ANZ posts $4.8bn profit, says China concerns are ‘overdone’

Published 16 August 2013 08:02, Updated 19 August 2013 07:08

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ANZ posts $4.8bn profit, says China concerns are ‘overdone’

ANZ chief executive Mike Smith says the bank is making steady progress on its “super regional strategy” which focuses on Asia. Photo: Luis Ascui

ANZ Banking Group chief executive Mike Smith has dismissed concerns about the slowdown in the Chinese economy, after Australia’s most Asia-focused bank reported an 11 per cent rise in cash profit to $4.8 billion for first nine months of its financial year.

The result was underpinned by tight cost control, with expenses falling 0.5 per cent. Revenue rose a healthy 5 per cent in the nine months to June 30. Provision charges for bad loans of $876 million were 2 per cent lower than the same period last year.

Unaudited statutory profit for the nine months to 30 June was up 7 per cent to $4.7 billion, compared to the same period last year.

Smith said the bank was making steady progress on its “super regional strategy” which focuses on Asia.

“We have produced consistent revenue growth with diversification benefits from our exposure to growth markets in Australia and in Asia,” Smith said in a statement on Friday.

“At the same time, we are continuing to actively manage efficiency in every area of the business with a focus on improving productivity and capital utilisation.

“This is allowing us to continue to invest in our growth strategy for the longer term while also improving shareholder returns in the near term.”

“In Asia, we believe concerns about growth in China have been overdone. Although there is a rebalancing taking place in China and there may be volatility associated with this, we need to remember that the world’s second largest economy is still growing at around 7 per cent to 7.5 per cent.”

Read the full story at The Australian Financial Review.

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