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.