ANZ turns in solid result
The ANZ Banking Group has turned in a strong performance for the nine months to 30 June, reporting a $4.2 billion unaudited underlying profit after tax - 16.1 per cent above the prior corresponding period.
The big Banking Group told the Australian Securities Exchange that underlying profit for the third quarter had increased 1.3 per cent to $1.4 billion.
The company said its retail and wealth divisions had made an increased contribution to the result.
Pointing to the most recent volatility in the markets, ANZ chief executive Mike Smith said turbulence in the global economy had confirmed the bank's long held view that "there is a changed reality post-GFC".
Further, he said despite the market turmoil which had continued in July and August, there was good reason for optimism in ANZ's key domestic markets in Australia and New Zealand.
"Both countries are benefiting from growing demand for hard and soft commodities, and from the broader trade and investment linkages with Asia, which continues to be the best performing region in the global economy," Smith said.
Drilling down on the Banking Group's divisional performances, it said the contribution from retail and wealth businesses had increased as the benefits of the RBS transaction continued to emerge and further improvements were made in product offerings and systems support.
Smith said ANZ was still positive on Australia, and while there were some short-term challenges to manage, the country was still in a strong fiscal position with a triple A credit rating, and "we are on the door-step to Asia, which is the new engine for global economic growth".
"While we need to manage deliberately in the current environment, we are confident about the region's long-term growth prospects, and we continue to believe the environment will also throw off growth opportunities for us," the ANZ chief executive said.
AUTHOR
Mike Taylor
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