ANZ Bank, Insulated From Credit Crisis, Posts Record Profit By Stuart Kelly
Oct. 25 (Bloomberg) -- Australia & New Zealand Banking Group Ltd., the nation's third largest, posted record second-half profit on new branches and increased deposits, insulating the bank from higher funding costs amid a global debt crisis. Net income climbed 11 percent to A$2.08 billion ($1.88 billion) in the six months ended Sept. 30, from A$1.88 billion a year earlier, the Melbourne-based bank said in a statement today. That compared with a A$2.02 billion median estimate of six analysts compiled by Bloomberg. Chief Executive Officer Michael Smith, who joined the bank this month from HSBC Holdings Plc, said the credit environment should remain ``benign''. Higher deposits are helping Australia's biggest banks increase lending at the fastest pace in almost 18 years and take market share from mortgage companies such as Rams Home Loans Group, who are struggling with rising funding costs in debt markets. ``If anything, the big banks like ANZ are set to benefit as subprime shakes out the competition from non-bank lenders,'' said Atul Lele, who helps manage the equivalent of $380 million, including ANZ shares, at White Funds Management in Sydney before the result. ``I'm very enthusiastic that we'll keep seeing stronger earnings.'' ANZ Bank's result may herald increased earnings at National Australia Bank Ltd., the nation's biggest, and Westpac Banking Corp., which report earnings in the coming weeks. Westpac, the fourth-largest, bought Rams's 92 outlets this month after the non- bank lender failed to refinance more than A$6 billion in loans. To contact the reporter for this story: Stuart Kelly in Sydney [EMAIL PROTECTED] *Last Updated: October 24, 2007 18:24 EDT*
