SYDNEY: The Australia and New Zealand Banking Group on Thursday posted a first half net profit rise of 15 percent to Aus$3.38 billion (US$3.13 billion), spurred by solid international growth.
ANZ's cash profit, which strips out one-off and other items and is a measure often preferred by financial institutions, rose 11 percent to Aus$3.5 billion in the six months to March 31, slightly above expectations.
Despite the buoyant result, the share price of Australia's third-largest bank closed 1.16 percent lower at Aus$34.07 in a weak overall market.
Chief executive Mike Smith said the solid numbers were underpinned by ANZ's global operations.
"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.
Profits from businesses in the Asia-Pacific, Europe and Americas jumped 43 percent on significant growth in customer numbers and in products that support regional trade and investment flows such as foreign exchange.
Smith said profit from the bank's Australian division was more subdued but still five percent higher thanks to strong growth in home loans and loans to small businesses.
"We have developed greater scale based on market share growth in home lending, small business lending and retail deposits," he said of Australia.
"Business confidence in Australia is recovering more slowly than expected however, and in some segments growth remains subdued with competition placing pressure on margins."
The Melbourne-based lender declared an interim dividend of 83 cents, a 14 percent hike from the same period in the previous year.
IG market strategist Evan Lucas said the market deemed the result good, but not good enough.
"It is a fantastic result but not what we would call a stellar, absolutely outrageous result that will make it (the share price) go higher," he said.
Two of the other three big banks -- Westpac and National Australia Bank -- report their half-yearly results next week.
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