Performance Highlights – 1H 2014 compared to 1H 2013 (PCP)1
Statutory profit $3.4 billion up 15%; Cash profit2 $3.5 billion up 11%.
- Fully franked Interim Dividend of 83 cents per share an increase of 14%.
- Income up 3.6% and expenses up 1.7% (FX adjusted).
- Cost to income ratio improved a further 20 basis points to 44.3%.
- Return on equity steady at 15.5% with earnings per share up 10% to 128.7 cents.
- Customer deposits grew 13%, net loans and advances up 12%.
- Provision charge of $528 million, 12% lower.
ANZ Chief Executive Officer Mike Smith said: “This is a good set of results. They demonstrate consistent progress with ANZ’s long-term strategy to grow in our core franchises in Australia and New Zealand, to build a significant and profitable franchise in Asia Pacific, and to establish common infrastructure and processes that improve productivity and reduce risk.
“The diversification this strategy provides is now delivering a differentiated proposition for our customers and improved returns for shareholders.
“Our international business, particularly Asia, is firing on all cylinders with revenue and profits again growing strongly, and a sustained improvement in returns. Profits from International and Institutional in Asia Pacific, Europe and Americas (APEA) are up 43% based on significant growth in customer numbers and in products that support regional trade and investment flows such as foreign exchange, cash management and trade finance.
“Since we launched our strategy six years ago, the compound annual growth rate in earnings from Asia has been 37% and ANZ is now being consistently rated a top 4 Corporate Bank in Asia by Greenwich Associates3 .
“In Australia we are seeing ongoing benefits emerge from the investment in our Banking on Australia program which includes new digital solutions for our customers. We have developed greater scale based on market share growth in home lending, small business lending and retail deposits. Business confidence in Australia is recovering more slowly than expected however, and in some segments growth remains subdued with competition placing pressure on margins. Costs were carefully managed in this environment.
“In New Zealand after several years of hard work our business is in a winning position. ANZ’s move to a single brand and technology platform together with New Zealand’s economic recovery saw volume growth, improved productivity and lower provisions.
“Global Wealth continues to focus on improving the customer experience with wealth solutions increasingly integrated with our banking offering and more options for self directed customers. Our revenue performance was positive, underpinned by strong growth in funds under management, favourable claims and lapse experience along with growth in Private Wealth.
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