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ANZ NZ delivers another solid full-year result

Thursday, 3 November 2016, 12:48 pm
Press Release: ANZ New Zealand

News Release

For release: 3 November 2016

ANZ NZ delivers another solid full-year result

Australia and New Zealand Banking Group Limited (ANZ) 2016 results were released today, with ANZ New Zealand[1] delivering a cash profit of NZ$1.53 billion, down 9%, and a statutory profit of NZ$1.54 billion, down 13% on the 2015 financial year.

The 2016 financial year includes charges of NZ$178 million associated with specified items [2] announced at the ANZ Group 2016 full year results. Excluding these charges, cash profit was NZ$1.66 billion, down 2%.

Net interest income increased 5% compared with the previous year, primarily reflecting continued lending growth, while interest margins have contracted due to strong lending competition and a customer preference for fixed rate mortgages. The decline in other operating income reflected lower trading income and losses on hedging derivatives.

ANZ New Zealand Chief Executive Officer David Hisco said: “We had a solid year and while our net profit after tax wasn’t as strong as the 2015 financial year, the New Zealand business is performing well and reflects the performance of the economy.

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[1] ANZ New Zealand represents all of ANZ’s operations in New Zealand, including ANZ Bank New Zealand Limited, its parent company ANZ Holdings (New Zealand) Limited and the New Zealand branch of ANZ.

[2] The ANZ 2016 full year results outlined the impact of certain charges referred to as “Specified Items”. Specified items relevant to ANZ NZ were an accounting change to the application of the Group’s software capitalisation policy effective from 1 October 2015, changes to the methodology for credit valuation adjustments (CVA) in determining the fair value of derivatives to align with evolving market practice and restructuring costs.

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ANZ Bank New Zealand Limited

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