MELBOURNE: Australia and New Zealand Banking Group on Thursday announced a 19 percent rise in annual profits, but warned of difficult conditions ahead due to global economic volatility.
Australia's third largest bank by market value said net profit for the 12 months to September 30 came in at Aus$5.36 billion (US$5.5 billion). Underlying profit jumped 12 percent from the previous year to Aus$5.65 billion.
Chief executive Mike Smith said the results were in line with expectations with their key franchises in Australia, New Zealand and the Asia-Pacific all producing solid performances.
ANZ's Australian division posted a profit of Aus$2.78 billion, up two percent, while profit from its Asia-Pacific, Europe and America operations increased 16 percent to Aus$721 million.
The bank's institutional division profit was nine percent higher at Aus$1.89 billion while New Zealand profit spiked 54 percent to Aus$692 million.
But profit growth fell in the second half of the year due to subdued global markets, Smith said, and warned of uncertainty ahead.
"We have a strong financial and capital position. Our focus on the growth markets of Asia and their connectivity with our key domestic franchises means we are in the right place with the right strategy at the right time," he said.
"In the second half though, the global economic situation saw trading conditions for our markets business deteriorate significantly.
"This more difficult operating environment -- characterised by ongoing economic volatility, cautious consumer and business behaviour, and higher funding and capital costs for banks globally -- is likely to be with us for some time."
Despite this, Smith said "we see 2012 as a year of opportunity and I am confident we can continue delivering on our promises to our shareholders, customers and the community".
Melbourne-based ANZ declared a dividend of 76 cents a share.
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