New Zealand
David Hisco
Chief Executive Officer, New Zealand
Business profile
2012 has been a year of significant change for ANZ in New Zealand. In September, we announced that after almost 10 years of operating ANZ and The National Bank in New Zealand, the two brands would progressively be brought together as ANZ.
This major change will combine the best of both banks – ANZ’s strength and presence across Asia Pacific and The National Bank’s reputation for customer service. It will be supported by a $100 million investment over the next two years to ensure ANZ has a well positioned and attractive branch network in current and new communities.
We have also continued to focus on making things simpler for customers and driving efficiencies by streamlining our head office management and processes. This has included completing the transition to one management structure across the ANZ and The National Bank, one customer approvals process and moving to one set of products and one, The National Bank’s, technology system.
Business highlights
- Delivered a good financial performance, with profit up 12%.
- Achieved Retail market share gains, particularly in mortgages in the larger and growing Auckland region, with around one in three New Zealanders now choosing ANZ for their home loan.
- Made significant progress with a simplification program to reduce complexity for our customers and contribute to improved efficiency.
- Completed preparations for the adoption of a single core banking system which was completed in October 2012.
- Established a $120 million start-up package to help young farmers.
- Launched a mobile banking application for Android smartphones, building on the success of the ANZ goMoney™ banking application which, together, have seen 100,000 customers perform an average $2.5 million transactions a month.
- Continued to support the New Zealand community including sponsorship of the New Zealand Olympic team at London 2012.
- Committed up to $500 million in new discounted mortgage lending to customers impacted by the Canterbury earthquakes.
- Launched a New Zealand MoneyMinded pilot program teaching savings and money management skills.
Our progress in supporting our customers was recognised through a number of awards during 2012.
- OnePath was named the Morningstar Fund Manager of the Year and KiwiSaver Manager of the Year.
- Our Institutional business received the Institute of Finance Professionals New Zealand Bank of the Year Award.
- The National Bank was named the Best Agribusiness Bank New Zealand by CANSTAR.
| 2012 | 2011 | Movt (%) | |
|---|---|---|---|
| Operating income | 2,097 | 2,017 | 4 |
| Operating expenses | (921) | (906) | 2 |
| Profit before credit impairment and income tax | 1,176 | 1,111 | 6 |
| Provision for credit impairment | (148) | (166) | (11) |
| Profit before income tax | 1,028 | 945 | 9 |
| Income tax expense and non-controlling interest | (285) | (283) | 1 |
| Profit after tax | 743 | 662 | 12 |
| Total assets | 71,816 | 69,072 | 4 |
| Contribution to group earnings | 12% | 12% | – |
| 2012 | 2011 | |
|---|---|---|
| Retail customer satisfaction[3] | 89% | 89% |
| Total employees (FTE)[4] | 7,841 | 8,195 |
| Employee engagement | 74% | 70% |
| Total Women in Management[5] | 35% | 35% |
| Volunteering hours[6] | 18,317 | 16,720 |
| Community investment[6] ($m) | 2.73 | 2.46 |
| GHG emissions[7] (tonnes CO2(e) Paper4 (tonnes per FTE)) | 14,009 | 11,164 |
| Paper[8] (tonnes per FTE) | 0.16 | 0.13 |
New Zealand simplification project: building New Zealand’s best bank
ANZ and the National Bank combine
ANZ New Zealand, which traces its roots back to early European settlement in 1840, bought The National Bank in 2003 and ran both brands for almost 10 years. From October 2012 we started to combine the brands into one. ANZ.
This was a logical and important next step after progressively reducing duplication and simplifying our New Zealand business by creating one management structure, one approval process for customers, one set of products and one technology platform.
“We use the ANZ brand in 32 markets globally and the licence agreement for the National Bank logo expires in 2014, so it makes sense for us to make this decision. We want to build New Zealand’s best bank and this will help us do it,” said CEO New Zealand, David Hisco.
The move to one brand further strengthens ANZ in the New Zealand market, making it easier for the bank to connect customers across its global network.
ANZ is New Zealand’s largest financial services provider with more branches and ATMs than any other bank and is the country’s first major bank to offer trade deals in Renminbi – making it easier for New Zealand firms to do business with China.