ANZ posts ‘surprising’ $941m half-year cash profit in New Zealand
ANZ delivered a “surprising” lift in its first-half earnings, according to a banking expert.
The local unit of Australia & New Zealand Banking Group increased first-half earnings 1 per cent as mortgage lending continued to grow.
Banking expert Claire Matthews, of Massey University, said this was slightly unexpected.
“Overall the fact they had an increase in their performance compared to last year was something of a surprise,” Matthews said.
“The general expectation was that it wasn’t going to be a significant downturn but it was more likely there would be a weakening in their performance rather than a strengthening.”
Cash profit, the preferred earnings measure for the Australian-owned banks, rose to $941 million in the six months ended March 31 from $928m a year earlier, the Auckland-based lender said in a statement.
Statutory profit rose 11 per cent to $964m, as revenue rose 3 per cent to $2.1 billion.
The New Zealand banking business posted an 11 per cent gain in earnings to $793m, while the institutional business saw earnings fall 38 per cent to $122m.
In the first half, ANZ’s New Zealand banking division expanded its loan book 3 per cent to $118.5b, with mortgage lending up 5 per cent to $73.7b, and commercial lending up 3 per cent to $41.5b.
Customer deposits increased 4 per cent to $84.4b, and net interest margin rose 10 basis points to 2.37 per cent due to higher lending margins.
“ANZ has grown in home lending and deposits, which reflects the continuing strength of the New Zealand housing market and of the economy generally,” said ANZ New Zealand chief executive David Hisco.
As at the March 31 balance date, the bank had $29.2b, up 8 per cent from the same time a year ago.