Profit Highlights

Financial

• Group net profit before significant items up 11% to $2,256 million for the six months ended 31 March 2002 compared to the same period in 2001
  • Cash basis - up 8% to $1,972 million
  • Cash earnings per share - up 6% to 126.8 cents
• Net profit from ongoing core operations up 15% to $2,156 million
  • Cash basis - up 14% to $1,967 million
• Return on equity of 20%
• Strong capital ratios - Total capital 10.6% and Tier one 7.9%
• Interim dividend up 8% to 72 cents per share, fully franked

Regional

• Strong growth in cash earnings from core operations
  • Australia up 22% on the March half and 11% on the September half to $1,126 million
  • Europe up 18% on the March half and 14% on the September half to $600 million
  • New Zealand up 31% on the March half and 22% on the September half to $197 million
  • Asia up 33% on the March half and 44% on the September half to $65 million

Operational

• Retail Banking (incl. Corporate Centre)
  • Net profit up 27% to $1,457 million
  • Net interest income growth of 12%
  • Other operating income up 10%
  • Housing loans up 14% to $85 billion
  • Charge to provide for doubtful debts down 10% on the same period last year and down 41% on the previous six months
• Wealth Management
  • Operating net profit before revaluations and outside equity interests up 7% to $211 million
  • Revaluation profit up 36% to $370 million ($237 million after tax)
  • 8% growth in funds under management and administration to $70 billion
• Wholesale Financial Services
  • Net profit flat at $373 million, impacted by two large provisions
  • Underlying profit up 2% to $600 million
  • Net interest margin up 13 basis points to 0.82%
  • Total income up 4% to $970 million
• Group net interest margin stable at 2.71%
• Cost to income ratio for ongoing core operations (excluding Wealth Management) reduced by 140 basis points to 48.0%
• Asset quality remains sound
  • Provisioning charge of $417 million, compared to $411 million for the prior corresponding period, and $578 million for the September half year
  • Specific provisions to gross impaired assets improved to 37.0%, compared with 30.3% at the same time last year and 33.7% at September 2001
  • Non-accrual loans to gross loans and acceptances of 0.75% compared to 0.80% at March 2001 and 0.75% at September 2001