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Preliminary Final Report

Document date:  Thu 26 Oct 2000
Published:  Thu 26 Oct 2000 11:45:14
Document No:  168995
Document part:  P
Market Flag:  Y
Classification:  Preliminary Final Report , Dividend Record Date , Dividend Pay Date , Dividend Rate

AUSTRALIA & NEW ZEALAND BANKING GROUP LI      2000-10-26  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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CHIEF FINANCIAL OFFICER'S REVIEW (continued)

GEOGRAPHIC SEGMENT - NEW ZEALAND

                                    2000      1999         MOVT 
                                    $M        $M            % 

Net interest income                477        477           - 
Fee income                         273        240          14% 
Other operating income              63         71         -11% 
Operating income                   813        788           3% 
Operating expenses                (450)      (469)          4% 
Operating profit before debt 
provisions                         363        319          -4%
Provision for doubtful debts       (35)       (40)        -13% 
Income tax expense                 (87)       (80)          9% 
Operating profit after income tax 
before abnormal items              241        199          21% 
Net abnormal profit after tax 
(refer page 34)                    (31)         -          N/A
Operating profit after income tax 
and abnormal items                 210        199           6%
Ratios exclude abnormal items 
Net interest average margin       2.63%      2.73%         N/A 
Return on ordinary book equity    24.4%      24.3%         N/A 
Return on risk weighted assets    1.70%      1.44%         N/A 
Operating expenses to operating  
income                            54.9%      59.4%         N/A 
Operating expenses to average 
assets                            2.19%      2.42%         N/A 
Net specific provision              42         18         large 
Net specific provision as a % of 
average net advances               0.3%       0.1%         N/A 
Net non-accrual loans               33         30          10%
Net non-accrual loans as a % of 
net advances                       0.2%       0.2%         N/A 
Total employees                  3,918      4,290          -9% 
Lending growth (including FX 
impact)                            5.1%       1.4%          N/A 
Lending growth (excluding FX 
impact)                           11.1%       7.7%          N/A 
Total assets                    20,354     19,730           3% 
Risk weighted assets            13,578     13,546           - 

New Zealand contributed $241 million (14%) to the Group's operating
result before abnormals. This represented a 21% increase over the
previous year and reflects: 

* modest lending volume growth, although net interest income has been 
constrained by competitive pressures on margins 

* increased fee income from new products, changes to fee structures, 
and growth in funds management activities 

* containment of operating costs, in particular personnel costs, 
reflecting the benefits of restructuring programs undertaken 

* improved credit quality in corporate lending, partly offset by 
increased provisioning in personal loans and cards receivables. 
Similarly, the growth in specific provisions principally relates to 
personal loans and higher credit card receivables

The New Zealand result was impacted by the depreciation in the NZD
over the year. In NZD terms, total income increased by 8%, expenses
increased marginally (1%) and profit after abnormals was 26% higher
than in 1999.

The operating cost to income ratio has reduced to 54.9% from 59.4% in
the previous year.

During the year, the Group strengthened its position in NZ eCommerce
by the purchase of EFTPOS NZ Limited. EFTPOS NZ supplies EFTPOS
terminals and merchant related services to over 20,000 businesses.

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