Australia's ANZ bank reports 21 percent fall in earningsAustralia's ANZ ANZ Australia and New Zealand ANZ Australia and New Zealand Banking Group Limited ANZ Air New Zealand (NZ national airline) Bank on Thursday Thursday: see week. posted a 21 percent fall in annual net profit, its first drop in a decade, after it was slammed by growing bad debts and turmoil in global financial markets. The bank, which was positioning itself as a major power in Asian banking, said net profit for the year ended September 30 stood at 3.32 billion dollars (2.22 billion US), down 21 percent from its 4.18 billion a year earlier. Australia's fourth biggest bank's cash profit, adjusted for non-core items, was off 23 percent over the previous year at 3.03 billion, while credit impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges on lending jumped fourfold fourfold Adjective 1. having four times as many or as much 2. composed of four parts Adverb by four times as many or as much Adj. 1. to 1.95 billion dollars. Gross non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. also rose sharply to 1.75 billion dollars from 666 million in fiscal 2007. "The growth in credit losses is disappointing but our ability to manage and absorb this shows a high level of resilience resilience (r  ·zilˑ·yens),n ," ANZ Chief Executive Mike Smith, said in a statement. But while acknowledging that global market conditions remained "difficult and unpredictable", Smith said ANZ was "looking pretty good now" and could look forward to profit growth in the new fiscal year if financial markets settled. "The underlying performance of our business is sound," Smith said. "We are positioned well and will continue to take the necessary action to ensure ANZ remains one of the world's leading banks with a strong credit rating." "ANZ is well positioned to manage this cycle, to continue to invest and maximise the opportunities which arise," he added. "If everything stabilises, and we get back on track, then I expect to see an increase in earnings," he told reporters later. In fiscal 2008, ANZ's revenue rose four percent to 11.5 billion dollars and net interest income rose eight percent to 7.85 billion, while other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. slipped two percent to 3.65 billion. Despite the profit drop, ANZ maintained its final dividend at 0.74 dollars per share, flat from a year earlier. The bank last year posted a record annual net profit. ANZ's share price was down 5.53 percent at 17.95. 
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