Economy

ANZ records $6.41B in FY2017 profits

ANZ records $6.41B in FY2017 profits”

Mr Elliott did not paint an overly rosy picture for Australian banking in the year ahead.

ANZ's New Zealand lending business, which will see former Prime Minister John Key take over as chair in the new year, grew its mortgage book 5 per cent in the year to $72.35 billion, while commercial loans increased 1 per cent to $40.96 billion.

"Compared to the billions of dollars in profit the bank makes every year, and the billions in fines handed out to United Kingdom banks for similar misconduct, the $50 million penalty is just a light slap on the wrist". "Revenue growth looks challenging in the future".

The comments come as ANZ reports group profits were up 12 per cent over the year ending 30 September 2017.

Cash earnings-a measure tracked by analysts that strips out certain items such as revenue hedges and treasury shares-were 18% higher at A$6.94 billion, in line with expectations.

A year ago, the ANZ announced it had sold its Asia retail banking to DBS so it could concentrate on its institution customers in the region.

"The reality is, it is hard out there", Elliott said in a statement.

In recent weeks, it struck a deal worth up to US$288 million to sell its stake in a credit card provider in the Philippines and a A$975 million agreement to sell its pensions and financial planning business in Australia.

On Thursday, the bank said its final dividend would be flat, at 80 cents per share.

Mr. Elliott said the bank had no incentive to "sit on lazy capital", so as it received the proceeds from asset sales it would consider returning capital to shareholders, potentially through a buyback.

ANZ's credit impairment charge for the year was reduced by 38% to A$1.2 billion, with a decline of one-third between the first and second half of fiscal 2017.

Net interest margin at the bank, the difference between their cost of funds and the price they lend money at, was down two basis points from half-to-half at 1.98 basis points.

The Melbourne-based parent says New Zealand operating costs decreased as a result of a reduction in jobs, driven by automation and "transaction migration to lower-cost channels".



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