Difficult conditions here to stay: ANZ

by Adam Smith03 Nov 2011

ANZ has announced a $5.36bn full-year statutory profit, but said difficult business conditions will be here "for some time".

The bank saw its full-year profit rise by 19%. Loans and advances grew 8%, and customer deposits grew by 16%. ANZ also saw a 7bp improvement in net interest margin, which it put down to a better funding mix, partially offset by higher costs for deposits.

While ANZ chief executive Mike Smith said the result saw the bank in a "strong financial and capital position", he said the bank's profits were offset by difficult conditions in the second half of the year.

"In the second half ... the global economic situation saw trading conditions for our Markets business deteriorate significantly. This more difficult operating environment - characterised by ongoing economic volatility, cautious consumer and business behaviour, and higher funding and capital costs for banks globally - is likely to be with us for some time," Smith said.

Smith said the bank would continue to focus on the "super regional" strategy which has seen it push into Asia.

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