By Alice Uribe

SYDNEY--Australia & New Zealand Banking Group Ltd. maintains its collective provisions balance, albeit a level higher than before the pandemic, as it takes into account risks to the domestic and global economic outlook from factors such as higher inflation and interest rates.

In a trading update for the three months through June, the Australian lender said it had set aside 3.78 billion Australian dollars (US$2.57 billion) at the end of June, which was A$403 million higher than pre-Covid levels at Sep. 30, 2019.

"This was a pleasing quarter where all our businesses performed, particularly our home loan business in Australia. While rising inflation and interest rates are starting to impact some customers, household and business balance sheets remain strong," said Chief Executive Shayne Elliott.

ANZ said that strong lending and margin momentum was evident across all its major businesses in the third quarter, with revenue up 5%. Its Australian home-loan business grew by A$2.0 billion in 3Q.

"We remain on track to grow in line with the Australian major banks before the end of the financial year and are delivering growth with an eye to maintaining margin performance and credit quality," said ANZ.


Write to Alice Uribe at alice.uribe@wsj.com


(END) Dow Jones Newswires

07-17-22 1844ET