A.N.Z. Group net 13.4 p.c. lower

Press, Volume CXI, Issue 32803, 31 December 1971, Page 17

A.N.Z. Group net 13.4 p.c. lower

(N.Z.P. A.-Reuter —Copyright)

LONDON, December 29

The net profit of Australia and New Zealand Banking Group, Ltd, for the year to September 20, 1971, fell 13.4 per cent to $12,433,766, the chairman (Sir Alexander Ross) said in his annual report.

Profits from Esanda and;' the groups savings bank in'; Australia had been more than j i off-set by a fall in trading]l bank profit. ' I Esanda’s profit rose 19.3 1 per cent to $4,174,000 and the) savings bank by 23 per cent!

to $2,550,000. The trading bank profits fell $2,865,151 or 25.8 per cent to $8,237,692. “Monetary controls in Australia and New Zealand restricted our activities and adversely affected profitability. “Growth in total gross revenue was outweighed by large increases in costs, some three quarters of which were related to- staff. “Substantial indirect costs associated with the merger had a marked impact on the

profits,” Sir Alexander Ross said. Since the i merger of the A.N.Z. Bank, Ltd, and the English Scottish and Australian Bank, Ltd, 90 branch locations had

been merged or about half the full programme. The sale of shares in I.A.C. (Holdings), Ltd, produced a net surplus of $6,362,000 which has been credited to contingencies reserves and has not been included in the profits. The chairman said the disposal of this investment would allow the group to concentrate on the development of Esanda. A final dividend of 5 per cent is recommended making a total of 10 per cent for the year.