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Shareholder Centre

Annual Report 2004

Five Year Financial Summary

  2004
$M
2003
$M
2002
$M
2001
$M
2000
$M
Financial Performance
Net interest income 5,410 5,026 4,710 4,474 3,719
Other operating income 5,081 4,373 4,358 4,350 2,420
Total operating income 10,491 9,399 9,068 8,824 6,139
Charge for bad and doubtful debts 276 305 449 385 196
Operating expenses:
Comparable business 5,500 5,312 5,201 5,170 3,407
Initiatives including Which New Bank 749 239
6,249 5,551 5,201 5,170 3,407
Operating profit before goodwill amortisation, appraisal value uplift, abnormal items and income tax expense 3,966 3,543 3,418 3,269 2,536
Income tax expense (1,262) (958) (916) (993) (820)
Outside equity interests (9) (6) (1) (14) (38)
Net Profit after Tax ("cash basis") 2,695 2,579 2,501 2,262 1,678
Abnormal items 967
Income tax credit on abnormal items 20
Appraisal value uplift/(reduction) 201 (245) 477 474 92
Goodwill amortisation (324) (322) (323) (338) (57)
Operating profit after income tax attributable to members of the Bank 2,572 2,012 2,655 2,398 2,700
Contributions to profit (after tax)
Banking 2,675 2,376 2,067 1,793 1,513
Funds management 274 233 368 323 36
Insurance 129 65 33 20 116
Profit on operations ("underlying basis")(1) 3,078 2,674 2,468 2,136 1,665
Shareholder investment returns 152 73 33 126 13
Initiatives including Which New Bank (535) (168)
Profit on operations ("cash basis") 2,695 2,579 2,501 2,262 1,678
Goodwill amortisation (324) (322) (323) (338) (57)
Appraisal value uplift/(reduction) 201 (245) 477 474 92
Abnormal income after tax 987
Operating profit after income tax 2,572 2,012 2,655 2,398 2,700
Financial Position
Loans, advances and other receivables 189,391 160,347 147,074 136,059 132,263
Total assets 305,995 265,110 249,648 230,411 218,259
Deposits and other public borrowings 163,177 140,974 132,800 117,355 112,594
Total liabilities 281,110 242,958 228,592 210,563 199,824
Shareholders' equity 22,405 20,024 19,030 18,393 17,472
Net tangible assets 17,700 14,995 13,639 12,677 11,942
Risk weighted assets 169,321 146,808 141,049 138,383 128,484
Average interest earning assets 214,187 188,270 170,634 160,607 129,163
Average interest bearing liabilities 197,532 174,737 157,105 145,978 117,075
Assets (on balance sheet)
Australia 252,652 221,248 208,673 196,918 187,452
New Zealand 35,059 27,567 24,579 20,208 16,661
Other 18,284 16,295 16,396 13,285 14,146
Total Assets 305,995 265,110 249,648 230,411 218,259

(1) "Underlying basis" excludes shareholder investment returns, initiatives including Which new Bank, goodwill amortisation, appraisal value adjustment and abnormal items.

  2004 2003 2002 2001 2000
Shareholder Summary
Dividends per share (cents) — fully franked 183 154 150 136 130
Dividend cover (times) — statutory 1.1 0.9 1.4 1.4 1.2
Dividend cover (times) — cash 1.1 1.3 1.3 1.3 1.6
Dividend cover (times) — underlying 1.3 1.4 1.3 1.2 1.2
Earnings per share (cents)
Basic
before abnormal items 196.9 157.4 209.6 189.6 184.8
after abnormal items 196.9 157.4 209.6 189.6 291.2
Cash basis(1) 206.6 202.6 197.3 178.8 181.0
Underlying basis(2) 237.1 210.2 194.6 168.8 179.6
Fully Diluted
before abnormal items 196.8 157.3 209.3 189.3 184.4
after abnormal items 196.8 157.3 209.3 189.3 290.7
Cash basis(1) 206.5 202.5 197.0 178.6 180.6
Underlying basis(2) 237.0 210.0 194.3 168.5 179.2
Dividend payout ratio (%)(3)
before abnormal items 93.5 97.7 71.7 71.2 83.5
after abnormal items 93.5 97.7 71.7 71.2 53.0
Cash basis(1) 89.1 75.9 76.2 75.5 85.3
Underlying basis(2) 77.6 73.3 77.2 80.2 85.9
Net tangible assets per share ($) 12.2 11.4 10.3 9.6 9.2
Weighted average number of shares (basic) (m) 1,256 1,253 1,250 1,260 927
Weighted average number of shares (fully diluted) (m) 1,257 1,254 1,252 1,262 929
Number of shareholders 714,901 746,073 722,612 709,647 788,791
Share prices for the year ($)
Trading high 33.54 32.75 34.94 34.15 27.95
Trading low 27.00 23.05 24.75 26.18 22.54
End (closing price) 32.58 29.55 32.93 34.15 27.69
Performance Ratios (%)
Return on average shareholders' equity(4)(5)
before abnormal items 13.0 10.7 14.7 13.5 22.1
after abnormal items 13.0 10.7 14.7 13.5 34.8
cash basis 13.2 13.3 13.1 12.0 19.1
underlying basis 15.1 13.8 12.9 11.4 18.9
Return on average total assets(4)
before abnormal items 0.9 0.8 1.1 1.1 1.1
after abnormal items 0.9 0.8 1.1 1.1 1.7
cash basis 0.9 1.0 1.0 1.0 0.9
underlying basis 1.1 1.0 1.0 1.0 0.9
Capital adequacy — Tier 1 7.43 6.96 6.78 6.51 7.49
Capital adequacy — Tier 2 3.93 4.21 4.28 4.18 4.75
Deductions (1.11) (1.44) (1.26) (1.53) (2.49)
Capital adequacy — Total 10.25 9.73 9.80 9.16 9.75
Net interest margin 2.53 2.67 2.76 2.78 2.88
Other Information (numbers)
Full time staff equivalent(6) 36,296 35,845 37,245 37,460 39,631
Branches/service centres (Australia) 1,012 1,014 1,020 1,066 1,441
Agencies (Australia) 3,866 3,893 3,936 3,928 4,020
ATMs (Proprietary) 3,109 3,116 3,049 2,931 3,092
EFTPOS terminals 126,049 129,959 126,613 122,074 116,064
EzyBanking 815 760 730 659 603
Productivity
Total Operating Income per full-time (equivalent) employee ($) 278,047 262,212 262,856 235,558 198,479
Staff Expense/Total Operating Income (%) 24.3 26.1 26.4 26.7 27.8
Total Operating Expenses(7)/Total Operating Income (%) 59.6 59.1 57.4 58.6 57.2

(1) ‘Cash earnings’ for the purpose of these financial statements is defined as net profit after tax and before abnormal items, goodwill amortisation and life insurance and funds management appraisal value uplift.

(2) ‘Underlying earnings’ for the purpose of these financial statements is defined as net profit after tax and before shareholder investment returns, initiatives including Which new Bank, abnormal items, goodwill amortisation and life insurance and funds management appraisal value uplift.

(3) Dividends paid divided by earnings.

(4) Calculations based on operating profit after tax and outside equity interests applied to average shareholders' equity/average total assets.

(5) 2004 and 2003 shareholders' equity includes retained earnings before provision for final dividend of $1,315 million and $1,066 million respectively. Prior periods' return on average shareholders' equity — cash basis and underlying basis have been restated to exclude the provision for final dividend.

(6) Staff numbers include all permanent full time staff, part time staff equivalents and external contractors employed by 3rd party agencies.

(7) Total Operating Expenses excluding goodwill amortisation and charge for bad and doubtful debts.

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