ANZ cash profit up 11 per cent to $3.5 billion

YOU better hope your super fund has some ANZ shares because the Big Four bank just reported massive profits for its first half.

ANZ made a cash profit of $3.5 billion for the six months to March 31.

ANZ has lifted its first half cash profit 11 per cent following solid growth across its divisions.

The bank made a cash profit of $3.5 billion for the six months to March 31, up from $3.2 billion for the same period last year. Net profit was $3.4 billion, up 15 per cent from $2.9 billion a year ago.

Chief executive Mike Smith said the result showed solid growth from Australia and New Zealand and a strong performance from its international division.

“Our international business, particularly Asia, is firing on all cylinders with revenue and profits again growing strongly, and a sustained improvement in returns,” he said in a statement on Thursday.

Profit from the bank’s Australian division lifted five per cent thanks to strong growth in home loans and loans to small businesses.

Meanwhile, ANZ lifted profit from its New Zealand business 21 per cent after the bank grew its market share and improved productivity and credit quality.

ANZ chief executive Mike Smith: “This is a good set of results.”

Profit from the banks international operations were up nine per cent, driven particularly by growth from Asia, while the global wealth division lifted profits 11 per cent.

Mr Smith said the result showed the success of the bank’s efforts to diversify its earnings into Asia.

“This is a good set of results. They demonstrate consistent progress with ANZ’s long-term strategy to grow in our core franchises in Australia and New Zealand, to build a significant and profitable franchise in Asia Pacific, and to establish common infrastructure and processes that improve productivity and reduce risk,” he said.

“The diversification this strategy provides is now delivering a differentiated proposition for our customers and improved returns for shareholders.” The bank announced a fully-franked interim dividend of 83 cents per cent, up from 73 cents a year ago.