ANZ Trading Update - 9 months to 30 June 2014
Super regional strategy sees ANZ deliver a strong profit performance year to date.
ANZ today announced an unaudited cash profit1 of $5.2 billion and an unaudited statutory net profit of $5.0 billion for the 9 months to 30 June 2014, both up 8% on the same period in 2013. Cash profit increased 6% on an FX adjusted basis.
Chief Executive Officer Mike Smith said: “ANZ has continued to perform well with strong results in Asia and consistent performances in both New Zealand and Australia despite parts of the Australian economy being a little slower than expected.
“Our strategy continues to strengthen our position across all key markets. In Australia, our Retail and Commercial businesses are demonstrating consistent performance with further market share increases in home lending and continued lending growth in small business banking. After a period of subdued demand we are seeing signs of a pick up in corporate sector borrowing appetite. In New Zealand we have had a continuing productivity focus following the brand and systems merger and our market position is seeing us benefit from the economic upturn outperforming peers across a range of metrics.
“Strong growth in Asia and in businesses linked to Asia continues to be a highlight. Our unique regional capability also helped us regain the number one lead bank position in Institutional Banking in Australia and retain the number one lead bank position in New Zealand2 .
“Corporate balance sheets remain in good shape across the region, leading to strengthening credit quality and a corresponding reduction in provisions. Combined with weak business investment, surplus global liquidity and strong competition though these trends also saw a further small contraction in loan spreads.
“Our focus on productivity continues to provide us with the flexibility to adjust for the economic environment. This includes further progress with our delivery transformation strategy which is producing better quality outcomes for customers and further reductions in unit costs.
“Our portfolio of businesses has produced a strong profit and we are on track to meet full year expectations. Looking ahead the balance we are creating between growth, return and capital generation positions ANZ well for improved financial performance in the medium and longer term,” Mr Smith said.
GROUP OVERVIEW3
- Third quarter expense trends were similar to the first half with revenue trends a little softer4 . The same macro conditions that provided headwinds for revenue provided tailwinds for credit quality which is reflected in the provision charge trend5 .
- Customer deposits are up 8.3% with net loans and advances up 5.8%. Deposit growth has been strong across all geographies however lending demand has varied across the Group.
- Group Net Interest Margin was slightly lower compared to the end of the first half. Improved funding and deposit pricing has been offset by some asset pricing pressure which was broadly based.
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