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ANZ announces steady profit despite difficult international environment Australia and New Zealand Banking Group Limited recorded an operating profit after tax and before abnormal items of $1,175 million for the year ended 30 September 1998, broadly similar to the $1,171 million for the 1997 financial year. The operating profit after tax and abnormal items was $1,106 million, up from $1,024 million in 1997. ANZ Chairman, Mr Charles Goode, made the following comments about the result: "Maintaining profit at last year's level is a creditable result in the context of a deteriorating international environment. "Our domestic banking businesses in Australia and New Zealand have performed extremely well, particularly Personal Banking. The benefits from our investment in programmes to improve efficiency are now emerging with total costs lower than in 1997, and second half costs lower than in the first half. "ANZ has a long established position as Australia and New Zealand's international bank and therefore felt the impact of the Asian turmoil and the collapse in emerging financial markets. Our review of these activities led us to substantially reduce our non core Asian exposures and exit our capital markets operations in London. "We also exited institutional stockbroking and this together with the cost of exiting the London capital markets operations resulted in an abnormal loss after tax of $69 million. "We enter the current year with a business that has a better strategic balance. "The final dividend will be increased to 28 cents per share, bringing the full year dividend to 52 cents, up 8% on 1997. The increase in the dividend reflects the underlying strength of the Group and its future prospects. The dividend is franked to 60% and this level is expected to increase in the current financial year," Mr Goode concluded.
Paul Edwards David Ward |
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