ANZ earns some credit in Indonesia - South Korea

Business Asia, May 17, 1999

ANZ Bank, Australia's fourth-largest bank, has bought the credit card operation of Indonesia's PT Bank Papan Sejahtera, one of 38 banks put into receivership by the Indonesian Government in March.

ANZ has paid A$7 million for the credit card operation, which includes 47,000 card accounts and 60 staff members.

A shift out of stockbroking and trading to safer consumer lines paid off in the first half of 1998-99 for ANZ, and the bank is now committed to growth without big acquisitions.

Propelled by cost cuts and growth in its home markets, ANZ's net profit rose 14.6 per cent to A$716 million (US$473 million) for the first half of 1998-99 from the same half last year, coming in near the top end of market expectations.

"We are expecting an even stronger second half," said ANZ chairman Mr Charles Goode.

However, international profits, which include South Asia, the Middle East, Europe and the United States, fell 26 per cent to A$134 million in the six months to end March 31, from the same half last year.

Of Australian banks, ANZ has the strongest presence in Asia, but has been forced to curtail expansion plans in the aftermath of the region's crisis.