ANZ credit card growth 'reflects on its profit'

ANZ credit card growth was one factor in the bank recording a $1.6 billion after-tax profit.

A growth of ANZ credit cards helped the bank to record a $1.6 billion after-tax profit for the four months up to the end of January 2010, which should please people with ANZ savings accounts or bank accounts.

The bank – which offers the ANZ Balance Credit Card among other products – also managed an increase in mortgages, but there was less demand for corporate and lending to big businesses, according to Business Day.

ANZ said credit quality was "showing signs of improvement" despite stabilising towards the end of 2009.

Improved margins and a fall away in provisions were both major players in the bank's 16 per cent profit increase and that triggered a share price rise of 89 cents.

This news comes after National Australia Bank – which offers NAB Classic Banking – suffered a decrease in its share price by 2.7 per cent, Reuters reports.

By James Leyfield