ANZ reveals a 10% profit increase
(2 May 2012 – Australia) Australia and New Zealand Banking Group (ANZ) has revealed an increase of 10 percent in first half-net profit, but warns that margins are still declining.
The group’s net profit for the six months rose from A$2.66 billion from the previous corresponding period and were bolstered by improving results across the bank’s operations in American, Asia, the Pacific and it’s European businesses, the bank said.
ANZ’s chief executive, Mike Smith, said early Wednesday that in Australia the bank’s market-share remained strong.
Mr Smith noted, however, that the bank’s financial performance was "subdued" and "significantly impacted" by declining margins.
The structural shift that has occurred since the financial crisis with persistently lower demand for credit also affected the bank, the bank’s CEO commented.
Underlying profit, the bank's preferred measure of performance, was A$2.97 billion, up 6 percent from A$2.82 billion in the previous corresponding period.
The bank announced an interim fully-franked dividend of 66 cents, up from 64 cents for the same period in the previous year.
Net interest, which is a reflection of the profit the bank makes on loan interest, was down from 2.44 percent to 2.38 percent in the six months ending March.
The bank made no comment on whether it would reduce its interest rates on loans, after the Reserve Bank of Australia cut the cash rate by 50 basis points, to 3.75 percent, on Tuesday.
ANZ’s chief executive, Mike Smith, said early Wednesday that in Australia the bank’s market-share remained strong.
Mr Smith noted, however, that the bank’s financial performance was "subdued" and "significantly impacted" by declining margins.
The structural shift that has occurred since the financial crisis with persistently lower demand for credit also affected the bank, the bank’s CEO commented.
Underlying profit, the bank's preferred measure of performance, was A$2.97 billion, up 6 percent from A$2.82 billion in the previous corresponding period.
The bank announced an interim fully-franked dividend of 66 cents, up from 64 cents for the same period in the previous year.
Net interest, which is a reflection of the profit the bank makes on loan interest, was down from 2.44 percent to 2.38 percent in the six months ending March.
The bank made no comment on whether it would reduce its interest rates on loans, after the Reserve Bank of Australia cut the cash rate by 50 basis points, to 3.75 percent, on Tuesday.
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