ANZ Bank boosts NZ market share in 3Q as increased competition erodes margins
Aug. 17 (BusinessDesk) - Australia & New Zealand Banking Group grabbed more local market share in the third-quarter, though increased competition for loans and deposits took some of the steam out of its margins.
The New Zealand unit, which is the country's biggest lender with the ANZ and National Bank brands, increased its income in the quarter, the bank said in a statement, without giving details.
The Melbourne-based lender grew New Zealand net loans 1.4 percent in the nine months ended June 30, and raised its deposits 6.9 percent, which group chief executive Mike Smith said helped the unit grab more market share, "particularly in retail".
"The business' focus on business simplification, including the planned move to a single IT platform, has positively impacted staff engagement, customer satisfaction and cost to income levels," the bank said. "The half-year margins appear to have peaked, impacted by competition for deposits and in business lending."
The Australian parent boosted underlying profit 5.5 percent to A$4.5 billion in the first nine months of the year, with increased income in Australia, New Zealand, international and institutional banking divisions. The wealth division, which includes the OnePath brand, reported a slight fall in income.
"We have managed ongoing funding and competitive pressures well, with group margins stable relative to the end of the first half," Smith said.
The group increased customer deposits 8.7 percent and lending assets 7.7 percent in the year-to-date.
The dual-listed shares were unchanged at $31 on the NZX, and have gained 13 percent this year.