ANZ Bank New Zealand Limited Analysis

Overview

Refer to www.anz.co.nz/about-us/media-centre/investor-information/ for ANZ Bank New Zealand Limited's (ANZB) disclosure statement and information on ANZB bonds and notes.

Performance

The following information was extracted from ANZ Bank New Zealand Limited's half year results, released 8 May 2025:

ANZ New Zealand 1 (ANZ NZ) today reported a cash 0F 1F 2net profit after tax (NPAT) of $1,161 million for the six months to 31 March 2025, up 3% on the $1,131 million recorded for the six months to 30 September 2024.

Statutory NPAT, was $1,277 million, increasing by 21% over the same period. This increase was driven by gains of $116 million from economic hedges, compared to losses of $78 million in the six months to 30 September 2024.

ANZ NZ uses economic hedges to manage interest rate and foreign exchange risks. Gains and losses from these hedges reverse over time.

ANZ Bank New Zealand (ANZ Bank NZ) Chief Executive Officer Antonia Watson said the result came at a time of global uncertainty and markets turmoil.

“Our performance reflects the broader economy we operate in. With revenue and costs largely flat, our half-year result demonstrates consistent performance.

“Many Kiwis are starting to feel the benefits of a lower inflation and interest rate environment and our farmers are seeing strong commodity prices. However, global uncertainty is likely to keep firms cautious about taking risks for a bit longer, slowing the recovery in investment and employment.”

That has resulted in the ANZ economics team revising down their forecasts for both activity and the Official Cash Rate.

“Kiwis are very aware of what is going on in the economy and we are seeing this play out through our customers’ behaviour,” Ms Watson said.

Key points:

All comparisons are against the six months to 30 September 2024 and on a cash basis unless noted otherwise.

• Cash profit of NZ$1,161 million, up 3%
• Statutory profit of NZ$1,277 million, up 21% - increase driven by gains from economic hedges
• Revenue up 1% reflecting lending and deposit growth

Expenses down 1% driven by lower restructuring expense, timing of investment spend and productivity benefits

• Credit impairment release of NZ$5 million, compared to a charge of NZ$11 million for 2H24
• Customer deposits up 3% and net loans and advances up 1%
• Funds under management down 2% to $38.9 billion