ANZ: Aussie credit quality 'continues to improve'

ANZ has reported profits after tax of $3.6 billion.

Aussie credit quality has continued to improve at one bank.

ANZ made the announcement as part of its market update from nine months up to June 30th 2010, in which it revealed an underlying profit after tax of $3.6 billion - a 26 per cent increase compared to the prior corresponding period (PCP) in 2009.

The organisation supported its improved credit by noting there was a provision charge of $1,440 million - a 34 per cent decline PCP.

ANZ chief executive officer Mike Smith said the business maintained a good performance alongside the solid state of the Australian economy, while financial systems across the world are increasing at various speeds.

He added: "We are also performing well for our customers and the community. This quarter ANZ was named Home Lender of the Year in Australia.

"We announced a new approach to community investment to help focus our contribution and to provide more opportunities for staff to be involved with the communities we serve."

He pointed out this all ties in with the HSBC's commitment to construct a super regional bank.

The organisation - which offers ANZ credit cards and bank accounts among other products - achieved an income rise of nine per cent PCP to $11.6 billion and it also reported a group lending increase of more than three per cent.

Compared to the second quarter, its third quarter income went up by around five per cent.

In addition, the corporation was not the only bank to announce profits this month after HSBC Australia declared a pre-tax profit of $152 million, an increase of 28 per cent in the first half of 2010.

The firm's chief executive officer Paulo Maia observed that the company had an "exceptionally strong funding and liquidity position", which was reinforced in the country as its customer deposits rose by 26 per cent.

By Mark Hornby