17 February 2017
ANZ New Zealand Disclosure Statement - three months to December 2016
Australia and New Zealand Banking Group Limited (ANZ) NZ Branch Disclosure Statement for the three months ended 31 December 2016 was released today, showing unaudited statutory profit of NZ$403 million for ANZ New Zealand, an increase from NZ$347 million in the three months ended 31 December 2015.
Unaudited cash profit increased 18% at NZ$459 million compared with NZ$390 million in the prior comparable period (‘pcp’).
Net interest income increased 3% against pcp, primarily reflecting continued lending growth.
Net interest margin has contracted due to increased funding costs and demand for fixed rate home lending.
ANZ New Zealand Chief Executive Officer David Hisco said: “More New Zealanders are switching from floating to fixed home loans, taking advantage of lower interest rates ahead of possible changes in market conditions.”
The increase in other operating income reflected higher Global Markets trading income and valuation gains on derivatives.
All comparisons are three months to 31 December 2016 compared with three months to 31 December 2015 unless otherwise noted
• Unaudited statutory profit increased 16% at NZ$403 million.
• Unaudited cash profit increased 18% at NZ$459 million.
• Expenses decreased 3%, or 4% adjusting for charges associated with a change to the application of ANZ’s software capitalisation policy announced in March 2016, reflecting ongoing disciplined cost management and productivity gains.
• Provision charge of NZ$37 million reflects a normalising of provision levels in the portfolios, combined with lower levels of write backs and recoveries than have been experienced in previous periods.
• Customer deposits increased 7% and gross lending increased 5%.