ANZ checked by recession

Press, 17 November 1982, Page 43

ANZ checked by recession

PA Melbourne Higher wages and costs associated with Australia’s recession-blighted economy cut into profits of the ANZ Banking Group in the past financial year. Yesterday the board reported a profit three per cent higher at sAustlBo.4 million in the year to September 30, 1982, ' compared with sAustl7s.4 million the previous 12 months. Only a strong performance by the New Zealand division and a growth spurt by the ESANDA finance subsidiary prevented the profit result falling short of the year before. The New Zealand operation increased profit to $20.5 million from $l6 million and ESANDA produced $37.9 million compared with the previous year’s $33.8 million

profit. But directors noted that trading bank, and finance company profits had been decreased by the need to increase provision for ' bad and doubtful debts—absorbing $ll million which would otherwise have appeared as profits. “Other costs' generally reflect higher personnel expenses and the.flow-on effect of the higher leyel of . inflation which has persisted,” the board said. ’ Group income increased 37 per cent to $2.7 billion, tax provision ' fell’’ to. million from $143.4 million as a result of the-effect on tax of the higher specific provisions mentioned above. The annual distribution of 28c a share is unchanged, payable on January 27 to shareholders registered by January 5.