4. Average Balance Sheet & Related Interest

The following tables set forth the major categories of interest earning assets and interest bearing liabilities, together with their respective interest rates earned or paid by the Group. Averages are predominantly daily averages. Interest income figures include interest income on non-accruing loans to the extent cash payments have been received. Amounts classified as Other International represent interest-earning assets or interest bearing liabilities of the controlled entities and overseas branches, excluding Europe and HomeSide. Nonaccrual loans are included with interest-earning assets within loans and advances.

Average assets and interest income		Year ended Sep 03				Year ended Sep 02
		Average balance $m	Interest $m	Average rate %		Average balance $m	Interest $m	Average rate %
Interest earning assets
Due from other financial institutions
Australia		4,243	109	2.57		2,824	102	3.61
Europe		6,350	226	3.56		6,796	223	3.28
Other International		3,700	60	1.62		5,605	114	2.03
Regulatory deposits
Europe		140	2	1.43		142	3	2.11
Other International		71	-	-		15	-	-
Marketable debt securities
Australia		16,433	881	5.36		13,910	712	5.12
Europe		9,622	394	4.09		11,312	476	4.21
Other International		8,444	270	3.20		10,212	321	3.14
Loans and advances(1)
Australia		130,541	8,528	6.53		112,714	7,385	6.55
Europe		77,462	4,139	5.34		69,658	4,278	6.14
HomeSide		-	-	-		21	94	n/a
Other International		36,181	2,294	6.34		33,096	2,064	6.24
Other interest earning assets(2)
Australia		8	138	n/a		10	751	n/a
Europe		84	48	n/a		854	59	n/a
HomeSide		-	-	n/a		3,331	170	n/a
Other International		39	11	n/a		27	(277)	n/a
Intragroup loans(3)
Europe		8,719	374	4.29		4,026	236	5.86
Other International		9,357	248	2.65		9,187	219	2.38
Average interest earning assets and interest   income incl intragroup loans by:
Australia		151,225	9,656	6.39		129,458	8,950	6.91
Europe		102,377	5,183	5.06		92,788	5,275	5.69
HomeSide		-	-	-		3,352	264	7.88
Other International		57,792	2,883	4.99		58,142	2,441	4.20
Total average interest earning assets and   interest income incl. intragroup loans		311,394	17,722	5.69		283,740	16,930	5.97
Intragroup loans eliminations		(18,076)	(622)	3.44		(13,213)	(455)	3.44
Total average interest earning assets by:
Australia		151,225	9,656	6.39		129,458	8,950	6.91
Europe		93,658	4,809	5.13		88,762	5,039	5.68
HomeSide		-	-	-		3,352	264	7.88
Other International		48,435	2,635	5.44		48,955	2,222	4.54
Total average interest earning assets		293,318	17,100	5.83		270,527	16,475	6.09
Non-interest earning assets
Investments relating to life insurance business(4)
Australia		31,246				32,178
Europe		291				310
Other International		199				93
Acceptances
Australia		21,346				21,231
Europe		122				200
Other International		13				119
Property, plant and equipment
Australia		1,362				1,381
Europe		746				767
HomeSide		-				40
Other International		119				172
Other assets
Australia		22,454				20,972
Europe		8,186				6,533
HomeSide		-				6,481
Other International		5,115				3,617
Total average non-interest earning assets by:
Australia		76,408				75,762
Europe		9,345				7,810
HomeSide		-				6,521
Other International		5,446				4,001
Total average non-interest earning assets		91,199				94,094
Provision for doubtful debts
Australia		(1,200)				(1,413)
Europe		(767)				(936)
HomeSide		-				(22)
Other International		(289)				(300)
Total average assets by:
Australia		226,433				203,807
Europe		102,236				95,636
HomeSide		-				9,851
Other International		53,592				52,656
Total average assets		382,261				361,950
Percentage of total average assets   applicable to international operations		40.8%				43.7%

 

Average liabilities and interest expense		Year ended Sep 03				Year ended Sep 02
		Average balance $m	Interest $m	Average rate %		Average balance $m	Interest $m	Average rate %
Interest bearing liabilities
Time deposits
Australia		46,911	2,165	4.62		37,411	1,735	4.64
Europe		31,262	985	3.15		32,158	1,173	3.65
Other International		26,854	955	3.56		24,367	799	3.28
Savings deposits
Australia		8,010	337	4.21		6,035	255	4.23
Europe		13,439	261	1.94		14,056	300	2.13
Other International		3,243	107	3.30		2,702	62	2.29
Other demand deposits
Australia		36,290	1,041	2.87		35,022	872	2.49
Europe		13,824	216	1.56		14,384	261	1.81
Other International		2,877	59	2.05		4,459	160	3.59
Government and Official Institutions
Australia		894	36	4.03		805	31	3.85
Other International		1,948	23	1.18		1,706	39	2.29
Due to other financial institutions
Australia		5,750	184	3.20		4,940	180	3.64
Europe		25,471	982	3.86		16,963	667	3.93
Other International		14,074	283	2.01		17,435	424	2.43
Short-term borrowings
HomeSide		-	-	n/a		448	129	28.79
Other International		3,919	46	1.17		4,588	81	1.77
Long-term borrowings
Australia		19,787	654	3.31		19,633	803	4.09
HomeSide		-	-	-		2,848	95	3.34
Other International		577	151	26.17		213	10	4.69
Other interest bearing liabilities
Australia		8,712	805	9.24		7,088	977	13.78
Europe		2	1	n/a		821	-	n/a
Other International		1	245	n/a		-	29	n/a
Loan Capital
Australia		399	20	5.01		626	29	4.63
Europe		1,246	125	10.03		1,167	142	12.17
Intragroup loans
Australia		18,076	622	3.44		13,213	455	3.44
Average interest bearing liabilities and   interest expense incl intragroup loans by:
Australia		144,829	5,864	4.05		124,773	5,337	4.28
Europe		85,244	2,570	3.01		79,549	2,543	3.20
HomeSide		-	-	-		3,296	224	6.80
Other International		53,493	1,869	3.49		55,470	1,604	2.89
Total average interest bearing liabilities   and interest expense incl. intragroup loans		283,566	10,303	3.63		263,088	9,708	3.69
Intragroup loans eliminations		(18,076)	(622)	3.44		(13,213)	(455)	3.44
Total average interest bearing liabilities   and interest expense by:
Australia		126,753	5,242	4.14		111,560	4,882	4.38
Europe		85,244	2,570	3.01		79,549	2,543	3.20
HomeSide		-	-	-		3,296	224	6.80
Other International		53,493	1,869	3.49		55,470	1,604	2.89
Total average interest bearing liabilities   and interest expense		265,490	9,681	3.65		249,875	9,253	3.70
Non-interest bearing liabilities
Deposits not bearing interest
Australia		5,215				4,790
Europe		5,776				5,542
Other International		1,273				1,191
Liability on acceptances
Australia		21,346				21,231
Europe		122				200
Other International		13				119
Life insurance policy liabilities(4)
Australia		30,782				30,760
Europe		220				258
Other International		310				61
Other liabilities
Australia		16,485				13,888
Europe		8,126				6,404
HomeSide		-				1,372
Other International		2,992				2,412
Total average non-interest bearing liabilities by:
Australia		73,828				70,669
Europe		14,244				12,404
HomeSide		-				1,372
Other International		4,588				3,783
Total average non-interest bearing liabilities		92,660				88,228

 

Equity		Year ended Sep 03				Year ended Sep 02
		Average balance $m	Interest $m	Average rate %		Average balance $m	Interest $m	Average rate %
Equity
Ordinary shares		6,559				7,878
Preference share capital		730				730
Trust Preferred Securities		5				-
National Income Securities		1,945				1,945
Contributed equity		9,239				10,553
Reserves		1,285				1,811
Retained profits		12,735				11,415
Parent entity interest		23,259				23,779
Outside equity interest in controlled entities		852				68
Equity		24,111				23,847
Total liabilities and equity		382,261				361,950
Percentage of total average liabilities applicable   to international operations		44.0%				46.1%

(1)	Includes non-accrual loans.
(2)	Includes interest on derivatives and escrow deposits.
(3)	The calculations for Australia, Europe, HomeSide and Other International include intragroup cross border loans/borrowings and associated interest.
(4)	Included within investments relating to life insurance business are interest-earning debt securities. The interest earned from these securities is reported in life insurance income, and has therefore been treated as non-interest earning for the purposes of this note. The assets and liabilities held in the statutory funds of the Group's Australian life insurance business are subject to the restrictions of the Life Insurance Act 1995.