Falling short of aspirations, ANZ still grows in Asia
ANZ reported fair progress across a range of profit and product metrics in its Asian business, though precisely how much progress can be tough to tell.The bank put the average annual rate of growth in revenue from Asia over the four years to September 2011 at 37 per cent, and the average annual growth in profit over the period at 31 per cent.ANZ said it earned a net profit from Asia of US$739 million over the year, up from US$617 million in 2010.The bank earned 12.8 per cent of its underlying profit from Asia in 2011, which was a slight decrease from 13.4 per cent in 2010. Asia accounted for 15 per cent of group revenue.In late 2007, ANZ set itself an aspirational target of earning 20 per cent of its profits from Asia by 2012, a target the bank is unlikely to meet with just one year to go.Nevertheless, some metrics are rising fast.ANZ's CEO, Mike Smith, said that lending increased 44 per cent to US$38 billion over the year, while customer deposits were up 40 per cent to US$63 billion, or around a third of the deposit book of the bank in Australia.Another metric that appealed to management was the rise of 25 per cent in the number of "active customers in the institutional and commercial business".Smith said that revenue growth in key overseas markets was "very significant" - up 115 per cent in India, up 82 per cent in China and up 43 per cent in Indonesia, though the base lines for these numbers (and many other product groups featured in the profit pack) are not available.Expenses for the business in Asia grew by 26 per cent over the full year, though by only nine per cent in the half.