By Alice Uribe
SYDNEY--Australia and New Zealand Banking Group Ltd. said its interim profit rose by 90% as improving credit conditions resulted in a release of almost 500 million Australian dollars (US$386 million) during the half.
Australia's fourth-largest lender by market capitalization reported a net profit of A$2.94 billion Australian dollars for the six months through March.
Cash earnings--a measure closely tracked by analysts that strips out non-core items such as revenue hedges and treasury shares--were A$2.98 billion. When measured only using continuing operations, ANZ's cash profit was A$2.99 billion.
"Improving credit conditions resulted in a release of almost A$500 million during the half. While the pandemic hasn't resulted in large credit losses to date, we still have almost A$4.3 billion in reserve if conditions deteriorate," Chief Executive Shayne Elliott said.
ANZ's result came days after the lender said its first-half cash profit would take a A$817 million hit due to several large or notable items including customer remediation and restructuring charges.
The lender declared an interim dividend of A$0.70 per share, compared with A$0.25 a year ago.
Write to Alice Uribe at email@example.com
Corrections & Amplifications
This item was corrected at 6:25 p.m. ET to show that ANZ declared an interim dividend of A$0.70 per share, compared with A$0.25 a year ago. An earlier version incorrectly said the year-ago dividend was A$0.35.
(END) Dow Jones Newswires