ANZ profit biggest ever for an NZ bank
Staff efficiency and offering fewer products to customers have helped drive ANZ to the largest profit ever seen from a New Zealand bank – $1.86 billion.
Chief executive David Hisco said the solid performance in the year to September 30 was due to lending growth and ‘‘strong cost management’’.
The profit might look big to the public, but shareholders had enormous capital invested in the bank. ‘‘If you add Fonterra, Air New Zealand and Spark together they wouldn’t have as much capital.’’
ANZ’s returns to shareholders were ‘‘middle of the pack’’, he said. ANZ paid 5 per cent of the total Crown tax take, he said. ‘‘We are big at the top end but we pay a lot of tax and do a lot in the community.’’
Hisco said the bank had focused on efficiencies, digitising processes where it was appropriate.
‘‘We have reduced the number of products from almost 350 in 2012 to offer fewer than 90 in 2017, improving staff efficiency and making life simpler for them and our customers.’’
Expenses decreased 8 per cent and were below the bank’s 2010 levels, while the bank had maintained high customer satisfaction.
‘‘That’s a remarkable achievement and reflects our team’s strong discipline, high productivity and our digital push.
‘‘The strength in some parts of the economy also meant fewer bad loans to contend with.’’
Customer deposits increased 6 per cent over the year.