ANZ profit up for third quarter
ANZ reported a third quarter FY2017 profit increase of 5.3 per cent to $1.79 billion, primarily driven by the owner-occupier housing segment.
In its report to the Australian Securities Exchange (ASX), the bank reported an unaudited statutory profit of $1.67 billion for the third quarter to 30 June, 2017.
ANZ chief executive, Shayne Elliot said the third quarter period witnessed more progress in improving returns based on rebalancing the bank’s business portfolio, ongoing cost management discipline, and improved capital efficiency.
“Although we are in period of lower sector revenue growth with some parts of the economy experiencing challenges, credit quality has improved,” Elliot said.
The bank’s revenue decreased 0.3 per cent, which partly reflected a normalisation of the market’s business performance while expenses reduced one per cent.
Elliott said the bank was shifting away from investors towards owner occupiers in mortgage lending.
“We’ve said for some time as a strategy we want to be the best bank for people that want to buy and own a home and so we’ve been growing our business in owner-occupied home loans much faster than the market, and actually really reweighting our portfolio towards that and we’re really comfortable with that,” Elliott said.
The Australian Prudential Regulation Authority (APRA) Common Equity Tier 1 (CET1) ratio was 9.8 per cent at 30 June, which incorporated 51 basis points of net organic capital generation offset by the interim dividend (59 basis points).
“I think for all intents and purposes the moves on capital are largely behind us as an industry now and so we’ve set the new level of what good looks like which is the 10.5 per cent CET1. Clearly unquestionably strong is more than just capital but from a capital perspective, 10 and a half,” Elliott said.
AUTHOR
Malavika Santhebennur
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
