ANZ Post $5 Billion Profit

ANZ Bank has announced that it has posted $5.66 billion for its full-year profit. The record profit is an indication that the company has expanded its earnings in the domestic and international operations.

The bank also said that its net profit for the year until Sept. 30 increased by about six percent compared to last year. Although the net profit was up, it’s still lower than expected.

The cash profit of ANZ Bank also hit industry expectations at a little more than $6 billion. The figure is also higher by about six percent compared to last year’s data.

Industry experts, however, said that despite the strong performance of ANZ Bank, its margins continue to weaken. Analyst David Ellis said that the increase in ANZ Bank’s core earnings is a good sign.

The downtrend in the second semester, though, meant that ANZ continues to struggle with higher funding costs. Ellis added that this must be a reflection of intense competition in the deposit rates of competing banks.

Other banks, including Commonwealth, Westpac and NAB, are also expected to announce strong results. Industry analyst said their combined profit for 2011-2012 should exceed $25 billion.

ANZ chief executive Mike Smith said he is happy with the bank’s performance as this was what’s expected earlier this year. He admitted, though, that conditions are changing and the year would be more challenging.

ANZ has earlier announced its continuous expansion in Asia.