The underlying profit before provisions was NZ$1.3 billion, a 6% increase over the June 2006 period. Underlying cost-to-income ratio decreased to 43.3%, compared to 43.5% in the June 2006 period.
Revenue growth of 5% was driven by an 8% growth in the retail, rural and corporate businesses. This was partially offset by lower revenue contribution from the markets business in 2007, reflecting an exceptionally strong performance in the first half of 2006, and the unwind of structured finance transactions in 2007.
Net interest income growth reflected strong lending and deposit growth, with net loans and advances increasing by NZ$8.7 billion or 11% over June 2006, to NZ$85.1 billion and total deposits increased by NZ$2.9 billion or 5% over June 2006. Since June 2006, customer deposits grew by NZ$3.2 billion to NZ$43.6 billion, an increase of 8%.
ANZ National Bank CEO Graham Hodges said: Our underlying performance is the strongest we have seen for some time. Our market share has grown in a number of businesses and is holding up well across the board, which again supports our decision to maintain our multiple brand strategy, including our two leading banking brands.
Our focus over the past year or more has been to achieve strong revenue growth so we can continue to reinvest in our businesses and deliver for our customers. This strategy is working.
