Report for the full year ended 30 June 2006 | $M | |||
Revenues from ordinary activities | Up 14% to $28,564 | |||
Profit (loss) from ordinary activities after tax attributable to members | Up 16% to $3,928 | |||
Net profit (loss) for the period attributable to members | Up 16% to $3,928 | |||
Dividends (distributions) | ||||
Final Dividend – fully franked (cents per share) | 130 | |||
Interim Dividend – fully franked (cents per share) | 94 | |||
Record date for determining entitlements to the dividend | 18 August 2006 | |||
(1) | Rule 4.3A Item No. 2 |
Ex-dividend Date | 14 August 2006 | |
Record Date | 18 August 2006 | |
Final Dividend payment Date | 5 October 2006 | |
Annual General Meeting | 3 November 2006 | |
2007 Interim results Date | 14 February 2007 |
Warwick Bryan | ||
Phone: | 02 9378 5130 | |
Facsimile: | 02 9378 2344 | |
Email: | ir@cba.com.au |
Highlights | 2 | |||
Financial Performance and Business Review | 2 | |||
Group Performance Summary | 3 | |||
Shareholder Summary | 3 | |||
Balance Sheet Summary | 4 | |||
Key Performance Indicators | 4 | |||
Banking Analysis | 6 | |||
Financial Performance and Business Review | 6 | |||
Key Performance Indicators | 7 | |||
Balance Sheet | 9 | |||
Australian Retail | 10 | |||
Premium, Business & Corporate and Institutional | 12 | |||
Asia Pacific | 14 | |||
Funds Management Analysis | 16 | |||
Financial Performance and Business Review | 16 | |||
Key Performance Indicators | 17 | |||
Funds under Administration | 18 | |||
Insurance Analysis | 20 | |||
Financial Performance and Business Review | 20 | |||
Key Performance Indicators | 21 | |||
Annual Inforce Premiums | 22 | |||
Shareholder Investment Returns | 23 | |||
Financial Statements | 24 | |||
Consolidated Income Statement | 24 | |||
Consolidated Balance Sheet | 25 | |||
Consolidated Statement of Cash Flows | 26 | |||
Appendices | 28 |
Full Year | Half Year | |||||||||||||||
Net Profit after | 30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | ||||||||||||
Income Tax | $M | $M | $M | $M | ||||||||||||
Statutory basis | 3,928 | 3,400 | 1,929 | 1,999 | ||||||||||||
Cash basis | 4,053 | 3,492 | 1,992 | 2,061 | ||||||||||||
Cash basis ex HK sale | 3,908 | 3,492 | 1,992 | 1,916 | ||||||||||||
• | Strong growth in banking income, following average interest earning asset growth of 12% to $275 billion and net interest margin contraction of seven basis points (after adjusting for the impact of AIFRS); | |
• | Growth in Funds under Administration of 23% to $152 billion supported by both strong inflows and continued strength in investment markets; | |
• | Solid growth in insurance premiums, operating margins and favourable claims experience; | |
• | Continued strength in credit quality across the portfolio; and | |
• | Underlying expense growth of 5% with continued productivity improvements. |
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419101.gif)
2 Commonwealth Bank of Australia
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Group Performance Summary | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Net interest income(1) | 6,514 | 6,026 | 8 | 3,259 | 3,255 | — | ||||||||||||||||||
Other banking income(1) | 3,036 | 2,845 | 7 | 1,591 | 1,445 | 10 | ||||||||||||||||||
Total Banking Income | 9,550 | 8,871 | 8 | 4,850 | 4,700 | 3 | ||||||||||||||||||
Funds management income | 1,543 | 1,247 | 24 | 828 | 715 | 16 | ||||||||||||||||||
Insurance income | 742 | 747 | (1 | ) | 356 | 386 | (8 | ) | ||||||||||||||||
Total Operating Income | 11,835 | 10,865 | 9 | 6,034 | 5,801 | 4 | ||||||||||||||||||
Shareholder investment returns | 101 | 237 | (57 | ) | 37 | 64 | (42 | ) | ||||||||||||||||
Profit on sale of the Hong Kong Insurance business | 145 | — | — | — | 145 | — | ||||||||||||||||||
Total Income | 12,081 | 11,102 | 9 | 6,071 | 6,010 | 1 | ||||||||||||||||||
Operating expenses | 5,994 | 5,719 | (5 | ) | 3,027 | 2,967 | (2 | ) | ||||||||||||||||
Which new Bank | — | 150 | — | — | — | — | ||||||||||||||||||
Total Operating Expenses | 5,994 | 5,869 | (2 | ) | 3,027 | 2,967 | (2 | ) | ||||||||||||||||
Bad debts expense | 398 | 322 | (24 | ) | 210 | 188 | (12 | ) | ||||||||||||||||
Net profit before income tax | 5,689 | 4,911 | 16 | 2,834 | 2,855 | (1 | ) | |||||||||||||||||
Corporate tax expense(2) | 1,605 | 1,409 | (14 | ) | 829 | 776 | (7 | ) | ||||||||||||||||
Minority interests(3) | 31 | 10 | large | 13 | 18 | 28 | ||||||||||||||||||
NPAT (“cash basis”) | 4,053 | 3,492 | 16 | 1,992 | 2,061 | (3 | ) | |||||||||||||||||
Defined benefit superannuation plan expense | (25 | ) | (53 | ) | 53 | (6 | ) | (19 | ) | 68 | ||||||||||||||
Treasury shares | (100 | ) | (39 | ) | large | (57 | ) | (43 | ) | (33 | ) | |||||||||||||
NPAT (“statutory basis”) | 3,928 | 3,400 | 16 | 1,929 | 1,999 | (4 | ) | |||||||||||||||||
Represented by: | ||||||||||||||||||||||||
Banking | 3,227 | 2,913 | 11 | 1,638 | 1,589 | 3 | ||||||||||||||||||
Funds management | 400 | 351 | 14 | 217 | 183 | 19 | ||||||||||||||||||
Insurance | 215 | 156 | 38 | 112 | 103 | 9 | ||||||||||||||||||
NPAT (“underlying basis”) | 3,842 | 3,420 | 12 | 1,967 | 1,875 | 5 | ||||||||||||||||||
Shareholder investment returns | 66 | 177 | (63 | ) | 25 | 41 | (39 | ) | ||||||||||||||||
Which new Bank | — | (105 | ) | — | — | — | — | |||||||||||||||||
Cash NPAT ex Hong Kong Sale | 3,908 | 3,492 | 12 | 1,992 | 1,916 | 4 | ||||||||||||||||||
Profit on sale of Hong Kong Insurance Business | 145 | — | — | — | 145 | — | ||||||||||||||||||
NPAT (“cash basis”) | 4,053 | 3,492 | 16 | 1,992 | 2,061 | (3 | ) | |||||||||||||||||
(1) | Due to a change in accounting policy regarding classification of interest expense on certain non traded derivatives, a reclassification of $29 million between Net Interest Income and Other Banking Income has occurred in the half year ended 31 December 2005. There was no impact on total banking income or on profit. | |
(2) | For purposes of presentation, Policyholder tax benefit and Policyholder tax expense are shown on a net basis. | |
(3) | Minority interests includes preference dividends paid to holders of preference shares in ASB Capital. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Shareholder Summary | Jun 05 % | Dec 05 % | ||||||||||||||||||||||
Dividend per share – fully franked (cents) | 224 | 197 | 14 | 130 | 94 | 38 | ||||||||||||||||||
Dividend cover – cash (times) | 1.4 | 1.3 | n/a | 1.2 | 1.7 | n/a | ||||||||||||||||||
Earnings per share (cents)(1) | ||||||||||||||||||||||||
Statutory – basic | 308.2 | 259.6 | 19 | 151.1 | 157.1 | (4 | ) | |||||||||||||||||
Cash basis – basic | 315.9 | 264.8 | 19 | 154.9 | 160.9 | (4 | ) | |||||||||||||||||
Cash basis – basic excluding the sale of Hong Kong | 304.6 | 264.8 | 15 | 154.9 | 149.5 | 4 | ||||||||||||||||||
Dividend payout ratio (%) | ||||||||||||||||||||||||
Statutory | 73.3 | 77.0 | (v370)bpts | 86.5 | 60.6 | large | ||||||||||||||||||
Cash basis | 71.0 | 74.9 | (v390)bpts | 83.7 | 58.8 | large | ||||||||||||||||||
Weighted avg no. of shares – statutory basic (M)(1) | 1,275 | 1,260 | 1 | 1,277 | 1,273 | — | ||||||||||||||||||
Weighted avg no. of shares – cash basic (M)(2) | 1,283 | 1,269 | 1 | 1,285 | 1,281 | — | ||||||||||||||||||
Return on equity – cash (%) | 21.3 | 18.8 | 250bpts | 20.8 | 21.7 | (v90)bpts | ||||||||||||||||||
(1) | For definitions refer to appendix 24 page 67. | |
(2) | Fully diluted EPS and weighted average number of shares (fully diluted) are disclosed on page 63. |
Profit Announcement 3
As at | ||||||||||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | Jun 06 vs | Jun 06 vs | ||||||||||||||||
Balance Sheet Summary | $M | $M | $M | Dec 05 % | Jun 05 % | |||||||||||||||
Lending assets(1) | 266,096 | 254,947 | 235,862 | 4 | 13 | |||||||||||||||
Total assets | 369,103 | 351,193 | 337,404 | 5 | 9 | |||||||||||||||
Total liabilities | 347,760 | 331,343 | 314,761 | 5 | 10 | |||||||||||||||
Shareholders’ equity | 21,343 | 19,850 | 22,643 | 8 | (6 | ) | ||||||||||||||
Assets held and FUA | ||||||||||||||||||||
On balance sheet: | ||||||||||||||||||||
Banking assets | 340,254 | 321,477 | 304,620 | 6 | 12 | |||||||||||||||
Insurance funds under administration | 20,792 | 21,217 | 22,959 | (2 | ) | (9 | ) | |||||||||||||
Other insurance and internal funds management assets | 8,057 | 8,499 | 9,825 | (5 | ) | (18 | ) | |||||||||||||
369,103 | 351,193 | 337,404 | 5 | 9 | ||||||||||||||||
Off balance sheet: | ||||||||||||||||||||
Funds under administration | 130,721 | 115,757 | 100,105 | 13 | 31 | |||||||||||||||
499,824 | 466,950 | 437,509 | 7 | 14 | ||||||||||||||||
(1) | Lending assets comprise Loans, Advances, and Other Receivables (gross of provisions for impairment and excluding securitisation) and bank acceptances of customers. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Key Performance Indicators | Jun 05 % | Dec 05 % | ||||||||||||||||||||||
Banking | ||||||||||||||||||||||||
Underlying NPAT ($M)(1) | 3,227 | 2,913 | 11 | 1,638 | 1,589 | 3 | ||||||||||||||||||
Net interest margin (%)(2) (3) | 2.34 | 2.43 | (9)bpts | 2.29 | 2.39 | (10)bpts | ||||||||||||||||||
Average interest earning assets ($M)(4) | 274,798 | 244,708 | 12 | 282,553 | 267,169 | 6 | ||||||||||||||||||
Average interest bearing liabilities ($M)(4) | 255,100 | 225,597 | 13 | 263,203 | 247,129 | 7 | ||||||||||||||||||
Expense to income (%) | 47.7 | 50.6 | 6 | 47.4 | 48.1 | 1 | ||||||||||||||||||
Funds Management | ||||||||||||||||||||||||
Underlying NPAT ($M)(1) | 400 | 351 | 14 | 217 | 183 | 19 | ||||||||||||||||||
Operating income to average funds under administration (%) | 1.12 | 1.08 | 4bpts | 1.14 | 1.10 | 4bpts | ||||||||||||||||||
Funds under administration – spot ($M) | 151,513 | 123,064 | 23 | 151,513 | 136,974 | 11 | ||||||||||||||||||
Expense to average FUA (%) | 0.71 | 0.72 | 1 | 0.72 | 0.70 | (3 | ) | |||||||||||||||||
Insurance | ||||||||||||||||||||||||
Underlying NPAT ($M)(1) | 215 | 156 | 38 | 112 | 103 | 9 | ||||||||||||||||||
Inforce premiums ($M) | 1,223 | 1,265 | (3 | ) | 1,223 | 1,216 | 1 | |||||||||||||||||
Expense to average inforce premiums (%) | 36.7 | 45.5 | 19 | 33.6 | 40.5 | 17 | ||||||||||||||||||
Capital Adequacy | ||||||||||||||||||||||||
Tier 1 (%) | 7.56 | 7.46 | 10bpts | 7.56 | 7.54 | 2bpts | ||||||||||||||||||
Total (%) | 9.66 | 9.75 | (9)bpts | 9.66 | 9.81 | (15)bpts | ||||||||||||||||||
Adjusted Common Equity (%) | 4.50 | 4.91 | (41)bpts | 4.50 | 5.00 | (50)bpts | ||||||||||||||||||
(1) | Underlying NPAT excludes Which new Bank expenses and shareholder investment returns. | |
(2) | Net Interest Margin for the half year ended 31 December 2005 has been restated due to a change in accounting policy regarding classification of interest expense on certain non traded derivatives. | |
(3) | After adjusting for AIFRS the underlying variance is seven basis points (full year) and nine basis points (half year). Refer to pages 32 and 33 for the reconciliation of Net Interest Margin. | |
(4) | Average interest earning assets and average interest bearing liabilities have been adjusted to remove the impact of securitisation. Refer to Average Balance Sheet Page 30. |
Credit Ratings | Long–term | Short–term | Affirmed | |||||||||
Fitch Ratings | AA | F1+ | Jun 06 | |||||||||
Moody’s Investor Services | Aa3 | P-1 | Jun 06 | |||||||||
Standards & Poor’s | AA- | A-1+ | Jun 06 | |||||||||
4 Commonwealth Bank of Australia
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419102.gif)
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419104.gif)
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419106.gif)
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419103.gif)
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419105.gif)
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419107.gif)
(1) | 2006 and 2005 presented on an AIFRS basis excluding the profit from sale of the Hong Kong Insurance Business. |
Profit Announcement 5
• | Continued strong volume growth in home loans, up 10% since June 2005 to $155 billion; | |
• | Domestic deposit volume growth of 7% since June 2005 to $151 billion including 11% growth in savings accounts; | |
• | Significant improvement in business lending volumes, up 20% since June 2005 to $76 billion; | |
• | Net interest margin (after adjusting for AIFRS) decreased seven basis points over the year in a competitive market; | |
• | Good expense control, with operating expenses increasing 4% compared with the prior year; and | |
• | Credit quality of the overall portfolio remaining sound. |
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419108.gif)
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419109.gif)
• | Business Lending price pressure of four basis points due to competitive pricing and the full impact of large, lower margin institutional loans written in the first half of the year; | |
• | Home Loan margin pressure of three basis points due to timing of the cash rate increase and strong price competition; and | |
• | Funding mix, asset mix, deposit pricing and non lending interest earning assets contributed two basis points to the decline. |
6 Commonwealth Bank of Australia
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Key Performance Indicators | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Net interest income | 6,514 | 6,026 | 8 | 3,259 | 3,255 | — | ||||||||||||||||||
Other banking income | 3,036 | 2,845 | 7 | 1,591 | 1,445 | 10 | ||||||||||||||||||
Total Banking income | 9,550 | 8,871 | 8 | 4,850 | 4,700 | 3 | ||||||||||||||||||
Operating expenses | 4,558 | 4,380 | (4 | ) | 2,298 | 2,260 | (2 | ) | ||||||||||||||||
Which new Bank | — | 112 | — | — | — | — | ||||||||||||||||||
Total operating expenses | 4,558 | 4,492 | (1 | ) | 2,298 | 2,260 | (2 | ) | ||||||||||||||||
Bad debts expense | 398 | 322 | (24 | ) | 210 | 188 | (12 | ) | ||||||||||||||||
Net profit before income tax | 4,594 | 4,057 | 13 | 2,342 | 2,252 | 4 | ||||||||||||||||||
Income tax expense | 1,339 | 1,220 | (10 | ) | 691 | 648 | (7 | ) | ||||||||||||||||
Minority interests | 28 | 3 | large | 13 | 15 | 13 | ||||||||||||||||||
NPAT (“cash basis”) | 3,227 | 2,834 | 14 | 1,638 | 1,589 | 3 | ||||||||||||||||||
NPAT(“underlying basis”)(1) | 3,227 | 2,913 | 11 | 1,638 | 1,589 | 3 | ||||||||||||||||||
(1) | Underlying basis excludes Which new Bank expenses. |
Productivity and other measures | ||||||||||||||||||||||||
Net interest margin (%)(1) | 2. 34 | 2.43 | (9)bpts | 2.29 | 2.39 | (10)bpts | ||||||||||||||||||
Expense to income (%) | 47. 7 | 50.6 | 6 | 47.4 | 48.1 | 1 | ||||||||||||||||||
Expense to income – underlying (%) | 47. 7 | 49.4 | 3 | 47.4 | 48.1 | 1 | ||||||||||||||||||
Effective corporate tax rate (%) | 29. 1 | 30.1 | (100)bpts | 29.5 | 28.8 | 70bpts | ||||||||||||||||||
(1) | After adjusting for AIFRS the underlying variance is seven basis points (full year) and nine basis points (half year). Refer to pages 32 and 33 for the reconciliation of Net Interest Margin. |
Total Banking NPAT (“Underlying Basis”) | ||||||||||||||||||||||||
Australian Retail Products | 1,794 | 1,589 | 13 | 900 | 894 | 1 | ||||||||||||||||||
Premium, Business & Corporate and Institutional Products | 1,038 | 1,009 | 3 | 537 | 501 | 7 | ||||||||||||||||||
Asia Pacific | 364 | 291 | 25 | 182 | 182 | — | ||||||||||||||||||
Other | 31 | 24 | 29 | 19 | 12 | 58 | ||||||||||||||||||
Total Banking NPAT (“Underlying Basis”) | 3,227 | 2,913 | 11 | 1,638 | 1,589 | 3 | ||||||||||||||||||
Full Year | Half Year | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
$M | $M | $M | $M | |||||||||||||
Commissions | 1,635 | 1,545 | 820 | 815 | ||||||||||||
Lending fees | 800 | 733 | 411 | 389 | ||||||||||||
Trading income | 505 | 440 | 261 | 244 | ||||||||||||
Other income | 175 | 127 | 138 | 37 | ||||||||||||
3,115 | 2,845 | 1,630 | 1,485 | |||||||||||||
Non-trading derivatives | (79 | ) | — | (39 | ) | (40 | ) | |||||||||
Other banking income | 3,036 | 2,845 | 1,591 | 1,445 | ||||||||||||
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419110.gif)
• | Commissions: increased by 6% on the prior year to $1,635 million. The increase was mainly driven by volume increases including a 30% increase in CommSec trading volume; | |
• | Lending fees: increased by 9% compared with the prior year to $800 million. After adjusting for AIFRS which required $25 million of net fee income to be deferred, lending fee growth was up 13% compared with the prior year. The result was driven by an increase in lending volumes in the business and corporate lending portfolios together with higher volumes in overdraft facilities; | |
• | Trading income increased 15% on the prior year to $505 million reflecting favourable market conditions; and | |
• | Other income increased $48 million on the prior year. The current year includes $32 million in relation to the Mastercard initial public offering. The prior year includes $52 million relating to tax consolidation legislation impacting the leasing business. Excluding these items, the increase was mainly due to structured transactions and leasing income. | |
Other income in the second half increased by $101 million to $138 million. After adjusting for the impact of AIFRS and timing of asset sales, other income was flat. |
Profit Announcement 7
• | Average salary increases of 4% reflecting labour market movements and other inflation-related expense increases; | |
• | Commencement of a number of projects supporting the strategic priorities of the Bank (including customer service and business banking initiatives) totalling $40 million; partly offset by | |
• | Ongoing realisation of expense savings as a result of Which new Bank efficiency initiatives. |
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419111.gif)
• | A major portion of the credit portfolio is in home loans which have a lower risk weighting compared with other portfolios; | |
• | The continuing strong asset quality in the business lending book; and | |
• | A level of impaired assets which is at the lower end of levels achieved over the past decade. |
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419112.gif)
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419113.gif)
8 Commonwealth Bank of Australia
As At | ||||||||||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | Jun 06 vs | Jun 06 vs | ||||||||||||||||
Total Banking Assets & Liabilities | $M | $M | $M | Dec 05 % | Jun 05 % | |||||||||||||||
Interest earning assets | ||||||||||||||||||||
Home loans including securitisation | 167,121 | 159,339 | 150,677 | 5 | 11 | |||||||||||||||
Less: securitisation | (12,607 | ) | (9,124 | ) | (10,818 | ) | 38 | 17 | ||||||||||||
Home loans | 154,514 | 150,215 | 139,859 | 3 | 10 | |||||||||||||||
Personal | 17,228 | 15,967 | 15,668 | 8 | 10 | |||||||||||||||
Business and corporate | 76,044 | 71,502 | 63,549 | 6 | 20 | |||||||||||||||
Loans, advances and other receivables(1) | 247,786 | 237,684 | 219,076 | 4 | 13 | |||||||||||||||
Non lending interest earning assets | 40,283 | 39,431 | 36,273 | 2 | 11 | |||||||||||||||
Total interest earning assets | 288,069 | 277,115 | 255,349 | 4 | 13 | |||||||||||||||
Other assets(2) | 52,185 | 44,362 | 49,271 | 18 | 6 | |||||||||||||||
Total assets | 340,254 | 321,477 | 304,620 | 6 | 12 | |||||||||||||||
Interest bearing liabilities | ||||||||||||||||||||
Transaction deposits | 37,079 | 34,287 | 34,694 | 8 | 7 | |||||||||||||||
Savings deposits | 41,421 | 40,030 | 38,461 | 3 | 8 | |||||||||||||||
Investment deposits | 67,364 | 67,462 | 66,087 | — | 2 | |||||||||||||||
Other demand deposits | 20,325 | 19,573 | 21,806 | 4 | (7 | ) | ||||||||||||||
Total interest bearing deposits | 166,189 | 161,352 | 161,048 | 3 | 3 | |||||||||||||||
Deposits not bearing interest | 7,037 | 7,371 | 6,978 | (5 | ) | 1 | ||||||||||||||
Deposits and other public borrowings | 173,226 | 168,723 | 168,026 | 3 | 3 | |||||||||||||||
Other interest bearing liabilities | 99,976 | 95,538 | 72,935 | 5 | 37 | |||||||||||||||
Total interest bearing liabilities | 266,165 | 256,890 | 233,983 | 4 | 14 | |||||||||||||||
Securitisation debt issues | 13,505 | 9,849 | 12,144 | 37 | 11 | |||||||||||||||
Non interest bearing liabilities | 44,515 | 40,316 | 41,422 | 10 | 7 | |||||||||||||||
Total liabilities | 324,185 | 307,055 | 287,549 | 6 | 13 | |||||||||||||||
Provisions for Impairment | ||||||||||||||||||||
Collective provisions | 1,046 | 1,041 | 1,390 | — | (25 | ) | ||||||||||||||
Individually assessed provisions | 171 | 179 | 157 | (4 | ) | 9 | ||||||||||||||
Total provisions | 1,217 | 1,220 | 1,547 | — | (21 | ) | ||||||||||||||
General reserve for credit losses (pre-tax equivalent) | 500 | 404 | — | 24 | — | |||||||||||||||
Total provisions including general reserve for credit losses | 1,717 | 1,624 | 1,547 | 6 | 11 | |||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
Jun 06 vs | Jun 06 vs | |||||||||||||||||||||||
Asset Quality(3) | 30/06/06 | 30/06/05 | Jun 05 % | 30/06/06 | 31/12/05 | Dec 05 % | ||||||||||||||||||
Risk weighted assets ($M)(4) | 216,438 | 189,559 | 14 | 216,438 | 202,667 | 7 | ||||||||||||||||||
Net impaired assets ($M) | 155 | 219 | (29 | ) | 155 | 217 | (29 | ) | ||||||||||||||||
General provisions as a % of risk weighted assets | — | 0. 73 | — | — | — | — | ||||||||||||||||||
Collective provisions plus general reserve for credit losses (pre-tax equivalent)/risk weighted assets (%) | 0. 71 | — | — | 0. 71 | 0. 71 | — | ||||||||||||||||||
Specific provisions for impairment as a % of gross impaired assets net of interest reserved | — | 41. 8 | — | — | — | — | ||||||||||||||||||
Individually assessed provisions for impairment as a % of gross impaired assets | 52. 5 | — | — | 52. 5 | 45. 2 | 16 | ||||||||||||||||||
Bad debts expense as a % of risk weighted assets annualised (%) | 0. 18 | 0. 17 | 1bpt | 0. 19 | 0. 19 | — | ||||||||||||||||||
(1) | Gross of provisions for impairment which are included in Other Assets. | |
(2) | Other assets include Bank acceptances of customers, provision for impairment and securitisation assets. | |
(3) | Asset quality coverage ratios are not comparable to prior periods due to AIFRS. | |
(4) | No AIFRS adjustment is made to Risk Weighted Assets in the prior periods as the APRA prudential requirement is to apply previous Australian GAAP. |
• | The rollout of CommSee, the Bank’s state-of-the-art customer management system, across our 1,000 strong branch network and seven call centres; |
• | The implementation of CommServe, a training program designed to ensure our people are able to obtain maximum value from CommSee in improving Sales and Service outcomes. Over 14,000 staff undertook CommServe training during the 2006 financial year; |
• | The refurbishment of a further 133 branches, taking to 384 the number of branches refurbished over the past three years into a design/layout more conducive to effective sales and service; |
• | An additional 450 frontline customer service staff; |
• | Improved access to Australia’s largest electronic banking and branch network through two new Streamline products with flat monthly fees, and the removal of transaction fees from NetBank; |
• | The introduction of a low interest rate credit card (“Yellow”) to meet growing customer demand in this segment of the market; and |
• | The pilot of a new customer service model which enables our frontline staff to spend more time on customer service and empowers our branch managers to make decisions about their business best suited to local conditions. |
Market Share Percentage(1) | 30/06/06 | 31/12/05 | 30/06/05 | |||||||||
Home loans(2) | 18.8 | 18.8 | 19.0 | |||||||||
Credit cards(2)(3) | 20.5 | 21.4 | 22.8 | |||||||||
Personal lending (APRA and other households)(4) | 16.1 | 16.0 | 16.7 | |||||||||
Household deposits | 29.3 | 29.6 | 29.8 | |||||||||
Retail deposits | 22.2 | 22.9 | 23.0 | |||||||||
(1) | For market share definitions refer to appendix 25 page 68. | |
(2) | Comparatives have been restated due to a reclassification between home loans and personal loans by another ADI. | |
(3) | As at 31 May 2006. | |
(4) | Personal lending market share includes personal loans and margin loans. |
Full Year to June 2006 | ||||||||||||||||||||||||
Net | Other | Total | Underlying | |||||||||||||||||||||
Interest | Banking | Banking | Expenses | Bad Debts | Profit after | |||||||||||||||||||
Income $M | Income $M | Income $M | $M | $M | Tax $M | |||||||||||||||||||
Home loans | 1,239 | 151 | 1,390 | |||||||||||||||||||||
Consumer finance | 727 | 368 | 1,095 | |||||||||||||||||||||
Retail deposits | 1,953 | 700 | 2,653 | |||||||||||||||||||||
Australian Retail products | 3,919 | 1,219 | 5,138 | 2,240 | 354 | 1,794 | ||||||||||||||||||
Full Year to June 2005 | ||||||||||||||||
Total | Underlying | |||||||||||||||
Banking | Expenses | Bad Debts | Profit after | |||||||||||||
Income $M | $M | $M | Tax $M | |||||||||||||
Home loans | 1,194 | |||||||||||||||
Consumer finance | 985 | |||||||||||||||
Retail deposits | 2,514 | |||||||||||||||
Australian Retail products | 4,693 | 2,168 | 266 | 1,589 | ||||||||||||
Half Year to June 2006 | ||||||||||||||||||||||||
Net | Other | Total | Underlying | |||||||||||||||||||||
Interest | Banking | Banking | Expenses | Bad Debts | Profit after | |||||||||||||||||||
Income $M | Income $M | Income $M | $M | $M | Tax $M | |||||||||||||||||||
Home loans | 615 | 74 | 689 | |||||||||||||||||||||
Consumer finance | 363 | 195 | 558 | |||||||||||||||||||||
Retail deposits | 978 | 351 | 1,329 | |||||||||||||||||||||
Australian Retail products | 1,956 | 620 | 2,576 | 1,108 | 198 | 900 | ||||||||||||||||||
As At | ||||||||||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | Jun 06 vs | Jun 06 vs | ||||||||||||||||
Major Balance Sheet Items (gross of impairment) | $M | $M | $M | Dec 05 % | Jun 05 % | |||||||||||||||
Home loans (incl securitisation) | 144,834 | 135,990 | 129,913 | 7 | 11 | |||||||||||||||
Consumer finance(1) | 10,640 | 10,507 | 10,720 | 1 | (1 | ) | ||||||||||||||
Total Assets – Australian Retail products | 155,474 | 146,497 | 140,633 | 6 | 11 | |||||||||||||||
Home loans (net of securitisation) | 132,227 | 126,866 | 119,094 | 4 | 11 | |||||||||||||||
Transaction deposits | 16,993 | 17,077 | 16,382 | — | 4 | |||||||||||||||
Savings deposits | 38,071 | 36,306 | 34,061 | 5 | 12 | |||||||||||||||
Other demand deposits | 19,818 | 19,977 | 19,197 | (1 | ) | 3 | ||||||||||||||
Deposits not bearing interest | 2,362 | 2,478 | 2,172 | (5 | ) | 9 | ||||||||||||||
Total Liabilities — Australian Retail products | 77,244 | 75,838 | 71,812 | 2 | 8 | |||||||||||||||
(1) | Consumer Finance includes personal loans and credit cards. |
Australian Home Loan Approvals by State(1) (2) | Australian Home Loan Balances by State(2) | |
![]() | ![]() |
• | Institutional Banking customers gave the Bank a strong rating in the latest East & Partners customer satisfaction survey. Of the major banks, CBA retained number one status as principal and secondary transaction bank of the Top 500 corporates and the highest average rating in all key relationship management categories; |
• | Development of dedicated mobile lenders, strong servicing for third party brokers, the introduction of a dedicated acquisition sales force for corporate clients and foreign exchange sales force; |
• | Recent establishment of five distribution teams being Institutional Banking, Corporate Financial Services, Agribusiness, Local Business Banking and Private Client Services which all provide greater focus on each of these segments as the Bank expands its business banking footprint; |
• | The introduction of the Business Online Saver high yield investment account, the Commonwealth Portfolio Loan product and the Business Line of Credit, all of which have reached $1 billion in balances; |
• | CommSec has achieved record trading volumes and substantial margin lending balance growth during the year. On 30 June 2006, CommSec executed 47,406 trades to the value of $683 million in turnover. This set an Australian broking industry record for the highest number of trades and turnover by a broker in a single day; |
• | Successful implementation of the CommSee customer management system across the business providing Bank employees with a common IT platform and access to common client information; and |
• | Further extended specialised client service teams that are now capable of supporting all business clients centrally for most servicing activities. |
Market Share Percentage(1) | 30/06/06 | 31/12/05 | 30/06/05 | |||||||||
Business lending | 13.1 | 13.5 | 13.2 | |||||||||
Asset finance | 14.5 | 15.1 | 15.4 | |||||||||
Equities trading (CommSec) | 4.3 | 4.3 | 3.6 | |||||||||
(1) | For market share definitions refer to Appendix 25, page 68. |
Full Year to June 2006 | ||||||||||||||||||||||||
Net | Other | Total | Underlying | |||||||||||||||||||||
Interest | Banking | Banking | Expenses | Bad Debts | Profit after | |||||||||||||||||||
Income $M | Income $M | Income $M | $M | $M | Tax $M | |||||||||||||||||||
Corporate Banking | 558 | 394 | 952 | |||||||||||||||||||||
Financial Markets | 287 | 642 | 929 | |||||||||||||||||||||
Lending and Finance | 751 | 441 | 1,192 | |||||||||||||||||||||
Premium, Business & Corporate and Institutional products | 1,596 | 1,477 | 3,073 | 1,570 | 68 | 1,038 | ||||||||||||||||||
Full Year to June 2005 | ||||||||||||||||
Total | Underlying | |||||||||||||||
Banking | Expenses | Bad Debts | Profit after | |||||||||||||
Income $M | $M | $M | Tax $M | |||||||||||||
Corporate Banking | 945 | |||||||||||||||
Financial Markets | 814 | |||||||||||||||
Lending and Finance | 1,204 | |||||||||||||||
Premium, Business & Corporate and Institutional products | 2,963 | 1,536 | 39 | 1,009 | ||||||||||||
Half Year to June 2006 | ||||||||||||||||||||||||
Net | Other | Total | Underlying | |||||||||||||||||||||
Interest | Banking | Banking | Expenses | Bad Debts | Profit after | |||||||||||||||||||
Income $M | Income $M | Income $M | $M | $M | Tax $M | |||||||||||||||||||
Corporate Banking | 282 | 184 | 466 | |||||||||||||||||||||
Financial Markets | 144 | 331 | 475 | |||||||||||||||||||||
Lending and Finance | 382 | 249 | 631 | |||||||||||||||||||||
Premium, Business & Corporate and Institutional products | 808 | 764 | 1,572 | 791 | 31 | 537 | ||||||||||||||||||
As At | |||||||||||||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | Jun 06 vs | Jun 06 vs | |||||||||||||||||||
Major Balance Sheet Items (gross of impairment) | $M | $M | $M | Dec 05 % | Jun 05 % | ||||||||||||||||||
Interest earning lending assets | 66,343 | 60,949 | 51,584 | 9 | 29 | ||||||||||||||||||
Bank acceptances of customers | 18,310 | 17,263 | 16,786 | 6 | 9 | ||||||||||||||||||
Non lending interest earning assets | 35,471 | 35,320 | 33,993 | — | 4 | ||||||||||||||||||
Margin loans | 5,758 | 4,664 | 4,311 | 23 | 34 | ||||||||||||||||||
Other assets(1) | 19,947 | 15,711 | 19,773 | 27 | 1 | ||||||||||||||||||
Total Assets — Premium, Business & Corporate and Institutional products(2) | 145,829 | 133,907 | 126,447 | 9 | 15 | ||||||||||||||||||
Transaction deposits | 16,426 | 14,155 | 14,457 | 16 | 14 | ||||||||||||||||||
Other demand deposits | 37,821 | 37,074 | 34,601 | 2 | 9 | ||||||||||||||||||
Deposits not bearing interest | 3,520 | 3,675 | 3,651 | (4 | ) | (4 | ) | ||||||||||||||||
Certificates of deposits and other | 20,178 | 19,243 | 16,367 | 5 | 23 | ||||||||||||||||||
Due to other financial institutions | 11,333 | 9,852 | 7,964 | 15 | 42 | ||||||||||||||||||
Liabilities at fair value through the Income Statement | 2,085 | 2,630 | 1,580 | (21 | ) | 32 | |||||||||||||||||
Debt issues | 77,848 | 69,854 | 65,463 | 11 | 19 | ||||||||||||||||||
Loan Capital | 9,744 | 9,129 | 8,356 | 7 | 17 | ||||||||||||||||||
Other non interest bearing liabilities | 36,703 | 31,628 | 32,927 | 16 | 11 | ||||||||||||||||||
Total Liabilities — Premium, Business & Corporate and Institutional products(2) | 215,658 | 197,240 | 185,366 | 9 | 16 | ||||||||||||||||||
Balance Sheet by Product Segment | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Corporate Banking | 3,546 | 2,982 | 3,299 | 19 | 7 | ||||||||||||||||||
Financial Markets | 36,228 | 29,680 | 34,104 | 22 | 6 | ||||||||||||||||||
Lending and Finance | 101,601 | 94,671 | 85,935 | 7 | 18 | ||||||||||||||||||
Other(2) | 4,454 | 6,574 | 3,109 | (32 | ) | 43 | |||||||||||||||||
Total Assets — Premium, Business & Corporate and Institutional | 145,829 | 133,907 | 126,447 | 9 | 15 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Corporate Banking | 20,799 | 18,592 | 18,659 | 12 | 11 | ||||||||||||||||||
Financial Markets | 71,594 | 70,098 | 67,398 | 2 | 6 | ||||||||||||||||||
Lending and Finance | 27,303 | 25,145 | 21,658 | 9 | 26 | ||||||||||||||||||
Other(2) | 95,962 | 83,405 | 77,651 | 15 | 24 | ||||||||||||||||||
Total Liabilities — Premium, Business & Corporate and Institutional | 215,658 | 197,240 | 185,366 | 9 | 16 | ||||||||||||||||||
(1) | Other assets include intangible assets and derivative assets. | |
(2) | Includes Group Funding, Balance Sheet Management and other capital not directly attributed to the product based segments above. |
• | Continued growth in home lending volumes above market growth rates. This is the 15th year of market share growth in this segment; |
• | Strong growth in commercial/business and rural lending; |
• | Success of the Fastsaver deposit product introduced in November 2004 with balances growing by more than 75% by the end of the year; |
• | Net interest margin pressure over the year in a very competitive environment. Most of this pressure was evidenced in the first half with net interest margin flat in the second half; |
• | Continued productivity improvements with expense to income ratio of 43.1% for the year; and |
• | Sound credit quality. |
• | For the fourth consecutive year, ASB Bank was recognised as New Zealand’s “Bank of the Year” by the UK based Banker Magazine; and |
• | ASB Bank continued its leading position in Personal and Business Banking customer satisfaction among the major banks. |
• | Purchase of the remaining 49% of the Colonial National Bank in Fiji from the Fiji Government in January 2006. Fiji loans and advances increased by 34% during 2006 to $484 million although liquidity and interest rate volatility issues in the Fiji economy resulted in a more subdued performance in the second half of the year; |
• | Acquisition of a 19.9% interest in Hangzhou City Commercial Bank (HZB) for $102 million. HZB is one of the top five City Commercial Banks by assets in mainland China. When combined with our investment in Jinan City Commercial Bank, the Bank now holds interests in two of the top 10 City Commercial Banks in China; |
• | Finalisation of the first stage of the Capability Transfer Program with Jinan CCB; |
• | Development of a mortgage broking business in Shanghai; and |
• | Continuation of the branch expansion program in PT Bank Commonwealth in Indonesia with six new branches added during the year. |
Market Share Percentage(2) | 30/06/06 | 31/12/05 | 30/06/05 | |||||||||
NZ lending for housing | 23.1 | 23.2 | 23.0 | |||||||||
NZ retail deposits | 20.3 | 19.9 | 19.5 | |||||||||
(1) | Represents Group Management view for the product segment rather than statutory view. | |
(2) | For market share definitions refer to Appendix 25, page 68. |
Full Year to June 2006 | ||||||||||||||||||||||||
Net | Other | Total | Underlying | |||||||||||||||||||||
Interest | Banking | Banking | Expenses | Bad Debts | Profit after | |||||||||||||||||||
Income $M | Income $M | Income $M | $M | $M | Tax $M | |||||||||||||||||||
ASB Bank | 680 | 291 | 971 | |||||||||||||||||||||
Other | 43 | 52 | 95 | |||||||||||||||||||||
Asia Pacific | 723 | 343 | 1,066 | 521 | 20 | 364 | ||||||||||||||||||
Full Year to June 2005 | ||||||||||||||||
Total | Underlying | |||||||||||||||
Banking | Expenses | Bad Debts | Profit after | |||||||||||||
Income $M | $M | $M | Tax $M | |||||||||||||
ASB Bank | 878 | |||||||||||||||
Other | 39 | |||||||||||||||
Asia Pacific | 917 | 490 | 18 | 291 | ||||||||||||
Half Year to June 2006 | ||||||||||||||||||||||||
Net | Other | Total | Underlying | |||||||||||||||||||||
Interest | Banking | Banking | Expenses | Bad Debts | Profit after | |||||||||||||||||||
Income $M | Income $M | Income $M | $M | $M | Tax $M | |||||||||||||||||||
ASB Bank | 338 | 138 | 476 | |||||||||||||||||||||
Other | 23 | 38 | 61 | |||||||||||||||||||||
Asia Pacific | 361 | 176 | 537 | 261 | 8 | 182 | ||||||||||||||||||
As at | ||||||||||||||||||||
Major Balance Items (gross of impairment) | 30/06/06 | 31/12/05 | 30/06/05 | Jun 06 vs | Jun 06 vs | |||||||||||||||
(1) | $M | $M | $M | Dec 05 % | Jun 05 % | |||||||||||||||
Home lending | 22,287 | 23,349 | 20,765 | (5 | ) | 7 | ||||||||||||||
Other lending assets | 10,531 | 11,157 | 12,132 | (6 | ) | (13 | ) | |||||||||||||
Non lending interest earning assets | 4,812 | 5,523 | 3,664 | (13 | ) | 31 | ||||||||||||||
Other assets | 1,321 | 1,044 | 979 | 27 | 35 | |||||||||||||||
Total Assets – Asia Pacific | 38,951 | 41,073 | 37,540 | (5 | ) | 4 | ||||||||||||||
Debt issues | 744 | 182 | 6,939 | large | (89 | ) | ||||||||||||||
Deposits(2) | 18,040 | 19,256 | 23,006 | (6 | ) | (22 | ) | |||||||||||||
Liabilities at fair value through the Income Statement | 11,727 | 13,691 | — | (14 | ) | — | ||||||||||||||
Other liabilities | 772 | 848 | 426 | (9 | ) | 81 | ||||||||||||||
Total Liabilities – Asia Pacific | 31,283 | 33,977 | 30,371 | (8 | ) | 3 | ||||||||||||||
Balance Sheet by Segment | ||||||||||||||||||||
Assets | ||||||||||||||||||||
ASB Bank | 36,724 | 38,981 | 35,593 | (6 | ) | 3 | ||||||||||||||
Other | 2,227 | 2,092 | 1,947 | 6 | 14 | |||||||||||||||
Total Assets – Asia Pacific | 38,951 | 41,073 | 37,540 | (5 | ) | 4 | ||||||||||||||
Liabilities | ||||||||||||||||||||
ASB Bank | 29,306 | 31,933 | 29,658 | (8 | ) | (1 | ) | |||||||||||||
Other | 1,977 | 2,044 | 713 | (3 | ) | large | ||||||||||||||
Total Liabilities – Asia Pacific | 31,283 | 33,977 | 30,371 | (8 | ) | 3 | ||||||||||||||
(1) | 30 June 2006 balance sheet impacted by deterioration of the NZD (11% over the full year). Refer to page 54 for ASB Bank NZD balance sheet and page 66 for foreign exchange rates. | |
(2) | Asia Pacific Deposits exclude deposits held in other overseas countries (30 June 2006: A$4 billion and 31 December 2005: A$4 billion and 30 June 2005: A$4 billion). |
• | Continued platform enhancements and new product offerings including the development of a self managed super offering “YourChoice”, to capitalise on this rapidly growing sector of the market; |
• | Strategic alliance formed between Avanteos and Goldman Sachs JB Were, which has contributed $5.0 billion of additional net funds flow; |
• | A funds management joint venture has been established to operate within China, with approval being received from the China Securities Regulatory Commission; |
• | Further improvement in Bank planner performance, with a 16% increase in productivity for the year; |
• | Acquisition of the Gandel Group’s interests in the Colonial First State Property Retail Trust Limited and Gandel Retail Management Trust Ltd, which provides funds management and property management services to a number of Colonial First State Retail Property trusts; |
• | The continued rationalisation of legacy systems and products; and |
• | Strengthening of the control and operating environment, particularly around unit pricing of investment style products within the life insurance entities. |
• | The acquisition of Gandel’s Joint Venture interest which increased expenses $28 million in the current year; and |
• | Expenses in relation to the Unit Pricing control and process improvement program, totalling $55 million. This is expected to incur additional expenses of $20-30 million in the next 12 months. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Key Performance Indicators | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Operating income – external | 1,543 | 1,247 | 24 | 828 | 715 | 16 | ||||||||||||||||||
Operating income – internal | 9 | 10 | (10 | ) | 4 | 5 | (20 | ) | ||||||||||||||||
Total operating income | 1,552 | 1,257 | 23 | 832 | 720 | 16 | ||||||||||||||||||
Shareholder investment returns | 14 | 33 | (58 | ) | 7 | 7 | — | |||||||||||||||||
Funds management income | 1,566 | 1,290 | 21 | 839 | 727 | 15 | ||||||||||||||||||
Volume expense | 224 | 156 | (44 | ) | 125 | 99 | (26 | ) | ||||||||||||||||
Operating expenses | 765 | 642 | (19 | ) | 405 | 360 | (13 | ) | ||||||||||||||||
Which new Bank | — | 36 | — | — | — | — | ||||||||||||||||||
Total operating expenses | 989 | 834 | (19 | ) | 530 | 459 | (15 | ) | ||||||||||||||||
Net profit before income tax (“cash basis”) | 577 | 456 | 27 | 309 | 268 | 15 | ||||||||||||||||||
Net profit before income tax (“underlying basis”)(1) | 563 | 459 | 23 | 302 | 261 | 16 | ||||||||||||||||||
Corporate tax expense(2) | 164 | 100 | (64 | ) | 87 | 77 | (13 | ) | ||||||||||||||||
Minority interests | 3 | 7 | (57 | ) | — | 3 | — | |||||||||||||||||
Net profit after income tax (“cash basis”) | 410 | 349 | 17 | 222 | 188 | 18 | ||||||||||||||||||
Net profit after income tax (“underlying basis”)(1) | 400 | 351 | 14 | 217 | 183 | 19 | ||||||||||||||||||
(1) | Underlying basis excludes shareholder investment returns and Which new Bank expenses. | |
(2) | For purpose of presentation, Policyholder tax benefit and Policyholder tax expense are shown on a net basis (2006: $193 million). |
Funds under Administration | ||||||||||||||||||||||||
Funds under administration – average | 139,082 | 116,262 | 20 | 147,684 | 130,179 | 13 | ||||||||||||||||||
Funds under administration – spot | 151,513 | 123,064 | 23 | 151,513 | 136,974 | 11 | ||||||||||||||||||
Net flows | 10,830 | 456 | large | 8,135 | 2,695 | large | ||||||||||||||||||
Total retail net flows | 8,235 | 2,190 | large | 6,870 | 1,365 | large | ||||||||||||||||||
Productivity and Other Measures | ||||||||||||||||||||||||
Operating income to average funds under administration (%) | 1.12 | 1.08 | 4bpts | 1.14 | 1.10 | 4bpts | ||||||||||||||||||
Operating expenses to average funds under administration (%) | 0.71 | 0.72 | 1 | 0.72 | 0.70 | (3 | ) | |||||||||||||||||
Effective corporate tax rate (%) | 28.4 | 21.9 | large | 28.2 | 28.7 | (50)bpts | ||||||||||||||||||
![(BAR CHART)](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419116.gif)
• | Continuation of market leading flows into FirstChoice capturing in excess of 25%(1) of the market net flows. FirstChoice has now exceeded $25 billion in funds under administration in less than four years; |
• | Significant inflows associated with the Goldman Sachs JB Were strategic alliance of $5.0 billion; |
• | Reduced net outflows on Australian equity funds due partly to improved investment performance; |
• | A tumaround in net flows into wholesale products, which achieved positive net flows of $1.3 billion for the year; |
• | Good flows into higher margin equity products and mandates in the International business; |
• | Net outflows from the cash management product due to competition from attractively priced retail deposit products; |
• | Property net outflows following the planned sell-down of assets within a closed end fund; and |
• | Net outflows in other retail products which include closed legacy products, which is consistent with prior periods. |
Market Share Percentage(2)(3) | 30/06/06 | 31/12/05 | 30/06/05 | |||||||||
Australian retail — administrator view | 15.7 | 14.6 | 14.5 | |||||||||
New Zealand retail | 15.0 | 15.0 | 15.2 | |||||||||
Platforms (Masterfunds) | 12.5 | 10.8 | 10.2 | |||||||||
(1) | Nine months to March 2006 (source: Plan for Life). | |
(2) | For market share definitions refer to appendix 25 page 68. | |
(3) | As at 31 March 2006. |
2006 FirstChoice — Fund Manager Destination | 2006 FirstChoice — Sources of Funds | |
![]() | ![]() |
Full Year Ended 30 June 2006 | ||||||||||||||||||||||||
Opening | FX(3) & | Closing | ||||||||||||||||||||||
Balance | Investment | Other | Balance | |||||||||||||||||||||
30/06/05 | Inflows | Outflows | Income | Movements | 30/06/06 | |||||||||||||||||||
Funds under Administration | $M | $M | $M | $M | $M | $M | ||||||||||||||||||
FirstChoice & Avanteos | 19,069 | 19,219 | (5,886 | ) | 3,190 | (217 | ) | 35,375 | ||||||||||||||||
Cash management | 4,182 | 2,417 | (3,061 | ) | 152 | — | 3,690 | |||||||||||||||||
Other retail(1) | 36,069 | 3,450 | (7,904 | ) | 4,353 | (413 | ) | 35,555 | ||||||||||||||||
Australian retail | 59,320 | 25,086 | (16,851 | ) | 7,695 | (630 | ) | 74,620 | ||||||||||||||||
Wholesale | 24,894 | 13,099 | (11,810 | ) | 3,682 | (50 | ) | 29,815 | ||||||||||||||||
Property | 13,456 | 1,074 | (2,144 | ) | 1,520 | 3 | 13,909 | |||||||||||||||||
Other(2) | 2,886 | 192 | (481 | ) | 454 | 657 | 3,708 | |||||||||||||||||
Domestically sourced | 100,556 | 39,451 | (31,286 | ) | 13,351 | (20 | ) | 122,052 | ||||||||||||||||
Internationally sourced | 22,508 | 12,097 | (9,432 | ) | 3,835 | 453 | 29,461 | |||||||||||||||||
Total – Funds under Administration | 123,064 | 51,548 | (40,718 | ) | 17,186 | 433 | 151,513 | |||||||||||||||||
Full Year Ended 30 June 2005 | ||||||||||||||||||||||||
Opening | FX(3) & | Closing | ||||||||||||||||||||||
Balance | Investment | Other | Balance | |||||||||||||||||||||
30/06/04 | Inflows | Outflows | Income | Movements | 30/06/05 | |||||||||||||||||||
Funds under Administration | $M | $M | $M | $M | $M | $M | ||||||||||||||||||
FirstChoice & Avanteos(4) | 12,075 | 10,377 | (4,265 | ) | 1,153 | (271 | ) | 19,069 | ||||||||||||||||
Cash management | 4,414 | 2,961 | (3,425 | ) | 232 | — | 4,182 | |||||||||||||||||
Other retail(4) | 34,705 | 4,417 | (7,875 | ) | 3,951 | 871 | 36,069 | |||||||||||||||||
Australian retail | 51,194 | 17,755 | (15,565 | ) | 5,336 | 600 | 59,320 | |||||||||||||||||
Wholesale(4) | 23,955 | 10,841 | (13,350 | ) | 3,177 | 271 | 24,894 | |||||||||||||||||
Property(4) | 12,624 | 1,207 | (1,172 | ) | 1,668 | (871 | ) | 13,456 | ||||||||||||||||
Other | 3,033 | 248 | (786 | ) | 391 | — | 2,886 | |||||||||||||||||
Domestically sourced | 90,806 | 30,051 | (30,873 | ) | 10,572 | — | 100,556 | |||||||||||||||||
Internationally sourced | 19,077 | 9,209 | (7,931 | ) | 2,453 | (300 | ) | 22,508 | ||||||||||||||||
Total – Funds under Administration | 109,883 | 39,260 | (38,804 | ) | 13,025 | (300 | ) | 123,064 | ||||||||||||||||
Half Year Ended 30 June 2006 | ||||||||||||||||||||||||
Opening | FX(3) & | Closing | ||||||||||||||||||||||
Balance | Investment | Other | Balance | |||||||||||||||||||||
31/12/05 | Inflows | Outflows | Income | Movements | 30/06/06 | |||||||||||||||||||
Funds under Administration | $M | $M | $M | $M | $M | $M | ||||||||||||||||||
FirstChoice & Avanteos(4) | 24,770 | 12,655 | (3,258 | ) | 1,425 | (217 | ) | 35,375 | ||||||||||||||||
Cash management | 3,966 | 1,159 | (1,548 | ) | 113 | — | 3,690 | |||||||||||||||||
Other retail(4) | 36,647 | 1,799 | (3,937 | ) | 1,459 | (413 | ) | 35,555 | ||||||||||||||||
Australian retail | 65,383 | 15,613 | (8,743 | ) | 2,997 | (630 | ) | 74,620 | ||||||||||||||||
Wholesale(4) | 28,012 | 6,001 | (5,901 | ) | 1,753 | (50 | ) | 29,815 | ||||||||||||||||
Property(4) | 13,750 | 304 | (1,008 | ) | 859 | 4 | 13,909 | |||||||||||||||||
Other | 3,349 | 95 | (308 | ) | (85 | ) | 657 | 3,708 | ||||||||||||||||
Domestically sourced | 110,494 | 22,013 | (15,960 | ) | 5,524 | (19 | ) | 122,052 | ||||||||||||||||
Internationally sourced | 26,480 | 6,633 | (4,551 | ) | 805 | 94 | 29,461 | |||||||||||||||||
Total — Funds under Administration | 136,974 | 28,646 | (20,511 | ) | 6,329 | 75 | 151,513 | |||||||||||||||||
(1) | Includes stand alone retail and legacy retail products. | |
(2) | Includes life company assets sourced from retail investors but not attributable to a funds management product (e.g. premiums from risk products). These amounts do not appear in retail market share data. | |
(3) | Includes foreign exchange gains and losses from translation of internationally sourced business. | |
(4) | Other movements represent the re-alignment of funds to correctly classify source of funds. |
• | Solid inforce premium and operating margin growth in Australia and New Zealand; |
• | Positive experience variations; and |
• | Good expense control. |
• | Maintaining number one market share position for Australian risk premiums with 13.5% of the life insurance risk market; |
• | Launch of a Guaranteed Index Tracked Annuity Product and a Travel Insurance product; and |
• | Productivity improvements through continued simplification and rationalisation of systems and processes. |
• | Life and General Insurance premium growth, with inforce premiums increasing by 8% for the year; |
• | Sales volume growth, particularly within General Insurance (up 13%) and Group Risk products (up 8%); and |
• | Positive claims experience in both Life and General Insurance products, despite the impact of claims associated with Cyclone Larry in the second half of the year. |
• | Strong growth in new business sales of risk products resulting in market share growth and improved margins; |
• | Positive persistency experience; and |
• | Good investment returns. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Key Performance Indicators | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Insurance | ||||||||||||||||||||||||
Life insurance operating income | 669 | 693 | (3 | ) | 322 | 347 | (7 | ) | ||||||||||||||||
General insurance operating income | 73 | 54 | 35 | 34 | 39 | (13 | ) | |||||||||||||||||
Total operating income | 742 | 747 | (1 | ) | 356 | 386 | (8 | ) | ||||||||||||||||
Shareholder investment returns | 87 | 204 | (57 | ) | 30 | 57 | (47 | ) | ||||||||||||||||
Profit on sale of the Hong Kong Insurance business | 145 | — | — | — | 145 | — | ||||||||||||||||||
Total insurance income | 974 | 951 | 2 | 386 | 588 | (34 | ) | |||||||||||||||||
Volume expense | 181 | 218 | 17 | 86 | 95 | 9 | ||||||||||||||||||
Other operating expenses(1) | 275 | 333 | 17 | 117 | 158 | 26 | ||||||||||||||||||
Which new Bank | — | 2 | — | — | — | — | ||||||||||||||||||
Total operating expenses | 456 | 553 | 18 | 203 | 253 | 20 | ||||||||||||||||||
Net profit before income tax | 518 | 398 | 30 | 183 | 335 | (45 | ) | |||||||||||||||||
Corporate tax expense(2) | 102 | 89 | (15 | ) | 51 | 51 | — | |||||||||||||||||
Net profit after income tax (“cash basis”) | 416 | 309 | 35 | 132 | 284 | (54 | ) | |||||||||||||||||
Net profit after income tax (“underlying basis”)(3) | 215 | 156 | 38 | 112 | 103 | 9 | ||||||||||||||||||
Productivity and Other Measures | ||||||||||||||||||||||||
Expenses to average inforce premiums (%) | 36.7 | 45.5 | 19 | % | 33.6 | 40.5 | 17 | % | ||||||||||||||||
Expenses to average inforce premiums (underlying %)(3) | 36.7 | 45.3 | 19 | % | 33.6 | 40.5 | 17 | % | ||||||||||||||||
Effective corporate tax rate excluding impact of profit on sale of Hong Kong business (%) | 27.3 | 22.4 | large | 27.9 | 26.8 | large | ||||||||||||||||||
(1) | Operating expenses include $9 million internal expenses relating to the asset management of shareholder funds (June 2005: $10 million). | |
(2) | For purpose of presentation, Policyholder tax benefit and Policyholder tax expense are shown on a net basis (2006: $138 million). | |
(3) | Underlying basis excludes shareholder investment returns, the profit on the sale of the Hong Kong Insurance business and Which new Bank expenses. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Sources of Profit from Insurance Activities | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
The Margin on Services profit from ordinary activities after income tax is represented by: | ||||||||||||||||||||||||
Planned profit margins | 146 | 122 | 20 | 77 | 69 | 12 | ||||||||||||||||||
Experience variations | 48 | 27 | 78 | 29 | 19 | 53 | ||||||||||||||||||
Other | — | (8 | ) | — | (2 | ) | 2 | large | ||||||||||||||||
General insurance operating margins | 21 | 13 | 62 | 8 | 13 | (38 | ) | |||||||||||||||||
Operating margins | 215 | 154 | 40 | 112 | 103 | 9 | ||||||||||||||||||
After tax shareholder investment returns | 56 | 155 | (64 | ) | 20 | 36 | (44 | ) | ||||||||||||||||
Profit on sale of the Hong Kong business | 145 | — | — | — | 145 | — | ||||||||||||||||||
Net profit after income tax (“cash basis”) | 416 | 309 | 35 | 132 | 284 | (54 | ) | |||||||||||||||||
Full Year Ended | ||||||||||||||||||||||||||||||||
Australia | New Zealand | Asia | Total | |||||||||||||||||||||||||||||
Net Profit after Income Tax | 30/06/06 | 30/06/05 | 30/06/06 | 30/06/05 | 30/06/06 | 30/06/05 | 30/06/06 | 30/06/05 | ||||||||||||||||||||||||
(“cash basis”) | $M | $M | $M | $M | $M | $M | $M | $M | ||||||||||||||||||||||||
Operating margins | 125 | 94 | 77 | 52 | 13 | 8 | 215 | 154 | ||||||||||||||||||||||||
After tax shareholder investment returns | 56 | 92 | 17 | 22 | (17 | ) | 41 | 56 | 155 | |||||||||||||||||||||||
Profit on sale of Hong Kong business | — | — | — | — | 145 | — | 145 | — | ||||||||||||||||||||||||
Net profit after income tax | 181 | 186 | 94 | 74 | 141 | 49 | 416 | 309 | ||||||||||||||||||||||||
Half Year Ended | ||||||||||||||||||||||||||||||||
Australia | New Zealand | Asia | Total | |||||||||||||||||||||||||||||
Net Profit after Income Tax | 30/06/06 | 31/12/05 | 30/06/06 | 31/12/05 | 30/06/06 | 31/12/05 | 30/06/06 | 31/12/05 | ||||||||||||||||||||||||
(“cash basis”) | $M | $M | $M | $M | $M | $M | $M | $M | ||||||||||||||||||||||||
Operating margins | 70 | 55 | 39 | 38 | 3 | 10 | 112 | 103 | ||||||||||||||||||||||||
After tax shareholder investment returns | 21 | 35 | 7 | 10 | (8 | ) | (9 | ) | 20 | 36 | ||||||||||||||||||||||
Profit on sale of Hong Kong business | — | — | — | — | — | 145 | — | 145 | ||||||||||||||||||||||||
Net profit after income tax | 91 | 90 | 46 | 48 | (5 | ) | 146 | 132 | 284 | |||||||||||||||||||||||
Full Year Ended 30 June 2006 | ||||||||||||||||||||
Opening | Closing | |||||||||||||||||||
Balance | Sales/New | Other | Balance | |||||||||||||||||
30/06/05 | Balances | Lapses | Movements(2) | 30/06/06 | ||||||||||||||||
Annual Inforce Premiums(1) | $M | $M | $M | $M | $M | |||||||||||||||
General insurance(3) | 215 | 70 | (49 | ) | — | 236 | ||||||||||||||
Personal life | 785 | 137 | (81 | ) | (109 | ) | 732 | |||||||||||||
Group life | 265 | 71 | (48 | ) | (33 | ) | 255 | |||||||||||||
Total | 1,265 | 278 | (178 | ) | (142 | ) | 1,223 | |||||||||||||
Australia | 856 | 231 | (166 | ) | — | 921 | ||||||||||||||
New Zealand | 296 | 47 | (12 | ) | (29 | ) | 302 | |||||||||||||
Asia(4) | 113 | — | — | (113 | ) | — | ||||||||||||||
Total | 1,265 | 278 | (178 | ) | (142 | ) | 1,223 | |||||||||||||
Full Year Ended 30 June 2005 | ||||||||||||||||||||
Opening | Closing | |||||||||||||||||||
Balance | Sales/New | Other | Balance | |||||||||||||||||
30/06/04 | Balances | Lapses | Movements(2) | 30/06/05 | ||||||||||||||||
Annual Inforce Premiums(1) | $M | $M | $M | $M | $M | |||||||||||||||
General insurance(3) | 192 | 62 | (39 | ) | — | 215 | ||||||||||||||
Personal life | 703 | 164 | (89 | ) | 7 | 785 | ||||||||||||||
Group life | 272 | 74 | (87 | ) | 6 | 265 | ||||||||||||||
Total | 1,167 | 300 | (215 | ) | 13 | 1,265 | ||||||||||||||
Australia | 815 | 228 | (187 | ) | — | 856 | ||||||||||||||
New Zealand | 258 | 48 | (15 | ) | 5 | 296 | ||||||||||||||
Asia(4) | 94 | 24 | (13 | ) | 8 | 113 | ||||||||||||||
Total | 1,167 | 300 | (215 | ) | 13 | 1,265 | ||||||||||||||
Half Year Ended June 2006 | ||||||||||||||||||||
Opening | Closing | |||||||||||||||||||
Balance | Sales/New | Other | Balance | |||||||||||||||||
31/12/05 | Balances | Lapses | Movements(2) | 30/06/06 | ||||||||||||||||
Annual Inforce Premiums(1) | $M | $M | $M | $M | $M | |||||||||||||||
General insurance | 225 | 35 | (24 | ) | — | 236 | ||||||||||||||
Personal life | 740 | 65 | (39 | ) | (34 | ) | 732 | |||||||||||||
Group life | 251 | 31 | (24 | ) | (3 | ) | 255 | |||||||||||||
Total | 1,216 | 131 | (87 | ) | (37 | ) | 1,223 | |||||||||||||
Australia | 895 | 110 | (83 | ) | (1 | ) | 921 | |||||||||||||
New Zealand | 321 | 21 | (4 | ) | (36 | ) | 302 | |||||||||||||
Asia | — | — | — | — | — | |||||||||||||||
Total | 1,216 | 131 | (87 | ) | (37 | ) | 1,223 | |||||||||||||
(1) | Inforce premium relates to risk business. Savings products are disclosed within Funds Management. | |
(2) | Includes foreign exchange movements. | |
(3) | General insurance inforce premiums includes approximately $46 million of badged premium (June 2005: $40 million). | |
(4) | Other movements represent the sale of the Hong Kong Insurance business. |
Market Share Percentage Annual Inforce Premiums(1) | 30/06/06 | 31/12/05 | 30/06/05 | |||||||||
Australia (total risk)(2) | 13.5 | 13.5 | 13.8 | |||||||||
Australia (individual risk)(2) | 12.4 | 12.6 | 13.0 | |||||||||
New Zealand(2) | 31.1 | 30.9 | 30.7 | |||||||||
(1) | For market share definitions refer to appendix 25 page 68. | |
(2) | As at 31 March 2006. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Shareholder Investment Returns | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Funds management business | 14 | 33 | (58 | ) | 7 | 7 | — | |||||||||||||||||
Insurance business(1) | 87 | 204 | (57 | ) | 30 | 57 | (47 | ) | ||||||||||||||||
Profit on sale of Hong Kong business | 145 | — | — | — | 145 | — | ||||||||||||||||||
Shareholder investment returns before tax | 246 | 237 | 4 | 37 | 209 | (82 | ) | |||||||||||||||||
Taxation | 35 | 60 | 42 | 12 | 23 | 48 | ||||||||||||||||||
Shareholder investment returns after tax | 211 | 177 | 19 | 25 | 186 | (87 | ) | |||||||||||||||||
(1) | Excluding profit on sale of the Hong Kong Insurance business. |
As at 30 June 2006 | ||||||||||||||||
Australia | New Zealand | Asia | Total | |||||||||||||
Shareholder Investment Asset Mix ($M) | $M | $M | $M | $M | ||||||||||||
Local equities | 41 | 1 | — | 42 | ||||||||||||
International equities | — | 25 | — | 25 | ||||||||||||
Property | 307 | 8 | — | 315 | ||||||||||||
Sub-total | 348 | 34 | — | 382 | ||||||||||||
Fixed interest | 342 | 191 | 23 | 556 | ||||||||||||
Cash | 823 | 132 | 9 | 964 | ||||||||||||
Sub-total | 1,165 | 323 | 32 | 1,520 | ||||||||||||
Total | 1,513 | 357 | 32 | 1,902 | ||||||||||||
As at 30 June 2006 | ||||||||||||||||
Australia | New Zealand | Asia | Total | |||||||||||||
Shareholder Investment Asset Mix (%) | % | % | % | % | ||||||||||||
Local equities | 3 | — | — | 2 | ||||||||||||
International equities | — | 7 | — | 1 | ||||||||||||
Property | 20 | 2 | — | 17 | ||||||||||||
Sub-total | 23 | 9 | — | 20 | ||||||||||||
Fixed interest | 23 | 54 | 72 | 29 | ||||||||||||
Cash | 54 | 37 | 28 | 51 | ||||||||||||
Sub-total | 77 | 91 | 100 | 80 | ||||||||||||
Total | 100 | 100 | 100 | 100 | ||||||||||||
For the year ended 30 June 2006
Full Year Ended | Half Year Ended | |||||||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||||||
Appendix | $M | $M | $M | $M | ||||||||||||||||
Interest income | 19,758 | 16,781 | 10,120 | 9,638 | ||||||||||||||||
Interest expense(1) | 13,244 | 10,755 | 6,861 | 6,383 | ||||||||||||||||
Net interest income | 1 | 6,514 | 6,026 | 3,259 | 3,255 | |||||||||||||||
Other operating income(1) | 5 | 3,036 | 2,845 | 1,591 | 1,445 | |||||||||||||||
Net banking operating income | 9,550 | 8,871 | 4,850 | 4,700 | ||||||||||||||||
Funds management income | 1,589 | 1,247 | 852 | 737 | ||||||||||||||||
Investment revenue | 2,098 | 1,956 | 719 | 1,379 | ||||||||||||||||
Claims and policyholder liability expense | (2,064 | ) | (1,871 | ) | (721 | ) | (1,343 | ) | ||||||||||||
Net funds management operating income | 1,623 | 1,332 | 850 | 773 | ||||||||||||||||
Premiums from insurance contracts | 1,052 | 1,132 | 479 | 573 | ||||||||||||||||
Investment revenue | 1,031 | 1,186 | 338 | 693 | ||||||||||||||||
Claims and policyholder liability expense from insurance contracts | (970 | ) | (1,243 | ) | (384 | ) | (586 | ) | ||||||||||||
Insurance margin on services operating income | 1,113 | 1,075 | 433 | 680 | ||||||||||||||||
Total net operating income | 12,286 | 11,278 | 6,133 | 6,153 | ||||||||||||||||
Bad debts expense | 398 | 322 | 210 | 188 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Comparable business | 6 | 5,994 | 5,719 | 3,027 | 2,967 | |||||||||||||||
Which new Bank | 6 | — | 150 | — | — | |||||||||||||||
Total operating expenses | 6 | 5,994 | 5,869 | 3,027 | 2,967 | |||||||||||||||
Defined benefit superannuation plan expense | (35 | ) | (75 | ) | (8 | ) | (27 | ) | ||||||||||||
Profit before income tax | 5,859 | 5,012 | 2,888 | 2,971 | ||||||||||||||||
Corporate tax expense | 7 | 1,569 | 1,374 | 816 | 753 | |||||||||||||||
Policyholder tax expense | 7 | 331 | 228 | 130 | 201 | |||||||||||||||
Profit after income tax | 3,959 | 3,410 | 1,942 | 2,017 | ||||||||||||||||
Minority interests | (31 | ) | (10 | ) | (13 | ) | (18 | ) | ||||||||||||
Net profit attributable to members of the Bank | 3,928 | 3,400 | 1,929 | 1,999 | ||||||||||||||||
(1) | Due to a change in the accounting policy regarding classification of interest expense on certain non traded derivatives, a prior period re-classification of $29 million between interest expense and other operating income has occurred for the half year ended 31 December 2005. |
Cents per share | ||||||||||||||||
Earnings per share: | ||||||||||||||||
Cash Basic (excluding profit on the sale of the Hong Kong Insurance Business) | 304.6 | 264.8 | 154.9 | 149.5 | ||||||||||||
Statutory Basic | 308.2 | 259.6 | 151.1 | 157.1 | ||||||||||||
Dividends per share attributable to shareholders of the Bank: | ||||||||||||||||
Ordinary shares | 224 | 197 | 130 | 94 | ||||||||||||
PERLS(1) | — | 1,115 | — | — | ||||||||||||
Trust preferred securities (TPS) – issued 6 August 2003(1) | — | 7,795 | — | — | ||||||||||||
PERLS II – issued 6 January 2004(1) | — | 908 | — | — | ||||||||||||
(1) | Instruments reclassified to loan capital on adoption of AIFRS from 1 July 2005. |
$M | $M | $M | $M | |||||||||||||
Net profit after income tax comprises: | ||||||||||||||||
Net Profit after income tax (“underlying basis”) | 3,842 | 3,420 | 1,967 | 1,875 | ||||||||||||
Shareholder investment returns (after tax) | 66 | 177 | 25 | 41 | ||||||||||||
Which new Bank (after tax) | — | (105 | ) | — | — | |||||||||||
Profit on sale of the Hong Kong Insurance business | 145 | — | — | 145 | ||||||||||||
Net profit after income tax (“cash basis”) | 4,053 | 3,492 | 1,992 | 2,061 | ||||||||||||
Defined benefit superannuation plan expense | (25 | ) | (53 | ) | (6 | ) | (19 | ) | ||||||||
Treasury share valuation adjustment | (100 | ) | (39 | ) | (57 | ) | (43 | ) | ||||||||
Net profit after income tax (“statutory basis”) | 3,928 | 3,400 | 1,929 | 1,999 | ||||||||||||
As at 30 June 2006
As At | ||||||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||||||
Appendix | $M | $M | $M | |||||||||||||
Assets | ||||||||||||||||
Cash and liquid assets | 5,131 | 7,269 | 6,055 | |||||||||||||
Receivables due from other financial institutions | 7,107 | 5,279 | 6,087 | |||||||||||||
Assets at fair value through Income Statement: | ||||||||||||||||
Trading | 15,758 | 15,617 | 14,631 | |||||||||||||
Insurance | 24,437 | 25,141 | 27,484 | |||||||||||||
Other | 2,944 | 3,590 | — | |||||||||||||
Derivative assets | 9,675 | 8,238 | — | |||||||||||||
Available for sale investments | 11,203 | 9,605 | — | |||||||||||||
Investment securities | — | — | 10,838 | |||||||||||||
Loans, advances and other receivables | 8 | 259,176 | 245,606 | 228,346 | ||||||||||||
Bank acceptances of customers | 18,310 | 17,263 | 16,786 | |||||||||||||
Investment property | 258 | 252 | 252 | |||||||||||||
Property, plant and equipment | 1,314 | 1,143 | 1,132 | |||||||||||||
Investment in associates | 190 | 191 | 52 | |||||||||||||
Intangible assets | 16 | 7,809 | 7,740 | 7,656 | ||||||||||||
Deferred tax assets | 650 | 891 | 651 | |||||||||||||
Other assets | 5,141 | 3,368 | 17,434 | |||||||||||||
Total assets | 369,103 | 351,193 | 337,404 | |||||||||||||
Liabilities | ||||||||||||||||
Deposits and other public borrowings | 10 | 173,227 | 168,723 | 168,026 | ||||||||||||
Payables due to other financial institutions | 11,184 | 9,902 | 8,023 | |||||||||||||
Liabilities at fair value through Income Statement | 13,811 | 16,322 | — | |||||||||||||
Derivative liabilities | 10,820 | 9,391 | — | |||||||||||||
Bank acceptances | 18,310 | 17,263 | 16,786 | |||||||||||||
Current tax liabilities | 378 | 575 | 833 | |||||||||||||
Deferred tax liabilities | 1,336 | 1,153 | 921 | |||||||||||||
Other provisions | 821 | 846 | 871 | |||||||||||||
Insurance policy liabilities | 15 | 22,225 | 23,055 | 24,694 | ||||||||||||
Debt issues | 78,591 | 70,036 | 70,765 | |||||||||||||
Managed funds units on issue | 1,109 | 1,031 | — | |||||||||||||
Bills payable and other liabilities | 6,053 | 3,917 | 17,551 | |||||||||||||
337,865 | 322,214 | 308,470 | ||||||||||||||
Loan capital | 9,895 | 9,129 | 6,291 | |||||||||||||
Total liabilities | 347,760 | 331,343 | 314,761 | |||||||||||||
Net assets | 21,343 | 19,850 | 22,643 | |||||||||||||
Shareholders’ Equity | ||||||||||||||||
Share capital: | ||||||||||||||||
Ordinary share capital | 14 | 13,505 | 13,801 | 13,486 | ||||||||||||
Preference share capital | — | — | 687 | |||||||||||||
Other equity instruments | 939 | — | 1,573 | |||||||||||||
Reserves | 1,904 | 1,936 | 1,265 | |||||||||||||
Retained profits | 19 | 4,487 | 3,590 | 3,843 | ||||||||||||
Shareholders’ equity attributable to members of the Bank | 20,835 | 19,327 | 20,854 | |||||||||||||
Minority interests: | ||||||||||||||||
Controlled entities | 508 | 523 | 631 | |||||||||||||
Insurance statutory funds and other funds | — | — | 1,158 | |||||||||||||
Total shareholders’ equity | 21,343 | 19,850 | 22,643 | |||||||||||||
For the year ended 30 June 2006
Full Year Ended | ||||||||||||
30/06/06 | 30/06/05 | |||||||||||
Appendix | $M | $M | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Interest received | 19,712 | 16,781 | ||||||||||
Interest paid | (12,555 | ) | (10,720 | ) | ||||||||
Other operating income received | 4,319 | 4,559 | ||||||||||
Expenses paid | (5,809 | ) | (5,678 | ) | ||||||||
Income taxes paid | (1,980 | ) | (985 | ) | ||||||||
Net decrease in trading securities | — | 318 | ||||||||||
Assets at fair value through Income Statement (excluding life insurance) | (307 | ) | — | |||||||||
Life insurance: | ||||||||||||
Investment income | 2,399 | 1,572 | ||||||||||
Premiums received(3) | 2,338 | 3,183 | ||||||||||
Policy payments(3) | (4,938 | ) | (4,664 | ) | ||||||||
Liabilities at fair value through Income Statement (excluding life insurance) | 1,445 | — | ||||||||||
Cash Flows from operating activities before changes in operating assets and liabilities | 4,624 | 4,366 | ||||||||||
Changes in operating assets and liabilities arising from cash flow movements | ||||||||||||
Movement in investment securities: | ||||||||||||
Purchases | — | (22,608 | ) | |||||||||
Proceeds from sale | — | 396 | ||||||||||
Proceeds at or close to maturity | — | 22,799 | ||||||||||
Movement in available for sale investments: | ||||||||||||
Purchases | (28,189 | ) | — | |||||||||
Proceeds from sale | 646 | — | ||||||||||
Proceeds at or close to maturity | 24,831 | — | ||||||||||
Lodgement of deposits with regulatory authorities | (29 | ) | (7 | ) | ||||||||
Net (increase) in loans, advances and other receivables | (31,996 | ) | (31,721 | ) | ||||||||
Net (increase)/decrease in receivables due from other financial institutions not at call | (881 | ) | 1,097 | |||||||||
Net decrease in securities purchased under agreements to resell | 537 | 991 | ||||||||||
Life insurance business: | ||||||||||||
Purchase of insurance assets at fair value through Income Statement | (8,078 | ) | (14,165 | ) | ||||||||
Proceeds from sale/maturity of insurance assets at fair value through Income Statement | 9,398 | 15,281 | ||||||||||
Net increase in deposits and other borrowings | 12,799 | 6,332 | ||||||||||
Net proceeds from issuance of debt securities | 14,605 | 17,934 | ||||||||||
Net increase in payables due to other financial institutions not at call | 2,571 | 449 | ||||||||||
Net increase/(decrease) in securities sold under agreements to repurchase | 328 | (1,480 | ) | |||||||||
Changes in operating assets and liabilities arising from cash flow movements | (3,458 | ) | (4,702 | ) | ||||||||
Net cash provided by/(used in) Operating Activities | 19 (a) | 1,166 | (336 | ) | ||||||||
Cash flows from Investing Activities | ||||||||||||
Payment for acquisition of entities and management rights | 19 (e) | (418 | ) | (40 | ) | |||||||
Proceeds from disposal of controlled entities | 19 (c) | 553 | — | |||||||||
Proceeds from disposal of entities and businesses (net of cash disposed) | 35 | 173 | ||||||||||
Dividend received | 4 | 3 | ||||||||||
Proceeds from sale of property, plant and equipment | 32 | 30 | ||||||||||
Purchases of property, plant and equipment | (385 | ) | (286 | ) | ||||||||
Payment for acquisition of investments in associates | (152 | ) | (42 | ) | ||||||||
Purchases of intangible assets | (90 | ) | (92 | ) | ||||||||
Net decrease in other assets | 31 | 1,055 | ||||||||||
Net Cash (used in)/provided by Investing Activities | (390 | ) | 801 | |||||||||
(1) | It should be noted that the Bank does not use this accounting Statement of Cash Flows in the internal management of its liquidity positions. | |
(2) | Adjusted for AIFRS gross-up. Refer note 1 (mm) (ii) of the 31 December 2005 Profit Announcement. | |
(3) | These were gross premiums and policy payments before splitting between policyholders and shareholders. |
For the year ended 30 June 2006
Full Year Ended | ||||||||||||
30/06/06 | 30/06/05 | |||||||||||
Appendix | $M | $M | ||||||||||
Cash Flows from Financing Activities | ||||||||||||
Buy back of shares | (500 | ) | — | |||||||||
Proceeds from issue of shares (net of costs) | 49 | 66 | ||||||||||
Proceeds from issue of preference shares to minority interests | — | 323 | ||||||||||
Proceeds from issue of other equity instruments (net of costs) | 939 | — | ||||||||||
Dividends paid (excluding DRP buy back of shares) | (2,163 | ) | (2,083 | ) | ||||||||
Net movement in other liabilities | 139 | (330 | ) | |||||||||
Net (purchase)/sale of treasury shares | (10 | ) | (60 | ) | ||||||||
Issue of loan capital | 2,446 | 1,233 | ||||||||||
Redemption of loan capital | (915 | ) | (1,392 | ) | ||||||||
Other | 1 | 55 | ||||||||||
Net cash (used in)/provided by financing activities | (14 | ) | (2,188 | ) | ||||||||
Net increased/(decrease) in cash and cash equivalents | 762 | (1,723 | ) | |||||||||
Cash and cash equivalents at beginning of period | 1,276 | 2,999 | ||||||||||
Cash and cash equivalents at end of period | 19 | (b) | 2,038 | 1,276 | ||||||||
(1) | It should be noted that the Bank does not use this accounting Statement of Cash Flows in the internal management of its liquidity positions. | |
(2) | Adjusted for AIFRS gross-up. Refer note 1 (mm) (ii) of the 31 December 2005 Profit Announcement. |
1 | Net Interest Income | 29 | ||||
2 | Net Interest Margin | 29 | ||||
3 | Average Balances and Related Interest | 30 | ||||
4 | Interest Rate and Volume Analysis | 34 | ||||
5 | Other Banking Operating Income | 36 | ||||
6 | Operating Expenses | 36 | ||||
7 | Income Tax Expense | 38 | ||||
8 | Loans, Advances and Other Receivables | 39 | ||||
9 | Asset Quality | 40 | ||||
10 | Deposits and Other Public Borrowings | 42 | ||||
11 | Financial Reporting by Segment | 43 | ||||
12 | Integrated Risk Management | 45 | ||||
13 | Capital Adequacy | 47 | ||||
14 | Share Capital | 50 | ||||
15 | Life Insurance Business | 51 | ||||
16 | Intangible Assets | 53 | ||||
17 | ASB Bank Group | 54 | ||||
18 | Sale of the Hong Kong Business | 55 | ||||
19 | ASX Appendix 4E Statement | 55 | ||||
20 | Summary of Major AIFRS Impacts | 59 | ||||
21 | Analysis Template | 61 | ||||
22 | Summary | 65 | ||||
23 | Foreign Exchange Rates | 66 | ||||
24 | Definitions | 67 | ||||
25 | Market Share Definitions | 68 |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Interest Income | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Loans | 17,304 | 14,846 | 17 | 8,829 | 8,475 | 4 | ||||||||||||||||||
Other financial institutions | 333 | 229 | 45 | 158 | 175 | (10 | ) | |||||||||||||||||
Cash and liquid assets | 250 | 198 | 26 | 147 | 103 | 43 | ||||||||||||||||||
Investment securities | — | 723 | — | — | — | — | ||||||||||||||||||
Assets at fair value through the Income Statement | 1,186 | 785 | 51 | 645 | 541 | 19 | ||||||||||||||||||
Available-for-sale investments | 685 | — | — | 341 | 344 | (1 | ) | |||||||||||||||||
Total interest income | 19,758 | 16,781 | 18 | 10,120 | 9,638 | 5 | ||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||
Deposits | 7,388 | 7,063 | (5 | ) | 3,765 | 3,623 | (4 | ) | ||||||||||||||||
Other financial institutions | 475 | 257 | (85 | ) | 262 | 213 | (23 | ) | ||||||||||||||||
Liabilities at fair value through the Income Statement | 971 | — | — | 490 | 481 | (2 | ) | |||||||||||||||||
Debt issues | 3,795 | 3,084 | (23 | ) | 2,011 | 1,784 | (13 | ) | ||||||||||||||||
Loan capital | 615 | 351 | (75 | ) | 333 | 282 | (18 | ) | ||||||||||||||||
Total interest expense | 13,244 | 10,755 | (23 | ) | 6,861 | 6,383 | (7 | ) | ||||||||||||||||
Net interest income | 6,514 | 6,026 | 8 | 3,259 | 3,255 | — | ||||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
% | % | % | % | |||||||||||||
Australia | ||||||||||||||||
Interest spread(1) | 2.21 | 2.33 | 2.15 | 2.27 | ||||||||||||
Benefit of interest free liabilities, provisions and equity(2) | 0.24 | 0.25 | 0.23 | 0.26 | ||||||||||||
Net interest margin(3) | 2.45 | 2.58 | 2.38 | 2.53 | ||||||||||||
Overseas | ||||||||||||||||
Interest spread(1) | 0.97 | 1.03 | 0.97 | 0.97 | ||||||||||||
Benefit of interest free liabilities, provisions and equity(2) | 0.67 | 0.68 | 0.68 | 0.65 | ||||||||||||
Net interest margin(3) | 1.64 | 1.71 | 1.65 | 1.62 | ||||||||||||
Total Bank | ||||||||||||||||
Interest spread(1) | 1.98 | 2.08 | 1.95 | 2.02 | ||||||||||||
Benefit of interest free liabilities, provisions and equity(2) | 0.36 | 0.35 | 0.34 | 0.37 | ||||||||||||
Net interest margin(3) | 2.34 | 2.43 | 2.29 | 2.39 | ||||||||||||
(1) | Difference between the average interest rate earned and the average interest rate paid on funds. | |
(2) | A portion of the Bank’s interest earning assets is funded by interest free liabilities and shareholders’ equity. The benefit to the Bank of these interest free funds is the amount it would cost to replace them at the average cost of funds. | |
(3) | Net interest income divided by average interest earning assets for the year. |
Profit Announcement 29
Full Year Ended 30/06/06 | Full Year Ended 30/06/05 | |||||||||||||||||||||||
Avg Bal | Income | Yield | Avg Bal | Income | Yield | |||||||||||||||||||
Interest Earning Assets | $M | $M | % | $M | $M | % | ||||||||||||||||||
Home loans excluding securitisation | 147,710 | 9,988 | 6.76 | 132,086 | 8,769 | 6.64 | ||||||||||||||||||
Personal(1) | 16,174 | 1,753 | 10.84 | 14,615 | 1,541 | 10.54 | ||||||||||||||||||
Business and corporate | 68,739 | 4,798 | 6.98 | 58,731 | 3,939 | 6.71 | ||||||||||||||||||
Loans, Advances and Other Receivables | 232,623 | 16,539 | 7.11 | 205,432 | 14,249 | 6.94 | ||||||||||||||||||
Cash and other liquid assets | 11,512 | 583 | 5.06 | 10,978 | 427 | 3.89 | ||||||||||||||||||
Assets at fair value through Income Statement (excluding life insurance)(2) | 19,145 | 1,186 | 6.19 | 15,385 | 785 | 5.10 | ||||||||||||||||||
Investment Securities | — | — | — | 12,913 | 723 | 5.60 | ||||||||||||||||||
Available-for-sale investments | 11,518 | 685 | 5.95 | — | — | — | ||||||||||||||||||
Non Lending Interest Earning Assets | 42,175 | 2,454 | 5.82 | 39,276 | 1,935 | 4.93 | ||||||||||||||||||
Total interest earning assets (excluding securitisation)(3) | 274,798 | 18,993 | 6.91 | 244,708 | 16,184 | 6.61 | ||||||||||||||||||
Securitisation home loan assets | 10,887 | 765 | 7.03 | 8,568 | 597 | 6.97 | ||||||||||||||||||
Non interest earning assets | 67,729 | 70,324 | ||||||||||||||||||||||
Total Average Assets | 353,414 | 323,600 | ||||||||||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||
Transaction deposits | 33,827 | 975 | 2.88 | 31,788 | 770 | 2.42 | ||||||||||||||||||
Savings deposits | 39,968 | 1,443 | 3.61 | 38,221 | 1,274 | 3.33 | ||||||||||||||||||
Investment deposits | 66,573 | 3,667 | 5.51 | 64,025 | 3,618 | 5.65 | ||||||||||||||||||
Certificates of deposits and other(2) | 19,699 | 1,303 | 6.61 | 25,833 | 1,401 | 5.42 | ||||||||||||||||||
Total Interest Bearing Deposits | 160,067 | 7,388 | 4.62 | 159,867 | 7,063 | 4.42 | ||||||||||||||||||
Payable due to other financial Institutions | 9,631 | 475 | 4.93 | 7,999 | 257 | 3.21 | ||||||||||||||||||
Liabilities at fair value through the Income Statement | 15,304 | 971 | 6.34 | — | — | — | ||||||||||||||||||
Debt issue(2) | 60,918 | 3,124 | 5.13 | 51,393 | 2,557 | 4.98 | ||||||||||||||||||
Loan Capital(2) | 9,180 | 615 | 6.70 | 6,338 | 351 | 5.54 | ||||||||||||||||||
Total Interest Bearing Liabilities | 255,100 | 12,573 | 4.93 | 225,597 | 10,228 | 4.53 | ||||||||||||||||||
Securitisation debt issues | 11,541 | 671 | 5.81 | 9,911 | 527 | 5.32 | ||||||||||||||||||
Non Interest Bearing Liabilities | 64,780 | 66,062 | ||||||||||||||||||||||
Total Average Liabilities | 331,421 | 301,570 | ||||||||||||||||||||||
(1) | Personal includes personal loans, credit cards, and margin loans. | |
(2) | Comparisons between reporting periods are impacted by hedge acconting. | |
(3) | Used for calculating net interest margin. |
30 Commonwealth Bank of Australia
Half Year Ended 30/06/06 | Half Year Ended 31/12/05 | Half Year Ended 30/06/05 | |||||||||||||||||||||||||||||||||||||
Avg Bal | Income | Yield | Avg Bal | Income | Yield | Avg Bal | Income | Yield | |||||||||||||||||||||||||||||||
Interest Earning Assets | $M | $M | % | $M | $M | % | $M | $M | % | ||||||||||||||||||||||||||||||
Home loans excluding securitisation | 150,588 | 5,063 | 6.78 | 144,879 | 4,925 | 6.74 | 136,102 | 4,529 | 6.71 | ||||||||||||||||||||||||||||||
Personal(1) | 16,475 | 885 | 10.83 | 15,878 | 868 | 10.84 | 15,342 | 810 | 10.65 | ||||||||||||||||||||||||||||||
Business and corporate | 72,565 | 2,468 | 6.86 | 64,975 | 2,330 | 7.11 | 60,261 | 2,021 | 6.76 | ||||||||||||||||||||||||||||||
Loans, Advances and Other Receivables | 239,628 | 8,416 | 7.08 | 225,732 | 8,123 | 7.14 | 211,705 | 7,360 | 7.01 | ||||||||||||||||||||||||||||||
Cash and other liquid assets | 12,068 | 305 | 5.10 | 10,965 | 278 | 5.03 | 10,969 | 219 | 4.03 | ||||||||||||||||||||||||||||||
Assets at fair value through Income Statement (ex life insurance)(2) | 19,473 | 645 | 6.68 | 18,822 | 541 | 5.70 | 14,960 | 391 | 5.27 | ||||||||||||||||||||||||||||||
Investment Securities | — | — | — | — | — | — | 12,723 | 379 | 6.01 | ||||||||||||||||||||||||||||||
Available-for-sale investments | 11,384 | 341 | 6.04 | 11,650 | 344 | 5.86 | — | — | — | ||||||||||||||||||||||||||||||
Non Lending Interest Earning Assets | 42,925 | 1,291 | 6.06 | 41,437 | 1,163 | 5.57 | 38,652 | 989 | 5.16 | ||||||||||||||||||||||||||||||
Total interest earning assets (excluding securitisation)(3) | 282,553 | 9,707 | 6.93 | 267,169 | 9,286 | 6.89 | 250,357 | 8,349 | 6.73 | ||||||||||||||||||||||||||||||
Securitisation home loan assets | 11,775 | 413 | 7.07 | 10,013 | 352 | 6.97 | 9,932 | 343 | 6.96 | ||||||||||||||||||||||||||||||
Non interest earning assets | 67,847 | 67,613 | 70,197 | ||||||||||||||||||||||||||||||||||||
Total Average Assets | 362,175 | 344,795 | 330,486 | ||||||||||||||||||||||||||||||||||||
Interest Bearing Liabilities | |||||||||||||||||||||||||||||||||||||||
Transaction deposits | 34,403 | 509 | 2.98 | 33,259 | 466 | 2.78 | 32,454 | 414 | 2.57 | ||||||||||||||||||||||||||||||
Savings deposits | 40,876 | 748 | 3.69 | 39,075 | 695 | 3.53 | 38,193 | 638 | 3.37 | ||||||||||||||||||||||||||||||
Investment deposits | 68,226 | 1,862 | 5.50 | 64,948 | 1,804 | 5.51 | 65,577 | 1,870 | 5.75 | ||||||||||||||||||||||||||||||
Certificates of deposits and other(2) | 19,901 | 646 | 6.55 | 19,500 | 658 | 6.69 | 25,467 | 704 | 5.57 | ||||||||||||||||||||||||||||||
Total Interest Bearing Deposits | 163,406 | 3,765 | 4.65 | 156,782 | 3,623 | 4.58 | 161,691 | 3,626 | 4.52 | ||||||||||||||||||||||||||||||
Payable due to other financial Institutions | 10,291 | 262 | 5.13 | 8,982 | 213 | 4.70 | 8,181 | 131 | 3.23 | ||||||||||||||||||||||||||||||
Liabilities at fair value through the Income Statement | 15,528 | 490 | 6.36 | 15,084 | 481 | 6.33 | — | — | — | ||||||||||||||||||||||||||||||
Debt issue(2) | 64,193 | 1,655 | 5.20 | 57,696 | 1,469 | 5.05 | 54,277 | 1,378 | 5.12 | ||||||||||||||||||||||||||||||
Loan Capital(2) | 9,785 | 333 | 6.86 | 8,585 | 282 | 6.52 | 6,203 | 186 | 6.05 | ||||||||||||||||||||||||||||||
Total Interest Bearing Liabilities | 263,203 | 6,505 | 4.98 | 247,129 | 6,068 | 4.87 | 230,352 | 5,321 | 4.66 | ||||||||||||||||||||||||||||||
Securitisation debt issues | 11,856 | 356 | 6.06 | 11,231 | 315 | 5.56 | 11,124 | 303 | 5.49 | ||||||||||||||||||||||||||||||
Non Interest Bearing Liabilities | 64,393 | 65,161 | 66,609 | ||||||||||||||||||||||||||||||||||||
Total Average Liabilities | 339,452 | 323,521 | 308,085 | ||||||||||||||||||||||||||||||||||||
(1) | Personal includes personal loans, credit cards, and margin loans. | |
(2) | Comparisons between reporting periods are impacted by hedge acconting. | |
(3) | Used for calculating net interest margin. |
Profit Announcement 31
Full Year Ended 30/06/06 | Full Year Ended 30/06/05 | |||||||||||||||||||||||
Avg Bal | Income | Yield | Avg Bal | Income | Yield | |||||||||||||||||||
Net Interest Margin | $M | $M | % | $M | $M | % | ||||||||||||||||||
Total interest earning assets excluding securitisation | 274,798 | 18,993 | 6.91 | 244,708 | 16,184 | 6.61 | ||||||||||||||||||
Total interest bearing liabilities excluding securitisation | 255,100 | 12,573 | 4.93 | 225,597 | 10,228 | 4.53 | ||||||||||||||||||
Net interest income & interest spread (excluding securitisation) | 6,420 | 1.98 | 5,956 | 2.08 | ||||||||||||||||||||
Benefit of free funds | 0.36 | 0.35 | ||||||||||||||||||||||
Net interest margin | 2.34 | 2.43 | ||||||||||||||||||||||
Full Year Ended | ||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | ||||||||||
Reconciliation of Net Interest Margin | % | % | Jun 05 % | |||||||||
Net interest Margin as reported | 2.34 | 2.43 | (9)bpts | |||||||||
AIFRS volatility(1) | 0.02 | — | 2bpts | |||||||||
Underlying net interest margin | 2.36 | 2.43 | (7)bpts | |||||||||
(1) | Relates to the movement in the AIFRS impact (mainly hybrid distributions and hedge accounting) between repoting periods. |
Full Year Ended 30/06/06 | Full Year Ended 30/06/05 | |||||||||||||||||||||||
Avg Bal | Income | Yield | Avg Bal | Income | Yield | |||||||||||||||||||
Loans, Advances and Other | $M | $M | % | $M | $M | % | ||||||||||||||||||
Australia | 192,086 | 13,527 | 7.04 | 171,249 | 11,822 | 6.90 | ||||||||||||||||||
Overseas | 40,537 | 3,012 | 7.43 | 34,183 | 2,427 | 7.10 | ||||||||||||||||||
Total | 232,623 | 16,539 | 7.11 | 205,432 | 14,249 | 6.94 | ||||||||||||||||||
Non Lending Interest Earning Assets | ||||||||||||||||||||||||
Australia | 24,123 | 1,462 | 6.06 | 22,020 | 1,138 | 5.17 | ||||||||||||||||||
Overseas | 18,052 | 992 | 5.50 | 17,256 | 797 | 4.62 | ||||||||||||||||||
Total | 42,175 | 2,454 | 5.82 | 39,276 | 1,935 | 4.93 | ||||||||||||||||||
Total Interest Bearing Deposits | ||||||||||||||||||||||||
Australia | 137,101 | 6,041 | 4.41 | 134,365 | 5,422 | 4.04 | ||||||||||||||||||
Overseas | 22,966 | 1,347 | 5.87 | 25,502 | 1,641 | 6.43 | ||||||||||||||||||
Total | 160,067 | 7,388 | 4.62 | 159,867 | 7,063 | 4.42 | ||||||||||||||||||
Other Interest Bearing Liabilities | ||||||||||||||||||||||||
Australia | 58,271 | 3,308 | 5.68 | 42,126 | 2,466 | 5.85 | ||||||||||||||||||
Overseas | 36,762 | 1,877 | 5.11 | 23,604 | 699 | 2.96 | ||||||||||||||||||
Total | 95,033 | 5,185 | 5.46 | 65,730 | 3,165 | 4.82 | ||||||||||||||||||
32 Commwealth Bank of Australia
Half Year Ended 30/06/06 | Half Year Ended 31/12/05 | Half Year Ended 30/06/05 | ||||||||||||||||||||||||||||||||||
Avg Bal | Income | Yield | Avg Bal | Income | Yield | Avg Bal | Income | Yield | ||||||||||||||||||||||||||||
Net Interest Margin | $M | $M | % | $M | $M | % | $M | $M | % | |||||||||||||||||||||||||||
Total interest earning assets excluding securitisation | 282,553 | 9,707 | 6.93 | 267,169 | 9,286 | 6.89 | 250,357 | 8,349 | 6.73 | |||||||||||||||||||||||||||
Total interest bearing liabilities excluding securitisation | 263,203 | 6,505 | 4.98 | 247,129 | 6,068 | 4.87 | 230,352 | 5,321 | 4.66 | |||||||||||||||||||||||||||
Net interest income & interest spread (excluding securitisation) | 3,202 | 1.95 | 3,218 | 2.02 | 3,028 | 2.07 | ||||||||||||||||||||||||||||||
Benefit of free funds | 0.34 | 0.37 | 0.37 | |||||||||||||||||||||||||||||||||
Net interest margin | 2.29 | 2.39 | 2.44 | |||||||||||||||||||||||||||||||||
Half Year Ended | ||||||||||||
30/06/06 | 31/12/05 | Jun 06 vs | ||||||||||
Reconciliation of Net Interest Margin | % | % | Dec 05 % | |||||||||
Net interest margin as reported (1) | 2. 29 | 2. 39 | (10)bpts | |||||||||
AIFRS volatility(2) | 0. 01 | — | 1bpt | |||||||||
Underlying net interest margin | 2. 30 | 2. 39 | (9)bpts | |||||||||
(1) | Restated from 2.41% in the 31 December 2005 Profit Announcement due to a change in accounting policy regarding classification of interest expense on certain non-traded derivatives (resulted in a $29 million increase in interest expense). | |
(2) | Relates to the movement in the AIFRS impact (mainly hybrid distributions and hedge accounting) between repoting periods. |
Half Year Ended 30/06/06 | Half Year Ended 31/12/05 | Half Year Ended 30/06/05 | ||||||||||||||||||||||||||||||||||
Avg Bal | Income | Yield | Avg Bal | Income | Yield | Avg Bal | Income | Yield | ||||||||||||||||||||||||||||
Loans, Advances and Other | $M | $M | % | $M | $M | % | $M | $M | % | |||||||||||||||||||||||||||
Australia | 197,262 | 6,810 | 6.96 | 186,994 | 6,717 | 7.13 | 176,197 | 6,080 | 6.96 | |||||||||||||||||||||||||||
Overseas | 42,366 | 1,606 | 7.64 | 38,738 | 1,406 | 7.20 | 35,508 | 1,280 | 7.27 | |||||||||||||||||||||||||||
Total | 239,628 | 8,416 | 7.08 | 225,732 | 8,123 | 7.14 | 211,705 | 7,360 | 7.01 | |||||||||||||||||||||||||||
Non Lending Interest Earning Assets | ||||||||||||||||||||||||||||||||||||
Australia | 24,695 | 754 | 6.16 | 23,560 | 708 | 5.96 | 21,633 | 574 | 5.35 | |||||||||||||||||||||||||||
Overseas | 18,230 | 537 | 5.94 | 17,877 | 455 | 5.05 | 17,019 | 415 | 4.92 | |||||||||||||||||||||||||||
Total | 42,925 | 1,291 | 6.06 | 41,437 | 1,163 | 5.57 | 38,652 | 989 | 5.16 | |||||||||||||||||||||||||||
Total Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||
Australia | 140,037 | 3,046 | 4.39 | 134,212 | 2,995 | 4.43 | 135,402 | 2,756 | 4.10 | |||||||||||||||||||||||||||
Overseas | 23,369 | 719 | 6.20 | 22,570 | 628 | 5.52 | 26,289 | 870 | 6.67 | |||||||||||||||||||||||||||
Total | 163,406 | 3,765 | 4.65 | 156,782 | 3,623 | 4.58 | 161,691 | 3,626 | 4.52 | |||||||||||||||||||||||||||
Other Interest Bearing Liabilities | ||||||||||||||||||||||||||||||||||||
Australia | 60,216 | 1,693 | 5.67 | 56,358 | 1,615 | 5.68 | 44,260 | 1,289 | 5.87 | |||||||||||||||||||||||||||
Overseas | 39,581 | 1,047 | 5.33 | 33,989 | 830 | 4.84 | 24,401 | 406 | 3.36 | |||||||||||||||||||||||||||
Total | 99,797 | 2,740 | 5.54 | 90,347 | 2,445 | 5.37 | 68,661 | 1,695 | 4.98 | |||||||||||||||||||||||||||
Profit Announcement 33
Full Year Ended | ||||
30/06/06 | ||||
vs 30/06/05 | ||||
Increase/ | ||||
(Decrease) | ||||
Change in Net Interest Income | ||||
Due to changes in average volume of interest earning assets and interest bearing liabilities | 718 | |||
Due to changes in interest margin | (254 | ) | ||
Due to variation in time period | — | |||
Change in net interest income | 464 | |||
Full Year Ended Jun 06 vs Jun 05 | Full Year Ended Jun 05 vs Jun 04 | |||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||
Interest Earning Assets | $M | $M | $M | $M | $M | $M | ||||||||||||||||||
Home loans | 1,047 | 172 | 1,219 | 1,345 | 318 | 1,663 | ||||||||||||||||||
Personal | 167 | 45 | 212 | 213 | 77 | 290 | ||||||||||||||||||
Business and corporate | 685 | 174 | 859 | 432 | 165 | 597 | ||||||||||||||||||
Loans, advances and other receivables | 1,910 | 380 | 2,290 | 1,992 | 558 | 2,550 | ||||||||||||||||||
Cash and other liquid assets | 24 | 132 | 156 | (40 | ) | 87 | 47 | |||||||||||||||||
Assets at fair value through Income Statement (excluding life insurance) | 212 | 189 | 401 | 109 | 76 | 185 | ||||||||||||||||||
Investment securities | (362 | ) | (361 | ) | (723 | ) | 3 | 112 | 115 | |||||||||||||||
Available-for-sale investments | 343 | 342 | 685 | — | — | — | ||||||||||||||||||
Non lending interest earning assets | 156 | 363 | 519 | 54 | 293 | 347 | ||||||||||||||||||
Total interest earning assets | 2,035 | 774 | 2,809 | 1,956 | 941 | 2,897 | ||||||||||||||||||
Securitisation home loan assets | 162 | 6 | 168 | 299 | 298 | 597 | ||||||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||
Transaction deposits | 54 | 151 | 205 | 42 | 94 | 136 | ||||||||||||||||||
Savings deposits | 61 | 108 | 169 | 51 | 104 | 155 | ||||||||||||||||||
Investment deposits | 143 | (94 | ) | 49 | 377 | 361 | 738 | |||||||||||||||||
Certificates of deposits and other | (369 | ) | 271 | (98 | ) | (23 | ) | 108 | 85 | |||||||||||||||
Total interest bearing deposits | 9 | 316 | 325 | 421 | 693 | 1,114 | ||||||||||||||||||
Payable due to other financial institutions | 66 | 152 | 218 | 29 | 68 | 97 | ||||||||||||||||||
Liabilities at fair value through Income Statement | 486 | 485 | 971 | — | — | — | ||||||||||||||||||
Debt issues | 481 | 86 | 567 | 775 | 277 | 1,052 | ||||||||||||||||||
Loan capital | 174 | 90 | 264 | 17 | 71 | 88 | ||||||||||||||||||
Total interest bearing liabilities | 1,396 | 949 | 2,345 | 1,196 | 1,155 | 2,351 | ||||||||||||||||||
Securitised debt issues | 91 | 53 | 144 | 264 | 263 | 527 | ||||||||||||||||||
Full Year Ended Jun 06 vs Jun 05 | Full Year Ended Jun 05 vs Jun 04 | |||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||
Geographical analysis of key categories | $M | $M | $M | SM | $M | $M | ||||||||||||||||||
Loans, Advances and Other | ||||||||||||||||||||||||
Australia | 1,453 | 252 | 1,705 | 1,474 | 421 | 1,895 | ||||||||||||||||||
Overseas | 462 | 123 | 585 | 521 | 134 | 655 | ||||||||||||||||||
Total | 1,910 | 380 | 2,290 | 1,992 | 558 | 2,550 | ||||||||||||||||||
Non Lending Interest Earning Assets | ||||||||||||||||||||||||
Australia | 118 | 206 | 324 | 25 | 158 | 183 | ||||||||||||||||||
Overseas | 40 | 155 | 195 | 28 | 136 | 164 | ||||||||||||||||||
Total | 156 | 363 | 519 | 54 | 293 | 347 | ||||||||||||||||||
Total Interest Bearing Deposits | ||||||||||||||||||||||||
Australia | 115 | 504 | 619 | 269 | 457 | 726 | ||||||||||||||||||
Overseas | (156 | ) | (138 | ) | (294 | ) | 185 | 203 | 388 | |||||||||||||||
Total | 9 | 316 | 325 | 421 | 693 | 1,114 | ||||||||||||||||||
Other Interest Bearing Liabilities | ||||||||||||||||||||||||
Australia | 931 | (89 | ) | 842 | 702 | 182 | 884 | |||||||||||||||||
Overseas | 531 | 647 | 1,178 | 134 | 219 | 353 | ||||||||||||||||||
Total | 1,505 | 515 | 2,020 | 798 | 439 | 1,237 | ||||||||||||||||||
34 Commonwealth Bank of Australia
Half Year Ended | ||||||||
30/06/06 | 30/06/06 | |||||||
vs 31/12/05 | vs 30/06/05 | |||||||
Increase/ | Increase/ | |||||||
(Decrease) | (Decrease) | |||||||
Change in Net Interest Income | $M | $M | ||||||
Due to changes in average volume of interest earning assets and interest bearing liabilities | 178 | 377 | ||||||
Due to changes in interest margin | (142 | ) | (203 | ) | ||||
Due to variation in time period | (52 | ) | — | |||||
Change in net interest income | (16 | ) | 174 | |||||
Half Year Ended Jun 06 vs Dec 05 | Half Year Ended Jun 06 vs Jun 05 | |||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||
Interest Earning Assets | $M | $M | $M | $M | $M | $M | ||||||||||||||||||
Home loans | 193 | (55 | ) | 138 | 485 | 49 | 534 | |||||||||||||||||
Personal | 32 | (15 | ) | 17 | 60 | 15 | 75 | |||||||||||||||||
Business and corporate | 265 | (127 | ) | 138 | 416 | 31 | 447 | |||||||||||||||||
Loans, advances and other receivables | �� | 494 | (201 | ) | 293 | 976 | 80 | 1,056 | ||||||||||||||||
Cash and other liquid assets | 28 | (1 | ) | 27 | 25 | 61 | 86 | |||||||||||||||||
Assets at fair value through Income Statement (excluding life insurance) | 20 | 84 | 104 | 134 | 120 | 254 | ||||||||||||||||||
Investment securities | — | — | — | (190 | ) | (189 | ) | (379 | ) | |||||||||||||||
Available-for-sale investments | (8 | ) | (5 | ) | (3 | ) | 171 | 170 | 341 | |||||||||||||||
Non lending interest earning assets | 43 | 85 | 128 | 119 | 183 | 302 | ||||||||||||||||||
Total interest earning assets | 532 | (111 | ) | 421 | 1,090 | 268 | 1,358 | |||||||||||||||||
Securitisation home loan assets | 62 | (1 | ) | 61 | 64 | 6 | 70 | |||||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||
Transaction deposits | 16 | 27 | 43 | 27 | 68 | 95 | ||||||||||||||||||
Savings deposits | 33 | 20 | 53 | 47 | 63 | 110 | ||||||||||||||||||
Investment deposits | 91 | (33 | ) | 58 | 74 | (82 | ) | (8 | ) | |||||||||||||||
Certificates of deposits and other | 12 | (24 | ) | (12 | ) | (168 | ) | 110 | (58 | ) | ||||||||||||||
Total interest bearing deposits | 153 | (11 | ) | 142 | 39 | 100 | 139 | |||||||||||||||||
Payable due to other financial institutions | 32 | 17 | 49 | 44 | 87 | 131 | ||||||||||||||||||
Liabilities at fair value through Income Statement | 14 | (5 | ) | 9 | 245 | 245 | 490 | |||||||||||||||||
Debt issues | 166 | 20 | 186 | 254 | 23 | 277 | ||||||||||||||||||
Loan capital | 40 | 11 | 51 | 115 | 32 | 147 | ||||||||||||||||||
Total interest bearing liabilities | 396 | 41 | 437 | 785 | 399 | 1,184 | ||||||||||||||||||
Securitised debt issues | 18 | 23 | 41 | 21 | 32 | 53 | ||||||||||||||||||
Half Year Jun 06 vs Dec 05 | Half Year Jun 06 vs Jun 05 | |||||||||||||||||||||||
Geographical analysis of key | Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
categories | $M | $M | $M | $M | $M | $M | ||||||||||||||||||
Loans, Advances and Other | ||||||||||||||||||||||||
Australia | 362 | (269 | ) | 93 | 727 | 3 | 730 | |||||||||||||||||
Overseas | 135 | 65 | 200 | 254 | 72 | 326 | ||||||||||||||||||
Total | 494 | (201 | ) | 293 | 976 | 80 | 1,056 | |||||||||||||||||
Non Lending Interest Earning Assets | ||||||||||||||||||||||||
Australia | 34 | 12 | 46 | 87 | 93 | 180 | ||||||||||||||||||
Overseas | 10 | 72 | 82 | 33 | 89 | 122 | ||||||||||||||||||
Total | 43 | 85 | 128 | 119 | 183 | 302 | ||||||||||||||||||
Total Interest Bearing Deposits | ||||||||||||||||||||||||
Australia | 128 | (77 | ) | 51 | 98 | 192 | 290 | |||||||||||||||||
Overseas | 23 | 68 | 91 | (93 | ) | (58 | ) | (151 | ) | |||||||||||||||
Total | 153 | (11 | ) | 142 | 39 | 100 | 139 | |||||||||||||||||
Other Interest Bearing Liabilities | ||||||||||||||||||||||||
Australia | 109 | (31 | ) | 78 | 457 | (53 | ) | 404 | ||||||||||||||||
Overseas | 142 | 75 | 217 | 327 | 314 | 641 | ||||||||||||||||||
Total | 258 | 37 | 295 | 812 | 233 | 1,045 | ||||||||||||||||||
Profit Announcement 35
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
$M | $M | Jun 05 % | $M | $M | Dec 05 % | |||||||||||||||||||
Lending fees | 800 | 733 | 9 | 411 | 389 | 6 | ||||||||||||||||||
Commission and other fees | 1,635 | 1,545 | 6 | 820 | 815 | 1 | ||||||||||||||||||
Trading income | 505 | 440 | 15 | 261 | 244 | 7 | ||||||||||||||||||
Net gain/(loss) on disposal of non-trading instruments | 45 | (13 | ) | large | 44 | 1 | large | |||||||||||||||||
Dividends | 4 | 3 | 33 | 3 | 1 | large | ||||||||||||||||||
Net profit on sale of property, plant and equipment | 4 | 4 | — | 4 | — | — | ||||||||||||||||||
Other | 122 | 133 | (8 | ) | 87 | 35 | large | |||||||||||||||||
3,115 | 2,845 | 9 | 1,630 | 1,485 | 10 | |||||||||||||||||||
Non-trading derivatives | (79 | ) | — | — | (39 | ) | (40 | ) | (3 | ) | ||||||||||||||
Total other banking operating income | 3,036 | 2,845 | 7 | 1,591 | 1,445 | 10 | ||||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Expenses | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Operating expenses | 5,994 | 5,719 | (5 | ) | 3,027 | 2,967 | (2 | ) | ||||||||||||||||
Which new Bank | — | 150 | — | — | — | — | ||||||||||||||||||
Total | 5,994 | 5,869 | (2 | ) | 3,027 | 2,967 | (2 | ) | ||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Expenses by Segment | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Banking | 4,558 | 4,380 | (4 | ) | 2,298 | 2,260 | (2 | ) | ||||||||||||||||
Funds management | 989 | 798 | (24 | ) | 530 | 459 | (15 | ) | ||||||||||||||||
Insurance | 447 | 541 | 17 | 199 | 248 | 20 | ||||||||||||||||||
5,994 | 5,719 | (5 | ) | 3,027 | 2,967 | (2 | ) | |||||||||||||||||
Which new Bank | ||||||||||||||||||||||||
Banking | — | 112 | — | — | — | — | ||||||||||||||||||
Funds management | — | 36 | — | — | — | — | ||||||||||||||||||
Insurance | — | 2 | — | — | — | — | ||||||||||||||||||
— | 150 | — | — | — | — | |||||||||||||||||||
Total | 5,994 | 5,869 | (2 | ) | 3,027 | 2,967 | (2 | ) | ||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
Expenses by Category | $M | $M | Jun 05 % | $M | $M | Dec 05 % | ||||||||||||||||||
Staff | 2,823 | 2,673 | (6 | ) | 1,437 | 1,386 | (4 | ) | ||||||||||||||||
Occupancy and equipment | 621 | 613 | (1 | ) | 311 | 310 | — | |||||||||||||||||
Information technology services | 985 | 956 | (3 | ) | 483 | 502 | 4 | |||||||||||||||||
Other expenses | 1,565 | 1,477 | (6 | ) | 796 | 769 | (4 | ) | ||||||||||||||||
Operating expenses | 5,994 | 5,719 | (5 | ) | 3,027 | 2,967 | (2 | ) | ||||||||||||||||
Which new Bank | — | 150 | — | — | — | — | ||||||||||||||||||
Total | 5,994 | 5,869 | (2 | ) | 3,027 | 2,967 | (2 | ) | ||||||||||||||||
36 Commonwealth Bank of Australia
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
$M | $M | $M | $M | |||||||||||||
Staff Expenses | ||||||||||||||||
Salaries and wages | 2,419 | 2,274 | 1,237 | 1,182 | ||||||||||||
Share based compensation | 39 | 74 | 17 | 22 | ||||||||||||
Superannuation contributions | 8 | 7 | 4 | 4 | ||||||||||||
Provisions for employee entitlements | 66 | 67 | 31 | 35 | ||||||||||||
Payroll tax | 123 | 115 | 62 | 61 | ||||||||||||
Fringe benefits tax | 34 | 32 | 17 | 17 | ||||||||||||
Other staff expenses | 134 | 104 | 69 | 65 | ||||||||||||
Comparable business | 2,823 | 2,673 | 1,437 | 1,386 | ||||||||||||
Which new Bank | — | 50 | — | — | ||||||||||||
Total staff expenses | 2,823 | 2,723 | 1,437 | 1,386 | ||||||||||||
Occupancy and Equipment Expenses | ||||||||||||||||
Operating lease rentals | 338 | 331 | 169 | 169 | ||||||||||||
Depreciation | ||||||||||||||||
Buildings | 22 | 21 | 11 | 11 | ||||||||||||
Leasehold improvements | 56 | 58 | 28 | 28 | ||||||||||||
Equipment | 64 | 63 | 31 | 33 | ||||||||||||
Operating lease assets | 9 | 8 | 5 | 4 | ||||||||||||
Repairs and maintenance | 73 | 71 | 39 | 34 | ||||||||||||
Other | 59 | 61 | 28 | 31 | ||||||||||||
Comparable business | 621 | 613 | 311 | 310 | ||||||||||||
Which new Bank | — | 13 | — | — | ||||||||||||
Total occupancy and equipment expenses | 621 | 626 | 311 | 310 | ||||||||||||
Information Technology Services | ||||||||||||||||
Projects and development | 364 | 331 | 179 | 185 | ||||||||||||
Data processing | 227 | 248 | 109 | 118 | ||||||||||||
Desktop | 137 | 150 | 61 | 76 | ||||||||||||
Communications | 201 | 204 | 99 | 102 | ||||||||||||
Amortisation of software assets | 43 | 17 | 27 | 16 | ||||||||||||
IT Equipment Depreciation | 13 | 6 | 8 | 5 | ||||||||||||
Comparable business | 985 | 956 | 483 | 502 | ||||||||||||
Which new Bank | — | 52 | — | — | ||||||||||||
Total information technology services | 985 | 1,008 | 483 | 502 | ||||||||||||
Other Expenses | ||||||||||||||||
Postage | 118 | 112 | 60 | 58 | ||||||||||||
Stationery | 98 | 108 | 47 | 51 | ||||||||||||
Fees and commissions | 636 | 614 | 322 | 314 | ||||||||||||
Advertising, marketing and loyalty | 307 | 288 | 161 | 146 | ||||||||||||
Amortisation of other intangible assets (excluding software) | 6 | 3 | 4 | 2 | ||||||||||||
Non lending losses | 116 | 103 | 64 | 52 | ||||||||||||
Other | 284 | 249 | 138 | 146 | ||||||||||||
Comparable business | 1,565 | 1,477 | 796 | 769 | ||||||||||||
Which new Bank | — | 35 | — | — | ||||||||||||
Total other expenses | 1,565 | 1,512 | 796 | 769 | ||||||||||||
Comparable business | 5,994 | 5,719 | 3,027 | 2,967 | ||||||||||||
Which new Bank | — | 150 | — | — | ||||||||||||
Total Operating Expenses | 5,994 | 5,869 | 3,027 | 2,967 | ||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
$M | $M | $M | $M | |||||||||||||
Profit from Ordinary Activities before Income Tax | ||||||||||||||||
Banking | 4,594 | 4,057 | 2,342 | 2,252 | ||||||||||||
Funds management | 643 | 508 | 324 | 319 | ||||||||||||
Insurance | 657 | 522 | 230 | 427 | ||||||||||||
Defined benefit superannuation plan expense | (35 | ) | (75 | ) | (8 | ) | (27 | ) | ||||||||
5,859 | 5,012 | 2,888 | 2,971 | |||||||||||||
Prima Facie Income Tax at 30% | ||||||||||||||||
Banking | 1,378 | 1,217 | 702 | 676 | ||||||||||||
Funds management | 193 | 153 | 97 | 96 | ||||||||||||
Insurance | �� | 197 | 157 | 69 | 128 | |||||||||||
Defined benefit superannuation plan expense | (11 | ) | (23 | ) | (3 | ) | (8 | ) | ||||||||
1,757 | 1,504 | 865 | 892 | |||||||||||||
Tax effect of expenses that are non-deductible/income non-assessable in determining taxable profit: | ||||||||||||||||
Current period | ||||||||||||||||
Taxation offsets and other dividend adjustments | (29 | ) | (48 | ) | (11 | ) | (18 | ) | ||||||||
Tax adjustment referable to policyholder income | 232 | 160 | 91 | 141 | ||||||||||||
Non assessable income – life insurance transitional fee relief | — | (30 | ) | — | — | |||||||||||
Non–assessable gains | (43 | ) | — | 2 | (45 | ) | ||||||||||
Tax losses recognised | (35 | ) | (9 | ) | (32 | ) | (3 | ) | ||||||||
Other | 3 | 25 | (1 | ) | 4 | |||||||||||
128 | 98 | 49 | 79 | |||||||||||||
Prior periods | ||||||||||||||||
Other | 15 | — | 32 | (17 | ) | |||||||||||
Total income tax expense | 1,900 | 1,602 | 946 | 954 | ||||||||||||
Income Tax Attributable to Profit from Ordinary Activities | ||||||||||||||||
Banking | 1,328 | 1,197 | 688 | 640 | ||||||||||||
Funds management | 139 | 88 | 77 | 62 | ||||||||||||
Insurance | 102 | 89 | 51 | 51 | ||||||||||||
Corporate tax | 1,569 | 1,374 | 816 | 753 | ||||||||||||
Policyholder tax | 331 | 228 | 130 | 201 | ||||||||||||
Total income tax expense | 1,900 | 1,602 | 946 | 954 | ||||||||||||
% | % | % | % | |||||||||||||
Effective Tax Rate | ||||||||||||||||
Total – corporate | 28.4 | 28.7 | 29.6 | 27.2 | ||||||||||||
Banking – corporate | 29.1 | 30.1 | 29.5 | 28.8 | ||||||||||||
Funds management – corporate | 30.8 | 21.8 | 32.0 | 29.5 | ||||||||||||
Insurance – corporate | 19.7 | 22.4 | 27.9 | 15.2 | ||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
$M | $M | $M | ||||||||||
Australia | ||||||||||||
Overdrafts | 2,672 | 2,220 | 2,564 | |||||||||
Housing loans | 144,834 | 135,990 | 129,913 | |||||||||
Credit card outstandings | 6,997 | 6,870 | 6,682 | |||||||||
Lease financing | 4,924 | 4,906 | 5,055 | |||||||||
Bills discounted | 2,779 | 3,898 | 3,399 | |||||||||
Term loans | 56,950 | 51,938 | 46,451 | |||||||||
Redeemable preference share financing | 1 | 6 | 9 | |||||||||
Other lending | 597 | 401 | 389 | |||||||||
Total Australia | 219,754 | 206,229 | 194,462 | |||||||||
Overseas | ||||||||||||
Overdrafts | 2,435 | 2,694 | 2,660 | |||||||||
Housing loans | 22,287 | 23,349 | 20,765 | |||||||||
Credit card outstandings | 428 | 478 | 406 | |||||||||
Lease financing | 139 | 124 | 195 | |||||||||
Bills discounted | 7 | — | — | |||||||||
Term loans(1) | 15,282 | 14,265 | 12,804 | |||||||||
Redeemable preference share financing | 1,194 | 894 | — | |||||||||
Other lending | 8 | 34 | 192 | |||||||||
Other securities(1) | 438 | 300 | — | |||||||||
Total overseas | 42,218 | 42,138 | 37,022 | |||||||||
Gross loans, advances and other receivables | 261,972 | 248,367 | 231,484 | |||||||||
Less: | ||||||||||||
Provisions for impairment: | ||||||||||||
Collective provision(2) | (1,046 | ) | (1,041 | ) | (1,390 | ) | ||||||
Individually assessed provisions(2) | (171 | ) | (179 | ) | (157 | ) | ||||||
Unearned income: | ||||||||||||
Term loans | (934 | ) | (921 | ) | (889 | ) | ||||||
Lease financing | (645 | ) | (620 | ) | (683 | ) | ||||||
Interest reserved(3) | — | — | (19 | ) | ||||||||
(2,796 | ) | (2,761 | ) | (3,138 | ) | |||||||
Net loans, advances and other receivables | 259,176 | 245,606 | 228,346 | |||||||||
(1) | Certain other securities have been reclassified to term loans during the period. The prior period has been restated on a consistent basis. | |
(2) | Collective provision and individually assessed provisions re-calculated under AIFRS for 30 June 2006 and 31 December 2005. | |
(3) | Interest reserved is not recognised under AIFRS from 1 July 2005. |
As at | ||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
$M | $M | $M | ||||||||||
Total Impaired Assets | ||||||||||||
Gross non–accruals | 326 | 396 | 395 | |||||||||
Less interest reserved(1) | — | — | (19 | ) | ||||||||
326 | 396 | 376 | ||||||||||
Less individually assessed provisions for impairment | (171 | ) | (179 | ) | (157 | ) | ||||||
Total net impaired assets | 155 | 217 | 219 | |||||||||
Net impaired assets by geographical segment | ||||||||||||
Australia | 146 | 214 | 218 | |||||||||
Overseas | 9 | 3 | 1 | |||||||||
Total | 155 | 217 | 219 | |||||||||
(1) | Interest and fees reserved are not recognised under AIFRS from 1 July 2005. |
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
$M | $M | $M | $M | |||||||||||||
Provisions for impairment | ||||||||||||||||
Collective provisions | ||||||||||||||||
Opening balance(1) | 1,021 | 1,393 | 1,041 | 1,021 | ||||||||||||
Charge against profit and loss | 398 | 322 | 210 | 188 | ||||||||||||
Transfer to individually assessed provisions | (440 | ) | (352 | ) | (240 | ) | (200 | ) | ||||||||
Impairment losses recovered | 127 | 81 | 70 | 57 | ||||||||||||
Adjustments for exchange rate fluctuations and other items | (7 | ) | 2 | (8 | ) | 1 | ||||||||||
1,099 | 1,446 | 1,073 | 1,067 | |||||||||||||
Impairment losses written off | (53 | ) | (56 | ) | (27 | ) | (26 | ) | ||||||||
Closing balance | 1,046 | 1,390 | 1,046 | 1,041 | ||||||||||||
Individually assessed provisions | ||||||||||||||||
Opening balance(1) | 191 | 143 | 179 | 191 | ||||||||||||
Transfer from collective provision for: | ||||||||||||||||
New and increased provisioning | 468 | 408 | 254 | 214 | ||||||||||||
Less write—back of provisions no longer required | (28 | ) | (56 | ) | (14 | ) | (14 | ) | ||||||||
Net transfer | 440 | 352 | 240 | 200 | ||||||||||||
Adjustments for exchange rate fluctuations and other items | (16 | ) | (3 | ) | (13 | ) | (3 | ) | ||||||||
Impairment losses | (444 | ) | (335 | ) | (235 | ) | (209 | ) | ||||||||
Closing balance | 171 | 157 | 171 | 179 | ||||||||||||
Total provisions for impairment | 1,217 | 1,547 | 1,217 | 1,220 | ||||||||||||
General reserve for credit losses (pre-tax equivalent) | 500 | — | 500 | 404 | ||||||||||||
Total provisions including general reserve for credit losses | 1,717 | 1,547 | 1,717 | 1,624 | ||||||||||||
(1) | The opening balance at 1 July 2005 includes the impact of adopting AASB 132 and AASB 139. |
% | % | % | % | |||||||||||||
Coverage Ratios | ||||||||||||||||
General provisions as a % of risk weighted assets | — | 0. 73 | — | — | ||||||||||||
Collective provisions as a % of a risk weighted assets | 0. 48 | — | 0. 48 | 0. 51 | ||||||||||||
Collective provision plus general reserve for credit losses (pre-tax equivalent) as a % of risk weighted assets | 0. 71 | — | 0. 71 | 0. 71 | ||||||||||||
Specific provisions for impairment as a % of gross impaired assets net of interest reserved(1) | — | 41. 8 | — | — | ||||||||||||
Individually assessed provisions for impairment as a % of gross impaired assets | 52. 5 | — | 52 .5 | 45. 2 | ||||||||||||
Total provisions for impairment as a % of gross impaired assets net of interest reserved(1) | 373. 3 | 411. 4 | 373. 3 | 308. 1 | ||||||||||||
Total provisions for impairment plus general reserve for credit losses (pre-tax equivalent) as a % of gross impaired assets | 526. 7 | — | 526. 7 | 410. 1 | ||||||||||||
(1) | Interest reserved not recognised under AIFRS. |
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
$M | $M | $M | $M | |||||||||||||
Impaired Assets | ||||||||||||||||
Total income received(1) | 11 | 9 | 7 | 4 | ||||||||||||
Interest income forgone(1) | 11 | 13 | 5 | 6 | ||||||||||||
(1) | Interest reserved is no longer recognised under AIFRS |
Movement in Impaired Asset Balances | ||||||||||||||||
Gross impaired assets at period beginning | 395 | 363 | 396 | 395 | ||||||||||||
New and increased | 745 | 769 | 380 | 365 | ||||||||||||
Balances written off | (450 | ) | (350 | ) | (241 | ) | (209 | ) | ||||||||
Returned to performing or repaid | (364 | ) | (387 | ) | (209 | ) | (155 | ) | ||||||||
Gross impaired assets at period end | 326 | 395 | 326 | 396 | ||||||||||||
Impaired Asset Ratios | ||||||||||||||||
Gross impaired assets net of interest reserved as % of risk weighted assets | 0. 15 | 0. 20 | 0. 15 | 0. 20 | ||||||||||||
Net impaired assets as % of: | ||||||||||||||||
Risk weighted assets | 0. 07 | 0. 12 | 0. 07 | 0. 11 | ||||||||||||
Total shareholders’ equity | 0. 73 | 0. 97 | 0. 73 | 1. 09 | ||||||||||||
As At | ||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
$M | $M | $M | ||||||||||
Loans Accruing but Past Due 90 Days or More (consumer segment) | ||||||||||||
Housing loans | 155 | 154 | 183 | |||||||||
Other loans | 137 | 119 | 119 | |||||||||
Total | 292 | 273 | 302 | |||||||||
Half Year Ended | ||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
$M | $M | $M | ||||||||||
Australia | ||||||||||||
Certificates of deposits | 18,185 | 17,351 | 16,041 | |||||||||
Term deposits | 43,210 | 42,959 | 41,582 | |||||||||
On demand and short-time deposits | 81,547 | 77,902 | 75,407 | |||||||||
Deposits not bearing interest | 5,872 | 6,149 | 5,823 | |||||||||
Securities sold under agreements to repurchase and short sales | 1,380 | 1,092 | 2,258 | |||||||||
Total Australia | 150,194 | 145,453 | 141,111 | |||||||||
Overseas | ||||||||||||
Certificates of deposits | 959 | 935 | 3,105 | |||||||||
Term deposits | 13,611 | 13,992 | 13,617 | |||||||||
On demand and short-term deposits | 7,088 | 7,024 | 8,633 | |||||||||
Deposits not bearing interest | 1,166 | 1,222 | 1,155 | |||||||||
Securities sold under agreements to repurchase and short sales | 209 | 97 | 405 | |||||||||
Total overseas | 23,033 | 23,270 | 26,915 | |||||||||
Total deposits and other public borrowings | 173,227 | 168,723 | 168,026 | |||||||||
Full Year Ended 30 June 2006 | ||||||||||||||||
Primary Segment | Funds | |||||||||||||||
Business Segments | Banking | Management | Insurance | Total | ||||||||||||
Income Statement | $M | $M | $M | $M | ||||||||||||
Interest income | 19,758 | — | — | 19,758 | ||||||||||||
Premium and related revenue | — | — | 1,052 | 1,052 | ||||||||||||
Other income | 3,036 | 3,687 | 1,031 | 7,754 | ||||||||||||
Total revenue | 22,794 | 3,687 | 2,083 | 28,564 | ||||||||||||
Interest expense | 13,244 | — | — | 13,244 | ||||||||||||
Segment result before income tax | 4,559 | 643 | 657 | 5,859 | ||||||||||||
Income tax expense | (1,328 | ) | (331 | ) | (241 | ) | (1,900 | ) | ||||||||
Segment result after income tax | 3,231 | 312 | 416 | 3,959 | ||||||||||||
Minority interests | (28 | ) | (3 | ) | — | (31 | ) | |||||||||
Segment result after income tax and minority interests | 3,203 | 309 | 416 | 3,928 | ||||||||||||
Net profit attributable to shareholders of the Bank | 3,203 | 309 | 416 | 3,928 | ||||||||||||
Non–Cash Expenses | ||||||||||||||||
Intangible asset amortisation | 49 | — | — | 49 | ||||||||||||
Bad debts expense | 398 | — | — | 398 | ||||||||||||
Depreciation | 157 | 2 | 5 | 164 | ||||||||||||
Defined benefit superannuation plan expense | 35 | — | — | 35 | ||||||||||||
Other | 65 | 1 | — | 66 | ||||||||||||
Balance Sheet | ||||||||||||||||
Total assets | 340,254 | 19,201 | 9,648 | 369,103 | ||||||||||||
Acquisition of property, plant & equipment, intangibles and other non—current assets | 510 | 94 | 8 | 612 | ||||||||||||
Associate investments | 106 | 52 | 32 | 190 | ||||||||||||
Total liabilities | 324,185 | 16,423 | 7,152 | 347,760 | ||||||||||||
Full Year Ended 30 June 2005 | ||||||||||||||||
Primary Segment | Funds | |||||||||||||||
Business Segments | Banking | Management | Insurance | Total | ||||||||||||
Income Statement | $M | $M | $M | $M | ||||||||||||
Interest income | 16,781 | — | — | 16,781 | ||||||||||||
Premium and related revenue | — | — | 1,132 | 1,132 | ||||||||||||
Other income | 2,845 | 3,203 | 1,186 | 7,234 | ||||||||||||
Total revenue | 19,626 | 3,203 | 2,318 | 25,147 | ||||||||||||
Interest expense | 10,755 | — | — | 10,755 | ||||||||||||
Segment result before income tax | 3,982 | 508 | 522 | 5,012 | ||||||||||||
Income tax expense | (1,197 | ) | (192 | ) | (213 | ) | (1,602 | ) | ||||||||
Segment result after income tax | 2,785 | 316 | 309 | 3,410 | ||||||||||||
Minority interest | (3 | ) | (7 | ) | — | (10 | ) | |||||||||
Segment result after income tax and minority interests | 2,782 | 309 | 309 | 3,400 | ||||||||||||
Net profit attributable to shareholders of the Bank | 2,782 | 309 | 309 | 3,400 | ||||||||||||
Non–Cash Expenses | ||||||||||||||||
Intangible asset amortisation | 20 | — | — | 20 | ||||||||||||
Bad debts expense | 322 | — | — | 322 | ||||||||||||
Depreciation | 135 | 8 | 13 | 156 | ||||||||||||
Defined benefit superannuation plan expense | 75 | — | — | 75 | ||||||||||||
Other | 84 | 27 | — | 111 | ||||||||||||
Balance sheet | ||||||||||||||||
Total assets | 304,620 | 16,191 | 16,593 | 337,404 | ||||||||||||
Acquisition of property, plant & equipment, intangibles and other non—current assets | 303 | 8 | 39 | 350 | ||||||||||||
Associate investments | 19 | 1 | 32 | 52 | ||||||||||||
Total liabilities | 287,549 | 16,832 | 10,380 | 314,761 | ||||||||||||
Secondary Segment | Full Year Ended | |||||||||||||||
Business Segments | 30/06/06 | 30/06/05 | ||||||||||||||
Income Statement | $M | % | $M | % | ||||||||||||
Revenue | ||||||||||||||||
Australia | 22,802 | 79. 8 | 20,003 | 79. 5 | ||||||||||||
New Zealand | 4,021 | 14. 1 | 3,361 | 13. 4 | ||||||||||||
Other countries(1) | 1,741 | 6. 1 | 1,783 | 7. 1 | ||||||||||||
28,564 | 100. 0 | 25,147 | 100. 0 | |||||||||||||
Net Profit Attributable to Shareholders of the Bank | ||||||||||||||||
Australia | 3,200 | 81. 5 | 2,778 | 81. 7 | ||||||||||||
New Zealand | 387 | 9. 8 | 363 | 10. 7 | ||||||||||||
Other countries(1) | 341 | 8. 7 | 259 | 7. 6 | ||||||||||||
3,928 | 100. 0 | 3,400 | 100. 0 | |||||||||||||
Assets | ||||||||||||||||
Australia | 304,831 | 82. 6 | 280,255 | 83. 0 | ||||||||||||
New Zealand | 43,318 | 11. 7 | 41,383 | 12. 3 | ||||||||||||
Other countries(1) | 20,954 | 5. 7 | 15,766 | 4. 7 | ||||||||||||
369,103 | 100. 0 | 337,404 | 100. 0 | |||||||||||||
Acquisition of Property, Plant & Equipment and Intangibles and Other Non—current Assets | ||||||||||||||||
Australia | 564 | 92. 2 | 303 | 86. 6 | ||||||||||||
New Zealand | 34 | 5. 5 | 37 | 10. 6 | ||||||||||||
Other countries(1) | 14 | 2. 3 | 10 | 2. 8 | ||||||||||||
612 | 100. 0 | 350 | 100. 0 | |||||||||||||
(1) | Other countries were: United Kingdom, United States of America, Japan, Singapore, Malta, Hong Kong, Grand Cayman, Fiji, Indonesia, China and Vietnam. |
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Industry On Balance Sheet Exposure | % | % | % | |||||||||
Accommodation, cafes and restaurants | 1. 0 | 1. 0 | 1. 2 | |||||||||
Agriculture, forestry and fishing | 2. 8 | 3. 0 | 3. 2 | |||||||||
Communication services | 0. 4 | 0. 3 | 0. 3 | |||||||||
Construction | 1. 4 | 1. 4 | 1. 4 | |||||||||
Cultural and recreational services | 0. 6 | 0. 6 | 0. 7 | |||||||||
Electricity, gas and water supply | 1. 6 | 1. 9 | 1. 7 | |||||||||
Finance and insurance | 12. 2 | 11. 4 | 11. 6 | |||||||||
Government administration and defence | 1. 2 | 1. 4 | 1. 6 | |||||||||
Health and community services | 1. 5 | 1. 6 | 1. 8 | |||||||||
Manufacturing | 3. 1 | 2. 9 | 3. 2 | |||||||||
Mining | 0. 8 | 0. 8 | 0. 7 | |||||||||
Personal and other services | 0. 6 | 0. 5 | 0. 5 | |||||||||
Property and business services | 8. 3 | 8. 1 | 8. 4 | |||||||||
Retail trade | 1. 7 | 1. 8 | 2. 0 | |||||||||
Transport and storage | 2. 5 | 2. 0 | 2. 1 | |||||||||
Wholesale trade | 1. 4 | 1. 4 | 1. 3 | |||||||||
Consumer | 58. 9 | 59. 9 | 58. 3 | |||||||||
100.0 | 100. 0 | 100. 0 | ||||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Regional Credit Exposure | % | % | % | |||||||||
Australia | 82. 6 | 82. 9 | 83. 8 | |||||||||
New Zealand | 13. 6 | 13. 5 | 11. 7 | |||||||||
Europe | 1. 8 | 2. 2 | 3. 1 | |||||||||
Americas | 1. 2 | 0. 7 | 0. 7 | |||||||||
Asia | 0. 6 | 0. 6 | 0. 6 | |||||||||
Other | 0. 2 | 0. 1 | 0. 1 | |||||||||
100. 0 | 100. 0 | 100. 0 | ||||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Commercial Portfolio Quality | % | % | % | |||||||||
AAA/AA | 31 | 29 | 32 | |||||||||
A | 20 | 22 | 18 | |||||||||
BBB | 17 | 16 | 16 | |||||||||
Other | 32 | 33 | 34 | |||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Interest Rate Risk | % | % | % | |||||||||
(expressed as a % of expected next 12 months’ earnings) | ||||||||||||
Average monthly exposure | 1. 1 | 1. 2 | 1. 1 | |||||||||
High month exposure | 2. 1 | 1. 8 | 1. 5 | |||||||||
Low month exposure | 0. 2 | 0. 2 | 0. 5 | |||||||||
Average VaR | ||||||||||||
Average VaR | During | Average VaR | ||||||||||
During | December | During | ||||||||||
June 2006 | 2005 | June 2005 | ||||||||||
Half Year | Half Year | Half Year | ||||||||||
VaR Expressed based on 97. 5% confidence | $M | $M | $M | |||||||||
Group | ||||||||||||
Interest rate risk | 3. 16 | 2. 65 | 3. 44 | |||||||||
Exchange rate risk | 0. 65 | 0. 53 | 0. 26 | |||||||||
Implied volatility risk | 0. 61 | 0. 61 | 0. 49 | |||||||||
Equities risk | 0. 10 | 0. 08 | 0. 04 | |||||||||
Commodities risk | 1. 20 | 0. 36 | 0. 18 | |||||||||
Prepayment risk | 0. 33 | 0. 28 | 0. 38 | |||||||||
ASB Bank | 0. 30 | 0. 36 | 0. 22 | |||||||||
Diversification benefit | (2. 26 | ) | (1. 40 | ) | (0. 98 | ) | ||||||
Total general market risk | 4. 09 | 3. 47 | 4. 03 | |||||||||
Credit spread risk | 5. 97 | 5. 74 | 4. 85 | |||||||||
Total | 10. 06 | 9. 21 | 8. 88 | |||||||||
Average VaR | ||||||||||||
Average VaR | During | Average VaR | ||||||||||
During | December | During | ||||||||||
June 2006 | 2005 | June 2005 | ||||||||||
Half Year | Half Year | Half Year | ||||||||||
VaR Expressed based on 99. 0% confidence | $M | $M | $M | |||||||||
Group | ||||||||||||
Interest rate risk | 4. 01 | 3. 36 | 4. 78 | |||||||||
Exchange rate risk | 0. 77 | 0. 62 | 0. 31 | |||||||||
Implied volatility risk | 0. 80 | 0. 95 | 0. 73 | |||||||||
Equities risk | 0. 13 | 0. 09 | 0. 05 | |||||||||
Commodities risk | 1. 61 | 0. 45 | 0. 21 | |||||||||
Prepayment risk | 0. 33 | 0. 28 | 0. 38 | |||||||||
ASB Bank | 0. 40 | 0. 48 | 0. 32 | |||||||||
Diversification benefit | (3. 04 | ) | (1. 93 | ) | (1. 28 | ) | ||||||
Total general market risk | 5. 01 | 4. 30 | 5. 50 | |||||||||
Credit spread risk | 7. 09 | 6. 81 | 5. 75 | |||||||||
Total | 12. 10 | 11. 11 | 11. 25 | |||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Risk-Weighted Capital Ratios | % | % | % | |||||||||
Tier One | 7. 56 | 7. 54 | 7. 46 | |||||||||
Tier Two | 3. 10 | 3. 28 | 3. 21 | |||||||||
Less deductions | (1. 00 | ) | (1. 01 | ) | (0. 92 | ) | ||||||
Total | 9. 66 | 9. 81 | 9. 75 | |||||||||
Adjusted Common Equity(1) | 4. 50 | 5. 00 | 4. 91 | |||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Regulatory Capital | $M | $M | $M | |||||||||
Tier One capital | ||||||||||||
Shareholders’ equity | 21,343 | 19,850 | 26,060 | |||||||||
Reverse effect to shareholder’s equity of AIFRS transition(2) | 7,183 | 7,183 | ||||||||||
Reverse effect AIFRS during the period to 30 June 2006:(2) | ||||||||||||
Purchase/(sale) and vesting of treasury shares | 10 | (18 | ) | — | ||||||||
Actuarial gains and losses from defined benefits superannuation plan | (387 | ) | (68 | ) | — | |||||||
Realised gains and dividend income on treasury shares held with in the Bank’s life insurance statutory funds | (85 | ) | (25 | ) | — | |||||||
Cash flow hedge reserve | (20 | ) | (23 | ) | — | |||||||
Employee compensation reserve | (11 | ) | 5 | — | ||||||||
General reserve for credit loss | (92 | ) | (25 | ) | — | |||||||
Available-for-sale investments | (9 | ) | 13 | — | ||||||||
Defined benefit superannuation plan expense | 25 | 19 | — | |||||||||
Treasury share valuation adjustment | 100 | 43 | — | |||||||||
Preference share capital | (687 | ) | — | — | ||||||||
Issue of hybrid instruments | 1,147 | — | — | |||||||||
Other | (6 | ) | 31 | — | ||||||||
Adjusted shareholders’ equity per APRA’s transitional arrangements | 28,511 | 26,985 | 26,060 | |||||||||
Eligible loan capital | 281 | 317 | 304 | |||||||||
Estimated reinvestment under Dividend Reinvestment Plan(3) | 303 | 221 | 272 | |||||||||
Foreign currency translation reserve related to non-consolidated subsidiaries | 160 | 160 | 211 | |||||||||
Deduct: | ||||||||||||
Asset revaluation reserve(4) | (131 | ) | (117 | ) | (92 | ) | ||||||
Expected dividend | (1,668 | ) | (1,211 | ) | (1,434 | ) | ||||||
Goodwill(5) | (4,416 | ) | (4,392 | ) | (4,394 | ) | ||||||
Intangible component of investment in non—consolidated subsidiaries(6) | (5,397 | ) | (5,397 | ) | (5,397 | ) | ||||||
Minority interest in entities controlled by non—consolidated subsidiaries | — | — | (111 | ) | ||||||||
Minority interest in insurance statutory funds and other funds | (1,158 | ) | (1,158 | ) | (1,158 | ) | ||||||
Capitalised expenses | (122 | ) | (107 | ) | (107 | ) | ||||||
Other | (9 | ) | (11 | ) | (13 | ) | ||||||
Total Tier One capital | 16,354 | 15,290 | 14,141 | |||||||||
Tier Two capital | ||||||||||||
Collective provision for impairment losses(7) | 1,046 | 1,041 | — | |||||||||
General reserve for credit loss (pre-tax equivalent)(7) | 500 | 404 | — | |||||||||
General provision for bad debts | 1,546 | 1,445 | 1,389 | |||||||||
FITB related to general provision for bad debts | (464 | ) | (434 | ) | (414 | ) | ||||||
Asset revaluation reserve(4) | 131 | 117 | 92 | |||||||||
Upper Tier Two note and bond issues | 235 | 232 | 237 | |||||||||
Lower Tier Two note and bond issues(8) (9) | 5,335 | 5,349 | 4,783 | |||||||||
Other | (58 | ) | (65 | ) | — | |||||||
Total Tier Two capital | 6,725 | 6,644 | 6,087 | |||||||||
Total Capital | 23,079 | 21,934 | 20,228 | |||||||||
(1) | Adjusted Common Equity (“ACE”) is one measure considered by Standard & Poor’s in evaluating the Bank’s credit rating. The ACE ratio has been calculated in accordance with Standard & Poor’s methodology at 30 June 2006. | |
(2) | APRA requires regulatory capital to continue to be calculated in accordance with AGAAP accounting principles until 1 July 2006. As such, all material changes to capital resulting from the Bank adopting AIFRS accounting standards on 1 July 2005 have been reversed from regulatory capital. | |
(3) | Based on reinvestment experience related to the Bank’s Dividend Reinvestment Plan. | |
(4) | The Bank agreed with APRA to adopt AIFRS on 1 July 2005 for the reporting of the Asset Revaluation Reserve. | |
(5) | Consistent with APRA requirements goodwill is reported on an AGAAP basis. | |
(6) | Per APRA’s transitional arrangements, it was agreed to deduct the value as at 30 June 2005 of the intangible component of the carrying value of the life insurance and funds management business from Tier 1 capital, until 1 July 2006. | |
(7) | In line with current APRA requirements the Bank has established a General Reserve for Credit Loss. | |
(8) | APRA requires these Lower Tier Two note and bond issues to be included as if they were un—hedged. | |
(9) | For regulatory capital purposes, Lower Tier Two note and bond issues are amortised by 20% of the original amount during each of the last five years to maturity. |
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Regulatory Capital | $M | $M | $M | |||||||||
Total capital | 23,079 | 21,934 | 20,228 | |||||||||
Deduct: | ||||||||||||
Investment in non–consolidated subsidiaries (net of intangible component deducted from Tier One capital): | ||||||||||||
Shareholders’ net tangible assets in life and funds management businesses | (1,902 | ) | (1,517 | ) | (2,513 | ) | ||||||
Reverse effect of transition to AIFRS(1) | (592 | ) | (592 | ) | — | |||||||
Capital in other non-consolidated subsidiaries | (256 | ) | (321 | ) | (348 | ) | ||||||
Value of acquired inforce business(2) | (1,339 | ) | (1,339 | ) | (1,152 | ) | ||||||
Less: non-recourse debt | 2,077 | 1,851 | 2,292 | |||||||||
(2,012 | ) | (1,918 | ) | (1,721 | ) | |||||||
Other deductions | (151 | ) | (130 | ) | (28 | ) | ||||||
Capital base | 20,916 | 19,886 | 18,479 | |||||||||
(1) | APRA requires regulatory capital to continue to be calculated in accordance with AGAAP accounting principles until 1 July 2006. As such, all material changes to capital resulting from the Bank adopting AIFRS accounting standards on 1 July 2005 have been reversed from regulatory capital. | |
(2) | Per APRA’s transitional arrangements, it was agreed to deduct the value as at 30 June 2005 of acquired inforce business from Total Capital, until 1 July 2006. However, values as at 30 June 2005 have been adjusted to reflect the acquisition of the Gandel Group interests in Colonial First State Property Retail Trust and Gandel Retail Management Trust. |
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Adjusted Common Equity(1) | $M | $M | $M | |||||||||
Tier One capital | 16,354 | 15,290 | 14,141 | |||||||||
Deduct: | ||||||||||||
Eligible loan capital | (281 | ) | (317 | ) | (304 | ) | ||||||
Preference share capital | — | (687 | ) | (687 | ) | |||||||
Other equity instruments | (3,659 | ) | (1,573 | ) | (1,573 | ) | ||||||
Minority interest (net of minority interest component deducted from Tier One capital) | (508 | ) | (523 | ) | (520 | ) | ||||||
Investment in non–consolidated subsidiaries (net of intangible component deducted from Tier One capital) | (2,012 | ) | (1,918 | ) | (1,721 | ) | ||||||
Other deductions | (151 | ) | (130 | ) | (28 | ) | ||||||
Total Adjusted Common Equity | 9,743 | 10,142 | 9,308 | |||||||||
(1) | Adjusted Common Equity (“ACE”) is one measure considered by Standard & Poor’s in evaluating the Bank’s credit rating. The ACE ratio has been calculated in accordance with Standard & Poor’s methodology at 30 June 2006. |
Risk | ||||||||||||||||||||||||||||
Face Value | Weights | Risk-Weighted Balance | ||||||||||||||||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | 30/06/06 | 31/12/05 | 30/06/05 | |||||||||||||||||||||||
$M | $M | $M | % | $M | $M | $M | ||||||||||||||||||||||
Risk-Weighted Assets | ||||||||||||||||||||||||||||
On balance sheet assets | ||||||||||||||||||||||||||||
Cash, claims on Reserve Bank, short term claims on Australian Commonwealth and State Government and Territories, and other zero–weighted assets | 23,301 | 25,677 | 27,447 | 0 | — | — | — | |||||||||||||||||||||
Claims on OECD banks and local governments | 16,742 | 18,771 | 14,754 | 20 | 3,348 | 3,754 | 2,951 | |||||||||||||||||||||
Advances secured by residential property | 157,962 | 154,274 | 143,746 | 50 | 78,981 | 77,137 | 71,873 | |||||||||||||||||||||
All other assets | 110,971 | 99,794 | 92,510 | 100 | 110,971 | 99,794 | 92,510 | |||||||||||||||||||||
Total on balance sheet assets – credit risk | 308,976 | 298,516 | 278,457 | 193,300 | 180,685 | 167,334 | ||||||||||||||||||||||
Total off balance sheet exposures – credit risk | 19,691 | 18,626 | 19,371 | |||||||||||||||||||||||||
Risk-weighted assets – market risk | 3,447 | 3,356 | 2,854 | |||||||||||||||||||||||||
Total risk-weighted assets | 216,438 | 202,667 | 189,559 | |||||||||||||||||||||||||
• | Excess of Market Value Over Net Assets (“EMVONA”) $1,339 million; |
• | Software capitalised expenses $229 million; and |
• | Defined benefit superannuation plan deficit $45 million. |
• | Issue of $262 million and $219 million shares in October 2005 and April 2006 respectively to satisfy the Dividend Reinvestment Plan (“DRP”) in respect of the final dividend for 2004/05 and interim dividend for 2005/06; |
• | In accordance with APRA guidelines, the estimated issue of $303 million shares to satisfy the DRP in respect of the final dividend for 2005/06; |
• | Issue of US$700 million Tier 1 hybrid in March 2006; |
• | Redemption of $700 million PERLS ($687 million net of issue costs) in April 2006; |
• | Issue of $1,166 million PERLS III ($1,147 million net of issue costs) in April 2006; and |
• | Completion of $500 million on-market share buyback. |
• | Issue of the equivalent of $840 million Lower Tier Two capital; |
• | In accordance with APRA guidelines, the reduction in Tier Two note and bond issues of $278 million due to amortisation; |
• | The call and maturity of the equivalent of $78 million of Tier Two note and bond issues; and |
• | Increase in the value of Tier Two note and bond issues of $66 million resulting from changes in foreign exchange movements (whilst these notes are hedged, the unhedged value is included in the calculation of regulatory capital in accordance with APRA regulations). |
• | An increase in deductions due to the Banks acquisition of a 19.9% interest in Hangzhou City Commercial Bank for $102 million; |
• | A deduction due to a $291 million increase in net tangible assets arising from the retention of profits in the insurance and funds management business; and |
• | A decrease in deductions due to the $145 million profit realised on the sale of CMG Asia which was repatriated to the Bank. The balance of the proceeds, $463 million, was used to repay part of the non-recourse debt funding in the Bank’s life and funds management business. |
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
Ordinary Share Capital | $M | $M | $M | $M | ||||||||||||
Opening balance (excluding treasury shares deduction) | 13,871 | 13,359 | 14,168 | 13,871 | ||||||||||||
Dividend reinvestment plan: Final Dividend prior year | 262 | 246 | — | 262 | ||||||||||||
Dividend reinvestment plan: Interim Dividend | 219 | 200 | 219 | — | ||||||||||||
Share buyback | (500 | ) | — | (499 | ) | (1 | ) | |||||||||
Exercise of executive options | 50 | 67 | 14 | 36 | ||||||||||||
Issue costs | (2 | ) | (1 | ) | (2 | ) | — | |||||||||
Closing balance (excluding Treasury Shares deduction) | 13,900 | 13,871 | 13,900 | 14,168 | ||||||||||||
Less Treasury Shares | (395 | ) | (385 | ) | (395 | ) | (367 | ) | ||||||||
Closing Balance | 13,505 | 13,486 | 13,505 | 13,801 | ||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
Shares on Issue | Number | Number | Number | Number | ||||||||||||
Opening balance (excluding treasury share deduction) | 1,280,276,172 | 1,264,006,062 | 1,288,562,729 | 1,280,276,172 | ||||||||||||
Dividend reinvestment plan issue: | ||||||||||||||||
2004/2005 Final dividend fully paid ordinary shares at $37.19 | 7,032,857 | — | — | 7,032,857 | ||||||||||||
2005/2006 Interim dividend fully paid ordinary shares at $43.89 | 4,979,668 | — | 4,979,668 | — | ||||||||||||
2003/2004 Final dividend fully paid ordinary shares at $30.14 | — | 8,172,546 | — | — | ||||||||||||
2004/2005 Interim dividend fully paid ordinary shares at $35.90 | — | 5,581,364 | — | — | ||||||||||||
Share buy back | (11,139,988 | ) | — | (11,114,988 | ) | �� | (25,000 | ) | ||||||||
Exercise under executive option plan | 1,756,200 | 2,516,200 | 477,500 | 1,278,700 | ||||||||||||
Closing balance (excluding Treasury Shares deduction) | 1,282,904,909 | 1,280,276,172 | 1,282,904,909 | 1,288,562,729 | ||||||||||||
Less Treasury Shares | (11,085,258 | ) | (13,511,769 | ) | (11,085,258 | ) | (10,767,501 | ) | ||||||||
Closing balance | 1,271,819,651 | 1,266,764,403 | 1,271,819,651 | 1,277,795,228 | ||||||||||||
• | Current and expected rates of business growth and the mix of business; |
• | Capital needs to support economic, regulatory and credit ratings requirements; |
• | The rate of return on assets; |
• | Investments and/or divestments to support business development; and |
• | The regulatory capital requirements around the maintenance of a general reserve for credit loss. |
• | As declared in the 31 December 2005 Profit Announcement, a fully franked interim dividend of 94 cents per share amounting to $1,211 million was paid on 5 April 2006. The payment comprised cash disbursements of $992 million with $219 million being reinvested by participants through the Dividend Reinvestment Plan. |
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
Components of Policy Liabilities(1) | $M | $M | $M | |||||||||
Future policy benefits(2) | 23,916 | 24,861 | 27,790 | |||||||||
Future bonuses | 1,128 | 1,106 | 1,385 | |||||||||
Future expenses | 1,844 | 1,851 | 1,829 | |||||||||
Future profit margins | 1,388 | 1,224 | 1,795 | |||||||||
Future charges for acquisition expenses | (434 | ) | (450 | ) | (540 | ) | ||||||
Balance of future premiums | (5,706 | ) | (5,604 | ) | (7,660 | ) | ||||||
Provisions for bonuses not allocated to participating policyholders | 89 | 67 | 95 | |||||||||
Total policy liabilities | 22,225 | 23,055 | 24,694 | |||||||||
(1) | Includes both investment and insurance business. | |
(2) | Including bonuses credited to policyholders in prior years. |
Product Type | Method | Profit Carrier | ||
Individual | ||||
Conventional | Projection | Bonuses or expected claim payments | ||
Investment account | Projection | Bonuses or funds under management | ||
Lump sum risk | Projection | Premiums/claims | ||
Income stream risk | Projection | Expected claim payments | ||
Immediate annuities | Projection | Annuity payments | ||
Group | ||||
Investment account | Projection | Bonuses or funds under management | ||
Lump sum risk | Accumulation | Not applicable | ||
Income stream risk | Projection | Expected claim payments | ||
June 2006 | December 2005 | June 2005 | ||||||||||
Class of Business – Australia(1) | Rate Range % | Rate Range % | Rate Range % | |||||||||
Traditional – ordinary business (after tax) | 6. 00 – 6. 75 | 5. 59 – 6. 34 | 5. 52 – 6. 26 | |||||||||
Traditional – superannuation business (after tax) | 7. 33 – 8. 26 | 6. 82 – 7. 76 | 6. 74 – 7. 67 | |||||||||
Annuity business (after tax) | 5. 79 – 6. 30 | 5. 61 – 5. 88 | 5. 71 – 6. 49 | |||||||||
Term insurance – ordinary business (before tax) | 5. 58 – 5. 81 | 5. 02 – 5. 32 | 5. 11 – 5. 50 | |||||||||
Term insurance – superannuation business (before tax) | 5. 58 – 5. 81 | 5. 02 – 5. 32 | 5. 11 – 5. 50 | |||||||||
Income Protection business (before tax) | 5. 58 – 5. 81 | 5. 02 – 5. 32 | 5.11 | |||||||||
Investment account – ordinary business (after tax) | 4.21 | 3.80 | 3.74 | |||||||||
Investment account – superannuation business (after tax) | 5.12 | 4.63 | 4.55 | |||||||||
Investment account – exempt (after tax) | 5.98 | 5.40 | 5.31 | |||||||||
(1) | For New Zealand, investment earning rates assumed were 3.9% to 5.6% net of tax. |
As At | ||||||||||||
30/06/06 | 31/12/05 | 30/06/05 | ||||||||||
$M | $M | $M | ||||||||||
Total Intangible Assets | ||||||||||||
Goodwill | 7,200 | 7,214 | 7,214 | |||||||||
Computer software costs | 229 | 188 | 182 | |||||||||
Other | 380 | 338 | 260 | |||||||||
Total | 7,809 | 7,740 | 7,656 | |||||||||
Goodwill | ||||||||||||
Purchased goodwill – Colonial | 6,705 | 6,705 | 6,705 | |||||||||
Purchased goodwill – other | 495 | 509 | 509 | |||||||||
Total goodwill | 7,200 | 7,214 | 7,214 | |||||||||
Computer Software Costs | ||||||||||||
Cost | 290 | 228 | 206 | |||||||||
Accumulated amortisation | (61 | ) | (40 | ) | (24 | ) | ||||||
Total computer software costs | 229 | 188 | 182 | |||||||||
Other | ||||||||||||
Cost | 393 | 347 | 267 | |||||||||
Accumulated amortisation | (13 | ) | (9 | ) | (7 | ) | ||||||
Total other | 380 | 338 | 260 | |||||||||
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
$M | $M | $M | $M | |||||||||||||
Goodwill (reconciliation) | ||||||||||||||||
Opening balance | 7,214 | 7,184 | 7,214 | 7,214 | ||||||||||||
Additions | 7 | 30 | 7 | — | ||||||||||||
Impairment | (21 | ) | — | (21 | ) | — | ||||||||||
Closing balance | 7,200 | 7,214 | 7,200 | 7,214 | ||||||||||||
Computer Software Costs (reconciliation) | ||||||||||||||||
Opening balance | 182 | 107 | 188 | 182 | ||||||||||||
Additions: | ||||||||||||||||
From internal development | 90 | 92 | 68 | 22 | ||||||||||||
Amortisation | (43 | ) | (17 | ) | (27 | ) | (16 | ) | ||||||||
Closing balance | 229 | 182 | 229 | 188 | ||||||||||||
Other (reconciliation) | ||||||||||||||||
Opening balance | 260 | 250 | 338 | 260 | ||||||||||||
Additions: | ||||||||||||||||
From acquisitions | 126 | 13 | 46 | 80 | ||||||||||||
Amortisation | (6 | ) | (3 | ) | (4 | ) | (2 | ) | ||||||||
Closing balance | 380 | 260 | 380 | 338 | ||||||||||||
Full Year Ended | ||||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 30/06/05 | |||||||||||||
Income Statement(1) | NZDM | NZDM | $M | $M | ||||||||||||
Interest income | 3,210 | 2,682 | 2,861 | 2,476 | ||||||||||||
Interest expense | 2,406 | 1,906 | 2,144 | 1,759 | ||||||||||||
Net interest earnings | 804 | 776 | 717 | 717 | ||||||||||||
Other income | 344 | 268 | 307 | 247 | ||||||||||||
Total operating income | 1,148 | 1,044 | 1,024 | 964 | ||||||||||||
Impairment losses on advances | 19 | 16 | 17 | 15 | ||||||||||||
Total operating income after debt provisions expense | 1,129 | 1,028 | 1,007 | 949 | ||||||||||||
Total operating expense | 495 | 470 | 442 | 434 | ||||||||||||
Salaries and other staff expense | 276 | 258 | 246 | 238 | ||||||||||||
Building occupancy and equipment expense | 85 | 80 | 76 | 74 | ||||||||||||
Information technology expense | 50 | 52 | 45 | 48 | ||||||||||||
Other expenses | 84 | 80 | 75 | 74 | ||||||||||||
Net surplus before taxation | 634 | 558 | 565 | 515 | ||||||||||||
Taxation | 194 | 179 | 173 | 165 | ||||||||||||
Net surplus after taxation | 440 | 379 | 392 | 350 | ||||||||||||
As at | ||||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 30/06/05 | |||||||||||||
Balance Sheet(2) | NZDM | NZDM | $M | $M | ||||||||||||
Assets | ||||||||||||||||
Cash and liquid assets | 17 | 53 | 14 | 49 | ||||||||||||
Due from other banks | 1,728 | 521 | 1,424 | 478 | ||||||||||||
Money market advances | 966 | — | 796 | — | ||||||||||||
Securities at fair value through Income Statement | 3,021 | — | 2,489 | — | ||||||||||||
Derivative assets | 511 | — | 421 | — | ||||||||||||
Investment securities | — | 399 | — | 366 | ||||||||||||
Other securities | — | 2,497 | — | 2,291 | ||||||||||||
Advances to customers | 37,989 | — | 31,304 | — | ||||||||||||
Advances | — | 34,978 | — | 32,089 | ||||||||||||
General provisions for bad debts | — | (123 | ) | — | (113 | ) | ||||||||||
Property, plant and equipment | 152 | 149 | 125 | 137 | ||||||||||||
Intangible assets | 20 | 15 | 16 | 14 | ||||||||||||
Other assets | 164 | 293 | 135 | 269 | ||||||||||||
Deferred taxation benefit | — | 14 | — | 13 | ||||||||||||
Total assets | 44,568 | 38,796 | 36,724 | 35,593 | ||||||||||||
Total interest earning and discount bearing assets | 43,682 | 38,395 | 35,994 | 35,225 | ||||||||||||
Liabilities | ||||||||||||||||
Money and market deposits | 14,390 | — | 11,857 | — | ||||||||||||
Derivative liabilities | 241 | — | 199 | — | ||||||||||||
Deposits from customers | 21,145 | — | 17,423 | — | ||||||||||||
Deposits | — | 31,959 | — | 29,320 | ||||||||||||
Due to other banks | 5,531 | 4,091 | 4,558 | 3,753 | ||||||||||||
Other liabilities | 361 | 463 | 297 | 425 | ||||||||||||
Deferred taxation liabilities | 13 | — | 11 | — | ||||||||||||
Provision for taxation | 15 | 14 | 12 | 13 | ||||||||||||
Subordinated debt | 183 | — | 151 | — | ||||||||||||
Total liabilities | 41,879 | 36,527 | 34,508 | 33,511 | ||||||||||||
Shareholder Equity | ||||||||||||||||
Contributed capital – ordinary shareholder | 1,013 | 323 | 835 | 296 | ||||||||||||
Asset revaluation reserve | 23 | 18 | 19 | 17 | ||||||||||||
Cash flow hedge reserves | 50 | — | 41 | — | ||||||||||||
Accumulated surplus | 1,053 | 1,378 | 868 | 1,264 | ||||||||||||
Ordinary shareholders’ equity | 2,139 | 1,719 | 1,763 | 1,577 | ||||||||||||
Contributed capital – perpetual preference shareholders | 550 | 550 | 453 | 505 | ||||||||||||
Total shareholders’ equity | 2,689 | 2,269 | 2,216 | 2,082 | ||||||||||||
Total liabilities and shareholders’ equity | 44,568 | 38,796 | 36,724 | 35,593 | ||||||||||||
Total interest and discount bearing liabilities | 39,852 | 34,802 | 32,838 | 31,928 | ||||||||||||
(1) | Income Statement has been translated at AUD 1.00= NZD 1.122 for the year ended 30 June 2006 (AUD 1.00= NZD 1.083 for year ended 30 June 2005). | |
(2) | Refer to appendix 23 for rates at which balance sheet has been translated. |
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
$M | $M | $M | $M | |||||||||||||
Insurance income | 42 | 128 | — | 42 | ||||||||||||
Total income | 42 | 128 | — | 42 | ||||||||||||
Operating expenses | 33 | 125 | — | 33 | ||||||||||||
Total expenses | 33 | 125 | — | 33 | ||||||||||||
Operating performance | 9 | 3 | — | 9 | ||||||||||||
Shareholder investment returns – pre tax | 1 | 50 | — | 1 | ||||||||||||
Shareholder operating profit before tax | 10 | 53 | — | 10 | ||||||||||||
Operating profit after tax | 10 | 53 | — | 10 | ||||||||||||
Net profit after tax – cash | 10 | 53 | — | 10 | ||||||||||||
Net profit after tax – underlying | 9 | 3 | — | 9 | ||||||||||||
Cross Reference Index | Page | |||
Results for Announcement to the Market (Rule 4.3A Item No. 2) | Inside front cover | |||
Income Statement (Rule 4.3A Item No. 3) | 24 | |||
Balance Sheet (Rule 4.3A Item No. 4) | 25 | |||
Statement of Cash Flows (Rule 4.3A Item No. 5) | 26 | |||
Dividends (Rule 4.3A Item No. 6) | 3 | |||
Dividend dates (Rule 4.3A Item No. 7) | Inside front cover | |||
Net tangible assets per security (Rule 4.3A Item No. 9) | 64 | |||
Commentary on Results (Rule 4.3A Item No. 14) | 2 | |||
![-s- John Hatton](https://capedge.com/proxy/6-K/0000950123-06-010385/y241916ky2419123.gif)
2006 | 2005 | |||||||
$M | $M | |||||||
Retained profits | ||||||||
Opening balance | 3,843 | 2,840 | ||||||
AIFRS transition adjustments(1) | (780 | ) | 9 | |||||
Restated opening balance | 3,063 | 2,849 | ||||||
Actuarial gains and losses from defined benefit superannuation plan | 387 | 110 | ||||||
Realised gains and dividend income on treasury shares held within the Bank’s life insurance statutory funds(2) | 85 | 21 | ||||||
Operating profit attributable to members of the Bank | 3,928 | 3,400 | ||||||
Total available for appropriation | 7,463 | 6,380 | ||||||
Transfers to general reserve | (239 | ) | (8 | ) | ||||
Transfers to general reserve for credit loss | (92 | ) | — | |||||
Interim 2006 dividend – cash component | (992 | ) | (883 | ) | ||||
Interim 2006 dividend – dividend reinvestment plan | (219 | ) | (200 | ) | ||||
Payment of 2005 final dividend – cash component | (1,172 | ) | (1,069 | ) | ||||
Payment of 2005 final dividend – dividend reinvestment plan | (262 | ) | (246 | ) | ||||
Other dividends | — | (131 | ) | |||||
Closing balance | 4,487 | 3,843 | ||||||
• | Actuarial and other movements within the defined benefit surplus superannuation plan; | ||
• | Net movement in the calculation of life insurance policyholder liabilities; | ||
• | Adjustment in respect of realised gains and dividend income on treasury shares; | ||
• | Deferral of initial entry fee income earned by life insurance entities; | ||
• | Adjustment to the fair value calculation for assets held by the life insurance business; | ||
• | Adjustment in respect of derivative financial instruments; | ||
• | Deferral of previously recognised net income and expenses within the banking business; | ||
• | Foreign exchange adjustment on the reclassification of hybrid financial instruments; | ||
• | Adjustment to fair value calculation for trading assets within the banking portfolios and for other financial instruments designated as fair value through profit and loss; and | ||
• | A change in functional currency designation resulting in a reclassification of $51 million between retained earnings and foreign currency translation reserve. |
Details of entities over which control was lost during the year
Ownership Interest | ||||||||
(Rule 4.3A Item No. 10) | Date control lost | Held (%) | ||||||
CMG Asia Limited | 18 October 2005 | 100 | % | |||||
Commserve Financial Limited | 18 October 2005 | 100 | % | |||||
Financial Solutions Limited | 18 October 2005 | 100 | % | |||||
As at 30 June 2006 | Ownership Interest Held (%) | |||
Computer Fleet Management | 50 | % | ||
Cyberlynx Procurement Services | 50 | % | ||
PT Astra CMG Life | 50 | % | ||
AMTD Group Limited (formerly Allday Enterprises Limited) | 30 | % | ||
China Life CMG Life Assurance Company | 49 | % | ||
Bao Minh CMG Life Insurance Company | 50 | % | ||
CMG CH China Funds Management Limited | 50 | % | ||
Hangzhou City Commercial Bank | 19.9 | % | ||
452 Capital Pty Limited | 30 | % | ||
Alster & Thames Partnership | 25 | % | ||
First State Cinda Fund Management Company Limited | 46 | % | ||
Healthcare Support (Newcastle) Ltd | 50 | % | ||
Equion Health (Barts) Limited | 50 | % | ||
Acadian Asset Management (Australia) Limited | 50 | % | ||
Five D Holdings | 50 | % | ||
2006 | 2005 | |||||||
19 (a) Reconciliation of Operating Profit after Income Tax to Net Cash Provided by Operating Activities | $M | $M | ||||||
Net profit after income tax | 3,959 | 3,410 | ||||||
Net (Increase) in interest receivable | (99 | ) | (17 | ) | ||||
Increase/(decrease) in interest payable | 784 | 64 | ||||||
Net decrease in trading securities | — | 318 | ||||||
Net (increase) in assets at fair value through Income Statement (excluding life insurance) | (53 | ) | — | |||||
Net (gain)/loss on sale of investments | — | (8 | ) | |||||
Net (gain)/loss on sale of controlled entities and associates | (163 | ) | 13 | |||||
Net Decrease/(increase) in derivative assets | 128 | — | ||||||
(Gain)/loss on sale property plant and equipment | (4 | ) | (4 | ) | ||||
Charge for bad and doubtful debts | 398 | 322 | ||||||
Depreciation and amortisation | 209 | 176 | ||||||
Increase in liabilities at fair value through Income Statement (excluding life insurance) | 1,374 | — | ||||||
(Decrease) in derivative liabilities | (445 | ) | — | |||||
(Decrease) in other provisions | (92 | ) | (86 | ) | ||||
(Decrease)/increase in income taxes payable | (455 | ) | 406 | |||||
Net increase in deferred income taxes payable | 182 | 332 | ||||||
Decrease/(increase) in deferred tax assets | 184 | (86 | ) | |||||
(Increase) in accrued fees/reimbursements receivable | (88 | ) | (41 | ) | ||||
Increase in accrued fees/other items payable | 133 | 106 | ||||||
Amortisation of premium on investment securities | — | (4 | ) | |||||
Unrealised (gain)/loss on revaluation of trading securities | — | 408 | ||||||
Unrealised (gain)/loss on revaluation of assets at fair value through Income Statement (excluding life insurance) | (112 | ) | — | |||||
Change in life insurance contract policy liabilities | (814 | ) | 56 | |||||
(Decrease) in managed fund units on sale | (46 | ) | — | |||||
Increase in cash flow hedge reserve | 31 | — | ||||||
Changes in operating assets and liabilities arising from cash flow movements | (3,458 | ) | (5,921 | ) | ||||
Other | (387 | ) | 220 | |||||
Net Cash provided by/(used in) Operating Activities | 1,166 | (336 | ) | |||||
19 (b) Reconciliation of Cash:For the purposes of the statement of cash flows, cash includes cash, money at short call, at call deposits with other financial institutions and settlement account balances with other banks. | ||||||||
Notes, coins and cash | 1,703 | 1,723 | ||||||
Other short term liquid assets | 491 | 859 | ||||||
Receivables due from other financial institutions — at call(1) | 4,657 | 2,893 | ||||||
Payables due to other financial institutions — at call(1) | (4,813 | ) | (4,199 | ) | ||||
Cash and Cash Equivalents at end of year | 2,038 | 1,276 | ||||||
19 (c) Disposal of Controlled Entities | ||||||||
Fair value of assets disposed | ||||||||
Cash and liquid assets | 55 | — | ||||||
Assets at fair value through Income Statement — insurance | 2,297 | — | ||||||
Other assets | 148 | — | ||||||
Life Insurance policy liabilities | (1,996 | ) | — | |||||
Bills payable and other liabilities | (41 | ) | — | |||||
Profit on sale | 145 | — | ||||||
Cash consideration received | 608 | — | ||||||
Less cash and cash equivalents disposed | (55 | ) | — | |||||
Net cash inflow on disposal | 553 | — | ||||||
19 (d) Non Cash Financing and Investing Activities:Shares issued under the Dividend Reinvestment Plan for 2006 were $481 million. | ||||||||
19 (e) Acquisition of Controlled Entities | ||||||||
Fair value of assets acquired | ||||||||
Cash and liquid assets | — | 4 | ||||||
Other intangibles | 122 | — | ||||||
Other assets | 167 | 4 | ||||||
Bills payable and other liabilities | (8 | ) | (8 | ) | ||||
Minority interests | 126 | — | ||||||
Goodwill | 7 | 44 | ||||||
Cash consideration paid | 414 | 44 | ||||||
Less cash and cash equivalents acquired | — | (4 | ) | |||||
Net cash outflow on acquisition | 414 | 40 | ||||||
19 (f) Financing Facilities :Standby funding lines are immaterial | ||||||||
(1) | At call includes certain receivables and payables due from and to financial institutions within three months. |
58 | Commonwealth Bank of Australia |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
$M | $M | Jun 05 % | $M | $M | Dec 05 % | |||||||||||||||||||
Net Interest Income (AIFRS basis) | 6,514 | 6,026 | 8 | 3,259 | 3,255 | — | ||||||||||||||||||
AIFRS Impacts: | ||||||||||||||||||||||||
Reclassification of Securitisation OBI (1) | (94 | ) | (71 | ) | 32 | (57 | ) | (37 | ) | 54 | ||||||||||||||
Income Deferral — Banking (2) | (11 | ) | 11 | large | (3 | ) | (8 | ) | (63 | ) | ||||||||||||||
Hybrid Instruments(3) | 123 | — | — | 66 | 57 | 16 | ||||||||||||||||||
Hedging & Derivatives(4) | (47 | ) | — | — | (21 | ) | (26 | ) | (19 | ) | ||||||||||||||
Net Interest Income (AGAAP equivalent) | 6,485 | 5,966 | 9 | 3,244 | 3,241 | — | ||||||||||||||||||
Other Banking Income (AIFRS basis) | 3,036 | 2,845 | 7 | 1,591 | 1,445 | 10 | ||||||||||||||||||
AIFRS Impacts: | ||||||||||||||||||||||||
Reclassification of Securitisation to NIE (1) | 94 | 70 | 34 | 57 | 37 | 54 | ||||||||||||||||||
Income Deferral — Banking (2) | (15 | ) | — | — | (21 | ) | 6 | large | ||||||||||||||||
Hedging & Derivatives (4) | 79 | — | — | 39 | 40 | (3 | ) | |||||||||||||||||
Other Banking Income (AGAAP equivalent) | 3,194 | 2,915 | 10 | 1,666 | 1,528 | 9 | ||||||||||||||||||
Total Banking Income (AIFRS basis) | 9,550 | 8,871 | 8 | 4,850 | 4,700 | 3 | ||||||||||||||||||
Total AIFRS Impacts | 129 | 10 | large | 60 | 69 | (13 | ) | |||||||||||||||||
Total Banking Income (AGAAP equivalent) | 9,679 | 8,881 | 9 | 4,910 | 4,769 | 3 | ||||||||||||||||||
Funds Management Income (AIFRS cash basis) | 1,543 | 1,247 | 24 | 828 | 715 | 16 | ||||||||||||||||||
AIFRS Impacts: | ||||||||||||||||||||||||
Income Deferral & DAC- Funds Management (5) | 20 | 14 | 43 | 7 | 13 | (46 | ) | |||||||||||||||||
Funds Management Income (AGAAP equivalent) | 1,563 | 1,261 | 24 | 835 | 728 | 15 | ||||||||||||||||||
Insurance Income (AIFRS cash basis) | 742 | 747 | (1 | ) | 356 | 386 | (8 | ) | ||||||||||||||||
AIFRS Impacts: | ||||||||||||||||||||||||
Income Deferral — Insurance (5) | (5 | ) | — | — | (4 | ) | (1 | ) | large | |||||||||||||||
Insurance Income (AGAAP equivalent) | 737 | 747 | (1 | ) | 352 | 385 | (9 | ) | ||||||||||||||||
Operating Expenses — comparable business (AIFRS basis) | 5,994 | 5,719 | 5 | 3,027 | 2,967 | 2 | ||||||||||||||||||
AIFRS Impacts: | ||||||||||||||||||||||||
Volume Expense Deferral — Funds Management (5) | 37 | 14 | large | 19 | 18 | 6 | ||||||||||||||||||
Share-Based Compensation & Other — Banking (6) | (10 | ) | (36 | ) | (72 | ) | — | (10 | ) | — | ||||||||||||||
Operating Expenses (AGAAP equivalent) | 6,021 | 5,697 | 6 | 3,046 | 2,975 | 2 | ||||||||||||||||||
Total AIFRS Impact on Net Profit Before Tax (“cash basis”) | 117 | 46 | large | 44 | 73 | (40 | ) | |||||||||||||||||
Total AIFRS Impact on Net Profit After Tax (“cash basis”)(7) | 115 | 46 | large | 45 | 70 | (36 | ) | |||||||||||||||||
AIFRS Non-cash items: | ||||||||||||||||||||||||
Defined benefit superannuation plan expense | 25 | 53 | (53 | ) | 6 | 19 | (68 | ) | ||||||||||||||||
Treasury share valuation adjustment | 100 | 39 | large | 57 | 43 | 33 | ||||||||||||||||||
Total AIFRS Non-Cash Items After Tax | 125 | 92 | 36 | 63 | 62 | 2 | ||||||||||||||||||
Total AIFRS Impact on Net Profit After Tax (“statutory basis”) | 240 | 138 | large | 108 | 132 | (18 | ) | |||||||||||||||||
Movement in General Reserve for Credit Losses (8) | 131 | — | — | 96 | 35 | large | ||||||||||||||||||
Description of AIFRS Impacts: | ||
(1) | Reclassification of securitisation income from other banking income to net interest income. | |
(2) | Includes the netting of Fees and Commissions against Interest Income, and measuring on an effective yield basis. | |
(3) | On reclassification of hybrid instruments from equity to loan capital, preference share dividends paid are reclassified to interest paid. | |
(4) | Reclassification of interest expense on certain non-hedged derivatives to other banking income, and measuring all derivatives on a Fair Value basis. | |
(5) | Capitalisation and amortisation of certain funds management and insurance revenue and expense items. In the current period the AIFRS impact on deferred acquisition costs has been reclassified from Insurance Income to Funds Management Income. The prior period has been restated on a consistent basis. | |
(6) | Principally relates to share-based compensation expense arising on the final issue under the mandatory Equity Participation Plan. | |
(7) | The effective tax rate on the AIFRS impact is not equivalent to the corporate tax rate due to tax treatment of distributions on some hybrid instruments, and non-deductibility of other expenses (e.g. share based compensation). | |
(8) | Represents the addition of the AIFRS Bad Debt Expense and the movement in the APRA General Reserve for Credit Loss on a pre-tax equivalent basis. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
$M | $M | Jun 05 % | $M | $M | Dec 05% | |||||||||||||||||||
Net Profit After Tax (“underlying basis“) (AIFRS) | 3,842 | 3,420 | 12 | 1,967 | 1,875 | 5 | ||||||||||||||||||
AIFRS Impact | 115 | 46 | large | 45 | 70 | (36 | ) | |||||||||||||||||
Net Profit After Tax (“underlying basis”) (AGAAP equivalent) | 3,957 | 3,466 | 14 | 2,012 | 1,945 | 3 | ||||||||||||||||||
Net Profit ex HK sale After Tax (“cash basis”) (AIFRS) | 3,908 | 3,492 | 12 | 1,992 | 1,916 | 4 | ||||||||||||||||||
AIFRS Impact | 115 | 46 | large | 45 | 70 | (36 | ) | |||||||||||||||||
Net Profit ex HK sale After Tax (“cash basis”) (AGAAP equivalent) | 4,023 | 3,538 | 14 | 2,037 | 1,986 | 3 | ||||||||||||||||||
Net Profit After Tax (“statutory basis”) (AIFRS) | 3,928 | 3,400 | 16 | 1,929 | 1,999 | (4 | ) | |||||||||||||||||
AIFRS Impact | 240 | 138 | large | 108 | 132 | (18 | ) | |||||||||||||||||
Net Profit After Tax (“statutory basis”) (AGAAP equivalent) (1) | 4,168 | 3,538 | 18 | 2,037 | 2,131 | (4 | ) | |||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/06 | 30/06/05 | Jun 06 vs | 30/06/06 | 31/12/05 | Jun 06 vs | |||||||||||||||||||
$M | $M | Jun 05 % | $M | $M | Dec 05 % | |||||||||||||||||||
Weighted average number of shares — cash basic (number) | ||||||||||||||||||||||||
AIFRS | 1,283 | 1,269 | 1 | 1,285 | 1,281 | — | ||||||||||||||||||
AIFRS Adjustments (2) | 3 | 4 | (25 | ) | 2 | 4 | (50 | ) | ||||||||||||||||
AGAAP | 1,286 | 1,273 | 1 | 1,287 | 1,285 | — | ||||||||||||||||||
Weighted average number of shares — cash diluted (number) | ||||||||||||||||||||||||
AIFRS | 1,338 | 1,325 | 1 | 1,344 | 1,333 | 1 | ||||||||||||||||||
AIFRS Adjustments (3) | (51 | ) | (51 | ) | — | (56 | ) | (47 | ) | 19 | ||||||||||||||
AGAAP | 1,287 | 1,274 | 1 | 1,288 | 1,286 | — | ||||||||||||||||||
Weighted average number of shares — statutory basic (number) | ||||||||||||||||||||||||
AIFRS | 1,275 | 1,260 | 1 | 1,277 | 1,273 | — | ||||||||||||||||||
AIFRS Adjustments (4) | 11 | 13 | (15 | ) | 11 | 12 | (8 | ) | ||||||||||||||||
AGAAP | 1,286 | 1,273 | 1 | 1,288 | 1,285 | — | ||||||||||||||||||
Net Assets ($M) | ||||||||||||||||||||||||
AIFRS | 21,343 | 22,643 | (6 | ) | 21,343 | 19,850 | 8 | |||||||||||||||||
AIFRS Adjustments (5) | — | 3,417 | — | — | — | — | ||||||||||||||||||
AGAAP | 21,343 | 26,060 | (18 | ) | 21,343 | 19,850 | 8 | |||||||||||||||||
Intangible Assets ($M) | ||||||||||||||||||||||||
AIFRS | 7,809 | 7,656 | 2 | 7,809 | 7,740 | 1 | ||||||||||||||||||
AIFRS Adjustments (6) | — | (3,262 | ) | — | — | — | — | |||||||||||||||||
AGAAP | 7,809 | 4,394 | 78 | 7,809 | 7,740 | 1 | ||||||||||||||||||
Average Interest Earning Assets ($M) | ||||||||||||||||||||||||
AIFRS | 274,798 | 244,708 | 12 | 282,553 | 267,169 | 6 | ||||||||||||||||||
AIFRS Adjustments (7) | — | (759 | ) | — | — | — | — | |||||||||||||||||
AGAAP | 274,798 | 243,949 | 13 | 282,553 | 267,169 | 6 | ||||||||||||||||||
Description of AIFRS Impacts: | ||
(1) | Net profit after tax (“statutory basis”) (AGAAP equivalent) excludes the impact of appraisal value uplifts and goodwill amortisation from comparative periods. | |
(2) | Relates to the deduction of “Treasury Shares” held within the employee share scheme trust. | |
(3) | Relates to the dilutive impact under AIFRS which requires inclusion of hybrid instruments which have any probability of conversion to ordinary shares. | |
(4) | Relates to the deduction of all Treasury Shares. | |
(5) | Relates principally to the write-off of internally-generated appraisal value excess. | |
(6) | Relates principally to the reclassification of acquired appraisal value excess from Other assets to Intangible assets. | |
(7) | Average interest earning assets are increased under AIFRS due to the consolidation of non-home loan securitisation assets. |
Full Year Ended | Half Year Ended | |||||||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | Page | ||||||||||||||||
Profit Summary — Input Schedule | $M | $M | $M | $M | References | |||||||||||||||
Income | ||||||||||||||||||||
Net interest income | 6,514 | 6,026 | 3,259 | 3,255 | Page 7 | |||||||||||||||
Other banking operating income | 3,036 | 2,845 | 1,591 | 1,445 | Page 7 | |||||||||||||||
Total banking Income | 9,550 | 8,871 | 4,850 | 4,700 | Page 7 | |||||||||||||||
Operating income | 1,543 | 1,247 | 828 | 715 | Page 17 | |||||||||||||||
Shareholder investment returns | 14 | 33 | 7 | 7 | Page 17 | |||||||||||||||
Funds management income | 1,557 | 1,280 | 835 | 722 | Page 17 | |||||||||||||||
Operating income — life insurance | 669 | 693 | 322 | 347 | Page 21 | |||||||||||||||
Operating income — general insurance | 73 | 54 | 34 | 39 | Page 21 | |||||||||||||||
Operating income insurance | 742 | 747 | 356 | 386 | Page 21 | |||||||||||||||
Shareholder investment returns | 87 | 204 | 30 | 57 | Page 21 | |||||||||||||||
Profit on sale of the Hong Kong business | 145 | — | — | 145 | Page 21 | |||||||||||||||
Insurance income | 974 | 951 | 386 | 588 | Page 21 | |||||||||||||||
Total income | 12,081 | 11,102 | 6,071 | 6,010 | Page 3 | |||||||||||||||
Expenses | ||||||||||||||||||||
Banking | 4,558 | 4,380 | 2,298 | 2,260 | Page 36 | |||||||||||||||
Funds management | 989 | 798 | 530 | 459 | Page 36 | |||||||||||||||
Insurance | 447 | 541 | 199 | 248 | Page 36 | |||||||||||||||
Operating expenses | 5,994 | 5,719 | 3,027 | 2,967 | Page 36 | |||||||||||||||
Banking | — | 112 | — | — | Page 36 | |||||||||||||||
Funds management | — | 36 | — | — | Page 36 | |||||||||||||||
Insurance | — | 2 | — | — | Page 36 | |||||||||||||||
Which new Bank expenses | — | 150 | — | — | Page 36 | |||||||||||||||
Total expenses | 5,994 | 5,869 | 3,027 | 2,967 | Page 36 | |||||||||||||||
Profit before bad debts expense | 6,087 | 5,233 | 3,044 | 3,043 | Page 3 | |||||||||||||||
Bad debts expense | 398 | 322 | 210 | 188 | Page 3 | |||||||||||||||
Profit before tax expense | 5,689 | 4,911 | 2,834 | 2,855 | Page 3 | |||||||||||||||
Income tax — corporate | 1,605 | 1,409 | 829 | 776 | Page 3 | |||||||||||||||
Operating profit after tax | 4,084 | 3,502 | 2,005 | 2,079 | Page 3 | |||||||||||||||
Minority interest (OEI) | 31 | 10 | 13 | 18 | Page 3 | |||||||||||||||
Net profit after tax & OEI — cash basis | 4,053 | 3,492 | 1,992 | 2,061 | Page 3 | |||||||||||||||
Defined benefit superannuation plan expense | (25 | ) | (53 | ) | (6 | ) | (19 | ) | Page 3 | |||||||||||
Treasury share valuation adjustment | (100 | ) | (39 | ) | (57 | ) | (43 | ) | Page 3 | |||||||||||
Net profit after tax & OEI — statutory basis | 3,928 | 3,400 | 1,929 | 1,999 | Page 3 | |||||||||||||||
Investment return on shareholder funds | 246 | 237 | 37 | 209 | Page 23 | |||||||||||||||
Tax expense on shareholder investment returns | 35 | 60 | 12 | 23 | Page 23 | |||||||||||||||
Shareholder Investment Returns — after tax | 211 | 177 | 25 | 186 | Page 23 | |||||||||||||||
Which new Bank expenses | — | 150 | — | — | Page 3 | |||||||||||||||
Tax expense on Which new Bank expenses | — | (45 | ) | — | — | Page 3 | ||||||||||||||
Which new Bank expenses — after tax | — | 105 | — | Page 3 | ||||||||||||||||
Net profit after tax — underlying basis | 3,842 | 3,420 | 1,967 | 1,875 | Page 3 | |||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | Page | ||||||||||||||||
Profit Summary – Input Schedule | $M | $M | $M | $M | References | |||||||||||||||
Other Data | ||||||||||||||||||||
Net interest income (excluding securitisation) | 6,420 | 5,956 | 3,202 | 3,218 | Page 32 | |||||||||||||||
Average interest earning assets | 274,798 | 244,708 | 282,553 | 267,169 | Page 32 | |||||||||||||||
Average net assets(1) | 21,994 | 22,307 | 20,597 | 21,247 | Page 25 | |||||||||||||||
Average minority interest(1) | 1,148 | 2,135 | 515 | 1,156 | Page 25 | |||||||||||||||
Average preference shares & other equity instruments(1) | 1,600 | 2,260 | 470 | 1,130 | Page 25 | |||||||||||||||
Average treasury shares(1) | (390 | ) | (378 | ) | (381 | ) | (376 | ) | Page 50 | |||||||||||
Average defined benefit superannuation plan net surplus(1) | 631 | 418 | 656 | 471 | Page 24 | |||||||||||||||
Preference dividends | 127 | 131 | 67 | 60 | Page 24 | |||||||||||||||
Preference dividends (after tax) | 100 | 90 | 54 | 46 | Page 24 | |||||||||||||||
Average number of shares – statutory | 1,275 | 1,260 | 1,277 | 1,273 | Page 3 | |||||||||||||||
Average number of shares – fully diluted – statutory | 1,329 | 1,316 | 1,336 | 1,324 | — | |||||||||||||||
Average number of shares – cash and underlying | 1,283 | 1,269 | 1,285 | 1,281 | Page 3 | |||||||||||||||
Average number of shares – fully diluted – cash and underlying | 1,338 | 1,325 | 1,344 | 1,333 | — | |||||||||||||||
Dividends per share (cents) | 224 | 197 | 130 | 94 | Page 3 | |||||||||||||||
No of shares at end of period | 1,283 | 1,280 | 1,283 | 1,289 | Page 50 | |||||||||||||||
Average funds under administration | 139,082 | 116,262 | 147,684 | 130,179 | Page 17 | |||||||||||||||
Operating income – internal | 9 | 10 | 4 | 5 | Page 17 | |||||||||||||||
Average inforce premiums(1) | 1,244 | 1,216 | 1,220 | 1,241 | Page 22 | |||||||||||||||
Net assets | 21,343 | 22,643 | 21,343 | 19,850 | Page 25 | |||||||||||||||
Total intangible assets | 7,809 | 7,656 | 7,809 | 7,740 | Page 25 | |||||||||||||||
Minority interests | 508 | 1,789 | 508 | 523 | Page 25 | |||||||||||||||
Preference share capital | — | 687 | — | — | Page 25 | |||||||||||||||
Other equity instruments | 939 | 1,573 | 939 | — | Page 25 | |||||||||||||||
Tier one capital | 16,354 | 14,141 | 16,354 | 15,290 | Page 47 | |||||||||||||||
Eligible loan capital | 281 | 304 | 281 | 317 | Page 47 | |||||||||||||||
Other equity instruments | 3,659 | 1,573 | 3,659 | 1,573 | Page 48 | |||||||||||||||
Minority interest (net of minority interest component deducted from Tier One capital) | 508 | 520 | 508 | 523 | Page 48 | |||||||||||||||
Investment in non consolidated subsidiaries (net of Intangible component deducted from Tier One capital) | 2,012 | 1,721 | 2,012 | 1,918 | Page 48 | |||||||||||||||
Other deductions | 151 | 28 | 151 | 130 | Page 48 | |||||||||||||||
Risk-weighted assets | 216,438 | 189,559 | 216,438 | 202,667 | Page 48 | |||||||||||||||
(1) | Average of opening & closing balance. |
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
Ratios – Output Summary | $M | $M | $M | $M | ||||||||||||
EPS | ||||||||||||||||
Earnings per share – cash basis ex Hong Kong (cents) | 304.6 | 264.8 | 154.9 | 149.5 | ||||||||||||
Earnings per share – cash basis (cents) | 315.9 | 264.8 | 154.9 | 160.9 | ||||||||||||
Net profit after tax – cash basis | 4,053 | 3,492 | 1,992 | 2,061 | ||||||||||||
less preference dividends | — | (131 | ) | — | — | |||||||||||
Adjusted profit for EPS calculation | 4,053 | 3,361 | 1,992 | 2,061 | ||||||||||||
Average number of shares (M) | 1,283 | 1,269 | 1,285 | 1,281 | ||||||||||||
Add back preference dividends (after tax) (M) | 100 | 90 | 54 | 46 | ||||||||||||
Adjusted diluted profit for EPS calculation | 4,153 | 3,451 | 2,046 | 2,107 | ||||||||||||
Diluted average number of shares (M) | 1,338 | 1,325 | 1,344 | 1,333 | ||||||||||||
EPS diluted – cash basis (cents) | 310.5 | 260.5 | 152.1 | 158.1 | ||||||||||||
Earnings per share – underlying basis (cents) | 299.4 | 259.2 | 153.0 | 146.4 | ||||||||||||
Net profit after tax – underlying | 3,842 | 3,420 | 1,967 | 1,875 | ||||||||||||
less preference dividends | — | (131 | ) | — | — | |||||||||||
Adjusted profit for EPS calculation | 3,842 | 3,289 | 1,967 | 1,875 | ||||||||||||
Average number of shares (M) | 1,283 | 1,269 | 1,285 | 1,281 | ||||||||||||
DPS | ||||||||||||||||
Dividends | ||||||||||||||||
Dividends per share (cents) | 224 | 197 | 130 | 94 | ||||||||||||
No of shares at end of period (M) | 1,283 | 1,280 | 1,283 | 1,289 | ||||||||||||
Total dividend | 2,879 | 2,517 | 1,668 | 1,211 | ||||||||||||
Dividend payout ratio – cash basis | ||||||||||||||||
Net profit after tax – cash basis | 4,053 | 3,492 | 1,992 | 2,061 | ||||||||||||
less preference dividends | — | (131 | ) | — | — | |||||||||||
NPAT – ordinary shareholders | 4,053 | 3,361 | 1,992 | 2,061 | ||||||||||||
Total dividend | 2,879 | 2,517 | 1,668 | 1,211 | ||||||||||||
Payout ratio – cash basis (%) | 71.0 | 74.9 | 83.7 | 58.8 | ||||||||||||
Dividend cover | ||||||||||||||||
NPAT – ordinary shareholders | 4,053 | 3,361 | 1,992 | 2,061 | ||||||||||||
Total dividend | 2,879 | 2,517 | 1,668 | 1,211 | ||||||||||||
Dividend cover – cash basis | 1.4 | 1.3 | 1.2 | 1.7 | ||||||||||||
ROE | ||||||||||||||||
Return on equity – cash basis | ||||||||||||||||
Average net assets | 21,993 | 22,307 | 20,597 | 21,247 | ||||||||||||
Less: | ||||||||||||||||
Average minority interests | (1,148 | ) | (2,135 | ) | (515 | ) | (1,156 | ) | ||||||||
Average preference shares | (1,600 | ) | (2,260 | ) | (470 | ) | (1,130 | ) | ||||||||
Average equity | 19,245 | 17,912 | 19,612 | 18,961 | ||||||||||||
Less average treasury shares | (390 | ) | (378 | ) | (381 | ) | (376 | ) | ||||||||
Less average defined benefit superannuation plan net surplus | 631 | 418 | 656 | 471 | ||||||||||||
Net average equity | 19,004 | 17,872 | 19,337 | 18,866 | ||||||||||||
NPAT (“cash basis”) | 4,053 | 3,492 | 1,992 | 2,061 | ||||||||||||
less preference dividends | — | (131 | ) | — | — | |||||||||||
Adjusted profit for ROE calculation | 4,053 | 3,361 | 1,992 | 2,061 | ||||||||||||
Return on equity – cash basis (%) | 21.3 | 18.8 | 20.8 | 21.7 | ||||||||||||
Return on equity – underlying basis | ||||||||||||||||
Average net assets | 21,993 | 22,307 | 20,597 | 21,247 | ||||||||||||
Average minority interests | (1,148 | ) | (2,135 | ) | (515 | ) | (1,156 | ) | ||||||||
Average preference shares | (1,600 | ) | (2,260 | ) | (470 | ) | (1,130 | ) | ||||||||
Average equity | 19,245 | 17,912 | 19,612 | 18,961 | ||||||||||||
Less average treasury shares | (390 | ) | (378 | ) | (381 | ) | (376 | ) | ||||||||
Less average defined benefit superannuation plan net surplus | 631 | 418 | 656 | 471 | ||||||||||||
Net average equity | 19,004 | 17,872 | 19,337 | 18,866 | ||||||||||||
NPAT (“underlying basis”) | 3,842 | 3,420 | 1,967 | 1,875 | ||||||||||||
Less preference dividends | — | (131 | ) | — | — | |||||||||||
Adjusted profit for ROE calculation | 3,842 | 3,289 | 1,967 | 1,875 | ||||||||||||
Return on equity – underlying basis (%) | 20.2 | 18.4 | 20.5 | 19.7 | ||||||||||||
NIM | ||||||||||||||||
Net interest income (excluding securitisation) | 6,420 | 5,956 | 3,202 | 3,218 | ||||||||||||
Average interest earning assets (excluding securitisation) | 274,798 | 244,708 | 282,553 | 267,169 | ||||||||||||
NIM ( % pa) | 2.34 | 2.43 | 2.29 | 2.39 | ||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||
30/06/06 | 30/06/05 | 30/06/06 | 31/12/05 | |||||||||||||
Ratios – Output Summary | $M | $M | $M | $M | ||||||||||||
Productivity | ||||||||||||||||
Banking expense to income ratio | ||||||||||||||||
Expenses including Which new Bank expenses | 4,558 | 4,492 | 2,298 | 2,260 | ||||||||||||
Banking Income | 9,550 | 8,871 | 4,850 | 4,700 | ||||||||||||
Expense to Income – cash basis (%) | 47.7 | 50.6 | 47. 4 | 48.1 | ||||||||||||
Operating expenses | 4,558 | 4,380 | 2,298 | 2,260 | ||||||||||||
Banking Income | 9,550 | 8,871 | 4,850 | 4,700 | ||||||||||||
Expense to income – underlying basis (%) | 47.7 | 49.4 | 47. 4 | 48.1 | ||||||||||||
Funds management expenses to average FUA ratio | ||||||||||||||||
Expenses including Which new Bank expenses | 989 | 834 | 530 | 459 | ||||||||||||
Average funds under administration | 139,082 | 116,262 | 147,684 | 130,179 | ||||||||||||
Expenses to average FUA – cash basis (%) | 0.71 | 0.72 | 0. 72 | 0.70 | ||||||||||||
Insurance expenses to average inforce premiums ratio | ||||||||||||||||
Operating expenses including Which new Bank expenses – external | 447 | 543 | 199 | 248 | ||||||||||||
Operating expenses – internal | 9 | 10 | 4 | 5 | ||||||||||||
Total expenses | 456 | 553 | 203 | 253 | ||||||||||||
Average inforce premiums | 1,244 | 1,216 | 1,220 | 1,241 | ||||||||||||
Expenses to average inforce premiums – cash basis (%) | 36.7 | 45.5 | 33. 6 | 40.5 | ||||||||||||
Operating expenses – external | 447 | 541 | 199 | 248 | ||||||||||||
Operating expenses – internal | 9 | 10 | 4 | 5 | ||||||||||||
Total expenses | 456 | 551 | 203 | 253 | ||||||||||||
Average inforce premiums | 1,244 | 1,216 | 1,220 | 1,241 | ||||||||||||
Expenses to average inforce premiums – underlying basis (%) | 36.7 | 45.3 | 33. 6 | 40.5 | ||||||||||||
Net Tangible Assets (NTA) per share | ||||||||||||||||
Net assets | 21,343 | 22,643 | 21,343 | 19,850 | ||||||||||||
Less: | ||||||||||||||||
Intangible assets | (7,809 | ) | (7,656 | ) | (7,809 | ) | (7,740 | ) | ||||||||
Minority interests | (508 | ) | (1,789 | ) | (508 | ) | (523 | ) | ||||||||
Preference share capital | — | (687 | ) | — | — | |||||||||||
Other equity instruments | (939 | ) | (1,573 | ) | (939 | ) | — | |||||||||
Total net tangible assets | 12,087 | 10,938 | 12,087 | 11,587 | ||||||||||||
No of shares at end of period (M) | 1,283 | 1,280 | 1,283 | 1,289 | ||||||||||||
Net tangible assets (NTA) per share ($) | 9.42 | 8.54 | 9. 42 | 8.99 | ||||||||||||
ACE ratio | ||||||||||||||||
Tier one capital | 16,354 | 14,141 | 16,354 | 15,290 | ||||||||||||
Deduct: | ||||||||||||||||
Eligible loan capital | (281 | ) | (304 | ) | (281 | ) | (317 | ) | ||||||||
Preference share capital | — | (687 | ) | — | (687 | ) | ||||||||||
Other equity instruments | (3,659 | ) | (1,573 | ) | (3,659 | ) | (1,573 | ) | ||||||||
Minority Interest (net of minority interest component deducted from Tier One capital) | (508 | ) | (520 | ) | (508 | ) | (523 | ) | ||||||||
Investment in non-consolidated subsidiaries (net of intangible component deducted from Tier One capital) | (2,012 | ) | (1,721 | ) | (2,012 | ) | (1,918 | ) | ||||||||
Other deductions | (151 | ) | (28 | ) | (151 | ) | (130 | ) | ||||||||
Total Adjusted Common Equity | 9,743 | 9,308 | 9,743 | 10,142 | ||||||||||||
Risk weighted assets | 216,438 | 189,559 | 216,438 | 202,667 | ||||||||||||
ACE ratio (%) | 4.50 | 4.91 | 4. 50 | 5.00 | ||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||||||||||
Jun 06 vs | Jun 06 vs | |||||||||||||||||||||||||||||||
Total | Page | 30/06/06 | 30/06/05 | Jun 05 % | 30/06/06 | 31/12/05 | Dec 05 % | |||||||||||||||||||||||||
Net profit after tax – underlying | $ | M | 3 | 3,842 | 3,420 | 12 | 1,967 | 1,875 | 5 | |||||||||||||||||||||||
Net profit after tax – cash basis | $ | M | 3 | 4,053 | 3,492 | 16 | 1,992 | 2,061 | (3 | ) | ||||||||||||||||||||||
Defined benefit superannuation plan expense | $ | M | 3 | (25 | ) | (53 | ) | 53 | (6 | ) | (19 | ) | (68 | ) | ||||||||||||||||||
Treasury shares valuation adjustment | $ | M | 3 | (100 | ) | (39 | ) | large | (57 | ) | (43 | ) | 33 | |||||||||||||||||||
Net profit after tax – statutory | $ | M | 3 | 3,928 | 3,400 | 16 | 1,929 | 1,999 | (4 | ) | ||||||||||||||||||||||
Earnings per share cash basis – basic (cents) | cents | 3 | 315.9 | 264.8 | 19 | 154.9 | 160.9 | (4 | ) | |||||||||||||||||||||||
Dividend per share | cents | 3 | 224 | 197 | 14 | 130 | 94 | 38 | ||||||||||||||||||||||||
Dividend pay-out ratio cash basis (ex Hong Kong) | % | 3 | 73.7 | 74.9 | (120)bpts | 83.7 | 63.2 | large | ||||||||||||||||||||||||
Tier 1 capital | % | 47 | 7.56 | 7.46 | 10bpts | 7.56 | 7.54 | 2bpts | ||||||||||||||||||||||||
Total capital | % | 47 | 9.66 | 9.75 | (9)bpts | 9.66 | 9.81 | (15)bpts | ||||||||||||||||||||||||
Adjusted common equity | % | 47 | 4.50 | 4.91 | (41)bpts | 4.50 | 5.00 | (50)bpts | ||||||||||||||||||||||||
Return on equity – cash | % | 3 | 21.3 | 18.8 | 250bpts | 20.8 | 21.7 | (90)bpts | ||||||||||||||||||||||||
Return on equity – underlying | % | — | 20.2 | 18.4 | 180bpts | 20.5 | 19.7 | 80bpts | ||||||||||||||||||||||||
Weighted average number of shares – statutory | No. | 3 | 1,275 | 1,260 | 1 | 1,277 | 1,273 | — | ||||||||||||||||||||||||
Net tangible assets per share | $ | 64 | 9.42 | 8.54 | 10 | 9.42 | 8.99 | 5 | ||||||||||||||||||||||||
Banking | ||||||||||||||||||||||||||||||||
Net profit after tax – underlying | $ | M | 7 | 3,227 | 2,913 | 11 | 1,638 | 1,589 | 3 | |||||||||||||||||||||||
Net profit after tax – cash basis | $ | M | 7 | 3,227 | 2,834 | 14 | 1,638 | 1,589 | 3 | |||||||||||||||||||||||
Net Interest Income | $ | M | 7 | 6,514 | 6,026 | 8 | 3,259 | 3,255 | — | |||||||||||||||||||||||
Net Interest Margin | % | 7 | 2.34 | 2.43 | (9)bpts | 2.29 | 2.39 | (10)bpts | ||||||||||||||||||||||||
Other banking income | $ | M | 7 | 3,036 | 2,845 | 7 | 1,591 | 1,445 | 10 | |||||||||||||||||||||||
Other banking income/total bank income | % | — | 31.8 | 32.1 | (30)bpts | 32.8 | 30.7 | large | ||||||||||||||||||||||||
Expense to income ratio – underlying | % | 7 | 47.7 | 49.4 | 3 | 47.4 | 48.1 | 1 | ||||||||||||||||||||||||
Average interest earning assets | $ | M | 4 | 274,798 | 244,708 | 12 | 282,553 | 267,169 | 6 | |||||||||||||||||||||||
Average interest earning liabilities | $ | M | 4 | 255,100 | 225,597 | 13 | 263,203 | 247,129 | 7 | |||||||||||||||||||||||
Bad debts expense | $ | M | 7 | 398 | 322 | (24 | ) | 210 | 188 | (12 | ) | |||||||||||||||||||||
Bad debts expense to risk-weighted assets (annual) | % | 9 | 0.18 | 0.17 | 1bpt | 0.19 | 0.19 | — | ||||||||||||||||||||||||
Collective provision plus general reserve for credit losses (pre-tax equivalent) to risk weighted assets | % | 9 | 0.71 | — | n/a | 0.71 | 0.71 | — | ||||||||||||||||||||||||
General provision to risk weighted assets | % | 9 | — | 0.73 | n/a | — | — | n/a | ||||||||||||||||||||||||
Total provisions(1)plus general reserve for credit losses (pre-tax) to gross impaired assets | % | 40 | 526.7 | — | n/a | 526.7 | 410.1 | 28 | ||||||||||||||||||||||||
Total provision(1) to gross impaired assets | % | 40 | 373.3 | 411.4 | (9 | ) | 373.3 | 308.1 | 21 | |||||||||||||||||||||||
Individually provisioned to Impaired Assets | % | 40 | 52.5 | — | n/a | 52.5 | 45.2 | 16 | ||||||||||||||||||||||||
Risk weighted assets | $ | M | 48 | 216,438 | 189,559 | 14 | 216,438 | 202,667 | 7 | |||||||||||||||||||||||
Funds Management | ||||||||||||||||||||||||||||||||
Net profit after tax – underlying | $ | M | 17 | 400 | 351 | 14 | 217 | 183 | 19 | |||||||||||||||||||||||
Net profit after tax – cash basis | $ | M | 17 | 410 | 349 | 17 | 222 | 188 | 18 | |||||||||||||||||||||||
Shareholder investment returns | $ | M | 17 | 14 | 33 | (58 | ) | 7 | 7 | — | ||||||||||||||||||||||
Average funds under administration | $ | M | 17 | 139,082 | 116,262 | 20 | 147,684 | 130,179 | 13 | |||||||||||||||||||||||
Net inflows | $ | M | 17 | 10,830 | 456 | large | 8,135 | 2,695 | large | |||||||||||||||||||||||
Income to average funds under administration | % | 17 | 1.12 | 1.08 | 4bpts | 1.14 | 1.10 | 4bpts | ||||||||||||||||||||||||
Expenses to average funds under administration | % | 17 | 0.71 | 0.72 | 1 | 0.72 | 0.70 | (3 | ) | |||||||||||||||||||||||
Insurance | �� | |||||||||||||||||||||||||||||||
Net profit after tax – underlying | $ | M | 21 | 215 | 156 | 38 | 112 | 103 | 9 | |||||||||||||||||||||||
Net profit after tax – cash basis | $ | M | 21 | 416 | 309 | 35 | 132 | 284 | (54 | ) | ||||||||||||||||||||||
Shareholder investment returns | $ | M | 21 | 232 | 204 | 14 | 30 | 202 | (85 | ) | ||||||||||||||||||||||
Inforce premiums | $ | M | 22 | 1,223 | 1,265 | (3 | ) | 1,223 | 1,216 | 1 | ||||||||||||||||||||||
Expenses to Average Inforce premiums – underlying | % | 21 | 36.7 | 45.3 | 19 | 33.6 | 40.5 | 17 | ||||||||||||||||||||||||
(1) | Impairment provision ratios have changed because of the re-measurement under AIFRS. |
Exchange Rates Utilised | ||||||||||||||||
As At | 30/06/06 | 31/12/05 | 30/06/05 | |||||||||||||
AUD 1. 00= | USD | 0.7428 | 0.7341 | 0.7643 | ||||||||||||
GBP | 0.4053 | 0.4251 | 0.4223 | |||||||||||||
JPY | 85.276 | 86.214 | 84.165 | |||||||||||||
NZD | 1.214 | 1.071 | 1.090 | |||||||||||||
HKD | 5.770 | 5.692 | 5.940 | |||||||||||||
EUR | 0.5848 | 0.6187 | 0.6316 | |||||||||||||
Term | Description | |
Banking | Banking operations includes retail; business, corporate and institutional; Asia Pacific banking; treasury and centre support functions. Retail banking operations include banking services which were distributed through the Premium and Retail distribution divisions. Business, Corporate and Institutional banking includes banking services which were distributed to all business customers through the Premium Business Services division and the small business customers which were serviced through the Premium and Retail divisions and funding operations. Asia Pacific banking includes offshore banking subsidiaries, primarily ASB Bank operations in New Zealand. | |
Borrowing Corporation | ‘Borrowing Corporation’ as defined by Section 9 of the Corporations Act 2001 is CBFC Limited, Colonial Finance Limited and their controlled entities. | |
Dividend Payout Ratio | Dividends paid on ordinary shares divided by earnings (earnings are net of dividends on preference shares). | |
DRP | Dividend reinvestment plan. | |
DRP Participation | The percentage of total issued capital participating in the dividend reinvestment plan. | |
Earnings Per Share | Calculated in accordance with the revised AASB 133: Earnings per Share | |
Funds Management | Funds management business includes funds management within the Wealth Management division and International Financial Services division. | |
Insurance | Insurance business includes the life risk business within the Wealth Management division and the International Financial Services division and general insurance financial results. The insurance segment as reported on page 21 includes the operating performance of the Hong Kong Insurance business up to the effective date of sale (18 October 2005). Refer to appendix 18. | |
Net Profit after Tax (“Cash Basis”) | Represents profit after tax and minority interests, before defined benefit superannuation plan expense and treasury share adjustment. | |
Net Profit after Tax (“Statutory Basis”) | Represents profit after tax, minority interests, defined benefit superannuation plan expense and treasury shares. This is equivalent to the statutory item “Net Profit attributable to Members of the Group”. | |
Net profit after tax (“Underlying Basis”) | Represents net profit after tax (“cash basis”) excluding Which new Bank and shareholder investment returns. | |
Net Tangible Assets per Share | Net assets excluding intangible assets, Minority interests, preference shares and other equity instruments divided by ordinary shares on issue at the end of the period. | |
Overseas | ‘Overseas’ represents amounts booked in branches and controlled entities outside Australia . | |
Return on Average Shareholders’ Equity | Based on net profit after tax, minority interests applied to average shareholders equity, excluding minority interests. | |
Return on Average Shareholders’ Equity - Cash Basis | As per the return on average shareholder equity, excluding the effect of defined benefit superannuation plan expense and treasury shares valuation adjustment. | |
Return on Average Total Assets | Based on net profit after tax and Minority interests. Averages were based on beginning and end of period balances. | |
Staff Numbers | Staff numbers include all permanent full time staff, part time staff equivalents and external contractors employed by 3rd party agencies. | |
Underlying Expense to Income Ratio | Represents operating expenses (excluding Which new Bank) as a percentage of total operating revenue. | |
Weighted Average Number of Shares (“Statutory Basis”) | Includes an adjustment to exclude “Treasury Shares” related to investments in the Bank’s shares held by both the life insurance statutory funds and by the employee share scheme trust. | |
Weighted Average Number of Shares (“Cash Basis”) | Includes an adjustment to exclude only those “Treasury Shares” related to the investment in the Bank’s shares held by the life insurance statutory funds. |
Banking | ||
Australian Retail | ||
Home Loans | Total Household Loans(APRA) - MISA (Pre Sep 04) + Securitised Assets (APRA) + Homepath. | |
Credit Cards | CBATotal Credit Card Lending (APRA). | |
Retail Deposits | CBA Current Deposits + Term (excl CD’s) + Other (All as reported to RBA) | |
Household Deposits | CBA Household Deposits (as reported to APRA) - MISA (Pre Sep 04) | |
APRA Other Household Lending | CBA Term Personal Lending + Margin Lending net balances + Personal Leasing + Revolving credit | |
Business | ||
Business Lending | CBA business lending and credit (specific ‘business lending’ categories in lodged APRA returns - 320.0, 320.1 and 320.4) | |
Asset Finance | Total end of month asset finance net receivables excluding repossessed assets, non-accrual receivables, progressive fundings and the consumer loan balance | |
Equities Trading (CommSec) | 12 months rolling average of total value of CommSee equities trades | |
Asia Pacific | ||
NZ Lending | All retail, business, commercial, corporate, and rural deposits on ASB Balance Sheet | |
NZ Deposits | All retail, business, commercial, corporate, and rural loans on ASB Balance Sheet | |
Funds Management | ||
Retail market share (admin view): | Total funds in CBA Wealth Management retail investment products (including WM products badged by other parties) | |
Platforms/ masterfunds: | Total funds in CBA Wealth Management platforms and masterfunds (including WM platforms badged by other parties) | |
New Zealand retail | Total ASB + Sovereign + JMNZ Retail net Funds under Management | |
Insurance | ||
Australia (Total Risk) | Total risk inforce premium of all CBA Group Australian life insurance companies | |
Australia (Individual Risk) | (Individual lump sum + individual risk income) inforce premium of all CBA Group Australian life insurance companies | |
New Zealand | Total Sovereign (inforce annual premium income + new business – exits – other) | |
(1) | The RBA restates the total of all financial intermediaries retrospectively when required. This may be due to a change in definition, the inclusion of a new participant or correction of errors in prior returns. CBA restates its market share where the RBA total has changed based on current balances less implied percentage growth rates now reported by the RBA for previous months. |