“The Bank is very well positioned” said Chief Executive Graham Hodges.
“ANZ National has good profitability and is well capitalised with strong liquidity - these factors put us in a sound position for the current and expected economic environment” he said.
June 2008 : Nine month Performance Summary
• Headline net profit after tax (NPAT) of $960 million, up 13% from $848 million earned in the nine months to June 2007.
• After adjusting for non-core items, underlying cash profit was $870 million, a 10% increase compared to the nine months to June 2007 ($791 million).
• Provision for credit impairment charge of $167 million, up from an unusually low $56m in the June 2007 period.
• Net loans and advances were up $10,168 million over the nine month period, which is a 12% increase on June 2007.
• Total deposits and other borrowings were $75,266 million, up 14% on June 2007.
• Underlying cost-to-income ratio decreased to 41.7%, compared with 43.8% in the corresponding period to June 2007.
Growth in the nine month period has been led by an exceptional performance in the Institutional business, mainly driven by a strong Markets revenue contribution.
The key relationship businesses (Rural, Corporate, Commercial) also performed solidly over the period. Profit in the Retail businesses has been impacted by higher provisioning and a squeeze in deposit margins as financial institutions seek to raise funds domestically.
While underlying net operating income increased 10% in the nine month period compared to the corresponding period to June 2007, momentum has moderated through the course of the year in response to slowing balance sheet growth, margin pressures and the higher costs of offshore funding.
ANZ National has a strong and diversified funding base with access to local retail and wholesale deposits, as well as global funding sources. The bank has completed its funding programme for 2008 with recent debt issues including $835m in perpetual subordinated bonds and a US$2 billion five year fixed-rate note issue.