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Preliminary Final Report

Document date:  Thu 24 Oct 2002
Published:  Thu 24 Oct 2002 11:29:22
Document No:  196680
Document part:  E
Market Flag:  Y
Classification:  Preliminary Final Report , Periodic Reports - Other , Dividend Record Date , Dividend Pay Date , Dividend Rate

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2002-10-24  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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FINANCIAL HIGHLIGHTS

NET PROFIT                                   FULL     FULL     MOVT
                                             YEAR     YEAR    SEP 02
                                            SEP 02   SEP 01  V SEP 01
                                             $M       $M        %

Net interest income                        4,018     3,833       5%
Other operating income                     2,970     2,573      15%
Operating income                           6,988     6,406       9%
Operating expenses                        (2,905)   (3,092)     -6%
Profit before debt provision               4,083     3,314      23%
Provision for doubtful debts                (860)     (531)     62%
Profit before income tax                   3,223     2,783      16%
Income tax expense                          (898)     (911)     -1%
Outside equity interests                      (3)       (2)     50%
Net profit attributable to 
 members of the Company                    2,322     1,870      24%

NET PROFIT RECONCILIATION

Profit excluding profit after tax from sale of businesses to joint
venture

NHB recovery and special general  
 provision for doubtful debts              2,168     1,870      16%
Special general provision for
 doubtful debts after tax                   (175)        -      n/a
Recovery from NHB litigation after tax       159         -      n/a
Profit on sale of businesses to ING
 joint venture after tax                     170         -      n/a
Net profit attributable to members of
 the Company                               2,322     1,870      24%

Profit excluding profit on sale of businesses to joint venture, NHB
recovery and special general provision for doubtful debts

                                             FULL     FULL     MOVT
                                             YEAR     YEAR    SEP 02
                                            SEP 02   SEP 01  V SEP 01
                                             $M       $M        %

Net interest income                        4,018     3,833       5%
Other operating income                     2,796     2,573       9%
Operating income                           6,814     6,406       6%
Operating expenses                        (3,153)   (3,092)      2%
Profit before debt provision               3,661     3,314      10%
Provision for doubtful debts                (610)     (531)     15%
Profit before income tax                   3,051     2,783      10%
Income tax expense                          (880)     (911)     -3%
Outside equity interests                      (3)       (2)     50%
Net profit adjusted for 
 significant transactions                  2,168     1,870      16%

PERFORMANCE MEASUREMENTS                       FULL         FULL
                                               YEAR         YEAR
                                              SEP 02       SEP 01
                                               $M           $M

PROFITABILITY RATIOS 
Return on:
Average ordinary shareholders' equity(1)       23.2%        20.2%
Average ordinary shareholders' equity(1)
  excluding significant transactions(3)        21.6%        20.2%
Average assets                                 1.30%        1.07%
Average risk weighted assets                   1.68%        1.39%
Total income                                   18.4%        13.7%
Net interest average margin                    2.77%        2.77%
Profit per average FTE ($)                  102,246       82,667

EFFICIENCY RATIOS(2)
Operating expenses to operating income
 (excluding significant transactions(3))       46.0%        48.0%
Operating expenses to operating income         41.3%        48.0%
Operating expenses (excluding significant
 transactions)(3) to average assets             1.8%         1.8%
Operating expenses to average assets            1.6%         1.8%

DEBT PROVISIONING
Economic loss provisioning ($M)                 610          531
Special general provision charge ($M)           250            -
Net specific provisions ($M)                    728          520

EARNINGS PER ORDINARY SHARE (CENTS)
Earnings per ordinary share (basic)           147.3        117.4
Earnings per ordinary share (diluted)         146.6        117.0
Earnings per ordinary share (basic)
 excluding significant transactions(3)        137.0        117.4
Earnings per ordinary share (basic)
 excluding significant transactions(3)
  and goodwill amortisation                   139.6        118.5

ORDINARY SHARE DIVIDENDS (CENTS)
Interim - 100% franked (Mar 02:
  100% franked)                                  39           33
Final - 100% franked (Sep 01:
 100% franked)                                   46           40
Dividend payout ratio                          57.8%        62.0%

PREFERENCE SHARE DIVIDEND
Dividend paid ($M)                              117          119

EVA(TM)
Profit (excluding ING notional goodwill)
 after tax excluding significant              
 transactions(3)                              2,186        1,870
Imputation credits                              449          477
Risk adjusted profit                          2,635        2,347
Cost of capital                              (1,043)        (953)
Cost of preference share capital               (117)        (119)
EVA(TM)                                       1,475        1,275

(1). Ordinary shareholders' equity excluding outside equity interests
(2). Excluding goodwill amortisation
(3). Significant transaction during the half year ended 30 September,
2002 was sale of businesses to INGA joint venture; during half year
ended 31 March, 2002 were NHB recovery and special general provision
for doubtful debts

STATEMENT OF FINANCIAL POSITION           AS AT      AS AT      MOVT
                                          SEP 02     SEP 01    SEP 02
                                                              V SEP 01
                                           $M        $M          %

ASSETS
Liquid assets                              7,410      7,794      -5%  
Due from other financial institutions      3,815      4,829     -21%  
Trading and investment securities          9,482      8,314      14%  
Net loans and advances including 
 acceptances                             145,856    137,981       6% 
Other                                     16,542     26,575     -38%  
TOTAL ASSETS                             183,105    185,493      -1%  

LIABILITIES
Due to other financial institutions       10,860     12,690     -14% 
Deposits and other borrowings            113,297    104,874       8%  
Liability for acceptances                 13,796     14,324      -4%  
Bonds and notes                           14,708     15,340      -4% 
Other                                     18,979     27,714     -32%  
Total liabilities                        171,640    174,942      -2% 
TOTAL SHAREHOLDERS' EQUITY                11,465     10,551       9%  

ASSETS AND CAPITAL                        AS AT      AS AT      MOVT
                                          SEP 02     SEP 01    SEP 02
                                                              V SEP 01
                                                                 %

Total assets ($M)                        183,105    185,493      -1% 

Risk weighted assets ($M)                141,390    139,129       2% 

Shareholders' equity (1, 2) ($M)          11,448     10,538       9%  

Total advances ($M)                      149,390    141,800       5%  
Specific provisions ($M)                    (585)      (500)     17%  
Net advances ($M)                        148,805    141,300       5% 
Net tangible assets per ordinary
 share ($)                                  6.58       5.96      10% 
Net tangible assets attributable to 
 ordinary shareholders ($M)                9,893      8,875      11%  
Total number of ordinary shares (M)      1,503.9    1,488.3       1%  

CAPITAL ADEQUACY RATIO (%)                AS AT      AS AT      MOVT
                                          SEP 02     SEP 01    SEP 02
                                                              V SEP 01
                                                                 %

Inner Tier 1                                 6.9%       6.4%      9% 
Tier 1                                       7.9%       7.5%      6%  
Tier 2                                       2.8%       3.3%    -15% 
Total                                        9.5%      10.3%     -8% 
Adjusted common equity ($M)                8,123      8,257      -2% 
% of risk weighted assets (%)                5.7%       5.9%     -3%  

                                          AS AT      AS AT      MOVT
                                          SEP 02     SEP 01    SEP 02
                                                              V SEP 01
                                                                 %

GENERAL PROVISION ($M)                     1,496      1,386       8%  
General provision as a % of risk 
 weighted assets                            1.06%      1.00%      6%
  
NON-ACCRUAL LOANS ($M)
Non-accrual loans                          1,203      1,260      -5%  
Specific provisions                         (575)      (490)     17%  
Net non-accrual loans                        628        770     -18%  
Specific provision as a % of total 
 non-accrual loans                          47.8%      38.9%     23%  
Total provisions(3) as a % of
 non-accrual loans                         172.2%     148.9%     16%  
Net non-accrual loans as a % of
 net advances                                0.4%       0.5%    -23%  
Net non-accrual loans as a % of 
 shareholders' equity(4)                     5.5%       7.3%    -25% 

OTHER INFORMATION
Full time equivalent staff (FTE's)        22,482     22,501       - 
Assets per FTE ($M)                          8.1        8.2      -1%  
Market capitalisation of ordinary 
 shares ($M)                              26,544     23,783      12%  

(1). Excludes outside equity interests
(2). Includes preference share capital of $1,375 million (Mar 2002:
$1,410 million; Sep 2001: $1,526 million)
(3). General provision plus specific provisions on non-accrual loans
(4). Includes outside equity interests

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