VoiceOver users please use the tab key when navigating expanded menus

Building a healthy and balanced economy

 

Antonia Watson

CEO, ANZ New Zealand Ltd.

ANZ New Zealand today reported a statutory net profit after tax (NPAT) of NZ$1,919 million for the 12 months to 30 September 2021 – a 44% increase on the 2020 financial year.

 

CEO Antonia Watson says the role of strong institutions is now perhaps more important than at any time in recent history because a healthy and balanced economy is the foundation for opportunities and improved wellbeing for all New Zealanders.

 

In New Zealand we’ve had a strong year off the back of record demand in the housing market, a stronger than expected economy and a significant reduction in provisions the bank put aside last year in anticipation of bad debts that didn’t eventuate.

 

ANZ NZ’s statutory net profit after tax (NPAT), which includes exceptional or one-off items, was NZ$1,919 million for the 12 months to 30 September 2021, a 44% increase on the previous year. Our cash NPAT was NZ$1,907 million, 39% up on FY20.

 

As a general rule, when economies do well so too do banks. That’s because banks supply the credit for an economy to operate – for people to buy homes and to start and expand businesses - and are involved in the financial transactions.

 

That’s been the case with us.

 

Record low interest rates and higher demand than supply of housing during the year saw record home lending – it increased by $9.3 billion in the 12-month period to $99 billion. One in three first home buyers borrowed from us too.

 

Last year we had a provision charge of $401 million for what we were anticipating to be bad debts created by the pandemic. But our confidence in the economy is such that we’re now able to release $115 million of that provision and that’s also helped our NPAT number.

 

Our revenues were up 2% for the year, which reflected our 6% gross lending growth which was partly offset by lower Markets revenues and lower income post the sale of UDC Finance in FY20.

 

Our expenses decreased 7% as a result of lower customer remediation and restructuring and one offs in the previous year not being repeated.

 

 

"The role of strong institutions is now perhaps more important than at any time in recent history because a healthy and balanced economy is the foundation for opportunities and improved wellbeing for all New Zealanders" - Antonia Watson, CEO, ANZ NZ Ltd.

 

 

Key Points

 

  • Statutory profit up 44% at NZ$1,919 million.

 

  • Cash profit up 39% at NZ$1,907 million, mainly due to lower credit impairment charges.

 

  • Revenue up 2%, reflecting lending growth.

 

  • Expenses decreased 7% due to lower customer remediation and restructuring, one-offs in prior period not repeated, other efficiencies, and the sale of UDC in September 2020.

 

  • Credit impairment charge down $516 million from a charge of $401 million to a release of $115 million due to the improved economic conditions.

 

  • Customer deposits up 3.5% and gross lending increased by 6.0%.

 

  • KiwiSaver funds under management grew 16% to $19.0 billion.

 

  • Ordinary dividend of $845 million paid in June 2021.

 

  • As at 30 September 2021, the ANZ Bank New Zealand Limited group remains well capitalised with a RBNZ total capital ratio of 16.9%, up from 14.4% as at 30 September 2020.

 

All comparisons are year ended 30 September 2021 compared with year ended 30 September 2020 and on a  cash basis unless noted otherwise

 

While many businesses that rely on tourists and overseas students continue to be impacted by COVID-19, particularly Auckland where the hospitality sector is also struggling, the economy fared better than most expected.

 

Many learned from last year’s lockdowns and adapted their business models, and continuing strong global demand for New Zealand’s exports resulted in a robust economy.

 

Nevertheless, COVID-19 continues to present many challenges and difficulties.

 

ANZ NZ supported many businesses during the year, including waiving fees for contactless debit cards, providing temporary overdrafts, loan extensions and removing fees for loan restructuring.

 

As New Zealand’s largest bank, and one of its largest companies, we have helped provide not just assistance for customers, but stability for the economy.

 

During the financial year ANZ NZ was the country’s biggest corporate taxpayer, paying around $750 million in tax, employed about 8000 New Zealanders, paid $540 million to contractors and suppliers, and $60 million was paid by way of dividends from ANZ Group to New Zealanders, either directly or through KiwiSaver, pension and managed funds.

 

We also contributed $11.8 million to sponsorships, and sports, arts, cultural and community organisations and events.

 

RELATED ARTICLES

ANZ search for next female cricketing talent

ANZ is seeking the next generation of female cricketing talent to join the ANZ Next XI.

ANZ donates AUD$50,000 towards Tonga rebuild

ANZ has donated AUD50,000 to the Red Cross, to support Tonga’s rebuild, following the tsunami and volcanic eruption which caused damage to buildings and homes.

ANZ supports NZ's largest-ever sustainable re-financing worth NZ$1.25 billion

Metlifecare has completed a refinancing of the company’s bank loan facilities into Sustainability-Linked Loan facilities tied to ambitious social and environmental goals.