ANZ Posts $1.73 Billion Profit For The Quarter, Up 13%

ANZ boss Mike Smith. Photo: Getty

The ANZ Bank announced a profit of $1.73 billion for the three months to end December 2013.

This is up 13% on the same period the previous year.

CEO Mike Smith said the bank’s Australian Retail and Corporate/Commercial divisions both gained market share.

The Asia expansion saw strong expansion with double digit growth in Singapore, China and Hong Kong.

Smith said:

“The bottom line is that we have made a good start to 2014. There remain a number of challenging issues in the global economic environment however these are now largely more predictable. Our performance in the first quarter means we are on track to deliver a solid 2014 based on market share growth and improving shareholder returns.

Trading conditions have been largely consistent with the second half of FY13 with modest system credit growth but some volatility in financial markets driving increased customer volumes in the Global Markets business particularly in Foreign Exchange (FX).

Highlights:

  • The Group’s financial performance was in line with guidance provided at the time of the FY13 results being – assuming no change in foreign exchange (FX) rates, annual revenue growth for FY14 would be between 4% and 5%, expense growth around 2% and the risk profile remaining stable
  • Actual revenue growth was above the guidance range but on a FX adjusted basis was in line with guidance. Expenses also increased above guidance but primarily due to changes in FX rates and on a FX adjusted basis were in line. The provisions charge reflected improving credit quality.
  • The total provision charge for FY13 was $1.2 billion
  • Customer deposits increased 4%; with net loans and advances up 3% from the end of FY133. Deposit growth has been strong across all geographies however lending demand has varied across the Group.
  • In the Australia Division home lending has grown above system for the past 16 quarters. In the Corporate and Commercial business while lending demand in the Small Business Banking and Corporate sectors has been reasonable in aggregate lending demand has been subdued.
  • In the New Zealand Division we have continued to grow our home loan book strongly through both Business Banking and Retail channels with strong performance in the under 80% loan to value segment.
  • Global Markets had a strong quarter led by customer sales which delivered 53% of the first quarter’s markets income. FX revenues were strong particularly in Asia Pacific and Balance Sheet trading benefited from tightening credit spreads. The first quarter Global Markets revenue of just over $600 million was up 5.7% PCP.

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