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New Zealand's biggest bank produces eye watering quarterly profit

Banking / news
New Zealand's biggest bank produces eye watering quarterly profit
anz

ANZ, the country's biggest bank booked a $642.3 million profit after tax in the March quarter, according to the latest update of the Reserve Bank's Bank Financial Strength Dashboard.

That's the most the bank has made in a quarter at least since the dashboard was introduced six years ago, and is almost certainly its most profitable quarter ever. 

Before tax ANZ's March quarter profit weighed in at $899.5 million, just shy of $10 million per day.

The March after tax figure compares to $491.2 million in the March 2023 quarter, $412.5 million in the December 2023 quarter, and the previous high of $620 million in the June 2022 quarter.

So why was ANZ's March 2024 quarterly profit so high? A big trading and hedging gain, and miniscule impaired asset expense certainly helped.

The bank had net interest income of $1.07 billion, versus $1.05 billion in the March 2023 quarter, with a net interest margin of 2.4% versus 2.3%.

It recorded trading and hedging gains of $127.4 million versus a loss of $0.6 million, and impaired asset expense of just $0.3 million versus $98.7 million. Fee and commission income came in at $117.4 million versus $120.1 million, and all other income was $2.6 million versus $3.6 million.

The bank's operating expenses were $21.1 million, or 5%, higher in the March 2024 quarter versus the March 2023 quarter, at $417.9 million, and it paid $257.2 million of tax, up $35.1 million year-on-year.

As of March 31, ANZ's total lending stood at $151.451 billion, according to the dashboard. That's up $665.8 million since December 31 last year, and $3.665 billion year-on-year.

The country's biggest housing lender, ANZ's home loan book was at $107.5 billion at March 31. That's up $793 million, or 0.74%, from $106.706 billion at December 31.

Meanwhile, having been overtaken by BNZ as the country's biggest business lender in 2021, ANZ is falling further behind. Dashboard figures show ANZ's business lending dropped $937 million, or 3%, in the year to March to $26.157 billion. BNZ's rose $497 million, or 2%, to $28.845 billion.

*This article was first published in our email for paying subscribers early on Wednesday morning. See here for more details and how to subscribe.

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22 Comments

Aussie banks absolutely sucking NZ dry.  As a capitalist I’m all in favour of good business make decent profit, but this is outrageous 

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18

"As a capitalist I’m all in favour of good business make decent profit ..."

Perhaps you should consider your position? They did exactly as capitalists do.

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6

Foreign based rentier capitalism is quite a different beast to local business capitalism where the owner of the company actually cares for what happens in his own town where he does business and the reputation which goes with it.

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2

The one sector of business that is bucking the trend. Shame on them.

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2

They are not owned by Kiwis. As such, they did exactly what their owners required.

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1

They're not even owned by Australians.

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0

What's our leaders doing about this apart from peeing in there pockets.

The only thing you can do New Zealander is use the like of TSB,Kiwi bank etc.

You need to vote with your feet time to take some action.

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7

"What's our leaders doing about this apart from peeing in there pockets."

What they've always done.

"You need to vote with your feet time to take some action."

People did. They voted for Prince John. Sir John Key was at that time the Chairman of ANZ Banks and directing National Party policy.

This isn't this hard.

Why are you outraged? It's so bleeding obvious!

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2

I am not outraged just want Kiwis to be smarter and push back like Aussie would.

We need to stand up to the nonsence in this country.

Just more cartel behaviour just like New World,Pack n Save, Woolworth, Placemakers, Caters,Vector.

The average Kiwi is getting screwed and they are slaves to Bankers and the other cartels in this country.

Where is our Leadership ship in this country?

No doubt out for lunch with the cartel operators today.

Unfortunately reading the story about David Mcleod MP for New Plymouth this week this country is corrupt and the current bunch of politicians are the worse at it.

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5

If everyone went to kiwibank we may see some change, but it is more likely not given that there are savings to be made and interest to be gained with the other banks, and bottom dollar matters to a lot of people. Perhaps we might see changes with open banking, and when it is much easier to open accounts at different banks without getting asked what we have eaten for dinner for the last 6months the ask us to bend over and give it the sniff test for validity.

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0

TSB bank a better option very competitive and fantastic to deal with

 

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0

A bit frustrating at times that some people will put so much energy into complaining about money leaving the country, taxes, government spending, etc, and yet still not willing to consider banking with Kiwibank.

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4

Like I've said ... Never, ever pay any attention to bank economists!

Sir John Key, you should be ashamed of yourself!

And thanks, RBNZ's MPC, you too should be ashamed of yourselves. Now would be a good time to resign ... en masse!

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3

Champagne Charlie will be along shortly to give us a quick "haw haw" from the Cayman Islands while sipping on a 50 year old single malt.  

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3

Oh god, please, no!

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0

Between the banks and the supermarket lobby New Zealanders are getting absolutely shafted.. Commerce Commission should be disestablished due to gross negligence and failure to do their job.

We need proper disruption and competition. $10 million in profit a day. For one bank. Beyond shocking really, especially considering the current climate.

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7

Just great! Another win for those appreciate current account deficits....!

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4

Business lending only a quarter of property lending. Hardly surprising.

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6

Again though the share price disappoints. Investors just can't get excited about banks.

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1

NZ banking is only a part of ANZ's operations, I don't think the Australian side of their business is as wildly profitable. But I don't think ANZ investors are complaining with the share price up 19% in the last year, and a dividend yield of over 6%

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1

Yeah cause there's more competition. Banks just don't wanna fight for business. Kiwis can't be bothered switching banks either. "It's too hard". Yeah nah.

 

The honest truth is we're a bunch of pushovers.

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2

Doesn't look like National will be getting any more popular come next election time. I guess the next government will get to start the recovery when the global economy (hopefully) looks more optimistic. 

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