31 Oct 2014

ANZ Bank profit soars to $1.7bn

3:28 pm on 31 October 2014

New Zealand's largest bank, ANZ, has lifted its annual net profit 25 percent, crediting an increased market share, productivity and credit quality.

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ANZ Bank grew market share in home loans and other lending, cards and KiwiSaver. Photo: REUTERS

The bank's $1.7 billion net profit in the year to September was up from $1.37 billion for the previous year.

ANZ bank says this reflects a 5 percent rise in lending, particularly home loans, and an 8 percent increase in customer deposits.

Chief executive David Hisco said his bank continued to work on reducing duplication and on building a simpler and more productive business after integrating the former National Bank.

The changes had enabled ANZ to have more local specialists in more places than other banks, he said.

Mr Hisco said ANZ has grown its market shares in home loans, cards, KiwiSaver and commercial lending. The bank is the manager of more than one in four KiwiSavers' nesteggs.

He said the figures included all subsidiaries and its holding company and had been adjusted to exclude non-core items and arrive at a figure based on cash profit.

The result was also boosted by a $91 million-dollar insurance recovery before tax, but the underlying profit trend was still strong, Mr Hisco said.

ANZ shares have been climbing incrementally for about a month and rose 0.13 percent this morning.

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