The New Zealand operations of the ANZ had focused on improving the quality of its agribusiness portfolio rather than outright growth, New Zealand chief executive David Hisco said yesterday.
Releasing the bank's annual result, Mr Hisco said the agribusiness portfolio had performed well during the downturn in global dairy prices as many farming customers adjusted their cost structures to remain profitable at more modest dairy payout ranges.
Longer term, ANZ New Zealand was also optimistic about the prospects of dairy and believed many of its farming customers were positioning themselves to take advantage of further industry consolidation as well as a back to basic, high-performing, low-cost production model.
ANZ New Zealand reported an operating profit before credit impairments and income tax of $2.24billion for the year ended September, down 7% on the $2.4billion reported in the previous corresponding period (pcp).
The bank increased its credit impairment provision by 96% to $149million and paid $566million in cash, down 12% on the $644million paid in the pcp.