Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

ANZ National profitable in tough conditions

Media Release
29 October 2009

ANZ National remains profitable in tough conditions, positions for growth

Wellington: Australia and New Zealand Banking Group Limited (ANZ), of which ANZ National Bank is a wholly owned subsidiary, today announced its Annual Results for the year ended 30 September 2009.

ANZ National Chief Executive Officer (CEO) Jenny Fagg said New Zealand’s contribution reflected the New Zealand economic downturn, which was more protracted and pronounced than in Australia, and also the impact of one-off adjustments.

In the New Zealand region, underlying profit decreased 32 per cent to $628 million for the year, largely driven by an almost three-fold increase in credit provisions as households and business felt the impacts of the recession. Underlying profit before provisions increased 8 per cent.

“The economic conditions helped our Institutional business to deliver a very strong result by taking advantage of market volatility in the first half. Institutional achieved a 36 per cent increase in revenue in the full year compared to 2008,” Jenny Fagg said.

“However, these same conditions impacted the financial performance of the retail, wealth and commercial businesses.

“Net interest margins (NIM) in these businesses fell 26 basis points to 2.14 per cent over the year. This was due to intense deposit competition and higher wholesale funding costs, as well as the timing lag in re-pricing fixed rate lending and the increased costs from early repayments of fixed rate mortgages. Revenue in these businesses declined by 4 per cent,” Ms Fagg said.

Net profit after tax for the September 2009 year decreased 80 per cent to $194m compared to the previous year, impacted by one-off adjustments of $434m, principally provisioning on the Conduit tax matter and the ING investor Offer.

“Despite the difficult operating environment, ANZ National continues to be profitable, costs have been well-managed and we have very strong liquidity, funding and capital. We hold a dominant market share, leading all the key customer segments,” Ms Fagg said.

“We are well positioned for future growth, focussing on the core of our business – our people, our processes and the products and services we deliver to our customers.

“Looking ahead, a focus of our growth strategy will be to leverage the existing strengths of our two main brands, ANZ and The National Bank. Our acquisition of ING NZ’s funds management and life insurance businesses, made possible by ANZ’s global strength in

the wake of the international credit crisis, will enhance our wealth management position in New Zealand.1

“I am pleased that ANZ National has been able to continue to support the New Zealand economy in this tough operating environment. Our strength means that we have continued to lend to the business and rural sectors, and we have been working hard to support retail customers affected by the downturn.

“Our Financial Wellbeing programme established a Customer Management Team which interacts daily with frontline staff to find sustainable solutions for customers in financial difficulty. Since August 2008, the team has provided advice and restructuring solutions for more than 4,700 customers representing total lending of over NZ$1.2 billion,” Ms Fagg concluded.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO: