ANZ shares drop after flat half-year result
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More news: Shares in ANZ were down nearly 2% to $29.43 in early trading after the banking major reported a largely flat half-year cash profit of $3.57 billion despite higher lending and deposits across its divisions.
Margins remained under pressure in a competitive market, while outgoing CEO Shayne Elliott warned the future of global conditions remained uncertain and there could be periods of increased volatility.
ANZ lifts half-year profit to $3.57b, dividend steady
The news: Banking major ANZ has reported a lift in half-year cash profit and delivered record revenue on the back of higher lending and deposits across its divisions.
The numbers: The lender reported cash profit of $3.57 billion for the six months to 31 March, edging higher than the $3.55 billion result a year ago and analyst forecasts of $3.53 billion polled by Visible Alpha.
Revenue rose to a record $11 billion following the inclusion of the first full half of Suncorp Bank results. The Melbourne-based lender also declared an interim dividend of 83 cents per share, in line with market expectations and unchanged from last year.
The context: ANZ said the performance was driven by combined momentum across each of its divisions, which included home loan growth and higher deposits, as well as higher lending in the commercial and institutional divisions. Net interest margin for the half year was 1.56%, slightly lower than the 1.58% in the second half of last year.
Outgoing CEO Shayne Elliott said the future of global conditions is uncertain and there would be periods of increased volatility, but the bank’s strong balance sheet will prove critical in such times.
“As I hand over to incoming CEO Nuno Matos, the bank is well placed for the future. Our strong balance sheet, along with our diversified portfolio, leave the bank well placed to navigate ongoing volatility,” he said in a statement.
The source: ASX
