Brand merger helps ANZ's profits soar

The New Zealand arm of the bank contributed 22 per cent to its Melbourne-based parent's annual cash earnings. Photo / Michael Craig

ANZ New Zealand boosted annual earnings 17 per cent as the local unit of Australia & New Zealand Banking Group benefited from home loan lending growth and bedded down savings from the integration of the National Bank brand.

Cash profit, which strips out movements in the value of financial instruments, rose to $1.68 billion in the 12 months ended September 30, from $1.43 billion a year earlier, the Auckland-based lender said.

Statutory net profit climbed 25 per cent to $1.71 billion.

Operating income increased 7 per cent to $3.76 billion, while expenses shrank 2 per cent to $1.46 billion.

"We have continued to reduce our duplicated costs and build a simpler, more productive business following our National Bank and ANZ brand merger in late 2012," said chief executive David Hisco.

"We have grown market share in home loans, cards, KiwiSaver and commercial lending."

The New Zealand business contributed about 22 per cent to its Melbourne-based parent's annual cash earnings of A$7.12 billion ($8 billion), up from A$6.49 billion a year earlier.

The group lifted net profit 15 per cent to A$7.27 billion on an 8 per cent gain in operating income to A$20.05 billion.

ANZ's board declared a final dividend of A95c a share, payable on December 16, and taking total payments for the year to A$1.78.

The group's New Zealand banking division, the country's biggest lender, lifted cash profit 10 per cent to $1.17 billion on a 5 per cent increase in net interest income to $2.36 billion, with earnings from retail lending growing at a faster pace.

The bank had net loans of $96.56 billion as at September 30 from $91.63 billion a year earlier, of which $37.12 billion was in retail banking and $59.53 billion in commercial. Agri lending grew 5 per cent to $36.56 billion and small business lending rose 12 per cent to $22.88 billion. Customer deposits rose 10 per cent to $57.62 billion. BusinessDesk