As expected the ANZ earned a net cash profit of $7.12 billion, a record, and up 10% from the year before.
The result was sort of expected after it had inadvertently revealed some of the details of the increases in earnings from its various divisions when it released a spreadsheet to the market last week.
The ANZ lifted final dividend to 95 cents a share from 91 cents, and with the higher interim, will pay a total of $1.78 a share for the 2013-14 financial year, up from $1.64 a share the year before.
Full-year net profit increased 15% to $7.27 billion, while operating income rose 8%to $20.054 billion.
Once again the higher result was mostly driven by a fall in bad debt provisions – down 17% for the full year to $989 million.
Customer deposits rose 9.5% over the year, while net loans and advances were up 8%.
The bank’s cost to income ratio (adjusted for asset sales) fell to 44.3% (or 44.3 cents in every dollar of income).
Net interest margin for the year fell to 2.12 cents in the dollar from 2.15 cents.
The NAB’s fell under 2 cents in the dollar to 1.94 for the year from 2.03 cents the year before.
The ANZ’s Australian banking business lifted earnings 7% to more than $3 billion for the first time, but its international and institutional baking arm saw earnings rise 11% to more than $2.6 billion.
NZ earnings topped the $1 billion for the first time at $1.077 billion, a rise of 22%, and global wealth boosted profit 11% to $525 million.
ANZ YTD – ANZ posts record net cash $7.1bn profit
Macquarie (MQG) has also boosted interim dividend, this time by a massive 30% after reporting a 35% jump in first-half profit and repeating previous guidance that the full year result will be slightly above the 2013-14 result of $1.265 billion.
The investment bank and funds manager reported net profit of $678 million for the six months to September 30, up from $501 million in the first half of the 2013-14 financial year.
An interim dividend of $1.30 a share was declared, up from the $1 a share paid for the first half of the previous financial year.
Macquarie Funds Group, which managed $423 billion, was the biggest contributor to profit.
Net income at the fund-management unit climbed 57% to $785 million, according to Macquarie report.
MQG YTD – Macquarie lifts profit 35 per cent
Both results are far better than the figures produced by the National Australia Bank (NAB) on Thursday, even before the impairments.
The NAB could only boost revenue 1.9% (against the 8% reported by the ANZ) and operating was steady, especially in its key Australian banking division where the ANZ say an 8% rise in earnings.
The NAB paid out a final dividend of 99 cents a share to keep shareholders happy. That’s a payout ratio of 91%, against the sub 80% level from the ANZ.
