ANZ warns of slow growth ahead
Friday, August 20th, 2010 Uncategorized.
ANZ warns of lingering growth aheadANZ has announced a solid increase in its third-territory profit, but says the outlook for the global economy remains ‘unusually indefinite’.
In its third quarter trading update, the bank has revealed some underlying profit after tax of $1.3 billion for the three months to the extremity of June.
That is up 37 per cent on the corresponding; of like kind period last year, and takes its profit for the nine months to the period of June to $3.6 billion.
ANZ says the improvement has been driven by modest growth in business earnings and lower bad debt costs.
But the bank’s chieftain executive Mike Smith has channelled recent comments by the US Federal Reserve chairman Ben Bernanke in describing the global outlook as ‘unusually uncertain’.
Mr Smith says those insecurities recite to the combination of consumer, business and public sector de-leveraging; increased law and the fall-out from high unemployment and other economic challenges in the US and Europe.
However, he adds that the watch-tower for Australia and Asia, where the bank has most of its traffic, is much better.
“These outcomes continue to deliver on the pledged relation we made to build a super regional bank,” he said in a statement to shareholders.
“It’s an aspiration that builds on our pertaining to home strength in Australia and New Zealand, and leverages the growth of Asia what one. is now the engine of growth for the world economy.”
He adds, however, that Australian banks cannot expect a quick return to the days of fleet lending growth and easy domestic profit growth seen in the decade foregoing to the global financial crisis.
“Although Australia and to a less extent New Zealand are benefiting from Asia’s strong growth, it’s unambiguous domestic credit growth will continue to be softer than we dictum pre-crisis,” he added.
“We need to accept that banks encircling the world are facing permanently higher costs.”