by Eric Frykberg
That was a 44% increase on the 2020 financial year.
ANZ chief executive Antonia Watson credited record demand in the housing market, a stronger-than-expected economy and a significant reduction in provisions for liabilities the bank has set aside.
“The ability of many New Zealand businesses to learn from last year’s lockdowns and adapt, and continuing strong global demand for our exports, has meant we were able to release $115 million of the credit impairment provisions we’d made previously into this year’s result,” she said.
The New Zealand housing market, particularly in Auckland, had a strong year of growth and prices. Home lending by ANZ NZ increased $9.3 billion to $99 billion over the 12 months period, with one in three first home buyers borrowing from the bank.
“High house prices continue to be driven by historically low interest rates and more demand for houses than are available. This demand is reflected in our financial results,” Ms Watson said.
Customer deposits were up 3.5%in the year, and lending increased by 6.0%.
While expectations of an Official Cash Rate rise and rising funding costs saw interest rates eventually move off their historic lows, ANZ NZ’s focus on responsible lending has meant the bank’s credit quality remained strong, the bank said.
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