The Australian division of ANZ grew five per cent during the six months with income growth up four per cent, a two per cent increase in expenses and a four per cent increase in the provision charge.
Profit for the New Zealand division increased 21 per cent with income up three per cent, expenses down six per cent and the provision charge declining by $73 million.
The global wealth division experienced an 11 per cent in profit while international and institutional banking profit rose nine per cent.
ANZ chief executive Mike Smith said the results demonstrate consistent progress with ANZ’s strategy long term strategy to grow its Australian and New Zealand franchises, build its Asia-Pacific franchise and “establish common infrastructure processes that improve productivity and reduce risk”.
“The diversification this strategy provides is now delivering a differentiated proposition for our customers and improved returns for shareholders,” said Mr Smith.
Mr Smith said since launching its strategy six years ago the compound annual growth rate in earnings from Asia had been 37 per cent.
In Australia Mr Smith said ANZ is seeing the benefits of its banking on Australia program which includes digital solutions for customers.
“We have developed greater scale based on market share growth in home lending, small business lending and retail deposits,” he said.
“Business confidence in Australia is recovering more slowly than expected however, and in some segments growth remains subdued with competition placing pressure on margins.”
As a result Mr Smith said ANZ has been careful in its management of costs.
