ANZ in bumper A$2.3 billion result
(Australia) - Australia's fourth largest bank, the ANZ Banking Group, has reported a better than expected profit of A$2.3 billion for the 2002 financial year.
The result was a 24 percent improvement on last year and had analysts raising their forecast for 2003, despite warnings from the bank that a slowing housing sector and a rise in credit card defaults could slow growth.
The profit included a A$170 million credit from the sale of businesses to the funds management joint venture with ING Group, as well as A$159 million from the settlement of a dispute with India's National Housing Bank, which stemmed from ANZ's ownership of the South-Asian bank Grindlays.
ANZ's credit card business was one of the stars, with earnings up 51 percent to A$149 million, although the bank has warned that the new fee structure imposed by the Reserve Bank would clip that by A$40 million next year.
ANZ increased its provision for doubtful loans by 62 percent to A$860 million, largely due to the collapse of global giant Enron and trouble at Marconi.
Big Four rival Westpac is due to report its earnings this week, with the market expecting the bank to also break the A$2 billion barrier, after reporting a A$1.9 billion result last year.
The profit included a A$170 million credit from the sale of businesses to the funds management joint venture with ING Group, as well as A$159 million from the settlement of a dispute with India's National Housing Bank, which stemmed from ANZ's ownership of the South-Asian bank Grindlays.
ANZ's credit card business was one of the stars, with earnings up 51 percent to A$149 million, although the bank has warned that the new fee structure imposed by the Reserve Bank would clip that by A$40 million next year.
ANZ increased its provision for doubtful loans by 62 percent to A$860 million, largely due to the collapse of global giant Enron and trouble at Marconi.
Big Four rival Westpac is due to report its earnings this week, with the market expecting the bank to also break the A$2 billion barrier, after reporting a A$1.9 billion result last year.
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