The big banking group used its results announcement to the Australian Securities Exchange (ASX) to highlight the success of its super product.
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ANZ’s global wealth division posted an increase in profit for the year ended 30 September 2015, after the bank experienced a “positive performance” across all its business units.
Deutsche Bank analyst Andrew Triggs said a “cause for concern” in ANZ was the level of new impaired loans, which rose 49 per cent in the half mainly because of the bank’s institutional arm.
The Conference Board USA consumer confidence index tumbled 5 per cent and the Westpac MNI China consumer confidence index plunged 7.2 per cent.
ANZ shares were up 0.6 per cent to $28.93 in shortly after the market opened.
The numbers have been tallied and it’s official: the big four have earned a whopping $30 billion in combined annual cash profits, an increase of more than six per cent.
Chief executive Mike Smith said the credit cycle was “bumping along the bottom”, and provisions for bad debts, which reached their low point.
Figures provided in the parent company’s results for the local banking division show net loans and advances in New Zealand rose to $104.76b from $96.56b.
Shareholders will get a final dividend payout of 95 cents a share, fully franked.
While profits rose compared with the previous financial year, earnings fell 4 per cent in the second half of the year to September, as charges for bad and and doubtful debts also rose during this period.
Smith also said that it was, however, hard for the bank to provide return on equity up to 16 percent to the shareholders. Net interest income rose to $2.88 billion from $2.77 billion.
“In Australia we are successfully investing in growth opportunities in New South Wales while across Australia and New Zealand we are continuing to grow market share in mortgages and small business”, he said.
Mr Peters said it’s foreign ownership siphoning off a tsunami of Kiwi money and profits and dividends off to overseas headquarters. ANZ said it was seeking to better control capital and costs to deal with this pressure and other headwinds, including low trade volumes and weak commodity prices.
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He’s accusing the Government of sitting idly by while banks such as the BNZ and ANZ post mammoth profits in excess of a billion dollars.
