ANZ Net Profit Decrease By 20%

European banking industry, the United States (U.S.), and Australia experienced a decline. In Australia, the perceived decline in profits Australia and New Zealand Banking Group Ltd (ANZ). Australia's third-largest bank in terms of assets, in the last three months in 2012 recorded a net profit of 20% compared to same period previous year.

In the financial statements, net income amounted to only ANZ A $ 1.36 billion, or U.S. $ 1.41 billion, down from the previous year to reach A $ 1.7 billion. The decrease in profit margins due to trimming business in Australia and in other countries.

ANZ became the focus of banks in developing business in Asia, compared to four other Australian banks. Kangaroo State Bank is risking business in Asia's economic growth after the country's mortgage market is moved to the weakest level since 1977.

Simon Burge, Chief Investment Asset Management Pty Ltd, said the pressure on the margins of international businesses and institutions to be the main point decline in net profit ANZ. "ANZ likely re-focus to maintain margins in the future," he said.

Business competition makes ANZ lower financing margins and reduce their costs. Under Chief Executive Officer (CEO) Michael Smith, ANZ has reduced 1,000 employees in the past year.

Up in the first semester

In a report issued on Friday (15/2), ANZ said bank lending rates have not changed since September 2012. However, first-half 2013 profit is expected to go up. Bleary-eyed driver of profit growth increased revenue and decreased operating expenses. "The cost of international banks and corporations will be better controlled, although margins remain under pressure," Smith said.

ANZ profit fell Although, not all Australian banks experienced a decline. Commonwealth Bank of Australia on February 13, 2013, reported a rise in first-half profit by 1%. Meanwhile, National Australia Bank Ltd also posted a 3.6% gain in the first fiscal year 2012 which ended December 2012.

Formerly a global investment bank based in Europe and the U.S. are also experiencing regulatory pressure and cost cutting operasionaldi respective countries. They also lost market share in developing countries, because of competition from domestic investment firm smaller.

According to Freeman & Co., among the securities company, Credit Suisse Group AG, Morgan Stanley and Citigroup Inc. dropped the biggest market share in developing countries. U.S. investment markets and European financial institutions in Latin America, Central Asia, China, India, Russia, and Eastern Europe, falling from 69% in 2005 to 43% in 2012.