AMP : Bank Limited FY25 Financial Statements

About this update from Amp Limited

AMP Bank Limited ABN 15 081 596 009 Annual Report for the year ended 31 December 2025 Table of Contents AMP Bank Limited ABN 15 081 596 009 FULL YEAR ANNUAL REPORT 31 December 2025 DIRECTORS' REPORT 3 AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF AMP BANK LIMITED 5 INCOME STATEMENTS 6 STATEMENTS OF COMPREHENSIVE INCOME 7 STATEMENTS OF FINANCIAL POSITION 8 STATEMENTS OF CHANGES IN EQUITY 9 STATEMENTS OF CASH FLOWS 10 NOTES TO THE FINANCIAL STATEMENTS 11 BASIS OF PREPARATION 11 NET INTEREST INCOME 14 OTHER GAINS AND LOSSES 15 OPERATING EXPENSES 15 INCOME TAX 16 DUE FROM BANKS 17 DEBT SECURITIES 18 LOANS AND ADVANCES 19 INTANGIBLES 22 OTHER ASSETS 22 DUE TO BANKS 23 DEPOSITS AND OTHER BORROWINGS 23 EMPLOYEE PROVISIONS 24 DEBT SECURITIES ON ISSUE 24 OTHER LIABILITIES 24 SUBORDINATED DEBT 25 DIVIDENDS AND DISTRIBUTIONS 25 CONTRIBUTED EQUITY 26 COMMITMENTS 26 AUDITOR'S REMUNERATION 27 RELATED PARTY DISCLOSURES 27 NOTES TO THE STATEMENTS OF CASH FLOWS 29 OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES 30 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING 31 RISK MANAGEMENT 33 TRANSFERRED ASSETS 41 FAIR VALUE INFORMATION 42 BANK CONTROLLED ENTITY HOLDINGS 45 CAPITAL ADEQUACY 46 EVENTS OCCURRING AFTER REPORTING DATE 47 CONSOLIDATED ENTITY DISCLOSURE STATEMENT 48 DIRECTORS' DECLARATION 49 INDEPENDENT AUDITOR'S REPORT 50 Registered Office: Level 29 Quay Quarter Tower, 50 Bridge Street Sydney NSW 2000 Australia AMP Bank Limited, a company limited by shares, is incorporated and domiciled in Australia. AMP Bank Limited Directors' Report for the year ended 31 December 2025 The directors of AMP Bank Limited (the Company) present their report for the consolidated entity (the Bank) consisting of AMP Bank Limited and the entities it controlled during the financial year ended 31 December 2025. Directors The directors of the Company during the year ended 31 December 2025 and up to the date of this report are shown below. The directors were in office for this entire period except where stated otherwise: Alexis George Andrew Best Rahoul Chowdry Linda Elkins (appointed as a director on 1 September 2025) Mike Hirst Kathleen Bailey-Lord Anna Leibel Michael Sammells Andrea Slattery (resigned as a director on 31 August 2025) Principal activities AMP Bank Limited is an Australian retail bank offering housing loans, deposits, and transaction banking for around 172,000 (2024: 185,000) customers. It also has a small business finance portfolio that supports the financial advisers and mortgage brokers' network. The Company distributes through brokers, financial advisers, and direct to retail customers via phone and internet banking. Review of operations and results The result for the year ended 31 December 2025 was a consolidated statutory loss after tax of $1m (2024: $33m profit). Dividends & distributions During the year ended 31 December 2025, the Company declared and paid $39m (2024: $35m) of dividends to its immediate parent company, AMP Financial Investment Group Holdings Limited, and paid $19m (2024: $20m) of distributions on capital notes to AMP Limited. Details of dividends and distributions paid and declared during the year are disclosed in Note 17 of the financial report. Significant changes in the state of affairs There were no significant changes in the state of affairs during the year. Environmental regulations The Company's operations are not subject to any particular and significant environmental regulation under a Law of the Commonwealth or a State or Territory. Events occurring after reporting date As at the date of this report and except as otherwise disclosed, the directors are not aware of any other matters or circumstances that have arisen since the reporting date that have significantly affected, or may significantly affect, the consolidated entity's operations; the results of those operations; or the consolidated entity's state of affairs in future periods. Likely developments In the opinion of the directors, disclosure of further information about likely developments in the Company's business is commercially sensitive and would likely be detrimental and result in unreasonable prejudice to the Company. AMP Bank Limited Directors' Report (continued) for the year ended 31 December 2025 Indemnification and insurance of directors and officers Under its Constitution, the Company indemnifies, to the extent permitted by law, all current and former officers of the Company (including the directors) against any liability (including the reasonable costs and expenses of defending proceedings for an actual or alleged liability) incurred in their capacity as an officer of the Company, unless the liability did not arise out of conduct in good faith. This indemnity is not extended to current or former employees of the AMP group against liability incurred in their capacity as an employee, unless approved by the AMP Limited Board. During, and since the end of, the year ended 31 December 2025, AMP Limited (the Company's ultimate parent company) maintained, and paid the premium for directors' and officers' and company reimbursement insurance for the benefit of all of the officers of the AMP group (including each director, secretary and senior manager of the Company) against certain liabilities (including legal costs) as permitted by the Corporations Act 2001 . The insurance policy prohibits disclosure of the nature of the liabilities covered, the amount of the premium payable and the limit of liability. In addition, AMP Limited and each of the current and some former directors of the Company, and a subsidiary of AMP Limited and some former directors and each of the company secretaries of the Company are parties to deeds of indemnity, insurance and access. Those deeds provide that: − these officers will have access to board papers and specified records of the Company (and of certain other companies) for their period of office and for at least ten (or, in some cases, seven) years after they cease to hold office (subject to certain conditions); − the relevant officers are indemnified to the extent permitted by law, and to the extent and for the amount that the relevant officer is not otherwise entitled to be, and is not actually, indemnified by another person; − the indemnity covers liabilities (including legal costs) incurred by the relevant officer in their capacity as a current or former director or secretary of the Company, or of another AMP group company or, an AMP representative in relation to an external company; and − the AMP group will maintain directors' and officers' insurance cover for those officers, to the extent permitted by law, for the period of their office and for at least ten years after they cease to hold office. Indemnification of auditors To the extent permitted by law, the Company's ultimate parent company, AMP Limited, has agreed to indemnify the Company's auditor, Ernst & Young, as part of the terms of its audit engagement agreement, against claims by third parties arising out of or relating to the audit or the audit engagement agreement, other than where the claim is determined to have resulted from any negligent, wrongful or wilful act or omission by or of Ernst & Young. No payment has been made to indemnify Ernst & Young during or since the financial year ended 31 December 2025. Rounding The Company is of a kind referred to in ASIC Corporations Instrument 2016/191 dated 24 March 2016 and in accordance with that instrument, amounts in this directors' report and the accompanying financial report have been rounded to the nearest million Australian dollars, unless stated otherwise. Auditor's independence The directors have obtained an independence declaration from the Company's auditor, Ernst & Young, a copy of which is attached to this report and forms part of the directors' report for the year ended 31 December 2025. Signed in accordance with a resolution of the directors. ………………………………………… Director Sydney, 12 February 2026 Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Auditor's independence declaration to the directors of AMP Bank Limited As lead auditor for the audit of the financial report of AMP Bank Limited for the financial year ended 31 December 2025, I declare to the best of my knowledge and belief, there have been: No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; No contraventions of any applicable code of professional conduct in relation to the audit; and No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit. This declaration is in respect of AMP Bank Limited and the entities it controlled during the financial year. Ernst & Young Anita Kariappa Partner 12 February 2026 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation AMP Bank Limited Income statements for the year ended 31 December Consolidated Company 2025 2024 2025 2024 Note $m $m $m $m Interest income 2 1,608 1,748 1,590 1,729 Interest expense 2 (1,371) (1,528) (1,370) (1,523) Net interest income 237 220 220 206 Fee and commission income 14 12 28 24 Other gains / (losses) 3 8 (29) 8 (29) Operating expenses 4 (265) (165) (262) (163) Impairment benefit 5 10 5 10 (Loss) / profit before tax (1) 48 (1) 48 Income tax expense 5 - (15) - (15) (Loss) / profit after tax (1) 33 (1) 33 Net (loss) / profit attributable to equity owners of AMP Bank Limited (1) 33 (1) 33 AMP Bank Limited Statements of comprehensive income for the year ended 31 December Consolidated Company 2025 2024 2025 2024 $m $m $m $m (Loss) / profit after tax (1) 33 (1) 33 Other comprehensive expense: Items that may be reclassified subsequently to profit or loss Cash flow hedging instruments 1 - net gain / (loss) from changes in fair value 53 (27) 53 (27) - tax effect on net gain / (loss) from changes in fair value (16) (3) (16) (3) - net amount transferred to Income statement (17) (71) (17) (71) - tax effect on amount transferred to Income statement 5 21 5 21 Total other comprehensive income / (expense) relating to cash flow hedging instruments 25 (80) 25 (80) Debt securities measured at fair value through other comprehensive income (FVOCI) - net loss from changes in fair value (23) (29) (23) (29) - tax effect on net loss from changes in fair value 7 9 7 9 - net amount transferred from Income statement 1 17 1 17 - tax effect on amount transferred to Income statement - (5) - (5) Total FVOCI on debt securities (15) (8) (15) (8) Total other comprehensive income / (expense) 10 (88) 10 (88) Total comprehensive income / (expense) 9 (55) 9 (55) Total comprehensive income / (expense) attributable to equity owners of AMP Bank Limited 9 (55) 9 (55) 1 Movements on cash flow hedging instruments relate to interest rate swaps used to manage the interest rate risk of AMP Bank Limited and its controlled entities. AMP Bank Limited Statements of financial position As at 31 December Consolidated Company 2025 2024 2025 2024 Note $m $m $m $m Assets Cash and balances with central banks 69 103 69 103 Due from banks 6 679 633 115 96 Collateral placed 1 115 139 115 139 Derivative financial assets 23 59 14 59 14 Intercompany tax receivable from head entity 7 - 7 - Debt securities 7 4,736 4,569 4,736 4,569 Loans and advances 8 24,246 23,423 24,246 23,423 Deferred tax assets 5 21 36 21 36 Intangibles 9 8 11 8 11 Other assets 10 43 47 96 99 Total assets 29,983 28,975 29,472 28,490 Liabilities Due to banks 11 309 234 309 234 Collateral received 1 46 14 46 14 Derivative financial liabilities 23 9 20 9 20 Deposits and other borrowings 12 19,992 20,920 19,992 20,920 Intercompany tax payable to head entity - 17 - 17 Employee provisions 13 14 14 14 14 Debt securities on issue 14 8,076 6,091 652 652 Due to controlled entities - - 6,913 4,954 Subordinated debt 16 329 202 329 202 Other liabilities 15 129 111 129 111 Total liabilities 28,904 27,623 28,393 27,138 Net assets 1,079 1,352 1,079 1,352 Equity Contributed equity 18 394 619 394 619 Reserves (22) (33) (22) (33) Retained earnings 707 766 707 766 Total equity 1,079 1,352 1,079 1,352 1 In 2025, the Bank revised its Statement of financial position to show collateral placed and received for derivative margins as separate line items. These were previously reported within 'Due from banks' and 'Due to banks'. AMP Bank Limited Statements of changes in equity for the year ended 31 December Attributable to equity owners of AMP Bank Limited Contributed Share based Cash flow FVOCI Retained Total equity equity payments reserve hedge reserve 1 reserve 1 earnings Note $m $m $m $m $m $m Consolidated 2025 Balance at the beginning of the year 619 5 38 (76) 766 1,352 Loss after tax - - - - (1) (1) Other comprehensive income / (expense) - - 25 (15) - 10 Total comprehensive income / (expense) - - 25 (15) (1) 9 Redemption of capital notes 3 18 (225) - - (225) Dividends paid on ordinary shares 17 - - - - (39) (39) Distributions paid on capital notes 17 - - - - (19) (19) Share-based payments - 1 - - - 1 Balance at the end of the year 394 6 63 (91) 707 1,079 2024 Balance at the beginning of the year 619 5 109 (68) 797 1,462 Adjustments 2 - - 9 - (9) - Restated balance at the beginning of the year 619 5 118 (68) 788 1,462 Profit after tax - - - - 33 33 Other comprehensive expense - - (80) (8) - (88) Total comprehensive (expense) / income - - (80) (8) 33 (55) Dividends paid on ordinary shares 17 - - - - (35) (35) Distributions paid on capital notes 17 - - - - (20) (20) Balance at the end of the year 619 5 38 (76) 766 1,352 Attributable to equity owners of AMP Bank Limited Contributed Share based Cash flow FVOCI Retained Total equity equity payments reserve hedge reserve 1 reserve 1 earnings $m $m $m $m $m $m Company 2025 Balance at the beginning of the year 619 5 38 (76) 766 1,352 Loss after tax - - - - (1) (1) Other comprehensive income / (expense) - - 25 (15) - 10 Total comprehensive income / (expense) - - 25 (15) (1) 9 Redemption of capital notes 3 18 (225) - - (225) Dividends paid on ordinary shares 17 - - - - (39) (39) Distributions paid on capital notes 17 - - - - (19) (19) Share-based payments - 1 - - - 1 Balance at the end of the year 394 6 63 (91) 707 1,079 2024 Balance at the beginning of the year 619 5 109 (68) 797 1,462 Adjustments 2 - - 9 - (9) - Restated balance at the beginning of the year 619 5 118 (68) 788 1,462 Profit after tax - - - - 33 33 Other comprehensive expense - - (80) (8) - (88) Total comprehensive (expense) / income - - (80) (8) 33 (55) Dividends paid on ordinary shares 17 - - - - (35) (35) Distributions paid on capital notes 17 - - - - (20) (20) Balance at the end of the year 619 5 38 (76) 766 1,352 1 The cash flow hedge reserve represents the cumulative impact of changes in the fair value of derivatives designated as cash flow hedges which are effective under hedge accounting rules. Hedging gains and losses are transferred to the Income statement when they are deemed ineffective or upon realisation of the hedged forecast transaction. The FVOCI reserve represents the cumulative changes in the fair value of financial assets measured at fair value through other comprehensive income (FVOCI). When the financial assets are derecognised, the cumulative gains or losses previously recognised in other comprehensive income are reclassified (i.e. recycled) from equity to the Income statement. 2 In 2024, the Bank updated its accounting treatment of gains / losses relating to certain hedge instruments. This resulted in an immaterial adjustment to opening equity balances. 3 The Company redeemed the capital notes issued to AMP Limited during 2025 to reduce Tier 1 capital. AMP Bank Limited Statements of cash flows for the year ended 31 December Consolidated Company 2025 2024 2025 2024 Note $m $m $m $m Cash flows from operating activities Interest received 1,702 1,790 1,684 1,771 Interest paid (1,435) (1,560) (1,440) (1,560) Fees and commissions received 14 12 28 24 Payments to suppliers and employees (259) (154) (256) (152) Income tax paid (14) (40) (14) (40) Cash flows from operating activities before changes in operating assets and liabilities 8 48 2 43 Changes in operating assets and liabilities arising from cash flow movements: Net (increase) / decrease in loans and advances (806) 1,145 (806) 1,145 Net decrease / (increase) in collateral placed 2 24 (30) 24 (30) Net decrease / (increase) in other assets 1 1 (2) - (3) Net increase / (decrease) in funds due to banks 75 (296) 75 (296) Net increase / (decrease) in collateral received 2 32 (90) 32 (90) Net decrease in deposits and other borrowings (893) (592) (893) (592) Net decrease in other liabilities (48) (7) (48) (6) Changes in operating assets and liabilities arising from cash flow movements (1,615) 128 (1,616) 128 Net cash (used in) / provided by operating activities 2 22(a) (1,607) 176 (1,614) 171 Cash flows from investing activities Proceeds from debt securities 2,739 3,960 2,739 3,960 Purchase of debt securities (2,929) (4,704) (2,929) (4,704) Payments for intangibles (3) (4) (3) (4) Net cash used in investing activities (193) (748) (193) (748) Cash flows from financing activities Proceeds from debt securities on issue 4,795 3,727 - 500 Repayment of debt securities on issue (2,816) (2,883) - (225) Redemption of subordinated debt - (250) - (250) Issue of subordinated debt 125 - 125 - Redemption of capital notes (225) - (225) - Payment of dividends (39) (35) (39) (35) Payment of distributions on capital notes (19) (20) (19) (20) Net increase in loans due to controlled entities - - 1,959 428 Net cash provided by financing activities 1,821 539 1,801 398 Net increase / (decrease) in cash and cash equivalents 21 (33) (6) (179) Effect of foreign exchange rates on cash and cash equivalents (9) 11 (9) 11 Cash and cash equivalents at the beginning of the year 736 758 199 367 Cash and cash equivalents at the end of the year 22(c) 748 736 184 199 1 This amount excludes the recovery of losses in relation to loans to financial advisers from related parties. See Note 10. 2 In 2025, the Bank revised its Statement of financial position to show collateral placed and received for derivative margins as separate line items. These were previously reported within 'Due from banks' and 'Due to banks'. Basis of preparation The consolidated economic entity (the Bank) is comprised of AMP Bank Limited (the Company), an unlisted public company limited by shares, incorporated and domiciled in Australia, and the entities that it controls. The parent entity of AMP Bank Limited is AMP Financial Investment Group Holdings Limited. The ultimate parent entity is AMP Limited. The financial report of the Bank for the year ended 31 December 2025 was authorised for issue on 12 February 2026 in accordance with a resolution of the directors. The directors have the power to amend and reissue the financial statements. Basis of accounting The financial report: − is a general purpose financial report; − has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards including Australian Accounting Interpretations adopted by the Australian Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board; − is presented in Australian dollars with all values rounded to the nearest million dollars ($m), unless otherwise stated; − has been prepared on a going concern basis generally using a historical cost basis, however where permitted under accounting standards, a different basis may be used, including the fair value basis; − presents assets and liabilities on the face of the Statement of financial position in decreasing order of liquidity and therefore does not distinguish between current and non-current items; and − presents reclassified comparative information where required for consistency with the current year's presentation within the financial report. The Bank is a for-profit entity for the purpose of preparing financial statements. For the 2025 financial year, the Bank revised the presentation of the Statement of financial position to separately disclose 'Collateral placed' and 'Collateral received' for initial and variation margins relating to derivative assets and liabilities. Previously, these balances were included within 'Due from banks' and 'Due to banks'. The Bank revised its presentation to fully net derivative financial assets and liabilities. Comparative information has been revised to conform to changes in presentation in the current year and to enhance comparability. New accounting standards and other developments New and amended accounting standards adopted The adoption of new amendments to accounting standards have not had a material impact on the financial position or performance of the AMP Bank for the financial year ended 31 December 2025. New accounting standards issued but not yet effective A number of new accounting standards and amendments have been issued but are not yet effective, none of which have been early adopted by the Bank in the financial statement. These new standards and amendments, when applied in future periods, are not expected to have a material impact on the Bank's financial statements except for the below accounting standards, none of which is being early adopted by the Bank. - AASB 18 Presentation and Disclosure in Financial Statements (AASB 18) AASB 18 was issued in June 2024 replacing AASB 101 Presentation of Financial Statements and will be effective for the Bank from 1 January 2027. The standard has been issued to improve how entities communicate their results within their financial statements, with a particular focus on information about financial performance in the income statement. The key presentation and disclosure requirements are: The presentation of newly defined categories of income and expenses and subtotals in the income statement; The disclosure of management-defined performance measures; and Enhanced guidance on the grouping of information. The Bank is currently assessing the impact of this new standard. 1. Basis of preparation (continued) Other developments - AASB S2 Climate-related Disclosure (AASB S2) AASB S2 deals with climate-related disclosures and sets out requirements for an entity to disclose information about its exposure to significant climate-related risks and opportunities that will facilitate users of its financial report to assess the impact of these risks and opportunities on the entity's financial position, performance and cash-flows, strategy and business model. The main climate-related financial disclosure requirements are structured around the four content pillars of governance, strategy, risk management, and metrics and targets. AMP group has adopted AASB S2 for the financial year ended 31 December 2025 and has prepared the Sustainability report for the consolidated group. Accordingly, AMP Bank is not required to prepare a separate Sustainability report at the individual entity level. Basis of consolidation Entities are fully consolidated from the date of acquisition, being the date on which the Bank obtains control, and continue to be consolidated until the date that control ceases. Control exists where the Bank is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Income, expenses, assets, liabilities and cash flows of controlled entities are consolidated into the Bank's financial statements, along with those attributable to the shareholders of the parent entity. All inter-company transactions are eliminated in full, including unrealised profits arising from intra-group transactions. The Company sells housing loans to securitisation trusts (also referred to as special purpose entities) through its loan securitisation program. These securitisation trusts are controlled by the Company and are therefore consolidated. Materiality Information has only been included in the financial report to the extent that it has been considered material and relevant to the understanding of the financial statements. A disclosure is considered material and relevant if, for example: the amount in question is significant because of its size or nature; it is important for understanding the results of the Bank; it helps explain the impact of significant changes in the Bank; and/or it relates to an aspect of the Bank's operations that is important to its future performance. Material accounting policies The material accounting policies adopted in the preparation of the financial report are contained in the notes to the financial statements to which they relate. All accounting policies have been consistently applied to the current year and comparative period, unless otherwise stated. Where an accounting policy relates to more than one note or where no note is provided, the accounting policies are set out below. Foreign currency transactions Transactions, assets and liabilities denominated in foreign currencies are translated into Australian dollars (the functional currency) using the following applicable exchange rates: Foreign currency transactions Applicable exchange rate Transactions Transaction date Monetary assets and liabilities Reporting date Non-monetary assets and liabilities carried at fair value Fair value determination date Foreign exchange gains and losses resulting from translation of foreign exchange transactions are recognised in the Income statement, except for qualifying cash flow hedges which is recognised in other comprehensive income. Operating segment Operating segments are identified based on information which is provided internally to the Bank's key decision makers in assessing performance and determining the allocation of resources. As the Bank operates in only one segment, being banking, the consolidated results of the Bank are also its segment results. The Bank operates predominantly in one geographical segment, which is Australia. Revenue from overseas customers is not material to the Bank. The basis of segmentation and measurement of segment results are therefore the same as those applied by the Bank in its consolidated financial statements. 1. Basis of preparation (continued) Fee and commission income Fee and commission income includes servicing fees from housing loans and deposit accounts and is generally recognised as revenue over the service period. Recognition and de-recognition of financial assets and liabilities Financial assets and financial liabilities are recognised at the date the Bank becomes a party to the contractual provisions of the instrument. The Bank recognises transactions on the trade date. At initial recognition, financial assets are classified as fair value through profit or loss, fair value through other comprehensive income, or amortised cost. The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Bank's business model for managing them. Non-derivative financial liabilities are initially recognised at fair value plus directly attributable incremental transaction costs and subsequently measured at amortised cost. Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or are transferred. A transfer occurs when substantially all the risks and rewards of ownership of the financial asset are passed to an unrelated third party. A financial liability is derecognised when the obligation under the liability is discharged, cancelled, or expires. Provisions and contingent liabilities Provisions are recognised when: the Bank has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation. Where the Bank expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset when the reimbursement is virtually certain. The expense relating to any provision is presented in the Income statement net of any reimbursement. Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the reporting date. For provisions other than employment entitlements, the discount rate used to determine the present value reflects the current market assessments of the time-value of money and the risks specific to the liability. A contingent liability is disclosed where a legal or constructive obligation is possible, but not probable or where the obligation is probable, but the financial impact of the event is unable to be reliably estimated. Critical accounting judgements and estimates Preparation of the financial statements requires management to make judgements and assumptions about the future events. Information on critical judgement and estimates considered when applying the accounting policies can be found in the following notes: Note 2 - Net interest income Note 5 - Income tax Note 8 - Loans and advances Note 9 - Intangibles Note 15 - Other liabilities Note 27 - Fair value information 2. Net interest income Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Interest income Calculated using the effective interest method Cash and balances with central banks 4 7 4 7 Due from banks 19 21 1 2 Collateral placed 5 6 5 6 Debt securities 205 187 205 187 Loans and advances 1,319 1,356 1,319 1,356 Total interest income calculated using the effective interest method 1,552 1,577 1,534 1,558 Other Derivative financial instruments 56 171 56 171 Total other interest income 56 171 56 171 Total interest income 1,608 1,748 1,590 1,729 Interest expense Calculated using the effective interest method Due to banks (10) (16) (10) (16) Deposits and other borrowings (959) (1,077) (959) (1,077) Debt securities on issue (325) (295) (36) (29) Due to controlled entities - - (288) (261) Subordinated debt (19) (21) (19) (21) Total interest expense calculated using the effective interest method (1,313) (1,409) (1,312) (1,404) Other Derivative financial instruments (58) (119) (58) (119) Total other interest expense (58) (119) (58) (119) Total interest expense (1,371) (1,528) (1,370) (1,523) Net interest income 237 220 220 206 Accounting policy Interest income and expense for all interest earning and interest-bearing financial instruments at amortised cost or FVOCI are recognised in the Income statement using the effective interest method. The effective interest method calculates the amortised cost of a financial asset or liability using the effective interest rate and allocates the interest income or interest expense over its expected life. The effective interest rate is the rate that discounts estimated future cash receipts through the expected life of the financ ial instrument, or where appropriate, a shorter period to the net carrying amount of the financial asset or liability. When calculating the effective interest rate, cash flows are estimated based upon all contractual terms of the financial instrument (for example, prepayment options) but do not consider future credit losses. The calculation includes all fees and other amounts paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. Interest income is calculated based on the gross carrying amount of financial assets in Stage 1 and Stage 2 of the expected credit loss (ECL) model and on the carrying amount net of the provision for ECL for financial assets in Stage 3. Interest income and expense on financial assets and liabilities that are measured at fair value through profit or loss are accounted for on a contractual rate basis. Critical accounting estimates and judgements Interest income and expense for all financial instruments measured at amortised cost and at FVOCI are recognised in the Income statement using the effective interest rate method which depends on assumptions for estimating the expected life of financial instruments. Management applies judgement in determining the expected life with regard to both historical performance and forward-looking expectations. Other gains and losses Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Net loss on financial instruments measured at fair value (1) (17) (1) (17) Net gain / (loss) on derivatives held for risk management purposes 18 (23) 18 (23) Foreign currency translation (losses) / gain (9) 11 (9) 11 Total other gains / (losses) 8 (29) 8 (29) Accounting policy Other gains and losses include the amounts released from the FVOCI reserve when a debt instrument at FVOCI is sold, realised and unrealised gains or losses from changes in the fair value of derivatives held for risk management purposes and the impact of foreign currency revaluations for foreign currency monetary assets and liabilities, and are recognised in the period in which they arise. Operating expenses Staff expenses Consolidated Company 2025 2024 2025 2024 $m $m $m $m Salaries and related on-costs (61) (61) (61) (61) Contributions to defined contribution funds (6) (7) (6) (7) Other operating expenses Service charges - related party 1 (95) (29) (95) (29) Information technology and communication (43) (18) (43) (18) Consultancy fee (17) (9) (17) (9) Advertising and marketing expenses (8) (7) (8) (7) Amortisation and impairment of intangibles (6) (9) (6) (9) Legal and regulatory charges (4) (4) (4) (4) Other expenses (25) (21) (22) (19) Total operating expenses (265) (165) (262) (163) 1 Service charges to related parties total of $95m in 2025, this includes $50m of one-off service recharges paid in 2025, $15m relates to additional group allocated costs. Accounting policy Salaries and related on-costs include annual leave, other employee entitlements and relevant taxes. Staff expenses are recognised over the period which the employee renders service. Other operating expenses are recognised as the relevant services are provided to the Bank. Income tax (a) Income tax expense Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m (Loss) / profit before tax (1) 48 (1) 48 Prime facie income tax at the Australian tax rate of 30% (2024: 30%) - (14) - (14) Income tax over provided in prior years - (1) - (1) Income tax expense per Income statement - (15) - (15) Current tax credit / (expense) 7 (21) 7 (21) Deferred tax (expense) / benefit (7) 6 (7) 6 Income tax expense - (15) - (15) (b) Analysis of deferred tax balances Analysis of deferred tax assets Provisions and accruals 26 27 26 27 Fair value of debt securities 39 33 39 33 Intangibles 5 12 5 12 Total deferred tax assets 70 72 70 72 Offset to tax (49) (36) (49) (36) Net deferred tax assets 21 36 21 36 Analysis of deferred tax liabilities Fair value of derivatives (38) (24) (38) (24) Other assets (11) (12) (11) (12) Total deferred tax liabilities (49) (36) (49) (36) Offset to tax 49 36 49 36 Net deferred tax liabilities - - - - (c) Amount recognised directly in equity Deferred income tax (expense) / credit related to items taken directly to (4) 22 (4) 22 The following table provides a reconciliation of differences between prima facie tax calculated at 30% of the profit before income tax for the year and the income tax expense recognised in the Income statement for the year. equity during the year Accounting policy Income tax expense Income tax expense is the tax payable on taxable income for the current period based on the income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities. These changes are attributable to: temporary differences between the tax bases of assets and liabilities and their Statement of financial position carrying amounts; and the impact of changes in the amounts of deferred tax assets and liabilities arising from changes in tax rates or the manner in which these balances are expected to be realised. Adjustments to income tax expense are also made for any differences between the amounts paid or expected to be paid in relation to prior periods and the amounts provided for these periods at the start of the current period. Any tax impact on income and expense items recognised directly in equity is also recognised directly in equity. Deferred tax Deferred tax assets and liabilities are recognised for temporary differences and are measured at the tax rates which are expected to apply when the assets are recovered or liabilities are settled, based on tax rates which have been enacted or substantively enacted for each jurisdiction at the reporting date. Deferred tax assets and liabilities are not discounted to present value. Deferred tax assets are recognised for deductible temporary differences only if it is probable that future taxable amounts will be available to utilise those temporary differences. 5. Income tax (continued) Tax consolidation AMP Limited, AMP Bank Limited and other wholly owned Australian controlled entities of AMP Limited are part of a tax-consolidated group, with AMP Limited being the head entity. A tax funding agreement has been entered into by the head entity and the controlled entities in the tax-consolidated group and requires entities to fully compensate the head entity for current tax liabilities and to be fully compensated by the head entity for any current or deferred tax assets in respect of tax losses arising from external transactions occurring after 30 June 2003, the implementation date of the tax-consolidated group. Assets and liabilities which arise as a result of balances transferred from entities within the tax-consolidated group to the head entity are recognised as related-party receivable and payable in the Statement of financial position. The recoverability of balances arising from the tax funding arrangements is based on the ability of the tax-consolidated group to utilise the amounts recognised by the head entity. Goods and services tax (GST) All income, expenses and assets are recognised net of any GST paid, except where the GST incurred is not recoverable from the relevant tax authorities. In such circumstances, the GST paid is recognised as part of the cost of acquisition of the assets or as part of the relevant expense. Receivables and payables are recorded with the amount of GST included. The net amount of GST recoverable from or payable to the tax authorities is included as a receivable or payable in the Statement of financial position. Cash flows are reported on a gross basis reflecting any GST paid or collected. The GST component of cash flows arising from investing or financing activities which are recoverable from, or payable to, local tax authorities are classified as operating cash flows. Global minimum top-up tax In 2021, the Organisation for Economic Co-operation and Development (OECD) released Global Anti-Base Erosion (GLoBE) Model rules (Pillar Two) which introduced new 'top-up' taxing mechanisms for multinational enterprises (MNEs) that are within the scope of the rules. Under these rules, MNEs will be liable to pay a top-up tax reflecting the difference between their GLoBE effective tax rate per jurisdiction and the 15% minimum tax rate. During 2024, the Australian equivalent Pillar Two legislation was enacted by the Federal Government which was effective for the Bank for the financial year ended 31 December 2024. On current assessment, the Bank does not expect any liability to Pillar Two top-up tax to arise. This assessment is based on the transitional safe harbour rules applying. The temporary exception to recognising and disclosing information about deferred tax assets and deferred tax liabilities in respect of Pillar Two is applied at 31 December 2025 as required by amendments to IAS 12 / AASB 112 Income Taxes issue by the International Accounting Standards Board and the Australian Accounting Standards Board respectively. Critical accounting estimates and judgements The application of tax law to the specific circumstances and transactions of the Bank requires the exercise of judgment by management. The tax treatments adopted by management in preparing the financial statements may be impacted by changes in legislation and interpretations or be subject to challenge by tax authorities. Judgment is also applied by management in setting assumptions used to forecast future profitability in order to determine the extent to which the recovery of deductible temporary differences are probable for the purpose of meeting the criteria for recognition as deferred tax assets (DTAs). Future profitability may differ from forecasts which could impact management's expectations in future periods with respect to the recoverability of DTAs and result in DTA impairments or reversals of prior DTA impairments. 6. Due from banks 2025 Consolidated 2024 2025 Company 2024 $m $m $m $m Cash at bank 501 476 54 52 Money market deposits 118 114 1 1 Settlement and clearing balances 60 43 60 43 Total due from banks 1 2 679 633 115 96 1 $679m (2024: $633m) is expected to be received within 12 months from the reporting date for the consolidated entity and the Company. 2 In 2025, the Bank revised its Statement of financial position to show collateral placed for derivative margins as separate line item. This was previously reported within this note $139m for year ended 2024. Accounting policy Due from banks include short term money market deposits with a maturity date of less than three months, settlement account and clearing balances with other banks. Due from banks are initially recognised at fair value plus any directly attributable transaction costs and are subsequently measured at amortised cost using the effective interest method. Debt securities The table below shows the distribution of debt securities by credit quality based on the Bank's internal credit rating grade: Consolidated Company Internal credit rating grade 2025 $m 2024 $m 2025 $m 2024 $m Senior investment grade 4,654 4,538 4,654 4,538 Investment grade 82 31 82 31 Total debt securities 1 4,736 4,569 4,736 4,569 1 $ 4,392m (2024: $4,218m) is contractually due to be received more than 12 months from the reporting date for the consolidated entity and the Company. Consolidated & Company 2025 $m 2024 $m New purchases 2,929 4,704 Debt securities derecognised (2,739) (3,960) Net fair value changes (22) (12) All debt securities have been classified as Stage 1 for ECL calculation. Significant changes in the gross carrying amount of debt securities were: Accounting policy Debt securities are measured at FVOCI as both of the following conditions are met: The instrument is held within a business model, the objective of which is achieved by both collecting contractual cash flows and selling financial assets; and The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Debt securities are subsequently measured at fair value, with gains and losses arising due to changes in fair value recognised in OCI. Interest income and foreign exchange gains and losses same as that of financial assets, which are measured at amortised costs. Impairment on debt instruments at FVOCI is determined using the ECL model described in Note 8 and is recognised in the Income statement with a corresponding amount in OCI. There is no reduction of the carrying amount of these financial assets which remains at fair value. The accumulated gain or loss recognised in OCI is recycled to the Income statement upon derecognition of the assets. 8. Loans and advances Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Housing loans 1 24,153 23,280 24,153 23,280 Business finance loans 177 231 177 231 Total gross loans and advances 2, 3 24,330 23,511 24,330 23,511 Less: Provisions for impairment Individually assessed provisions - Housing loans (1) (1) (1) (1) - Business finance loans (44) (48) (44) (48) Collectively assessed provisions (39) (39) (39) (39) Total provisions for impairment (84) (88) (84) (88) Total net loans and advances 24,246 23,423 24,246 23,423 Movement in provisions: Individually assessed provision Balance at the beginning of the year 49 56 49 56 New and increase in provisions 2 1 2 1 Write-offs (1) (1) (1) (1) Provision released 4 (5) (7) (5) (7) Balance at the end of the year 45 49 45 49 Collectively assessed provisions Balance at the beginning of the year 39 44 39 44 Net decrease in provision - (5) - (5) Balance at the end of the year 39 39 39 39 1 Housing loans include residential mortgages that have been assigned to securitisation vehicles. Refer to Note 26 for further information. 2 Total loans and advances include net capitalised costs of $181m (2024: $189m) . The balance as at 31 December 2025 includes $66m (2024: $74m) of capitalised brokerage costs reflecting the revised accounting treatment of trail commission payable to mortgage brokers. 3 $18,471m (2024: $17,586m) is expected to be received more than 12 months from the reporting date for the consolidated entity and the Company. 4 This balance includes $3m (2024: $7m) of provision released and written off relating to loans to financial advisors recoverable in accordance with the deeds of indemnity with related parties. The following tables provide the changes to ECLs relating to loans and advances during the year: 2025 Consolidated & Company Stage 1 Performing $m Stage 2 Performing $m Stage 3 Non-performing $m Total $m Balance at the beginning of the year 15 13 60 88 Transferred to / (from) Stage 1 (12-month ECL) 10 (5) (5) - Transferred to / (from) Stage 2 (lifetime ECL not credit impaired) - 3 (3) - Transferred to / (from) Stage 3 (lifetime ECL credit impaired) (1) (3) 4 - Net (released) / increased provisions (8) 2 6 - Amounts written off, previously provided for - - (1) (1) Release and write-off of provision for loans to financial advisors recoverable in accordance with deeds of indemnity with related parties - - (3) (3) Balance at the end of the year 16 10 58 84 2024 Consolidated & Company Stage 1 Performing $m Stage 2 Performing $m Stage 3 Non-performing $m Total $m Balance at the beginning of the year 16 15 69 100 Transferred to / (from) Stage 1 (12-month ECL) 11 (4) (7) - Transferred to / (from) Stage 2 (lifetime ECL not credit impaired) (1) 3 (2) - Transferred to / (from) Stage 3 (lifetime ECL credit impaired) - (3) 3 - Net (released) / increased provisions (11) 2 5 (4) Amounts written off, previously provided for - - (1) (1) Release and write-off of provision for loans to financial advisors recoverable in accordance with deeds of indemnity with related parties - - (7) (7) Balance at the end of the year 15 13 60 88 Loans and advances (continued) Significant changes in the gross carrying amount of loans and advances that have contributed to changes in the provision balance during the year were: Consolidated & Company 2025 $m 2024 $m New loans originated 6,506 4,780 Loans partially or fully repaid 5,680 5,951 Loans transferred to Stage 1 466 473 Loans transferred to Stage 2 266 430 Loans transferred to Stage 3 219 198 The table below shows the credit quality of loans and advances based on the Bank's internal credit rating grades and year-end stage classification. Consolidated & Company Housing loans 2025 Internal credit rating grade Stage 1 $m Stage 2 $m Stage 3 $m Total $m Performing 21,908 479 - 22,387 Past due but not impaired 1,211 271 - 1,482 Impaired - - 284 284 Total 23,119 750 284 24,153 Business finance loans 2025 Internal credit rating grade Stage 1 $m Stage 2 $m Stage 3 $m Total $m Sub-investment grade 55 9 - 64 Impaired - - 113 113 Total 55 9 113 177 Consolidated & Company Housing loans 2024 Internal credit rating grade Stage 1 $m Stage 2 $m Stage 3 $m Total $m Performing 20,826 593 - 21,419 Past due but not impaired 1,207 341 - 1,548 Impaired - - 313 313 Total 22,033 934 313 23,280 Business finance loans 2024 Internal credit rating grade Stage 1 $m Stage 2 $m Stage 3 $m Total $m Sub-investment grade 83 66 - 149 Impaired - - 82 82 Total 83 66 82 231 Accounting policy Loans and advances are financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Bank provides money directly to a customer, including loans and advances to advisers, and with no intention of trading the financial asset. Loans and advances are initially recognised at fair value including direct and incremental transaction costs relating to loan origination. They are subsequently measured at amortised cost using the effective interest method, less any provision for impairment when both the following conditions are met: The financial asset is held within a business model, the objective of which is achieved by collecting contractual cash flows; and The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Gains and losses are recognised in the Income statement when the asset is derecognised, modified or impaired. Loans and advances (continued) Impairment of financial assets An allowance for ECL is recognised for financial assets measured at amortised cost, debt securities measured at FVOCI and loan commitments. ECLs are probability weighted estimates of credit losses and are measured as the present value of all cash shortfalls discounted at the effective interest rate of the financial instrument. The key elements in the measurement of ECLs are as follows: Probability of default (PD): The probability of default is an estimate of the likelihood of default over a given time horizon. Exposure at default (EAD): The exposure at default is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date. Loss given default (LGD): Loss given default is an estimate of the loss arising in the case where default occurs at a given time. It is based on the difference between cash flows due to the Bank in accordance with the contract and the cash flows that the Bank expects to receive, including from the realisation of any collateral. The Bank estimates these elements using appropriate credit risk models taking into consideration a number of factors, including the internal and external credit ratings of the assets, nature and value of collaterals and forward looking macroeconomic scenarios. The Bank applies a three-stage approach to measure ECLs as follows: Stage 1 (12-month ECL) The Bank collectively assesses and recognises a provision at an amount equal to 12-month ECLs when financial assets are current and/or have had a good performance history and are of low credit risk. It includes financial assets where the credit risk has improved, and the financial assets have been reclassified from Stage 2 or even Stage 3 based on improved performance observed over a predefined period of time. A financial asset is considered to have low credit risk when its credit risk rating is equivalent to the globally understood definition of 'investment grade'. Stage 2 (Lifetime ECL - not credit impaired) The Bank collectively assesses and recognises a provision at an amount equal to lifetime ECLs on the financial assets where there has been a significant increase in credit risk since initial recognition but the financial assets are not credit impaired. The quantitative criteria used to determine a significant increase in credit risk is a series of relative and absolute thresholds. Financial assets that were 30 days past due at least once over the last six months are deemed to have significant increase in credit risk since initial recognition. For loans and advances, other risk factors like hardship, Loan to Value Ratio (LVR) and Loan to Income Ratio (LTI) are also considered in order to determine a significant increase in credit risk. Stage 3 (Lifetime ECL - credit impaired) The Bank measures loss allowances at an amount equal to lifetime ECLs on financial assets that are determined to be credit impaired based on objective evidence of impairment. Financial assets are classified as impaired when payment is 90 days past due or when there is no longer reasonable assurance that principal or interest will be collected. Critical accounting estimates and judgements The impairment provisions (individual and collective) are outputs of ECL models with a number of underlying assumptions regarding the choice of variable inputs and their interdependencies. Elements of the ECL models that are considered accounting estimates and judgements include: The Bank's internal credit grading which assigns PDs to the individual grades. The Bank's estimates of LGDs arising in the event of default. The Bank's criteria for assessing if there has been a significant increase in credit risk. Development of ECL models, including the various formulae, choice of inputs and assumptions. Determination of associations between macroeconomic scenarios and their probability weightings, to derive the economic inputs into the ECL models. Management overlay has been applied to best estimate where required. Future outcomes and macro-economic conditions which differ from management's assumptions and estimates could result in changes to the timing and amount of credit losses to be recognised. 9. Intangibles Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Capitalised costs Balance at the beginning of the year 11 16 11 16 Additions through internal development 3 4 3 4 Amortisation expense (6) (7) (6) (7) Impairment loss - (2) - (2) Balance at the end of the year 8 11 8 11 Cost 36 33 36 33 Accumulated amortisation and impairment (28) (22) (28) (22) Balance at the end of the year 8 11 8 11 Accounting policy Capitalised costs comprise strategic, regulatory and compliance project costs which are capitalised when the costs relate to the creation of an asset with expected future economic benefits which are capable of reliable measurement. Capitalised costs are finite life intangible assets and are amortised on a straight-line basis over the estimated useful life of the asset, commencing at the time the asset is first put into use or held ready for use, whichever is the earlier. The estimated useful lives are generally three years for capitalised costs. The useful life of each intangible asset is reviewed at the end of the period, and where necessary, adjusted to reflect current assessments. Capitalised costs are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Critical accounting estimates and judgements Management applies judgement in selecting valuation techniques and setting valuation assumptions to determine the assessment of whether there are any impairment indicators for internally generated intangibles, where required, in determining the recoverable amount. 10. Other assets Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Indemnity receivable 40 43 40 43 Prepayments and other receivables 3 4 56 56 Total other assets 1 43 47 96 99 1 $3m (2024: $4m) for the consolidated entity and $56m (2024: $56m) for the Company are expected to be received within 12 months from the reporting date. Accounting policy Other assets include the following indemnity receivable from related parties: − On 4 February 2019, the Bank entered into a deed of indemnity with AMP Group Holdings Limited (AMPGH) under which AMPGH agreed to unconditionally and irrevocably indemnify the Bank for losses up to $546m, which has been reduced to $200m in FY25. As at 31 December 2025, the Bank provided for $40m (2024: $43m) of losses which are covered by the deed of indemnity with AMPGH. Other assets also comprise of prepayments and sundry receivables and are recognised on an accrual or service performed basis and amortised over the period in which the economic benefits from these assets are received. 11. Due to banks Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Repurchase agreements 145 - 145 - Negotiable certificates of deposit 163 233 163 233 Settlement and clearing balances 1 1 1 1 Total due to banks 1 2 309 234 309 234 1 $309m (2024: $234m) is expected to be settled within 12 months from the reporting date for the consolidated entity and the Company. 2 In 2025, the Bank revised its Statement of financial position to show collateral received for derivative margins as separate line item. In 2024, $14m of collateral received was reported within this note. Accounting policy Securities sold under repurchase agreements are retained on the Statement of financial position where substantially all the risks and rewards of ownership remain with the Bank. A liability for the agreed repurchase amount is recognised within Due to banks and is measured at amortised cost. Due to banks also include negotiable certificates of deposit and settlement and clearing balances owed to other banks. Due to banks are initially recognised at fair value less any directly attributable transaction costs and are subsequently measured at amortised cost using the effective interest method. 12. Deposits and other borrowings Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Customer deposits 12,068 14,008 12,068 14,008 Super and platform deposits 1, 2 7,586 6,620 7,586 6,620 Negotiable certificates of deposit 338 292 338 292 Total deposits and other borrowings 3 19,992 20,920 19,992 20,920 1 The Bank holds a $5,703m (2024: $4,827m) platform deposit on behalf of NMMT Limited (NMMT), which is considered a related party deposit. Interest is paid on the deposit at normal commercial terms. NMMT is required to provide the Bank with 13 months' notice prior to transferring the deposit arrangement. 2 The Bank holds $1,883m (2024: $1,793m) including interest in super deposits on behalf of the AMP Super Fund. 3 $328m (2024: $494m) is contractually due to be settled more than 12 months from the reporting date for the consolidated entity and the Company. Accounting policy Deposits and other borrowings comprise deposits from related parties, and negotiable certificates of deposit, term deposits and saving deposits from retail client and wholesale money market counterparties. Deposits and other borrowings are initially recognised at fair value less directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. 13. Employee provisions Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Balance at the beginning of the year 14 16 14 16 Net provisions made during the year 31 11 31 11 Provisions used during the year (31) (13) (31) (13) Balance at the end of the year 1 14 14 14 14 1 $1m (2024: $1m) is expected to be settled more than 12 months from the reporting date for the consolidated entity and the Company. Accounting policy Provisions for employee entitlements are in respect of amounts accumulated as a result of employees rendering services up to the reporting date. Liabilities arising in respect of salaries and wages, annual leave and any other employee entitlements expected to be settled within 12 months of the reporting date are measured at their nominal amounts. All other employee entitlements are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. 14. Debt securities on issue Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Medium-term notes 1 652 652 652 652 Term borrowings 7,424 5,439 - - Total debt securities on issue 2 8,076 6,091 652 652 1 In 2025, there was refinancing of MTN amounting to $250m. 2 $3,870m (2024: $3,619m) for the consolidated entity and $250m (2024: $400m) for the Company is expected to be settled more than 12 months from the reporting date. Accounting policy The Bank issues term debt to wholesale debt market counterparties. Debt securities on issue are initially recognised at fair value less directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. Premiums, discounts and associated issue expenses are recognised using the effective interest method through the Income statement to ensure the carrying value of securities equals their redemption value by maturity date. 15. Other liabilities Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Payables to related parties 37 15 37 15 Accrued expenses and other payables 1 88 88 88 88 Others 4 8 4 8 Total other liabilities 2 129 111 129 111 1 In 2024, the Bank revised its treatment of trail commission payable to mortgage brokers to recognise a liability representing the present value of expected future trail commission payments and a corresponding increase in capitalised brokerage costs within Loans and advances. The balance as at 31 December 2025 was $66m (2024: $74m) for the consolidated entity and the Company. 2 $90m (2024: $61m) is expected to be settled within 12 months from the reporting date for the consolidated entity and the Company. Accounting policy Liabilities are recognised when the Bank has a present obligation to transfer economic resources as a result of past events. Other liabilities include accrued expenses, payables to related parties and other payables and are measured at the nominal amount payable. Other liabilities also include trail commission liabilities which are measured based on the present value of expected future trail commission payments taking into consideration behavioural loan life and outstanding balances of broker originated loans. Critical accounting estimates and judgements The measurement of trail commission liabilities is dependent on assumptions about the behavioural life and future outstanding balances of the underlying transactions. A provision for trail commissions is only recognised to the extent that the Bank can reliably estimate the future cash flows arising from a past event. 16. Subordinated debt Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Floating rate subordinated notes - external party 329 202 329 202 Total subordinated debt 1 329 202 329 202 1 The Bank issued $125m of subordinated debt in October 2025 with maturity date in October 2030 to increase Tier 2 capital. Accounting policy The Bank issues subordinated term debt with terms and conditions which qualify for inclusion as regulatory capital by the Australian Prudential Regulation Authority (APRA). Subordinated debt is initially recognised at fair value less directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. Interest expense incurred is recognised in net interest income. 17. Dividends and distributions Dividends proposed and paid during the year are shown in the table below: Consolidated & Company 2025 2025 2024 2024 Final Interim Final Interim Dividends proposed Dividend per share (cents) nil nil nil nil Dividend amount ($m) nil nil nil nil 2025 2024 $m $m Dividends paid Final dividend on ordinary shares nil 35 Interim dividend on ordinary shares 39 nil Total dividends paid on ordinary shares 39 35 Distributions paid during the year are shown in the table below: 2025 2024 $m $m Distributions paid - capital notes 19 20 Total distributions paid on capital notes 19 20 Accounting policy Dividends on ordinary shares and distributions on capital notes are recognised with a corresponding reduction of retained earnings on payment date. 18. Contributed equity Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Ordinary shares 1 394 394 394 394 Capital notes - 225 - 225 Total contributed equity 394 619 394 619 Movements in capital notes Balance at the beginning of the year 225 225 225 225 Redemption of capital notes 2 (225) - (225) - Balance at the end of the year - 225 - 225 Total contributed equity at the end of the year 394 619 394 619 1 Holders of ordinary shares have the right to receive dividends as declared and, in the event of the winding up of the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. The Company had 1,066,344,149 ordinary fully paid shares as at 31 December 2025 (2024: 1,066,344,149 shares). Fully paid ordinary shares carry the right to one vote per share. Ordinary shares have no par value. 2 The Company redeemed the capital notes issued to AMP Limited during 2025 to reduce Tier 1 capital. Accounting policy Ordinary shares and capital notes are recognised at the fair value of consideration received by the Company. Incremental costs directly attributable to the issue of certain new shares are recognised in equity as a deduction, net of tax, from the proceeds. The capital notes are non-cumulative, subordinated, perpetual and unsecured. Distributions on the capital notes are at the absolute discretion of the Company. In the event that APRA determines the Company to be non-viable, the notes may be written off. In a winding up of the Company, the capital notes will rank ahead of ordinary shares, but behind all other creditors for payment. 19. Commitments Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m Bank 1,762 2,491 1,762 2,491 Securitisation trusts 1,758 1,534 1,758 1,534 Commitments to provide credit facilities 1 3,520 4,025 3,520 4,025 Liquidity and redraw facilities to related entities - - 88 58 Total commitments 2 3,520 4,025 3,608 4,083 1 Commitments to provide credit facilities include all obligations on the Bank and securitisation trusts to provide credit facilities. 2 Commitments are classified as ECL stage 1/2/3 depending on the staging at customer level based on the Bank's internal credit rating grades. The Bank enters into arrangements with customers to extend credit in the normal course of business and are only recognised in the Statement of financial position when called upon. As the commitments may expire without being drawn upon, the notional amounts do not necessarily reflect future cash payments. The Company provides a liquidity facility to Progress Warehouse Trust No. 3, Progress Warehouse Trust No. 5 and Progress Warehouse Trust No. 6 which fluctuates depending on the size of the asset pool. The liquidity facility limit as at 31 December 2025 was $30m (2024: $10m). The Company also provides redraw facilities to the securitisation trusts which are intended to fund redraws to the Company when insufficient monthly principal collections have been received. The redraw facility limit as at 31 December 2025 was $58m (2024: $48m). 20. Auditor's remuneration Consolidated Company 2025 $'000 2024 $'000 2025 $'000 2024 $'000 Audit services - Bank 1 - - - - - Controlled entities 325 214 - - Total audit services remuneration 325 214 - - Audit related assurance services Statutory assurance services 2 75 61 75 61 Other assurance services 3 334 264 334 264 Total audit related assurance services remuneration 409 325 409 325 Total audit related services remuneration 734 539 409 325 Non-audit services - Other services 4 56 - 56 - Total other non-audit services remuneration 56 - 56 - Total auditor's remuneration 790 539 465 325 1 The audit fee is paid by a related entity within the AMP Limited group on behalf of the Company. 2 Statutory assurance services relate to AFSL audits and certain APRA reporting assurance required to be performed by the statutory auditor. 3 Other assurance services primarily relate to other APRA compliance reporting. 4 Other services primarily relates to the issuance of comfort letters relating to the Medium Term Note (MTN) program. Related party disclosures Key management personnel compensation The following table provides aggregate details of the compensation of key management personnel of the Company. With respect to non-executive directors, the compensation reflects compensation as directors of AMP Limited and the Bank in aggregate, although directors are not paid any additional fees for their membership or chairmanship of the Bank Board and Committee. Short-term employee benefits Post employment benefits Share-based payments 3 4 Other long-term benefits Termination benefits Total $'000 $'000 $'000 $'000 $'000 $'000 Non-executive directors 1, 2 2025 4,553 210 1,186 15 - 5,964 2024 4,608 204 1,418 10 - 6,240 Key management personnel excluding non-executive directors 2025 973 25 459 13 - 1,470 2024 981 29 511 30 - 1,551 Total 2025 5,526 235 1,645 28 - 7,434 2024 5,589 233 1,826 40 - 7,688 1 Non-executive directors include the CEO and Managing Director of AMP Limited. 2 Non-executive directors who are also non-executive directors of AMP Limited are not paid any additional fees for their membership or chairmanship of the AMP Bank Board and Committees. Their total remuneration earned from the AMP Limited group is disclosed (for their term as non-executive directors or key management personnel of the Company), although their responsibilities with respect to the Company are only a component of their overall responsibilities. The remuneration is paid by a related company, AMP Limited. 3 Share-based payments include reversals of previously accrued awards that have lapsed, where individuals are no longer employees of AMP. 4 In 2024 expense has been represented to reflect a revision to the applied service period provided in the year. 21. Related party disclosures (continued) Transactions with key management personnel During the year, key management personnel and their related entities have entered into transactions with the Company. All such transactions are on similar terms and conditions generally available to other employees within the group. No guarantees are given or received in relation to these transactions. The following table provides details of loans made by the Company to key management personnel: Consolidated Company 2025 $'000 2024 $'000 2025 $'000 2024 $'000 Balance as at the beginning of the year 6,986 2,091 6,986 2,091 Net advances / (repayments) (596) 4,895 (596) 4,895 Balance as at the end of the year 6,390 6,986 6,390 6,986 Interest charged 385 350 385 350 No amounts were written off in respect to any loans made to key management personnel during the current or prior year. Transactions with related parties in the AMP Limited group AMP Services Limited provides the Company with certain administrative and management services including distribution, treasury, payroll, property, computing facilities, finance, human resources and project costs, charging the Company $128m (2024: $46m). Of this total, $50m related to additional service recharges to the Bank in 2025. The services were provided in the normal course of business and on normal commercial terms and conditions or on a full cost recovery basis. As at 31 December 2025, the Company has a payable amount of $30m (2024: $8m). AMPGH provides the Company with an unconditional and irrevocable guarantee. The Company pays a guarantee fee of $1m each year, however this has been revoked from September 2025. The Bank is a member of the AMP Limited tax consolidated group and has entered into a tax sharing agreement and tax funding agreement with AMP Limited. As at 31 December 2025, the intercompany tax receivable is $7m (2024: payable of $17m) and tax paid during the year was $14m (2024: $40m). AMP Super Fund provides the Company with funding sourced from cash and term deposit facilities by superannuation customers. As at 31 December 2025, the balance including interest is $1,884m (2024: $1,793m). These deposits are provided on normal commercial terms. The interest expense on these deposits during the year was $86m (2024: $91m). The Company has amounts due to controlled securitisation trusts of $6,913m as at 31 December 2025 (2024: $4,954m). The interest expense during the year was $288m (2024: $261m). The full year audit fee is paid on the Bank's behalf by a controlled entity within the AMP Limited group. The Company holds a $5,702m deposit (2024: $4,827m) including interest from NMMT consisting of platform deposits from customers of NMMT on normal commercial terms. The interest expense for the year ended 31 December 2025 was $234m (2024: $243m). On 4 February 2019, the Company entered into a deed of indemnity with AMPGH under which AMPGH agreed to unconditionally and irrevocably indemnify the Company for losses up to $546m, which has been reduced to $200m in FY25. As at 31 December 2025, the Company provided for $40m (2024: $43m) of losses which are covered by deed of indemnity. As at 31 December 2025, the Company has an amount of $7m (2024: $7m) payable to AMP Finance Pty Ltd in relation to an intercompany facility. The facility is provided on normal commercial terms The Company provides Priority One Agency Services Pty Limited with certain administrative and management services. The services were provided in the normal course of business and on normal commercial terms and conditions or on a full cost recovery basis. Total fees paid during the year was $3m (2024: $3m). The Company has redeemed capital notes issued to AMP Limited of $225m (2024: $225m) to reduce Tier 1 capital. The Company paid $19m (2024: $20m) of distributions on capital notes during the year. The Company paid dividends of $39m (2024: $35m) to its immediate parent company, AMP Financial Investment Group Holdings Limited during the year. The Bank has a portfolio of loans to adviser and mortgage broker practices, of which some are associates of AMP Limited. 22. Notes to the statements of cash flows Consolidated Company 2025 $m 2024 $m 2025 $m 2024 $m a) Reconciliation of cash flow from operating activities Profit after tax (1) 33 (1) 33 Fair value movement on derivatives (8) 33 (8) 33 Impairment benefit (5) (10) (5) (10) Impairment of intangibles - 2 - 2 Amortisation expenses 56 55 53 52 Decrease / (increase) in interest receivable 47 (3) 47 (3) Decrease in interest payable (68) (35) (71) (37) Decrease in income tax balances (13) (25) (13) (25) Decrease in provisions - (2) - (2) Changes in operating assets and liabilities arising from cash flow movements (1,615) 128 (1,616) 128 Net cash (used in) / provided by operating activities 1 (1,607) 176 (1,614) 171 b) Changes in liabilities arising from financing activities Balance at the beginning of the year 6,293 5,693 5,808 5,354 Proceeds from issuance of debt securities 4,795 3,727 - 500 Repayment of debt securities on issue (2,816) (2,883) - (225) Redemption of subordinated debt - (250) - (250) Issue of subordinated debt 125 125 Proceeds from loans due to controlled entities - - 1,959 428 Other 8 6 2 1 Balance at the end of the year 8,405 6,293 7,894 5,808 c) Reconciliation of cash and cash equivalents Cash and balances with central banks 69 103 69 103 Due from banks 679 633 115 96 Cash and cash equivalents per the Statements of cash flows 748 736 184 199 1 In 2025, the Bank revised its Statement of financial position to show collateral placed and received for derivative margins as separate line items. These were previously reported within 'Due from banks' and 'Due to banks'. Accounting policy For the purpose of the Statement of cash flows, cash and cash equivalents comprise balances with the RBA and amounts due from banks on demand or with an original maturity of three months or less. Cash and cash equivalents are initially recognised at fair value and subsequently measured at amortised cost. Offsetting financial assets and financial liabilities The table below identifies amounts that have been offset on the Statement of financial position and amounts covered by enforceable netting arrangements or similar agreements which have not been offset. Consolidated & Company Gross amounts Amounts offset Net amounts reported on the Amounts not offset on the Statement of Net amounts Statement of financial position financial position 2025 $m $m $m $m $m Derivative financial assets 127 (68) 59 (46) 13 Total assets 127 (68) 59 (46) 13 Derivative financial liabilities 77 (68) 9 - 9 Repurchase agreements 1 145 - 145 (145) - Total liabilities 222 (68) 154 (145) 9 2024 Derivative financial assets 111 (97) 14 (14) - Total assets 111 (97) 14 (14) - Derivative financial liabilities 117 (97) 20 (8) 12 Total liabilities 117 (97) 20 (8) 12 1 Repurchase agreements form part of amounts due to banks on the Statement of financial position. Non-centrally cleared derivatives Certain derivative financial assets and liabilities are subject to legally enforceable master netting arrangements, such as an International Swaps and Derivatives Association (ISDA) master netting agreement. In certain circumstances, for example when a credit event such as a default occurs, all outstanding transactions under an ISDA agreement are terminated, the termination value is assessed and only a single net amount is payable in settlement of all transactions. An ISDA agreement does not automatically meet the criteria for offsetting in the Statement of financial position. This is because the Bank, in most cases, does not have any currently legally enforceable right to offset recognised amounts. Centrally cleared derivatives The Bank has applied netting to certain centrally cleared derivatives which are deemed to satisfy the netting requirements of AASB 132 Financial Instruments: Presentation . Accounting policy Financial assets and liabilities are offset and the net amount is reported on the Statement of financial position if there is a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. Derivative financial instruments and hedge accounting The Bank is exposed to changes in interest and foreign exchange rates relating to its ongoing business operations. To mitigate the risks, the Bank uses derivative financial instruments such as interest rate swaps and foreign exchange forwards. Derivative financial instruments are held for risk and asset management purposes only and not for the purpose of speculation. When the Bank designates certain derivatives to be part of a hedging relationship and they meet the criteria for hedge accounting, the hedges are classified as cash flow hedges. The following table shows the notional amounts and fair value of derivative financial instruments. 2025 2024 Consolidated Notional amount Fair value assets Fair value liabilities Notional amount Fair value assets Fair value liabilities $m $m $m $m $m $m Derivatives at fair value through profit and loss Interest rate swaps 7,712 2 (9) 7,407 9 (12) Foreign exchange forwards 110 4 - 110 - (8) 7,822 6 (9) 7,517 9 (20) Derivatives designated as cash flow hedges Interest rate swaps 14,811 53 - 12,470 5 - 14,811 53 - 12,470 5 - Total derivatives assets / (liabilities) 22,633 59 (9) 19,987 14 (20) 2025 2024 Company Notional amount Fair value assets Fair value liabilities Notional amount Fair value assets Fair value liabilities $m $m $m $m $m $m Derivatives at fair value through profit and loss Interest rate swaps 18,097 2 (9) 15,349 9 (12) Foreign exchange forwards 110 4 - 110 - (8) 18,207 6 (9) 15,459 9 (20) Derivatives designated as cash flow hedges Interest rate swaps 14,811 53 - 12,470 5 - 14,811 53 - 12,470 5 - Total derivatives assets / (liabilities) 33,018 59 (9) 27,929 14 (20) The following table sets out the maturity profile of the notional amounts of derivative financial instruments in a hedge relationship. Consolidated & Company 0 to 3 months $m 3 to 12 months $m 1 to 5 years $m Over 5 years $m Total 2025 Interest rate swaps Pay fixed 650 2,485 1,664 2,903 7,702 Receive fixed 1,784 3,884 1,231 210 7,109 2024 Interest rate swaps Pay fixed 380 867 1,394 3,375 6,016 Receive fixed 911 3,808 1,455 280 6,454 Methods used to test hedge effectiveness and establish the hedge ratio include regression analysis, and for some portfolio hedge relationships, a comparison to ensure the expected interest cash flows from the portfolio exceed those of the hedging instruments. The main potential source of hedge ineffectiveness from cash flow hedges is mismatches in the terms of hedged items and hedging instruments, for example the frequency and timing of when interest rates are reset. The Bank did not recognise any amounts (2024: nil) due to ineffectiveness on derivative instruments designated as cash flow hedges. Derivative financial instruments and hedge accounting (continued) Accounting policy Derivative financial instruments are initially recognised at fair value exclusive of any transaction costs on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. All derivatives are recognised as assets when fair value is positive and as liabilities when their fair value is negative. Any gains or losses arising from the change in fair value of derivatives, except those that qualify as effective cash flow hedges, are immediately recognised in the Income statement. Hedge accounting The Bank continues to apply the hedge accounting requirements under AASB 139 Financial Instruments: Recognition and Measurement . Cash flow hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised (including related tax impacts) in OCI. The balance of the cash flow hedge reserve in relation to each particular hedge is transferred to the Income statement in the period when the hedged item affects profit or loss. Any gain or loss relating to any ineffective portion of a hedge is recognised immediately in the Income statement. Hedge accounting is discontinued when a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting. The cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the Income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the Income statement. Risk management Financial Risk Management The Bank adopts the AMP Group Enterprise Risk Management framework as articulated in AMP's Risk Management Strategy which outlines how financial risk management activities are to be conducted during the year ended 31 December 2025. The group defines financial risk as the effect of uncertainty on the achievement of objectives resulting from participation in financial markets, including credit risk arising from its Australian banking activities which are limited to housing loans and business finance loans to financial advisors and mortgage brokers. Board Governance The Bank Board retains ultimate responsibility for risk management of the Bank. The Board's main risk objective is to provide approval and oversight of the Enterprise Risk Management (ERM) framework. Key risk management responsibilities include setting the Bank's risk appetite, assessing, monitoring, reviewing and objectively challenging the effectiveness of the system of risk, compliance and balance sheet management including the approval of the Risk Management Strategy (RMS), the Bank Risk Appetite Statement (RAS) and Internal Capital Adequacy Assessment Process (ICAAP), its Capital Management Framework, business plan and relevant risk policies. Board committees serve as a source of specialised expertise in a defined area. The Bank has two board committees: the Board Audit Committee (BAC) and the Board Risk and Compliance Committee (BRCC). These committees support the Board in fulfilling its responsibilities by providing oversight, review and monitoring of various key risk management practices within the Bank. The BRCC assists the Board by providing objective oversight of the implementation and operation of the Bank's ERM framework whereas the BAC assists the Board by providing an objective review of the effectiveness of the Bank's financial reporting and ERM framework. Executive Governance Bank Asset and Liability Committee (Bank ALCO) - oversees and monitors risks relating to asset and liability management within the Bank, including managing market, liquidity and funding risks within Management and Board approved limits and monitoring compliance with relevant Prudential Standards. The Bank ALCO also oversees and monitors the Bank's regulatory capital and target surplus position, and Wholesale Counterparty Credit Risk. The Group Stress Testing Committee (GSTC) - oversees the ICAAP and Bank Stress Testing. Credit Risk Committee (CRC) - oversees and monitors retail credit risk arising primarily from mortgage lending within Australia but also through the provision of business finance loans to financial advisors and mortgage brokers. The CRC approves credit policies, processes and delegations which are consistent with Bank strategy and oversees adherence to policy; monitors the performance of third party suppliers in the credit process (mortgage insurers, credit bureau, solicitors and valuers); approves arrears management policies and approves and recommends specific and collective impairment methodologies to BAC; reviews and approves stress testing scenarios on the Bank's loan portfolios to understand the implications on profit and capital; and reviews and monitors emerging material risks that can impact the Bank's credit risk. Product and Pricing Committee (PPC) - ensures the effective management and governance of product risk for the Bank. Product risk includes the risk of offering flawed, uncompetitive, outdated or unsuitable products. This includes managing interest rates, design features of and marketing campaigns for retail banking products and assessing and managing suitability obligations under the Design and Distribution Obligations. Specific responsibilities include anticipating and responding to changing customer behaviour and competitor activity; product specifications, design features and new product business cases; pricing for all retail products including interest rates, fees and charges; product profitability and portfolio mix and yield; and product marketing campaigns / promotions outside of agreed parameters. The PPC is also responsible for the new business mix in line with the Bank's risk appetite. Bank Risk and Compliance Committee (BRCC) - monitors, reviews and acts as a decision-making committee for the implementation of effective operational risk and compliance management practices, processes and systems within the Bank, taking into account business goals and strategic objectives. The BRCC also maintains oversight over the Bank's ERM framework. Specific responsibilities include: promoting a risk aware culture; maintaining the Bank's Risk Appetite Statement; ensuring active management of operational risk within risk appetite; considering the impact of the Bank's strategy on its operational risk and compliance environment; reviewing and monitoring the current risk and control environment including emerging material operational and compliance issues; monitoring the implementation and effectiveness of the Bank's ERM practices; and reviewing and endorsing the Bank's Internal Audit plan. Bank Change Governance Committee (BCGC) - oversees, monitors, reviews and acts as a decision-making committee for the governance of the Bank portfolio of projects, both Capex and Opex funded covering both in flight and project pipeline, as well as provides visibility and oversight of group projects impacting Bank operations and customers. Specific responsibilities include: provide a wholistic and end-to-end view on the Bank portfolio and group projects impacting Bank; act as a decision-making forum for the Bank portfolio of projects, initiatives and regulatory commitments that drive change across the business; maintain the Bank portfolio execution aligned to the Bank strategy and approved scope, funding and schedule commitments; evaluate and address risks, issues, and dependencies at a portfolio-level; and make decisions on portfolios, projects, risks, issues, and dependencies. 25. Risk management (continued) Financial Risk Management (continued) Risk and mitigation Financial risks arising in the Bank include market risk (principally non-traded interest rate risk), liquidity and funding risk, and credit risk. These risks are managed according to the Enterprise Risk Management Framework and individual policies for each risk category. Financial risk management includes the use of derivatives such as interest rate swaps, basis swaps and forward rate agreements to hedge exposures arising from changes in interest rates. The Bank also uses Lenders' Mortgage Insurance (LMI) to limit retail credit risk exposures. Market risk Market risk is the risk that the fair value of assets and liabilities, or future cash flows of a financial instrument, will fluctuate due to movements in financial markets, including foreign exchange rates, interest rates and credit spreads. The following table provides information on significant market risk exposures for the Bank, which could lead to an impact on profit after tax and equity, and the management of those exposures. Interest rate risk Interest rate risk is the risk of an impact on the Bank's profit after tax or equity arising from fluctuations in the fair value or future cash flows of financial instruments due to changes in market interest rates. Interest rate movements could result from changes in the absolute levels of interest rates, the shape of the yield curve, the margin between yield curves and the volatility of interest rates. Interest rate risk exposures arise from mismatches in the repricing terms of assets and liabilities (term risk) and variable rate short-term repricing bases (basis risk). The Bank uses natural offsets, interest rate swaps and basis swaps to hedge the mismatches within exposure limits. AMP Limited's Group Treasury function (Group Treasury) manages the exposure in the Bank by maintaining a net interest rate risk position within the limits delegated and approved by the Board. Interest rate risk sensitivity analysis The table below includes sensitivity analysis showing how the profit after tax and equity would have been impacted by changes in interest rates. The analysis: − shows the direct impact of a reasonably possible change in interest rates and is not intended to illustrate a remote, worst case stress test scenario; − assumes that all underlying exposures and related hedges are included and the change in the interest rate risk variable occurs at the reporting date; and − does not include the impact of any mitigating management actions over the period to the subsequent reporting date. The categories of risks faced and methods used for deriving sensitivity information did not change during the year. Consolidated & Company 2025 2024 Impact on profit after tax Impact on equity Impact on profit after tax Impact on equity Change in variables Increase / (decrease) Increase / (decrease) 1 Increase / (decrease) Increase / (decrease) 1 $m $m $m $m +100 basis points - (29) - (42) -100 basis points - 30 - 44 1 The impact on equity includes both the impact on profit after tax as well as the impact of amounts that would be taken directly to equity in respect of the portion of changes in the fair value of derivatives that qualify as cash flow hedges for hedge accounting. Foreign exchange risk Foreign exchange risk is the risk of an impact on the Bank's profit after tax or equity arising from fluctuations of the fair value of a financial asset, liability or commitment due to changes in foreign exchange rates. The Bank does not maintain unhedged foreign exchange exposures with the exception of exposures arising from the USD collateral posted for cleared swaps. There is no trading in currencies, and any funding raised in a foreign currency is immediately hedged into the functional currency. Foreign exchange exposures arising from USD collateral posted for cleared swaps are hedged using foreign exchange forward contracts. 25. Risk management (continued) Financial Risk Management (continued) Liquidity and refinancing risk Liquidity risk is the risk that the Bank is not able to meet its obligations as they fall due because of an inability to liquidate assets or obtain adequate funding when required. Refinancing risk is the risk that the Bank is not able to refinance the full quantum of its ongoing debt requirements on appropriate terms and pricing. The Bank operates under APRA's Basel III Prudential Standard APS 210 Liquidity which requires the Bank to maintain a Liquidity Coverage Ratio (LCR) and a Net Stable Funding Ratio (NSFR) of at least 100%. Funding mix The Bank's liabilities comprise a mix of customer deposits, short and long-term wholesale funding, securitisation and subordinated debts. The Bank manages its funding mix and liquidity profile within risk appetite settings to enable it to respond to changing market and regulatory conditions. Maturity analysis Below is a summary of the maturity profiles of the Bank's undiscounted financial liabilities and off-balance sheet items at the reporting date, based on contractual undiscounted repayment obligations. Repayments that are subject to notice are treated as if notice were to be given immediately. Consolidated Up to 1 year or not specified 1-5 years Over 5 years Total 2025 $m $m $m $m Non-derivative financial liabilities Due to banks 323 - - 323 Collateral received 2 46 - - 46 Deposits and other borrowings 19,705 343 - 20,048 Debt securities on issue 4,455 3,238 1,103 8,796 Subordinated debt 23 363 - 386 Derivative financial instruments Interest rate swaps 40 99 86 225 Off-balance sheet items Credit-related commitments 1 3,520 - - 3,520 Total undiscounted financial liabilities and off-balance sheet items 28,112 4,043 1,189 33,344 2024 $m $m $m $m Non-derivative financial liabilities Due to banks 244 - - 244 Collateral received 2 14 - - 14 Deposits and other borrowings 20,674 517 - 21,191 Debt securities on issue 2,758 3,489 606 6,853 Subordinated debt 20 232 - 252 Derivative financial instruments Interest rate swaps and FX forwards 28 43 19 90 Off-balance sheet items Credit-related commitments 1 4,025 - - 4,025 Total undiscounted financial liabilities and off-balance sheet items 27,763 4,281 625 32,669 1 The Bank expects that not all of the commitments will be drawn before their contractual expiry. 2 In 2025, the Bank revised its Statement of financial position to show collateral received for derivative margins as separate line item. This was previously reported within Due to banks for the year ended 2024. 25. Risk management (continued) Financial Risk Management (continued) e) Liquidity and refinancing risk (continued) Up to 1 year or Company not specified 1-5 years Over 5 years Total 2025 $m $m $m $m Non-derivative financial liabilities Due to banks 323 - - 323 Collateral received 2 46 - - 46 Deposits and other borrowings 19,705 343 - 20,048 Debt securities on issue 427 259 - 686 Due to controlled entities 4,028 2,979 1,103 8,110 Subordinated debt 27 363 - 390 Derivative financial instruments Interest rate swaps 40 99 86 225 Off-balance sheet items Credit-related commitments 1 3,520 - - 3,520 Other commitments 88 - - 88 Total undiscounted financial liabilities and off-balance sheet items 28,204 4,043 1,189 33,436 2024 $m $m $m $m Non-derivative financial liabilities Due to banks 244 - - 244 Collateral received 2 14 - - 14 Deposits and other borrowings 20,674 517 - 21,191 Debt securities on issue 287 429 - 716 Due to controlled entities 2,471 3,060 606 6,137 Subordinated debt 20 232 - 252 Derivative financial instruments Interest rate swaps and FX forwards 28 43 19 90 Off-balance sheet items Credit-related commitments 1 4,025 - - 4,025 Other commitments 58 - - 58 Total undiscounted financial liabilities and off-balance sheet items 27,821 4,281 625 32,727 1 The Company expects that not all of the commitments will be drawn before their contractual expiry. 2 In 2025, the Bank revised its Statement of financial position to show collateral received for derivative margins as separate line item. This was previously reported within Due to banks for the year ended 2024. Credit risk The Board is responsible for setting the Bank's risk appetite and risk management strategy. Management is responsible for setting the Bank's credit policy, practices and procedures in line with the risk appetite. The Group Executive, the Bank holds delegated authority from the Board and chairs the Bank's CRC. The CRC's primary objective is to oversee and ensure effective oversight, monitoring and management, and participate in the governance of credit risk for the Bank. Credit delegations are controlled by the Bank Chief Risk Officer and allocated to staff based on experience and performance and governed by a Board-approved delegation framework. Compliance monitoring is in place to measure adherence to the delegations. Credit risk in the Bank arises primarily through secured residential mortgage lending and cash-flow lending to financial advisers and mortgage brokers. The Bank's credit policies comply with Prudential Standards including APS 220 Credit Risk Manageme nt and APG 223 Residential Mortgage Lending (for housing loans) with ongoing strengthening of risk systems and processes. For housing loans, the Bank undertakes a detailed credit assessment of the borrower, the ability of the borrower to meet their contractual obligations of repayment and a review of acceptable security. The Bank reduces its exposure to default losses via the requirement for lenders' mortgage insurance where the loan as a proportion of value exceeds 80% at inception or the securities are located in high-risk areas. For business finance loans, financial analysis of the borrower's business is undertaken to perform a credit evaluation in accordance with defined policies and procedures which outline assessment criteria, the frequency at which counterparties are reviewed, and eligible forms of collateral (which are primarily in the form of the recurring cash flows of the borrower). 25. Risk management (continued) Financial Risk Management (continued) f) Credit risk (continued) The Bank is licensed under the National Consumer Credit Protection Act which is regulated by Australian Securities and Investments Commission (ASIC) and complies with ASIC's responsible lending obligations. Wholesale counterparty risk arises where the Bank is exposed to the creditworthiness of other financial institutions, governments, and other counterparties as a consequence of its funding, liquidity management and hedging of interest rate and foreign exchange risks. Credit limits for counterparties are based on external ratings provided by the rating agencies, consistent with policies of the AMP group. The Bank seeks to mitigate counterparty credit risk through diversification, the use of netting arrangements and the receipt of collateral where it is available. The Bank Wholesale Counterparty Credit Risk Policy sets out how counterparty credit risk is managed and is aligned with the Bank Risk Appetite Statement. The policy establishes a framework for identifying, assessing, managing, quantifying, and escalating counterparty credit risks, including large exposures and exposures to related entities. Wholesale counterparty credit risk is monitored by the Bank ALCO. Impairment assessment Definition of default The Bank considers a financial asset defaulted, and hence Stage 3 impaired, the earlier of, when a loan obligation is contractually more than 90 days past due, or when it is considered that a borrower is unlikely to me...

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