Melbourne: Australia & New Zealand (ANZ) Banking Group, the Australian bank expanding in Asia, said fiscal first-half profit jumped 36 per cent as lending income grew and charges for bad loans fell in an improving dom-estic economy.
Net income in the six months ended March 31 surged to A$1.93 billion (Dh6.5 billion) from A$1.42 billion in the same period a year ago, the bank said in a statement yesterday. Chief Executive Officer Michael Smith separately confirmed the lender is considering buying a 51 per cent stake in Korea Exchange Bank.
Tighter regulation
After riding out the slowdown without state aid, Melbourne-based ANZ Bank and the nation's largest lenders are now bracing for tighter regulation worldwide that may eat into profitability.
As Smith mulls whether to pursue further acquisitions, he said this week's downgrades of Greek and Portuguese debt may upset credit markets on which Australian banks rely to fund lending.
"The focus for the next 12 months will be on margins," said Wim Steemers, Sydney-based analyst for Macquarie Funds Group. "The banks have talked about pressures on the cost of funding. We'll learn over the next 12 months how that is flowing through the books."
Underlying profit, which strips out some one-time costs, rose 20 per cent to A$2.3 billion. Analysts estimated profit of A$2.26 billion. The net interest margin, the difference between what the bank earns from loans and pays to depositors, climbed to 2.43 per cent from 2.22 per cent in the same period a year earlier, the bank said.
