ANZ reports solid nine months
ANZ has joined with the other major banking groups to report a solid performance for the nine months to the end of June in generally challenging economic conditions.
The banking group announced to the Australian Securities Exchange (ASX) a 7 per cent unaudited statutory profit of $4.7 billion for the nine months to 30 June, with cash profit for the same period up 11 per cent to $4.8 billion.
However, not unlike the other major players, ANZ also pointed to the manner in which insurance had impacted its wealth management area.
Dealing with its Global Wealth Management division, the bank reported that funds under management have grown 6 per cent in year-to-date terms, with in-force premiums up 7 per cent.
However it added that, "consistent with the current industry experience, lapse rates are above trend but have not changed significantly since the end of the half".
Commenting on the nine month update, chief executive officer Mike Smith said the banking group had continued to make steady progress with its super regional strategy.
He said that, overall, ANZ's performance remained in line with the expectations it had at the end of 2012, "with full-year revenue growth slower than last year and ongoing productivity improvements providing positive revenue-cost outcomes".
"Although the economic outlook in Australia has softened somewhat, there is cause for greater optimism in the medium term as the effect of lower interest rates, a more competitive currency and the removal of some pre-election uncertainty underpin consumer confidence and economic activity," Smith said. "In Asia, we believe concerns about growth in China have been overdone. Although there is a rebalancing taking place in China and there may be volatility associated with this, we need to remember that the world's second largest economy is still growing at around 7 to 7.5 per cent."
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