ANZ up 36 percent
(30 April 2010 – Australia) ANZ Banking Group Ltd increased first-half profits 36 percent, as Australia's third biggest bank yielded the results of a fast growing Asia and stable Australia.
The Melbourne-based bank said that its net profit rose for the six months to March 31 from A$1.41 billion in the prior corresponding period to A$1.92 billion.
Cash earnings, the bank's preferred measure of profitability, more than doubled to A$2.37 billion.
ANZ chief executive Mike Smith said the backdrop to the bank’s improving business performance is a considerably better outlook for provisions which reflects the strength of the economic recovery particularly in Australia and Asia.
Provisions for credit impairment declined 23 percent to A$1.09 billion from a year earlier, the bank said in a statement.
Basic earnings per-share gained 16 percent to 76.8 cents from a year earlier and the bank declared a first half dividend of 52 cents per-share, fully franked, an increase on the 46 cents paid a year earlier.
The bank increased customer deposits by two percent while lending levels remained broadly flat, with growth in mortgages offset by lower demand among corporate clients.
The bank said its Tier 1 capital ratio was at 10.7 percent compared with 10.6 percent six months earlier.
ANZ's Mr Smith said the Asian region, including Australia, was doing a lot better than the US and Europe.
The outlook is pretty positive in terms of Australia and the region, Mr Smith said.
Mr Smith said bad debts were slowly improving, but it was an ongoing issue, particularly among small and medium sized businesses.
ANZ said collective provisions increased slightly to A$3.03 billion from A$3 billion six months earlier. Collective provisions were 1.38 percent of credit risk weighted assets.
At the same time, gross impaired loans jumped 21 percent to A$5.33 billion.
The bank said its Australian division increased profit by 33 percent to A$1.26 billion over a year earlier as its institutional, commercial and wealth businesses did better, while the retail business was flat.
Profit at its Asia Pacific business slipped 27 percent to A$305 million, after an unusually strong prior corresponding period as the markets division benefitted from the market volatility.
ANZ's institutional business increased profit 12 percent to A$818 million from a year earlier as it gained new customers and repriced the loan book.
ANZ said the company's margins had gained 15 basis points to 2.68 percent compared with the preceding half as it recovered higher funding costs and priced risk at a more sustainable level.
Cash earnings, the bank's preferred measure of profitability, more than doubled to A$2.37 billion.
ANZ chief executive Mike Smith said the backdrop to the bank’s improving business performance is a considerably better outlook for provisions which reflects the strength of the economic recovery particularly in Australia and Asia.
Provisions for credit impairment declined 23 percent to A$1.09 billion from a year earlier, the bank said in a statement.
Basic earnings per-share gained 16 percent to 76.8 cents from a year earlier and the bank declared a first half dividend of 52 cents per-share, fully franked, an increase on the 46 cents paid a year earlier.
The bank increased customer deposits by two percent while lending levels remained broadly flat, with growth in mortgages offset by lower demand among corporate clients.
The bank said its Tier 1 capital ratio was at 10.7 percent compared with 10.6 percent six months earlier.
ANZ's Mr Smith said the Asian region, including Australia, was doing a lot better than the US and Europe.
The outlook is pretty positive in terms of Australia and the region, Mr Smith said.
Mr Smith said bad debts were slowly improving, but it was an ongoing issue, particularly among small and medium sized businesses.
ANZ said collective provisions increased slightly to A$3.03 billion from A$3 billion six months earlier. Collective provisions were 1.38 percent of credit risk weighted assets.
At the same time, gross impaired loans jumped 21 percent to A$5.33 billion.
The bank said its Australian division increased profit by 33 percent to A$1.26 billion over a year earlier as its institutional, commercial and wealth businesses did better, while the retail business was flat.
Profit at its Asia Pacific business slipped 27 percent to A$305 million, after an unusually strong prior corresponding period as the markets division benefitted from the market volatility.
ANZ's institutional business increased profit 12 percent to A$818 million from a year earlier as it gained new customers and repriced the loan book.
ANZ said the company's margins had gained 15 basis points to 2.68 percent compared with the preceding half as it recovered higher funding costs and priced risk at a more sustainable level.
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