“ANZ has invested in digital across the Group, delivering multichannel platforms that have globally extensible capabilities covering aspects like employee mobility, products (GoMoney and MobilePay), security systems and more intuitive internet banking”.
Advertisement
Drilling down on the Global Wealth Division, the ANZ’s announcement to the ASX said that profit had increased by 11 per cent, with positive performance experienced across all business units.
ANZ shares were up 0.6 per cent to $28.93 in shortly after the market opened.
Chief executive Mike Smith said the credit cycle was “bumping along the bottom”, and provisions for bad debts, which reached their low point.
“When you haven’t got a Government that believes in savings, or thinks that Kiwi Saver or the Cullen funds should be rapidly expanding our savings base, this is the kind of outcome we get”.
However, I find this hard to believe because ANZ’s net loans and advances rose in all markets by at least 9%.
The decline the bank faced was only due to the recent capital raising.
Smith also said that it was, however, hard for the bank to provide return on equity up to 16 percent to the shareholders.
“There are significant opportunities for ANZ”.
After NAB on Wednesday pointed to margin pressure, especially in its business bank, ANZ also said net interest margins had contracted, by 8 basis points over the year to 2.04 per cent. In the second half, however, margins were flat.
“We are continuing to evolve our strategy and accelerate its execution to maximise value for our customers and for our shareholders”, he said.
Mr Peters said it’s foreign ownership siphoning off a tsunami of Kiwi money and profits and dividends off to overseas headquarters. There were a few macroeconomic factors related to the worldwide and Institutional Banking Division that affected the productivity of the group. Revenue in the global and institutional bank was higher but profit was lower.
Advertisement
The common equity tier 1 ratio, a measure of a bank’s ability to absorb future losses, climbed 87 basis points from six months earlier to 9.6 percent after ANZ raised as much as A$4.4 billion in fresh equity during the year.
