ANZ lifts first-half profit
ANZ has announced a 23 per cent increase in cash profit to $2.9 billion for the six months ended 31 March on the back of the strategic and tactical decisions taken in 2016 including the sale of its retail/wealth businesses in six Asian countries.
The result saw the directors declare an interim dividend of 80 cents per share fully franked and came as the ANZ prepares for the formal sale of elements of its Australian wealth business.
The reasoning behind the sale of the wealth business became evident with the banking group’s divisional results revealing a 30 per cent decline in profit when compared to the prior corresponding period which the company said was driven by adverse disability claims experience and a one-off loss as a result of the exit of the Group Life Insurance Plan.
It said this had been partially offset by reinsurance profit share benefits and favourable claims experience in Lenders Mortgage Insurance.
The banking group said the decline in profitability in its funds management business reflected the planned strategy to rationalise the legacy portfolio to Smart Choice which it believed was a simpler and lower risk model.
Commenting on the result, ANZ chief executive, Shayne Elliott said the big banking group had seen significant financial benefits from the strategic and tactical decisions it had taken in 2016.
“Our strategy involves a significant reshaping of ANZ’s business and I am very pleased to have made significant progress while also producing good results across the group,” he said.
Commenting on the future, Elliott said the reshaping of the business over the past year had delivered strong outcomes for customers and shareholders and had established a foundation for future growth and better returns.
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