ANZ Bank says NZ unit 'performing strongly' in 1Q as cash profit falls 0.2%

Tuesday 17th February 2015

Inventis, the unprofitable furniture and technology company, has sold its New Zealand unit to a Hamilton-based building firm for an undisclosed sum.

Cash profit, which strips out changes in the value of financial instruments, slipped to $415 million in the three months ended Dec. 31 from $416 million a year earlier, as net interest income edged up 4 percent to $717 million. Statutory net profit gained 8 percent to $425 million.

The Melbourne-based bank said its New Zealand unit, the country's biggest lender, expanded its balance sheet in the period, with a 5 percent increase in gross lending and a 7 percent gain in customer deposits. The lender showed continued gains from the 2012 merger of its brands and systems, in a benign credit environment.

"In New Zealand our market position is seeing us benefit from the economic upturn supported by further productivity outcomes," ANZ chief executive Mike Smith said in a statement.

ANZ's local division lifted annual cash profit 17 percent to $1.68 billion in 2014 as it cut down on duplicated costs from the merger programme and benefited from home loan growth.

The Australian bank reported group cash profit of A$1.79 billion in the three months ended Dec. 31, compared to A$1.73 billion a year earlier. Statutory net profit was unchanged at A$1.65 billion.

The New Zealand unit's retail banking sector reported a 2 percent decline in cash profit to $125 million while its commercial division lifted earnings 5 percent to $192 million.

ANZ's New Zealand branch had housing loans worth $62.75 billion as at Dec. 31 and non-housing loans of $40.59 billion. Term deposits were $34.2 billion at the balance date.

The dual-listed shares were unchanged at $37.18 on the NZX.

BusinessDesk.co.nz

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