Financial Performance and Remediation Update
SOLID UNDERLYING PERFORMANCES
DIVISIONAL UNDERLYING PROFIT (HOH)
($m) ■1H21 ■2H21
Above system, broad based growth in business lending
1,815
1,854
•
1
●
2.1%
Higher NIM benefitting from lower funding costs
Additional spend on customer facing roles for growth, higher technology investment
Business & Private Banking
1,133
1,115
(1.6%)
Personal Banking
997
856
(14.1%)
•
Corporate & Institutional
859
835
New Zealand Banking1
2.9%
Growth in housing lending, but NIM impacted by competition and mix
Good cost discipline
.
Lower markets risk management income ($124m decline in 2H21)
Underlying profit up 5% ex Markets
•
.
GLA growth driven by target growth sectors of infrastructure and investor
-
Above system growth in housing and business lending – broad based growth in
business, particularly strong in SME
•
Spend on additional colleagues for growth and compliance & risk activities.
(1) Results in local currency. Divisional earnings exclude increase in forward looking collective provision economic adjustment.
19
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