Australia and New Zealand Bank has confirmed that trading for the first four months and expectations for 2007 are on target.
ANZ reported a strong revenue growth for the four months ending January 31, 2007, which reached the upper end of its expanded target range of 7% to 10%. Meanwhile, expense growth was in line with original expectations, towards the upper end of the 5% to 7% target range.
The bank’s personal division has continued to do well, as has its institutional and New Zealand operations, given weaker New Zealand markets earnings. The Asia network business is also performing well, with revenue growth tracking at more than twice the group average.
ANZ CEO John McFarlane said: ANZ continues to perform well. Revenues are now tracking at record high growth rates, partly as a result of higher investment spending. It is pleasing to see us achieving what many thought to be an ambitious target and we are not taking our foot off the pedal.
ANZ continues to expect higher losses in 2007, which will result from changes in the mix of its credit card portfolio, fewer recoveries compared to 2006 and more normal levels of corporate losses, although, overall, they have not yet reached the level forecast for the year as a whole.