- by cnn
- 15 Aug 2024
On Friday, ANZ unveiled a record six-month cash profit of $3.8bn, underpinned by a string of interest rate hikes, for the reporting period to the end of March. It represented a 23% lift from a year ago, a period which notably did not include any increases in the official cash rate.
The results resembled those posted a day earlier by National Australia Bank, which recorded a 17% surge in six-month profit to $4.07bn.
Deposits are crucial for banks, given they are the main funding source to underpin loans to other customers and for investments.
Investment bank Macquarie Group also recorded a bumper profit on Friday of $5.2bn over a 12-month period. Unlike the big four retail banks, it generates the bulk of its profits in international markets, although it has been growing its Australian mortgage book.
The financial reporting period overlaps with the rapid-fire cash rate increases by the Reserve Bank that have lifted rates 11 times since May last year to 3.85%.
Home, investment and business owners grappling with rising loan repayments have also contended with inflation-fuelled price increases for everything from groceries to electricity and food bills during that period.
While ANZ and NAB have reported modest levels of bad debts, the growing financial pressures are yet to be realised.
Thirty years ago today, Air New Zealand launched daily direct flights between Auckland and Queenstown.
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