The ANZ is maintaining interim dividend at 80 cents a share after reporting a 2% rise in cash profit to $3.56 billion for the six months to March 31.
Statutory profit fell 5% to $3.17 billion. The bank’s return on equity rose 13 points to 12%.
The total of newly impaired assets fell 8% to $893 million from $963 million, helping boost the bank’s profits.
Cash earnings rose $74 million, while the value of newly impaired assets fell $73 million – a helpful fall for the bank.
Staff numbers fell 5% or more than 2,200 to 39,359 full-time equivalent employees.
The ANZ’s net interest margin fell sharply to 1.79 cents in the dollar from 1.93 cents a year earlier. The cost to income ratio edged up to 48.6% from 47.1.
In a statement with the results, ANZ Chief Executive Officer Shayne Elliott said: “The work started in 2016 to simplify our business and strengthen our balance sheet has helped us weather the strong headwinds in Australian retail banking, while still producing a balanced financial outcome for shareholders.
“Home loan demand in Australia has slowed significantly and this continued during the half. While our decision to step back from certain segments compounded this impact, being more risk averse in the current environment is prudent. However, we do accept we could have done a better job implementing our new risk settings and are taking steps to improve processes.
“Other parts of the business performed solidly. Institutional has been transformed into a well- managed business delivering consistent and diversified results for shareholders as well as customers. New Zealand also put in another good performance.
“Cost control was a highlight with absolute expenses down for another half. In fact, since the end of 2015, we have absorbed inflation of around $550 million while also reducing the cost of running the bank by approximately $300 million, even when excluding divestments.
“The tough retail banking environment will be a reality for the foreseeable future. We knew three years ago there would be strong headwinds and have taken action to respond head-on, including restructuring our Australian business,” Mr. Elliott said.
