ANZ profit down 23 per cent
The ANZ Banking Group has reported a 23 per cent decline in net profit to $3.029 billion despite a 12 per cent increase in underlying revenue.
The banking group acknowledged that the results had been impacted by a $1.4 billion increase in credit impairment charges on lending to $1.9 billion along with a $0.7 billion charge for credit risk on derivatives.
Commenting on the result, ANZ chief executive Mike Smith said it reflected the underlying strength of the business and its ability to weather an extremely challenging year.
However, looking over the horizon, Smith said market conditions globally remained difficult and unpredictable, albeit that the bank’s announced restructuring would accelerate progress.
“Managing a large commercial bank means managing through a range of conditions,” he said. “While we expect choppy conditions to continue in 2009, ANZ is well positioned to manage this cycle, to continue to invest and maximise opportunities which arise.”
Looking specifically at its personal banking division, ANZ said while profit had grown by 12 per cent, driven by improved income from banking products, small business and consumer products, investment and insurance products, while up 13 per cent, had experienced a weaker second half due to reduced trading volumes in ETrade and lower volumes in financial planning.
AUTHOR
Mike Taylor
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