Australia and New Zealand Banking Group (ASX:ANZ) reported a 27 per cent rise in first-quarter profit, rising to $1.4 billion from a year ago.
The result met expectations as bad debts charges fell. The bank is on track for a record half year.
The bank said margins increased during the quarter, but cautioned that higher funding costs were still being felt.
ANZ has used the deposit-heavy Asian operations to cushion rising funding costs.
ANZ recorded a profit of $4.5 billion in the year to September 30, 2010.
