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ANZ 1H profit grows 38%

ANZ 1H profit grows 38%

ANZ (ASX:ANZ) on Tuesday reported a 38% year-on-year increase in 1H profit, but said it was facing a number of pressures on its domestic and international performance.

The company said its net profit for the half-year ending in March grew to $2.7 billion, while underlying profit grew 23% to $2.8 billion.

ANZ's Australian profit grew by just 2%, with results impacted by a 69% decrease in provision charge due to the impact of recent severe weather events including the Queensland flood.

But New Zealand profit was up 19% in local currency terms, and profit from the Asia Pacific, Europe and America region grew 12%.

But ANZ CEO Mike Smith said that while he is confident the company is well-positioned going into the second half, “the operating environment is continuing to present challenges.

“Parts of the Australian economy have hit a flat spot, with consumers and businesses becoming more conservative after the financial crisis,” he said.

The strong Australian dollar has also impacted international earnings, he said.

“Nevertheless our [international] strategy is giving us a greater exposure to Asia's growth and it's aligning us closely to the new and emerging growth segments of the Australian and New Zealand economies,” Smith added.

ANZ shares fell 1.38% on Tuesday to $23.965.

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Tags financial resultsAustralian dollarANZASX:ANZ

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