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ANZ New Zealand 2018 Full-Year Result

31 October 2018

Australia and New Zealand Banking Group Limited (ANZ) results for the Financial Year to 30 September 2018 were released today. ANZ New Zealand[1] delivered a statutory profit of NZ$1,986 million, up 12% on the prior financial year. Cash profit[2]was NZ$1,904 million, up 3%.

ANZ New Zealand Chief Executive Officer David Hisco said the strong result reflects the performance of the economy, credit quality improvements and ANZ’s continued focus on digital innovation and customer service.

“The continued strength of the economy – strong exports and tourism sector aided by a lower dollar, continued demand for houses and growth in household incomes – has been good for our business,” Mr Hisco said.

“The Government’s investment in major infrastructure across the country and trade achievements are providing jobs and fuelling consumer spending and saving.

“We have also had a significant reduction in provision charges – funds set aside for bad debts – due to credit quality improvements across our Retail, Commercial and Agri businesses.”

ANZ New Zealand’s revenue increased 3% to NZ$4.18 billion comprising net interest income of NZ$3.18 billion, up 3%, and other operating income of NZ$1.0 billion, up 1%.

Key Points[3]
• Statutory profit up 12% at NZ$1,986 million.
• Cash profit up 3% at NZ$1,904 million.
• Revenue up 3% at NZ$4.18 billion.
• Expenses increased 3%, reflecting investment in digital initiatives.
• Lower levels of credit losses reflect improvements in credit quality in the Retail, and Commercial and Agri portfolios.
• Customer deposits up 7.5% and gross lending up 3%.

In the past five years ANZ New Zealand has continued to invest in digital capabilities to deliver a better, more secure bank and make it easier for customers to use our services anywhere and at any time.

“Getting the right balance between technologies that are convenient and still presenting a human face is the challenge for all retailers and banking is no different,” Mr Hisco said.

“ANZ goMoney is now the most popular way to bank and customers use it on average twice a day, compared to twice a week for internet banking and twice a year for visiting a branch.

“While digital banking is increasingly popular, customers still want to talk to our staff about more complex transactions, such as getting a home loan or KiwiSaver.”

In a first for banking in New Zealand, ANZ New Zealand this year introduced a new digital assistant, “Jamie”, who had nearly 12,000 conversations with customers, helping them with their most commonly asked banking questions.

Mr Hisco said ANZ has continued to transform its culture to meet the expectations of customers.

“In FY18 we removed frontline retail sales incentives so customers could be reassured our staff were delivering the best products and services for their needs.

“We continue to remove and reduce fees. In FY18 we reduced or removed a further 41 fees including fees for using non-ANZ ATMs, the first bank to do so. We were also the only major bank to remove our overseas ATM fee, which our customers have appreciated.

“ANZ also introduced interest free loans so that New Zealanders can insulate their homes.

“We are committed to doing what is best for our customers and the community, being transparent and putting things right quickly. This will continue to be a strong focus for us in the future.”

Mr Hisco said ANZ remains New Zealand’s leading KiwiSaver provider, with 24.2% market share, 12.9 billion funds under management, and 745,000 members.

ANZ New Zealand remains the number one in brand consideration[4] for local banks and continued to grow its customer base, with one in two New Zealanders now having some kind of financial relationship with the bank.

FY18 saw another significant contribution from ANZ to the New Zealand economy.

We paid around:
• NZ$760 million in corporate taxes (more than 5% of New Zealand’s total corporate tax take);
• NZ$810 million in staff wages and salaries;
• NZ$540 million to local contractors and suppliers;
• NZ$15 million in sponsorships and charitable donations; and
• NZ$67 million in dividends to about 16,800 New Zealand shareholders and managed funds.

A table of key financial information is attached

[1]ANZ New Zealand represents all of ANZ’s operations in New Zealand (NZ Geography), including ANZ Bank New Zealand Limited, its parent company ANZ Holdings (New Zealand) Limited and the New Zealand branch of ANZ.
[2] 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. Refer to Summary of Key Financial Information for details of reconciling items between cash profit and statutory profit.
[3] All comparisons are year ended 30 September 2018 compared with year ended 30 September 2017 unless otherwise noted
[4] ANZ measures customer satisfaction using independent research done on behalf of New Zealand banks and a Net Promoter Score.


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