Tuesday, October 3, 2023
HomeEconomyAustralian bank ANZ's annual cash profit up 5%

Australian bank ANZ's annual cash profit up 5%

(Reuters) – Australia and New Zealand Banking Group Ltd on Thursday reported a 5% increase in full-year cash profit as its home loan business improved and higher interest rates boosted margins in the second half of the year .

The country’s fourth-largest bank has been overhauling its home loan processing capabilities as it failed to cash in on the COVID-driven housing boom due to delays in processing applications.

Chief executive Shayne Elliott said home loan application times had been aligned with industry peers.

Group net interest margin, a key measure of profitability, increased 10 basis points to 1 from the first half. 68% In the second half.

Runaway inflation has prompted the RBA to implement its most aggressive tightening cycle in decades, boosting profit margins for banks that have struggled with record low interest rates for the past two years.

ANZ cash profit from continuing operations was 6.52 A$1 billion ($4.23 A$1 billion), exceeding the Visible Alpha consensus estimate of A$600 million.

($1=1.5406 AUD)



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