ANZ Financial Performance Overview
SECTION 4
Treasury - adversely impacted by a tough interest rate environment
Australian & New Zealand Mismatch
$mAUD
pts
200
Total Income
50
(LHS)
•
•
Over the last three halves Group
Treasury's earnings have been in
decline, with further decreases
expected in 2004.
Group Treasury mismatch income is a
function of the steepness of the yield
curve (ie. rolling avg 3yr assets funded
at rolling 90 days), which has been
declining.
• The current interest rate environment
is not one for building risk.
• The benign global interest rate
•
environment, with term rates falling to
historical lows and flattening yield
curves, has limited investment
opportunities.
As such net ageing has occurred within
the mismatch portfolio over recent
periods.
• The Australian & New Zealand
80
70
60
60
40
40
30
30
20
20
10
10
-10
mismatch portfolios remain well placed
to benefit from a tightening interest
rate cycle.
-20
Avg Income
Aus Yield Spread: Rolling 3
year avg rate Vs Rolling 90 150
day avg rate (RHS)
100
50
50
1H00 2H00 1H01 2H01 1H02 2H02 1H03 2H03 1H04 2H04
26
26
-50
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