ANZ has posted a statutory profit after tax of $2.29 billion for the half year ended 31 March, representing a remarkable 10 per cent increase when compared to the same time last year.

 

The results will undoubtedly place pressure on the bank to pass on the Reserve Bank’s 50 basis point cut in full, but the bank is staying reserved on whether it will commit to a cut.

 

The bank has committed to its rates mechanism, after it publically broke from the RBA’s mandated rate policy. Rather than shadowing the RBA, the bank now announces its own rates on the second Friday of every month.

 

“We do recognise that adapting to this environment creates major challenges. Our recent decisions on interest rates for customers in Australia and on employment within the Group reflect the need to reshape our business. Clearly though, we need to work harder to find new ways of responding to customer and community concerns about banking and to the changes that have been brought upon the banking sector by this environment,” ANZ CEO Mike Smith said.