ANZ cuts shareholder dividends amid poor performance
(4 May 2016 – Australia) Following its first half reporting, ANZ Bank said shareholders will receive lower dividends and a smaller cut of future profits.
The bank announced its first dividend cut since the global financial crisis after mounting bad debts and tighter regulation.
ANZ’s cash earnings dropped by nearly a quarter to A$2.8 billion, The results were hampered by higher charges for bad institutional loans, and A$717 million in one-off charges that recently appoint chief, Shayne Elliott said would put the bank on a stronger footing in a week economic environment.
ANZ's cash profit was down four percent to A$3.5 billion.
Elliott said local operations, which reported a six percent uplift in profits to A$1.75 billion had performed strongly, however its institutional unit was "doing it tough".
The bank’s institutional business profits dropped by 41 percent to $632 million in the period, while earnings also dropped 46 per cent in its Asia retail and Pacific business.
Return on equity fell by one percentage point to 12.2 percent, and its net interest margin narrowed by 1 basis point, to 2.01 percent.
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