Australia and New Zealand Banking Group (ASX:ANZ) reported a 5 per cent increase in half-year profits in its announcement to the ASX on Tuesday. Cash profit came to A$3,676m for the half-year, up 5 per cent. Net statutory profit attributable to shareholders was up 3 per cent to A$3,506m. Operating income was up 7 per cent to A$10,230m. The company’s proposed interim dividend was 86c per share, which will be recorded on 12 May 2015 and payed on 1 July 2015. These results come a day after another Australian banking giant, Westpac, report less than ideal half-year profits. ANZ cited growth in both domestic and international operations as the reason for the profit increase. “Our domestic markets in Australia and New Zealand have again delivered strong growth and returns. We are investing heavily in areas of future profitability, particularly for our Australian business,” said Chief Executive Officer Mike Smith.
Other data of note includes a 12 per cent increase in customer deposits and net loans and advances were up 10 per cent. Earnings per share were up 4 per cent to 133.6c. Return on equity (RoE) came in at 14.7 per cent. Mr. Smith said that although the company had improved its macro conditions outlook, some improvements needed to be made in international operations. “International and Institutional Banking (IIB) performed well given the twin effects of expansionary monetary policy of Institutional lending margins and lower commodity prices on trade volumes. These more difficult macro conditions will be part of our operating environment for the foreseeable future.” Shares of ANZ are up $1.12, or 3.35 per cent, at $34.36 per share around 1:00pm on Tuesday. Shares of the bank have risen 1.15 per cent in the last 12 months and 7.07 per cent so far this year.
Author: Simon Herrmann
May 05, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.