ANZ 2010 Interim Result
ANZ today announced an underlying profit1 for the half year ended 31 March 2010 of $2.3 billion up 23% on the preceding half (HOH) and 20% higher than the prior corresponding period (PCP).
Statutory profit for the half year ended 31 March 2010 was $1.93 billion up 26% HOH and 36% PCP. The interim dividend of 52 cents per share fully franked is 6 cents per share or 13% higher PCP.
Key Points
• Underlying profit growth was driven by an 8% growth in profit before provisions excluding Global Markets (up 3% including Global Markets) and a 32% reduction in the credit impairment charge.
• Underlying EPS increased 15%.
• Group margins (ex Global Markets) were up 15 basis points (bps) from recovery of higher funding costs and more sustainable pricing for risk, with Institutional the major contributor.
• Customer deposits grew 2% while Group lending levels were broadly flat with growth in mortgages offset by lower demand in Corporate and Institutional and a repositioning of the Institutional book.
• The total provision coverage ratio remains high at 2.1% of Credit Risk Weighted Assets (CRWA) with the collective provision ratio at 1.38%3 of CRWA.
• The reported Tier One capital level at the end of March was 10.7%4 .
• Australia region profit was up 15% with good contributions from the Institutional, Wealth and Commercial businesses and a sound performance in Retail.
• Asia Pacific Europe & Americas (APEA) region USD profit increased 19% or 8% AUD with Institutional and Partnerships the main contributors.
• New Zealand region profit of NZ$372 million was a NZ$238 million increase on the prior half with a 45% reduction in the provision charge.
• Institutional division profit was up 19%, with provisions down 38% and income off 4% as Global Markets revenues trrend back from the above normal 2009 levels. Income grew 8% excluding Global Markets.
ANZ Chief Executive Officer Mike Smith said: “Across the Group revenue and profit increased. Australia performed well and we’re establishing greater clarity and discipline around growth. New Zealand’s performance has improved as the economy recovers and we are seeing the benefits of a tightly managed business. While Asia Pacific moved to a period of consolidation, it still recorded double digit profit growth. Institutional’s result shows we are now making tangible progress in turning around the business based on a clear strategy aligned to our super regional objective.