Major bank announces $2.9 billion half-year profit

by Mackenzie McCarty30 Apr 2013

ANZ has announced an above-expected statutory half-year profit after tax of 2.9bn, up 7% compared to the previous six-month period.

Underlying cash profit, the bank's preferred measure, jumped 10% to $3.18 billion, which ANZ CEO, Mike Smith, says demonstrates the major bank’s 'consistent, well-diversified revenue growth' supported by strong productivity and capital management outcomes.

The bank says earnings diversification is improving, with 20% of revenue derived from outside Australia and New Zealand and the report indicates that ANZ plans to focus heavily on its international network over the next 12 months.

“Since 2008 we have worked hard to connect ANZ shareholders and customers to the significant opportunities being created by Asia’s fast-growing economies while building on our traditional strengths in Australia, New Zealand and the Pacific,” says Smith.

“This half saw us strengthen our franchises in Asia Pacific, Australia and New Zealand, hold Group margins steady, produce a lower cost-to-income ratio and achieve a higher return on equity while further strengthening our capital position. Shareholders are benefiting from these outcomes.”

However, Smith says that while provisions were ‘slightly better’ than expected and the credit outlook remains stable, ANZ believes on-going stress in ‘certain parts of the economy’ warrant a cautious outlook.

 “This result is further evidence that ANZ is consistently delivering on its promises to its shareholders and to its customers. ANZ is well positioned going into the second half with good momentum on growth opportunities, on costs and on capital management and I am confident about the year as a whole.”

ANZ’s retail business, which includes mortgages, delivered above system growth in mortgages and deposits, continuing the trend of the past three years and this has largely been self-funded.


  • by Country Broker 30/04/2013 11:10:20 AM

    Just a pity the brokers who send them deal have to put up with assessors from Bangalore who do not fully understand the loan approval conditions needed and are just plain rude and cannot half the time be understood , resulting in brokers having to refer decisions to their BDM for reassessment or amendment to approvals. Just frustationg . Good Product , quick services , pity about Bangalore ! I think the brokers should have better .

  • by Chris C 30/04/2013 12:05:43 PM

    As seen by its shareholders, ANZ has worked very well to only take on multiple customer accounts / only profitable positions / maintain their dominance of dictating how much they will pay introducers ie. lower commissions while they increase their base rate that match other Lenders lower base rate and higher commissions (same end cost to customer) .... very well done ANZ but if you are an introducer or a customer, you may think you have been 'gauged' as they say....hence other fairer play Lenders are getting my business introductions for the time being and they are still making excellent profits.

  • by David 30/04/2013 12:07:15 PM

    Wow - a Bank profit announcement that doesn't finish with a comment about there being further pressure on cost of funds. The tide may be turning finally.