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Current as of 27/04/17 09:00AM NZST

Improving economy boosts ANZ's result

ANZ has improved the quality of its loan book. Photo / Richard Robinson
ANZ has improved the quality of its loan book. Photo / Richard Robinson

Australia & New Zealand Banking Group says its New Zealand unit grabbed market share of home and commercial lending in the latest quarter as an improving economy stoked credit growth.

ANZ Bank New Zealand, the local unit of the Melbourne-based lender, lifted net profit 21 per cent to $1.26 billion in the nine months ended June on a 5.1 per cent increase in net interest income to $2.04 billion.

New Zealand's biggest bank improved the quality of its loan book in the period, with a $26 million credit impairment release, compared to a $45 million charge a year earlier.

The lender boosted its mortgage loan book to $51.54 billion as at June 30 from $47.83 billion a year earlier, and increased non-housing loans to $39.24 billion from $37.93 billion. Credit card advances rose to $1.55 billion from $1.44 billion.

"The New Zealand division has increased market share in home lending, credit cards and commercial lending," the Australian parent said.

"The improving economic environment is encouraging growth in the commercial sector and ANZ has been well positioned to capture the opportunity ..."

In May, ANZ Bank New Zealand posted a 27 per cent gain in first-half cash profit, recording the biggest gain among the four divisions of Australia's third-largest lender after growing home-loans and cutting costs.

The New Zealand branch increased cash profit 19 per cent to $1.27 billion in the nine months through June.

The Australian parent lifted cash profit 8 per cent to A$5.2 billion in the nine months through June, and statutory net profit was up the same amount to A$5 billion.

The dual-listed shares closed unchanged at $36 on the NZX, and down A35c at A$32.39 on the ASX.

- BusinessDesk

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