ANZ National lifts 1Q earnings 6.2% as bad debts fall

ANZ National lifts 1Q earnings 6.2% as bad debts fall

By Paul McBeth

Feb. 25 (BusinessDesk) – ANZ National Bank Ltd., the country’s biggest lender, lifted first-quarter profit 6.2% as it slashed its charge on bad debts by 80%.

The New Zealand arm of Melbourne-based Australia & New Zealand Banking Group reported a net profit of $258 million in the three months ended Dec. 31, up from $243 million a year earlier, according to its general disclosure statement.

The bank wiped out the majority of its charge on bad debts to just $29 million in the quarter, from $145 million a year earlier. The bank’s operating income slipped $7 million to $815 million.

“Lending growth was relatively flat reflecting the impact of deleveraging by households and businesses,” said chief executive David Hisco. “Our performance demonstrates we are well positioned to continue to support our customers and the New Zealand economy through its recovery and return to growth.”

The bank’s annual profit surged last year after it halved its expectations for loan defaults, even as it doubled the net value of assets falling past due date. ANZ National’s total provision for credit impairment was $1.3 billion as at Dec. 31, down from $1.4 billion at the end of September.

ANZ National loaned some $43.6 billion on residential mortgages at the end of the quarter, down from $43.9 billion at the end of the September period. Its non-housing loans were flat at $39.2 billion in the quarter.

The bank attracted $2.6 billion in retail funding in the quarter, with term deposits at $36.1 billion as at Dec. 31.

ANZ’s shares fell 0.3% to $32.50 on the NZX, and rose 0.4% to A$24.18 on the ASX.

(BusinessDesk)

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