creating today the bank of tomorrow 2002 Annual Report Different Chairman’s Report 06 Chief Executive Officer’s Report 07 Personal 08 Corporate 10 Community 12 Culture 14 Growth 16 Energy Senior Management 20 Overview 22 Chief Financial Officer’s Review 23 Business Overview 26 Business Reports 28 Where we are 32 Integrity Corporate Governance 36 Risk Management 38 Environmental Report 40 Customer Service Charter 41 Corporate Governance Statement 42 Board of Directors 46 Guide to the Financial Report 48 Concise Financial Report 49 ANZ is a leading banking and financial services group. With total assets of $183 billion, ANZ takes its place among the top 100 banks in the world. Profit Net Profit has increased by 15.9% to $2168m 15.9% Dividend Cost to Income Ratio 46%16.7% Return on Equity 21.6%16.4% Earnings Per Share EPS has increased by 16.7% to $1.37 per share Dividend per share increased by 16.4% to $0.85 (fully franked) ROE has increased from 20.2% to 21.6% Cost to income ratio has decreased from 48% to 46% 2002 Results * ANZ is headquartered in Melbourne, where it first opened an office as the Bank of Australasia in 1835. ANZ’s primary markets are Australia and New Zealand as well as Asia, the Pacific, UK/Europe and the United States. ANZ operates a series of specialist businesses. Its key businesses are: Personal Banking & Wealth Management, Consumer Finance, Small to Medium Business, Mortgages, Asset Finance, Corporate Businesses and ANZ Investment Banking. 01 *excluding significant transactions during year ended 30 September 2002: the sale of businesses to ING joint venture (profit after tax of $170m), National Housing Bank recovery ($159m profit after tax) and special general provision for doubtful debts ($175m charge after tax). Including significant transactions, the net profit was $2322m, up 24% on 2001, and EPS was $1.47. diffe rent [...]... Financial Officer’s Review Track Record: 1992 2002* Group NPAT - $2322m Group Profit ANZ' s profit in 2002 of $2322m reflects the strong progress the Group has made over the past 10 years The period from 1992 to 1995 was one of recovery, as ANZ returned to a stable financial footing following the substantial losses on commercial lending in the early 90s The period from 1996 to 1998 was one of consolidation,... customers, today there are just four We are committed to developing and sustaining the new ANZ culture It is showing in the commitment and engagement of our people This year in our annual staff survey 78% of staff indicated they are satisfied working with ANZ and 71% would recommend ANZ as a place to work Three years ago only 52% of our staff said they were satisfied working with ANZ We want ANZ to be a... ended 30 September 2002: the sale of businesses to ING joint venture (profit after tax of $170m), National Housing Bank recovery ($159m profit after tax) and special general provision for doubtful debts ($175m charge after tax) Including significant transactions, the net profit was $2322m Overview Vision - The Bank with the Human Face Performance Customers During 2002, we undertook the following major... year for the quality of our banking services to businesses and corporates And we are seeking to raise the bar higher Market research among medium–sized corporations and large business institutions indicate that, of the major Australian banks, ANZ has again rated number one in overall customer satisfaction and market share in 2002 ANZ is the lead banker to 37% of Australia’s large corporations In the middle... Specific Provisions 40% increase Non accrual loans decreased over the year reflecting the health of the domestic market, assisted by writeoffs of several large exposures The level of the decrease was partly offset by the downgrade of a small number of international customers who were previously investment–grade Sep-02 Asset Quality 2000 2001 2002 Net Loans and Advances Regulatory Capital 11.2% RWA 160b... result for the year benefited from the one-off impacts of the settlement of the NHB litigation and profit on sale of the funds management operations into the joint venture vehicle, partially offset by a special general provision for doubtful debts charge, resulting in headline NPAT (including significant transactions*) increasing by 24.1% for the year 24 25 Despite these large single name losses, our... Feb 2002 2002 2002 Feb 2002 2002 2002 July 2002 Employees: 8,917 FTE July 2002 Employees: 1,156 FTE Growing our personal banking business is all about the little things we do every day It’s about providing better products and service to individual customers and having the commitment to make good service a reality at the local level We are repositioning Consumer Finance to build a growth business for the. .. Renewal > ANZ DOXA Youth Foundation Cadetship Reconnecting with the community is not only about giving money It’s about creating genuine business–community partnerships The ANZ Community Fund was established in 2002 to create a new way of involving ourselves in the community It achieves its aim by placing the responsibility for a large part of ANZ s community “giving” at a local level It enables the people... staff said they were satisfied working with ANZ We want ANZ to be a place where people can achieve more than they thought they could and in the process, help turn ANZ into the bank of tomorrow, today Our challenge is to build on the foundation of strong,consistent financial performance and take ANZ to a new level One based on growing our revenue and customer base at low risk Central to our growth strategy... covered, with our General Provision balance above APRA requirements As part of the regular assessment of the adequacy of the General Provision, a special top up of $250m was made during the year to increase the General Provision balance to a more prudent level, in light of the prevailing global economic uncertainty and an unusual level of investment–grade defaults Balance Sheet Management – Net Lending Asset . creating today the bank of tomorrow 2002 Annual Report Different Chairman’s Report 06 Chief Executive Officer’s Report 07 Personal 08 Corporate 10 Community. given them more of a feeling that they own the business. It has given them more freedom and the opportunity to be more creative. At the same time, it has made the risks and results of their business. that, of the major Australian banks, ANZ hasagain rated number one in overall customer satisfaction and market share in 2002. ANZ is the lead banker to 37% of Australia’s large corporations. In the