Profits up 60% for ANZ National Bank
A strong 60% profit for ANZ National Bank has been reported, following positive value gains on derivatives.
ANZ National Bank has reported a profit of $415 million for the three months to December 2011, which is up 60% in the corresponding time a year earlier.
Value gains on derivatives were responsible for this hefty profit increase, with underlying profit for the period of $351 million up 17% during the same period in the previous year.
The overall result for ANZ National Bank was an impressive performance despite current subdued economic growth, according to chief executive David Hisco.
A $30 million growth in net interest income raised it to $678 million, while a $139 million gain in other revenue totalled at $219 million.
Net lending, however, dropped $2.2 million to $93.5 billion against deposits of $69.4 billion, almost $600 million lower than the corresponding period in the previous year.
A move from fixed term mortgage interest rates to cheaper floating mortgage rates by customers seemed to continue during this time.
“Lending volumes remained relatively flat as businesses continued to de-leverage and retail customers increased deposits rather than taking on new debt,” said Mr Hisco.
“There are, however, positive signs for the economy. Retail sales were buoyed by the Rugby World Cup, and there was further encouraging news in house sales and primary production.
“However, global economic uncertainty, ongoing debt reduction and the high currency continue to dampen confidence among consumers and businesses.”
Improvement in credit quality was also reported, with individually impaired and past due loans trending slightly lower.
“There is still some uncertainty over the medium-term impacts of the Christchurch earthquakes,” added Mr Hisco, further commenting that the bank is in a comfortable financial position.
NBR Staff
Wed, 29 Feb 2012
Wed, 29 Feb 2012
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Profits up 60% for ANZ National Bank
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