(20 August 2010 – Australia) Australia and New Zealand Banking Group has released a third-quarter trading update, revealing a drop in troubled loans and an increase in underlying profits.The bank reported that its underlying profit for the third-quarter had increased 37 percent on last year to A$1.3 billion.
The results mean the bank’s third-quarter underlying profit has improved 26 percent on last year to about A$3.6 billion.
Mike Smith, ANZ’s chief executive, said despite the positive earnings the global outlook remained ‘unusually uncertain’.
This reflects what other banking leaders have said post results meaning that loan growth in Australia will be softer that experienced pre-global financial.
During the past two and a half years we’ve made the calls early on these trends and ANZ wants to continue to be ahead of the game, Mr Smith said.
Banks around the world are facing permanently higher costs, and we need to accept this, Mr Smith said.
The bank’s top boss also noted that pressures would continue on wholesale funding and rates for deposits have never been so high compared to short-term wholesale rates.
There are also going to be significant costs to comply with new international regulation, although the impact of Basel III is likely to be somewhat less onerous than originally expected, Mr Smith added.