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Operating Performance Profits
- Underlying profit increased 6.5% from the March 2000 quarter to $1,422 million and was 17.8% higher than the June 1999 quarter.
- Operating profit after tax increased 3.4% from the March quarter of $802 million to $829 million and is 18.9% higher than the June 1999 quarter of $697 million.
- Operating profit attributable to ordinary shareholders was up 3.2% from the March 2000 quarter to $778 million and was 14.1% higher than the June 1999 quarter.
- International franchises contributed 50.7% of the Group's June 2000 quarter operating profit after tax.
 Revenue - Total revenue increased 6.2% to $2,983 million from the March 2000 quarter.
- Net interest income increased 6.9% to $1,664 million. Higher interest earning asset volumes, up 4.6% in local currency terms, and the impact of exchange rate movements were partly offset by a change in product mix.
- Overall, margins were held steady for the quarter at 2.95% notwithstanding the impact of HomeSide. The group interest spread rose from 2.39% in the March 2000 quarter to 2.47% in the June 2000 quarter.
- Other operating income grew by 5.4% to $1,319 million.
- Other operating income represents 44.2% of total income slightly down from 44.6% for the previous quarter, due to the relatively strong net interest income growth.
 Costs - Cost to income ratio for the June 2000 quarter was steady at 50.7%, and compares with 52.4% for the June 1999 quarter.
- Cost to total assets ratio increased from 1.99% for the March 2000 quarter to 2.03%, but is down from 2.21% in June 1999. The increase reflects the combined impact of a slowing in the rate of asset growth, award based salary increases, and higher general expenses.
Productivity - Underlying profit per FTE employee for the June 2000 quarter was 6.2% higher than the March 2000 quarter and 19.1% higher than the June 1999 quarter.
 Shareholder Value Economic Profit
Economic profit for the June 2000 quarter was $410 million, 1.5% higher than the March 2000 quarter of $404 million, based on the current cost of capital and franking imputation. Economic profit represents the excess of cash earnings over the cost of capital employed in the business (11.5% for the current quarter) plus the value to shareholders of franking credits generated in the Australian operations (based on a tax rate of 34% in the current quarter).  Earnings per Share Basic earnings per share (attributable to ordinary shareholders) were 51.8 cents, an increase of 11.9% on the June 1999 quarter and 2.6% on the March 2000 quarter. In the year to date, basic earnings per share have increased by 8.3% from 139.2 cents to 150.7 cents. Cash earnings per share (earnings attributable to ordinary shareholders before goodwill amortisation) were 55.2 cents, an increase of 11.1% on the June 1999 quarter and 2.6% on the March 2000 quarter.  Capital Structure The Tier 1 capital ratio was 6.72% compared to 7.72% at March 2000 and 7.59% at June 1999. Core Tier 1 (excluding the impact of preference shares and National Income Securities), and the total capital ratio experienced similar decreases to 5.50% and 9.27% respectively. The decrease in capital ratios is attributable to the acquisition of MLC in June 2000. Under the regulations adopted by the Australian Prudential Regulation Authority, life insurance and funds management businesses are de-consolidated for the purposes of calculating capital adequacy. The portion of the investment relating to intangible assets (the difference between purchase price and the embedded value) is deducted from Tier 1, and the balance from total capital.  Return on Equity The Group's return on average ordinary shareholders' funds for the June 2000 quarter was 17.45% compared with 17.03% in the March 2000 quarter. The Group's tangible return on tangible funds for the June 2000 quarter was 21.90% compared with 21.53% in the March 2000 quarter. 
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