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CHALLENGER LIMITED Annual Report 2006
64641_rns_2006-07-31_67646ef4-c4a2-4643-9c54-8a87e717b30a.pdf
Annual Report
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NEW FINANCIAL REPORTING STRUCTURE FOR BUSINESS LINES
1 August 2006, Sydney - Challenger Financial Services Group Limited (ASX:CGF) today announced that the company's business divisions will now report financial performance along four instead of three separate business lines: Mortgage Management, Funds Management, Asset Management, and Financial Planning.
The change reflects the evolution of four distinct revenue generating businesses within Challenger and will provide the opportunity for more detailed analysis of the key drivers and financial performance of each division. It will also further clarify the contribution of fee-based revenue as it continues to grow in proportion to total revenue.
Key elements of these changes include:
- $\bullet$ The renaming of Challenger Wholesale Finance to Mortgage Management – this name more accurately describes the core competencies of division, predominantly residential mortgage backed lending and the securitisation.
- The separation of management and reporting lines for Funds $\bullet$ Management and Financial Planning (including Synergy) - until recently the management reporting line of Funds Management and Financial Planning have been combined and reported under Challenger Wealth Management. The separation of these reporting lines recognises the management changes and the distinct operating environments and underlying performance drivers of these respective businesses.
- The renaming of Challenger Life to Asset Management $-$ in recognition of Challenger Life's increased focus on generating origination and management fees from asset management activities. This name better reflects the strategic objectives of this division, with an emphasis on investment performance and associated fee income rather than funding sources.
As part of the process to enhance transparency, Challenger has provided an historic financial summary covering the December 2003, June 2004, December 2004, June 2005 and December 2005 reporting periods restated to reflect the four business lines. The provision of this information provides a data source from which the historical financials can be viewed on a consistent footing. This format will be used for the future financial results released to the market, including the 30 June 2006 annual results which will be announced on August 28.
ENDS
Financial Results Summary Restatement of prior periods reflecting new corporate structure
Released - 1 August 2006
Explanatory motes = restatement
To enhance transparency, Challenger is providing a half on half comparative restatement of financial results to reflect change to four business lines
The new format
- reflects the new corporate reporting structure announced 1 August 2006 $\hat{\mathcal{R}}$
- more appropriately shows the sources of Challenger's earnings as they $\mathcal{L}^{\mathcal{L}}_{\mathcal{M}}$ become increasingly derived from the origination and management of assets and their related activities
- clearly distinguishes between the key drivers and operational performance of $\otimes$ Funds Management and Financial Planning
- will be used for future financial results released to the market $\otimes$
The historical data
provides a consistent footing from which to view it against the past, and $\otimes$ compare it to in the future
Explanatory hotels restatement (cont.)
Key differences in format
- Four reporting lines: Mortgage Management, Funds Management, Asset Management and Financial Planning, each with their own P&L
- Greater emphasis is now provided on 'half on half' reporting and the $\mathcal{L}$ development of trends in key financial outputs and ratios
- New terminology has been adopted for a higher degree of consistency across $\cdot$ each division with a detailed Glossary provided
- Reconciliations have been provided between $\mathcal{D}$
- the statutory profit and loss and the historic cost profit and loss result
- AGAAP and AIFRS Balance Sheet
- the past Wealth Management results and their split into Funds Management and Financial Planning
NOTE: The Statutory Profit and Loss and Balance Sheet data provided within this Financial Results Summary remain subject to audit and may change as a result of the finalisation of the implementation of AIFRS. Any resultant changes arising on audit will be updated when Challenger releases its 2006 Full Year result on 28 August 2006.
Group - Statutory result
| \$m | FY 06 | FY 05 | $\Delta$ % | 2H 06 | 2H 05 | $\Delta$ % |
|---|---|---|---|---|---|---|
| Income | ||||||
| Net investment income | 215 | 103 | ||||
| Net fee income | 190 | 109 | ||||
| Other income | 1,185 | 621 | ||||
| 1,590 | 833 | |||||
| Expense | ||||||
| Employee expenses | (132) | (73) | ||||
| Other expenses | (1,260) | (657) | ||||
| (1, 392) | (730) | |||||
| EBIT | 198 | 103 | ||||
| Interest expense | (35) | (20) | ||||
| Share of profits of associates | $\boldsymbol{2}$ | |||||
| Net Profit Before Tax & Significant Items |
165 | 83 | ||||
| Significant items | ||||||
| Tax | (45) | (18) | ||||
| Net Profit After Tax | 120 | 65 | ||||
| Expense/income | 52.7% | 52.8% | ||||
| EBIT margin | 47.3% | 47.2% | ||||
| Effective Tax Rate | 27.2% | 22.2% | challenger 5 |
Reconciliation of Statutory to Underlying Statutory
| \$m | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta\%$ |
|---|---|---|---|---|---|---|
| Statutory net profit before tax | 165 | 83 | ||||
| Adjustments | ||||||
| Provision for costs attributable to decision to $\mathbf{B}$ relocate to Hilton 1 |
||||||
| • Back out net effect of hedging contracts revaluation losses which do meet AIFRS effectiveness standards |
||||||
| • Back out impact of CIF consolidated statutory result |
||||||
| • Add back CIF distributions | ||||||
| • Other minorities | ||||||
| Underlying statutory net profit before tax | 165 | 83 |
1 Challenger advised the market on 4 July 2006 that a provision of not more than \$15m before tax will be taken in FY06
Group - Historic Cost result
| $\mathfrak{sm}$ | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta$ % |
|---|---|---|---|---|---|---|
| Income | ||||||
| Net investment income | 122 | 49 | ||||
| Net fee income | 218 | 126 | ||||
| Other income | $\bar{z}$ | $\overline{2}$ | ||||
| 342 | 176 | |||||
| Expense | ||||||
| Employee expenses | (132) | (73) | ||||
| Other expenses | (78) | (43) | ||||
| (210) | (116) | |||||
| EBIT | 132 | 60 | ||||
| Interest expense | (17) | (8) | ||||
| Net Profit Before Tax & Significant Items |
115 | 52 | ||||
| Significant items | ||||||
| Tax | (31) | (13) | ||||
| Net Profit After Tax | 84 | 39 | ||||
| Expense/income | 61.3% | 65.9% | ||||
| EBIT margin | 38.7% | 34.1% | ||||
| Effective Tax Rate | 26.9% | 24.1% challenger |
Reconciliation of Underlying Statutory to Historic Cost
| \$m | FY 06 | FY 05 | $\triangle \%$ | 2H 06 | 2H 05 | $\Delta \%$ |
|---|---|---|---|---|---|---|
| Underlying Statutory net profit before tax | 165 | 83 | ||||
| Recurring items | ||||||
| • Subtract excess of movement in fair value of investment assets over accrued investment income under historic cost |
(86) | (15) | ||||
| • Add excess / (deficiency) of movement in fair value of policyholder/annuity liabilities over accrued annuity interest costs under historic cost |
40 | (5) | ||||
| • Other | 4 | (5) | ||||
| 123 | 58 | |||||
| Non recurring items | ||||||
| • Subtract borrowing and financing costs of investment properties which are amortised under historic cost |
(8) | (6) | ||||
| Historic cost net profit before tax | 115 | 52 | ||||
| A 6 Jan Julian March 1998, March 1998, J. S. March 2001, J. March 2003, J. March 2003, M. M. M. M. M. M. M. M. M. M. M. M. M. |
Note : all reconciliation adjustments above relate to the impacts of Statutory accounting for the Life company operation within Asset Management
Group result - by division
| \$m | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta\%$ |
|---|---|---|---|---|---|---|
| Net earnings | ||||||
| Mortgage Management | 61 | 34 | ||||
| Funds Management | (10) | (7) | ||||
| Asset Management | 100 | 40 | ||||
| Financial Planning | 5 | 5 | ||||
| Corporate | (24) | (12) | ||||
| EBIT | 132 | 60 | ||||
| Interest expense | (17) | (8) | ||||
| Net Profit Before Tax & Significant Items |
115 | 52 | ||||
| Significant items | ||||||
| Tax | (31) | (13) | ||||
| Net Profit After Tax | 84 | 39 |
Group result
. Commentary to be provided with FY06 reporting
I⊠AM⊠MM⊡FM⊠FP⊠Corp
Group NPAT (Historic cost)
Group result
180
ssee Net fee income - - % of Total Income (RHS)
Contribution from Fee Income
Group result
Commentary to be $\mathscr{U}_\ell$ provided with FY06 reporting
Operating efficiency
Mortgage Management
| \$m | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta\%$ |
|---|---|---|---|---|---|---|
| Income | ||||||
| Net fee income | 108 | 57 | ||||
| Other income | $\circ$ | 0 | ||||
| 108 | 57 | |||||
| Expense | ||||||
| Employee expenses | (33) | (17) | ||||
| Other expenses | (14) | (6) | ||||
| (47) | (23) | |||||
| EBIT | 61 | 34 | ||||
| Comprising: | ||||||
| Residential | 47 | 27 | ||||
| Commercial | 14 | 7 | ||||
| 61 | 34 | |||||
| Expense/income | 43.5% | 40.4% | ||||
| EBIT margin | 56.5% | 59.6% | ||||
| Net Assets | \$324m | |||||
| Return on Net Assets | 18.8% | |||||
| challenger |
Mortgage Management
Commentary to be $\mathcal{U}_\ell$ provided with FY06 reporting
Mortgage Management
Commentary to be $\mathscr{U}_\ell$ provided with FY06 reporting
Income sources
8 Commercial
Funds Management
| $\mathop{\$m}\nolimits$ | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta\%$ |
|---|---|---|---|---|---|---|
| Income | ||||||
| Net fee income | 56 | 35 | ||||
| Other income | 1 | 1 | ||||
| 57 | 36 | |||||
| Expense | ||||||
| Employee expenses | (39) | (24) | ||||
| Other expenses | (28) | (19) | ||||
| (67) | (43) | |||||
| EBIT | (10) | (7) | ||||
| Expense/income | 117.1% | 119.3% | ||||
| EBIT margin | $(17.1\%)$ | (19.3%) | ||||
| Net Assets | \$77m | |||||
| Return on Net Assets | n/a |
Funds Management
6 Commentary to be $\mathcal{U}_\ell$ 4 $\overline{2}$ provided with FY06 \$ millions $\mathbf 0$ $2H04$ 11406 $2H05$ 1H06 $1 - 04$ 2H06 reporting $\overline{2}$ $-4$ -6 $-8 -$ Operating Efficiency - FM 140% 120% 100% 80% 60% 40% 20% 0% 1H 04 2H 04 2H 05 1H 06 2H 06 1H 05 Expense to income
8
Funds Management EBIT
Funds Management
FUM composition - 30 June 2005
Ex Australish Equities
FUM composition - 30 June 2006
Asset Management
| \$m | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta\%$ |
|---|---|---|---|---|---|---|
| Income | ||||||
| Net investment income | 122 | 49 | ||||
| Net fee income | 15 | $\ddagger 4$ | ||||
| Other income | $\theta$ | 0 | ||||
| 137 | 63 | |||||
| Expense | ||||||
| Employee expenses | (25) | (16) | ||||
| Other expenses | (12) | (7) | ||||
| (37) | (23) | |||||
| EBIT | 100 | 40 | ||||
| Expense/income | 27.0% | 36.5% | ||||
| EBIT margin | 73.0% | 63.5% | ||||
| Net Assets | \$483m | |||||
| Return on Net Assets | 20.7% |
Asset Management
Asset Management EBIT (Historic cost)
Asset Management
Commentary to be $\mathscr{U}_\ell$ provided with FY06 reporting
Assets under Management
■ Property ■ Debt & cash □ Infrastructure □ Equity & other ■ Funds
Net income sources - AM
Financial Diaming
| \$m | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta\%$ |
|---|---|---|---|---|---|---|
| Income | ||||||
| Net fee income | 38 | 20 | ||||
| Other income | 1 | 1 | ||||
| 39 | 21 | |||||
| Expense | ||||||
| Employee expenses | (19) | (9) | ||||
| Other expenses | (16) | (6) | ||||
| (34) | (15) | |||||
| EBIT | 5 | ő | ||||
| Expense/income | 86.8% | 73.7% | ||||
| EBIT margin | 13.2% | 26.3% | ||||
| Net Assets | \$130m | |||||
| Return on Net Assets | 4.0% |
Financial Planning
Financial Planning EBIT
Corporate
| \$m | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta\%$ |
|---|---|---|---|---|---|---|
| Expense | ||||||
| Employee expenses | (15) | (6) | ||||
| $LTP1$ charge | (6) | (4) | ||||
| Other expenses | $\left( 4\right)$ | (2) | ||||
| Total corporate expenses | (24) | (12) | ||||
| EBIT | (24) | (12) | ||||
| Interest & borrowing costs 2 | (17) | (8) | ||||
| EBT | (41) | (20) | ||||
| Consolidated FTE | 901 | 901 | ||||
1 Long Term Incentive Plan is an employee share plan which is amortised in accordance with AIFRS
- refer remuneration note [ ] in the financial statements for the year ended 30 June 2006 for further details
2 Interest costs in 2005/6 includes the consolidated interest cost of CIF bridge facility drawn down to fund the Inexus purchase (FY 06 - [\$ m]; FY05 - \$nil). The CIF equity bridge facility will be repaid in August 2006 with the proceeds of the CIF second instalment.
Corporate Debt & Gearing
| \$m | FY 06 | FY 05 | $\Delta\%$ | 2H 06 | 2H 05 | $\Delta\%$ |
|---|---|---|---|---|---|---|
| Debt | ||||||
| Financial debt 2 | ||||||
| Corporate facilities | 70 | 70 | ||||
| Other | $\boldsymbol{2}$ | $\boldsymbol{2}$ | ||||
| 72 1 | 72 1 | |||||
| Operating debt 1 within: | ||||||
| MM - securitisation trusts | 16,945 | 16,945 | ||||
| MM - NIM facility | 180 | 180 | ||||
| AM - property trusts | 349 | 349 | ||||
| $AM - CIF$ | ||||||
| 17,474 | 17,474 | |||||
| Total Debt | 17,546 | 17,546 | ||||
| Gearing 3 | ||||||
| Debt / (Debt + Equity) | 5.8% | 5.8% | ||||
| Net Debt / (Net Debt + Equity) | 0.3% | 0.3% |
1 Non recourse to Challenger Financial Services Group
2 Recourse to Challenger Financial Services Group
3 Gearing ratios are based on Financial (recourse) debt. Net debt is after available cash is deducted.
Appendices
| Page | |
|---|---|
| Glossary | $26 - 27$ |
| Detailed Financial Analysis (All data is in \$m unless stated otherwise) |
$28 - 41$ |
| Consolidated Statutory Profit & Loss statement 1. 2. Reconciliation of Statutory to Historic Cost profit result 3. Historic Cost Profit & Loss statement 4. Statutory Balance Sheet – reconciliation of AIFRS movements 5. Issued Share Capital reconciliation and EPS / DPS analysis Divisional Performance Mortgage Management 6. $6.1 -$ Residential 6.2 - Commercial Funds Management 7. 8. Asset Management Financial Planning 9. 10. Corporate Other data |
28 29 30 31 32 33 34 35 36 37 38 39 |
| 11. Assets and Loans Under Management Reconciliation of Wealth Management to 12. Funds Management and Financial Planning |
40 41 challenger |
Glossary
| mm | Mortgage Management division |
|---|---|
| FM | Funds Management division |
| АM | Asset Management division |
| FP | Financial Planning division |
| Corporate | All other non cash generating unit activity |
| Net rental income (AM only) | Gross rental income less trust expenses, financing costs directly associated with property, less management fees and performance fees |
| Investment income (AM only) | Income earned on investment portfolios (i.e. fixed interest and cash, infrastructure, equities and other) + profits / losses on fixed interest portfolios |
| Realised gains (AM only) | The net profit/(loss) on disposal of investment portfolio assets less fees |
| Interest paid and selling expenses (AM only) | Interest paid to annuitants + commissions and other costs paid to third parties to raise annuities |
| Net investment income (AM only) | Net rental income + investment income + realised gains less interest paid and selling costs |
| Fees received | AM - management fees, performance fees & advisory fees (net of asset origination costs) MM - management fees and excess spread fees earned on securitisation vehicles FM - management & performance fees FP - gross brokerage and platform income (Genesys) and administration fee income (Synergy) |
| Fees & commissions paid | MM - trailing expenses paid to mortgage originators. Accounted for on an accruals basis with cash flow closely aligned to accounting treatment. FM – upfront and trailing expenses paid to financial planners and advisers FP - commission represents Financial planners share of gross brokerage (Genesys) and commissions (Synergy) |
| AM – note: included in interest paid and selling costs challenger |
Glossary
| Acquisition cost amortisation (MM only) |
Amortisation of upfront payments to mortgage originators (deferred acquisition costs) spread over expected average life of loans plus upfront capitalised bond issuance and securitisation costs (deferred portfolio costs) spread over the expected life of each securitisation pool so as to achieve an "effective yield" comparison. Amortisation rates are reviewed periodically. |
|---|---|
| Net fee income | Fees received less fees and commissions paid less acquisition cost amortisation |
| Other income | Includes non recurring income such as gains on sale or exit of non core businesses or assets |
| Net income | Net investment income + Net fee income + Other income |
| Employee expense | Includes fixed and variable incentive components of remuneration structures. Also includes the amortisation of employee share schemes as required under AIFRS (not required under AGAAP prior to FY05). The amortisation of LTIP is only reported within the Corporate section as Challenger's practise is not to allocate these charges to each division. |
| Other expense | Unless disclosed otherwise, all non employee expenses. |
| Significant items | Non recurring or abnormal income or expense items within each reporting period. Purpose being to assist analysis of the normalised or underlying profit performance of Challenger. |
| Net Assets | An approximation of the net capital utilisation in each division. Net Assets (and RONA targets) are reset as at 1 July in each financial year. |
| Return on Net Assets (RONA) | EBIT divided by Net Assets expressed as a %. RONA concept was introduced from 1 July 2004 for FY05. Each division has a RONA target which is reset on 1 July each year. |
| Consolidated Profit & Loss | Statutory | 1999 - Paul III (1999) | ||||
|---|---|---|---|---|---|---|
| AIFRS | AGAAP | AIFRS | ||||
| Income Net rental income Investment income Net realised and unrealised gains / (losses) Annuitant funding & policy liability movements Net investment income Fee income Other income Underlying net income |
FY 06 FY 05 63 154 158 (160) 215 190 14 418 |
FY 04 96 121 178 (186) 209 105 38 352 |
2H 06 | 1H 06 63 78 36 (49) 127 119 17 262 |
2H 05 33 73 51 (54) 103 109 $\overline{7}$ 219 |
1H 05 30 81 107 (106) $\overline{11}$ 81 $\mathcal{I}$ 200 |
| CIF revenue Interest & fee income in SPV's Net income |
$\theta$ 1,171 1,590 |
252 | 21 668 951 |
$\theta$ 614 832 0 |
0 558 757 |
|
| Expense Employee expenses Depreciation Occupancy costs Other expenses Underlying expenses |
(132) (7) (8) (73) (220) |
(104) (3) (11) (69) (187) |
(83) (7) (4) (41) (335) |
$\circ$ (73) (5) (4) (34) (116) |
(59) (2) ${4}$ (39) (105) |
|
| Inexus overheads Interest expense & distributions relating to SPV's Goodwill amortisation Total operating expenses |
0 (1,171) 0 (1392) |
ß $\Omega$ (20) 1207 |
(6) (668) (809) |
$\circ$ (614) (729) |
0 (558) (663) |
|
| EBIT | 198 | 145 | 142 | O 103 |
95 | |
| Interest & borrowing costs Share of net profits/(losses) of associates |
(35) $\overline{\mathbf{z}}$ |
(28) 0 |
(45) 0 |
(20) 0 |
(15) 2 |
|
| Significant items | $\theta$ | (280) | (15) | $\circ$ | $\circ$ | |
| Net profit before tax | -1661 | (162) | 83 | 83 | 82 | |
| Tax | (45) | (40) | (30) | (19) | (26) | |
| Losses attributable to minority interests | $\theta$ | $\Omega$ | $\mathcal{I}$ | |||
| Net profit after tax | 420 | (203) | 60 | 65 | 55 | |
| Underlying Expenses/Net income | 52.7% | 53.2% | 51.6% | 52.8% | 52.5% | |
| EBIT Margin (EBIT/Underlying net income) | 47.3% | 41.2% | 54.1% | 47.2% | 47.5% | |
| Effective tax rate | 27.2% | $-24.7%$ | 36.1% | 22.2% | 32.4% |
challenger $\bigotimes_{28}$
Consolidated Profit & Loss
Reconciliation of Statutory to Historic Cost
| FY 06 FY 05 |
2H 06 1H 06 |
2H 05 | 1H 05 | ||
|---|---|---|---|---|---|
| Statutory net profit before tax | 165 | 83 | 83 | 82 | |
| ij. | Recurring items Sabtract excess of movement in fair value of investment assets over accrued investment income under historic cost |
(86) | (23) | (15) | (71) |
| 荊 | Add excess of movement in fair value of policyholder/annuity liabilities over accrued annuity interest under historic cost | 40 | (12) | (5) | 45 |
| -iii) | Other | 3 | (5) | 9 | |
| iv) | Non recurring items Subtract borrowing & financing costs of investment properties which are amortised under historic cost |
(8) | 0 | (6) | (2) |
| v) | Asset management fees not reported in statutory result | 14 | O | ||
| vi) | Change in fair value of CIF swap excluded from historic cost | 19 | O | ||
| Historic cost net profit before tax | 83 | 52 |
Challenger adopts AIFRS reporting for all divisions but provides the market with performance reporting based upon modified historic cost accounting principles for the operations of the Life company within the Asset Management division. With the exception of the Life company, for all other divisions reporting under historic cost is equivalent to that provided under AIFRS.
As a consequence all the adjustments shown above to reconcile the reported historic cost result to the published statutory result are derived from differences in treatment in the Life company results.
These are predominantly :-
-
Recognising the impact of the requirement to account for the movement in the fair value (mark to market) of the assets of the Life company via P&L under AIFRS whereas in historic cost assets are held at lower of cost or market.
-
Recognising the impact of the requirement to account for the movement in the fair value (mark to market) of the life investment contracts of the Life company via P&L under AIFRS whereas in historic cost assets are held at cost.
gaanaanaanaa
Consolidated Profit & Loss
Historic cost1
Mahalika Mahali (1999)
Sarahin di mahali dalam mahali (1999)
| 2006 | 2005 | 2004 | 2H 06 | 1H 06 | 2H 05 | 1H 05 | 2H 04 | 1H 04 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Income | Net rental income | 55 | 84 | 49 | 27 | 28 | 42 | 42 | ||
| Investment income | 138 | 82 | 50 | 67 | 71 | 44 | 38 | |||
| Realised gains | 51 | 29 | 17 | 15 | 36 | 24 | 5 | |||
| Interest paid & selling costs Net investment income |
(122) 322 |
(109) -86 |
(61) bb. |
(60) 認め |
(62) $\mathbb{Z}^{2}$ |
(55) 55 |
(54) BII |
|||
| Fees received | 458 | 287 | 294 | 249 | 209 | 169 | 118 | |||
| Fees & commissions paid | (178) | (109) | (104) | (92) | (87) | (61) | (48) | |||
| Acquisition cost amortisation | (62) | (38) | (37) | (32) | (30) | (26) | (12) | |||
| Net fee income Other income |
核化 2 |
420 0 |
i isp 5 |
128 $\mathbf{2}$ |
92. 0 |
$\mathbb{R}^2$ 0 |
59 0 |
|||
| Met meome. | 28 P. | Ø. | DÁR. | arza. | 265 | 126. | 90 | |||
| Expense | ||||||||||
| Employee expenses Purchased services |
(132) (11) |
(95) (6) |
(79) (11) |
(73) (6) |
(59) (5) |
(50) (4) |
(45) (2) |
|||
| Occupancy expense | (12) | (8) | (6) | (7) | (5) | (4) | (4) | |||
| IT | (9) | (8) | (5) | (5) | (4) | (4) | (4) | |||
| Other expenses | (45) | (31) | (17) | (25) | (20) | (14) | (16) | |||
| Total operating expenses: | (209) | (147) | (116) | (116) | (93) | (76) | (71) | |||
| EBIT | 302 | 79 | 96. | 80. | 522 | i6D. | - 16 | |||
| Interest | (17) | (11) | (13) | (8) | (9) | (8) | (3) | |||
| Net profit before tax | 316 | 68 | 83 | 32. | 63 | 52 | $\overline{16}$ | |||
| Tax | (31) | (21) | (25) | (13) | (18) | (15) | (6) | |||
| Net profit after tax | 84 | 47 | - 13 | 39 | 71. | 37 | -40. | |||
| Expense to income | 61.3% | 65.3% | 54.7% | 65.8% | 56.5% | 56.0% | 79.3% | |||
| EBIT margin | 38.7% | 34.7% | 45.3% | 34.2% | 43.5% | 44.0% | 20.7% | |||
| Net investment income/Net income | 35.7% | 38.1% | 25.9% | 27.8% | 44.2% | 40.3% | 34.6% | |||
| Net fee income/Net income | 63.7% | 61.9% | 71.7% | 71.2% | 55.8% | 59.7% | 65.4% | |||
| Other income/Net income | 0.5% | 0.0% | 2.4% | 1.0% | 0.1% | 0.0% | 0.0% | |||
| Effective tax rate | 26.9% | 31.1% | 30.0% | 24.8% | 28.6% | 28.8% | 38.7% |
Challenger adopts modified historic cost accounting basis for reporting the operations of the Life company within the Asset Management division.
All other aspects of Challenger's financial reporting are per AIFRS.
Consoldated Balance Sheet - AIFRS reconciliation
| AIFRS | AIFRS | AGAAP | ||||
|---|---|---|---|---|---|---|
| \$000's | \$000's | \$000's | ||||
| 1 July 2005 | Movement | 30 June 2005 | Movement | 30 June 2005 | ||
| Assets | ||||||
| Cash & cash equivalents | 496.401 | 0 | 496.401 | 0 | 496.401 | |
| Secuitised cash & cash equivalents | 0 | 0 | ||||
| Receivables | 156,516 | 0 | 156,516 | (132, 433) | 288,949 | |
| Debt securities | $\Omega$ | (753.897) | 753,897 | |||
| Investment assets | 1.064.093 | (304, 550) | 1.368.643 | 1,368,643 | ||
| Other financial assets | (91) | (91) | (334) | 334 | ||
| Equity securities | 0 | (270, 064) | 270,064 | |||
| Available for sale securities | 302,415 | 302.415 | o | |||
| Infrastructure assets | 0 | (344, 426) | 344,426 | |||
| Securitised assets | 16,944,804 | 0 | 16,944,804 | 16,944,804 | ||
| Investment properties | 1,683,299 | 0 | 1,683,299 | 5,097 | 1,678,202 | |
| Fixed assets | 10,958 | 0 | 10,958 | (18, 270) | 29,228 | |
| Deferred tax assets | 24,399 | 13,502 | 10,897 | 3,201 Ω |
7,696 | |
| Investment accounted for under the equity method | 2,812 | 0 0 |
2,812 | 2,812 | ||
| Goodwill Other intangible assets |
562,201 18,269 |
0 | 562,201 | (9.234) 18,269 |
571,435 | |
| Other assets | 157,280 | 78 | 18,269 157,202 |
157,124 | ||
| Securitised other assets | 0 | 78 0 |
||||
| Total assets | ETREEBRITG | 11,354 | PIRTIPANDA | 16,811,434 | 4 600,568 | |
| Liabilities | ||||||
| Payables | 238,483 | 6.876 | 231.607 | (44, 944) | 276,551 | |
| Current tax payable | 44.944 | 0 | 44,944 | 44.944 | ||
| Derivative liabilities | 526 | 526 | 0 | |||
| Securitised payables | 0 | 0 | ||||
| Securitised cash flow derivatives | 0 | $\theta$ | ||||
| Interest bearing liabilities | 600.713 | $\Omega$ | 600,713 | Ω | 600,713 | |
| Securitised liabilities | 16,955,534 | 10,730 | 16,944,804 | 16,944,804 | ||
| Provisions | 66.974 | o | 66,974 | 8,985 | 57,989 | |
| Deferred tax liabilities | 94,092 | 36 | 94,056 | 1.529 | 92,527 | |
| Life insurance policy liabilities | 2,311,027 | 39.081 | 2.271.946 | Ω | 2,271,946 | |
| Total liabilities | 20,612,296 | 57.249 | 20,255,024 | 16,955,318 | 3-299,726 | |
| Net assets | INTER URI | (45, 895) | 44664958 | (143, 884) | 14300X212 | |
| Shareholder equity | ||||||
| Contributed equity | 1,234,858 | (256) | 1,235,114 | (128, 839) | 1,363,953 | |
| Reserves | 70,860 | (285) | 71,145 | 9.445 | 61,700 | |
| Retained losses | (183, 925) | (34, 624) | (149, 301) | (24, 490) | (124, 811) | |
| Total equity attributable to shareholders | 1,121,793 | (35, 165) | 1.156.958 | (143.884) | 1,300,842 | |
| Cashflow hedge reserve - SPV's | (10, 730) | (10, 730) | 0 | |||
| Total equity | ENERUNI | (45, 895) | Existence | (143, 884) | IKHUXEPI |
Santa Utara Universitasi II.
Santa dalam katalung dalam dalam dalam
challenger
Issued Share Capital - EPS & DPS
| 2H06 | 1H06 | 2H05 | 1H05 | 2H04 | 1H04 | ||
|---|---|---|---|---|---|---|---|
| Ordinary Shares: Quoted (CGF) | |||||||
| Opening | 537,917,717 | 534,269,048 | 528.441,048 | 2,866,703,735 | 2,439,035,735 | ||
| Additions (+) i) DRP 前上TIP iii) LTIP shares bought back & cancelled |
530,669 3,548,000 (430,000) |
5,828,000 | 427,668,000 | ||||
| Reconstruction (5:1) | (2,338,262,687) | $\theta$ | |||||
| Closing Weighted average number of shares |
537,917,717 537,017,864 |
534.269.048 521,671,213 |
528.441.048 518,946,096 |
2,866,703,735 | 2.439,035,735 | ||
| Long Term Incentive Plan | |||||||
| Opening Additions (+) Subtractions (-) |
49,114,000 | 43,962,000 8,700,000 (3,548,000) |
45.880,000 3,910,000 (5.828,000) |
44,880,000 1,000,000 0 |
0 0 0 |
0 $\pmb{0}$ 0 |
|
| Closing | 49,114,000 | 43,962,000 | 45,880.000 | 44,880,000 | $\overline{0}$ | ||
| Options | Opening Additions (+) Subtractions (-) Closing Weighted average number of shares for dilutive purposes |
60,000,000 | 60,000,000 0 Đ. 60.000.000 640,041,266 |
60,000,000 0 0 60.000.000 626,267,519 |
60,000,000 0 0 60.000.000 624,358,346 |
0 60,000,000 0 60,000,000 |
0 $\pmb{0}$ $\pmb{0}$ ø |
| Earnings per share | |||||||
| Basic - statutory Basic - historic cost |
11.1 10.9 |
12.4 7.5 |
10.6 8.6 |
||||
| Diluted - statutory Diluted - historic cost |
9.3 9.1 |
10.4 6.3 |
8.8 7.2 |
||||
| Dividends per share | |||||||
| cents per share | 5.0 | 2.5 | 0 |
challenger
a a shekara
Divisional Performance - Mortgage Management
Andrew Maria (1999)
Sandari dan dan dalam bahasa dan bahasa dan bahasa dan bahasa dan bahasa dan bahasa dan bahasa dan bahasa dan
| 2006 | 2005 | 2004 | 2H 06 | 1H 06 | 2H 05 | 1H 05 | 2H 04 | 1H $04^2$ | |
|---|---|---|---|---|---|---|---|---|---|
| Income | |||||||||
| Net investment income | 0 | IO. | 0 | 0 | 0 | Q | Ű. | ŋ, | |
| Fees received | 235 | 149 | 145 | 137 | 122 | 113 | 97 | 52 | |
| Fees & commissions paid | (65) | (43) | (37) | (37) | (33) | (32) | (29) | (14) | |
| Acquisition cost amortisation | (62) | (38) | (37) | (37) | (32) | (30) | (26) | (12) | |
| Net fee income | 108 | 68 | 71 | 63 | -57 | 81 | 32 | BS | |
| Other income Net Income |
$\theta$ - 108 |
$\Omega$ 65 |
0 71 |
0 133. |
0 57 |
0 K. |
0 ZQ. |
$\circ$ -26) |
|
| Expenses | |||||||||
| Employee expenses | (33) | (20) | (21) | (19) | (16) | (17) | (14) | (6) | |
| Other | (14) | (11) | (8) | (8) | (7) | (7) | (6) | (5) | |
| Total expenses | (47) | (34) | (29) | $\overline{\mathcal{W}}$ | (23) | (24) | (20) | 70 | |
| EBIT | Ø1 | W | 42 | - 61 | 34 | 题 | 9ŵ. | 45 | |
| Expense to income | 43.5% | 45.6% | 40.8% | 42.9% | 40.4% | 47.1% | 47.6% | 42.3% | |
| EBIT margin | 56.5% | 54.4% | 59.2% | 57.1% | 59.6% | 52.9% | 52.4% | 57.7% | |
| Net fee income/Net income | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
| Net assets (\$m) | 324 | n/a | |||||||
| RONA | 18.8% | n/a | |||||||
| Average loan portfolio (\$bn) | 17.4 | 15.0 | 20.2 | 19.0 | 17.9 | 16.8 | 15.5 | 14.0 | |
| Expressed as ratio of average portfolio (bps analysis) 1 | |||||||||
| Fees received | 135 | 129 | 144 | 144 | 136 | 135 | 125 | 133 | |
| Fees & commissions paid | (37) | (39) | (37) | (39) | (37) | (38) | (37) | (40) | |
| Acquisition costs | (36) | (34) | (37) | (39) | (36) | (36) | (34) | (34) | |
| Net margin | 62 | 56 | 70 | 66 | 64 | 61 | 54 | 58 | |
| Expenses | (27) | (26) | (29) | (28) | (26) | (29) | (26) | (26) | |
| EBIT | 35 | 31 | 42 | 38 | 38 | 32 | 28 | 33 | |
| 1 - Half on Half data annualised & 1H 04 data weighted $2$ - The acquisition of Interstar occurred in Sept 2003 |
challenger
| Divisional Performance - Mortgage Management | Residential | Alan Maria ( | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2004 | 2H 06 | 1H 06 | 2H 05 | 1H 05 | 2H 04 | 1H $04^2$ | |
| Income | |||||||||
| Net investment income | Đ. | Ð | 0 | O | Ø | Ω | 0. | 6. | |
| Fees received | 214 | 127 | 133 | 126 | 112 | 102 | 86 | 41 | |
| Fees & commissions paid | (65) | (43) | (37) | (37) | (33) | (32) | (29) | (14) | |
| Acquisition cost amortisation | (62) | (38) | (37) | (37) | (32) | (30) | (26) | (12) | |
| Net fee income Other income |
87 | ZB | 59 | 52 | Z. $\Omega$ |
240 | 24. 0 |
T. | |
| Net income | 0 ØZ |
0 48 |
0 59 |
0 52. |
$\Delta I$ | 0 -40 |
24 | 0 15. |
|
| Expenses | |||||||||
| Employee expenses | (28) | (15) | (18) | (16) | (14) | (14) | (11) | (4) | |
| Other | (12) | (9) | (7) | (7) | (6) | (6) | (6) | (3) | |
| Total expenses | (40) | (23) | (25) | (23) | (20) | [26] | ílí A | ka) | |
| EBIT | 27 | 22 | 34 | 28 | $2\pi$ | 20 | 44 | $\mathbf{B}$ | |
| Expense to income | 46.0% | 52.2% | 42.4% | 44.2% | 42.6% | 50.0% | 54.8% | 46.7% | |
| EBIT margin | 54.0% | 47.8% | 57.6% | 55.8% | 57.4% | 50.0% | 45.2% | 53.3% | |
| Net fee income/Net income | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
| Average Ioan portfolio (\$bn) | 14.9 | 12.7 | 17.7 | 16.5 | 15.5 | 14.4 | 13.2 | 11.9 | |
| Expressed as ratio of average portfolio (bps analysis) 1 | |||||||||
| Fees received | 143 | 133 | 150 | 153 | 144 | 142 | 130 | 138 | |
| Fees & commissions paid | (44) | (45) | (42) | (45) | (43) | (45) | (44) | (47) | |
| Acquisition costs | (41) | (40) | (42) | (45) | (41) | (42) | (39) | (40) | |
| Net margin | 58 | 48 | 67 | 63 | 61 | 56 | 47 | 50 | |
| Expenses | (27) | (25) | (28) | (28) | (26) | (28) | (26) | (24) | |
| EBIT | 31 | 23 | 38 | 35 | 35 | $\overline{28}$ | 21 | 27 | |
| 1 - Half on Half data annualised | |||||||||
| $2$ - The acquisition of Interstar occurred in Sept 2003 |
Simon para la provincia de la provincia de la provincia de la provincia de la provincia de la provincia de la
| Divisional Performance - Mortgage Management | Commercial | genaamaan ay maraan ah ah iyo dhaqaan. Gaadaha Dariis Madamadda |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2004 | 2H 06 | 1H 06 | 2H 05 | 1H 05 | 2H 04 | 1H 04 | |||
| Income | |||||||||||
| Not hwestment income Fees received |
O. | Ű | 0 | Ю | 0. | 0 | 0, | Q, | |||
| Fees & commissions paid | 21 0 |
22 0 |
12 0 |
11 $\Omega$ |
10 0 |
11 0 |
11 0 |
11 0 |
|||
| Acquisition cost amortisation | 0 | Ô | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Net fee income | ÞП | P | 12 | 4A | 40 | 11 | 44. | $\overline{M}$ | |||
| Other income | 0 | Ô | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Not income | 21 | PA | 12 | m | . 10. | $\mathbf{11}$ | 44 | $\overline{M}$ | |||
| Expenses | |||||||||||
| Employee expenses | (5) | (5) | (2) | (4) | (3) | (2) | (3) | (2) | |||
| Other | (2) | (2) | (2) | 0 | 0 | (2) | 0 | (2) | |||
| Total expenses | m | $\overline{(7)}$ | (4) | $\langle 4 \rangle$ | (a) | (4) | IØ) | IZ I | |||
| EBIT | 14 | 15 | 8 1 | 8 | |||||||
| Expense to income | 33.3% | 31.8% | 33.3% | 36.4% | 30.0% | 36.4% | 27.3% | 36.4% | |||
| EBIT margin | 66.7% | 68.2% | 66.7% | 63.6% | 70.0% | 63.6% | 72.7% | 63.6% | |||
| Net fee income/Net income | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |||
| Average loan portfolio (\$bn) | 2.4 | 2.2 | 2.5 | 2.4 | 2.4 | 2.4 | 2.3 | 2.1 | |||
| Expressed as ratio of average portfolio (bps analysis) 1 | |||||||||||
| Fees received | 87 | 100 | 95 | 90 | 82 | 92 | 97 | 103 | |||
| Expenses | (29) | (32) | (32) | (33) | (25) | (33) | (27) | (38) | |||
| EBIT - Half on Half data annualised |
58 | 68 | 63 | 57 | 58 | 58 | 71 | 66 | |||
challenger
Divisional Performance - Funds Management
a Banda Kalif
| 2006 | 2005 | 2004 | 2H 06 | 1H06 | 2H05 | 1H 05 | 2H 04 | 1H 04 | |
|---|---|---|---|---|---|---|---|---|---|
| Income | |||||||||
| Net Investment Income Fees received |
0. 76 |
O 75 |
Ú | Ó. 44 |
Û. | Ó 40 |
¢ 35 |
||
| Fees & commissions paid | (20) | (28) | 52 (12) |
(10) | 32 (11) |
(14) | (14) | ||
| Acquisition cost amortisation | 0 | Ð | Ð | 0 | Ð | 0 | 0 | ||
| Net fee income | 56 | 47 | 39 | 35 | $\mathbf{2}$ | 26 | 21 | ||
| Other income | 0 | 3 | ∩ | 0 | 0 | ||||
| Net income | 57 | $\overline{A}$ | 42 | 36 | $\overline{22}$ | 26 | $\overline{21}$ | ||
| Expenses Employee expenses |
(39) | (29) | (22) | (24) | (15) | (16) | (14) | ||
| Other | (28) | (22) | (13) | (19) | (9) | (12) | (11) | ||
| Total expenses | (67) | 1.62.1 | (35) | (43) | (24) | (27) | (25) | ||
| EBIT | (12) | W | 11 | $\sqrt{3}$ | (1) | $\sqrt{4}$ | |||
| Expense to income | 117.1% | 110.0% | 83.9% | 119.3% | 113.5% | 103.8% | 117.7% | ||
| EBIT margin | $-17.1%$ | $-10.0%$ | 16.1% | $-19.3%$ | $-13.5%$ | $-3.8%$ | $-17.7%$ | ||
| Net fee income/Net income | 98.1% | 100.0% | 94.0% | 97.2% | 99.5% | 100.0% | 100.0% | ||
| Other income/Net income | 1.9% | 0.0% | 6.0% | 2.8% | 0.5% | 0.0% | 0.0% | ||
| Net assets (\$m) | 77 | n/a | |||||||
| RONA | n/a | n/a | |||||||
| 1 - The acquisition of HSBC Asset Management business occurred in March 2005 with \$3bn FuM acquired. |
Refer appendix 12 for AIFRS impacts due to revised treatment of acquisition restructure costs in 2H05
Divisional Performance - Asset Management
11:44 M . La Alexandro Andrew Andrew Andrew Andrew A
a katika matangan kalendar dan bagi dalam kalendar dan bagi dalam bagi dalam bagi dalam bagi dalam bagi dalam
Kabupaten dan bagi dalam bagi dalam bagi dalam bagi dalam bagi dalam bagi dalam bagi dalam bagi dalam bagi dal
| л!№119201°⊞°291-71 | 2006 | 2005 | 2004 | 2H 06 | 1H 06 | 2H 05 | 1H 05 | 2H 04 | 1H 04 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Income | ||||||||||
| Net rental income | 55 | 84 | 49 | 27 | 28 | 42 | 42 | |||
| Investment income | 138 | 82 | 50 | 67 | 71 | 44 | 38 | |||
| Realised gains | 51 | 29 | 17 | 15 | 36 | 24 | 5 | |||
| Interest paid & selling costs | (122) | (109) | (61) | (60) | (62) | (55) | (54) | |||
| Net investment income | 122 | BG | 55. | 29 | 78 | 縣家 | BØ. | |||
| Fees received | 15 | 30 | 14 | 1 | ||||||
| Fees & commissions paid | 0 | $\theta$ | 0 | 0 | 0 | 0 | ||||
| Acquisition cost amortisation Net fee income |
0 15 |
$\mathbb{R}$ | $\Omega$ $30\,$ |
0 14 |
0 Ä |
0 T |
0 đ. |
|||
| Other income | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Net income | 137 | $\overline{88}$ | 85 | 63 | 74 | 56 | 32 | |||
| Expenses | ||||||||||
| Employee expenses | (25) | (18) | (18) | (16) | (9) | (9) | (9) | |||
| Other | (12) | (8) | (7) | (7) | (5) | (3) | (5) | |||
| Total expenses | (37) | (26) | (25) | (23) | (14) | (12) | (14) | |||
| EBIT | 100 | $62\,$ | 60 | 40 | 60 | 44 | - 6 | |||
| Expense to income | 27.0% | 29.5% | 29.4% | 36.5% | 18.9% | 21.4% | 43.8% | |||
| EBIT margin | 73.0% | 70.5% | 70.6% | 63.5% | 81.1% | 78.6% | 56.3% | |||
| Net investment income/Net income | 89.1% | 97.7% | 64.7% | 77.8% | 98.6% | 98.2% | 96.9% | |||
| Net fee income/Net income | 10.9% | 2.3% | 35.3% | 22.2% | 1.4% | 1.8% | 3.1% | |||
| Net assets (\$m) | 483 | n/a | ||||||||
| RONA | 20.7% | n/a | ||||||||
| Average investment assets (\$m) | 2,894 | |||||||||
| Net investment income/Average investment assets | 4.2% |
1 Challenger adopts modified historic cost accounting basis for reporting the operations of the Life company within the Asset Management division. All other aspects of Challenger's financial reporting are per AIFRS.
Divisional Performance - Financial Planning
e de la decidad
| 2006 | 2005 | 2004 | 2H 06 | 1H06 | 2H 05 | 1H 05 1 | 2H 04 | 1H 04 | |
|---|---|---|---|---|---|---|---|---|---|
| Income | |||||||||
| Net Total Investment Income Fees received |
$\mathbf{0}$ 132 |
л 61 |
0 75 |
0 69 |
0 63 |
- 0 31 |
Q 30 |
||
| Fees & commissions paid | (93) | (38) | (55) | (49) | (44) | (18) | (20) | ||
| Acquisition cost amortisation | 0 | Ð | 0 | 0 | 0 | 0 | 0 | ||
| Net fee income | 79 | EÑ | 20. | Ø | 19 | $\frac{1}{2}$ | $\mathbf{u}$ | ||
| Other income | Ð | 3 | 0 | O | 0 | ||||
| Net income | 39 | 23 | 23 | 21 | 19 | $\sqrt{2}$ | $\sqrt{1}$ | ||
| Expenses | |||||||||
| Employee expenses | (19) | (12) | (10) | (10) | (10) | (6) | (6) | ||
| Other | (15) | (11) | (7) | (6) | (9) | (6) | (5) | ||
| Total expenses | (34) | (24) | (1) | 115) | (19) | (12) | ÚТ | ||
| EBIT | ð | m | A, | C. | 40 | Ō. | 抑 | ||
| Expense to income | 86.8% | 103.5% | 76.3% | 73.7% | 101.1% | 100.0% | 107.5% | ||
| EBIT margin | 13.2% | $-3.5%$ | 23.7% | 26.3% | $-1.1%$ | 0.0% | $-7.5%$ | ||
| Net fee income/Net income | 98.2% | 100.0% | 88.6% | 96.6% | 100.0% | 100.0% | 100.0% | ||
| Other income/Net income | 1.8% | 0.0% | 11.4% | 3.4% | 0.0% | 0.0% | $0.0\%$ | ||
| Net assets (\$m) | 130 | n/a | |||||||
| RONA | 4.0% | n/a | |||||||
| 1 - The acquisition of Associated Planners in August 2004 (1H 05) was subsequently merged with Garrisons to form Genesys in March 2005. |
Refer appendix 12 for AIFRS impacts due to revised treatment of acquisition restructure costs in 1H05
| Corporate | ayang ang mga mga mga mga mga mga mga mga mga mg | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income | 2006 | 2005 | 2004 | 2H 06 | 1H 06 | 2H 05 | 1H 05 | 2H 04 | 1H 04 |
| Net income | n. | Ø. | $\Omega$ | n. | m | ||||
| Expenses | |||||||||
| Employee expenses 1 | (17) | (15) | (9) | (8) | (8) | (5) | (10) | ||
| Purchased services | (2) | (2) | (1) | (1) | 0 | 0 | |||
| Other expenses Total expenses |
(6) (24) |
(15) | (1) (12) |
(3) (12) |
(3) (12) |
0 (5) |
0 (10) |
||
| EBIT | (24) | (15) | (12) | (12) | (12) | (5) | (10) | ||
| Interest & borrowing costs | (17) | (11) | (13) | (8) | (9) | (8) | (3) | ||
| Net Profit / (Loss) Before Tax | (41) | (26) | (25) | (20) | Ø | (15) | (13) | ||
| $\text{Tax}^2$ | (31) | (21) | (25) | (13) | (18) | (15) | (6) | ||
| Net Profit / (Loss) After Tax | (72) | $\mathcal{W}_\ell$ | (50) | (33) | (39) | (25) | (19) | ||
| Headcount - FTE | 901 | 1,030 | 926 | 901 | 870 | 1,030 | 902 | ||
| 1 LTIP amortisation under AIFRS commenced 1H 05 2 Tax is reported at Group level |
a katika kuningan katika kuningan sa katika atau sama da ana da an ana da an an an an an an an an an an an an
Katika atau katika atau katika atau katika atau katika atau atau katika atau atau katika atau atau atau atau a
Group Assets & Loans under Management
| 2H 06 | 1H 06 | 2H 05 | 1H 05 | 2H 04 | 1H 04 | |
|---|---|---|---|---|---|---|
| Mortgage Management | ||||||
| Residential | 18,258 | 17,190 | 16.033 | 15.081 | 13.822 | 12,535 |
| Commercial | 2,643 | 2,516 | 2,438 | 2,466 | 2,407 | 2,203 |
| Total Mortgages under Management | 20,901 | 19,706 | 18,471 | 17,547 | 16,229 | 14,738 |
| Funds Management | ||||||
| Funds under management | 12,868 | 11,943 | 10,579 | 6,916 | 5,891 | 5,254 |
| Asset Management | ||||||
| Assets managed for the Life company | ||||||
| Property † | 1.515 | 1.422 | 1,329 | 969 | 823 | 875 |
| Debt investments (inlouding hybrids) & cash | 1,055 | 1,284 | 1.124 | 1,667 | 1.756 | 1,307 |
| Infrastructure assets 2 | 409 | 301 | 344 | 271 | 0 | 0 |
| Equity & other | 97 | 108 | 153 | 104 | 72 | 169 |
| Sub total | 3,076 | 3,115 | 2,950 | 3,011 | 2,651 | 2,351 |
| Funds | ||||||
| CWT | 295 | 298 | 288 | 273 | 253 | 242 |
| CIFCA (adjusted eq value) | 294 | 378 | 0 | 0 | 0 | 0 |
| Sub total funds | 589 | 676 | 288 | 273 | 253 | 242 |
| Total - Assets under Management | 3,665 | 3,791 | 3,238 | 3,284 | 2,904 | 2,593 |
| Financial Planning | ||||||
| Funds under administration 3 | 1,914 | 1,833 | 1,742 | 1,744 | 1,668 | 3,264 |
| Adjustments 4 | (2,801) | (2.719) | (2,438) | (2.466) | (2,407) | (2, 203) |
| Total assets & loans under management/admin. | 36,547 | 34,554 | 31,592 | 27,025 | 24,285 | 23,646 |
Refer Quarterly Asset & Funds Under Management reports for greater detail
1: Net senior debt
2: Including Life investment in CIFCA
3: Funds under Administration for 1H 04 includes \$1,660 Corporate Superannuation Business which was subsequently sold
4: Adjustments reflect the prevention of double counting of cross holdings of Commercial Lending and Life Company investment in CIF (adjusted equity value)
agasidi (Ki
Reconciliation of Wealth Management segment reporting to Funds Management and Financial Planning
ES ES DE LA
| $\sin$ | FY05 | FY04 | 1H06 | 2H05 | 1H05 | 2H04 | 1H04 |
|---|---|---|---|---|---|---|---|
| Wealth Management EBIT reported under AGAAP (1) | 6 | (5) | n/a | 5 | 1 | (1) | (4) |
| Less: Acquisition restructure adjustments under AIFRS | |||||||
| • HSBC Asset Management acquisition (FM) | (7) | μ. | n/a | (7) | |||
| Associated Planners acquisition (FP) $\bullet$ |
(4) | $\blacksquare$ | n/a | $\blacksquare$ | $\left( 4\right)$ | ||
| Wealth Management EBIT reported under AIFRS (2) | (5) | (5) | 12 | (2) | (3) | (1) | (4) |
| Attribution to new corporate structure: Funds Management (3) Financial Planning $(3)$ |
(10) 5 |
(5) (1) |
7 5 |
(7) 5 |
(3) $\mu_{\rm B}$ |
(1) $\omega_{\rm C}$ |
(4) (1) |
| Rounding | 1 | ||||||
| (5) | (6) | 12 | (2) | (3) | (1) | (4) | |
1As reported 16 September 05 Educational Briefing
2 As reported Dec 05 Half Year Results
3 Financial Planning division now incorporates Synergy. In previous reporting packages certain supplementary information reported Synergy within the 'Funds Management' sub segment of Wealth Management.
