ANZ confident of good performance
Wellington reporter Business growth this year could be below that of 198485 but it would not prevent the ANZ Banking Group (NZ) from recording a good performance, the chairman, Mr Lyn Papps, told shareholders in Wellington yesterday. Speaking at the annual meeting, Mr Papps said he' expects the company to maintain its dividend rate of 29.5 per cent. He said that although economic activity had begun to ease, there were some positive trends, including a lower inflation rate and easing interest rates. He expects some further easing in interest rates during 1986. “However, we must say that the high wage growth flowing from the 1985-86 award round is of major concern,” he said. He welcomed a review of industrial relations, where productivity must take a sharper focus in wage setting. Deposit growth for the bank had been high, with the Government’s debt raising not yet resulting in a significant lower growth of the money supply. This was because deregulation allowed greater use of banking facilities and the bank’s success against other com-' petitors. Mr Papps supported freedom of entry to banking, but considered that entry standards should be high, with firm prudential oversight so that public and international confidence could be maintained. He hinted that the banks might vet new banking entrants into the clearing sys-
tem when he said that they would be allowed in “on terms which reflect the appropriate costs of the system and the need to maintain proper prudential standards.”
One shareholder, Mr Maurice Pitt, asked Mr Papps if the holding stake of the parent, at 74.8 per cent, was not too high, and if the company had considered issuing shares in lieu of dividends.
Mr Papps replied that it was “largely through the generosity” of the parent company that the public was able to invest in 25 per cent of the company. The parent wanted to maintain its holding. If shares in lieu of dividend were issued then the parent would have to go to the market to retain its percentage. In answer to a question on the wide margins between deposit and lending rates — 11.5 per cent compared with 25 per cent — Mr Papps said that was a matter of “supply and demand” and that shareholders should not worry about that.
Speaking on the question of the recent industrial action by the bank staff, Mr Papps said the settlement made was to combat the loss of staff. During the strike, management was forced to “man the trenches.”
During a motion on the re-election of directors, Mr S. D. Pasley was seconded by Mr Bill Shaw, the recently retired chief executive of the BNZ who has been a shareholder of the ANZ since it was floated in 1979.
Mr Papps told shareholders that an investment in 100 shares in 1979 when the company was floated would have cost $175. It was now worth $l6OO. The investor would have 525 shares and the dividend this year would be $6O.
“That’s not a bad capital gain,” said Mr Papps. Mr Papps said he refrained from “having a tilt” at the Prime Minister during his address to shareholders.
Last year there was a furore when it was reported that shareholders had voted the bank directors a 40 per cent fee increase. Mr Lange threatened regulations if directors’ fee increases were not limited to about the 8 per cent level of wage and salary earners for that wage round. Mr Papps gave Mr Lange an assurance on the matter and the fee increase was revised to 9.75 per cent. This year ANZ directors expect to receive an increase of nearly 20 per cent when the bank workers’ award is settled next month.
Mr Papps said he was tempted to have a go at Mr Lange and other members of Parliament in view of the 38 per cent average wage increase they voted themselves later in 1985.
As previously reported, ANZ Banking Group recorded a consolidated operating profit after tax of $78.2M — a 33 per cent increase on the previous year. The annual meeting approved the capitalisation of $23.4M for a one-for-four bonus issue and resolutions to amend the company’s articles of association.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19860115.2.174.9
Bibliographic details
Press, 15 January 1986, Page 28
Word Count
698ANZ confident of good performance Press, 15 January 1986, Page 28
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.