Over $5 billion profit for ANZ
(4 November 2011 – Australia) ANZ Bank posted a huge A$5.36 billion profit but still complained that the global economic situation had deteriorated trading conditions for its markets businesses significantly.
ANZ’s net profit for the year to 30 September was up 19 percent from A$4.5 billion the year earlier, with cash profit up by 12 percent from the previous 12 months to A$5.65 billion.
‘‘The global economic situation saw trading conditions for our markets business deteriorate significantly,’’ chief executive Mike Smith said.
‘‘This more difficult operating environment - characterised by ongoing economic volatility, cautious consumer and business behaviour, and higher funding and capital costs for banks globally - is likely to be with us for some time.’’
A 31 percent drop in ANZ’s provision for bad debts to A$1.24 billion boosted the net profit for the year just ended, while all divisions posted profit growth.
Australia’s economy was still multi-speed and the housing market was expected to be flat for some time, Smith said. He said he expected credit growth in fiscal 2012 to be similar to that experienced last financial year.
ANZ's second-half underlying profit rose 4 percent on lower bad-debt provisions to A$2.83 billion, compared with the A$2.9 billion expected by analysts and A$2.73 billion reported a year ago.
Underlying profit excludes one-offs, non-cash accounting items and investment gains or losses.
While Australian banks have been posting record profits, the challenge for them is to cut costs at a time core growth has fallen. Meeting global liquidity rules has seen raising costs further.
ANZ’s global markets business in its institutional division reported a 28 percent decline in profit from the previous year, because of volatility and the bank’s decision to be risk averse.
The Bank increased the size of its loans and advances by 8 percent from the previous year to A$397.3 billion, while customer deposits were up by 16 percent to A$298.8 billion, the bank said.
Its Australian division posted a profit of A$2.78 billion in the year to September, up two per cent from the previous corresponding period.
The Asia Pacific, Europe and America division increased profit by 16 percent to A$721 million, as ANZ’s Asian expansion continues.
New Zealand profit rose by 54 percent to A$692 million, as conditions improved and impairments fell.
Gross impaired assets were down 15 percent in the year, and ANZ’s provision charge for bad debts was down 31 percent from the previous year at A$1.237 billion.
ANZ's result completes the quartet of major Australian banks reporting record full-year earnings. Westpac reported yesterday that its full-year cash earnings topped A$6.3 billion, while last week NAB said its cash profit came in at A$5.5 billion. The Commonwealth Bank, which reports its results to the end of June, said in August that its cash profit totalled A$6.8 billion. In sum, the cash profits totalled about A$24.3 billion.
‘‘The global economic situation saw trading conditions for our markets business deteriorate significantly,’’ chief executive Mike Smith said.
‘‘This more difficult operating environment - characterised by ongoing economic volatility, cautious consumer and business behaviour, and higher funding and capital costs for banks globally - is likely to be with us for some time.’’
A 31 percent drop in ANZ’s provision for bad debts to A$1.24 billion boosted the net profit for the year just ended, while all divisions posted profit growth.
Australia’s economy was still multi-speed and the housing market was expected to be flat for some time, Smith said. He said he expected credit growth in fiscal 2012 to be similar to that experienced last financial year.
ANZ's second-half underlying profit rose 4 percent on lower bad-debt provisions to A$2.83 billion, compared with the A$2.9 billion expected by analysts and A$2.73 billion reported a year ago.
Underlying profit excludes one-offs, non-cash accounting items and investment gains or losses.
While Australian banks have been posting record profits, the challenge for them is to cut costs at a time core growth has fallen. Meeting global liquidity rules has seen raising costs further.
ANZ’s global markets business in its institutional division reported a 28 percent decline in profit from the previous year, because of volatility and the bank’s decision to be risk averse.
The Bank increased the size of its loans and advances by 8 percent from the previous year to A$397.3 billion, while customer deposits were up by 16 percent to A$298.8 billion, the bank said.
Its Australian division posted a profit of A$2.78 billion in the year to September, up two per cent from the previous corresponding period.
The Asia Pacific, Europe and America division increased profit by 16 percent to A$721 million, as ANZ’s Asian expansion continues.
New Zealand profit rose by 54 percent to A$692 million, as conditions improved and impairments fell.
Gross impaired assets were down 15 percent in the year, and ANZ’s provision charge for bad debts was down 31 percent from the previous year at A$1.237 billion.
ANZ's result completes the quartet of major Australian banks reporting record full-year earnings. Westpac reported yesterday that its full-year cash earnings topped A$6.3 billion, while last week NAB said its cash profit came in at A$5.5 billion. The Commonwealth Bank, which reports its results to the end of June, said in August that its cash profit totalled A$6.8 billion. In sum, the cash profits totalled about A$24.3 billion.
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