ANZ is a major Australian-based bank operating a retail and business banking franchise in Australia, New Zealand and throughout the South Pacific. Australian operations make up the largest part of ANZ's business with commercial and retail banking and funds management.

Following heavy losses in Russian bonds trading in 1998 and the bank's high risk exposure to emerging markets, CEO John McFarlane has been refocusing the bank's strategy toward lower risk retail operations in the Asia Pacific region. The funds management alliance established with Dutch group ING in April 2002 fills a strategic gap. ANZ has not expanded its Wealth Management operations content to establish a joint venture with ING and being satisfied to concentrate on banking activities.ANZ has acquired National Bank of New Zealand from Lloyds TSB for A$4.915bn to be partially funded by a 2-for-11 rights issue at $13.00 to raise $3.6bn. The acquisition will catapult ANZ to the No.1 position in New Zealand banking.ANZ reported a 9.5% lift in NPAT for ordinary shareholders to $2.246 billion for the year to September 30, 2003. Cash NPAT increased by 9.2% to $2.41 billion.All business segments with the exception of Consumer Finance and the ING Australia joint venture lifted contributions to group NPAT with the features being Asia Pacific (+33.7%), Asset Finance (+23.3), Corporate (+11.5%), Mortgages (+9.3%).Cost-to-income ratio improved from 46% to 45.1% reflecting further gains in efficiency.Average net lending assets increased by $13.6bn or 10% boosted by growth of $10.8bn or 18% in mortgages. Mortgages accounted for almost 80% of the increase in lending assets. Net interest margin contracted by 10 basis points to 2.67% resulting in net interest income increasing by 7.3% to $4.3bn. Non-interest income was up 0.4% to $2.8bn.

30/09/03

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Banks