Australia and New Zealand Banking Group has revealed a net profit of $386 million for the six months to March.While economic recovery had led the improvement from the previous six months, the result was down $35 million or 8% from the same time last year.
Australia and New Zealand Banking Group has revealed a net profit of $386 million for the six months to March.
While economic recovery had led the improvement from the previous six months, the result was down $35 million or 8% from the same time last year.
ANZ New Zealand chief executive Jenny Fagg said performance in the banks New Zealand operations had improved over the period as New Zealand started to emerge from the downturn.
“The New Zealand economy has stabilised in a number of areas although the recovery is somewhat uneven at this early stage.
There are signs of a lift in business conditions although growth remains subdued.
She said a significant reduction in provisions for credit impairment across the business – dropping to $330 million from $598 million in the preceding half – were the main driver of the increase in underlying profit to $372 million in the half, off a low base in the previous six months.
“Credit quality is slowly improving particularly in the retail sector but some uncertainty remains around the rural and commercial sectors.”
Ms Fagg said with the magnitude of issues in the US and Europe, the bank expected to see lower economic growth around the world compared to the decade prior to the financial crisis.
“In New Zealand we expect growth of almost 2% in 2010 after the economy contracted in 2009,” she said.
The bank's result was released while shares in ANZ were in a trading halt, which has now been lifted.
