ANZ posts 12 percent rise in full year profits
(27 October 2017 – Australia) ANZ's full-year profit has increased by 12 percent despite its main margins tightening.
The bank’s net profit for 2017 was reported at A$6.4 billion, up from A$5.7 billion in 2016 and behind the A$7.5 billion in 2015.
ANZ said cash earnings rose 18 percent to A$6.9 billion and was in line with analyst expectations.
ANZ chief executive Shayne Elliott said the result represented the mid-point of a multi-year transformation.
"This is a good result which demonstrates further progress in becoming a better balanced, better capitalised, more efficient bank," he said.
The bank has divested of a number of assets across Asia since Elliott’s appointment to the head of the bank in at the beginning of 2016. It sold its stake in the Shanghai Rural Commercial Bank and a number of Asian based wealth and retail businesses.
The latest results do not include ANZ recently announcement agreement with IOOF to sell its wealth management business or the sale of its 40 percent stake in Metrobank Card.
"We have made some difficult calls ... and the new shape of ANZ is now emerging," Elliott said.
Following the bank’s refocus of key retail an commercial banking businesses to Australia and New Zealand, its capital base is now 53 percent, compared to 44 percent in 2015.
ANZ’s tier-one capital ratio expanded to 10.6 percent, highest of the major banks.
Meanwhile, it reduced its cost base for the first time in 18 years as its full-time workforce was cut by a further 1,500 jobs.
The quality of the bank's balance sheet also improved with gross impaired assets down 25 percent to A$2.4 billion and new impaired assets down 11 percent.
"We expect the revenue growth environment for banking will continue to be constrained as a result of intense competition and the effect of regulation including a full year impact of the Australian bank tax," Elliott said.
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