ANZ

Money Magazine Australia - - VALUE.ABLE -

ANZ re­ported weak rev­enue in its half-year re­sults.

The bank con­tin­ues to ra­tio­nalise its Asian loan book. In the re­cent re­port­ing pe­riod, how­ever, this didn’t pro­vide any ben­e­fit to the net in­ter­est mar­gin, which was lower than in the pre­vi­ous six months, ex­clud­ing the im­pact of mar­kets and rates. A repric­ing of loans ben­e­fit was off­set by higher fund­ing costs and changes to the mix of de­posits. This high­lights that there are still a lot of off­sets to the repric­ing of mort­gages.

No­tably, the higher-value “fees and com­mis­sions”, as well as wealth man­age­ment rev­enues, were weak, while cost con­trol was good and the re­sult was boosted by a lower bad debts ex­pense. Im­pair­ments and delin­quen­cies in­creased slightly but at this stage in line with the loan book. Over­all the re­sult high­lights how the banks are in­creas­ingly de­pen­dent on cost re­duc­tions to de­liver any earn­ings growth.

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