Sharechat Logo

ANZ's NZ division posts 19pc increase in year profit


Thursday 24th October 2002

Text too small?
Being rated the most unpopular bank in the country did not stop ANZ increasing its September year net profit 19 percent to $A330 million ($NZ382 million) from last year's $A273 million ($NZ316 million).

ANZ was this month rated New Zealand's most unpopular bank for the second year running by a Consumer Magazine survey. It showed only 52 percent of ANZ customers surveyed rated its performance as good or very good -- well below the next worst bank, Westpac on 65 percent.

The bank's second half year net profit rose from $A142 million in the first half to $A188 million in the second half.

For the year net interest income rose 12 percent to $A580 million, fee income fell 1 percent to $A287 million and other operating income rose 51 percent to $A119 million.

Operating expenses rose 6 percent to $A476 million.

ANZ's net interest average margin was 2.82 percent for the year against 2.63 percent in 2001/02, and for the half year rose to 3.00 percent from 2.74 percent in the first half.

The annual return on risk-weighted assets was 2.19 percent against 1.95 percent in the previous year. The return rose to 2.42 percent in the second half from 1.91 percent.

Massey University's Centre for Banking Studies David Tripe has said in the past that banks profits were verging on excessive when they consistently achieved a return of over 1 percent.

The bank's profit was boosted by a one-off gain of $A32 million from the sale of its funds management business to the INGA joint venture.

New Zealand chief executive Murray Horn said that excluding the one off gain, second half profit growth was 6 percent.

"While improving, customer satisfaction levels remain below target," Mr Horn noted.

He said there had been margin improvements in personal banking, small to medium businesses and in asset finance.

This was partly offset by lower lending volumes and margins in mortgages.

The increase in expenses reflected higher sales and services costs.

The bank has reinvested in its branch network as part of a relaunch of its personal banking brand in an attempt to improve its image with customers.

Profits in the personal banking division fell to $A142 million from $A153 million althought the second half year profit improved to $A76 million from $A66 million.

At a group level, ANZ posted a full-year operating profit of $A2.32 billion ($NZ2.68) billion for the group, up 24 percent.

  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 boosts NZ market share in 3Q as margins shrink
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