Diversity adds up for ANZ in latest results
(19 August 2015 – Australia) ANZ reported an unaudited cash profit of A$5.4 billion for the nine months to 30 June 2015, up 4 percent, with statutory net profit up 11 percent to A$5.58 billion.
ANZ chief executive Mike Smith said the bank’s customer franchises in Australia, New Zealand and Asia Pacific were continuing to put in good performances.
“The third quarter operating environment has remained similar to that of the first half.
Economies in our key markets have slowed a little compared to previous years and global conditions remain challenging.
In these circumstances we are continuing to sharpen our focus on the management of capital and on the control of expenses.
“Our super regional strategy continues to provide us with differentiated sources of revenue and future growth options and it is underpinning our performance in every part of the business,” Smith said.
“Our Australian Retail and Commercial businesses are continuing to outperform peers particularly in mortgages and are delivering consistently strong performance.
“We have shifted gears in our New Zealand business over the past few years and are seeing further benefits in terms of both market share growth and productivity.
“Performance in our Global Wealth Division remains positive,” he said.
“International and Institutional Banking (IIB) is performing well and is managing its exposure to the complex macro conditions.
“Factors such as the global liquidity surplus and low commodity prices are providing headwinds to business performance while others, such as market volatility and currency movements, are providing tailwinds.
“We are continuing to simplify the business and increase the focus on improving returns.
“The recent capital raising has allowed ANZ to deal with known regulatory change, such as the higher capital adequacy requirements for Australian Mortgages and positions ANZ’s capital ratios within the top quartile of international peers,” Smith said.
The Australia Division’s strong performance from the first half has continued with ongoing momentum in lending and deposit flows, margins well managed and customer numbers increasing by circa 5 percent in both the Retail and Commercial businesses.
The Retail business has delivered strong growth in both home lending and credit cards and the Commercial business is also seeing good lending growth, especially in Small Business Banking, with improved trends in the Corporate and Business Banking segments.
The New Zealand Division is delivering strong balance sheet growth with above market performance in Mortgages, Business Lending and Deposits.
Revenue growth was underpinned by continued high levels of customer acquisition and brand consideration and an improved digital offering.
Positive underlying performance continued across the key businesses in the Global Wealth Division with strong in-force premiums growth, stable claims and lapse experience plus growth in Funds Under Management.
Global Wealth innovations – in physical, digital and personal – continue to deliver simple accessible wealth solutions improving how customers think about their financial wellbeing.
International and Institutional Banking continues to perform well in difficult operating conditions arising from macro-economic factors such as the ongoing global liquidity surplus and weak commodity prices.
Income in the Global Markets Business was up 6 percent to A$1.8 billion.
Customer sales grew 9 percent led by strong results in Asia and customer facing revenue remains at over 75 percent of the total Global Markets income.
The Trade and Supply Chain business margin stabilised in the third quarter having been impacted by falling commodity prices.
Cash Management revenue increased, with good volume growth across the region, particularly in Asia.
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