Australia’s ANZ misses housing boom, despite higher-than-expected earnings

File Photo: On February 20, 2018, a man talks on the phone in front of ANZ Banking’s corporate tower in central Sydney, Australia. REUTERS / Daniel Munoz

October 27, 2021

Paulina Durand

Sydney (Reuters)-Australia and New Zealand Banking Group’s annual profits released Thursday to cover potential non-performing loans due to a milder than expected impact of the global outbreak. It exceeded market expectations by 65%.

But Australia’s fourth-largest lender will benefit from the mortgage boom, despite unprecedented amounts of fiscal spending causing a debt surge of 20% of home prices, which shrank in the second half of the year. I had a hard time.

Cash gains from continuing operations for the year ended September 30 were A $ 6.20 billion ($ 4.66 billion), an average estimate of 59.6 in Reuters polls, compared to A $ 3.76 billion reported the previous year. It exceeded A $ 100 million.

Banks have declared a dividend of A $ 0.70 per share, two cents higher than in the first half, from 35 cents in the same period last year when regulators restricted dividend payments due to pandemic uncertainty.

Australian banks’ home trading volume fell 1% to A $ 278 billion in the second half of the year. This is due to ANZ’s highly competitive refinancing market, where customers repay their loans faster and handle the problem.

“This year we got off to a very good start with mortgages, but of course we saw an incredible amount of turnover and home buying and selling across the economy. Now we’re not well prepared. It was, and it’s with me, “said CEO Shayne Elliott.

Elliott added that banks are hiring talent to address loan processing time issues and have made progress since July. In New Zealand, a lender-dominated market, mortgages increased 11%.

Net interest margins were up 1 basis point to 1.64%, primarily due to ultra-cheap funding costs.

Credit Suisse analysts expected an immediate “neutral” market reaction, as the published material did not provide an explanation of the 2022 outlook. The bank will welcome a simple investor at 2100 GMT or 10 am Sydney time.

ANZ has announced an additional ANZ $ 567 million secured last year in preparation for the worst of the COVID-19 crisis.

($ 1 = 1.3303 Australian dollars)

(Report by Paulina Duran in Sydney, Riya Sharma and Nikhil Kurian Nainan in Bangalore, edited by Arun Koyyur and Karishma Singh)

Australia’s ANZ misses housing boom, despite higher-than-expected earnings

Source link Australia’s ANZ misses housing boom, despite higher-than-expected earnings

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