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.