Our performance over ten years
Ten year Summary
  Previous AGAAP
  2006
$m
2005
$m
2004
$m
2003
$m
  2002
$m
2001
$m
2000
$m
1999
$m
1998
$m
1997
$m
Financial Performance1                      
Net interest income 6,943 6,371 5,252 4,311   4,018 3,833 3,801 3,655 3,547 3,437
Other operating income 3,146 2,935 3,267 2,808   2,796 2,573 2,583 2,377 2,142 2,110
Operating expenses (4,605) (4,340) (4,005) (3,228)   (3,153) (3,092) (3,314) (3,300) (3,442) (3,502)
Profit before income tax, credit impairment and non-core items1 5,484 4,966 4,514 3,891   3,661 3,314 3,070 2,732 2,247 2,045
Provision for credit impairment (407) (565) (632) (614)   (610) (531) (502) (510) (487) (400)
Income tax expense (1,486) (1,247) (1,147) (926)   (880) (911) (863) (736) (576) (466)
Minority interest (4) (3) (4) (3)   (3) (2) (2) (6) (9) (8)
Cash profit1 3,587 3,151 2,731 2,348   2,168 1,870 1,703 1,480 1,175 1,171
Non-core items1 101 24 84 -   154 - 44 (69) (147)
Net profit after tax 3,688 3,175 2,815 2,348   2,322 1,870 1,747 1,480 1,106 1,024
Financial Position                      
Assets2 335,771 300,885 259,345 195,591   183,105 185,493 172,467 152,801 153,215 138,241
Net Assets 19,906 19,538 17,925 13,787   11,465 10,551 9,807 9,429 8,391 6,993
Tier 1 capital ratio3 6.8% 6.9% 6.9% 7.7%   7.9% 7.5% 7.4% 7.9% 7.2% 6.6%
Return on average ordinary equity4,5 20.1% 19.0% 17.8% 20.6%   21.6% 20.2% 19.3% 17.6% 15.9% 17.2%
Return on average assets 4 1.1% 1.1% 1.1% 1.2%   1.3% 1.1% 1.1% 1.0% 0.7% 0.7%
Cost to income ratio 6 45.6% 46.6% 45.3% 45.1%   46.0% 48.0% 51.7% 54.5% 60.9% 63.1%
Shareholder value – ordinary shares                      
Total return to shareholders (share price movement plus dividends) 17.1% 32.6% 17.0% 6.7%   15.3% 26.2% 36.3% 19.6% –15.6% 62.4%
Market capitalisation 49,331 43,834 34,586 27,314   26,544 23,783 20,002 16,045 13,885 17,017
Dividend 125c 110c 101c 95c   85c 73c 64c 56c 52c 48c
Franked portion   –interim 100% 100% 100% 100%   100% 100% 100% 75% 60% 100%
                          –final 100% 100% 100% 100%   100% 100% 100% 80% 60% 100%
Share price  7       –high $28.66 $24.45 $19.44 $18.45   $19.70 $16.71 $12.87 $12.11 $11.52 $11.08
                          –low $22.70 $19.02 $15.94 $15.01   $15.23 $12.63 $9.18 $8.12 $7.65 $6.79
                          –30 Sep $26.86 $24.00 $19.02 $17.17   $16.88 $15.28 $12.70 $9.80 $8.62 $10.79
Share information
(per fully paid ordinary share)
                     
Earnings per share7 –basic 200.0c 169.5c  153.1c  142.4c    141.4c  112.7c  102.5c  86.9c  69.7c  65.8c 
Dividend payout ratio8 62.6%  65.0%  67.5%  64.2%     57.8% 62.0%  59.1%  62.1%  67.8%  61.6% 
Net tangible assets9 $8.53  $7.77  $7.51  $7.49    $6.58  $5.96  $5.49  $5.21  $4.98  $4.59 
No. of fully paid ordinary shares issued (millions) 1,836.6  1,826.4  1,818.4  1,521.7    1,503.9  1,488.3  1,506.2  1,565.4  1,539.4  1,508.6 
DRP issue price10 –interim $26.50  $21.85  $17.84  $18.48    $19.24  $15.05  $11.62  $10.95  $10.64  $9.77 
                           –final –  $23.85  $19.95  $16.61    $18.32  $18.33  $14.45  $11.50  $10.78  $9.92 
Other information                      
Points of representation11 1,265 1,223 1,190 1,019   1,018 1,056 1,087 1,147 1,205 1,473
No. of employees (full time equivalents)  32,256 30,976  28,755  23,137    22,482  22,501  23,134  30,171  32,072  36,830 
No. of shareholders12 291,262  263,467  252,072  223,545    198,716  181,667  179,829  179,945   151,564 132,450 

1 ANZ excludes from cash profit significant items, abnormals, ANZ National Bank integration costs and volatility associated with fair value movements relating to economic hedges. ANZ excludes these items to provide a better indication of the core business performance. In addition, the 2005 result has been calculated on an AIFRS basis that is comparable with 2006 with the net effect of these adjustments included in non-core items, allowing readers to see the impact on 2005 results of accounting standards that have only been applied from 1 October 2005.

2 From 1998 to 2001, consolidated assets include the statutory funds of ANZ Life as required by an accounting standard. For the year 2004, consolidated assets include the statutory funds of NBNZ Life Insurance Limited. ANZ Life was sold in May 2002 and NBNZ Life Insurance Limited was sold on 30 September 2005.

3 Calculated in accordance with Australian Prudential Regulation Authority requirements effective at the relevant date.

4 Excludes non-core items and minority interest. The 2005 ratio has been calculated on an AIFRS basis that is comparable with that of 2006.

5 For the periods 1997 to 2002 the return on average ordinary equity calculation accrues the dividend over the year. From 2003, dividends may no longer be accrued and are not included in the calculation of return on average ordinary equity.

6 Excludes non-core items. Periods prior to 2005 also exclude goodwill amortisation. The 2005 ratio has been calculated on an AIFRS basis that is comparable with that of 2006.

7 Periods prior to 2004 adjusted for the bonus elements of the November 2003 Rights Issue.

8 From 2003 the dividend payout ratio includes the final dividend proposed but not provided for in terms of AASB 1044 Provisions, Contingent Liabilities and Contingent Assets which was effective from the September 2003 financial year.

9 Equals shareholders equity less preference share capital, goodwill, software and other intangible assets. For periods prior to 2005, this equals shareholders equity less preference share capital and unamortised goodwill.

10 DRP represents Dividend Reinvestment Plan.

11 Includes branches, offices, representative offices and agencies.

12From 2000 onwards the number of shareholders does not include the number of employees whose only shares are held by ANZEST Pty Ltd as the trustee for shares issued under the terms of any ANZ employee incentive plan.