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Five-year Summary

  20181
$m
20171
$m
2016
$m
2015
$m
2014
$m
Financial Performance Cash2
Net interest income 14,514 14,875 15,095 14,616 13,797
Other operating income 4,700 4,941 5,499 5,921 5,781
Operating expenses (9,248) (8,967) (10,439) (9,378) (8,760)
Profit before credit impairment and income tax 9,966 10,849 10,155 11,159 10,818
Credit impairment charge (688) (1,199) (1,956) (1,205) (989)
Income tax expense (2,775) (2,826) (2,299) (2,724) (2,700)
Non-controlling interests (16) (15) (11) (14) (12)
Cash profit from continuing operations2 6,487 6,809 5,889 7,216 7,117
Cash profit/(loss) from discontinued operations (682) 129 N/A N/A N/A
Cash profit 5,805 6,938 5,889 7,216 7,117
Adjustments to arrive at statutory profit2 595 (532) (180) 277 154
Profit attributable to shareholders of the Company 6,400 6,406 5,709 7,493 7,271
Financial Position
Assets 942,624 897,326 914,869 889,900 772,092
Net assets 59,383 59,075 57,927 57,353 49,284
Common Equity Tier 1 11.4% 10.6% 9.6% 9.6% 8.8%
Common Equity Tier 1 – Internationally Comparable Basel 33 16.8% 15.8% 14.5% 13.2% 12.5%
Return on average ordinary equity (statutory)4 10.9% 11.0% 10.0% 14.5% 15.8%
Return on average assets (statutory) 0.7% 0.7% 0.6% 0.9% 1.0%
Cost to income ratio (cash)2 51.6% 46.1% 50.7% 45.7% 44.7%
Shareholder Value – Ordinary Shares
Total return to shareholders (share price movement plus dividends) 0.6% 13.1% 9.2% (7.5%) 5.9%
Market capitalisation 80,979 86,948 80,886 78,606 85,235
Dividend (cents) 160c 160c 160c 181c 178c
Franked portion – interim 100% 100% 100% 100% 100%
– final 100% 100% 100% 100% 100%
Share price – high (dollar) $30.80 $32.95 $29.17 $37.25 $35.07
– low (dollar) $26.08 $25.78 $21.86 $26.38 $28.84
– closing (dollar) $28.18 $29.60 $27.63 $27.08 $30.92
Share Information
(per fully paid ordinary share)
Earnings per share (cents) 221.6 220.1 197.4 271.5 267.1
Dividend payout ratio (statutory) 72.1% 73.4% 81.9% 68.6% 67.4%
Net tangible assets per ordinary share5 $18.47 $17.66 $17.13 $16.86 $14.65
No. of fully paid ordinary shares issued (millions) 2,874 2,937 2,927 2,903 2,757
Dividend reinvestment plan (DRP) issue price
– interim $27.76 $28.80 $24.82 $31.93 $33.30
– final - $29.02 $28.16 $27.08 $32.02
Other Information
No. of shareholders 509,238 522,425 545,256 546,558 498,309
  2018 2017 2016 2015 2014
Fair and Responsible Banking
Net Promoter Score Ranking (relative to peers)
Australia Retail6 3 4 2 4 4
Australia Business and Private Banking7 3 4 4 4 3
Australia Institutional8 1 2 1 - -
New Zealand Retail9 4 4 4 5 5
New Zealand Commercial and Agri10 5 5 5 5 5
New Zealand Institutional11 1 3 1 - -
Digitally active customers
Australia (%)12 61 61 60 58 55
New Zealand (%)13 68 65 62 59 -
Code of conduct
Alleged breaches 1,114 1,443 1,408 1,629 1,718
Investigations resulting in termination 226 262 254 294 336
Financial Wellbeing
Help enable social and economic participation of 1 million people by 2020 (cumulative total)14 889,135 550,361 453,054 - -
Employees
FTE15 39,924 44,896 46,554 50,152 50,328
Employee Engagement (%)16 73 72 74 76 73
Total Women in Leadership (%)17 32.0 31.1 29.9 29.5 27.9
Community
Total community investment ($m) 136.9 131.1 89.8 74.8 75.6
Volunteer hours 124,113 113,127 113,071 108,142 101,801
Employee volunteering participation rate (%)18 34.6 29.4 - - -
Environmental Sustainability
Fund and facilitate at least $15b by 2020 towards environmentally sustainable solutions for our customers (cumulative total)19 11.5 6.9 2.5
Environmental footprint
Australia (tCO2-e) 123,056 126,881 136,751 147,499 154,922
New Zealand (tCO2-e) 7,887 6,992 7,910 9,189 10,008
APEA (tCO2-e) 40,069 47,120 48,908 52,843 47,347
Total (tCO2-e) 171,012 180,993 193,569 209,531 212,277
Total scope 1, 2 & 3 GHG emissions (tCO2-e) 266,906 273,216 299,224 335,085 322,820
Project finance portfolio20
Renewables (%) 76 70 63 60 44
Coal (%) 10 16 19 18 33
Gas (%) 13 13 18 22 23
Project finance commitment to renewable energy ($m) 1,076 1,141 875 881 835
  1. During 2018, part of Wealth Australia and TSO and Group Centre division was classified as a discontinued operation. 2017 comparatives have been restated accordingly. 2016 to 2014 has not been restated. All ratios are presented on a Group basis inclusive of discontinued operations across 2018 to 2014.
  2. Cash profit excludes non-core items included in statutory profit and is provided to assist readers in understanding the result of the ongoing business activities of the Group. Cash profit is not audited; however, the external auditor has informed the Audit Committee that the adjustments have been determined on a consistent basis across each period presented, and the adjustments for the sale impact of Shanghai Rural Commercial Bank (SRCB) in 2018 and 2017 are appropriate.
  3. Internationally Comparable Methodology applied for 2015–2018 aligns with APRA’s information paper entitled ‘International Capital Comparison Study’ (13 July 2015). Basel Internationally Comparable ratios do not include an estimate of the Basel l capital floor requirement.
  4. Average ordinary equity excludes non-controlling interests and preference shares.
  5. Equals shareholders’ equity less preference share capital, goodwill, software and other intangible assets divided by the number of ordinary shares.
  6. Roy Morgan Research Single Source, Australian population aged 14+, Main Financial Institution, six month rolling average to Sep’14, Sep’15, Sep’16, Sep’17 & Sep’18. Ranking based on the four major Australian banks.
  7. DBM Business Financial Services Monitor. Base: Business and Private Banking (<$100m annual turnover) Main Financial Institution customers. Data based on business banking NPS only (excludes Private Bank NPS). Six month average to Sep’14, Sep’15, Sep’16, Sep’17 & Sep’18. Ranking based on the four major Australian banks.
  8. Peter Lee Associates 2018 Large Corporate and Institutional Relationship Banking survey Australia.
  9. Retail Market Monitor, Camorra Research, Retail: Sep’14, Sep’15, Sep’16, Sep’17 & Sep’18 (monthly).
  1. Business Finance Monitor, TNS Kantar Research. Base: Commercial ($3m – $150m annual turnover) and Agricultural (>500K annual turnover) customers. Q3’14, Q3’15, Q3’16, Q3’17 & Q3’18 (quarterly).
  2. Peter Lee Associates Large Corporate and Institutional Relationship Banking surveys New Zealand 2016–18, ranked against the Top 4 competitors (in 2016 rank based on question ‘which bank would you be most likely to recommend’).
  3. Roy Morgan Research Single Source, proportion of ANZ customers aged 14+ conducted Internet banking using ANZ App or Website in last 4 weeks, 12 months rolling average to Sep’14, Sep’15, Sep’16, Sep’17 & Sep’18.
  4. Proportion of ANZ customers who have used ANZ Internet Banking or ANZ goMoney at least once in the last 90 days. 12 months to Sep’15, Sep’16, Sep’17 & Sep’18.
  5. Target commenced in FY 2016. Performance includes people helped through our initiatives to support financial wellbeing, including our financial inclusion, employment and community programs, and targeted banking products and services for small business and retail customers.
  6. As disclosed in the Annual Report.
  7. The 2017 engagement survey was run as a pulse survey sent to 10% of the bank’s employees with a 57% response rate.
  8. Measures representation at the Senior Manager, Executive and Senior Executive levels. Includes all employees regardless of leave status but not contractors (which are included in FTE).
  9. Commenced reporting in 2017.
  10. Target commenced in FY 2016. Performance includes funding or facilitation of initiatives that help lower carbon emissions, improve water stewardship, and minimise waste.
  11. Breakdowns for 2018 and 2017 do not total to 100% due to rounding.
Important Dates for Shareholders WATSON BLINDS AND AWNINGS