Photo: AFP
The country's biggest bank has posted a reduced profit as expenses grew faster than income, it cut margins to retain market share, but also lowered the amount for bad debts.
Key numbers for the 12 months ended September compared with a year ago:
- Net profit $2.09b vs $2.13b
- Revenue $5.05b vs $5.01b
- Cash profit $2.29b vs $2.26b (excludes one -offs)
- Net interest margin 2.57% vs 2.64%
- Impairments $44m vs $183m
Chief executive Antonia Watson said earnings reflected the impact of the economic downturn, high interest rates and cost of living pressures on customers.
"Banks are a reflection of the economies they operate in. Like many of our customers, our costs grew faster than our income in the year."
She said the effects of stubborn inflation, high interest rates and weaker economic growth were still being felt, but there were signs of improvement.
"As interest rates come down, inflation is controlled and businesses feel more confident, there is a sense of cautious optimism surrounding New Zealand's economic future."
Lending rose 2 percent, with deposits rising 3 percent, but ANZ's net interest margin fell seven basis points to 2.57 percent as it was forced to pay higher deposit rates and matched lower lending rates.
The amount set aside for potential bad debts was slashed by 76 percent to $44m as households and businesses generally stayed on top of their debt levels.
Watson said more than a quarter of its home loan accounts were six months or more ahead in repayments, and over half of customers had a savings buffer.
"Despite the challenging economic condition, customers remained resilient."
She said there had been growth in taking special energy efficiency loans, small business packages, and lending for larger social and environmental related ventures.
Watson said ANZ had increased its scam fighting measures and prevented $34m worth of fraud, with the number of scams rising 18 percent, but customer losses fell slightly, and 93 percent of reported cases resulted in no loss to customers.
She said a growing number of ANZ customers were using open banking, which allowed third party finance concerns can offer services and products, and further providers would be added over the coming year.
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