Sharechat Logo

ANZ Bank boosts NZ market share in 3Q as margins shrink

Friday 17th August 2012

Text too small?

Australia & New Zealand Banking Group grabbed more local market share in the third-quarter, though increased competition for loans and deposits took some of the steam out of its margins.

The New Zealand unit, which is the country's biggest lender with the ANZ and National Bank brands, increased its income in the quarter, the bank said in a statement, without giving details.

The Melbourne-based lender grew New Zealand net loans 1.4 percent in the nine months ended June 30, and raised its deposits 6.9 percent, which group chief executive Mike Smith said helped the unit grab more market share, "particularly in retail".

"The business' focus on business simplification, including the planned move to a single IT platform, has positively impacted staff engagement, customer satisfaction and cost to income levels," the bank said. "The half-year margins appear to have peaked, impacted by competition for deposits and in business lending."

The Australian parent boosted underlying profit 5.5 percent to A$4.5 billion in the first nine months of the year, with increased income in Australia, New Zealand, international and institutional banking divisions. The wealth division, which includes the OnePath brand, reported a slight fall in income.

"We have managed ongoing funding and competitive pressures well, with group margins stable relative to the end of the first half," Smith said.

The group increased customer deposits 8.7 percent and lending assets 7.7 percent in the year-to-date.

The dual-listed shares were unchanged at $31 on the NZX, and have gained 13 percent this year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

ANZ Bank lifts FY underlying profit in NZ by 11 percent to $957M
ANZ Bank to invest A$300 mln in China to expand branch network
ANZ New Zealand boosts 1H earnings 13% despite lending decline
ANZ National lending falls in 1Q, deposits grow
UPDATE: ANZ New Zealand boosts FY profit 25%; loan book shrinks
Bad debts halve while late loans double for ANZ National Bank
ANZ to open local Chinese bank
ANZ farewells ING brand in favour of inhouse moniker
Court action against ANZ not worth the extra fine
ANZ reaches record settlement over ING funds