Australia and New Zealand Banking Group announced an 18% rise in full-year cash profit to A$6.938bn on Thursday, but warned it was becoming more challenging to deliver revenue growth.
The shares, however, fell after a rather disappointing outlook in which chief executive Shayne Elliot said revenues were expected to be constrained next year due to competition, regulatory pressure and tax issues.
- Cash profit rises 18% to A$6.938bn
- Profit before credit impairment tax up 9% at A$11.041bn
- Earnings per share up 17% at 237.1 cents
- Return on equity rises by 159 basis points to 11.9%
- Net interest margin falls 8 basis points to 1.99%
- Final dividend of 80 cents per share
ANZ chief executive Shayne Elliott said : “This is a good result which demonstrates further progress in becoming a better balanced, better capitalised, more efficient bank."
On the 2018 outlook, he said: "“In 2018 we expect the revenue growth environment for banking will continue to be constrained as a result of intense competition and the effect of regulation including a full year of impact of the Australian bank tax.
“These conditions aren’t new to us and in this environment, our strategy remains to be ahead of the game by focussing on only those areas where we can deliver exceptional customer outcomes, solve real customer needs and in doing so make a decent return for our shareholders."
Due to the outlook, the shares ended the trading session 1.2% lower at A$30.13.