Profits down at ANZ-National Bank

ANZ National Bank, New Zealand's largest bank, reported a lower quarterly profit due to higher bad debt provisions but said its underlying business is resilient.

The after-tax profit of $210 million in the three months to December 31 is down on the $310m in the same period last year.

The underlying core profit after-tax of $311m is up 4 per cent on the same period last year.

The result included an already signalled post balance date charge of $161m, or $113m after tax, for the cost of an offer to investors in 49 per cent owned fund manager ING New Zealand, which has frozen funds.

There is also a provision of $94m, up from $32m last year, for bad debts.

"ANZ National remains sound and well-capitalised with a strong balance sheet, and we are getting on with the sensible steps to navigate through a difficult environment," said chief executive Graham Hodges.

The bank has said that its markets division has had record income at a time of unprecedented volatility in markets.

ANZ National is a unit of Australia's ANZ.

On February 26 ANZ chief executive Mike Smith said the bank faced headwinds in New Zealand.

"The economy there is well and truly in recession and like many New Zealand businesses we are doing it tough," Mr Smith said.

ANZ National reported a $1.163 billion profit last fiscal year. It will report its interim result on April 29.

- NZPA