Another leap in bank earnings - this time ANZ

Australia and New Zealand Banking Group (ANZ) – the country’s largest bank - has lifted its full-year net profit $361 million to $1.243 billion.

The 41% uplift in the underlying profit, which excludes one-offs and non-cash items, was largely driven by the notable fall in bad debts provisions of $274 million or 59% to $187 million.

Revenue, for the year to September, rose $225 million or 7% to $3.453 billion.

ANZ New Zealand chief executive David Hisco said it was a pleasing result in the highly competitive local banking market.

Yesterday, Westpac also revealed a 41% earnings leap to $454 million, on a greater share of deposits and loans.

ANZ New Zealand includes The National Bank, OnePath, Directo Broking and Eftpos.

Mr Hisco said the economy was still rebalancing as households and businesses repaid debt to strengthen their financial position.

Across the Tasman, ANZ’s Australian parent revealed group profits had increased 19% to $A5.36 billion.

Chief executive Mike Smith said warned about market volatility and consumer caution and said trading conditions had deteriorated in the second half  of the reporting year.

‘‘This more difficult operating environment - characterised by ongoing economic volatility, cautious consumer and business behaviour, and higher funding and capital costs for banks globally - is likely to be with us for some time.’’

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34 Comments & Questions

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All this and still gouging their flexi mortgage clients by increasing their rates.I once read in a Sydney Newspaper the ANZ was really known at the money hungry ANZ bank,seems a very good observation.To Think the Labour Govt at the time were giving them a NZ taxpayer guarantee.ANZ are now back in the take no prisoners mode.What price loyality.

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What are you going on about? When did the Labour government give ANZ or any other bank a guarantee? I recall them giving depositers a guarantee (which the Banks paid for) but thats not what you said.

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@anon 1.02.Your reply reads to me you are making excuses about your customer interest rate rises by stealth just like you are hiding behind the cloak of anonymity.Sounds to me you dont like the cold steel.

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At a time most corporates are struggling to match profit earnings with last year, doesn't this seem just a little strange. Am I missing something, or is there a big smelly rat somewhere?

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Kiwi bank.psis ,tsb,sbs,and Heartland,
your time to shine

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Correct apart from Heartland - they are not a Bank and probably never will be

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Greedy scum!

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How does this work? Global credit crunch, major recission, funds like Kiwisaver all underperforming, property prices dead in the water, shrinking job market, whole countries on the the brink of bankruptcy, YET Aussie banks post record profits. On one hand good on them. On the other , WHAT THE....??????!!!

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Maybe it comes from Onepath raping and pillaging its 'customers' via high management fees etc?

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Thats part of it!

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It is good for our banks to be profitable. The alternative is what? Europe?

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I enjoy being a shareholder in a company that knows how to make profits in good times and bad.

Banks really are a bit like utility companies. I chose to invest in them not whinge about them.

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Well said Shareholder, I too am an investor choosing well run companies that provide a return in good times and bad. Those shareholders that have an equity stake either directly or via their Kiwisaver holdings won't be upset either, and then there is the Cullen Fund providing for our superannuation needs, also pleased I am sure that they are investing good capital in well run business.

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Its a shame most of these bank profits go offshore; especially when our overseas investments dont make up the difference.

The net effect is they is less money to go round in NZ, for which to reverse this trend.
This perhaps explains why John Key wants to bring back the youth wage.

My question is where does it end. Take a look at what the poorer areas in the US, and that will tell you.

We should be increasing the minimum wage. That way less profits leave our shore. Have a look at where the scandavian countries are today with some of the highest tax rates in the world. Its a much better place than following the so called freemarket approach.

I see the only

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Richard S, I can understand your concept, raise wages more money is retained in the NZ economy less heading offshore. Where I believe it falls over is that the majority of that additional wage will be spent on consumer goods - end result the profits will still head offshore but as well many SME NZ business holding back on expansion and possibly layoffs as their wage bill increases greater than the increased amount of spending. Let me put my concept another way, assume that over a working lifetime you personally had been purchasing a regular all be it small amount of shares in ANZ and with each dividend the company pays out re-investing that back into more shares. After 20 years of personal discipline would you be upset with your company, after all that’s what shares are a part ownership in a company, making profit and then paying part of that back to you? Ultimately what this country needs is over the next 20 years to re-educate and self discipline Kiwis so that we can not only own a greater part of the performing NZ economy but also those parts of the global economy that perform. Have a great day - Adios

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That is very good. Are you volunteering to educate the likes of Russell Norman? Bernard Hickey? Marie Rangitane? Winston Peters et al??
You'd be more productively employed teaching cows how to ride bikes. Wouldn't you?
Have a nice day

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Some of the comments are so typical of NZ peasant mentality. Anyone or company making profits must be because they are greedy.

Hi, how about good on them as they are smart, provide excellent employment opportunities for many thousands of NZers, help good businesses to flourish etc?

Pathetic peasants.

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@Anon 4.51 pm You could be quite right and maybe Goff will get the two thousand five hundred thousand dollars he wants to borrow ,perhaps from his ANZ bank.After all he sold them NZ Postbank for a song as well as the Bonus Bond scheme.One flaw in your nasty rhetoric is AND YOU HAVE CONVIENTLY MISSED IT ,WHY ARE THEY INCREASING MORTGAGES BY STEALTH.Seems they are living up to their track record as a money hungry bank which seems to put you in the same category.

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Thanks for confirming the peasant class mentality of some posters.

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It is your gouge at all costs mentality that have turned in your mind people into peasants.Peasants work for a living.banks fleece your so called peasants for a living.Bet when they came into your bank you told them what a great investment ONEPATH WAS.If your bank is so noble ,interesting to note they refused to appear on tonights CLOSEUP on TVNZ.What an indictment.

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To debate with peasant minded individuals of your ilk?

ANZ has better things to do - like raising capital from its shareholders, taking deposits from the public, lending the money, foster businesses and home ownership, making money and rewarding those who take risks.

You obviously prefer banks to be like BNZ and SCF - losing billions of taxpayers' money.

Pathetic - so typical of peasant class type mentality.

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A predatory, ultimately unproductive, activity like quasi-monopolistic (cartel) capital mis-allocation is carried out at the expense of the productive, not for their benefit. So no, bank profits in this environment are not a good sign .... like the growth of a cancerous tumour is bad sign.

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Shareholders and investors pumped $5.7 billion into ANZ in 2008/2009 to shore up the bank's capital position.

Now why do we not see any of the peasant class mental posters here comment on that?

So typical of the real parasites in NZ - do nothing, contribute nothing but want plenty.

On reflection, let me moderate that - some of them are like solo mums, breeding dependents for a living.

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@ Maria. Increasing mortgages by stealth? Huh? My loan just had its review with ANZ, I re-fixed and floated a portion today after they reduced the fix rates - and it is lower than any alternative... I think your problem is more with the brand of the bank. You either love ANZ or hate them. ANZ profits going to Aus? How about the amount of tax they pay, dividends to NZ shareholders, including as others have stated peoples KiwiSaver schemes who will have funds invested in part's of ANZ in one way or another, plus the fact they employ something like 10,000 people here? I think the money they put back into New Zealand far exceeds what KiwiBank do.

And PS: Going by your responses to people who defend ANZ, no I do not work for them.

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Would be believable if all you Anonymous bloggers had the strength of your convictions and revealed your real names.Seems to me you are happy for bank customers to be gouged.Stop hiding behind your Anon blogs for once, instead of being a bunch of SHEEPELS.Maybe you are all ANZ bank employees and are on a directive from your puppet masters.

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I too commend the Banks for looking after my deposits. Sadly it seems Maria Rangitane, Russell Norman and other economical numbskulls would seem to prefer that the banks lent our deposits to Greece? or SCF?

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Ha!Ha!Ha! Morrison take some of my ratepayers money and get a haircut.

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I should of also included Bernard Hickey in the list of numbskulls.

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I do not come from Wellington. Duh

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I'd love to be able to douse those avaricious pigs with petrol, and throw a lighted match at them.

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Stop NZers buying foreign goods like cars, TVs, consumer goods and limit overseas travel - until NZers learn to stop borrowing and start savings.

Any of you peasant minded posters think it can be done?

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Sheesh, and the rest of the world would stop buying our exports.
Hey Gaucho!! Here's another one for your education program!!

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Saludos, John Morrison (Greetings in Spanish)

Volunteering to educating those learned minds no, sorry not my cup of tea, and as for not consuming any imported goods no can do either. It’s more about understanding that there is a balance that we have ignored, and that the longer we ignore re-addressing it in a pragmatic approach the harder it will be. You have a stellar weekend - Adios

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Kiaora.

All that profit and it goes off shore to the next door neighbour across the 'Ditch' just like our other very important treasures..Our People.

Well we are all aware that the Bank's main business is 'Leveraging' I wonder how many Deposits they take in and more importantly, how many times they lend out those deposits.

Its going to be very difficult for banks such as ANZ with Capital adequacy ratios being raised all around the world, so they are going to have to diversify their income for us.

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