ANZ New Zealand reported a cash profit after tax of $699 million for the period, up 14% on the $612 million reported in the previous corresponding period. The profit was up nearly 4% on the $673 million reported in September last year. Total operating income was down 2% at $1.76 billion from the previous period and 3.8% on September.
ANZ Group's New Zealand shareholders would receive New Zealand imputation credits of 9c per share on the 2013 interim dividend. Across the Tasman, the group reported results exceeding analyst expectations with ''impressive'' performances from both domestic and international businesses, Morningstar analyst David Ellis said.
Cash earnings rose 10% to $A3.2 billion ($NZ3.9 billion) and the dividend increased 11% to A73cps, equating to a 64% payout.
''The key takeout is the intention to progressively increase the dividend payout from the current level at the bottom of the 65% to 70% range to the top end. Strong profitability, improving return on equity and surplus capital, supports the higher payout,'' Mr Ellis said.
New Zealand chief executive David Hisco said the result, which maintained the momentum in the first half of the financial year, followed a series of significant, carefully managed changes.
The initial phase of the brand integration between ANZ and the former National Bank had gone smoothly and with minimal disruption to customers, he said.
''We are growing market share in target segments and have maintained high levels of customer satisfaction. While the revenue environment is still subdued, our simplification programme has helped us lift productivity and reduce costs and has positioned us to better leverage our scale to support future earnings growth.''
The accounts showed that operating expenses fell 11% in March to $765 million compared to the previous period. Provision for bad debts fell by 56% to $43 million.
Mr Hisco said lending volumes rose in a low-growth credit environment, driven mainly by above-market growth in mortgages, though margins had moved down from their 2012 peak.
With demand growing in the housing market, ANZ had continued to focus on being the top home loan provider to New Zealanders. The bank had launched several products to make the process of taking out a mortgage easier, he said.
The bank had also launched a $500 million package to support the creation of new small and medium-sized enterprises that would generate jobs and boost economic growth.
Bank workers union First general secretary Robert Reid said the extent of the windfall profits the Australian banks made off the backs of New Zealanders would sit uneasily for many.
''These high profits are the result of aggressive sales targets workers are subjected to in banks. ANZ's workforce are in the unfortunate position of being incentivised to drive up New Zealand household debt as much as they can in order to boost the company's profits.''
ANZ should take the opportunity to shift its focus to reinvesting in New Zealand through good jobs and higher levels of customer service and away from just sending back as much profit as it could across the Tasman, he said.
