ANZ made a $4.7 billion profit for the nine months to June, an increase of seven per cent.
The bank’s quarterly update said the result was driven by revenue growth and productivity gains.
ANZ’s unaudited underlying, or cash, profit for the nine months to June 30, which excludes one-off financial items, was $4.8 billion, up 11 per cent from the same period in the previous year.
ANZ chief executive Mike Smith said the bank was continuing to grow its business in Australia and Asia.
“We have produced consistent revenue growth with diversification benefits from our exposure to growth markets in Australia and in Asia,” he said in a statement on Friday.
“At the same time, we are continuing to actively manage efficiency in every area of the business with a focus on improving productivity and capital utilisation.”
Smith said that while the outlook for the Australian economy had weakened in recent months, the fall in the Australian dollar and lower interest rates had given ANZ reason to be optimistic about its outlook.
While ANZ’s net interest margin had declined two basis points since the end of March, the bank saw its consumer deposits increase 12 per cent while net lending assets were up eight per cent.
The result completes a good week for the banks after the Commonwealth Bank posted a record annual cash profit of $7.8 billion.
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CBA’s 10 per cent rise in cash profit was primarily driven by strong earnings growth in its core retail banking operations – the largest of any Australian bank.
Investors are looking to bank stocks as the steam goes out of resources stock and low interest rates make fixed term and cash deposits less attractive.
– with AAP
