The report provides review and analysis of key trends, with a focus on:

• considering the financial performance of the ASX50 group of companies as an indicator of the economy in general
• analysing trends by eight industry sectors, with specific focus on the contribution of mining companies and the ‘Big 4’ banks
• comparing and analysing profits reported under statutory and non-statutory (underlying/non-conforming) measures.

All amounts are in Australian dollars, unless otherwise stated.

• Annual revenue has reduced by $13 billion (2 percent) despite 68 percent of the companies reporting an improvement in annual revenue. This is the first time in the survey period that annual revenue has reduced. This is due to the impact of the continued decline in commodity prices on the mining sector and the energy and utilities sector which has more than offset the growth stories in the remainder of the ASX50 group.
• Annual statutory profit before tax has reduced $8.5 billion (8 percent) to $102 billion. Thirty of the ASX50 companies reported a growth in statutory profits and there is a generally positive trend across most industry sectors.
• Thirty-six (72 percent) of the 50 companies reported an alternative measure of financial performance in addition to annual statutory profit. On a pre-tax basis these results exceeded annual statutory profits by $12 billion (12 percent) primarily due to the exclusion of $9 billion of impairment charges and $3 billion of other items.
• Annual impairment charges recorded in statutory profit before tax have decreased by 17 percent to $12 billion. Whilst 18 of the 50 companies have impairment charges greater than $50 million (excluding impairment of receivables in the ‘Big 4’ banks), the size of these impairments has reduced.