ANZ's profits leap in subdued conditions
Three months out from revealing its full-year result, the country’s largest bank is closing in on another record breaker.
ANZ New Zealand has revealed a net profit of $965 million for the nine months to June – up $200 million or 31% on the same time last year.
Underlying profit before adjustments to strip out one-off items is reported at $1.024 billion, up 12% on the same time last year.
The bank’s Australian parent ANZ reported on Friday that group profit was up 5.5% at $4.5 billion for the nine-month period.
Even though profits were increasing, ANZ New Zealand chief executive David Hisco says lending growth remains subdued as households and businesses continue to repay debt.
And the recent cycle of margin growth appears to be ending as term funding costs and competition for deposits increase.
“Growth in our market share in mortgages, particularly in the commercially important Auckland market, is a reflection of our strong focus on customers, ongoing work to simplify products and processes and increased strength in the ANZ brand.”
Making the bank’s business simpler had improved cost-to-income levels, he says.
“In a subdued economy, with ongoing global uncertainties, this is critical to being a successful bank.”
ASB last week revealed its second consecutive record full-year net profit of $685m for the year to June 30 – up 21% or $117 million compared with last year.
Net interest income: $2,030 $1,932
Operating income: $2,692 $2,572
Tax: $364 $376
Underlying profit: $965 $735
Net profit: $965 $735