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ANZ Trading Update (PDF 40kB)

In a shareholder update covering 10 months of trading1 , ANZ today reported a solid underlying business performance despite ongoing challenges associated with the global economic environment. 

Key Points


  • Unaudited Underlying Profit after tax is tracking slightly above comparable period in 2008, although lower on an Earnings per Share basis due to additional shares issued during the year², while cash profit is tracking broadly in line with 2008³.

  • Strong revenue trends have continued driven largely by the performance of the Institutional Division particularly Global Markets and Asia.

  • Lending growth in the Retail and Commercial segments has been offset by a reduction in Institutional.

  • Positive revenue/expense jaws are being maintained, notwithstanding continued investment in the super regional strategy and Institutional remediation.

  • Provision growth has moderated for all divisions and geographies other than New Zealand. The total provision charge is tracking slightly better than expectations; however the FY09 charge remains difficult to predict and we reiterate the guidance provided in May.

  • Given reductions in global credit spreads, the Credit Risk on Derivatives post-tax charge related to credit intermediation trades of $664 million in the first half of 2009 has substantially reversed and for the 10 months is around $125 million. This charge continues to be volatile. The impact of the improved credit intermediation trades position is substantially neutralised in the statutory earnings by a reversal of previously reported mark to market gains on economic hedging.

  • Impaired loans/facilities and derivatives were up 7%, for the June quarter, which is a slower rate of increase than that experienced in each of the previous two quarters.

  • Group Net Interest Margin (NIM) trends remain positive primarily reflecting improved asset margins and repricing for risk. New Zealand margins will decline year on year.

  • Proforma Tier 1 capital ratio of 10.2%4 at June. FY09 funding completed ahead of schedule. 


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