ANZ Bank reported a 23 per cent increase in its first-half cash profit to $3.41 billion, missing market expectations.
The profit was supported by its well-performing core lending business and improvement in credit quality. However, the number failed to reach analysts’ estimate of $3.49 billion cash profit. As a result, ANZ shares fell 2.8 per cent to $32.02 in the opening trade.
ANZ chief executive Shayne Elliott said the bank expected a stable second half, helped by the improved credit quality and lower standards for bad debt.
“The environment for banking remains constrained with intense competition and pressure on margins, subdued lending growth, rapidly changing customer expectations and increasing regulation,” Elliott said.
ANZ’s dividend, which is paid 80c per share, will be released to shareholders on July 3.