2 May 2017
ANZ New Zealand produces solid half year result
Australia and New Zealand Banking Group Limited (ANZ) 2017 half year results were released today, with ANZ New Zealand delivering unaudited cash profit of NZ$928 million, up 24%, and unaudited statutory profit of NZ$869 million, up 14% on the corresponding half in the 2016 financial year.
ANZ New Zealand Chief Executive Officer David Hisco said the solid performance was as a result of the business being focussed on sustainable growth, increasing productivity across the organisation and delivering digital innovation for customers.
“All our business units performed well in this half due to our continued simplification of the business.
“We’ve boosted our focus on digital innovation which has positioned us well for a period of rapid change in banking. Adopting to this new digital environment has resulted in record high brand consideration and customer satisfaction.
“We’re the only bank in New Zealand to offer ApplePay, which has been taken up by thousands of Kiwis, and this complements our popular goMoney app.”
Net interest income increased 3% compared with the March 2016 half, primarily reflecting continued lending growth, while net interest margins have contracted due to increased funding costs and demand for fixed rate home lending.
Mr Hisco said expenses decreased by 12% and the increase in other operating income reflected higher Markets trading income and valuation gains on derivatives.
Lower levels of credit losses reflect improvements in credit quality in the commercial and agri portfolios, partially offset by increased and new provisions.
“We’ve retained our number one market share in mortgages, which has been balanced with our commitment to lending responsibly.
“This lending is having a positive role in the lives of our customers, helping people into homes, supporting our farming communities and growing businesses, both big and small.
“Our encouragement to Kiwis to save has pleasingly also gained traction, with growth in customer deposits.
All comparisons are six months ended 31 March 2017 compared with six months ended 31 March 2016 unless otherwise noted
· Unaudited cash profit increased 24% at
· Unaudited statutory profit increased 14% at NZ$869 million.
· Expenses decreased 12%, or 3% 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.
· Lower levels of credit losses reflect improvements in credit quality in the commercial and agri portfolios, partially offset by increased and new provisions.
· Customer deposits increased 7% and gross lending increased 5%.
· Number one in home loan market share.
“Our KiwiSaver business now has over 725,000 investors
and in this half our funds under management grew $700
million to almost $10 billion, making ANZ New Zealand’s
 ANZ New Zealand represents all of ANZ’s operations in New Zealand, including ANZ Bank New Zealand Limited, its parent company ANZ Holdings (New Zealand) Limited and the New Zealand branch of ANZ.
 Statutory profit has been adjusted to exclude non-core items to arrive at cash profit, the result for the ongoing business activities of ANZ New Zealand. All comparisons in Key Points are on a cash profit basis and refer to the prior comparable period unless otherwise stated. Cash profit does not have a standardised meaning prescribed by NZ GAAP and therefore may not be comparable to similar information presented by other entities. Refer to Summary of Key Financial Information for details of reconciling items between cash profit and statutory profit.
 The ANZ 2016 half year results outlined the impact of a number of items referred to as “Specified Items” which included changes to the application of the Group’s software capitalisation policy effective from 1 October 2015.