ANZ looks towards Asia for future growth - 500 Beiträge pro Seite

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ANZ looks towards Asia for future growth


SYDNEY: Australia & New Zealand Banking Group Ltd (ANZ) said yesterday that deposit and mortgage growth had helped prop up its first-half earnings, but a tough domestic market would force it to seek growth in Asia.

Australia`s third largest lender said its net profit rose 9% in the period, lower than traditional double-digit increases but in line with expectations for the country`s big four banks. The industry is battling to find new business in a saturated market.

ANZ, which plans to pour up to 10% of its investment capital into Asia in the next three years, also said it would tap into China’s banking market, where it already has a co-operation agreement with a local group.

“Even though this is at the very early stages, breaking into domestic business in China is really a big deal if we can pull it off,” chief executive John McFarlane said.

ANZ reported a net profit of A$1.141bil for the six months to March, compared with A$1.05bil in the previous corresponding period, when earnings leapt 17%.

McFarlane said the bank was on track to deliver 8% earnings per share growth this year and in 2004, but investors were disappointed after it failed to announce a share buyback and declared a lower-than-expected dividend of 44 cents per share, against 39 cents a year ago.

ANZ shares fell 0.6% to A$18.63 yesterday in a lower overall market. The stock has climbed 8% so far this year, compared with a 0.1% fall in the benchmark S&P/ASX200 index.“The result is a little bit better than what we were going for, but there was no share buyback...and also the outlook for 2004 is not very clear,” said J.P. Morgan analyst Brian Johnson. “It is a neutralist kind of outcome.” – Reuters

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