ANZ posts 6.2% cash profit increase

ANZ posted a 6.2 percent rise in first quarter cash earnings.

The bank reported cash profit of A$1.53 billion ($1.58 billion), compared with A$1.49 billion a year ago, attributed to favorable trading conditions and a rise in customers.

It is trying to model itself on HSBC by turning into a regional Asian lender, and is seeking to double earnings from Asia to up to 30 percent of its total by 2017.

"Our strategy has seen us benefit from volume growth in Asia and our exposure to these opportunities is an increasing important part of the group's earnings with Greater China our third largest source of profits after Australia and New Zealand," said ANZ Chief Executive Mike Smith.

Smith said the bank's business performance was solid and in line with expectations outlined in October 2012 when ANZ released its 2012 full year results.

"This has seen ANZ continue to perform despite soft economic conditions in Australia and New Zealand, and cautious behavior by consumers and business," he said.

Sith added that ANZ had won market share in Australian and New Zealand in regards to retail deposits and home loans during the quarter.

"Productivity improvement is a key focus ensuring that we can continue to invest in our super regional strategy while also maintaining our financial performance," Smith said.

Earnings were constrained by a weaker performance in the bank's international and institutional banking business, where it said margins remain under pressure, while the environment for wealth management "remains subdued."

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