Australia’s ANZ Group, owner of New Zealand’s ANZ and National Bank’s, says New Zealand profitability is recovering amid an "emerging" economic recovery.
ANZ chief executive Mike Smith made these comments in the group's sharemarket update today. Smith said ANZ unaudited underlying profit after tax rose 26% in the nine months to June to A$3.6 billion.The underlying profit figure excludes non-cash and one-off items.
Smith said an “emerging recovery” in New Zealand meant business profitability was recovering well from the lows of the second half of 2009 and first half of 2010.
“While the lagged benefit of repricing the fixed rate book has seen a small improvement in margins, head winds from higher funding costs, both for wholesale and deposits, remain significant,” Smith said.
“Costs are being well controlled and provisions are moderating, especially in retail.”
Smith also said ANZ had issued about A$24 billion of term funding during the 2010 financial year, completing the A$20 - A$25 billion term funding plans announced at the start of the financial year.
ANZ also owns New Zealand finance company UDC and wealth manager ING, which is being renamed OnePath.
4 Comments
Yes, just before bedtime - very helpful for a peaceful sleep - good to read positive comments. As a retailer I’m looking forward to strong Christmas sales and I’m positive the RWC in 2011 will increase business activity further.
But in the meantime, I’m up by 7am facing reality again tomorrow.
WK
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