Chief executive Mike Smith said the bank was performing well, but also conceded sections of the Australian economy were "softer than expected. “ANZ has continued to perform well with strong results in Asia and consistent performances in both New Zealand and Australia despite parts of the Australian economy being a little slower than expected," he said in a statement.
Macquarie analyst Mike Wiblin described the trading update as "pretty soft" and said the bank was subtly toning down its guidance by adding the disclaimer that it was subject to economic conditions. "It’s softer than we expected, obviously affected by weakness in global markets," said Mr Wiblin, who has an "underperform" rating on the stock. "We continue to be concerned about the slowdown in Asia.
Bell Potter’s TS Lim said the bank was likely to hit the market consensus expectations for full-year profit as its fourth quarter was typically slightly stronger than the third. "I still think they are on track for a $7 billion profit for the full year," he said. 2 Aldi to step up challenge to supermarket giants Coles … 3 Property developer jailed for ‘Titanic’ $100m … 5 Santa comes early for Telstra shareholders. And …
ANZ Bank has grown its cash profit by 8 per cent over the first three quarters of its financial year and says it is on track to hit its profit guidance, despite softer revenue growth and leaner profit margins.
While margins in institutional lending are being squeezed by very low interest rates, the same forces were helping to contain provisions, the bank said, adding that conditions were gradually improving. “Trading conditions have shown some signs of improvement coming into the final quarter of [financial year 2014].
Read more here: SMH