Ebene News – AU – ANZ takes market share and increases its dividend

ANZ reported a 126% increase in cash profit to $ 2.9 billion and boosted the dividend to 70 ¢ a share thanks to the resumption of business activity and the resumption of the real estate market

The improved economic outlook enabled the bank to generate net credit provisions of $ 491 million supporting the bottom line and supporting the dividend

Improvements to the bank’s systems and processes have enabled it to take over from the third largest mortgage lender in half

ANZ Bank Managing Director Shayne Elliott said the bank “did not need” the funds set aside “for a rainy day” Meredith O’Shea

ANZ chief executive Shayne Elliott said the bank and the economy were in a much better position than 12 months ago, but said he expected the bank could do even better

“What we are seeing here is really a rebound, just like the economy we have seen rebound, just like the bank’s bottom line has rebounded,” said Mr. Elliott

Five years after the start of a strategy based on rationalization and simplification, the bank reported a decrease of 1% in spending in the previous half-year and 2% compared to the previous comparable period

Evans and Partners analyst Matthew Wilson said that excluding the $ 817 million of big and notable items announced last Friday, earnings exceeded expectations by around 5%. p>

M Wilson said it was “tough on the main profit line” but “ANZ is fit and well positioned to take advantage of Westpac’s cost reduction program”

ANZ added 92,000 new mortgage accounts worth $ 281 billion in Australia during the half year and another 42,000 in New Zealand worth $ 90 billion Australian Retail and Commercial Banking cash profit increased 49% to $ 1.597 billion excluding major and notable items

M Elliott noted that revenue was down as the bank charged customers less in fees while stressing that the pivot of the outcome was actually the release of bad debt provisions set aside for the pandemic.

“It turned out that the economy behaved better, we didn’t need all of these reserves, so we freed up a bit of it and that’s what really kicked it up a notch. inch to result this half “, M Elliott mentioned

The net provision reversal of $ 491 million follows a charge of $ 1.064 billion in the previous half year, bolstered by the continued impact of government and bank support programs Benefit is a reversal collective allowance of $ 678 million and an individual allowance charge of $ 187 million

M Elliott also expressed some caution about the outlook, saying many of the bank’s clients were making an effort while referring to recent coronavirus outbreaks overseas.

“India, a country where we have a deep history, is going through a particularly difficult time Despite the circumstances, our team in India is working hard to do their best for our customers and their determination has been inspiring,” said declared M Elliott

“We only saw another instant lockdown in WA recently and the world is far from out of the woods,” said M Buggle

Bank reported 163% net interest margin or 3 basis points ahead of expectations ANZ reported 110 basis point increase in level 1 (CET1) common stock ratio , a common measure of financial strength, of 124 percent

ANZ’s first half dividend of 70 ¢ represents a 180% increase over the 25 ¢ paid in 2020 and much more than the 63 ¢ expected

The bank postponed its decision to pay a first half distribution last year following the advice of the prudential regulator before choosing to make a payment in September

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ANZ Bank reported 126% increase in cash profit to $ 2.9 billion and established itself as the third largest player in mortgage lending

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Ebene News – AU – ANZ takes market share and increases its dividend

Source: https://www.afr.com/companies/financial-services/anz-takes-market-share-pumps-up-dividend-20210504-p57otk