Preliminary Final Report

Document date:  Thu 26 Oct 2000
Published:  Thu 26 Oct 2000 12:05:25
Document No:  168995
Document part:  Q
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 - OVERSEAS MARKETS

                                             2000     1999     Movt 
                                              $M       $M        % 

Net interest income                           701      721      -3% 
Fee income                                    319      326      -2% 
Other operating income                        195      188       4% 

Operating income                            1,215    1,235      -2%
Operating expenses                           (638)    (664)     -4% 

Operating profit before debt provisions       577      571       1% 
Provision for doubtful debts                 (118)    (182)    -35%
Income tax expense                           (195)    (144)     35% 
Outside equity interests                       (2)      (6)    -67% 

Operating profit after income tax 
 before abnormal items                        262      239      10% 
Net abnormal profit after tax 
 (refer page 34)                              (15)       -      n/a
Operating profit after income tax 
 and abnormal items                           247      239       3%

Ratios exclude abnormal items 
Net interest average margin                  2.06%    2.25%     n/a 
Return on ordinary book equity               11.8%    11.2%     n/a 
Return on risk weighted assets               1.04%    0.93%     n/a 
Operating expenses to operating income       52.5%    53.7%     n/a 
Operating expenses to average assets         1.72%    1.75%     n/a 
Net specific provision                         103      297    -65% 
Net specific provision as a % of average 
 net advances                                 0.6%     1.8%     n/a 
Net non-accrual loans                          273      282     -3% 
Net non-accrual loans as a % of 
 net advances                                 2.0%     1.7%     n/a 
Total employees                              2,646    8,735    -70% 
Lending growth (including FX impact)        (15.4%)   (9.0%)    n/a 
Lending growth (excluding FX impact)        (24.5%)    0.7%     n/a 
Total assets                                24,807   25,520     -3% 
Risk weighted assets                        22,301   24,029     -7%

Overseas markets increased profit before abnormals by 1O% on the 1999
result to $262 million. The increase reflects: 

* increase in other income from the sales of Guernsey and Qatar
* higher trading results in the UK and South Asia
* lower operating costs reflecting only 10 months of costs from sold
  businesses, partially offset by an adverse exchange rate movement 

offset by 

* reduced profit as a result of the Grindlays businesses being sold
two months before the end of the year
* reduced margins in Asia, the Middle East and South Asia as credit
quality improved and competitive pressures increased 
* write off of tax assets in some countries


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