ANZ posts $1 billion plus profit

New Zealand largest bank, ANZ, has reported a 14% increase in half-year profits compared to the corresponding period last year.

Chief executive Antonia Watson said the bank had made an after-tax cash profit of $1.107 billion in the six months ending March 31, compared to $968 million in the same period last year.

She agrees it’s “a large profit number”, however, she says, “it needs to be put into the context of the size of our business and the role banks like ANZ play in supporting economic activity in New Zealand, particularly during periods of uncertainty.”

“The actual profitability of ANZ NZ, which measures our returns versus the amount of capital committed by shareholders, is middle of the pack when compared to large companies listed on the New Zealand stock exchange,” she said.

Unsurprising she also said in a statement, it “was a good result”.

“All parts of our business performed well and one that prepares us for the uncertain economic environment ahead.”

“The New Zealand economy has remained remarkably resilient, however the impact of a softening housing market, stubbornly high inflation and the impact of a rising official cash rate is starting to have a material impact on businesses and households.

“While a rising interest rate environment contributed to the result, this was offset by intense competition in home lending, which we expect to remain a feature of the market for some time into the future."


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