However, total home loans originated by advisers in the year ended September fell to 59% from 61%, according to its parent bank’s slides.
Nevertheless, advisers accounted for 53% of ANZ’s mortgage portfolio at Sept 30, up from 52% a year earlier and 50% in September 2023.
The bank’s brand general disclosure statement, which covers all NZ activity, showed the bank’s net new mortgage lending accelerated to $2.6 billion in the six months ended September from $2.28 billion in the six months ended March, taking total net new lending for the year to $4.88 billion, up from $3.68 billion the previous year.
The bank’s statutory net profit for the year ended Sept 30 rose to $2.58 billion from $2.13 billion the previous year but its parent’s net profit fell 10% to A$5.89 billion.
The NZ result included a write-back of $25 million of previous charges against profit for bad debts compared with a charge of $44 million the previous year.
“It has taken NZ longer than hoped to recover from the post-covid rebalancing, but there are now signs the nation’s economy is finally picking up,” said chief executive Antonia Watson in a statement.
“Global uncertainty hasn’t helped but we expect lower inflation and falling interest rates to flow through and boost the recovery as we head into the new year.”
The Reserve Bank has cut its official cash rate from 5.5% to 2.5% since August last year.
“Confidence is returning, particularly in regional areas. However, Auckland and Wellington, because of the mix of their economies, will take longer to feel the improvement,” Watson said.
ANZ’s costs rose faster than its earnings in the latest year “but the results demonstrated the bank remained well-managed, delivering a solid performance,” she said.
Revenue was up 2% but expenses were up 3% during the year, while customer deposits rose 5% and gross loans were up 4%. Funds under management rose 6% to $419 million.
Watson said more than 40% of home loan customers are ahead on payments by at least six months and more than 45% have savings buffers of $5,000 or more.
Net interest margin (NIM) rose 3 basis points to 2.60% “as improved home lending margins were partially offset by lower deposit margins.” The Australian parent’s group NIM fell 4bp to 1.54% in the year.
The parent’s slides showed ANZ’s average home loan rose to $203,000 at Sept 30 from $200,000 a year earlier and that the number of customers paying interest only eased to 10% of the portfolio from 11%.
Home lending as a percentage of the portfolio held steady at 73% with 43% of home loans being on Auckland properties. The bank said its market share eased to 30% at Sept 30 from 30.4% a year earlier.
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