ANZ grapples with New Zealand capital question
Its New Zealand net profit fell 8 percent to $1.83 billion in the 12 months ended Sept. 30, as fair value movements on financial instruments and insurance policies, and year-earlier gains on asset sales pushed the bottom line around.
Cash earnings from continuing operations fell 4 percent to $1.53 billion, as New Zealand's biggest bank lifted its provisioning for bad debts to $92 million from $6 million a year earlier. It also faced a 5 percent increase in operating costs to $1.33 billion as compliance expenses mounted.
Group chief executive Shayne Elliott described New Zealand's performance as a solid underlying result in an increasingly competitive environment.
"Compliance and remediation costs contributed to higher operating expenses. This was mainly driven by the complex work required to comply with new regulatory standards that all subsidiary banks be able to operate as stand-alone entities," he said.
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