Asia

The contribution from Asian operations increased to $42 million, compared with $16 million in the March 2000 half year, and $37 million in the September 2000 half year.

The growth in profits has largely been driven by income growth from Wholesale Financial Services. Net interest income increased as a result of higher volumes across the business, which was partly offset by a decline in interest margins. Results were further boosted by a decrease in operating expenses, arising from cost savings following the implementation of the revised Asia strategy which followed a comprehensive review. Improvements in asset quality led to a reduction in the provision for doubtful debts during the March 2001 half year.