(28 April 2005 – Australia) ANZ posted a net profit of A$1.457 billion for the six months to March 31, up 5.7 percent on the previous year, a result chief executive John McFarlane described as “respectable”.Net interest income increased 14 percent on the previous year to A$2.85 billion while total operating income grew nine percent to A$4.56 billion.
ANZ said all business and personal banking businesses grew, with the institutional division profit increasing seven percent to A$455 million.
McFarlane said the result was achieved in a rising interest rate and highly competitive environment.
“Our respectable performance in the first half and a favourable outlook will help underpin a solid result for the year as a whole,” he said.
“We are likely to see some softening as interest rates continue to rise and the economic cycle comes off its peak. System credit growth is nevertheless likely to remain double digit for the year, including housing, but it would be prudent to be cautious about margins,” McFarlane said.
He said ANZ was ahead of market expectations but admitted there was more to be done on the revenue side.
The bank’s New Zealand business earned A$286 million.
McFarlane called the New Zealand result “flat” but said it had to be seen in the context of a major integration and tight deadline for the regulatory compliance program.