accrued interest receivable Increase/(decrease) in accrued interest payable NET CASH PROVIDED BY OPERATING ACTIVITIES BY OPERATING PROVIDED CASH NET Increase/(decrease) in deposits Decrease/(increase) in investment securities Decrease/(increase) and in loans advances provisions other in Increase/(decrease) properties investment of movement value Fair buildings and land of movement value Fair equipment and plant property, of sale on Loss equipment and plant property, sale on Profit investments of sale on Profit loans on losses/(gains) Impaired Depreciation and amortisation tax income after profit Operating Tax Income After Profit Operating to Activities by Operating Provided 29. constitution. by the prescribed as accommodation financial providing and deposits taking of form the in to products customers and services financial of provision the being segment business to one confined are operations Bank’s Greater 28. Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows as payable are leases operating to non-cancellable relation in payments lease minimum for Commitments rights. renewal and clauses escalation terms, varying have leases within The to years. seven two expiring leases operating non-cancellable under offices Branch and ATM locations various leases Bank Greater 27. Later than five years five than Later years five than later not but year one than Later RECONCILIATION OF NET CASH NET OF RECONCILIATION REPORTING SEGMENTAL Within one year one Within Lease commitments COMMITMENTS (130,344) (351,764) 464,360 20,366 13,489 14,198 28,641 $’000 (1,267) (1,094) 6,877 1,225 1,077 2017 4,915 (383) (236) (642) (159) (801) 139 167 461 (64) (65) 32 CONSOLIDATED - (221,270) (64,506) 216,723 (91,158) 18,375 29,512 $’000 10,912 (4,373) (1,455) (1,597) 3,229 1,055 ,438 3 4 7, 2016 1,155 4,211 (183) (132) (691) 325 (44) (55) 141 25 97 4 (270,357) (350,063) (414,520) 464,703 20,366 28,258 13,489 $’000 (2,319) (1,094) 6,877 1,077 2017 4,915 (383) (236) (642) (159) (801) (414) 139 819 461 (64) (65) 31 - COMPANY (221,255) (109,775) (84,258) 217,678 18,375 $’000 10,912 29,212 (1,455) (3,140) (1,597) (4,219) 3,229 1,040 ,438 3 4 7, 2016 1,612 4,211 (223) (133) 325 (55) 141 45 25 97 4 51 FinancialFinancial Report Report | | 2016–17 2016–17 52 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Standards arising from AASB 9 AASB from arising Standards are adequate having regard to the risks they are designed to control. designed are they risks to the regard having adequate are reporting timely adequate processes, and limits, compliance reporting demonstrating that these prudential of management risk systems are to aseries operating effectively adherence and requiring and setting including risks, those to monitor systems established has Board The Bank. Greater facing key risks identified have Board the and Management Senior that to APRA certifies annually Officer Executive Chief the addition, In circumstances. changing of to account take Board the and management by senior annually reviewed are procedures and to policies likely The Bank. by Greater faced be non-financial, and financial risks, key material address systems These systems. control and management risk its comprise that controls and processes procedures, and policies Bank’s Greater identify Policies Management Risk These (APRA). Authority Regulation Prudential Australian by the issued requirements Standards Prudential minimum to meet required, as areas specific covering policies written as well as management, risk overall the for principles written provides Board The Board). (the Directors of Board by the approved policies under Executives, Management Senior of comprising Committee, Executive by the out carried is management Risk basis. aquarterly on Committee Risk Board to the presented and by management risks reviewed These risk. formally are each of assessment an and risks the to manage used mitigants risk and controls risk the risks, the all identified records system This system. management risk wide enterprise an using managed and monitored are Risks risk. liquidity and risk credit risk, market risks: key financial following to the exposed are activities Bank’s Greater securities. Accordingly, investment or liquid quality high in invested is funding Surplus standings. credit of arange with rates and floating fixed both at borrowers to retail lends and periods various for rates floating and fixed both at customers accepts from deposits predominantly Bank Greater instruments. financial of use to the related principally are activities Bank’s Greater B 9 AASB adopted early Bank Greater cost amortised at measured liabilities Financial instruments hedging designated are that liabilities Financial Financial liabilities instruments hedging designated are that assets Financial income comprehensive other through value Fair cost amortised at measured assets Financial Financial assets are liabilities and assets financial of categories following the of amount carrying The A 30. 30.

Risk Management Framework Financial Assets and Liabilities RISK MANAGEMENT AND FINANCIAL INSTRUMENTS FINANCIAL AND MANAGEMENT RISK from 1 July 2010. 1July from Financial Instruments Financial and AASB2009-11 AASB2009-11 and 5,794,858 6,239,523 5,793,509 6,238,940 $’000 1,349 2017 320 263 CONSOLIDATED Amendments to Australian Accounting Accounting Australian to Amendments 5,252,633 5,673,246 5,672,234 5,251,897 $’000 2016 320 736 692 6,934,886 6,494,154 6,492,805 6,933,700 $’000 1,349 2017 923 263 COMPANY 5,683,916 6,100,978 6,099,363 5,683,180 $’000 2016 923 736 692

for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Financial InstrumentsFinancial InstrumentsFinancial InstrumentsFinancial InstrumentsFinancial curve. yield the in change point abasis of value present by the measured risk, rate to interest exposure Bank’s Greater and Company’s the out set tables following The rates. interest market published relevant the on based is model PVBP the in used curve yield The horizon. time year afive over bucket time each into allocated evenly are movements rate to interest sensitive not are that balances account transaction of portion remaining the while bucket time months’ three than less the into rates interest in to movements sensitive is that balances account transactional the of portion the allocates model The rates. interest in to movements sensitivity limited have historically and customers from raised liabilities are accounts transactional At call accounts. transactional ‘at call’ for except repricing contractual on based buckets time over spread are liabilities and assets financial from flows cash the model PVBP the For hedge accounting. use may Bank Greater purpose, above the for used are swaps rate interest When securities. investment of placement maturity by the or instruments, derivative other or swaps rate interest of use by the preferences, purchasing product consumer to change terms product or pricing to product of, changes by, acombination or managed is risk The limit. portfolio overall an with together periods time specific for placed are limits The management. active requires risk the before variance point basis to ahypothetical exposed liabilities or assets net of value fair the in movement of for amount the limits has policy The curve. yield rate interest the in (0.01%) change point basis one every for instruments financial of value fair the on effect net the measures PVBP rates. interest in movement (PVBP) point abasis of value terms in present net the of risk rate interest measures policy Current risk. rate interest of level the for limits policy established has Bank Greater rates. interest in movements upon dependent are liabilities and assets these from generated flows cash and balances net the because risk rate interest an creates exposure This arrangements. funding customers from wholesale raised other and deposits includes liabilities rate fixed long-term while securities, investment other and advanced to customers loans include assets rate fixed Long-term liabilities. or assets rate floating in invested by or funded are which liabilities or assets rate fixed long-term from flows cash in difference net the from arises risk rate interest Bank’s Greater risk. price other or exchange to foreign exposed not is Bank Greater risk. rate interest to is exposed is Bank Greater that risk market predominant The C Net Exposure ($’s) Exposure Net Net Exposure ($’s) Exposure Net Net Exposure ($’s) Exposure Net Net Exposure ($’s) Exposure Net

Market Risk Market Less than 3 Less than 3 Less than 3 Less than 3 months months months months 10,207 1 5 5 3 11, 1 366 11, 10,211 PRESENT VALUE OF BASIS POINT (PVBP) PROFILE 2016 –CONSOLIDATED (PVBP) PROFILE POINT BASIS VALUE OF PRESENT PRESENT VALUE OF BASIS POINT (PVBP) PROFILE 2017 –CONSOLIDATED (PVBP) PROFILE POINT BASIS VALUE OF PRESENT PRESENT VALUE OF BASIS POINT (PVBP) PROFILE 2016 –COMPANY (PVBP) PROFILE POINT BASIS VALUE OF PRESENT PRESENT VALUE OF BASIS POINT (PVBP) PROFILE 2017 –COMPANY (PVBP) PROFILE POINT BASIS VALUE OF PRESENT 3 to 3 to 12 months 3 to 3 to 12 months 3 to 3 to 12 months 3 to 3 to 12 months 5,225 5,290 9,384 9,361 1 to 3years 1 to 1 to 3years 1 to 1 to 3years 1 to 1 to 3years 1 to (30,462) (30,266) (19,987) (19,696) 3 to 5years 3 to 3 to 5years 3 to 3 to 5years 3 to 3 to 5years 3 to (13,290) (12,940) 20,990 21,365 Over 5years Over Over 5years Over Over 5years Over Over 5years Over (9,826) (9,826) (1,928) (1,928) (18,625) 1, 8) 0 (17,9 Total Total Total Total 868 270

53 FinancialFinancial Report Report | | 2016–17 2016–17 54 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Loans and advances assets transferred of amount Carrying value. carrying their approximates liabilities assets associated and transferred the of value fair The liabilities. associated the and loans of value carrying the out sets following The advances’. and ‘loans as assets these recognise to continues Bank Greater loans, these of rewards and risks the all substantially of retention to the Due from loans. risk these credit some and risk operational risk, market the retains still Company The holders. unit to the transferred been has risk credit the of component Asubstantial loans. the from arising flows cash by the secured to notes holders note commercial issue vehicles purpose special These vehicles. purpose to special assigned equitability are Loans arrangements. securitisation backed mortgage residential of anumber into entered has Company The deposit. on held funds over by a charge or property estate real over mortgage by aregistered secured are guarantees Such parties. to certain given guarantees to financial relation in arises also risk Credit loans. personal some and cards credit via loans for taken is security No a loan. to parties related from sought also are guarantees appropriate, Where deposit. on held funds against charges or property other over mortgage estate, real over mortgage registered either of form the in is loans personal for Security estate. real commercial and/or residential over mortgage registered of form the in is loans for commercial Security estate. real property residential over mortgage registered of form the in is loans housing for Security applicants. loan grade risk credit of category aspecific in concentrated not is portfolio the to ensure also and exposure credit aspecific represent that products to certain exposure Bank’s Greater to limit seek limits portfolio These grade. risk credit each for loan and each for product limits portfolio imposes Company The Queensland. South-East and Wales South New of Coast North and West Central Coast, Sydney, Coast, South Valley, Central Hunter Newcastle, of markets finance Bank retail the in Greater in. active is participates Bank Greater that area market to the limited is risk to credit Exposure customers. of individual number large arelatively with by dealing to loans relation in risk credit of concentration minimises Bank Greater request. credit the for purpose or reason the and provided security the grade, risk credit applicant’s loan the of acombination upon to dependent offered is pricing applicants The loan credit. of granting the assessing in consideration important an remains still Security criteria. above the on based applicants loan grades or scores that used is system grading risk acredit this, To facilitate residency. of stability and accumulation asset employment, of stability and length as such the factors other to service also but loan ability the only not considering applicant the of worthiness credit the assesses policy risk credit The insurance. credit undertaking warrants risk credit where and made loans of majority the for security obtaining applicant, loan individual each of assessment by prudent minimised is loans for exposure risk Credit needs. liquidity prudential for made investments or to customers provided loans either is Bank Greater for risk to credit exposure main The entity. consolidated the with contractual obligations their meet not will counterparties that risk the from arises predominantly risk credit Bank’s Greater D amount of credit exposure to individual counterparties and limit portfolio exposures based on external credit rating rating credit agency bands. external on based exposures portfolio limit and counterparties the to limit individual that exposure policies credit of has amount also Bank Greater institutions. financial to pre-approved transactions by limiting minimised to counterparties is transactions) derivative and cash securities, investment (i.e. transactions treasury for exposure risk Credit Commercial notes assets transferred the to liabilities associated of amount Carrying

Credit Risk 365,823 375,162 $’000 2017 CONSOLIDATED 328,283 320,758 $’000 2016 365,823 375,162 $’000 2017 COMPANY

328,283 320,758

$’000 2016

for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Other financial assets (unsecured) financial Other security - no security - other property other over - mortgage security property residential over - mortgage Loans and advances - A1+/AAA Derivative financial instruments Other receivables (unsecured) Unrated - - BBB - BBB+ - A3 A2/A+/A/A- - A1/AA+/AA/AA- - - A1+/AAA (S&P) rating credit –by external securities Investment Unrated - - A3 A2/A+/A/A- - A1/AA+/AA/AA- - - A1+/AAA (S&P) rating credit –by external equivalents cash and Cash hand on Cash impaired nor due past neither are that assets Financial security. of type or rating credit external by either impaired or due past neither are that assets risk financial for credit of analysis an provides table following The provided. security the or available) (if rating credit external to the by reference assessed be can impaired nor due past neither are that assets financial of quality credit The security. any of value the account into take not does exposure maximum This 1B). Note (refer vehicle purpose to aspecial transferred is risk credit securitised, are that loans For (2016 $4,229m). $4,535m Company the for and (2016 $4,229m) $4,535m is Bank Greater for exposure risk credit maximum the advances and loans For advances. and loans for except sheet balance the in indicated these of amount carrying the is assets financial recognised of class to each relation in date balance at risk to credit exposure maximum The 5,794,845 4,321,691 200,663 232,049 120,493 431,432 93,389 56,037 64,875 69,860 83,136 69,896 $’000 29,674 8,846 4,973 2017 4,197 3,051 320 263 CONSOLIDATED - - 5,250,554 4,033,337 350,068 145,032 374,709 30,084 28,005 92,702 10,046 49,724 61,879 $’000 23,891 18,917 7647 17,6 1 876 11, 2016 1,625 320 692 - - - 6,490,207 4,321,691 232,049 120,493 431,432 937,118 93,389 56,037 64,875 69,860 36,149 69,896 $’000 29,674 8,889 8,299 4,973 2017 4,197 923 263 - - COMPANY

5,678,286 4,033,337

350,068 374,709 9,311 597, 30,084 28,005 32,506 92,702 10,046 18,944 49,724 $’000 23,891 7647 17,6 1 876 11,

2016 5,821 923 692 - - - 55 FinancialFinancial Report Report | | 2016–17 2016–17 56 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes

TOTAL Security No Security Other Property Other Over Mortgage Loans amount. overdue the than rather value, carrying the is included amount The missed. been has terms contractual under payment any when due past to be considered is Aloan below. table the in out set is impaired not but due past are that loans of analysis age An impaired not but due past are that Loans TOTAL No Security No Security Other Property Other Over Mortgage Loans Loans TOTAL Security No Mortgage Over Other Property Other Over Mortgage Loans unsecured are consumer loans or credit cards. security no with Loans guarantees. secured and loans consumer secured plus property, by secured non-residential loans commercial plus 80% than more of ratio to valuation aloan or insurance mortgage no or partial with either loans secured residentially are secured as classed Loans less. or 80% of ratio to valuation aloan with or insurance mortgage full either with loans secured residentially are Secured’ ‘Fully as classed Loans below. table the involved in shown risk is credit of degree the and loans the of value carrying the risk, credit the bears Bank Greater where loans For risk credit the bears entity consolidated the where loans –all collateral of Effect Other Security Other Mortgage Over Residential Property Residential Over Mortgage Mortgage Over Residential Property Residential Over Mortgage Mortgage Over Residential Property Residential Over Mortgage ALL LOANS WHERE ENTITY BEARS THE CREDIT RISK 2016 – CONSOLIDATED AND COMPANY AND 2016 –CONSOLIDATED RISK CREDIT THE BEARS ENTITY WHERE LOANS ALL ALL LOANS WHERE ENTITY BEARS THE CREDIT RISK 2017 – CONSOLIDATED AND COMPANY AND 2017 –CONSOLIDATED RISK CREDIT THE BEARS ENTITY WHERE LOANS ALL LOANS – PAST DUE BUT NOT IMPAIRED 2017 – CONSOLIDATED AND COMPANY AND 2017 –CONSOLIDATED IMPAIRED NOT BUT –PAST DUE LOANS Fully SecuredFully Fully SecuredFully Less than 3 months 3,914,703 4,181,837 3,914,703 4,181,837 73,964 62,824 10,410 $’000 $’000 $’000 560 170 ------Secured Secured months 276,780 271,908 209,967 196,961 28,603 7 6 3 3 57, $’000 $’000 $’000 3 to 6 6 3 to 51,216 2,563 4,605 2,180 288 95 - - -

No Security No No Security No 6 months or more 37,354 81,164 7 4 5 3 37, $’000 $’000 $’000 81,164 3,799 3,245 143 411 ------

4,228,837 4,534,909 4,391,804 ,1,64 4,111,66 80,326 28,603 68,249 7 6 3 3 57, 7 4 5 3 37, 10,410 $’000 $’000 $’000 51,216 81,164 4,605 Total Total Total Total Total 1,259 408 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Mortgage Over Residential Property Residential Over Mortgage TOTAL Security No Security Other Property Other Over Mortgage Loans amount. carrying loan the than less is value if or security the security no is there if ‘Unsecured’ as classed is Aloan security. property a non-residential have that Secured’ loans ‘Fully other and considered not loans secured residentially other includes Secured’ ‘Partially less. or 80% of ratio to aloan valuation with or insurance mortgage full either with secured residentially is it when Secured’ ‘Fully deemed is A loan collateral. subject to the peculiar circumstances the and situations similar in loans of types similar with experience its given held collateral of value realisable estimated the of assessment management’s and collateral such of respect in held currently valuations formal of acombination on based is held collateral of value realisable estimated The below. table the in shown is impaired not but due past are that loans of support in held by collateral provided coverage The Mortgage Over Residential Property Residential Over Mortgage Mortgage Over Residential Property Residential Over Mortgage Other Security Other Property Other Over Mortgage Security No Security Other Property Other Over Mortgage Loans TOTAL Security No Loans TOTAL EFFECT OF COLLATERAL – PAST DUE BUT NOT IMPAIRED 2017 – CONSOLIDATED AND COMPANY AND 2017 –CONSOLIDATED IMPAIRED NOT BUT –PAST DUE COLLATERAL OF EFFECT EFFECT OF COLLATERAL – PAST DUE BUT NOT IMPAIRED 2016 – CONSOLIDATED AND COMPANY AND 2016 –CONSOLIDATED IMPAIRED NOT BUT –PAST DUE COLLATERAL OF EFFECT LOANS – PAST DUE BUT NOT IMPAIRED 2016 – CONSOLIDATED AND COMPANY AND 2016 –CONSOLIDATED IMPAIRED NOT BUT –PAST DUE LOANS Fully SecuredFully Fully SecuredFully Less than 3 months 63,628 63,628 24,567 74,139 96,151 $’000 70,317 $’000 $’000 74,139 898 369 ------Secured Secured Partially Partially Partially Partially months $’000 $’000 $’000 3 to 6 6 3 to 3,859 5,973 2,759 2,545 4,621 1,020 2,241 408 944 598 136 78 - - -

Unsecured Unsecured 6 months or more 24,884 10,725 24,567 10,410 $’000 $’000 $’000 3,972 3,518 303 315 151 317 - - - - -

102,882 102,882 80,326 68,249 76,380 24,567 24,567 10,410 $’000 76,380 $’000 $’000 Total Total 1,259 Total Total Total 1,337 1,337 408 598 598

57 FinancialFinancial Report Report | | 2016–17 2016–17 58 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes has established policy limits around the minimum level of liquidity and the quality of liquid assets that it holds for liquidity liquidity for holds it that management purposes. assets liquid of quality the and liquidity of level minimum the around limits policy established has Bank Greater events. flow cash unexpected of arange for to provide also but events flow cash only to to expected not respond securities marketable highly and cash sufficient by maintaining risk liquidity manages Bank Greater liabilities. obligations its financial with financing associated in difficulties encounter will Bank Greater that risk the from arises risk liquidity Bank’s Greater E impaired. not but due past loans the as basis same the on is ‘Unsecured’ and Secured’ ‘Partially Secured’, ‘Fully as aloan of classification The loans. impaired of support in held by collateral provided coverage assessment the of and impairment for provision the with along loans, impaired of amount gross the shows table following The impaired are that Loans Mortgage Over Residential Property Residential Over Mortgage Property Residential Over Mortgage TOTAL Carrying Amount Carrying Provision Impairment Security No Security Other Property Other Over Mortgage Loans Amount Carrying Provision Impairment TOTAL Security No Security Other Property Other Over Mortgage Loans

Liquidity Risk Liquidity EFFECT OF COLLATERAL – IMPAIRED LOANS 2016 – CONSOLIDATED AND COMPANY AND 2016 –CONSOLIDATED LOANS –IMPAIRED COLLATERAL OF EFFECT COMPANY AND 2017 LOANS –CONSOLIDATED –IMPAIRED COLLATERAL OF EFFECT Fully SecuredFully SecuredFully $’000 $’000 ------Secured Secured Partially Partially Partially $’000 $’000 2,102 1,904 1,864 1,617 1,631 1,947 (287) (471) 155 40 - - - - Unsecured Unsecured $’000 $’000 (737) (753) 858 858 158 121 911 911 ------

(1,224) (1,023) $’000 $’000 2,762 3,013 1,789 1,739 Total Total Total 1,864 1,947 858 155 911 40 - - for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Derivatives Deposits LiabilitiesFinancial commitments loan Unrecognised TOTAL Other liabilities financial Derivatives Deposits LiabilitiesFinancial liabilities. financial of maturity contractual the show tables following The Other liabilities financial Derivatives Deposits LiabilitiesFinancial commitments loan Unrecognised TOTAL Other liabilities financial commitments loan Unrecognised TOTAL accruals other and Payables accruals other and Payables accruals other and Payables Less than Less than Less than 3 months 3 months 3 months 4,064,710 3,978,925 3,701,753 3,933,868 3,682,371 3,929,299 1,851 8 117, 88,716 88,716 1453 5 11,4 $’000 $’000 $’000 79 3 37,94 12,761 70,115 9,488 9,647 230 230 247

FINANCIAL LIABILITIES CONTRACTUAL MATURITY PROFILE 2017 –CONSOLIDATED PROFILE MATURITY CONTRACTUAL LIABILITIES FINANCIAL FINANCIAL LIABILITIES CONTRACTUAL MATURITY PROFILE 2017 –COMPANY PROFILE MATURITY CONTRACTUAL LIABILITIES FINANCIAL 2016 –CONSOLIDATED PROFILE MATURITY CONTRACTUAL LIABILITIES FINANCIAL 1,236,269 1,071,736 1,002,283 1,097,016 1,013,181 1,013,181 months months months months months 222,575 3 to 12 to 3 3 to 12 to 3 12 to 3 83,322 $’000 $’000 $’000 69,137 513 513 316 ------

915,280 423,415 679,726 402,698 402,698 233,949 276,599 189,373 512,153 years years years years years $’000 $’000 $’000 1 to 3 3 1 to 1 to 3 3 1 to 3 1 to 429 429 93 ------

153,616 122,700 45,554 35,056 30,739 30,739 years years years years years $’000 $’000 $’000 7 61 8 37, 3 to 5 5 3 to 3 to 5 5 3 to 5 3 to 4,140 7,613 177 177 80 ------

122,973 122,973 Over 5 5 Over Over 5 5 Over 5 Over years years years years years $’000 $’000 $’000 2,828 2,828 7,774 , 74 7,7 ------

5,250,232 6,492,848 5,380,486 5,793,551 1,098,252 4,911,888 5,375,917 404,832 327,961 88,716 88,716 1453 5 11,4 $’000 $’000 $’000 12,761 70,115 Total Total Total 1,349 1,349 9,647 736

59 FinancialFinancial Report Report | | 2016–17 2016–17 60 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Deposits of level 3 financial assets and liabilities has not changed during the Financial Year. Financial the during changed not has liabilities and assets 3financial level of value carrying The shares. the of value cost the exceeding in invested entities the of assets tangible net by the supported is which cost, at investments these measures therefore Company The value. afair to estimate used be can that inputs reliable no are there where trusts unit in units and shares non-traded include and in out set as illiquid are entities Note investments 12. controlled These including entities, non-listed in investments are liabilities and assets Level 3financial categories. between transferred were liabilities or assets no period reporting financial the During 2. level in included are instruments These flows. cash future estimated of value present the as calculated is interest of swaps rate value fair The period. reporting each of end the at existing conditions market on based are that assumptions makes and methods of avariety uses entity consolidated The techniques. valuation using determined is derivatives) over-the-counter example (for market active an in traded not are that liabilities and assets financial of value fair The 1. level in included are instruments These price. bid current the is entity consolidated by the held assets financial for used price market quoted The period. reporting the of end the at prices assets) market quoted on based financial is equity traded publicly as (such markets active in traded liabilities and assets financial of value fair The F commitments loan Unrecognised TOTAL Other liabilities financial Derivatives LiabilitiesFinancial accruals other and Payables

Fair Value Measurements Less than 3 months 3,686,597 3,755,112 58,027 10,241 $’000 70,115 247

FINANCIAL LIABILITIES CONTRACTUAL MATURITY PROFILE 2016 –COMPANY PROFILE MATURITY CONTRACTUAL LIABILITIES FINANCIAL 1,002,283 1,151,234 months months 148,635 3 to 12 to 3 $’000 316 - -

562,868 373,402 189,373 years years $’000 1 to 3 3 1 to 93 - -

119,842 years years $’000 81,901 7 61 8 37, 3 to 5 5 3 to 80 - -

Over 5 5 Over 92,459 92,459 years years $’000 - - - -

5,681,515 4,916,114 754,424

$’000 10,241 70,115 Total 736

The following tables present Greater Bank’s financial assets and liabilities measured and recognised at fair value as at the the at as value date.reporting fair at recognised and measured liabilities and assets financial Bank’s Greater present tables following The 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes Interest rate swap contracts – cash flow hedges flow –cash contracts swap rate Interest 1 LEVEL ASSETS TOTAL LIABILITIES value fair –at contracts swap rate Interest hedges flow –cash contracts swap rate Interest 3 LEVEL value fair –at contracts swap rate Interest hedges flow –cash contracts swap rate Interest 2 LEVEL value fair –at contracts swap rate Interest hedges flow –cash contracts swap rate Interest 1 LEVEL LIABILITIES TOTAL ASSETS Equity financial assets value fair –at contracts swap rate Interest hedges flow –cash contracts swap rate Interest 3 LEVEL Equity financial assets value fair –at contracts swap rate Interest hedges flow –cash contracts swap rate Interest 2 LEVEL Equity financial assets value fair –at contracts swap rate Interest Fair Value Measurements Consolidated Consolidated $’000 1,349 1,349 2017 FINANCIAL ASSETS AND LIABILITIES –CONSOLIDATED LIABILITIES AND ASSETS FINANCIAL 583 320 263 ------Consolidated Consolidated $’000 1,012 2016 2016 736 320 736 692 ------Company $’000 1,349 1,349 2017 583 320 263 ------Company $’000 1,615 2016 2016 736 923 736 692 ------61 FinancialFinancial Report Report | | 2016–17 2016–17 62 Financial Report | 2016–17 for the year ended 30 June 2017 June 30 ended year the for Statements Financial the of Forming and to Part Notes The Directors have the power to amend and reissue the financial report. financial the reissue and to amend power the have Directors The 2017. September of day 26th the on Directors by the issue for authorised was report financial The 2303 NSW Hamilton Street Tudor 103 Limited Bank Greater is: business of place principal and office registered The Australia. in domiciled and incorporated guarantee, and by shares limited acompany 956) 651 is 087 88 (ABN Limited Bank Greater 32. requirements. reporting prudential Bank’s Greater with consistent are but unaudited, are results These www.greater.com.au/legal/regulatory-disclosures at: viewed be can results capital Bank’s Greater source. income non-interest significant each plus lending portfolios, and investment the weighting risk on based measured is risk Operational exposures. sheet balance off and assets sheet balance to on associated risk of levels varying the to reflect seek that to assets weightings allocating on measured is based risk Credit risk. operational and credit measuring for approach standardised the adopted has Bank Greater reserve. loss credit the and liabilities subordinated qualifying includes 2capital Tier reserve. income comprehensive other through assets value fair the excludes It purposes. adequacy capital for differently treated are but equity in included are that to items relating other and adjustments use general for regulatory available balances reserve reserves, property earnings, retained generally 1is Tier Equity Common tiers. two into split is Capital assets. weighted to risk capital of aratio as measured is adequacy Capital by APRA. required minimum the above capital of level additional an imposing of apolicy has Year. Board The Financial previous and current the throughout Standards Prudential by the imposed requirements capital the met has Bank Greater assets. weighted to risk capital of levels minimum to maintain Bank Greater requires APRA adequacy’). ‘capital as (known Standards Prudential the of requirements the with accordance in basis weighted arisk on capital report and to measure by APRA required is Bank Greater (APRA). Authority Regulation Prudential Australian by the issued Standards Prudential the of requirements the with consistent are policies above The (ICAAP) Summary Statement. Their objectives are to ensure that Greater Bank maintains a level of capital that is: is: that capital of alevel maintains Bank Greater that to ensure are objectives Their Statement. Summary (ICAAP) Process Assessment Adequacy Capital Internal and Policy Management aCapital established has Bank Greater 31.

 activities; its to from exposed is Bank Greater risks to the appropriate and consistent sufficient to provide depositors and creditors confidence that Greater Bank will continue to honour its obligations to them. to obligations its honour to continue will Bank Greater that confidence creditors and depositors provide to sufficient and addressed; being is problem the while operating to continue it enable problem, major any of event the in and, activities its from losses unanticipated any absorb to buffer a provide to sufficient COMPANY DETAILS COMPANY CAPITAL MANAGEMENT

63 FinancialFinancial Report Report | | 2016–17 2016–17 64 Financial Report | 2016–17 65 FinancialFinancial Report Report | | 2016–17 2016–17

Carley – Stroud Back cover: Top to bottom Row 1: Lori & Michael – Hope Island Row 2: Paige – Charlestown Row 3: Farnhams Butchery – Wallsend & Fletcher Row 4: Alex – Singleton Row 5: Sonya & Michael – Lennox Head Head Off ice: 103 Tudor Street Hamilton NSW 2303  PO Box 173 Hamilton NSW 2303 P 1300 651 400 F 02 4921 9112 Greater Bank Ltd. ABN 88 087 651 956. AFSL/Australian Credit Licence No. 237476.