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Results Highlights

Profitability (before abnormal items)

Quarter to
Half-Year to Half-Year
March December March March March Change
1999 1998 1998 1999 1998 %
Major Contributions (before goodwill)
Australian Financial Services 342 386 321 728 628 15.9
Clydesdale Bank 67 95 59 162 120 35.0
Northern Bank 43 36 39 79 75 5.3
Yorkshire Bank 102 78 98 180 171 5.3
National Irish Bank 13 9 9 22 21 4.8
Bank of New Zealand 70 71 73 141 140 0.7
Michigan National Corporation 62 63 50 125 99 26.3
HomeSide Inc. 39 36 16 75 16 large
Asian Group (9) 2 5 (7) 21 large
Group operating profit 666 724 576 1,390 1,109 25.3
Underlying Profit 1,180 1,213 994 2,393 1,943 23.2
Cash earnings (1) 715 775 620 1,490 1,190 25.2
Net Interest Income 1,518 1,520 1,406 3,038 2,818 7.8
Non Interest Income 1,088 1,167 942 2,255 1,745 29.2
Non interest expenses 1,377 1,423 1,310 2,800 2,539 10.3
Goodwill amortisation 49 51 44 100 81 23.5
Charge for doubtful debts 162 128 148 290 268 8.2
Abnormal items - (pre tax) - - (212) - (229) -

Balance Sheet

As at
  March December September March March/Sept
1999 1998 1998 1998 Change %
Shareholders' Equity 16,053 16,462 15,764 13,529 1.8
Total assets 254,975 256,146 251,714 233,182 1.3
Risk weighted assets 197,333 197,815 199,476 180,208 (1.1)
Gross loans and advances 166,364 167,107 164,062 148,927 1.4
Total net loans, advances and acceptances 187,159 185,622 182,354 167,704 2.6
Total deposits 164,702 163,857 158,084 146,673 4.2
Non-accrual loans, net of specific provisions 1,022 1,060 1,067 709 (4.2)

Dividends

March March
  1999 1998
Interim dividend declared: fully franked 54c 49c
Interim dividend payout ratio - before abnormal items (2) 58.3% 63.1%

Dividend coverage ratio no. of times - before abnormal items(2)
1.71 1.58

(1) Earnings excluding goodwill amortisation and abnormal items.
(2) Based on earnings attributable to ordinary shareholders.

All figures are in A$ millions unless otherwise stated.

Performance Measurements


Quarter to
Half-Year to
March December March March March
1999 1998 1998 1999 1998
Earnings(1)
Basic earnings per share
- before abnormal items
44.3c 48.9c 40.3c 93.0c 77.9c
- after abnormal items 44.3c 48.9c 30.5c 93.0c 67.3c
Diluted earnings per share
- before abnormal items
43.3c 47.7c 39.4c 91.3c 76.1c
- after abnormal items 43.3c 47.7c 30.1c 91.3c 66.1c
Return before abnormal items on average assets 1.1% 1.1% 1.0% 1.1% 1.0%
Return before abnormal items on average shareholders' funds 16.8% 18.5% 16.8% 17.5% 16.6%
Cash Earnings(2)
Basic earnings per share - pre abnormal items 47.8c 52.4c 43.4c 99.9c 83.6c
Return before abnormal items on average tangible assets 1.1% 1.2% 1.1% 1.2% 1.1%
Return before abnormal items on average tangible shareholders' funds 22.4% 24.8% 22.4% 23.4% 21.2%
Productivity Measures
Underlying profit per full time equivalent employee (to nearest A$) $101,194 $104,474 $83,857 $102,609 $81,959
Operating profit (before abnormals) per full time equivalent employee (to nearest A$) $57,108 $62,357 $48,593 $59,598 $46,779
Non interest income per full time equivalent employee (to nearest A$) $93,304 $100,512 $79,470 $96,692 $73,607
Operating costs per full time equivalent employee (to nearest A$) $118,088 $122,561 $110,516 $120,061 $107,099

Net Interest Income
Group net interest spread 2.56% 2.42% 2.46% 2.50% 2.60%
Group net interest margin 3.09% 2.95% 3.05% 3.01% 3.14%

Non Interest Income
Non interest income to total net income 41.7% 43.4% 40.1% 42.6% 38.2%

Non Interest Expenses (excl goodwill & abnormal items)
Cost/income ratio 52.8% 53.0% 55.8% 52.9% 55.6%
Operating costs to total assets 2.2% 2.2% 2.2% 2.2% 2.2%

Bad and Doubtful Debts
Total provision charge to operating profit 24.3% 17.7% 33.9% 20.9% 28.0%
Specific provision balance to total assets   0.2%   0.2% 0.3%
Specific provision balance to risk weighted assets   0.2%   0.2% 0.4%

Capital
Tier 1 ratio   6.5%   6.5% 5.8%
Tier 2 ratio   3.0%   3.0% 3.0%
Deductions   (0.3%)   (0.3%) (0.3%)
Total capital ratio   9.2%   9.2% 8.5%

Asset Quality
Gross non-accrual loans to gross loans and acceptances   0.8%   0.7% 0.8%
Net non-accrual loans to risk weighted assets   0.5%   0.5% 0.4%

Shares
Net tangible asset backing per ordinary share   $8.70   $8.36 $7.25
Weighted average shares on issue (000)   1,450,188   1,462,945 1,423,412

(1) Based on earnings attributable to ordinary shareholders.
(2) Cash basis calculations are based on earnings attributable to ordinary shareholders and exclude goodwill and related amortisation expense.

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