ANZ profit down 23 percent
(24 October 2008 – Australia) Despite strong underlying revenue growth, ANZ announced a drop in full year cash profits of 23 percent, to A$3.03 billion.
ANZ announced a profit after tax of A$3.3 billion for the 12 months to 30 September 2008, down 21 percent.
The cash profit, the normalised profit results looked at by analysts, was down 23 percent to A$3.03 billion.
Underlying revenue grew 12 percent, with lending growth for the year of 16 percent and growth in deposits and other borrowings of 21 percent.
In their announcement, ANZ put the underlying growth down to an increased reliance on AA-rated banks during the global financial turmoil, the relative strength of the regional economy and the quality of ANZ’s franchise.
The results were impacted by a $1.4 billion increase in credit impairment charges on lending to $1.9 billion along with a $0.7 billion charge for credit risk on derivatives.
Personal division profit grew 12 percent to A$1.49 billion, driven by strong income from customer deposits and lending.
In the Institutional division, increased provisions on a small number of corporate names along with credit risk on derivatives drove a 65 percent decrease in cash profit to A$625 million.
The Asia Pacific division produced a substantial 52 percent increase in cash profit to A$413 million, reflecting the full year impact of investments in partnership businesses such as AMMB Holdings Berhad and Shanghai Rural Commercial Bank.
Mike Smith, ANZ’s chief executive officer said that while the personal division was strong, in the Institutional division, the business environment and operational issues have been more difficult.
He said that ANZ has adjusted their business model and tightened risk management to ensure a strong core customer franchise.
The full year dividend has been maintained at 136 cents per share fully franked.
The cash profit, the normalised profit results looked at by analysts, was down 23 percent to A$3.03 billion.
Underlying revenue grew 12 percent, with lending growth for the year of 16 percent and growth in deposits and other borrowings of 21 percent.
In their announcement, ANZ put the underlying growth down to an increased reliance on AA-rated banks during the global financial turmoil, the relative strength of the regional economy and the quality of ANZ’s franchise.
The results were impacted by a $1.4 billion increase in credit impairment charges on lending to $1.9 billion along with a $0.7 billion charge for credit risk on derivatives.
Personal division profit grew 12 percent to A$1.49 billion, driven by strong income from customer deposits and lending.
In the Institutional division, increased provisions on a small number of corporate names along with credit risk on derivatives drove a 65 percent decrease in cash profit to A$625 million.
The Asia Pacific division produced a substantial 52 percent increase in cash profit to A$413 million, reflecting the full year impact of investments in partnership businesses such as AMMB Holdings Berhad and Shanghai Rural Commercial Bank.
Mike Smith, ANZ’s chief executive officer said that while the personal division was strong, in the Institutional division, the business environment and operational issues have been more difficult.
He said that ANZ has adjusted their business model and tightened risk management to ensure a strong core customer franchise.
The full year dividend has been maintained at 136 cents per share fully franked.
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