ANZ’s steady half-year profit
ANZ has posted a steady half-year result, reporting a five per cent increase in cash profit to $3.7 billion.
ANZ chief executive, Mike Smith, described the result as being both "good" and "well balanced" with solid progress having been made in reshaping the business in response to the more challenging macro-environment.
The result saw the banking group declare an interim dividend of 86 cents per share fully franked.
While expressing his satisfaction with the result, Smith gave a cautious assessment of the outlook saying that for the foreseeable future the bank would be operating in a low growth environment in which there would continue to be occasional volatility and shocks.
He said, however, that the outlook for credit quality remained relatively benign supported by low interest rates, the stimulus of a low oil price and an appreciating US dollar and that while China's economic growth was slowing, the process was being well-managed.
Where the bank's Global Wealth division was concerned there was clear evidence that it had benefited from its focus on retail insurance rather than the group space.
The bank's announcement to the Australian Securities Exchange said profit for Global Wealth had increased 11 per cent driven by strong underlying performance from the insurance business which benefited from growth in in-force premiums, stable claims and improved lapse experience.
In the advice space, the bank also signalled that it would be continuing to leverage its banking network and would be looking to increase its "penetration of the existing bank customer base, with wealth solutions increasingly integrated with banking offer and more options for the self-directed customers".
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