Annual/Concise Report/Top 20
Document date:
Tue 14 Nov 2000
Published:
Tue 14 Nov 2000 00:00:00
Document No:
169958
Document part:
A
Market Flag:
N
Classification:
AUSTRALIA & NEW ZEALAND BANKING GROUP LI 2000-11-14 ASX-SIGNAL-G HOMEX - Melbourne +++++++++++++++++++++++++ CHAIRMAN'S LETTER ANZ has again delivered on our promises to shareholders in the year ended 30 September 2000 profit rose 15% to $1,703m, a new record for the company. Earnings per share grew by 15% to exceed $1.00 for the first time and the dividend was increased by 8 cents to 64 cents per share and was fully franked. It is also pleasing to see this performance reflected in the share price, which rose in excess of 25% during the year and recorded all time highs. Management and staff are to be complimented for these achievements which were made in a rapidly changing and sometimes volatile world. On 27 April we announced the sale of the Grindlays business to Standard Chartered Bank. The transaction was completed on 31 July with ANZ receiving a total consideration of $2.3b including a $1.2b premium over book value. With the changes in world banking, the sale of Grindlays to Standard Chartered Bank enables ANZ to receive value today from a buyer which specialises in emerging markets banking. While we retain the liability for the dispute with the National Housing Bank of India, even after provision for this and other items, we realised over $400m net profit from the sale. The sale of Grindlays allowed us in one move to "simplify and focus" our international network in line with the strategy outlined in last years annual report. It also represents a substantial step in our program to reposition ANZ as a more balanced organisation. In conjunction with the announcement of the sale of Grindlays we also announced a $1b on market share buyback to enhance ANZ's capital management. As at 30 September this buyback was approximately 50% complete. Recently in October we announced that participation in the Dividend Reinvestment Plan and Bonus Option Plan would be capped at a maximum of 50,000 share for each shareholder as a further capital management initiative. In July we outlined further details of our strategy which focuses on the themes of specialisation, eTransformation and growth. The establishment of individual customer businesses to focus on general banking, wealth management and small business customers underscores our commitment to improving the customer experience. This strategy is discussed further in the CEO's strategic overview and the business commentaries. Our focus is now shifting to the application of eCommerce with greater penetration of our customer base than our peers and first mover advantage in business to business eCommerce. The announcement of the Asian internet banking joint venture with Oversea Chinese Banking Corporation of Singapore is an important building block in our plans to leverage our eCommerce expertise in regional markets. In terms of outlook for the 2001 year, while there is some prospect of further interest rate rises and a moderately slowing economy, ANZ has a strong financial foundation, a clear strategy and good momentum in key areas to continue to deliver shareholder value. C Goode CHAIRMAN MORE TO FOLLOW