NZ's biggest bank reports profit

Australia and New Zealand Banking Group Ltd, New Zealand's biggest bank, today reported an improved profit with lower credit impairments.

The parent ANZ reported its result last week but the full general disclosure statement for the New Zealand branch was released today.

ANZ owns both the ANZ and National Bank of New Zealand businesses in New Zealand.

It made an underlying profit before statutory adjustments of $630 million in the nine months to June 30, down 2 per cent on last year.

The profit after statutory adjustments of $620m is up 30 per cent.

Provisions for credit impairments of $408m are down 24 percent from last year.

The bank is emphasising its commitment to New Zealand where it is the biggest home, rural and business lender.

The bank says it is well capitalised and has strong liquidity.

"ANZ New Zealand is committed to helping New Zealand businesses grow, by assisting companies to access our expertise through free seminars and workshops, and to tap into a wide range of funding," said ANZ New Zealand chief executive Jenny Fagg.

Margins in the retail, commercial and rural businesses declined slightly compared to last year, reflecting higher wholesale funding costs and competition for deposits, partly offset by the phased re-pricing of the fixed lending book.

This is similar to the comments in the parent's result.

- NZPA