ANZ's Sept Qtr profit jumps but mortgage book shrinks again

ANZ Bank's profit jumped in the September quarter but its mortgage book shrank for a second successive quarter.

Thursday, December 1st 2011, 12:53PM

by Jenny Ruth

The loan to valuation ratio (LVR) table in ANZ's latest New Zealand branch disclosure statement,which includes all the bank's activities in this country, shows ANZ's mortgage book, the largest in New Zealand, fell by $162 million to $51.17 billion in the three months.

Using Reserve Bank figures as a proxy for the market, that suggests ANZ's share of the mortgage market eased to 30.3% from 30.5% in June.

The LVR table is where GoodReturns now derives its mortgage data because it is the one consistent measure across all banks but, in ANZ's case, it only began disclosing this information from the June quarter this year.

However, the other two available measures of ANZ's mortgage book, which have a lengthy history, both show the book shrinking since March this year.

The capital adequacy measure shows the book contracted by $272 million to $53.22 billion at September 30 and from $53.64 billion at March 31.

The note on loans and advances shows housing loans fell by $282 million to $53.7 billion at June 30 and from $54.03 billion at March 31.

Broadly, ANZ has been losing market share since its 2003 takeover of National Bank but, until the last two quarters, its mortgage book was still growing.

ANZ's net profit in the three months ended September rose 41.7% to $350 million with net interest income growing 2.5% to $666 million while other operating income, including lending and credit facility fee income, jumped to $165 million compared with $96 million in the year-earlier quarter.

Profit for the year ended September rose 25.1% to $1.08 billion.

The bank's charges against profit for bad loans rose a little in the quarter to $58 million from $48 million in the year-earlier quarter but these charges for the year fell to $190 million from $456 million in the previous year.

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