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Half Yearly Report/ASIC Half Yearly Accounts

Document date:  Thu 26 Apr 2001
Published:  Thu 26 Apr 2001 10:48:35
Document No:  175940
Document part:  I
Market Flag:  Y
Classification:  Half Yearly Report , Half Year Audit Review , Half Year Directors' Statement , Half Year Accounts , Dividend Record Date , Dividend Pay Date , Dividend Rate , Other

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2001-04-26  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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CHIEF FINANCIAL OFFICER'S REVIEW (CONTINUED)

BUSINESS SEGMENT PERFORMANCE

ANZ is managed as 15 specialist businesses. A description of each of
these, and of segment totals, together with analysis of results is
contained on pages 10 to 30.

Operating profit for each business is determined after service
transfer pricing and equity standardisation.

                                           HALF      HALF      MOVT
                                           YEAR      YEAR      MAR 01
                                           MAR 01    MAR 00    V
                                                               MAR 00
                                           $M        $M         %

PERSONAL
 General Banking                           191       181         6%
 Small Business                             48        45         7%
 Wealth Management                          11        15       -27%
 Cards                                      58        34        71%
 Mortgages                                 112        58        93%
Segment total                              420       333        26%

CORPORATE
 Corporate Banking                          65        61         7%
 Institutional Banking                      88        67        31%
 Global Capital Markets                     24        16        50%
 Global Foreign Exchange                    40        32        25%
 Global Structured Finance                  85        69        23%
 Global Transaction Services                54        46        17%
Segment total                              356       291        22%

INTERNATIONAL AND SUBSIDIARIES
 Asset Finance                              47        46         2%
 Investment Management                      34        43       -21%
 Asia                                       31        11      large
 Pacific                                    21        22        -5%
Segment total                              133       122         9%

Operating segments total                   909       746        22%

Operating segments total                   909       746        22%
Corporate Centre, Technology and Finance    (2)       25        n/a

Continuing businesses                      907       771        18%

Net abnormals                                -        (1)       n/a
Discontinued businesses                    (12)       47        n/a

Net profit attributable to members
 of the Company                            895       817        10%

The Group uses service transfer pricing mechanisms to allocate
services that are provided by central areas to each of its business
units. The objective of service transfer pricing is to remove
cross-subsidies between business units, and ensure each business
accounts for the costs of the services it uses. Transfer pricing
arrangements are reviewed periodically. Changes in transfer pricing
arrangements in current periods are, to the extent possible,
reflected in prior period comparatives to assist comparability.

The profit and loss statement of each business unit includes net
inter business unit fees and net inter business unit expenses. This
treatment is consistent with the Group's strategy of managing along
specialist business lines. Net inter business unit fees includes
intra-group receipts or payments for sales commissions. A product
business (for example, Cards) will pay a distribution channel (for
example, General Banking) for product sales. Both the payment and
receipt are shown as net inter business unit fees. Net inter business
unit expenses consists of the charges made to business units for the
provision of support services. Examples of services provided include
technology and payments, risk management, finance and human resources
management. Both payments by business units and receipts by service
providers are shown as net inter business unit expenses.

Equity standardised profit is determined by eliminating the impact of
earnings on each business unit's book capital and attributing
earnings on the business unit's risk adjusted capital. This enhances
comparability of business unit performance. Changes to the
methodology for allocating capital to business units will result,
from time to time, in restatements of prior period comparatives.
Geographic results are not equity standardised.

Discontinued Businesses includes the results of the Grindlays and
associated businesses sold to Standard Chartered Bank Plc and the
proposed joint venture to establish an eBank in Asia. This joint
venture (with OCBC) was discontinued in March as it became clear that
the venture's projected financial returns were not sufficiently
compelling in light of market entry costs and the softer economic
environment.



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