Hard, smart work leads to profit at ANZ NZ

ANZ’s full-year profit growth reflects the benefits of the bank’s simplification strategy and the New Zealand arm played a significant role in helping the group reach the result.

ANZ New Zealand is reporting a cash profit of $NZ1.86 billion, up 21 per cent on the previous year, or a statutory profit of $NZ1.78 billion, up 15 per cent. 

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Figures are in $A. Exclude financials for ANZ NZ’s Institutional business.

There’s no secret to our strong result – it’s because we continue to work hard and smart as a New Zealand business.

"There’s no secret to our strong result – it’s because we continue to work hard and smart as a New Zealand business.” - David Hisco

Our lending book continues to grow and contributed to revenues reaching $NZ4.08 billion.  We’ve also continued to keep a lid on costs. In fact, our expenses fell again and are now below 2010 levels. 


In recent years we’ve had a strong focus on improving the quality of our lending book and that’s starting to pay dividends – better quality means fewer credit losses.

The New Zealand business makes about 40 per cent of its profits from home loans and in this space we continue to be the market leader with our share now at 31.1 per cent. It’s competitive out there, though, with net interest margins still tight.

To help offset the margin pressure we’ve been good in 2017 in getting in deposits which were up 6 per cent. I’d like to see us continue to grow our deposits as part of having a healthy bank.

Giving back

This year ANZ paid:

• $NZ680 million in corporate taxes (more than 5 per cent of New Zealand’s total corporate tax take);

• $NZ800 million in staff wages and salaries;

• $NZ545 million to local contractors and suppliers; and

• $NZ70 million in dividends to about 17,500 New Zealand shareholders and managed funds.


While not in the annual results, the 2017 financial year was also significant for the fact for the first time in our history ANZ’s brand consideration was number one out of all New Zealand banks - not just the big four.

Our Net Promoter and Customer Satisfaction scores also went up and I know this has been a focus for everyone on the front line.

Our digital story has also started to ramp up. ApplePay had its one year anniversary, GoMoney has more features and other initiatives are underway for our frontline staff and customers.

David Hisco is CEO, ANZ NZ

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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