ANZ profits up 17pc to $1.26b

APNZ

24 Oct, 2012 09:50 PM2 mins to read

ANZ, which is about to ditch the National Bank brand, increased bank loans and advances more than its rivals, according to the latest KPMG financial survey. Photo / Greg Bowker

ANZ New Zealand said its statutory net profit rose by 17 per cent to $1.265 billion in the year to September.

The bank said its underlying profit rose by 10 per cent to $1.368b in the year.

ANZ said its profit before credit impairment was up 5 per cent, reflecting a gradual improvement in the New Zealand economy, productivity improvements and reduced costs.

The bank's New Zealand chief executive David Hisco said the result highlighted the breadth of the bank's activities.

About half of all New Zealanders are involved with ANZ through the bank itself or through its brands, which include UDC Finance, OnePath, Direct Broking and EFTPOS.

Hisco said the ANZ brand had strengthened, as reflected by growth in market share in mortgages, particularly in the commercially important Auckland market.

He said the rising average cost of its funding portfolio has had some impact on our net interest margin and this was expected to continue unless offshore conditions change significantly.

The bank's statutory profit included a charge of $135 million (after tax) related to the New Zealand simplification programme, including implementation of a single core banking system, a single bank brand and an "optimised" branch network.

"Credit quality has strengthened across the book, reflecting the ongoing recovery of the New Zealand economy from the impacts of the global financial crisis," Hisco said.

"Delinquency rates have declined and there has been an overall reduction in the individual provision charge," he said.

"However, due to lower releases of collective provisions, the overall impairment charge has increased slightly," he said.

The bank announced last month that it would progressively bring the ANZ and National Bank brands together as ANZ.