ANZ records $3.4b six month cash profit
(2 May 2017 – Australia) ANZ Group has recorded a 23 percent rise in first-half cash profit to A$3.41 billion for the first six months to 31 March.
The bank’s CEO, Shayne Elliott said annual credit growth currently at about six percent was not "desirable or sustainable" given wages were rising at just two percent.
“It is clear that the regulator, with the gap between wage growth and credit growth, is looking for actions to bring those two closer together," he said.
"Without clear indications of strong wage inflation, our risk appetite plus regulatory action will likely curtail medium-term credit growth to five percent and probably lower."
"There are a lot of lumpy items in this result. The key message was that underlying revenue was weak as the company strengthens its balance sheet," UBS analyst Jonathan Mott said.
The bank’s net interest margin fell to two percent from 2.06 percent at 30 September 2017, due to higher wholesale funding costs and deposit competition, but recent increases in mortgage rates could be positive for margins in the second half, Elliott added.
ANZ’s first-half return on equity rose to 11.8 percent, from 9.7 percent at the same period last year.
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