ANZ has enjoyed a strong first quarter, with the company’s quarterly update revealing profits are up while costs and expenses have declined.
The bank reported a cash profit of $2 billion for the quarter, up 31 per cent on the quarterly average of the second half of the 2016 financial year, supported by “good performance” in the bank’s retail and institutional arms.
“Our key customer businesses delivered good outcomes, retail and commercial in Australia and New Zealand again performed well,” said ANZ chief executive Shayne Elliott.
“Highlights include market share gains in new-to-bank customers driven by the success of ApplePay and AndroidPay, institutional banking delivered pleasing results in Australia and Asia. This has seen us manage the revenue impact of initiatives to improve capital efficiency and returns.”
ANZ said a number of transactions, including the sale of its Asian retail and wealth business, the UDC Finance business in New Zealand, and its 20 per cent stake in Shanghai Rural Commercial Bank, would boost the bank’s APRA common equity tier 1 position by around $2.7 billion.
“Overall we have seen good progress in the first quarter. Clearly though, there is still a great deal to do to sustain this progress in a low growth environment and to deliver a winning proposition that meets our customers’ rapidly changing needs,” said Mr Elliott.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...