Income Statements For the year ended 30 June 2018 Group (1) Bank (2) 30 Jun 18 30 Jun 17 30 Jun 16 30 Jun 18 30 Jun 17 Note SM $M SM SM $M Interest income 2.1 34,543 33,301 33,819 33,418 33,534 Interest expense 2.1 (16,202) (15,758) (16,961) (17,007) (17.764) overview Net interest income 18,341 17,543 16,858 16,411 15,770 Performance Other banking income 5,390 5,684 4,628 7,365 6,955 Net banking operating income 23,731 23,227 21,486 23,776 22,725 Net funds management operating income 2,099 1.928 1,916 Net insurance operating income 302 231 215 Total net operating income before impairment and operating expenses 26,132 25,386 23,617 23,776 22,725 governance Corporate Loan impairment expense 3.2 (1,079) (1,095) (1,256) (963) (1,040) Operating expenses 2.4 (11,633) (10,626) (9,996) (10,510) (9,560) Net profit before tax 13,420 13,665 12,365 12,303 12, 125 Corporate tax expense 2.5 (4,026) (3,879) (3,400) (3,293) (3,146) report Directors' Net profit after tax from continuing operations 9,394 9,786 8,965 9,010 8,979 Non-controlling interests in continuing operations (19) (20) (20) Net profit attributable to equity holders of the Bank from continuing operations 9,375 9,766 8.945 9,010 8,979 Net (loss)/profit after tax from discontinued operations (46) 166 278 (135) Non-controlling interests in discontinued operations (4) report Net profit attributable to equity holders of the Bank 9,329 9,928 9,223 8,875 8,979 Financial The above Income Statements should be read in conjunction with the accompanying notes. Earnings per share for profit attributable to equity holders of the parent entity during the year: inform 1841030 Jun 18 30 Jun 17 30 Jun 18 30 Jun 17 Assets Note SM SM $M $M Cash and liquid assets 5.1 36,417 45,850 33,581 42,814 Receivables due from other financial institutions 5.2 9,222 10,037 8,376 8,678 Assets at fair value through Income Statement: Trading 5.3 32,254 32,704 29,993 31,127 Insurance 5.3 372 13,669 Other 5.3 258 1,111 796 Derivative assets 5.4 32,133 31,724 30,885 32,094 Available-for-sale investments 5.5 82,240 83,535 77,731 79,019 Loans, bills discounted and other receivables 3.1 743,365 731,762 656,650 647.503 Bank acceptances of customers 379 463 379 463 Shares in and loans to controlled entities 11.2 118,252 101,337 Property, plant and equipment 6.1 2,576 3,873 1,460 1.494 Investment in associates and joint ventures 11.1 2,842 2,778 1,118 1,241 Intangible assets 6.2 9,023 10,024 4,399 4,449 Deferred tax assets (2) 2.5 1,439 906 1,430 1,324 Other assets 6.3 6,991 7,882 6,279 6,457 Assets held for sale 11.3 15,654 19 Total assets 975,165 976,318 970,552 958,796 Liabilities Deposits and other public borrowings 4.1 622.234 626,655 566,200 571,353 Payables due to other financial institutions 20,899 28,432 20,014 28,038 Liabilities at fair value through Income Statement 4.2 10,247 10,392 9,106 8,989 Derivative liabilities 5.4 28,472 30.330 30,871 32.173 Bank acceptances 379 463 379 463 Due to controlled entities 105,327 91,222 Current tax liabilities 952 1.450 796 1,278 Deferred tax liabilities 2.5 332 Other provisions 7.1 1.889 1,780 1,590 1,372 Insurance policy liabilities 451 12,018 Debt issues 4.3 172,294 167,571 139,984 134,966 Managed funds units on issue 2,577 Bills payable and other liabilities 7.2 11.596 11,932 10,116 10,909 Liabilities held for sale 11.3 14.900 884,313 893,932 884,383 880,763 Loan capital 8.2 22,992 18,726 22,249 17.959 Total liabilities 907,305 912,658 906,632 898,722 Net assets 67,860 63,660 63,920 60,074 Shareholders' Equity Ordinary share capital 8.3 37,270 34,971 37,533 35,262 Reserves 8.3 1,676 1,869 2,568 2,556 Retained profits (2) 8.3 28,360 26,274 23,819 22,256 Shareholders' Equity attributable to Equity holders of the 67,306 63,114 63,920 60,074Cash flows from operating activities Interest received 35,801 33,536 34,047 34,679 33,807 Interest paid (15,356) (15,006) (16,285) (16,100) (17,057) Other operating income received 6,181 5,556 5,688 4,217 3,959 Expenses paid (10,340) (9,763) (9,981) (8,739) (8,152) Income taxes paid (4,791) (3,976) (3,071) (3,892) (3,163) Net inflows/(outflows) from assets at fair value through Income Statement (excluding life insurance) 5,270 4,220 (2,642) 7,185 2,742 Net inflows/(outflows) from liabilities at fair value through Income Statement: Insurance: Investment income 225 186 (362) Premiums received (3) 3,241 3,366 3,114 Policy payments and commission expense (3 (3,453) (3,854) (3,301) Other liabilities at fair value through Income Statement (208) 156 1,872 12 1,588 Cash flows from operating activities before changes in operating assets and liabilities 16,570 14,421 9,079 17,362 13,724 Changes in operating assets and liabilities arising from cash flow movements Movement in available-for-sale investments: Purchases (51,783) (54.608) (50,233) (50,501) (53,883) Proceeds 52,832 49,392 46, 150 51,673 48,750 Net increase in loans, bills discounted and other receivables (16,105) (38,744) (52,825) (10,420) (31,708) Net decrease in receivables due from other financial institutions and regulatory authorities 884 1,100 803 583 1,121 Net decrease/(increase) in securities purchased under agreements to resell 9.258 (13,993) 4,574 9,723 (13,381) Insurance business: Purchase of insurance assets at fair value through Income Statement (1,594) (1,789) (2,020) Proceeds from sale/maturity of insurance assets at fair value through Income Statement 2,671 3,152 4,276 Net increase in other assets (11) (174) (108) (35) (152) Net (decrease)/increase in deposits and other public borrowings (876) 39,821 37,783 (4,984) 36,379 Net (decrease)/increase in payables due to other financial institutions (8,279) 666 (6,323) (8,451) 718 Net (decrease)/increase in securities sold under agreements to repurchase (1,574) (853) 4,148 (1,695) (804) Net (decrease)/increase in other liabilities (884) 802 135 (1,664) (1,947) Changes in operating assets and liabilities arising from cash flow movements (15,461) (15,228) (13,640) (15,771) (14,907) Net cash provided by/(used in) operating activities 12.3 (a) 1,109 (807) (4,561) 1,591 (1,183)Statements of Cash Flows ((continued) For the year ended 30 June 2018 Group Bank 30 Jun 18 30 Jun 17 30 Jun 16 30 Jun 18 30 Jun 17 Note $M $M SM $M SM Cash flows from investing activities Cash inflows/(outflows) from acquisitions 11.4 26 (31) (857) Net proceeds from disposal of entities and businesses (net of cash disposals) 1 110 Dividends received 68 94 78 2.085 1,200 Net amounts received from controlled entities) (2,993) 5,500 Proceeds from sale of property, plant and equipment 155 381 405 42 50 Purchases of property, plant and equipment (477) (602) (1,259) (321) (320) Payments for acquisitions of investments in associates/joint ventures (271) (25) (15) Net purchase of intangible assets (503) (495) (509) (405) (409) Net cash (used in)/provided by investing activities (1,002) (677) (2,032) (1,592) 6,006 Cash flows from financing activities Dividends paid (excluding Dividend Reinvestment Plan) (5,366) (6,084) (5,827) (5,364) (6,084) Redemption of other equity instruments (net of costs) (939) (406) Proceeds from issuance of debt securities 68,273 94,560 98,958 57,708 77,938 Redemption of issued debt securities (67,809) (81,758) (97.740) (56,692) (71.345) Purchase of treasury shares (95) (92) (108) Sale of treasury shares 55 34 50 Issue of loan capital 4,445 3,757 3,949 4,436 3,379 Redemption of loan capital (464) (1.678) (467) 3 Proceeds from issuance of shares (net of issue costs) (6) 5,022 (6) Other 27 61 (67) 36 30 Net cash (used in)/provided by financing activities (934) 10,472 1,620 (343) 3,509 Net (decrease)/increase in cash and cash equivalents (827) 8,988 (4,973) (344) 8,332 Effect of foreign exchange rates on cash and cash equivalents 715 (318) 150 746 (292) Cash and cash equivalents at beginning of year 23,117 14,447 19,270 20,949 12,909 Cash and cash equivalents at end of year 12.3 (b) 23,005 23,117 14,447 21,351 20,949