ANZ posts strong profit, Wealth struggles
Despite posting a solid profit of $5.36 billion, ANZ Banking Group's wealth management division struggled over the past year, according to its full year results posted on the Australian Securities Exchange.
ANZ Wealth's net profit after tax was 16 per cent lower year on year, sliding down from $412 million in September 2010 to $345 million in September 2011.
The group had largely attributed this decline to volatile market conditions, negative investor sentiment and increased insurance costs caused by catastrophic weather events.
Strong new business growth was apparently offset by adverse general insurance claims around the Queensland floods, Hurricane Yasi and New Zealand earthquakes.
Recent reports have shown that three out of the big four banks have had their wealth management divisions struggle over the past year, with BT Financial Group being the only one to have performed well.
Despite the profit decline, ANZ has announced plans for expanding the ANZ Wealth division in Australia.
"We are improving our Wealth proposition and enabling greater presence for the wealth management and insurance offerings within bank branches and online (eg, EasyProtect, 50+ Life)," the banking group stated.
ANZ's proposed final dividend of 76 cents per share fully franked brings the total dividend for the year to $1.40 per share, 11 per cent higher than for 2010.
Recommended for you
In this week’s episode of Relative Return Unplugged, AMP chief economist Shane Oliver joins the show to unravel the web of tariffs that US President Donald Trump launched on trading partners and take a look at the way global economies are likely to be impacted.
In this episode of Relative Return, host Laura Dew is joined by Andrew Lockhart, managing partner at Metrics Credit Partners, to discuss the attraction of real estate debt and why it can be a compelling option for portfolio diversification.
In this week’s episode of Relative Return Unplugged, AMP’s chief economist, Shane Oliver, joins us to break down Labor’s budget, focusing on its re-election strategy and cost-of-living support, and cautioning about the long-term impact of structural deficits, increased government spending, and potential risks to productivity growth.
In this episode of Relative Return, host Laura Dew chats with Mark Barnes, head of investment research, and Catherine Yoshimoto, director of product management, from FTSE Russell about markets in Donald Trump's second presidency and how US small caps are faring compared to their large-caps counterpart.
