Credit Risk & Portfolio Quality

Meridian Commercial Bank · Q3 2024 · £4.2B Loan Book

REPORTING PERIOD
Jul – Sep 2024
NPL Ratio
3.82%
+0.34pp QoQ
Stage 2 Migration (30d)
8.7%
+1.2pp
ECL Coverage Ratio
0.94x
-0.11x QoQ
LTV Breach Rate
12.3%
+4.1pp
RWA Density
68%
+3pp
Recovery Rate (CRE)
54.2%
-8.3pp

Delinquency Vintage Curve by Origination Quarter

DPD 30+ Rate by Months on Book · 2023-Q3 Personal Loan vintage breaches policy at 18 MOB

Stage Migration Flow (Last 90 Days)

IFRS 9 Stage Movements

Sector Concentration (HHI: 0.184)

Exposure by Industry Sector

LTV Breach Rate Trend (CRE Portfolio)

% of Loans Exceeding 80% LTV · 15% property value decline in Sep 2024

Credit Utilization Spike Detector

Revolving Facilities · 30-day vs 90-day utilization change

Loan Portfolio Quality by Segment

Segment Exposure (£M) NPL Ratio Stage 2 % ECL Coverage Avg PD RWA Density Status
SME Construction £412 7.1% 18.2% 0.78x 4.8% 92% Critical
Personal Loans (2023-Q3) £287 5.4% 14.1% 0.89x 3.9% 78% Watch
CRE Office £698 4.2% 11.3% 0.91x 3.2% 73% Elevated
SME Hospitality £324 4.8% 12.7% 0.94x 3.5% 81% Elevated
Corporate Manufacturing £534 2.9% 7.8% 1.12x 2.1% 61% Stable
Residential Mortgages £892 1.8% 5.2% 1.34x 1.4% 42% Stable
SME Retail £371 3.6% 9.4% 0.97x 2.8% 69% Acceptable
Corporate Tech £418 2.1% 6.1% 1.18x 1.7% 58% Stable

NPL Roll-Rate Matrix

Probability of progression across delinquency buckets

PD Model Override Rate by Segment

% of accounts with manual PD adjustment

Avg Days-Past-Due (Portfolio)
47.2
days (+3.8 vs Q2)
Expected Credit Loss (Total)
£151M
3.59% of book
Net Credit Loss Rate (TTM)
2.14%
vs 1.87% prior year
Meridian Commercial Bank · Risk Analytics · Data as of 30-Sep-2024