Mediaboss Marketing

Australia and New Zealand Banking Group said first half profit rose 5 percent to a record high as strength in its growing international operations outweighed shrinking margins at home.

Australia's top four banks raked in record profits last fiscal year and Australia and New Zealand Banking Group (ANZ) remains on track to continue this streak with its push into Asia starting to pay off.

Getty Images

"Their Asian strategy is probably one of the highlights, that is going quite well, and I think for the first time they can show the proof in their strategy, which is a very strong positive because that's only going to get better as time goes on," said Peter Vann, senior analyst at Constellation Capital Management, which owns ANZ shares.

The growth in profits comes at a time when funding costs are still elevated, competition for deposits is fierce and ANZ feels the tight market conditions warrant raising of interest rates independently of the central bank.

Underlying first-half profit at ANZ, Australia's fourth-largest bank, rose to A$2.97 billion ($3.07 billion) from A$2.82 billion a year ago. The earnings matched the average forecast of eight analysts surveyed by Reuters.

Underlying profit strips off one-offs and investment gains and losses.

ANZ is trying to model itself on HSBC

Mike Smith, ANZ Chief Executive Officer, said the strategy was paying off with good results outside of Australia and in its internationally focused Institutional division.

Net interest margins fell to 2.38 percent overall, with Australian margins down 13 points as competition for deposits heated up and funding costs rose.

View post:
ANZ Posts Record First-Half as Offshore Ops Grow