ANZ NZ’s profit falls 29% to $1.371b
AUCKLAND: ANZ New Zealand’s cash profit slumped 29% to $1.371 billion in the financial year to September 30 on the back of a rise in credit impairments driven by Covid19.
The country’s largest bank, which is owned by ASXlisted ANZ, revealed its financial results yesterday morning.
Its net profit after tax was down 27% at $1.336 billion.
ANZ NZ chief executive Antonia Watson said the results reflected a significant uplift in the charge for expected credit losses due to changes in the economic environment.
The bank’s credit impairment charges rose from $99 million to $401 million.
The results also reflected the sale of
UDC Finance in September, together with benefits in the previous financial year from the sales of OnePath Life and ANZ NZ’s share in Paymark.
ANZ NZ’s operating income fell from $4.326 billion to $4.049 billion, while its expenses also rose from $1.585 billion to $1.736 billion due to higher regulatory costs and a goodwill impairment relating to the planned windup of the Bonus Bonds scheme.
Ms Watson said despite the difficult year, ANZ NZ had continued to perform well, demonstrating the bank could weather challenging economic conditions and play an important role in supporting through the crisis.
So far ANZ NZ had provided financial help to about 43,000 personal, home and business loan customers through repayment deferrals, moving them to interestonly and loan adjustments covering lending of about $27 billion.
‘‘The New Zealand economy has a lot going for it. As well as our management of Covid19, our commodity prices are holding up as countries shore up their food supply chains,’’ Ms Watson said.
‘‘Business confidence and other indicators of economic activity have bounced back quickly. Businesses have some certainty about the future that simply doesn’t exist in other countries.’’
Many of the bank’s customers had taken the opportunity to improve their financial situation by increasing savings or paying down personal or home loan debt, she said.
Net loans and advances were flat at $133 billion, while its deposits rose from $109.2 billion to $120.9 billion.
Ms Watson said although she was optimistic many businesses would survive, the next few months would be difficult.
Despite an uplift in its credit provision charges, the bank’s focus on responsible lending meant credit quality remained strong, she said. — The New Zealand Herald
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