New Zealand's biggest bank has reported a record full-year net profit, reflecting pent-up economic demand as pandemic restrictions eased.
ANZ profits have reached record highs. Photo: RNZ / Nate McKinnon
ANZ New Zealand's net profit for the year ended September rose 20 percent to $2.3 billion.
Key numbers for the 12 months ended September compared with a year ago:
- Net profit $2.3b vs $1.92b
- Revenue $4.55b vs $4.13b
- Cash profit 2.06b vs $1.91b
- Impairment ($39m) vs $115m
While the housing market had recently gone quiet, chief executive Antonia Watson said it was buoyant for much of the financial year, with a $5.3b increase in home lending to $104b.
"Banks are a reflection of the economies they operate in, and New Zealand has been far more resilient than expected," Watson said.
Customer deposits rose 4.2 percent and net loans and advances rose 4.5 percent.
"Many of our customers have taken the opportunity to pay down debt and increase their savings. This caution is wise given the dark clouds on the horizon."
Given the changing economic conditions, she said the bank had increased its provisions for bad debts to $751m, and it took a charge of $39m in the year just ended.
"Inflation is stubbornly high and that will mean higher costs of living and higher interest rates for longer. Global growth and geopolitical issues outside New Zealand's control could also severely impact the country in 2023," she said.
"The uncertain environment means New Zealanders need to be cautious."
The bank's funds under management fell 12 percent to $34.3b, reflecting the transfer of KiwiSaver default customers to other managers, Bonus Bonds wind-up distributions, and the market downturn.
The ANZ Group reported a 16 percent increase in full-year net profit to A$7.12b.