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

 

ANZ NZ reports 2019 full-year result

31 October 2019


ANZ Bank New Zealand[1] today reported a statutory[2] net profit after tax (NPAT) of NZ$1,825 million for the 12 months to 30 September, 2019 – an 8% decrease on the 2018 financial year.

Cash NPAT of NZ$1,933 million, up 2% on the previous year, benefited from the sales of life insurance company OnePath Life (NZ) Limited and ANZ New Zealand’s 25% share in Paymark Limited.

ANZ New Zealand Acting Chief Executive Officer Antonia Watson said while the company’s full-year result reflected a solid underlying performance, it had been a challenging 12 months for ANZ New Zealand reputationally.

“It has been a transformative year for our industry. While reviews by the FMA and RBNZ concluded the widespread misconduct issues in Australia were not found in New Zealand they helped us take stock of where we are today, what we’re doing well and what we could do better for our customers, and we’re making changes,” Ms Watson said.
“Beyond those reviews we have faced our own challenges. Despite our tough year our people have continued to put our customers first every day.
“Our customers continue to choose ANZ because our staff are committed to doing what’s best for them. We offer products and services that help Kiwis achieve their goals, we continue to sharpen the value we offer by making banking easier and more accessible, monitoring our fees and interest rates and giving back to our communities.”
Despite the difficult year ANZ New Zealand continued to perform well, Ms Watson said.

“While underlying revenue growth has been subdued, both customer deposits were up 5%, and gross lending up 4%. Our focus on responsible lending means credit quality remains strong and provision charges low.

“Strong competition in the home lending market combined with Official Cash Rate cuts saw interest rates drop to the lowest levels on record, providing a good opportunity for first home buyers to enter the market and for home owners to pay off as much debt as possible.”

Remediation and increased regulatory requirements contributed to a 5% increase in operating expenses on a cash NPAT basis.

Ms Watson said the New Zealand economy, while growing at a slower pace, is fundamentally in good shape which is promising for businesses moving into 2020.

“Demand for commodity exports is healthy, construction activity is firm, plus lower interest rates and an easing NZD are supporting activity. Growth is expected to start lifting as easier monetary conditions make an impact.”

Key Points
All comparisons are year ended 30 September 2019 compared with year ended 30 September 2018 and on a cash basis unless otherwise noted
• Statutory profit down 8% at NZ$1,825 million.
• Cash profit up 2% at NZ$1,933 million including impact of one-off items.
• Revenue up 3% including impact of one-off items.
• Expenses increased 5% due to higher regulatory compliance spend.
• Customer deposits up 5% and gross lending up 4%.
• KiwiSaver funds under management grew 14% to $14.8 billion.
• Ordinary dividend of NZ$375 million paid in March 2019.

The company continued to simplify its product offering and focus on suitability for customers. “Our focus on digitisation and efficiencies means we have cut fees on a range of products, services and interest rates this year, passing on more than $20 million in savings to customers.”
One million customers now use ANZ goMoney, the company’s mobile banking app.

ANZ New Zealand is again exploring a range of strategic options, including divestment, for wholly-owned subsidiary UDC Finance.
ANZ New Zealand branch staff have helped prevent more than $2 million of fraudulent over-the-counter transactions, and presented fraud prevention education lessons to 5,000 Kiwis.

Ms Watson said this financial year was the first without frontline incentives at ANZ New Zealand and staff had embraced the cultural change away from sales targets while still focusing on good customer outcomes.

ANZ New Zealand awaits the outcome of the Reserve Bank of New Zealand’s capital review, due in early December.

The company, which won 2019 Canstar Bank of the Year - Agribusiness, continues to work with Agri customers to help them move towards stronger, more resilient and sustainable businesses.

Other highlights for the financial year include:
• ANZ New Zealand’s funds under management grew 11% to $34.1 billion, and remains the largest KiwiSaver provider with 14% growth to $14.8 billion.
• Leading a $500 million Housing New Zealand Sustainability Bond to help fund investment in sustainable social housing supporting the company’s wider commitment to helping Kiwis live in warmer, drier homes.
• Offering discounted home-loan rates for homes built or upgraded to meet 6-Star sustainability standards.
• Extending ANZ New Zealand’s $100 million pledge in interest-free insulation lending to include heat pumps. Now almost 2,000 customers have taken out a relevant loan.
• Donating $15 million to local sponsorships and charities, including raising almost $1 million for Daffodil Day.
• ANZ New Zealand staff helped plant more than 50,000 trees along the New Zealand coastline, and picked up 10,000 litres of rubbish at local beaches, plus volunteered 23,000 hours of service in the community.

[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 continuing basis, 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.
"This e-mail and any attachments to it (the "Communication") is, unless otherwise stated, confidential, may contain copyright material and is for the use only of the intended recipient. If you receive the Communication in error, please notify the sender immediately by return e-mail, delete the Communication and the return e-mail, and do not read, copy, retransmit or otherwise deal with it. Any views expressed in the Communication are those of the individual sender only, unless expressly stated to be those of Australia and New Zealand Banking Group Limited ABN 11 005 357 522, or any of its related entities including ANZ Bank New Zealand Limited (together "ANZ"). ANZ does not accept liability in connection with the integrity of or errors in the Communication, computer virus, data corruption, interference or delay arising from or in respect of the Communication."


ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

Real Estate: Auckland’s Rental Market Ends Year Near $600 Per Week Mark

The average weekly rent in Auckland reached a new high of $595 at the end of 2020, just shy of a long-anticipated $600 per week. More>>

University of Auckland: Pest-Free Goal Won’t Be Achieved Without New And Better Tools

New Zealand’s goal to become predator free by 2050 will remain an unrealised dream unless new technologies and advances in social engagement continue to be developed, researchers who first promoted it say. A team from the University of Auckland has ... More>>

OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>