ANZ records strong profits on the back of mortgage growth

ANZ, Australia’s third largest bank, has recorded a 16 per cent surge in the company’s underlying earnings for the first four months of the 2010 financial year.

The bank increased its underlying profit to $1.6 billion on the back of mortgage growth and improved margins.

CLSA banking analyst Brian Johnson told the Herald Sun that the figures reflected the continuing strength of the major banks.

He said: "The ANZ result mirrors the improving trend in the sector that was evident in the Westpac and Commonwealth Bank profits announced earlier in the month."

The newspaper noted that while Westpac chose to reprice some of its loans above than Reserve Bank rate at the end of last year, ANZ has also hiked up rates to boost the profitability of its home loans and credit cards.

This week, Lesley Parker, a finance writer for the Sydney Morning Herald, said that mortgage holders can save money by investing their spare cash in a home loan offset or redraw facility – a possible consideration for anyone who chooses to compare home loans.

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