ANZ Annual Profit Rises as Impairment Costs Fall

BUSINESS ANZ's $1.78 billion profit a record high 26 Oct 2017 10:25am 4 minutes to read

BUSINESS ANZ's $1.78 billion profit a record high 26 Oct 2017 10:25am 4 minutes to read

The Australian division produced a $3.7 billion cash profit, up 4 percent over the previous year.

Elliott said ANZ was more than halfway through its shift in approach - whilst insisting change was not a skill the bank wanted to forget - and already meets "unquestionably strong" capital regulatory requirements, two years ahead of schedule.

"We have made some hard calls. and the new shape of ANZ is now emerging", Mr Elliott said.

ANZ has also agreed to the $975 million sale of its superannuation and other businesses - plus a $184 million selldown of its stake in a Filippino credit card joint venture - but those deals fall outside its 2016/17 fiscal year that ended on September 30.

ANZ's Melbourne-based parent company said operating costs in the New Zeland banking division "decreased as a result of a reduction in FTE [full-time equivalent staff] driven by automation and transaction migration to lower cost channels, partially offset by inflation". "The strength in some parts of the economy also meant fewer bad loans to contend with and a more benign credit environment saw the provision charge trend lower".


Customer deposits increased 6 per cent over the year.

Despite expectations the bank would be able to expand its net interest margin - the difference between what it borrows money for and what it lends it out at - they slipped marginally over the year.

ANZ's Australian parent company made a net profit of $A6.41b which was a 12 per cent increase on the prior financial year.

And while final and full dividends have been held at $1.60 and 80 cents a share respectively, there is now a suggestion (as some analysts have predicted) that shareholders could benefit from a buyback with the bank's capital meeting regulator requirements to be "unquestionably strong". The bank CEO however, citing fierce competition and tougher regulation, warned the current year would get more challenging. "Revenue growth looks challenging in the future".

ANZ's dual-listed shares were unchanged at $34.32 on the NZX.

Recommended News

  • US House passes sanctions on Hezbollah

    Sudan and Syria are the other two countries now deemed as state sponsors of terrorism. The legislation doesn't undermine the Obama-era Iran nuclear deal.
    Seanie Maguire makes Ireland's World Cup play-off squad

    Seanie Maguire makes Ireland's World Cup play-off squad

    Goalkeeper Keiren Westwood returns following an injury to his ribs, but midfielder David Meyler is suspended for the first leg. As expected, the injured duo of Jonathan Walters and Seamus Coleman have not recovered sufficiently to be considered.
    UFC champion being sued for allegedly choking teenager in gym

    UFC champion being sued for allegedly choking teenager in gym

    There are several courtesies to be followed in a gym and not touching another man's weights is a simple one. We pride ourselves in taking a deeper look into the fighter, and understanding what makes them tick.
  • Trump administration clears the path for more drone testing

    France , Canada , Switzerland and Iceland are all working on incorporating permanent drone delivery systems. Five partnerships can enter the program in the US after the DOT has evaluated applications.
    NAACP Issues Travel Advisory for American Airlines

    NAACP Issues Travel Advisory for American Airlines

    It was the first statewide travel advisory ever issued by the organization. The organization called for an "audience" with the airline.
    HDFC Bank Q2 net up 20% on healthy loan growth

    HDFC Bank Q2 net up 20% on healthy loan growth

    In a regulatory filing, the bank declared that other income increase by 24.3% in the given period. The growth was largely driven by higher net interest income, other income and operating profit.
  • Vidya Balan Unveils Hawa Hawai 2.0

    Vidya Balan Unveils Hawa Hawai 2.0

    And to better acquaint us with her character, the makers of the film have dropped upon us a new song titled Hawa Hawai 2.0. The iconic song sung by Kavita Krishnamurthy has only been repackaged and not recreated in a bid to retain its essence.
    Chhath celebrations on with religious fervour in Bihar

    Chhath celebrations on with religious fervour in Bihar

    With the movement of people from one state to other, has also increased the culture & tradition exchange among the Indian states. Hence, mainly a Chhath puja is a festival to take blessings from Sun God and his wife Usha .
    Yankees' manager Joe Girardi will not return despite ALCS appearance

    Yankees' manager Joe Girardi will not return despite ALCS appearance

    In 10 seasons with the Yankees and one with the Marlins Girardi has won 988 games with five seasons of at least 90 wins. Girardi, 53, leaves the Bombers with a 910-710 managerial record since 2008.
  • Verizon creates new $10 monthly charge to remove video throttling ars_ab.settitle(1194211)

    It'll cost you an extra $10 per month, but you'll be able to stream video to your phone over 4G LTE at its original definition. The new Premium Streaming option will be available starting November 3, a Verizon spokeswoman confirmed to PCMag.

    New mental health support to be offered to public sector workers

    Analysis by Deloitte, commissioned as part of an independent review into workplace mental health, has found that poor mental health costs the United Kingdom economy between £74 billion and £99bn a year.
    Asia billionaires overtake United States  for first time led by China

    Asia billionaires overtake United States for first time led by China

    Europe has the highest proportion of "multi-generational billionaires", indicating a higher prevalence of inherited wealth. New report states that the wealth of billionaires of the world increased by almost $1 trillion in 2016.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.