ANZ recorded a record profit after tax of $2,102 million for the half year ended 31 March 2007, up 16%. The result included a one-off gain on the sale of Esanda Fleet Partners and adjusting for these, cash earnings per share were up 11%.

Again, we had strong results in our Personal Division in Australia with earnings up 22%. Over recent years we have been investing in our retail franchise. For example, in the first half, we opened nine new branches. The benefits of this investment are continuing to show through in high levels of customer satisfaction and the Division's financial performance.

Our Institutional Division delivered a solid performance with earnings up 11% assisted by recoveries from previously provided doubtful debts. Over recent years, we have sought to curtail low margin asset growth and to reduce our reliance on lending. These steps have subdued revenue growth but we expect the Division will deliver value to shareholders over the longer term.

Our New Zealand Business was up 8% and continues to show promising momentum. Other highlights include our wealth management joint venture, ING Australia, where earnings were up 29%; and International Partnerships where profit grew 57% assisted by a full six month return from Bank of Tianjin in China. We also took a major strategic step with the announcement of an $833 million investment to acquire 24.9% of Malaysia's fifth largest financial services group, AMMB Holdings Berhad.

Continued attention to managing costs during the half brought down our cost income ratio to 44.3%.

Our focus on creating a vibrant, engaging and flexible culture also showed results. Staff engagement at ANZ is the highest of any major Australian company, up 4% to 64%. Our culture is an important asset and has begun to differentiate ANZ as an employer of choice.

Importantly, we are continuing to invest in the community. This includes helping those in most need with financial literacy and savings, staff volunteering and local community initiatives.

There is still much for us to do but we are committed to taking the hard steps to show customers, the community, shareholders and staff that ANZ is a company of which they can be proud.

Looking ahead, with a strong first half and good momentum going into the second half, we are confident of a good result for the year as a whole.

Charles Goode