ANZ profit rises as lending increases

RICHARD MEADOWS
Last updated 12:21 11/02/2014

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ANZ says it has increased its home lending strongly in New Zealand as its Australian parent turns in an A$1.64 billion ($1.77b) first-quarter profit.

This morning ANZ released a trading update for the three months to December 31, which showed profit up 21 per cent year-on-year.

While the profit made by the New Zealand division was not split out, ANZ Group chief executive Mike Smith said it had continued to grow its loan book strongly.

There was particularly strong performance in the below 80 per cent loan-to-value ratio (LVR) segment, which has become increasingly important under new Reserve Bank rules.

The LVR limits restrict banks from allocating more than 10 per cent of their overall new loans to borrowers with small deposits.

Smith also said the simplification programme, which involved dropping the National Bank brand, had continued to produce benefits.

Overall, the ANZ made an adjusted "cash profit" of A$1.73b , up 13 per cent.

That was bolstered in large part by a A$120 million, or 38 per cent, fall in the provision charges for bad loans.

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- © Fairfax NZ News

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