A.N.Z. sees controls continuing

Press, 17 December 1982, Page 12

A.N.Z. sees controls continuing

PA Wellington The A.N.Z. Banking Group (New Zealand). Ltd. invested more than $BO million, most of which was sourced overseas, in the three main Taranaki energy projects in 1982. the chairman (Mr L. M. Papps) said in his annual report. Mr Papps said that the bank had participated in the financing of all major energy projects underway in New Zealand, and in many large industrial developments. And despite the tight credit conditions. A.N.Z. was able to continue providing significant amounts of finance to farming, exporting and housing sectors. He said total A.N.Z. trading bank deposits increased from $1358 million in September, 1981, to $1521 million in September, 1982, and the monthly average market share of deposits increased during this period from 20.8 per cent to 22 per cent. Most of the growth occurred in term deposits, reflecting the competition for funds during the year. The strong deposit performance'

enabled the bank to maintain good fending growth. Total loans outstanding were $1426 million compared with $ll5l million a year earlier. Growth in term lending was particularly strong. As already reported, in the year ended September 30. net consolidated operating profit increased 21.3 per cent from $29,901,000 to $36,276,000 on shareholders' funds increased from $80,225,000 to $109,276,000 — 36.2 per cent. The earning rate on shareholders’ funds was down from 27.3 per cent to 33.4 per cent. Earnings per share were 68.8 c (56.3 c with the dividend per share 18c (18c - based on bonus increased capital). Australia and New Zealand Banking Group Ltd (Melbourne) hold 75 per cent of the total. There were 3125 employees (3024) and 207 banking officers (205 in 1981). The largest shareholders held 43,963,035 shares which is equal to 82.45 per cent of the total issued capital of 53,320.800 shares. Some main points from the report, in brief:—

• The wholly-owned finance subsidiary' UDC Group Holdings, Ltd contributed $5,760,000 to result an increase of 30.8 per cent. ® A.N.Z. Savings Bank. (N.Z.). Ltd. increased profit by 20.1 per cent to $3,560,000. • A.N.Z. Bankcard continued its good growth pattern. Cardholder outstandings were $4l million, an increase of 54 per cent over 1981. • By mid-1983 40 automatic telling machines would be operating. The first was introduced in October. • The bank's new headquarters building in Lambton Quay was expected to be finished by mid-1983. • Deposits with the savings bank declined during the year, and new home lending from this source was small. Looking ahead, Mr Papps said: “At present, prospects for growth in earnings during 1982-83 appear to be subdued, with the economy likely to remain in recession until at least mid-1983. “We expect that the Government will continue to maintain firm control on credit during 1982-83 and with tight bank liquidity, growth in lending will fall during the current financial year, and competition for deposits will remain, strong. “New Zealand • ’has a wealth of innovative talent and substantial indigenous resources, of which the energy sector is the most recent to gain prominence. We can realise this potential provided economic policies are directed at international competitiveness without undue support for industry and by suitably rewarding productivity.”