ANZ-National posts 12pc drop

Price competition eating into interest margins has taken its toll at ANZ-National Bank, resulting in a 12 per cent fall in quarterly profit.

The bank said profit after tax was $169 million for the three months to June 30, compared with $192 million for the quarter a year earlier.

Excluding integration costs and goodwill amortisation, operating profit was $235 million, down 0.8 per cent.

Competition, with retail banks cutting home lending prices amid a property boom, cut the net interest margin by 17 basis points to 2.56 per cent compared with the June 2004 quarter.

Net loans and advances were up 11 per cent, or $1.7 billion, on the March quarter and 11.3 per cent for the year ended June 30.

Quarterly expenses rose 10 per cent to $373 million.

- REUTERS