Bumper first half for ANZ
(1 May 2013 – Australia) Surpassing forecasts of A$3.13 billion profit, ANZ Bank reported a 10 percent rise in first-half cash earnings to A$3.18 billion.
The bank recorded solid earnings in international and institutional banking as well as in its local retail banking unit.
A surprise fall in provision for bad debts over the half was a key driver behind ANZ’s profit jump.
The bad debt charge was A$599 million, compared with market expectations of A$666 million.
In its core Australian division profits jumped by profits rising 11 percent and profit margins widening after all the big banks failed to pass on official rate cuts in full last year.
ANZ’s institutional and international division also had a strong half, with profits jumping 26 percent on the previous six months.
Chief Executive Mike Smith said the result showed the Asian push was starting to pay off, as it was helping ANZ to deliver more consistent and sustainable profits.
"Since 2008 we have worked hard to connect ANZ shareholders and customers to the significant opportunities being created by Asia’s fast-growing economies while building on our traditional strengths in Australia, New Zealand and the Pacific," Smith said.
"This half saw us strengthen our franchises in Asia Pacific, Australia and New Zealand, hold Group margins steady, produce a lower cost-to-income ratio and achieve a higher return on equity while further strengthening our capital position. Shareholders are benefiting from these outcomes.'
The profit surge kicks of a round of big bank earnings results in which ANZ, Westpac and National Australia Bank are set to and down combined half-year profits of more than A$9 billion.
The Commonwealth Bank of Australia, which uses a different reporting cycle, notched up a A$3.8 billion profit in its latest half.
Subscribe