ANZ National becomes ANZ branch; impairment provision soars

Monday 5th January 2009

ANZ National Bank, New Zealand's largest lender, has become a branch of its Australian parent under changes it says will increase its options for raising funds.

"In the current environment ANZ believes it is prudent for banks to maximize the range of funding options available to them and funding from the parent bank is one of these options," according to a statement from Australia & New Zealand Banking Group.

The move is effective today, the bank said. In the lender's disclosure statement for its New Zealand operations, it records a jump in provision for credit impairment to NZ$302 million in the 12 months ended Sept. 30, from NZ$74 million in the previous year. Net profit fell to NZ$990 million from NZ$1.04 billion.

By Jonathan Underhill

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