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Half Yearly Report/ASIC Half Yearly Accounts

Document date:  Thu 26 Apr 2001
Published:  Thu 26 Apr 2001 11:50:02
Document No:  175940
Document part:  J
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)

PERSONAL
Peter Hawkins

Comprises the General Banking, Small Business and Wealth Management 
customer segments, and Cards and Mortgages specialist products, in 
Australia and New Zealand.

                                     HALF YEAR    HALF YEAR
                                       MAR  01       MAR 00
                                            $M           $M

Net interest income                      1,085          957
Other external operating income            456          433
Net inter business unit fees                58           73
Operating income                         1,599        1,463 
External operating expenses               (685)        (669)
Net inter business unit expenses          (181)        (193)
Operating expenses                        (866)        (862)
Profit before debt provision               733          601
Provision for doubtful debts               (95)         (84)
Income tax expense and outside
 equity interests                         (218)        (184)
Net profit attributable to members
 of the Company                            420          333
Net loans and advances including
 acceptances                            69,445       60,951
Other external assets                    1,508        1,002
External assets                         70,953       61,953
Deposits and other borrowings           35,526       34,366
Other external liabilities               1,739        1,544
External liabilities                    37,265       35,910

Net interest average margin               3.22%        3.35%
Return on assets                          1.22%        1.14%
Return on risk weighted assets            2.11%        1.94%
Operating expenses to operating income    53.7%        58.7%
Operating expenses to average assets      2.49%        2.94%
Net specific provisions                     88           87
Net specific provision as a % of 
 average net advances                     0.26%        0.30%
Net non-accrual loans                       90           69
Net non-accrual loans as a % of
 net advances                              0.1%         0.1%
Total Employees                          11,319       11,858

The results for Personal include the business units General Banking, 
Small Business, Wealth Management, Cards and Mortgages, and the 
Personal central support unit. The services provided by the central 
support unit are allocated to the business units and are fully 
recovered. As a result of this allocation, the sum of individual 
profit and loss line items of the business units does not equal the 
corresponding line item in the profit and loss of Personal.

GENERAL BANKING
Larry  Crawford (to 31 March 2001)

Specialised retail banking sales and servicing network devoted to the
metropolitan consumer sector and the regional and rural communities. 
Also encompassing retail on-line banking services.

                                     HALF YEAR    HALF YEAR
                                      MAR 2001     MAR 2000
                                            $M           $M

Net interest income                        440          430 
Other external operating income            205          214
Net inter business unit fees               180          187
Operating income                           825          831
External operating expenses               (396)        (407)
Net inter business unit expenses          (129)        (135)
Operating expenses                        (525)        (542)
Profit before debt provision               300          289
Provision for doubtful debts               (11)         (12)
Income tax expenses and outside equity     (98)         (96)
 interests
Net profit attributable to members of      191          181
 the Company
Operating expenses to operating income    63.6%        65.2%
Net specific provisions                     10           13
Net non-accrual loans                       15           16
Total employees                          7,938        8,568

General Banking manages transaction accounts and deposit products 
across the ANZ customer base. Customers can access the services of 
General Banking using call centres, ATM's, the internet (anz.com) and 
bank branches. Products sold through these channels include 
transactional accounts, mortgages, credit cards, insurance and 
investment products. General Banking is focusing on further developing
channels that allow customers to be self-directed, improve customer 
satisfaction and lower the costs of service delivery.

General Banking contributed $191 million to the group result. Key 
drivers of the result are:

* net interest income was flat with growth in lending and deposit 
volumes being offset by a margin contraction as cash rates have fallen
more than interest rates on deposits

* other operating income remaining flat with increased transaction 
fees offset by reduced lending fees

* operating costs increasing by $9 million with additional GST costs
offsetting cost savings from efficiency gains.

The Group has announced that General Banking will be managed as two 
distinct business units.

Metrobanking will be headed by Elizabeth Proust, and Regionalbanking 
by Alison Watkins.

Metrobanking - Elizabeth Proust (from 01/04/2001)
Regionalbanking - Alison Watkins (from 01/04/2001)

ECOMMERCE

General Banking includes B2C eCommerce. ANZ internet banking continues
to grown strongly; internet banking penetration of our customer base, 
with over 720,000 registered users, is the highest of or competitor 
banks. At the end of March 2001 we had 590,000 internet users in 
Australia and 130,000 in New Zealand. anz.com was named the Best 
Financial Site by the Prestigious AFR Internet Awards in December 
2000.

Customers are very active users of the service, conducting more value
transactions through the internet than via phone banking. In
addition, the majority of ANZ BPAY payments (by value) are now
conducted over the internet. Online sales are increasing, with more
than 3,000 credit card sales per month. The "pay anyone"
functionality was introduced first in Australia by ANZ and has proved
very popular with customers.

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