Investment the key to ANZ result
(27 October 2006 – Australia) ANZ Bank has delivered a strong annual profit of A$3.68 billion, up 16 percent on the previous year.
ANZ chief executive John McFarlane said the profit was built on strong revenue growth, a vindication of significant investment over recent years.
"When we said that we would invest to create a real difference that others would find hard to replicate, and to accelerate revenue growth to seven to nine percent it was seen as stretching. It’s now evident this is the right approach," he said.
The star performer was the bank’s Personal division which saw revenues grow 13 percent and earnings increase 22 percent. Consumer finance grew 25 percent, while mortgages increased by 21 percent. ANZ opened 25 new branches over the period.
Institutional earning grew 11 percent while revenue grew at eight percent in 2006.
Trade and Transaction services increased 16 percent on the previous year.
McFarlane said the bank was confident of extending its future revenue target range to seven to 10 percent as ANZ’s investment program bore fruit.
"We will continue to invest to underpin revenue growth, and work towards leadership in our major businesses over time. We believe this will build superior and sustainable value for shareholders over the medium to long term," he said.
"In consequence, expense growth in 2007 is likely to be similar to that in 2006."
"When we said that we would invest to create a real difference that others would find hard to replicate, and to accelerate revenue growth to seven to nine percent it was seen as stretching. It’s now evident this is the right approach," he said.
The star performer was the bank’s Personal division which saw revenues grow 13 percent and earnings increase 22 percent. Consumer finance grew 25 percent, while mortgages increased by 21 percent. ANZ opened 25 new branches over the period.
Institutional earning grew 11 percent while revenue grew at eight percent in 2006.
Trade and Transaction services increased 16 percent on the previous year.
McFarlane said the bank was confident of extending its future revenue target range to seven to 10 percent as ANZ’s investment program bore fruit.
"We will continue to invest to underpin revenue growth, and work towards leadership in our major businesses over time. We believe this will build superior and sustainable value for shareholders over the medium to long term," he said.
"In consequence, expense growth in 2007 is likely to be similar to that in 2006."
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