The profit is up 11 per cent on the previous year, and the bank's return on equity is up 20 basis points to 15.3 per cent.
Announcing the results yesterday, ANZ chief executive Mike Smith said the bank had two short-term targets: to reduce the cost to income ratio below 43 per cent by the end of 2016 and to achieve a return on equity of above 16 per cent in the same year.
ANZ’s earnings per share were up nine per cent to 238.5 cents, with a fully franked dividend of 91 cents per share – taking the total dividend for the year to 164 cents per share, up 13 per cent.
The global wealth division of the bank increased its profit by 36 per cent, driven by an increased take-up of ANZ’s Smart Choice Super offering.
The Australian division of ANZ grew its profit by 11 per cent, which was driven by seven per cent income growth and a two per cent decrease in expenses.
The international and institutional banking profit was up 15 per cent, and the New Zealand division’s profit increased by 29 per cent.
Mr Smith said ANZ was the only Australian bank and “one of just a few AA rated international banks” that provides its customers with connectivity to fast-growing markets in Asia.
“The future of Australia and New Zealand are now completely linked to Asia, which is also the number one driver of global economic growth,” said Mr Smith.
As a result, the so-called ‘Son of Wallis’ inquiry into the financial system should focus on access to international markets, he said.
“[The review should also look at] the way the Australian dollar should be part of global financing – and particularly how it can be traded against the major Asian currencies,” said Mr Smith.
The “financial reform agenda” should also be part of the terms of reference of the review, he said – along with the development of the superannuation system.
