(27 April 2007 – Australia) ANZ has delivered an interim profit of A$2.1 billion on the back of a strong performance in the bank’s Personal division which grew 21.6 percent with revenue growth of 14.4 percent.Institutional was less impressive with 10.6 percent net profit growth and revenue growth of just five percent in the face of contracting credit margins.
ANZ said it had attempted to reduce the amount of low margin asset growth and reliance on lending, which lead to a reduction in revenue. The Markets and Corporate & Structured Financing businesses delivered strong revenue growth.
In the Personal division Esanda grew 36 percent, Consumer Finance by 39 percent and Investment and Insurance Products grew by 47 percent. ANZ’s Mortgages business was impacted by rising rates and strong price competition.
ANZ chief executive officer John McFarlane said it was a good result in a highly competitive market and built on seven years of investment.
He said the bank added 2,120 new staff and opened 26 branches in Australia and New Zealand over the past year. He said credit quality remained strong.
“For the 2007 year, ANZ’s revenue and expenses are expected to be in line with previous guidance of seven to 10 percent revenue growth and five to seven percent cost growth,” McFarlane said.
“All in all, this is a good result. It sets us up well for the year as a whole and positions us well for the years ahead,” he said.