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ANZ's full-year profit slides 24 percent to 4.37 bln USD

CNC
Added On November 3, 2016

 SYDNEY, Nov. 3 (Xinhua) -- The Australia New Zealand (ANZ) Banking Group full-year net profit ending September 30 fell by 24 percent to 5.7 billion Australian dollars (4.37 billion U.S. dollars) due to rising cost incurred from restructuring charges, and other efforts taken to further streamline its businesses.

 
Australia's fourth largest bank by market capitalisation also recorded a decline in its cash profit to 5.9 billion Australian dollars (4.53 billion U.S. dollars), down 18 percent from 7.2 billion Australian dollars (5.5 billion U.S. dollars) it made the previous year.
 
In a statement to the Australian Securities Exchange Ltd (ASX) on Thursday the bank said the results includes the 1.1 billion Australian dollars (84 million U.S. dollars) of after tax charges, including restructuring and cost of software.
 
"We are pleased with the initial progress that has been made this year in reshaping our strategy and setting ANZ on a path towards a sustainable improvement in customer outcomes and shareholders returns," ANZ Chief Executive Officer Shayne Elliott said.
 
"We have a clear strategy and a consistent focus on the simplification of our business and actively rebalancing our portfolio. Importantly we have the organisation aligned and we have established momentum in relation to the work that still needs to be done," he said.
 
The bank also hinted on the possibility of disposing its wealth businesses in Australia and New Zealand just days after it announced the sale of its retail and wealth management businesses in five Asian countries.
 
"While the distribution of high quality wealth products and services should remain a core component of the group's overall customer proposition, ANZ does not need to be a manufacturer of life and investments products," the bank.
 
"ANZ is exploring a range of possible strategic and capital market options that will maintain strong outcomes from customers. This includes the possible sale of the life insurance, advice and superannuation and investments businesses in Australia. ANZ will pursue a discipline approach to this process and will update the market as appropriate," it said.
 
ANZ declared a final dividend of 80 cents (0.61 U.S. cents), fully franked which is flat on the half-year payout but down from 95 cents (0.73 U.S. cents) 12 months ago.
 
CMC Markets chief market strategist Michael McCarthy said the the losses incurred by ANZ comes from write downs mainly associated with discontinued businesses.
 
"These losses were previously flagged, potentially ameliorating the pressure on ANZ's share price," he said.
 
At 1447 local time (AEDT), ANZ shares was up 0.63 percent, or 0.17 cents at 27.35 Australian dollars (20.95 U.S. dollars).
 
Editor: ying