ANZ (ASX:ANZ) on Tuesday reported a 38% year-on-year increase in 1H profit, but said it was facing a number of pressures on its domestic and international performance.
The company said its net profit for the half-year ending in March grew to $2.7 billion, while underlying profit grew 23% to $2.8 billion.
ANZ's Australian profit grew by just 2%, with results impacted by a 69% decrease in provision charge due to the impact of recent severe weather events including the Queensland flood.
But New Zealand profit was up 19% in local currency terms, and profit from the Asia Pacific, Europe and America region grew 12%.
But ANZ CEO Mike Smith said that while he is confident the company is well-positioned going into the second half, “the operating environment is continuing to present challenges.
“Parts of the Australian economy have hit a flat spot, with consumers and businesses becoming more conservative after the financial crisis,” he said.
The strong Australian dollar has also impacted international earnings, he said.
“Nevertheless our [international] strategy is giving us a greater exposure to Asia's growth and it's aligning us closely to the new and emerging growth segments of the Australian and New Zealand economies,” Smith added.
ANZ shares fell 1.38% on Tuesday to $23.965.
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