ANZ elbows into $1 billion club
By Jeff Turnbull
MELBOURNE, April 26 AAP - Consumer advocates and the financial sector union today calledon ANZ Banking Group Ltd to share some of its $1 billion half year profit with customersand staff.
The bank lifted its net earnings for the six months to March 31, 2002 by 17.3 per centto $1.05 billion.
Credit cards led the way for the bank with the consumer finance division nearly doublingits first half net profit to $79 million.
The collapse of Ansett caused a rush on ANZ credit cards, with its Qantas brand andreward points.
The Australian Consumers' Association (ACA) said today the profits should go towardslowering credit card interest rates and opening new branches.
The ACA's finance policy officer Catherine Wolthuizen said it was time the bank madegood its promises of better services and more affordable banking.
"It has reached out to the disaffected customers of its competitors, but must meetthe needs of its existing customers, many of whom continue to pay high fees or sufferlack of accessible services," she said.
Earlier this month, ANZ chief executive John McFarlane offered to buy the 56 ruralbanks that rival National Australia Bank Ltd intends closing this year.
NAB knocked back the offer.
Financial Sector Union national secretary Tony Beck said his union will renew its claimsfor better wages, better working conditions and more staff at ANZ banks in the wake ofthe massive profit result.
"It is a substantial result, taking into account (the fact that) this bank has halvedits workforce over the past seven to eight years, which is a phenomenal staff reductionof around 14,200," Mr Beck said.
"Over the same period it has closed 636 banks and increased fees and charges with amassive attack on costs and services.
"It demonstrates to us they can afford to meet our reasonable claims for staff andrelease pressure on our members."
Ms Wolthuizen said ANZ had one of the most expensive credit cards in the Australian market.
"Its 17.5 per cent interest rate is well above that offered by other banks and is drivingthe skyrocketing growth in Consumer Finance," she said.
She said with official interest rates at historic lows, ANZ can lower credit card ratesto bring them in line with those of other unsecured credit.
Ms Wolthuizen added that ANZ, along with the other major banks, should also drop itsopposition to the Reserve Bank of Australia's proposed credit card reforms which wouldcut the wholesale interchange fee that is levied for issuing and processing cards andon transactions.
"The ANZ has been one of the most vocal opponents of these reforms, anxious to protectthe revenue this and other fees contribute to its soaring non-interest income, up 14 percent to over $1.4 billion," Ms Wolthuizen said.
"This is the seventh profit rise in a row for the ANZ.
"The promised urgent and tangible action to put customers first must translate to realreturns for customers and communities, not just shareholders."
By 1335 AEST, ANZ shares had surged 52 cents to $19.49, after hitting an intra dayrecord high of $19.53.
Other banks' shares also were higher with the Commonwealth Bank of Australia rising36 cents to $32.85, National Australia Bank 48 cents ahead at $35.48 and Westpac 25 centshigher at $16.48.
AAP jt/sh
KEYWORD: ANZ FRONTER
No comments:
Post a Comment