Charles Goode - Chairman

EXPANSION AND GROWTH

The Personal Division delivered another very strong result driven by revenue growth of 12%. In New Zealand we increased market share in a number of key segments and delivered improved financial performance. The Institutional Division had a mixed year but should perform better in 2008.

We continued our expansion in Asia. We acquired an initial 19% of Malaysia's AMMB Holdings Berhad; 20% of China's Shanghai Rural Commercial Bank; 60% of the Vientiane Commercial Bank in Laos; 10% of Vietnam's Saigon Securities Incorporation; and 100% of the Citizens Security Bank in Guam.

In Australia, we completed the successful acquisition of ETRADE Australia Limited. We have committed approximately $1.5 billion to investments during 2007. Given this, we are taking the opportunity to enhance our strategic flexibility by offering a discount of 1.5% under our Dividend Reinvestment Plan, which is underwritten and expected to raise an additional $1 billion in capital.