ANZ profits drop in half year results
Half year profits are down at New Zealand’s biggest bank, ANZ revealed today.
Tuesday, May 3rd 2016, 1:04PM
The bank’s New Zealand division posted an 11% decline in cash profit, which is the earnings measure that excludes non-core items.
Cash profit came in at $751 million for the six months to March 31.
This was down from $841 million cash profit in the same period last year.
Unaudited statutory profit was down 13% to $763 million, as compared to the same period last year.
While the bank’s net interest income grew by 5% to $1.49 billion, this was offset by the $87 million cost of a change to the ANZ Group’s accounting software.
This meant operating expenses increased by 10% to $815 million.
Once the cost of the software change was excluded, expenses were down 1% due to improved cost management and productivity gains.
Meanwhile, the bank’s lending was up 8% and its customer deposits were up 12%.
ANZ New Zealand CEO David Hisco said the rise in net interest income primarily reflected continued lending growth.
This was at a time when interest margins have contracted due to strong lending competition and there is a customer preference for fixed rate mortgages.
ANZ has maintained their momentum in a highly competitive market, Hisco said.
“We are building a stronger, more efficient business while delivering on our vision to help Kiwis get ahead in their lives.”
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