FILE NO 1-9945
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October 2006
National Australia Bank Limited
ACN 004 044 937
(Registrant’s Name)
Level 24
500 Bourke Street
MELBOURNE VICTORIA 3000
AUSTRALIA
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
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Form 20-F |
x |
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Form 40-F |
o |
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
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Yes |
o |
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No |
x |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82
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Group Corporate Affairs |
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500 Bourke Street, Melbourne |
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Victoria 3000 |
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Australia |
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www.nabgroup.com |
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ABN 12 004 044 937 |
ASX Announcement
Tuesday, 24 October 2006
National Australia Bank Full Year Reporting Template
National Australia Bank today released its reporting template extract for the 2006 financial year profit announcement.
The template is provided to allow analysts to update financial models to take into account the impact of businesses disposed during 2006.
To facilitate comparison on a like for like basis, prior period cash earnings have been reduced to reflect operations that have been sold. These include Custom Fleet and the MLC life insurance operations in Hong Kong and Indonesia.
The template also includes refinements to the March 2006 disclosure of fair value movements for financial instruments. This is associated with the introduction of the Australian equivalents of International Financial Reporting Standards and does not change the reported profit.
National Australia Bank will announce its 2006 financial results on Friday 3 November.
For further information:
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Brandon Phillips |
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Hany Messieh |
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National Australia Bank Limited |
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ABN 12 004 044 937 |
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500 Bourke Street |
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Melbourne VIC 3000 |
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Australia |
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Telephone: 613-8641-3500 |
Summary of Changes
The attached templates incorporate the following changes to the disclosures made at the 31 March 2006 half:
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• |
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Prior period comparatives have been amended to exclude the impact of the businesses disposed during the year; |
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• |
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Prior period comparatives have been updated to reflect the impact of a minor business re-organisation of the Australian Treasury business moving from Group Funding into the Australia Region; |
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• |
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Reclassification within “Gains less losses on financial instruments” has been made to reclassify the fair value movements on derivatives designated under the Fair Value Option out of “Trading income” and into “Other fair value movements”. |
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• |
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The definition of “Cash Earnings” has been updated to reflect how it will be determined for the 30 September 2006 half year. |
1
Divisional Performance Summary
DIVISIONAL PERFORMANCE SUMMARY
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Fav / |
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Fav / |
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(Unfav) |
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(Unfav) |
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Half Year to |
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Change on |
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Year to |
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Change on |
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Sep 06 |
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Mar 06 |
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Mar 06 |
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Sep 06 |
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Sep 05 |
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Sep 05 |
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$m |
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$m |
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% |
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$m |
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$m |
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% |
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Cash earnings (1) |
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Australian Banking |
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990 |
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1,836 |
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Wealth Management Australia |
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174 |
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403 |
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Asia Banking & Wealth Management |
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29 |
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29 |
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Australia Region |
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1,193 |
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2,268 |
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UK Region |
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257 |
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536 |
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New Zealand Region |
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167 |
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317 |
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nabCapital |
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286 |
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577 |
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Other (incl. Group Funding & Corporate Centre) |
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64 |
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(241 |
) |
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Cash earnings before significant items and distributions |
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1,967 |
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3,457 |
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Distributions |
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(127 |
) |
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(204 |
) |
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Cash earnings before significant items |
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1,840 |
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|
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3,253 |
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Cash earnings before significant items—disposed operations |
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(52 |
) |
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(93 |
) |
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Cash earnings before significant items—ongoing operations |
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1,788 |
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3,160 |
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Reconciliation to net profit |
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Cash earnings before significant items |
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1,840 |
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3,253 |
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Adjusted for: |
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Significant items after tax |
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270 |
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678 |
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Cash earnings after significant items |
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2,110 |
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3,931 |
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Adjusted for: |
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Net profit attributable to minority interest |
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259 |
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610 |
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Distributions |
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127 |
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204 |
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Treasury shares after tax |
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(104 |
) |
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(143 |
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IoRE discount rate variation |
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— |
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— |
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Impairment of goodwill |
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(5 |
) |
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— |
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Revaluation gains / (losses) on exchangeablecapital units after tax |
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(134 |
) |
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— |
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Net profit/(loss) on sale of controlled entities |
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— |
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— |
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Revaluation gains/(losses) on economic hedge of the proceeds on sale of controlled entities |
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— |
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— |
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Net profit |
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2,253 |
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4,602 |
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Net profit attributable to minority interest |
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(259 |
) |
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(610 |
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Net profit attributable to members of the Company |
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1,994 |
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3,992 |
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Distributions |
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(127 |
) |
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(204 |
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Earnings attributable to ordinary shareholders |
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1,867 |
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3,788 |
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(1) |
Cash earnings is a performance measure used by the management of the Group. Refer to ‘Non-GAAP financial measures’ for a complete discussion of cash earnings. |
2
NON-GAAP FINANCIAL MEASURES
Cash earnings
Cash earnings is defined as follows:
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Net profit |
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Less: |
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Minority interests |
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Minority interests — Life businesses |
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Distributions |
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Revaluation gains/losses on exchangeable capital units |
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Treasury shares |
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Net profit/loss on sale of controlled entities |
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Revaluation gains/losses on economic hedge of the proceeds on |
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sale of controlled entities |
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IoRE discount rate variation |
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Add: |
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Impairment of goodwill |
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Cash earnings |
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Cash earnings is a key performance measure and financial target used by the Group. Dividends paid by the Company are based on after-tax cash earnings (adjusted for significant items).
Cash earnings is a key performance measure used by the investment community, as well as by those Australian peers of the Group with a similar business portfolio.
Cash earnings does not refer to, or in any way purport to represent the cash flows, funding or liquidity position of the Group. It does not refer to any amount represented on a Cash Flow Statement.
Adjustments are made between net profit and cash earnings as follows:
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Minority interests — reflects the allocation of profit to minority interests in the Group, and is adjusted from net profit to reflect the amount of net profit that is attributable to ordinary shareholders |
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• |
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Minority interests Life Businesses — reflects the allocation of profit to controlled unit trusts of life companies |
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• |
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Distributions — this reflects payments to holders of National Income Securities, Trust Preferred Securities, and Trust Preferred Securities II, and is adjusted from net profit to reflect the amount of net profit that is attributable to ordinary shareholders |
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• |
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Revaluation gains/losses on exchangeable capital units — the Group’s exposure to foreign exchange risk is eliminated through the existence of certain conversion features that convert the ExCaps to equity at pre-determined exchange rates |
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• |
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Treasury shares — relates to the movement in treasury share assets (direct investments in National Australia Bank Limited) caused by the movement in the share price |
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• |
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Net profit/loss on sale of controlled entities — relates to profits or losses on the sale of controlled entities. |
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• |
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Revaluation gains/losses on economic hedge of the proceeds on sale of controlled entities — represents the fair value movement on derivatives taken out to protect against foreign exchange rate movements and relates directly to the profit/loss on sale of controlled entities. |
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• |
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IoRE discount rate variation — relates to the movement in Investment Earnings on Shareholders’ Retained Profits (IoRE) attributable to the variation between applying the short term and long term discount rates when calculating the IoRE. This adjustment has been made for the 30 September 2006 half only. It had an insignificant impact on the March 2006 half. |
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• |
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Impairment of goodwill — relates to the impairment expense recognised on the application of an annual impairment test. Financial statement users generally do not regard impairment of goodwill as being useful information in analysing investments. As it relates to an intangible asset, management believes it is prudent to isolate this amount from the underlying operating result. |
3
Cash earnings before significant items and Net profit before significant items
Under Australian accounting standards AASB101 “Presentation of Financial Statements” additional line items shall be presented when such presentation is relevant to an understanding of the entity’s performance. Such items have been identified as “significant revenue or expenses” and are included on the face of the Income Statement when this is necessary to explain the elements of financial performance. Factors to consider in their identification include materiality and the nature and function of the components of income and expenses.
4
DIVISIONAL CASH EARNINGS
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Australia Region |
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UK |
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NZ |
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nabCapital |
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Other(1) |
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Elimina- |
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Total |
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Disposed |
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Total |
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||||
|
Year ended |
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Banking |
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WM |
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Asia |
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Region |
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Region |
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tions |
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Group |
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Operations |
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Ongoing |
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|
30 September 2005 |
|
$m |
|
$m |
|
$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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$m |
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Net interest income |
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3,807 |
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5 |
|
25 |
|
1,794 |
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739 |
|
502 |
|
72 |
|
— |
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6,944 |
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(94 |
) |
6,850 |
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Net life insurance income excluding IoRE (2) |
|
— |
|
1,498 |
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19 |
|
— |
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9 |
|
— |
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— |
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— |
|
1,526 |
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(19 |
) |
1,507 |
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Investment earnings on shareholders retained profits & capital (IoRE) |
|
— |
|
124 |
|
18 |
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— |
|
4 |
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— |
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— |
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— |
|
146 |
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(18 |
) |
128 |
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Other operating income |
|
2,636 |
|
658 |
|
14 |
|
1,249 |
|
522 |
|
927 |
|
117 |
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(233 |
) |
5,890 |
|
(814 |
) |
5,076 |
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Net operating income |
|
6,443 |
|
2,285 |
|
76 |
|
3,043 |
|
1,274 |
|
1,429 |
|
189 |
|
(233 |
) |
14,506 |
|
(945 |
) |
13,561 |
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Operating expenses (3) |
|
(3,543 |
) |
(657 |
) |
(39 |
) |
(2,033 |
) |
(768 |
) |
(742 |
) |
(446 |
) |
233 |
|
(7,995 |
) |
799 |
|
(7,196 |
) |
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Underlying profit |
|
2,900 |
|
1,628 |
|
37 |
|
1,010 |
|
506 |
|
687 |
|
(257 |
) |
— |
|
6,511 |
|
(146 |
) |
6,365 |
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|
Charge to provide for doubtful debts |
|
(257 |
) |
— |
|
— |
|
(216 |
) |
(38 |
) |
(24 |
) |
1 |
|
— |
|
(534 |
) |
9 |
|
(525 |
) |
|
Cash earnings before tax |
|
2,643 |
|
1,628 |
|
37 |
|
794 |
|
468 |
|
663 |
|
(256 |
) |
— |
|
5,977 |
|
(137 |
) |
5,840 |
|
|
Income tax expense |
|
(807 |
) |
(624 |
) |
1 |
|
(258 |
) |
(151 |
) |
(86 |
) |
15 |
|
— |
|
(1,910 |
) |
35 |
|
(1,875 |
) |
|
Cash earnings before significant items, distributions and Minority Interest |
|
1,836 |
|
1,004 |
|
38 |
|
536 |
|
317 |
|
577 |
|
(241 |
) |
— |
|
4,067 |
|
(102 |
) |
3,965 |
|
|
Net profit - Minority Interest |
|
— |
|
(601 |
) |
(9 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
(610 |
) |
9 |
|
(601 |
) |
|
Cash earnings before significant items and distributions |
|
1,836 |
|
403 |
|
29 |
|
536 |
|
317 |
|
577 |
|
(241 |
) |
— |
|
3,457 |
|
(93 |
) |
3,364 |
|
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(204 |
) |
— |
|
(204 |
) |
|
Cash earnings before significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,253 |
|
(93 |
) |
3,160 |
|
|
(1) |
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Other includes Group Funding, Corporate Centre and elimination entries within Australia Region. |
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(2) |
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Net life insurance income is the profit before tax of the life insurance and investment businesses of the statutory funds of the life insurance companies of the Group (excluding net interest income and investment earnings on shareholders retained profits & capital (IoRE) of the life insurance businesses). |
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(3) |
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Operating expenses excludes the life insurance expenses incorporated within net life insurance income (Wealth Management businesses only). |
5
|
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|
Australia Region |
|
UK |
|
NZ |
|
nabCapital |
|
Other(1) |
|
Elimina- |
|
Total |
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Disposed |
|
Total |
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||||
|
Half year ended |
|
Banking |
|
WM |
|
Asia |
|
Region |
|
Region |
|
|
|
|
|
tions |
|
Group |
|
Operations |
|
Ongoing |
|
|
31 March 2006 |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Net interest income |
|
2,315 |
|
(6 |
) |
13 |
|
883 |
|
401 |
|
434 |
|
152 |
|
— |
|
4,192 |
|
49 |
|
4,241 |
|
|
Net life insurance income excluding IoRE (2) |
|
— |
|
910 |
|
20 |
|
— |
|
6 |
|
— |
|
— |
|
— |
|
936 |
|
(20 |
) |
916 |
|
|
Investment earnings on shareholders retained profits & capital (IoRE) |
|
— |
|
42 |
|
13 |
|
— |
|
2 |
|
— |
|
— |
|
— |
|
57 |
|
(13 |
) |
44 |
|
|
Other operating income |
|
1,082 |
|
310 |
|
11 |
|
590 |
|
232 |
|
294 |
|
70 |
|
(87 |
) |
2,502 |
|
(379 |
) |
2,123 |
|
|
Net operating income |
|
3,397 |
|
1,256 |
|
57 |
|
1,473 |
|
641 |
|
728 |
|
222 |
|
(87 |
) |
7,687 |
|
(363 |
) |
7,324 |
|
|
Operating expenses (3) |
|
(1,875 |
) |
(296 |
) |
(29 |
) |
(954 |
) |
(372 |
) |
(366 |
) |
(128 |
) |
87 |
|
(3,933 |
) |
299 |
|
(3,634 |
) |
|
Underlying profit |
|
1,522 |
|
960 |
|
28 |
|
519 |
|
269 |
|
362 |
|
94 |
|
— |
|
3,754 |
|
(64 |
) |
3,690 |
|
|
Charge to provide for doubtful debts |
|
(115 |
) |
— |
|
1 |
|
(152 |
) |
(22 |
) |
17 |
|
1 |
|
— |
|
(270 |
) |
— |
|
(270 |
) |
|
Cash earnings before tax |
|
1,407 |
|
960 |
|
29 |
|
367 |
|
247 |
|
379 |
|
95 |
|
— |
|
3,484 |
|
(64 |
) |
3,420 |
|
|
Income tax expense |
|
(417 |
) |
(527 |
) |
— |
|
(110 |
) |
(80 |
) |
(93 |
) |
(31 |
) |
— |
|
(1,258 |
) |
12 |
|
(1,246 |
) |
|
Cash earnings before significant items, distributions and Minority Interest |
|
990 |
|
433 |
|
29 |
|
257 |
|
167 |
|
286 |
|
64 |
|
— |
|
2,226 |
|
(52 |
) |
2,174 |
|
|
Net profit - Minority Interest |
|
— |
|
(259 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(259 |
) |
— |
|
(259 |
) |
|
Cash earnings before significant items and distributions |
|
990 |
|
174 |
|
29 |
|
257 |
|
167 |
|
286 |
|
64 |
|
— |
|
1,967 |
|
(52 |
) |
1,915 |
|
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(127 |
) |
— |
|
(127 |
) |
|
Cash earnings before significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,840 |
|
(52 |
) |
1,788 |
|
|
(1) |
|
Other includes Group Funding, Corporate Centre and elimination entries within Australia Region. |
|
|
|
|
|
(2) |
|
Net life insurance income is the profit before tax of the life insurance and investment businesses of the statutory funds of the life insurance companies of the Group (excluding net interest income and investment earnings on shareholders retained profits & capital (IoRE) of the life insurance businesses). |
|
|
|
|
|
(3) |
|
Operating expenses excludes the life insurance expenses incorporated within net life insurance income (Wealth Management businesses only). |
6
SUMMARY OF DISPOSED OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
UK Discretionary |
|
Total |
|
|
|
|
Custom Fleet |
|
MLC |
|
Ireland |
|
Investment |
|
Disposed |
|
||||
|
Year ended |
|
Australia |
|
UK |
|
NZ |
|
Asia |
|
Banking |
|
Management |
|
Operations |
|
|
30 September 2005 |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Net Interest Income |
|
(55 |
) |
(14 |
) |
(25 |
) |
1 |
|
185 |
|
2 |
|
94 |
|
|
Net life insurance income excluding IoRE (1) |
|
— |
|
— |
|
— |
|
19 |
|
— |
|
— |
|
19 |
|
|
Investment earnings on shareholders retained profits & capital (IoRE) |
|
— |
|
— |
|
— |
|
18 |
|
— |
|
— |
|
18 |
|
|
Other Operating Income |
|
415 |
|
132 |
|
174 |
|
10 |
|
74 |
|
9 |
|
814 |
|
|
Net operating income |
|
360 |
|
118 |
|
149 |
|
48 |
|
259 |
|
11 |
|
945 |
|
|
Operating expenses (2) |
|
(325 |
) |
(113 |
) |
(140 |
) |
(15 |
) |
(198 |
) |
(8 |
) |
(799 |
) |
|
Underlying profit |
|
35 |
|
5 |
|
9 |
|
33 |
|
61 |
|
3 |
|
146 |
|
|
Charge to provide for doubtful debts |
|
— |
|
(1 |
) |
(2 |
) |
— |
|
(6 |
) |
— |
|
(9 |
) |
|
Cash earnings before tax |
|
35 |
|
4 |
|
7 |
|
33 |
|
55 |
|
3 |
|
137 |
|
|
Income tax expense |
|
(14 |
) |
(1 |
) |
(1 |
) |
— |
|
(18 |
) |
(1 |
) |
(35 |
) |
|
Cash earnings before significant items, distributions and Minority Interest |
|
21 |
|
3 |
|
6 |
|
33 |
|
37 |
|
2 |
|
102 |
|
|
Net profit - Minority Interest |
|
— |
|
— |
|
— |
|
(9 |
) |
— |
|
— |
|
(9 |
) |
|
Cash earnings before significant items and distributions |
|
21 |
|
3 |
|
6 |
|
24 |
|
37 |
|
2 |
|
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UK Discretionary |
|
Total |
|
|
|
|
Custom Fleet |
|
MLC |
|
Ireland |
|
Investment |
|
Disposed |
|
||||
|
Half year ended |
|
Australia |
|
UK |
|
NZ |
|
Asia |
|
Banking |
|
Management |
|
Operations |
|
|
31 March 2006 |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Net Interest Income |
|
(29 |
) |
(7 |
) |
(14 |
) |
— |
|
— |
|
1 |
|
(49 |
) |
|
Net life insurance income excluding IoRE (1) |
|
— |
|
— |
|
— |
|
20 |
|
— |
|
— |
|
20 |
|
|
Investment earnings on shareholders retained profits & capital (IoRE) |
|
— |
|
— |
|
— |
|
13 |
|
— |
|
— |
|
13 |
|
|
Other Operating Income |
|
215 |
|
69 |
|
87 |
|
3 |
|
— |
|
5 |
|
379 |
|
|
Net operating income |
|
186 |
|
62 |
|
73 |
|
36 |
|
— |
|
6 |
|
363 |
|
|
Operating expenses (2) |
|
(163 |
) |
(56 |
) |
(68 |
) |
(7 |
) |
— |
|
(5 |
) |
(299 |
) |
|
Underlying profit |
|
23 |
|
6 |
|
5 |
|
29 |
|
— |
|
1 |
|
64 |
|
|
Charge to provide for doubtful debts |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Cash earnings before tax |
|
23 |
|
6 |
|
5 |
|
29 |
|
— |
|
1 |
|
64 |
|
|
Income tax expense |
|
(7 |
) |
(1 |
) |
(2 |
) |
(1 |
) |
— |
|
(1 |
) |
(12 |
) |
|
Cash earnings before significant items, distributions and Minority Interest |
|
16 |
|
5 |
|
3 |
|
28 |
|
— |
|
— |
|
52 |
|
|
Net profit - Minority Interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Cash earnings before significant items and distributions |
|
16 |
|
5 |
|
3 |
|
28 |
|
— |
|
— |
|
52 |
|
|
(1) |
|
Net life insurance income is the profit before tax of the life insurance and investment businesses of the statutory funds of the life insurance companies of the Group (excluding net interest income and investment earnings on shareholders retained profits & capital (IoRE) of the life insurance businesses). |
|
|
|
|
|
(2) |
|
Operating expenses excludes the life insurance expenses incorporated within net life insurance income (Wealth Management businesses only). |
7
Management Discussion & Analysis - Australia Region
Australia Region
Summary - ongoing operations
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
Cash earnings before significant items |
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Australian Banking |
|
|
|
974 |
|
|
|
|
|
1,815 |
|
|
|
|
Wealth Management Australia |
|
|
|
174 |
|
|
|
|
|
403 |
|
|
|
|
Asia Banking |
|
|
|
1 |
|
|
|
|
|
5 |
|
|
|
|
Australia Region |
|
|
|
1,149 |
|
|
|
|
|
2,223 |
|
|
|
Australian Banking
Performance Summary - ongoing operations
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
|
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Net interest income |
|
|
|
2,344 |
|
|
|
|
|
3,862 |
|
|
|
|
Other operating income |
|
|
|
867 |
|
|
|
|
|
2,221 |
|
|
|
|
Total income |
|
|
|
3,211 |
|
|
|
|
|
6,083 |
|
|
|
|
Operating expenses |
|
|
|
(1,712 |
) |
|
|
|
|
(3,218 |
) |
|
|
|
Underlying profit |
|
|
|
1,499 |
|
|
|
|
|
2,865 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(115 |
) |
|
|
|
|
(257 |
) |
|
|
|
Cash earnings before tax |
|
|
|
1,384 |
|
|
|
|
|
2,608 |
|
|
|
|
Income tax expense |
|
|
|
(410 |
) |
|
|
|
|
(793 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
974 |
|
|
|
|
|
1,815 |
|
|
|
Key Performance Measures - ongoing operations
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
|
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Performance & profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualised) |
|
|
|
1.00 |
% |
|
|
|
|
0.99 |
% |
|
|
|
Cost to income ratio |
|
|
|
52.9 |
% |
|
|
|
|
52.5 |
% |
|
|
|
Cash earnings per average FTE (annualised) ($'000) |
|
|
|
108 |
|
|
|
|
|
101 |
|
|
|
|
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
|
2.42 |
% |
|
|
|
|
2.52 |
% |
|
|
|
Net interest margin (including acceptances) (1) |
|
|
|
2.42 |
% |
|
|
|
|
2.38 |
% |
|
|
|
Net interest spread |
|
|
|
2.36 |
% |
|
|
|
|
2.50 |
% |
|
|
|
Average balance sheet ($bn) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans and acceptances |
|
|
|
194.5 |
|
|
|
|
|
174.6 |
|
|
|
|
Interest-earning assets |
|
|
|
194.3 |
|
|
|
|
|
153.4 |
|
|
|
|
Interest-earning assets (including acceptances) (1) |
|
|
|
194.3 |
|
|
|
|
|
181.0 |
|
|
|
|
Retail deposits |
|
|
|
82.0 |
|
|
|
|
|
75.1 |
|
|
|
|
(1) |
|
To assist with meaningful comparison between periods, the net interest margin and average interest earning assets data has been adjusted to include bill acceptances in September 2005. |
8
|
|
|
As at |
|
||||
|
|
|
30 Sep 06 |
|
31 Mar 06 |
|
30 Sep 05 |
|
|
Full-time equivalent employees (FTE) |
|
|
|
18,132 |
|
17,598 |
|
|
Asset quality |
|
|
|
|
|
|
|
|
Gross non-accrual loans ($m) |
|
|
|
430 |
|
372 |
|
|
Gross loans and acceptances ($bn) |
|
|
|
198.9 |
|
187.5 |
|
|
Gross non-accrual loans to gross loans and acceptances |
|
|
|
0.22 |
% |
0.21 |
% |
|
Specific provision to gross impaired assets |
|
|
|
25.0 |
% |
27.8 |
% |
|
|
|
|
|
|
|
|
|
|
Market share (%) (1) |
|
|
|
|
|
|
|
|
Housing |
|
|
|
14.08 |
|
14.19 |
|
|
Business (including Institutional Markets & Services) |
|
|
|
18.71 |
|
18.49 |
|
|
Other personal |
|
|
|
15.52 |
|
15.50 |
|
|
Retail deposits (Personal & Business) |
|
|
|
14.22 |
|
13.76 |
|
|
(1) |
|
Source: Reserve Bank of Australia (August 2006 data) |
9
Wealth Management Australia
Performance Summary
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
|||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
|
|
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
|
Investments |
|
|
|
80 |
|
|
|
|
|
179 |
|
|
|
|
|
Insurance |
|
|
|
65 |
|
|
|
|
|
123 |
|
|
|
|
|
Profit from operations (after tax) |
|
|
|
145 |
|
|
|
|
|
302 |
|
|
|
|
|
Investment earnings on shareholders' retained profits and capital from life businesses (IoRE) |
|
|
|
29 |
|
|
|
|
|
101 |
|
|
|
|
|
Cash earnings before significant items |
|
|
|
174 |
|
|
|
|
|
403 |
|
|
|
|
Key Performance Measures
|
|
|
As at |
|
||||
|
|
|
30 Sep 06 |
|
31 Mar 06 |
|
30 Sep 05 |
|
|
Full-time equivalent employees (FTEs) (No.) |
|
|
|
3,995 |
|
3,842 |
|
|
Financial advisers (No.) |
|
|
|
|
|
|
|
|
Bank channels |
|
|
|
476 |
|
466 |
|
|
Aligned channels |
|
|
|
821 |
|
827 |
|
|
Funds Under Management & Administration ($bn) |
|
|
|
90.5 |
|
84.2 |
|
|
Annual InForce Premiums (Group & Retail) ($m) |
|
|
|
663.2 |
|
633.4 |
|
|
Market share - Australia % as at |
|
|
|
31 Dec 05 |
|
30 Jun 05 |
|
|
Total Master Funds (1) |
|
|
|
16.2 |
|
16.4 |
|
|
Retail funds management (ex cash mgmt) (1) |
|
|
|
12.8 |
|
12.7 |
|
|
Retail risk insurance (2) |
|
|
|
15.0 |
|
15.0 |
|
|
New retail risk annual premiums (2) |
|
|
|
12.0 |
|
12.1 |
|
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
|||||
|
Performance & profitability |
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
|
Cost to funds under management (bps) |
|
|
|
42 |
|
|
|
|
|
45 |
|
|
|
|
|
Cost to premium income (%) |
|
|
|
16 |
|
|
|
|
|
15 |
|
|
|
|
|
(1) |
|
Source: Plan for Life Australian Retail & Wholesale Investments Market Share & Dynamics Report as at 30 June 2006 |
|
|
|
|
|
(2) |
|
Source: DEXX&R Life Analysis Reports as at 30 June 2006. Retail risk insurance includes term, trauma and disability insurance. |
10
Supplementary Performance Summary (includes ongoing and disposed operations - eg. includes Custom Fleet and MLC)
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
Cash earnings before significant items |
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Australian Banking |
|
|
|
990 |
|
|
|
|
|
1,836 |
|
|
|
|
Wealth Management Australia |
|
|
|
174 |
|
|
|
|
|
403 |
|
|
|
|
Asia Banking and Wealth Management |
|
|
|
29 |
|
|
|
|
|
29 |
|
|
|
|
Australia Region |
|
|
|
1,193 |
|
|
|
|
|
2,268 |
|
|
|
Australian Banking
Performance Summary
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
|
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Net interest income |
|
|
|
2,315 |
|
|
|
|
|
3,807 |
|
|
|
|
Other operating income |
|
|
|
1,082 |
|
|
|
|
|
2,636 |
|
|
|
|
Total income |
|
|
|
3,397 |
|
|
|
|
|
6,443 |
|
|
|
|
Operating expenses |
|
|
|
(1,875 |
) |
|
|
|
|
(3,543 |
) |
|
|
|
Underlying profit |
|
|
|
1,522 |
|
|
|
|
|
2,900 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(115 |
) |
|
|
|
|
(257 |
) |
|
|
|
Cash earnings before tax |
|
|
|
1,407 |
|
|
|
|
|
2,643 |
|
|
|
|
Income tax expense |
|
|
|
(417 |
) |
|
|
|
|
(807 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
990 |
|
|
|
|
|
1,836 |
|
|
|
11
Management Discussion & Analysis - UK Region
UK Region
Performance Summary - ongoing operations
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
Australian dollars |
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Net interest income |
|
|
|
889 |
|
|
|
|
|
1,621 |
|
|
|
|
Other operating income |
|
|
|
516 |
|
|
|
|
|
1,034 |
|
|
|
|
Total income |
|
|
|
1,405 |
|
|
|
|
|
2,655 |
|
|
|
|
Operating expenses |
|
|
|
(893 |
) |
|
|
|
|
(1,714 |
) |
|
|
|
Underlying profit |
|
|
|
512 |
|
|
|
|
|
941 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(152 |
) |
|
|
|
|
(209 |
) |
|
|
|
Cash earnings before tax |
|
|
|
360 |
|
|
|
|
|
732 |
|
|
|
|
Income tax expense |
|
|
|
(108 |
) |
|
|
|
|
(238 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
252 |
|
|
|
|
|
494 |
|
|
|
|
Pounds sterling |
|
£m |
|
£m |
|
% |
|
£m |
|
£m |
|
% |
|
|
Net interest income |
|
|
|
377 |
|
|
|
|
|
671 |
|
|
|
|
Other operating income |
|
|
|
219 |
|
|
|
|
|
427 |
|
|
|
|
Total income |
|
|
|
596 |
|
|
|
|
|
1,098 |
|
|
|
|
Operating expenses |
|
|
|
(379 |
) |
|
|
|
|
(709 |
) |
|
|
|
Underlying profit |
|
|
|
217 |
|
|
|
|
|
389 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(65 |
) |
|
|
|
|
(88 |
) |
|
|
|
Cash earnings before tax |
|
|
|
152 |
|
|
|
|
|
301 |
|
|
|
|
Income tax expense |
|
|
|
(46 |
) |
|
|
|
|
(98 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
106 |
|
|
|
|
|
203 |
|
|
|
12
Key Performance Measures - ongoing operations
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
|
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Performance & profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualised) |
|
|
|
0.92 |
% |
|
|
|
|
1.02 |
% |
|
|
|
Cost to income ratio |
|
|
|
62.7 |
% |
|
|
|
|
63.4 |
% |
|
|
|
Cash earnings per average FTE (annualised) (£'000) |
|
|
|
23 |
|
|
|
|
|
21 |
|
|
|
|
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
|
3.68 |
% |
|
|
|
|
3.83 |
% |
|
|
|
Net interest spread (1) |
|
|
|
3.04 |
% |
|
|
|
|
3.42 |
% |
|
|
|
Average balance sheet (£bn) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans and acceptances |
|
|
|
19.5 |
|
|
|
|
|
16.4 |
|
|
|
|
Interest-earning assets |
|
|
|
20.6 |
|
|
|
|
|
17.5 |
|
|
|
|
Retail deposits |
|
|
|
12.4 |
|
|
|
|
|
11.3 |
|
|
|
|
(1) |
|
To reflect a change to the treatment of inter-company liabilities, the September 2005 full year net interest rate spread has been restated upwards by 15 basis points. There has been no impact to Group net interest spreads |
|
|
|
|
|
|
|
|
|
As at |
|
||||
|
|
|
|
|
|
|
|
|
Sep 06 |
|
Mar 06 |
|
Sep 05 |
|
|
Full-time equivalent employees (FTE) |
|
|
|
|
|
|
|
|
|
9,094 |
|
9,326 |
|
|
Asset quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross non-accrual loans (£m) |
|
|
|
|
|
|
|
|
|
57 |
|
48 |
|
|
Gross loans and acceptances (£bn) |
|
|
|
|
|
|
|
|
|
21.1 |
|
18.5 |
|
|
Gross non-accrual loans to gross loans and acceptances |
|
|
|
|
|
|
|
|
|
0.27 |
% |
0.25 |
% |
|
Specific provision to gross impaired assets |
|
|
|
|
|
|
|
|
|
20.7 |
% |
78.1 |
% |
|
Financial advisers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank channels |
|
|
|
|
|
|
|
|
|
114 |
|
115 |
|
|
Aligned channels |
|
|
|
|
|
|
|
|
|
52 |
|
43 |
|
|
Financial advisers (no.) |
|
|
|
|
|
|
|
|
|
166 |
|
158 |
|
|
Funds under management (£m) |
|
|
|
|
|
|
|
|
|
1,184 |
|
1,028 |
|
13
Supplementary Performance Summary (includes ongoing and disposed operations - eg includes Custom Fleet and the Irish Banks)
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
Australian dollars |
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Net interest income |
|
|
|
883 |
|
|
|
|
|
1,794 |
|
|
|
|
Other operating income |
|
|
|
590 |
|
|
|
|
|
1,249 |
|
|
|
|
Total income |
|
|
|
1,473 |
|
|
|
|
|
3,043 |
|
|
|
|
Operating expenses |
|
|
|
(954 |
) |
|
|
|
|
(2,033 |
) |
|
|
|
Underlying profit |
|
|
|
519 |
|
|
|
|
|
1,010 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(152 |
) |
|
|
|
|
(216 |
) |
|
|
|
Cash earnings before tax |
|
|
|
367 |
|
|
|
|
|
794 |
|
|
|
|
Income tax expense |
|
|
|
(110 |
) |
|
|
|
|
(258 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
257 |
|
|
|
|
|
536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds sterling |
|
£m |
|
£m |
|
% |
|
£m |
|
£m |
|
% |
|
|
Net interest income |
|
|
|
374 |
|
|
|
|
|
741 |
|
|
|
|
Other operating income |
|
|
|
250 |
|
|
|
|
|
517 |
|
|
|
|
Total income |
|
|
|
624 |
|
|
|
|
|
1,258 |
|
|
|
|
Operating expenses |
|
|
|
(405 |
) |
|
|
|
|
(841 |
) |
|
|
|
Underlying profit |
|
|
|
219 |
|
|
|
|
|
417 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(65 |
) |
|
|
|
|
(90 |
) |
|
|
|
Cash earnings before tax |
|
|
|
154 |
|
|
|
|
|
327 |
|
|
|
|
Income tax expense |
|
|
|
(46 |
) |
|
|
|
|
(107 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
108 |
|
|
|
|
|
220 |
|
|
|
14
Management Discussion & Analysis - New Zealand Region
New Zealand Region
Performance Summary - ongoing operations
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
Australian dollars |
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Net interest income |
|
|
|
415 |
|
|
|
|
|
764 |
|
|
|
|
Other operating income |
|
|
|
162 |
|
|
|
|
|
378 |
|
|
|
|
Total income |
|
|
|
577 |
|
|
|
|
|
1,142 |
|
|
|
|
Operating expenses |
|
|
|
(313 |
) |
|
|
|
|
(645 |
) |
|
|
|
Underlying profit |
|
|
|
264 |
|
|
|
|
|
497 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(22 |
) |
|
|
|
|
(36 |
) |
|
|
|
Cash earnings before tax |
|
|
|
242 |
|
|
|
|
|
461 |
|
|
|
|
Income tax expense |
|
|
|
(78 |
) |
|
|
|
|
(150 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
164 |
|
|
|
|
|
311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Zealand dollars |
|
NZ$m |
|
NZ$m |
|
% |
|
NZ$m |
|
NZ$m |
|
% |
|
|
Net interest income |
|
|
|
453 |
|
|
|
|
|
829 |
|
|
|
|
Other operating income |
|
|
|
178 |
|
|
|
|
|
410 |
|
|
|
|
Total income |
|
|
|
631 |
|
|
|
|
|
1,239 |
|
|
|
|
Operating expenses |
|
|
|
(341 |
) |
|
|
|
|
(699 |
) |
|
|
|
Underlying profit |
|
|
|
290 |
|
|
|
|
|
540 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(25 |
) |
|
|
|
|
(39 |
) |
|
|
|
Cash earnings before tax |
|
|
|
265 |
|
|
|
|
|
501 |
|
|
|
|
Income tax expense |
|
|
|
(86 |
) |
|
|
|
|
(163 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
179 |
|
|
|
|
|
338 |
|
|
|
15
Key Performance Measures - ongoing operations
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
|
|
Change on |
|
|
|
Change on |
|
||||
|
|
|
Half Year to |
|
Mar 06 |
|
Year to |
|
Sep 05 |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
% |
|
Sep 06 |
|
Sep 05 |
|
% |
|
|
Performance & profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualised) |
|
|
|
1.02 |
% |
|
|
|
|
1.07 |
% |
|
|
|
Cost to income ratio |
|
|
|
54.0 |
% |
|
|
|
|
56.4 |
% |
|
|
|
Cash earnings per average FTE (annualised) (NZ$'000) |
|
|
|
80 |
|
|
|
|
|
76 |
|
|
|
|
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (1) |
|
|
|
2.64 |
% |
|
|
|
|
2.67 |
% |
|
|
|
Net interest spread (1) |
|
|
|
2.30 |
% |
|
|
|
|
2.31 |
% |
|
|
|
Average balance sheet (NZ$bn) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans and acceptances |
|
|
|
33.7 |
|
|
|
|
|
30.4 |
|
|
|
|
Interest-earning assets |
|
|
|
34.4 |
|
|
|
|
|
31.1 |
|
|
|
|
Retail deposits |
|
|
|
18.8 |
|
|
|
|
|
17.8 |
|
|
|
|
(1) |
|
Net interest margins and spreads have been restated for September 2005 to include only interest bearing assets and liabilities. |
|
|
|
|
|
|
|
|
|
As at |
|
||||
|
|
|
|
|
|
|
|
|
30 Sep 06 |
|
31 Mar 06 |
|
30 Sep 05 |
|
|
Full-time equivalent employees (FTE) |
|
|
|
|
|
|
|
|
|
4,510 |
|
4,525 |
|
|
Asset quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross non-accrual loans (NZ$m) |
|
|
|
|
|
|
|
|
|
70 |
|
106 |
|
|
Gross loans and acceptances (NZ$bn) |
|
|
|
|
|
|
|
|
|
34.6 |
|
32.4 |
|
|
Gross non-accrual loans to gross loans and acceptances |
|
|
|
|
|
|
|
|
|
0.20 |
% |
0.33 |
% |
|
Specific provision to gross impaired assets |
|
|
|
|
|
|
|
|
|
32.8 |
% |
31.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market share (%) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housing |
|
|
|
|
|
|
|
|
|
16.2 |
|
16.2 |
|
|
Agribusiness |
|
|
|
|
|
|
|
|
|
17.9 |
|
17.9 |
|
|
Cards |
|
|
|
|
|
|
|
|
|
30.6 |
|
30.5 |
|
|
Retail deposits (personal & business) |
|
|
|
|
|
|
|
|
|
18.0 |
|
19.1 |
|
(1) Source: RBNZ
16
Supplementary Performance Summary (includes ongoing and disposed operations - eg includes Custom Fleet)
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
Australian dollars |
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Net interest income |
|
|
|
401 |
|
|
|
|
|
739 |
|
|
|
|
Other operating income |
|
|
|
249 |
|
|
|
|
|
552 |
|
|
|
|
Total income |
|
|
|
650 |
|
|
|
|
|
1,291 |
|
|
|
|
Operating expenses |
|
|
|
(381 |
) |
|
|
|
|
(785 |
) |
|
|
|
Underlying profit |
|
|
|
269 |
|
|
|
|
|
506 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(22 |
) |
|
|
|
|
(38 |
) |
|
|
|
Cash earnings before tax |
|
|
|
247 |
|
|
|
|
|
468 |
|
|
|
|
Income tax expense |
|
|
|
(80 |
) |
|
|
|
|
(151 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
167 |
|
|
|
|
|
317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Zealand dollars |
|
NZ$m |
|
NZ$m |
|
% |
|
NZ$m |
|
NZ$m |
|
% |
|
|
Net interest income |
|
|
|
438 |
|
|
|
|
|
802 |
|
|
|
|
Other operating income |
|
|
|
273 |
|
|
|
|
|
598 |
|
|
|
|
Total income |
|
|
|
711 |
|
|
|
|
|
1,400 |
|
|
|
|
Operating expenses |
|
|
|
(415 |
) |
|
|
|
|
(851 |
) |
|
|
|
Underlying profit |
|
|
|
296 |
|
|
|
|
|
549 |
|
|
|
|
Charge to provide for doubtful debts |
|
|
|
(25 |
) |
|
|
|
|
(41 |
) |
|
|
|
Cash earnings before tax |
|
|
|
271 |
|
|
|
|
|
508 |
|
|
|
|
Income tax expense |
|
|
|
(88 |
) |
|
|
|
|
(164 |
) |
|
|
|
Cash earnings before significant items |
|
|
|
183 |
|
|
|
|
|
344 |
|
|
|
17
Management Discussion & Analysis - nabCapital
nabCapital
Performance Summary
|
|
|
|
|
Fav / (Unfav) |
|
||||
|
|
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
Sep 05 |
|
|
|
|
|
|
|
|
|
|
Ex FX (1) |
|
|
|
|
$m |
|
$m |
|
% |
|
% |
|
|
Net interest income |
|
|
|
502 |
|
|
|
|
|
|
Other operating income |
|
|
|
927 |
|
|
|
|
|
|
Total income |
|
|
|
1,429 |
|
|
|
|
|
|
Operating expenses |
|
|
|
(742 |
) |
|
|
|
|
|
Underlying profit |
|
|
|
687 |
|
|
|
|
|
|
(Charge)/Write-back to provide for doubtful debts |
|
|
|
(24 |
) |
|
|
|
|
|
Cash earnings before tax |
|
|
|
663 |
|
|
|
|
|
|
Income tax expense |
|
|
|
(86 |
) |
|
|
|
|
|
Cash earnings before significant items |
|
|
|
577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fav / (Unfav) |
|
||||
|
|
|
Half Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Mar 06 |
|
|
|
|
|
|
|
|
|
|
Ex FX (1) |
|
|
|
|
$m |
|
$m |
|
% |
|
% |
|
|
Net interest income |
|
|
|
434 |
|
|
|
|
|
|
Other operating income |
|
|
|
294 |
|
|
|
|
|
|
Total income |
|
|
|
728 |
|
|
|
|
|
|
Operating expenses |
|
|
|
(366 |
) |
|
|
|
|
|
Underlying profit |
|
|
|
362 |
|
|
|
|
|
|
(Charge)/Write-back to provide for doubtful debts |
|
|
|
17 |
|
|
|
|
|
|
Cash earnings before tax |
|
|
|
379 |
|
|
|
|
|
|
Income tax expense |
|
|
|
(93 |
) |
|
|
|
|
|
Cash earnings before significant items |
|
|
|
286 |
|
|
|
|
|
(1) Change expressed at constant exchange rates.
18
Key Performance Measures
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
|
|
|
|
Change on |
|
|
|
|
|
Change on |
|
|
|
|
Half Year to |
|
Mar 06 |
|
Year to |
|
Sep 05 |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
% |
|
Sep 06 |
|
Sep 05 |
|
% |
|
|
Performance & profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average Risk Weighted assets (annualised) (1) |
|
|
|
0.89 |
% |
|
|
|
|
0.78 |
% |
|
|
|
Return on average assets (annualised) |
|
|
|
0.37 |
% |
|
|
|
|
0.36 |
% |
|
|
|
Return on average external assets (annualised) |
|
|
|
0.49 |
% |
|
|
|
|
0.46 |
% |
|
|
|
Cost to income ratio |
|
|
|
50.3 |
% |
|
|
|
|
51.9 |
% |
|
|
|
Cash earnings per average FTE (annualised) ($'000) |
|
|
|
301 |
|
|
|
|
|
292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
0.64 |
% |
|
|
|
|
0.37 |
% |
|
|
|
Average balance sheet ($bn) |
|
|
|
|
|
|
|
|
|
40.4 |
|
|
|
|
Core lending (3) |
|
|
|
37.2 |
|
|
|
|
|
45.7 |
|
|
|
|
Gross loans and acceptances (4) |
|
|
|
41.7 |
|
|
|
|
|
100.1 |
|
|
|
|
Interest-earning assets - external |
|
|
|
97.1 |
|
|
|
|
|
36.5 |
|
|
|
|
Interest-earning assets - internal (5) |
|
|
|
38.5 |
|
|
|
|
|
136.6 |
|
|
|
|
Interest-earning assets - total |
|
|
|
135.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Fav / (Unfav) |
|
||
|
|
|
|
|
As at |
|
Change on |
|
||||||
|
|
|
|
|
30 Sep 06 |
|
31 Mar 06 |
|
30 Sep 05 |
|
Mar 06 |
|
Sep 05 |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
% |
|
|
Spot Balance sheet ($bn) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets - external |
|
|
|
|
|
90.8 |
|
80.5 |
|
|
|
|
|
|
Interest earning assets - internal (5) |
|
|
|
|
|
39.7 |
|
32.8 |
|
|
|
|
|
|
Interest earning assets - total |
|
|
|
|
|
130.5 |
|
113.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk weighted assets (1) |
|
|
|
|
|
58.8 |
|
69.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees (FTE) |
|
|
|
|
|
1,944 |
|
1,920 |
|
|
|
|
|
|
Asset quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross non-accrual loans ($m) |
|
|
|
|
|
331 |
|
434 |
|
|
|
|
|
|
Gross loans and acceptances ($bn) |
|
|
|
|
|
41.1 |
|
41.8 |
|
|
|
|
|
|
Gross non-accrual loans to gross loans and acceptances |
|
|
|
|
|
0.81 |
% |
1.04 |
% |
|
|
|
|
|
Specific provision to gross impaired assets |
|
|
|
|
|
31.7 |
% |
29.4 |
% |
|
|
|
|
|
|
Risk weighted Assets are calculated on internal model rather than standard model to enable a more representative comparison between periods. |
|
|
|
|
|
|
(2) |
|
Impact to the March 2006 half margin arising under AIFRS was an increase of 19 basis points. |
|
|
|
|
|
(3) |
|
Core lending includes loans and advances at amortised cost and at fair value. |
|
|
|
|
|
(4) |
|
Gross loans and acceptances represents core lending and bill acceptances. |
|
|
|
|
|
(5) |
|
Internal interest-earning assets include short-term funding of the Group's operations. |
19
Management Discussion & Analysis - Group Funding and Corporate Centre
OTHER (GROUP FUNDING & CORPORATE CENTRE)
Performance Summary
|
|
|
|
|
|
|
Fav / |
|
|
|
|
|
Fav / |
|
|
|
|
|
|
|
|
(Unfav) |
|
|
|
|
|
(Unfav) |
|
|
|
|
Half Year to |
|
Change on |
|
Year to |
|
Change on |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
Sep 05 |
|
|
Cash Earnings before significant items |
|
$m |
|
$m |
|
% |
|
$m |
|
$m |
|
% |
|
|
Group Funding |
|
|
|
86 |
|
|
|
|
|
2 |
|
|
|
|
Corporate Centre |
|
|
|
(22 |
) |
|
|
|
|
(243 |
) |
|
|
|
Other |
|
|
|
64 |
|
|
|
|
|
(241 |
) |
|
|
20
Financial Report - Note 3: Revenue
3. REVENUE
|
|
|
Half Year to |
|
Year to |
|
||||
|
|
|
Sep 06 |
|
Mar 06 |
|
Sep 06 |
|
Sep 05 |
|
|
|
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Gains less losses on financial instruments at fair value |
|
|
|
|
|
|
|
|
|
|
Trading income |
|
|
|
227 |
|
|
|
639 |
|
|
Other financial instruments designated in hedge relationships |
|
|
|
(31 |
) |
|
|
— |
|
|
Other fair value movements |
|
|
|
7 |
|
|
|
— |
|
|
|
|
|
|
203 |
|
|
|
639 |
|
21
Additional Information: Divisional Cash Earnings
DIVISIONAL CASH EARNINGS
|
|
|
Australia Region |
|
UK |
|
NZ |
|
nabCapital |
|
Other(1) |
|
Elimina— |
|
Total |
|
Disposed |
|
Total |
|
||||
|
Half year ended |
|
Banking |
|
WM |
|
Asia |
|
Region |
|
Region |
|
|
|
|
|
tions |
|
Group |
|
Operations |
|
Ongoing |
|
|
30 September 2005 |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Net interest income |
|
1,965 |
|
— |
|
13 |
|
813 |
|
372 |
|
244 |
|
65 |
|
— |
|
3,472 |
|
47 |
|
3,519 |
|
|
Net life insurance income excluding IoRE (2) |
|
— |
|
1,026 |
|
5 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,031 |
|
(5 |
) |
1,026 |
|
|
Investment earnings on shareholders retained profits & capital (IoRE) |
|
— |
|
72 |
|
8 |
|
— |
|
3 |
|
— |
|
— |
|
— |
|
83 |
|
(8 |
) |
75 |
|
|
Other operating income |
|
1,360 |
|
330 |
|
10 |
|
631 |
|
260 |
|
423 |
|
81 |
|
(108 |
) |
2,987 |
|
(375 |
) |
2,612 |
|
|
Net operating income |
|
3,325 |
|
1,428 |
|
36 |
|
1,444 |
|
635 |
|
667 |
|
146 |
|
(108 |
) |
7,573 |
|
(341 |
) |
7,232 |
|
|
Operating expenses (3) |
|
(1,890 |
) |
(354 |
) |
(21 |
) |
(967 |
) |
(367 |
) |
(372 |
) |
(230 |
) |
108 |
|
(4,093 |
) |
308 |
|
(3,785 |
) |
|
Underlying profit |
|
1,435 |
|
1,074 |
|
15 |
|
477 |
|
268 |
|
295 |
|
(84 |
) |
— |
|
3,480 |
|
(33 |
) |
3,447 |
|
|
Charge to provide for doubtful debts |
|
(127 |
) |
— |
|
— |
|
(126 |
) |
(26 |
) |
24 |
|
2 |
|
— |
|
(253 |
) |
1 |
|
(252 |
) |
|
Cash earnings before tax |
|
1,308 |
|
1,074 |
|
15 |
|
351 |
|
242 |
|
319 |
|
(82 |
) |
— |
|
3,227 |
|
(32 |
) |
3,195 |
|
|
Income tax expense |
|
(423 |
) |
(418 |
) |
2 |
|
(122 |
) |
(78 |
) |
(40 |
) |
18 |
|
— |
|
(1,061 |
) |
7 |
|
(1,054 |
) |
|
Cash earnings before significant items, distributions and Minority Interest |
|
885 |
|
656 |
|
17 |
|
229 |
|
164 |
|
279 |
|
(64 |
) |
— |
|
2,166 |
|
(25 |
) |
2,141 |
|
|
Net profit - Minority Interest |
|
— |
|
(454 |
) |
(2 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
(456 |
) |
2 |
|
(454 |
) |
|
Cash earnings before significant items and distributions |
|
885 |
|
202 |
|
15 |
|
229 |
|
164 |
|
279 |
|
(64 |
) |
— |
|
1,710 |
|
(23 |
) |
1,687 |
|
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(109 |
) |
|
|
(109 |
) |
|
Cash earnings before significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,601 |
|
(23 |
) |
1,578 |
|
|
(1) |
|
Other includes Group Funding, Corporate Centre and elimination entries within Total Australia. |
|
|
|
|
|
(2) |
|
Net life insurance income is the profit before tax of the life insurance and investment businesses of the statutory funds of the life insurance companies of the Group (excluding net interest income and investment earnings on shareholders retained profits & capital (IoRE) of the life insurance businesses). |
|
|
|
|
|
(3) |
|
Operating expenses excludes the life insurance expenses incorporated within net life insurance income (Wealth Management businesses only). |
22
Additional Information: Divisional Cash Earnings
|
|
|
Australia Region |
|
UK |
|
NZ |
|
nabCapital |
|
Other(1) |
|
Elimina- |
|
Total |
|
Disposed |
|
Total |
|
||||
|
Half year ended |
|
Banking |
|
WM |
|
Asia |
|
Region |
|
Region |
|
|
|
|
|
tions |
|
Group |
|
Operations |
|
Ongoing |
|
|
31 March 2005 |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Net interest income |
|
1,842 |
|
5 |
|
12 |
|
981 |
|
367 |
|
258 |
|
7 |
|
— |
|
3,472 |
|
(141 |
) |
3,331 |
|
|
Net life insurance income excluding IoRE (2) |
|
— |
|
472 |
|
14 |
|
— |
|
9 |
|
— |
|
— |
|
— |
|
495 |
|
(14 |
) |
481 |
|
|
Investment earnings on shareholders retained profits & capital (IoRE) |
|
— |
|
52 |
|
10 |
|
— |
|
1 |
|
— |
|
— |
|
— |
|
63 |
|
(10 |
) |
53 |
|
|
Other operating income |
|
1,276 |
|
328 |
|
4 |
|
618 |
|
262 |
|
504 |
|
36 |
|
(125 |
) |
2,903 |
|
(439 |
) |
2,464 |
|
|
Net operating income |
|
3,118 |
|
857 |
|
40 |
|
1,599 |
|
639 |
|
762 |
|
43 |
|
(125 |
) |
6,933 |
|
(604 |
) |
6,329 |
|
|
Operating expenses (3) |
|
(1,653 |
) |
(303 |
) |
(18 |
) |
(1,066 |
) |
(401 |
) |
(370 |
) |
(216 |
) |
125 |
|
(3,902 |
) |
491 |
|
(3,411 |
) |
|
Underlying profit |
|
1,465 |
|
554 |
|
22 |
|
533 |
|
238 |
|
392 |
|
(173 |
) |
— |
|
3,031 |
|
(113 |
) |
2,918 |
|
|
Charge to provide for doubtful debts |
|
(130 |
) |
— |
|
— |
|
(90 |
) |
(12 |
) |
(48 |
) |
(1 |
) |
— |
|
(281 |
) |
8 |
|
(273 |
) |
|
Cash earnings before tax |
|
1,335 |
|
554 |
|
22 |
|
443 |
|
226 |
|
344 |
|
(174 |
) |
— |
|
2,750 |
|
(105 |
) |
2,645 |
|
|
Income tax expense |
|
(384 |
) |
(206 |
) |
(1 |
) |
(136 |
) |
(73 |
) |
(46 |
) |
(3 |
) |
— |
|
(849 |
) |
28 |
|
(821 |
) |
|
Cash earnings before significant items, distributions and Minority Interest |
|
951 |
|
348 |
|
21 |
|
307 |
|
153 |
|
298 |
|
(177 |
) |
— |
|
1,901 |
|
(77 |
) |
1,824 |
|
|
Net profit - Minority Interest |
|
— |
|
(147 |
) |
(7 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
(154 |
) |
7 |
|
(147 |
) |
|
Cash earnings before significant items and distributions |
|
951 |
|
201 |
|
14 |
|
307 |
|
153 |
|
298 |
|
(177 |
) |
— |
|
1,747 |
|
(70 |
) |
1,677 |
|
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(95 |
) |
— |
|
(95 |
) |
|
Cash earnings before significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,652 |
|
(70 |
) |
1,582 |
|
|
(1) |
|
Other includes Group Funding, Corporate Centre and elimination entries within Total Australia. |
|
|
|
|
|
(2) |
|
Net life insurance income is the profit before tax of the life insurance and investment businesses of the statutory funds of the life insurance companies of the Group (excluding net interest income and investment earnings on shareholders retained profits & capital (IoRE) of the life insurance businesses). |
|
|
|
|
|
(3) |
|
Operating expenses excludes the life insurance expenses incorporated within net life insurance income (Wealth Management businesses only). |
23
Additional Information: Summary of Disposed Operations
SUMMARY OF DISPOSED OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
UK Discretionary |
|
Total |
|
|
|
|
Custom Fleet |
|
|
|
Ireland |
|
Investment |
|
Disposed |
|
||||
|
Half year ended |
|
Australia |
|
UK |
|
NZ |
|
MLC |
|
Banking |
|
Management |
|
Operations |
|
|
30 September 2005 |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Net Interest Income |
|
(28 |
) |
(7 |
) |
(13 |
) |
— |
|
— |
|
1 |
|
(47 |
) |
|
Net life insurance income excluding IoRE (1) |
|
— |
|
— |
|
— |
|
5 |
|
— |
|
— |
|
5 |
|
|
Investment earnings on shareholders retained profits & capital (IoRE) |
|
— |
|
— |
|
— |
|
8 |
|
— |
|
— |
|
8 |
|
|
Other Operating Income |
|
206 |
|
71 |
|
86 |
|
8 |
|
— |
|
4 |
|
375 |
|
|
Net operating income |
|
178 |
|
64 |
|
73 |
|
21 |
|
— |
|
5 |
|
341 |
|
|
Operating expenses (2) |
|
(169 |
) |
(61 |
) |
(72 |
) |
(5 |
) |
— |
|
(1 |
) |
(308 |
) |
|
Underlying profit |
|
9 |
|
3 |
|
1 |
|
16 |
|
— |
|
4 |
|
33 |
|
|
Charge to provide for doubtful debts |
|
1 |
|
(1 |
) |
(1 |
) |
— |
|
— |
|
— |
|
(1 |
) |
|
Cash earnings before tax |
|
10 |
|
2 |
|
— |
|
16 |
|
— |
|
4 |
|
32 |
|
|
Income tax expense |
|
(6 |
) |
(1 |
) |
1 |
|
— |
|
— |
|
(1 |
) |
(7 |
) |
|
Cash earnings before significant items, distributions and Minority Interest |
|
4 |
|
1 |
|
1 |
|
16 |
|
— |
|
3 |
|
25 |
|
|
Net profit - Minority Interest |
|
— |
|
— |
|
— |
|
(2 |
) |
— |
|
— |
|
(2 |
) |
|
Cash earnings before significant items and distributions |
|
4 |
|
1 |
|
1 |
|
14 |
|
— |
|
3 |
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UK Discretionary |
|
Total |
|
|
|
|
Custom Fleet |
|
|
|
Ireland |
|
Investment |
|
Disposed |
|
||||
|
Half year ended |
|
Australia |
|
UK |
|
NZ |
|
MLC |
|
Banking |
|
Management |
|
Operations |
|
|
31 March 2005 |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
$m |
|
|
Net Interest Income |
|
(27 |
) |
(7 |
) |
(12 |
) |
1 |
|
185 |
|
1 |
|
141 |
|
|
Net life insurance income excluding IoRE (1) |
|
— |
|
— |
|
— |
|
14 |
|
— |
|
— |
|
14 |
|
|
Investment earnings on shareholders retained profits & capital (IoRE) |
|
— |
|
— |
|
— |
|
10 |
|
— |
|
— |
|
10 |
|
|
Other Operating Income |
|
209 |
|
61 |
|
88 |
|
2 |
|
74 |
|
5 |
|
439 |
|
|
Net operating income |
|
182 |
|
54 |
|
76 |
|
27 |
|
259 |
|
6 |
|
604 |
|
|
Operating expenses (2) |
|
(156 |
) |
(52 |
) |
(68 |
) |
(10 |
) |
(198 |
) |
(7 |
) |
(491 |
) |
|
Underlying profit |
|
26 |
|
2 |
|
8 |
|
17 |
|
61 |
|
(1 |
) |
113 |
|
|
Charge to provide for doubtful debts |
|
(1 |
) |
— |
|
(1 |
) |
— |
|
(6 |
) |
— |
|
(8 |
) |
|
Cash earnings before tax |
|
25 |
|
2 |
|
7 |
|
17 |
|
55 |
|
(1 |
) |
105 |
|
|
Income tax expense |
|
(8 |
) |
— |
|
(2 |
) |
— |
|
(18 |
) |
— |
|
(28 |
) |
|
Cash earnings before significant items, distributions and Minority Interest |
|
17 |
|
2 |
|
5 |
|
17 |
|
37 |
|
(1 |
) |
77 |
|
|
Net profit - Minority Interest |
|
— |
|
— |
|
— |
|
(7 |
) |
— |
|
— |
|
(7 |
) |
|
Cash earnings before significant items and distributions |
|
17 |
|
2 |
|
5 |
|
10 |
|
37 |
|
(1 |
) |
70 |
|
|
(1) |
|
Net life insurance income is the profit before tax of the life insurance and investment businesses of the statutory funds of the life insurance companies of the Group (excluding net interest income and investment earnings on shareholders retained profits & capital (IoRE) of the life insurance businesses). |
|
|
|
|
|
(2) |
|
Operating expenses excludes the life insurance expenses incorporated within net life insurance income (Wealth Management businesses only). |
24
|
24 October 2006Financial Template DiscussionMichael Ullmer Finance Director and Group CFO NATIONAL AUSTRALIA BANK LTD ABN 12 004 044 937 |
|
Agenda Cash earnings Disposed operations Other matters |
|
(Australia dollars, millions) Mar 06 Sep 05 Mar 05 As previously reported Ongoing operations Disposed operations Cash earnings is defined as accounting profit adjusted for items including: Significant items Treasury shares Impairment of goodwill Revaluation of Exchangeable Capital Units(1) IoRE discount rate variation(2) (1) From 1 October 2005 only (2) From 1 April 2006 only * Before significant items AIFRS Cash Earnings* 2005 Comparatives1,840 1,788 52 1,601 1,578 23 1,652 1,582 70 |
|
Adjustments for disposed entitiesTotal Assets Balance Sheet Custom Fleet(1) MLC – Asia (including IoRE) UK Disc. Investment Management Mar-06 HY $m Sep-05 HY $m 2428-61432410(1)Mar-05 HY $m Irish Banks --37Cash Earnings from disposed operations 5223703,250Capital Released – ACE 820Capital Released – Tier 1 870(1) Depreciation ceased for the four months to date of settlement |
|
Asia GeographyAsia Geography consists of: Retail and Private Banking services in Hong Kong, Japan, and Singapore (prior to FY06, these activities were recorded in nabCapital) Banking and Insurance representative offices in Beijing, China and Mumbai, India. Until May 2006, Wealth Management businesses in Hong Kong and Indonesia nabCapital Asia operations Asia Geography results impacted by: March 06 being the first full half of 100% ownership of MLC Hong Kong, together with increased IORE from buoyant equity investment markets Sale of MLC Asia in May 2006. At this stage, there is no expectation of future earnings from wealth management operations in Asia Rebasing of nabCapital Asia Asia Geography - Review of Results-51015202530354045nabCapital Asia5 8 10 Banking4 1 1 Wealth Mgt IORE6 7 13 Wealth Mgt Operations4 7 15 Total Asia Geography19 23 39 Mar-05Sep-05Mar-06 |
|
AIFRS areas to highlightFramework Hedge accounting has been applied in most circumstances where an economic hedge relationship exists. Fair value option used where more appropriate than hedge accounting in reducing P&L volatility for economic hedges. Reporting in the profit announcement AIFRS introduces increased P&L volatility fromhedge ineffectiveness and fair value movements Will continue to report fair value movements/hedge effectiveness in cash earnings Enhanced disclosures clearly identify these items in the P&L 1. Hedging and Fair Value Option |
|
AIFRS areas to highlight (cont’d)AIFRS had an impact on levels of reported capital. At 1 October 2004 deferred acquisition costs of $100 million relating to investments contracts not in Life Insurance entities were written off. At 1 October 2005 deferred acquisition costs of $384 million relating to investment contracts in Life Insurance entities were written off. Deferred acquisition costs relating to insurance contracts continue to be capitalised. Valuation of life insurance liabilities continues to be undertaken on an actuarial basis. From 1 October 2005 under AIFRS they are discounted based on the current prevailing interest rates at date of valuation. This was not previously the case. This has the potential to introduce increased income statement volatility to IoRE. (This was included in cash earning in Mar ’06, as it was a small amount. This will be excluded in Sep ’06 and for periods going forward) 2. Investment earnings on shareholders’ retained profits and capital within Wealth Management (IoRE) |
|
Implications for IoRE “Asset” base on which we derive IoRE has been reduced by $484m of DAC relating to the investment business Have been actively managing the capital invested in the Wealth Management business Investment mix re-weighted towards lower risk / lower yield assets, and overall market returns are lower |
|
$34.5b$39.6b$55.7bMarch 2005 March 2006 Certificates of Deposit Bonds, Notes and Subordinated Debt $22.7bDisciplined Approach to Funding> Reduced reliance upon short-term wholesale funding $116b$128bMarch 2005 March 2006 Retail Deposits (A$b) 10.3%> Improving retail deposit growth Australia 8% > Diversity of wholesale funding USA 35% Asia 7% Europe 25% UK 25% |
|
Questions |
|
Disclaimer This document is a presentation of general background information about the Group’s activities current at the date of the presentation, 24th October, 2006. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. This announcement contains certain "forward-looking statements" within the meaning of Section 21E of the US Securities Exchange Act of 1934 and the US Private Securities Litigation Reform Act of 1995. The words "anticipate", "believe", "expect", "project", "estimate", "likely", "intend", "should", "could", "may", "target", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. For further information relating to the identification of forward-looking statements and important factors that could cause actual results to differ materially from those projected in such statements, see "Presentation of Information - Forward-Looking Statements" and "Risk Factors" in the Group's Annual Report on Form 20-F filed with the US Securities & Exchange Commission. |
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.
|
|
NATIONAL AUSTRALIA BANK LIMITED |
|
|
|
|
|
|
|
|
|
|
|
Signature: |
/s/ Brendan T Case |
|
Date: Ÿ24 October 2006 |
Name: Brendan T Case |
|
|
|
Title: Associate Company Secretary |
|