ANZ optimistic

Press, 21 December 1978, Page 18

ANZ optimistic

I Commercial J

NZPA Sydney The Australian and New Zealand Banking Group, Ltd, is looking to another year of rapid growth despite its re-| nervations about Australia's! economy and interest rate levels. In the annua! report the! bank's chairman (Sir lan McLennan) and managingdirector (Mr M.' Brunckhorst), predicted that some of the factors that led to 1978's 40.5 per cent increase in earnings would recur in the current year. •‘ln particular, the group will be striving to direct an even greater proportion of total assets into loans and advances and to further improve our cost control procedures.” they said. “In addition we can expect continued expansion of lending for housing by the

/ group's savings bank in Australia. 1 However, it would be di- , fficult to maintain interest ■ rate margins, they said. Australian lending rates had been reduced by both ’ trading and savings banks, ■ and the extent of which bori rowing rates would be reduced to compensate would on the market forces. ' “Another major influence • on the bank’s results in the . period ahead will be the : state of the economies of 1 the main countries where we • conduct business and here 1 again the outlook is uncertain.” they warned. > “In Australia there are many signs of improving i economic activity and modI est growth in real terms is • expected. “However, difficult conditions seem likely to persist ■ for some time. Present gov- ’ ernment policies aimed at further reducing inflation,

-Irestoring stability to the balance of payments and . | encouraging capital inti vestment are seen to be setting the basis for an improved economic climate in ‘ the longer term. Other points in the direct- ’ ors’ report include: The in- ' crease in Australian equity jiin the group from 50.8 per cent to 62.4 per cent over ; the year: A drop in staff ; from 21,179 to 20,734: The j formation of an audit comr mittee by the board: and an J increase from 601 to 671 in ; the branches on the comput- - i er ’