ANZ National performs well in first nine months

Friday, 31 August 2007, 1:03 pm
Press Release: ANZ Bank

ANZ National performs well in first nine months

ANZ National Bank today announced a profit of $848 million for the nine months ended 30 June 2007, up 6% on the June 2006 result.

After adjusting the headline profit for non-core items 1 , the underlying profit before provisions increased by 6% ($70 million) over the corresponding June 2006 period. A very strong performance by the Retail, Rural and Corporate businesses, with profit before provisions growth of 13%, was offset by a lower Institutional result. The underlying net profit after tax was impacted by a lift in provisions following

unsustainably low provisioning charges in the corresponding June 2006 period. There have been minimal changes to the credit risk profile across the portfolio and the Bank has seen continued benign credit conditions in 2007.

June 2007 Nine Month Performance Summary • Net profit after tax of $848 million, a 6% increase over the June 2006 period ($803 million). • Underlying profit before provisions of $1,295 million, a 6% increase over the June 2006 period ($1,225 million). Refer Appendix for the “Underlying” calculations. • Underlying cost-to-income ratio decreased to 43.3% compared to 43.5% in the June 2006 period. • Net loans and advances were up NZ$8,675 million (11% for the period) on the June 2006 position. Total customer deposits were up NZ$3,155 million (8% for the period) on the June 2006 position.

Revenue growth of 5% was driven by a strong 8% growth in the Retail, Rural and Corporate businesses. This was partially offset by a lower revenue contribution from the Markets business in 2007, reflecting an exceptionally strong performance in the first half of 2006, and the unwind of structured finance transactions in 2007. Net interest income growth reflected strong lending and deposit growth, with net loans and advances increasing by $8.7 billion or 11% over June 2006, to $85.1 billion (mortgages grew by 1 Non-core items are: integration costs, the results of discontinued structured finance transactions, discontinued Truck Leasing Limited operations, the $76 million post-tax gain from the sale of FleetPartners, ineffective hedge fair value gains/losses, the $15 million post tax receipt from Lloyds TSB Group plc relating to an adjustment to the purchase price for The National Bank of New Zealand Limited Group (‘Lloyds receipt’), and the impact of the change in the company tax rate from 33% to 30% for the 2008/09 income year on deferred tax balances.

Ends

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