ANZ posts net profit of $1.6b
ANZ has posted a net profit of $1.6 billion, up eight per cent, and a cash profit of $2 billion, up 31 per cent, in the three months to 31 December 2016.
In a trading update to the Australian Securities Exchange (ASX), ANZ said its results benefited from a good performance in Australia and New Zealand retail and in institutional banking.
The results said profit before provisions was up 17 per cent, and revenue was up seven per cent, and progress was made on efficiency with expenses down four per cent and was driven by current and prior period productivity initiatives and tight cost management.
ANZ chief executive, Shayne Elliot, said: "The first quarter saw a positive start to the year. There was further momentum in executing our strategy to build a simpler, better balanced and fairer bank that more consistently meets customer expectations, and delivers improve shareholder returns".
"Our ability to deliver these outcomes [new initiatives] for customers while maintaining good earnings momentum has been supported by strong productivity gains and improved capital efficiency," he said.
The announcement noted the bank's non-core asset disposals with its agreements to sell its 20 per cent stake in Shanghai Rural Commercial Bank (SRCB), the UDC Finance business in New Zealand, and ANZ's retail and wealth businesses in five Asian countries.
The transactions are expected to complete in the second half of FY2017 and 1H2018 subject to regulatory approvals.
"For the purposes of comparison, if the earnings from the businesses being sold were to be excluded from cash profit performance for 1Q17 it would show an increase of 33 per cent (+31 per cent including)," the announcement said.
ANZ had previously announced that it was looking to sell its Australian wealth business and were considering strategic options for the business.
IOOF's managing director, Christopher Kelaher, told Money Management on Wednesday that his firm had an interest in ANZ's wealth management assets.
Recommended for you
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
