Profit after tax $1,963 million down 7%
Cash* profit before provisions $3,335 million up 11%
Cash* profit after tax $1,674 million down 14%
Earnings per share and dividend
EPS 102.4 cents
down 10% Cash* EPS 87.1 cents
down 16% Interim Dividend 62 cents
unchanged Other key measures*
Revenue $6,002 million up 12%
Cost to income ratio 44.4% up 10 bps
Provisions $980 million up $740m
Gross non-performing loans $1,048 million up $408m
▪ Record revenue growth of 12% (13% FX adjusted) despite difficult environment.
▪ Provision charge significantly higher. Credit losses are isolated and the broader business and consumer book remain strong.
- Individual Provision charge of $604 million (up $416 million), driven by $226 million US monoline insurer provision which is expected to significantly reverse over time, $51 million in lower recoveries, and a mining company provision of $53 million
- Collective Provision charge of $376 million (up $324 million), with $131 million due to lending growth, $125 million for an “economic cycle adjustment” and $103 million relating to the downgrading of a large property company exposure.
▪ Very strong growth in Asia Pacific where we have an above average presence and which is less affected by the market turmoil. Profit up 47%.
▪ Personal impacted most by higher funding costs, particularly in Mortgages business. Revenue growth of 11%, with profit up 11%.
▪ New Zealand Businesses solid. Some early signs of New Zealand economy slowing.
▪ Renewed momentum in Institutional and across all businesses in that division.
▪ Ahead of target on term funding plans; continue to maintain a liquidity portfolio around 80% above normal requirements (excluding internal mortgage securitisation).