ANZ Bank records $6.16b profit for FY21, buoyed by the housing market
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ANZ Bank (ASX:ANZ) released its full year results this morning and just like its competitors, the home lending market drove its profit higher.
ANZ’s statutory post-tax profit was $6.16 billion, up 72% on FY20. It is paying a $1.42 per share dividend, up from 60 cents in FY20 and its Common Equity Tier 1 ratio was was approximately $6 billion above APRA’s ‘Unquestionably Strong’ benchmark.
The company credited the strong housing market as well as retail and commercial lending for its solid performance.
“This year demonstrated the benefits of our diversified portfolio as we provided solid returns for shareholders while also successfully navigating the continuing impacts of COVID-19 on our customers and our people,” said ANZ CEO Shane Elliot.
“Experience tells us the real impacts of COVID-19 will not be fully understood until at least the end of 2022, however we’re well positioned financially and culturally to respond.”
“There will be opportunities that arise and we are investing for growth with he mindset and agility to continue to deliver for customers, shareholders and the community.”
The Bank also released results specifically for its New Zealand segment. Across the Tasman ANZ Bank made a profit of NZ$1.9 billion, up 39% on the previous year.
Like in Australia, record low interest rates spurred a credit binge and one in three first home buyers borrowed from ANZ.
The bank’s New Zealand boss Antonia Watson said heat had to be taken out of the housing market but its focus on responsible lending meant the bank’s credit quality stayed strong.
She also said the New Zealand economy had fared better than expected but had nonetheless released $115 million of credit impairment provisions the bank made previously into this year’s result.
ANZ shares are up nearly 50% in 12 months, but are only 10% higher over the past 2 years.