ANZ (ASX:ANZ) doubles dividend on profit hike

Company News

by Michael Luu

Big-four bank ANZ (ASX:ANZ) has decided to double its interim dividend from last year’s rate to 70 cents per share, buoyed by increased cash profits and favourable economic conditions.

“Our disciplined approach to capital management also meant we could support customers through the COVID-19 pandemic without the need to dilute existing shareholders through equity raisings”.

The $82 billion company has reported an increase in cash earnings of 28 per cent, as ANZ snapped up cash profit of $2.99 billion in the six months ending on March 31.

The financial giant confirmed it was discontinuing coronavirus-related relief packages for home and business owners during the first half, as the economy transitioned towards recovery.

Australia’s third largest bank by market cap was able to approve loan applications worth a total of $500 million in the period.

However, the bank warned that pandemic threats have not fully retreated, “There is still significant uncertainty. You only need to look at how the pandemic is playing out overseas, as well as recent lock-downs, to realise how quickly the situation can escalate,”

ANZ has also emphasised its strong capital standing can prepare the business for potential scenarios of lockdown returns, mentioning a contingency fund of $4.3 billion to access.

Shares in the Australia and New Zealand Banking Group (ASX:ANZ) are trading 0.2 per cent higher  $28.90

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