Source: Radio New Zealand
ANZ used economic hedges to manage interest rate and foreign exchange risks. RNZ / Marika Khabazi
The country’s biggest bank has reported a record full-year profit largely driven by gains from economic hedges, while lending and margins also increased.
Key numbers for the 12 months ended September compared with a year ago:
- Net profit $2.53b vs $2.09b
- Revenue $5.15b vs $5.05b
- Cash profit $2.37b vs $2.29b (excluding one-offs)
- Expenses $1.81b vs $1.76b
- Net interest margin 2.60% vs 2.57%
- Economic hedges $163m gain vs $195m loss.
ANZ also gained $25 million from money previously set aside for bad debts.
ANZ used economic hedges to manage interest rate and foreign exchange risks, with gains and losses from the hedges reversing over time.
Leaving aside one-offs, ANZ’s cash profit rose 4 percent, with its net interest margin rising by 3 basis points and net interest income rising 4 percent to $4.47 billion.
The bank said customer deposits rose 5 percent, while gross loans and advances increased 4 percent, contributing to overall revenue growth.
Expenses rose 3 percent driven by inflationary pressures.
ANZ NZ chief executive Antonia Watson said banks were a reflection of the economies they operated in, and the result showed New Zealand was turning a corner.
“It has taken New Zealand longer than hoped to recover from the post-Covid rebalancing, but there are now signs the nation’s economy is finally picking up,” Watson said.
ANZ said personal banking income increased 10 percent to $1.24b, while business and agri income was flat at $528m.
Lending to small to medium business (excluding commercial property) rose 4 percent.
“Global uncertainty hasn’t helped but we expect lower inflation and falling interest rates to flow through and boost the recovery as we head into the new year,” Watson said.
She said confidence was returning in regional areas, but Auckland and Wellington, due to the nature of their economies, would take longer to recover.
ANZ’s Australian parent reported a 10 percent drop in profit to A$5.89b, as the group was hit by fines across the Tasman and redundancy costs as it underwent a major restructure.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
