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 7 May 2024:

ANZ New Zealand (ANZ NZ) today reported a cash net profit after tax (NPAT) of $1,155 million for the six months to 31 March 2024, consistent with the $1,155 million recorded for the six months to 30 September 2023.

Statutory NPAT, which includes gains and losses from economic hedges, was $1,038 million, decreasing by 8% over the same period. ANZ Bank NZ CEO Antonia Watson said banks reflect the economies they operate in, and New Zealand had entered a more challenging period.

“This is a solid result which reflects a degree of resilience across the economy in the face of economic headwinds, and how we have been faring as a nation.

“In the second half of last year our performance slowed and we’re now seeing the impact of stubbornly high inflation, an official cash rate on hold at a restrictive level, rising unemployment, and the flow on effect into business and consumer confidence.

These pressures are likely to continue throughout the year with unemployment expected to rise further, and more households and Kiwi businesses feeling the impact of that,” Ms Watson said.

“However, we’ve managed our business well through the challenging conditions and remain focussed on supporting our customers.”

Revenue for the first half of the year was $2,524 million.

Expenses were well managed coming in broadly flat inclusive of higher wage and operational costs.

Despite subdued customer activity in the housing market ANZ grew home loan market share, providing $10.1 billion in new home lending.