ANZ reports 5pc drop in cash profit

ANZ attributed its half-year cash profit decline to high levels of provision write backs and a one-off insurance recovery in the prior comparable period. Photo: Michael Craig.

ANZ New Zealand has reported a 5 per cent drop in half-year cash profit to $841 million.

Statutory profit, which includes economic hedging gains and insurance asset valuations, lifted 3 per cent to $877 million in the six months to March 31.

ANZ attributed the cash profit decline to high levels of provision write backs and a one-off insurance recovery in the prior comparable period.

New Zealand's largest bank said the result reflected market share growth in lending and deposits, confidence in the economy and productivity gains.

"We have maintained our momentum into 2015 with a strong first-half performance," said ANZ New Zealand chief executive David Hisco.

"Confidence among businesses and consumers is lifting economic activity and lending volumes."

The bank said its home lending increased 6 per cent in the half-year period on the back of market share gains in key regions such as Auckland and Christchurch.

Hisco said New Zealand's economy continued to perform well, although headwinds such as the strong dollar and slowing growth in Australia and China were emerging.

The bank's Australian parent, Australia and New Zealand Banking Group, reported a 5 per cent rise in cash profit to A$3.7 billion.

ANZ New Zealand's net loans and advances rose 6 per cent to $99.5 billion, while customer deposits lifted 11 per cent to $61.4 billion.

The bank's net interest margin lifted to 2.52 per cent from 2.49 per cent in the same period a year earlier.

Gross impaired assets fell 38 per cent to $443 million.

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