Australian bank ANZ’s half-year cash profit rises, but margins loosen

The logo of ANZ banking group is displayed in the window of a branch in central Sydney, Australia April 30, 2016. REUTERS/David Gray

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May 4 (Reuters) – The Australian and New Zealand banking group (ANZ.AX) on Wednesday reported a 4.1% rise in first-half cash profits as it benefited from a pandemic-induced boom home loans in a context of historically low interest rates, but recorded a slight decline in its margins.

The country is not. 4 bank recorded strong growth in its turnover with institutional clients as well as strong momentum in mortgage loans in New Zealand, resulting in growth in its market share.

“We are on track to grow in line with the major Australian banks by the end of our financial year, but we will do so taking into account the performance of our margins,” said chief executive Shayne Elliott.

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ANZ’s cash profit on a continuing operations basis, a metric banks focus on because it only includes ongoing operations, was A$3.11 billion ($2.21 billion). dollars) for the six months ending March 31, compared to A$2.99 ​​billion last year and beat a Visible Consensus Estimate alpha of A$2.99 ​​billion.

The Melbourne-based bank’s net interest margin, a key measure of profitability that measures the difference between what banks charge for loans and what they pay, was 1.58%, down from 1.65 % in the second half of 2021.

The bank also said it was looking to establish a new listed parent holding company with two separate groups of wholly owned entities: banking and non-banking groups under its control.

ANZ declared an interim dividend of AU$0.72 per share, up from AU$0.70 a year earlier.

($1 = 1.4096 Australian dollars)

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Reporting by Sameer Manekar and Harish Sridharan in Bengaluru; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

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