(Reuters) – ANZ Group Holdings Ltd on Friday edged past expectations with a 22.8% rise in first-half profit but warned of a tough second half amid stiff competition in retail banking and rising cost pressures.
The lender’s record profit, driven by “solid revenue growth across the board”, follows a period of rapid policy tightening by the country’s central bank.
“The next six months will be more difficult than the last. Competition in retail banking is as intense as it has ever been, both in Australia and New Zealand,” Chief Executive Officer Shayne Elliott said.
A key gauge of bank’s profitability, ANZ’s net interest margin was up at 1.75% at the end of March, but the company faced risks from lending and deposit competition, and higher funding costs.
Australia’s No. 2 lender National Australia Bank (OTC:NABZY) (NAB) on Thursday said its margins had peaked.
ANZ warned of “emerging stress” among its customers owing to a challenging environment spurred by higher borrowing costs, sustained inflation and a slowing property market.
ANZ’s total expenses are likely to increase by nearly 5% in fiscal 2023 off its 2022 base of A$9.17 billion on a constant currency basis.
Australia’s fourth-largest bank said cash profit from continuing operations was A$3.82 billion ($2.56 billion) for the six months ended March 31, up from A$3.11 billion a year ago and beating a consensus estimate of A$3.81 billion.
($1 = 1.4945 Australian dollars)
Source: Economy - investing.com
