Asian Market Good for ANZ

Mike Smith, the chief executive of ANZ, said that the Asian operation of the bank is doing well. The bank is expected to post a profit of some $6 billion in 2013.

ANZ has also announced that it posted a 6.2 percent yearly profit growth for the December quarter. The company also handed down $1.53 billion cash earnings.

The bank attributes the healthy standing with the strong performance of its global markets business, more prudent cost controls, and an increase on home loan customers and depositors.

Asia also appears to be a strong source of earnings for ANZ. The bank said its Asian operations—composed of Taiwan, Hong Kong, and China—is its third-biggest profit source. The first two profit sources for ANZ are Australia and New Zealand.

Smith said ANZ aims to strengthen its Asian business to give the company greater earnings diversification. He added that despite fears of China slowing down, Smith is upbeat about the Chinese market.

Smith also said the company continues to control costs to protect the bottom line.

Industry analysts agree that ANZ has performed solidly. Deutsche Bank analyst James Freeman said that ANZ needs to expand its margins and ensure profit growth.

Other industry analysts, however, seem to see things differently. They said that ANZ lagged behind its competitors, albeit slightly.