ANZ’s institutional bank, which receives the most capital of ANZ’s divisions, was the strongest performer, posting a record half result with revenue up 35 per cent to $3 billion, driven by more payments processing and servicing of other financial institutions. Its contribution to the bank’s cash profit doubled.

The commercial division grew revenue by 30 per cent to $2.6 billion, with loans up by 4 per cent but deposits falling by 3 per cent. Retail customers deposits grew by 6 per cent, the same level as retail loans. New Zealand also performed strongly.

ANZ’s common equity tier 1 capital ratio increased to 13.2 per cent, up from 11.5 per cent a year ago, while cash return on equity was also higher at 11.4 per cent, up from 10 per cent at the half last year.

ANZ lifted its credit impairment charge to cover for future bad debts. Mr Elliott said “we understand that sustained higher inflation and interest rates create further challenges for some households and businesses across the economy”.

However, he added ANZ enters the next half “with a business structure that brings the benefits of geographic and product diversification. We have a robust capital position, credit loss provisions higher than any other time pre-COVID, a strong and diverse deposit base and a track-record of execution”.

More to come