ANZ sees 8 percent earnings growth
By Geoff Hiscock
CNN Asia Business Editor
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ANZ chief executive John McFarlane says the 2003 operating environment is tougher
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SYDNEY, Australia (CNN) -- Australian banking group ANZ has reaffirmed its reduced earnings outlook for 2003, saying it is line with the market consensus of about 8 percent growth.
It said this was despite a one-off charge in its credit card issuing business of Aust.$27 million to cover loyalty program liabilities.
Investors welcomed the ANZ announcement Friday, pushing its shares 3.89 percent higher to A$16.57 by early afternoon. That compares with a fall of 0.02 percent for the broader market, measured by the S&P/ASX200.
ANZ, the No. 3 Australian bank by market capitalization behind NAB and CBA, said it had a better trading performance in December and January, following its previously announced weaker performance in October and November.
Last year ANZ said it would aim for 10 percent earnings per share growth in 2003, but then sounded a warning note at its annual general meeting in mid-December when it said this target would be a stretch.
Weaker first half
ANZ said Friday that while it now expects net profit to grow 8 percent in the year to September 2003, the cards problem meant the first half would be weaker than the second.
"We are operating in a tougher environment and the current market consensus on our 2003 earnings growth is a realistic challenge," ANZ chief executive John McFarlane said.
Last November, ANZ reported a 16 percent lift in net profit before one-off items of a record A$2.17 billion ($1.2 billion) for the year to September 30, 2002.
An 8 percent this year increase would indicate a net profit of about A$2.34 billion before any one-off items.
Earlier this month, second-ranked CBA said volatility in world equity markets had cut into its first-half result.
CBA, which follows a June 30 financial year, reported a 48 percent fall in interim net profit to A$622 million ($367 million) after taking a A$426 million writedown on the value of its Colonial First State funds management and life insurance business.
