ANZ posts $3.5 billion half-year profit day after raising interest rates
Posted On May 4, 2022
ANZ has recorded a $3.5 billion half-yearly profit after tax and warned of a “very different” economy following yesterday’s rate hike by the Reserve Bank of Australia.
Posting its half-yearly results to the market this morning, ANZ recorded a statutory net profit after tax of $3.53 billion, up 10 per cent from the previous half.
Cash profit for the bank was down 3 per cent to $3.1 billion.
Yesterday the RBA increased interest rates by 25 basis points to 0.35 per cent, a move which will see internal costs for all banks grow.
Less than five hours after the RBA moved the official cash rate, ANZ informed customers it would increase variable interest home loans in Australia by the same amount of 0.25 per cent.
“In making this decision we considered various factors including the change in the official cash rate, along with the impact on our customers and our business performance,” ANZ’s group executive Australia of retail, Maile Carnegie, told customers.
“However, we know some people are doing it tough and we encourage any ANZ home loan customers facing difficulty to contact us so we can work through a range of support options we have available.”
The 25 basis point change will increase monthly repayments by $57 on an average home loan of $450,000 for an owner occupier paying principal and interest.
All four of Australia’s big banks have increased their rates following the RBA’s decision.
Today, ANZ’s chief executive officer Shayne Elliott said the bank was “well placed” to tackle the forecast economic conditions ahead.
“Looking ahead, the economic environment is likely to be very different and we will continue to adjust our risk appetite, business settings and investment priorities as required,” he said.
“We are already seeing increased demand from our business customers and we are well placed to continue to support them as they manage in a world of higher inflation and interest rates.
“For ANZ, we will continue to focus on the long term – investing for tomorrow and not just running today.
“We have made good progress in building a resilient, agile bank for the future.
“Our culture is strong and we have an embedded sense of purpose as an organisation – to shape a world where people and communities thrive.”
ANZ shareholders will receive a proposed interim dividend of 72 cents per share, fully franked.