Returns climb higher at ANZ

The ANZ's New Zealand operation yesterday posted a half year profit of $A126 million ($155 million), before abnormal items but after tax.

The result was up 8.6 per cent on the same period last year.

The bank's Australian profit was up 25 per cent on last year's half yearly result (ending in March) to $A704 million.

Total group profit after tax was $A895 million, up 10 per cent on the first half last year.

In New Zealand, ANZ's net interest income rose to $A246 million from $A240 million.

Fee income increased by $A10 million to $A143 million for the half year.

Total assets for the New Zealand operation rose from $A21.5 billion a year ago to $A22.89 billion.

The ANZ group's total assets rose to $A180.97 billion from $A166.96 billion for the period.

ANZ New Zealand's operating expenses were up $A5 million to $A232 million on the same period last year.

The number of people employed in New Zealand dropped by 222 to 3831.

Earnings per share for the group were up 13 per cent at 55.8Ac.

Return on shareholders' equity also rose, up 19.6 per cent.

ANZ chief executive John McFarlane said the company expected to post a positive overall performance for the full year, despite uncertainty in the economic environment.

"However, the weaker economy, combined with the strength of our earnings in the first half, may make it difficult to replicate the strong underlying first half earnings growth in the second half," said Mr McFarlane.

"Having said this, we are confident the considerably stronger foundation we have now established puts us in a good position to continue to perform well and achieve our targets over the medium term."

The fully franked interim dividend of 33Ac a share was up 4c a share on the March 2000 dividend.

- NZPA