Ann: FLLYR: ANB: ANZ New Zealand lifts performanc

• Release Date: 25/10/12 12:09
• Summary: FLLYR: ANB: ANZ New Zealand lifts performance in 2012
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ANB
25/10/2012 10:09
FLLYR

REL: 1009 HRS ANZ National Bank Limited

FLLYR: ANB: ANZ New Zealand lifts performance in 2012

- Gradual economic recovery and strong customer focus help drive improvement
-

Australia and New Zealand Banking Group Limited (ANZ) 2012 full year results
were released today, showing a lift in performance for ANZ New Zealand (Note
1.)  with underlying profit (Note 2.)of NZ$1,368 million, up from $1,244
million in the previous year.

Profit before credit impairment was up 5 per cent reflecting a gradual
improvement in the New Zealand economy, and a focus on customer service,
productivity and simplification which has resulted in balance sheet growth
and a reduced cost-to-income ratio.

ANZ New Zealand Chief Executive Officer David Hisco said: "This result builds
on our strengthened business performance, and reflects both the breadth of
our activities and the popularity of our products and services. Around half
of all New Zealanders choose ANZ New Zealand for their financial needs,
either as their bank or through brands including UDC Finance, OnePath, Direct
Broking and EFTPOS.

"Our strategy to simplify the business and retain a strong customer focus
continues to underpin business performance and is also driving strong
customer satisfaction and staff engagement. The ANZ brand has strengthened,
as reflected by growth in our market share in mortgages, particularly in the
commercially important Auckland market. The rising average cost of our
funding portfolio has had some impact on our net interest margin and this is
expected to continue unless offshore conditions change significantly," Mr
Hisco said.

Key points (Note 2.)
o Underlying profit of $1.368 billion, up 10% compared with the previous year

o Statutory profit of $1.265 billion, up from $1.085 billion in the previous
year
o Profit before credit impairment up 5%
o Cost-to-income ratio reduced 100 basis points to below 43%
o Strengthened credit quality across the book
o Statutory profit includes a charge of $135 million (after tax) related to
the New Zealand Simplification programme, including implementation of a
single core banking system, a single bank brand and an optimised branch
network

"Credit quality has strengthened across the book, reflecting the ongoing
recovery of the New Zealand economy from the impacts of the global financial
crisis. Delinquency rates have declined and there has been an overall
reduction in the individual provision charge.  However, due to lower releases
of collective provisions, the overall impairment charge has increased
slightly.

"Following our announcement last month that we will progressively bring the
ANZ and National Bank brands together as ANZ, our ongoing focus is on
combining the best of both to create New Zealand's best bank," Mr Hisco said.

"With ANZ's strength and presence across Asia Pacific and National Bank's
reputation for great customer service and internet banking, we have a
compelling proposition for customers. We will support this by investing $100
million over two years to ensure ANZ has a well-positioned and attractive
branch network in current and new communities.

"We will continue to build on the opportunities presented by greater
efficiencies and scale as we progressively integrate the business in New
Zealand. This weekend we will take an important step as we move ANZ and The
National Bank onto one technology platform.

"Throughout the year, the bank and its almost 9,000 staff have also shown a
strong commitment to supporting the broader community and the New Zealand
economy," Mr Hisco said.

ANZ's annual contribution to New Zealand has included:

o 8,000 staff volunteering hours;
o $12 million in sponsorships and charitable donations;
o $450 million in taxes to the Government;
o $600 million to local contractors and suppliers; and
o $800 million in staff wages and salaries.

About 13,000 New Zealand shareholders and superannuation funds own about 33
million ANZ shares, worth more than $1 billion. ANZ New Zealand's parent
company has increased its capital in New Zealand by nearly $2 billion since
2009, taking total investment in the business to over $9 billion in 2012.

Mr Hisco said the bank's community commitments in New Zealand would continue
under the ANZ brand, including the Cancer Society's Daffodil Day, Young
Farmer of the Year contest, the ANZ Netball Championship and New Zealand
Cricket sponsorships, the multi-million dollar ANZ Staff Foundation community
donations programme and the MoneyMinded financial literacy programme.

"We were extremely proud to sponsor the Olympic team in London as they
delivered one of the most successful campaigns ever by New Zealand.

"As this country's largest financial services provider, and one of its
largest companies, we will continue to support New Zealanders and their
businesses amid global economic uncertainty and assist New Zealand's economic
recovery," Mr Hisco said.

A table of key financial information is attached to the Media Release.
Further infomation is also contained in the accompanying documents.

Notes (1.): All comparisons are FY12 compared to FY11 unless otherwise
stated. ANZ New Zealand represents all of ANZ's operations in New Zealand,
including ANZ National Bank Limited, its parent company ANZ Holdings (New
Zealand) Limited and the New Zealand branch of ANZ.

Note (2.): Reported profit has been adjusted to exclude non-cash and
significant items to arrive at underlying profit. All comparisons in Key
Points are on an underlying profit basis and relate to the preceding year
unless otherwise stated.

For media enquiries contact: Pete Barnao, Corporate Affairs, ANZ New Zealand,

Ph 09 252 6623 or 027 277 3139
End CA:00228846 For:ANB    Type:FLLYR      Time:2012-10-25 10:09:15