ANZ's New Zealand profits triple

ANZ New Zealand chief executive Jenny Fagg

ANZ New Zealand's underlying profit nearly tripled in the six months to the end of March compared to the preceding half as the economy emerges from the downturn.

The Australia and New Zealand Banking Group released its 2010 interim results today, showing an underlying profit of $372 million compared to $134 million in the half year ended September 2009. It was down 25 per cent on the same half last year.

ANZ New Zealand chief executive Jenny Fagg said the result reflected a drop in provisions and a solid business performance.

"The New Zealand economy has stabilised in a number of areas although the recovery is somewhat uneven at this early stage. There are signs of a lift in business conditions although growth remains subdued.

"As a result there has been a significant reduction in provisions for credit impairment across the business - dropping to $330 million from $598 million in the preceding half. This has been the main driver of an increase in underlying profit to $372 million in the half, off a low base in the preceding half."

The increase in profit is also the result of tightening costs.

Margins rose up by six basis points, which the bank attributed to a re-pricing of its fixed lending book.

- NZPA