Pacific

Islands

Monthly

Business

Island figures 'disappointing’

By Davendra Sharma

AUSTRALIA New Zealand Bank ing Group was disappointed with figures from the Pacific Islands in the last financial year and it expects the outlook to stay gloomy in 1992.

It blamed slow economic growth in Papua New Guinea and Fiji, where ANZ has a substantial stronghold, for the performances last year.

The Islands, however, form part of ANZ’s future expansion in the broad Asia-Pacific region, said ANZ chief executive Will Bailey.

He said the bank would expand in the region as international trade grew there.

“Our strategic view is rooted in the belief that Australasia’s future is inextricably bound with the Asia-Pacific region; and as regional trade and investment con tinue to grow, ANZ’s role as a banker to business and trade will increasingly demand an enhanced presence in Asia,” be said in his 1991 report.

ANZ has in recent years acquired new businesses in the Pacific Islands; notably in Fiji where it bought out the Bank of Mew Zealand and Papua New Guinea. It ilso took a 75 per cent stake in the Bank Western Samoa for 5U59.009 million md reaped a profit of SUSI.OI million Tom it last year.

“The acquisitions in Papua New Guinea, Fiji and Western Samoa are now ntegrated and have begun to contribute :o a pleasing level of performance,” the •eport said.

Bailey said the bank’s move to a more •egional focus “rather than a compre lensive global strategy is an organic and

ogical development.

“We seek to build business in markets vhere we can bring some competitive idvantage into play; and we see this as Deing most likely in the rapidly develop ng Asia-Pacific region.” ANZ intends to provide a bridge for traders into the •egion’s principal business and trade narkets, the report said.

It did not divulge detailed results of

individual operations in the Pacific but made particular mention of Fiji and Papua New Guinea.

While recession in Australia and New Zealand contributed chiefly to a 35.5 per cent slump in profits last year, the decline in economic growth in Fiji and Papua New Guinea also had a bearing.

Said the report: “Economic conditions in Papua New Guinea and signs of a slower economy in Fiji indicate that opportunities in these countries may be temporarily restrained in 1992.”

ANZ’s profits in Australia and New Zealand dropped to 5U577.62 million, while that of Fiji and ANZ’s other overseas branches to SUS 133.44 million.

ANZ profit stood at 5U5211.12 million, a hefty profit plunge of 35.5 per cent to the year to September 30. A driving force behind the decline was the bank’s decision to write off bad debts.

ANZ’s larger Pacific Islands interests are in Papua New Guinea and Fiji though it also operates in Vanuatu, the Cook Islands, the Solomon Islands and Western Samoa. It has 10 outlets in PNG where it employs 414 staff. In other Pacific Islands it has 62 branches and 1425 employees. Dql

Bailey: Islands still part of growth plan