2009 Shareholder Review
| Group results for the year ended 30 September | |||||
|---|---|---|---|---|---|
| 2009 $M |
2008 $M |
2007 $M |
2006 $M |
2005 $M |
|
| Net interest income | 12,072 | 11,142 | 9,765 | 8,777 | 6,860 |
| Other operating income | 3,766 | 3,015 | 3,519 | 3,554 | 4,371 |
| MLC net operating income | 1,068 | 1,257 | 1,286 | 1,123 | 1,116 |
| Net operating income | 16,906 | 15,414 | 14,570 | 13,454 | 12,347 |
| Operating expenses | (7,580) | (7,276) | (7,428) | (7,360) | (7,213) |
| Underlying profit | 9,326 | 8,138 | 7,142 | 6,094 | 5,134 |
| Charge to provide for bad and doubtful debts | (3,815) | (2,489) | (790) | (605) | (525) |
| Cash earnings before tax, IoRE and distributions | 5,511 | 5,649 | 6,352 | 5,489 | 4,609 |
| Income tax expense | (1,451) | (1,408) | (1,722) | (1,563) | (1,350) |
| Cash earnings before IoRE and distributions | 4,060 | 4,241 | 4,630 | 3,926 | 3,259 |
| Net profit - minority interest | – | 1 | – | – | – |
| IoRE | 26 | (14) | 39 | 56 | 101 |
| Distributions | (245) | (312) | (283) | (254) | (204) |
| Cash earnings – ongoing operations | 3,841 | 3,916 | 4,386 | 3,728 | 3,156 |
| Disposed operations | – | 3 | 8 | 175 | 97 |
| Cash earnings | 3,841 | 3,919 | 4,394 | 3,903 | 3,253 |
| Non-cash earnings items (after tax) | (1,252) | 617 | 184 | 489 | 739 |
| Net profit attributable to members of the company | 3,992 | 4,536 | 4,578 | 4,392 | 3,992 |
| Selected performance indicators for the year ended 30 September | |||||
|---|---|---|---|---|---|
| 2009 |
2008 |
2007 | 2006 | 2005 |
|
| Key indicators | |||||
| Cash earnings per share (cents) – basic | 198.4 | 238.4 | 270.1 | 233.0 | 208.6 |
| Cash earnings per share (cents) – diluted | 197.5 | 237.3 | 268.5 | 230.6 | 206.3 |
| Cash return on equity (ROE) | 11.8% | 14.3% | 17.1% | 15.9% | 15.0% |
| Profitability, performance and efficiency measures | |||||
| Dividends per share (cents) | 146 | 194 | 182 | 167 | 166 |
| Dividend payout ratio | 73.6% | 81.4% | 67.4% | 71.7% | 79.6% |
| Cash earnings on average assets | 0.56% | 0.64% | 0.84% | 0.81% | 0.88% |
| Banking cost to income ratio | 43.9% | 46.9% | 50.8% | 54.5% | 59.2% |
| Capital | Basel II | Basel II | Basel I | Basel I | Basel I |
| Tier 1 ratio | 8.96% | 7.35% | 6.67% | 7.35% | 7.86% |
| Total capital ratio | 11.48% | 10.93% | 9.99% | 10.81% | 10.45% |
| Risk weighted assets ($bn) | 342.5 | 343.5 | 355.3 | 318.3 | 289.8 |
| Volumes ($bn) | |||||
| Average interest earning assets | 559.4 | 506.5 | 429.1 | 375.7 | 325.5 |
| Asset Quality | |||||
| Gross impaired assets to gross loans and acceptances | 1.26% | 0.49% | 0.28% | 0.26% | 0.35% |
| Collective provision to credit risk-weighted assets (excluding housing)(1) |
1.46% | 1.07% | n/a | n/a | n/a |
| Specific provision to gross impaired assets | 28.2% | 30.0% | 28.1% | 20.4% | 34.9% |
| Other | |||||
| Full Time Equivalent Employees (no.) | 38,953 | 39,729 | 38,822 | 38,419 | 38,933 |
| Balance sheet summary for the year ended 30 September | |||||
|---|---|---|---|---|---|
| 2009 $M |
2008 $M |
2007(1) $M |
2006(2) $M |
2005(2) $M |
|
| Assets | |||||
| Cash and liquid assets | 25,834 | 18,209 | 12,796 | 12,768 | 8,441 |
| Due from other banks | 33,265 | 46,996 | 25,144 | 24,372 | 15,595 |
| Marketable debt securities | 47,681 | 39,463 | 40,682 | 16,621 | 26,480 |
| Loans and advances at fair value | 29,567 | 25,732 | 19,564 | 16,774 | – |
| Other assets at fair value | 1,963 | 4,868 | 5,625 | 5,349 | – |
| Other financial assets at fair value | 31,530 | 30,600 | 25,189 | 22,123 | – |
| Loans and advances including acceptances | 399,809 | 406,456 | 366,525 | 325,503 | 292,301 |
| Investments relating to life insurance business | 54,254 | 52,896 | 62,630 | 54,784 | 49,783 |
| Other assets | 61,747 | 62,179 | 41,254 | 28,614 | 29,998 |
| Total assets | 654,120 | 656,799 | 574,220 | 484,785 | 422,598 |
| Liabilities | |||||
| Due to other banks | 36,148 | 52,423 | 42,566 | 37,489 | 36,322 |
| Deposits at fair value | 10,365 | 14,485 | 14,133 | 10,622 | – |
| Other liabilities at fair value | 10,946 | 9,099 | 7,717 | 7,058 | 1,487 |
| Other financial liabilities at fair value | 21,311 | 23,584 | 21,850 | 17,680 | 1,487 |
| Deposits and other borrowings | 336,188 | 327,466 | 263,742 | 222,277 | 212,557 |
| Liability on acceptances | 16,891 | 16,075 | 30,443 | 32,114 | 27,627 |
| Bonds, notes and subordinated debt | 90,792 | 98,239 | 80,983 | 65,006 | 41,490 |
| Life policy liabilities | 47,314 | 46,150 | 53,097 | 46,475 | 42,123 |
| Other liabilities | 67,641 | 60,016 | 51,654 | 35,772 | 29,445 |
| Total liabilities | 616,285 | 623,953 | 544,335 | 456,813 | 391,051 |
| Net assets | 37,835 | 32,846 | 29,885 | 27,972 | 31,547 |
| Equity | |||||
| Equity (parent entity interest) | 37,815 | 32,790 | 29,571 | 27,804 | 25,323 |
| Minority interest in controlled entities | 20 | 56 | 314 | 168 | 6,224 |
| Total equity | 37,835 | 32,846 | 29,885 | 27,972 | 31,547 |
