ANZ’s right agenda paying dividends
(28 April 2006 – Australia) ANZ has posted a healthy A$1.8 billion profit for the half year to 31 March 2006, up 16 percent on the previous year.
The bank pleased investors by hitting its revenue target of seven to nine percent, achieving eight percent for the period.
ANZ chief executive John McFarlane said the bank drove down its cost to income ratio by one percent despite investing heavily in 4000 new staff, new branches and its Asia operation.
McFarlane said the bank had pursued the right agenda but that it had been "tougher than anticipated".
"Only now is the difference starting to be tangible and beginning to change the face of banking in Australia and New Zealand," he said.
ANZ’s Personal division grew its earnings by 16 percent; Corporate grew 16 percent; and Asia Pacific increased its profit by 18 percent.
Institutional grew eight percent boosted by the strong performances of Trade and Transaction Services, Markets, Corporate and Structured Finance and the New Zealand business.
The big disappointment was Esanda, which saw its earnings drop by 20 percent for the half year. ANZ said this as due to lower margins and higher petrol prices.
However, it said Esanda was "receiving management attention".
Esanda has been wrapped into ANZ’s Personal division under the bank’s new structure as it was perceived to be stuck out on its own under the previous model offering little scope for cross sell with the rest of the bank’s business.
McFarlane again forecast revenue growth in the seven to nine percent range in 2006.
ANZ chief executive John McFarlane said the bank drove down its cost to income ratio by one percent despite investing heavily in 4000 new staff, new branches and its Asia operation.
McFarlane said the bank had pursued the right agenda but that it had been "tougher than anticipated".
"Only now is the difference starting to be tangible and beginning to change the face of banking in Australia and New Zealand," he said.
ANZ’s Personal division grew its earnings by 16 percent; Corporate grew 16 percent; and Asia Pacific increased its profit by 18 percent.
Institutional grew eight percent boosted by the strong performances of Trade and Transaction Services, Markets, Corporate and Structured Finance and the New Zealand business.
The big disappointment was Esanda, which saw its earnings drop by 20 percent for the half year. ANZ said this as due to lower margins and higher petrol prices.
However, it said Esanda was "receiving management attention".
Esanda has been wrapped into ANZ’s Personal division under the bank’s new structure as it was perceived to be stuck out on its own under the previous model offering little scope for cross sell with the rest of the bank’s business.
McFarlane again forecast revenue growth in the seven to nine percent range in 2006.
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