ANZ FY14 Results
Good 2014 result across all markets, well positioned for the operating environment.
Performance Highlights1
- Statutory profit after tax of $7.3 billion up 15%. Cash profit2 of $7.1 billion up 10%.
- Final Dividend of 95 cents per share fully franked is up 14% on the Interim Dividend and brings the Total Dividend for FY14 to 178 cents per share up 9%. Earnings per share increased 9% to 260.3 cents.
- Profit before provisions (PBP) up 7%.
- Adjusting for the contribution of foreign exchange3 (FX) and the disposal of ANZ Trustees and the SSI shareholding4 , revenue increased 4% and expenses 1.8%.The cost to income ratio (CTI) on the same basis improved a further 94 basis points (bps) to 44.3%.
- Customer deposits grew 9.5% with net loans and advances up 8%.
- Provision charge was $989 million down 17%.
- Return on equity (RoE) up 10 bps to 15.4%.
- Common Equity Tier 1 (CET1) ratio on an Australian Prudential Regulation Authority (APRA) Basel 3 basis up 47 bp
ANZ Chief Executive Officer Mike Smith said: “This is another good performance that demonstrates consistent execution of our super regional strategy which is positioning ANZ well in a more constrained operating environment.
“We made progress in all our key markets by creating a better bank for all our customers whether big, small, retail or corporate. There were market share gains in key segments in Australia, the New Zealand business performed strongly following the brand simplification and Global Wealth performed well .
“The result also saw continued momentum from our international business in Asia Pacific Europe and America which now accounts for 24% of Group revenues. This provides ANZ with meaningful and differentiated growth options without the need to take on more risk. With the phase of high investment in Asia largely complete, we are seeing a greater share of Asia-led revenue growth translate to profit.
“Clearly though the macro drivers of growth in the sector are slowing and the environment is looking more challenging. We anticipated these challenges by setting targets for improving business productivity and shareholder returns, while actively reducing risk. This result highlights continued progress against those targets.
“Our enterprise approach to productivity and technology has seen ANZ consolidate its position as one of the most efficient banks in the world. We are progressively standardising processes and systems, streamlining teams, introducing more straight-through processing, as well as more convenient online and mobile banking self-service options.
“We have seen good growth and returns are also improving with more opportunities to continue improving capital efficiency by actively re-shaping our portfolio of businesses,” Mr Smith said.
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