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ANZ posts rise in fiscal Q3 earnings

Australia & New Zealand Banking Group Ltd.'s cash profit for the third quarter ended June 30 rose 5.3% from the average of the previous two quarters.

The company posted a cash profit of A$1.79 billion and a statutory profit of A$1.67 billion. The bank had reported a cash profit of A$5.2 billion for the nine months to June 30, 2016, and a statutory profit of A$4.3 billion over the same period, according to ANZ's statement in August 2016.

The bank said its net interest margin was stable. ANZ added that the Australian government's levy on major banks will affect the margin in the fourth quarter, which is reflected within the cost of funds.

Total provision charge for the quarter clocked in at A$243 million. Gross impaired assets stood at A$2.95 billion.

As of June 30, the bank's common equity Tier 1 ratio under the Australian Prudential Regulation Authority standards came in at 9.8%.

Meanwhile, ANZ New Zealand's nine-month cash profit rose 19% year over year to NZ$1.38 billion from NZ$1.16 billion, driven by disciplined cost management and lower charges for credit impairment.

The company's statutory profit climbed 7% year over year to NZ$1.28 billion from NZ$1.19 billion.

Net interest income for the ninth months to June 30 increased to NZ$2.30 billion from NZ$2.27 billion in the prior-year period. The bank said net interest margins have recently stabilized after a period of contraction caused by higher funding costs and clients' preference for fixed-rate home loans.

The credit impairment charge dropped to NZ$50 million from NZ$105 million.

Operating income jumped year over year to NZ$3.05 billion from NZ$2.89 billion, while other operating income rose to NZ$754 million from NZ$626 million, reflecting higher trading income and valuation gains on derivatives.

ANZ New Zealand represents all of Australia & New Zealand Banking Group's operations in New Zealand, including ANZ Bank New Zealand Ltd.

As of Aug. 14, US$1 was equivalent to A$1.27 and NZ$1.37.