ANZ New Zealand, the country's biggest lender, boosted its annual cash profit as staff cuts and fewer bad debts trimmed its costs, offsetting smaller margins lending in the face of increased competition.
Cash profit rose to $1.44 billion in the 12 months ended September 30 from $1.29 billion a year earlier, the bank said in a statement. Statutory profit rose 8 per cent to $1.37 billion.
Net interest income fell 3 per cent to $2.64 billion, a smaller decline than the 13 per cent drop in operating expenses to $1.49 billion. The cost cuts came in a period when it shaved 10 per cent from its workforce to 7,400 full-time equivalent positions. The bank cut its provision for credit impairments to $65 million in the year from $194 million in 2013.
"Our business performance has been built on simplifying our products, improving processes and systems and delivering a better banking experience for customers," chief executive David Hisco said. "We have concentrated investment on our brand, sales training, branch coverage and digital capability."
The New Zealand unit's performance was in line with the wider group, with Australia & New Zealand Banking reporting an 11 per cent increase in cash profit to A$6.5 billion on a 3 per cent increase in operating income to A$18.38 billion. The group lifted net profit 11 per cent to A$6.27 billion, and declared a final dividend of 91 Australian cents per share, taking the total payment to A$1.64.
