ANZ on target for 2005 despite flat spots
(23 August 2005 – Australia) In an update to shareholders two months out from the end of the bank’s financial year, ANZ chief executive John McFarlane said the business was on track to meet earnings expectations.
McFarlane said the bank had performed strongly in Australia amid tougher market conditions but that the New Zealand business was flat due a focus on integrating ANZ with the National Bank of New Zealand.
He said the bank’s Trade and Transaction Services division had performed strongly "reflecting significant intra-regional trade growth in Asia".
The Corporate and Institutional businesses had both been "solid", with the segments offset by moderating lending growth.
Retail was the "stand out" performer with home loans growing 15 percent for the 12 months to July, while credit cards and deposits had also been strong.
"We have increased returns, reduced risk, advanced our franchise strategically and created a more dynamic structure," McFarlane said.
"We are now moving to the next stage of ANZ’s transformation by using our earnings strength to invest in future revenue growth and to seek efficiency gains in our existing cost base to help fund investment," he said.
McFarlane said the bank had established a new set of medium term priorities to guide the bank over the coming year.
These included growing revenue by seven to nine percent per annum; reorientating priorities and resources; and being more agile and quicker to market.
He said the bank’s Trade and Transaction Services division had performed strongly "reflecting significant intra-regional trade growth in Asia".
The Corporate and Institutional businesses had both been "solid", with the segments offset by moderating lending growth.
Retail was the "stand out" performer with home loans growing 15 percent for the 12 months to July, while credit cards and deposits had also been strong.
"We have increased returns, reduced risk, advanced our franchise strategically and created a more dynamic structure," McFarlane said.
"We are now moving to the next stage of ANZ’s transformation by using our earnings strength to invest in future revenue growth and to seek efficiency gains in our existing cost base to help fund investment," he said.
McFarlane said the bank had established a new set of medium term priorities to guide the bank over the coming year.
These included growing revenue by seven to nine percent per annum; reorientating priorities and resources; and being more agile and quicker to market.
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