NZ profits up 40pc for ANZ

ANZ Bank says its NZ operations, which include the National Bank, highlighted the 'steady turnaround' in the economy. Photo / Herald on Sunday

ANZ's operations in this country posted underlying full year profit up 40 per cent to $882 million, off a low base the year before.

The charge for credit impairment in the year to September fell 48 per cent to $461m, with the second half charge of $131m down 60 per cent on the first half.

ANZ's operations in this country include the ANZ National Bank and the New Zealand branch of ANZ.

ANZ New Zealand chief executive David Hisco, who took over the job last month, said the bank's performance highlighted the steady turnaround in the economy and the underlying strength of ANZ's customer franchise.

The improving economic environment had seen the provision charge fall dramatically, but so far the recovery had not been consistent in all sectors.

Customers remained cautious about taking on debt. Lending and deposit growth were flat with both personal and business customers continuing to deleverage, Hisco said.

While economic growth was likely to remain soft over the medium term, the Government's focus on rebalancing the economy with a shift towards savings and exports was setting New Zealand on the right path.

"After getting a good feel for New Zealand over the past six weeks, I'm relatively upbeat about the outlook," he said.

Net interest income rose 4 per cent from the year before to $2.49 billion, while other external operating income dropped 13 per cent to $721m.

Operating expenses rose 5 per cent to $1.53b for the year, while statutory profit rose to $867m from $194m the year before.

The Australian-based parent company Australia and New Zealand Banking Group posted a 51.7 per cent jump in cash profit to A$5.13b ($6.68b) for the year, saying it expected corporate lending to increase in the first half of fiscal 2011.

- NZPA