Shares in Australia and New Zealand Banking Group (ASX: ANZ) climbed 1.3 per cent in morning trade after the bank revealed a cash profit of $1.79 billion for the quarter ending June 30, 2017. The cash profit is up 5.3% or 0.3% before provisions for bad debts, with total revenues for the quarter down 0.3%.
The group's net interest margin remained flat, with customer deposit growth up 2.3% and net lending growth of 2%. The group also flagged that it achieved "above system" growth in residential mortgages thanks to growing demand for its loans from owner-occupiers in particular.
The group's chief executive is continuing to restructure the business via operational divestments in Asia and across its capital-intensive life insurance business. Elsewhere cost cutting is being implemented as the bank attempts to lead the way in adjusting to the digital future of banking.
The bank trades on 13x earnings per share, with a fully franked dividend yield of 5.4%.
