Australia and New Zealand Banking Group on Tuesday reported half-year net profit of Aus$2.94 billion (US$3.04 billion) aided by a strong Asian showing.
Australia’s third largest bank by market value said the result for the six months to March was up one percent on the same period last year.
However the bank’s preferred measure of underlying profit, stripping out one-off costs and gains, climbed 10 percent over the same period last year to Aus$3.2 billion.
Chief executive Mike Smith said: “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.
“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.”
Melbourne-based ANZ will raise the interim dividend by 11 percent to 73 cents a share.
ANZ shares rose 4.7 four percent to Aus$31.52 on the ASX 200 market.
Morningstar analyst David Ellis said the results were reasonable in current domestic conditions.
“The earnings performance confirms our long-held argument the major banks can deliver reasonable profit and dividend growth despite only moderate loan growth,” he said
The report launches Australia’s big bank earnings results which are expected to see ANZ, Westpac and NAB notch combined half-year profits of more than $9 billion.
Australia’s largest lender The Commonwealth Bank, working on a different reporting cycle, in February posted a $3.66 billion net profit in its first half.
Australia's ANZ bank posts $3 billion H1 profit
