ANZ Underwhelms

  The market wasn't all that convinced by ANZ's interim profit, not that it looked light on, just that there was less growth than expected, especially from Asia where the bank is expanding, and Australia.In Australia, which supported the group's improvement, growth was tepid, and with expectations of the same conditions in the current half, the outlook seems to have soured a bit for the bank and its peers.The March 31 half year reported & #160;produced a higher cash earnings, up 36% at & #160; & #36;2.36 billion, but that was from lower bad debt provisions, dividend was boosted 6c to 52c a share.But that 13% lift in payout (on a capital base up 17% because of share issues in the past year) failed to win over investors.And the interim was still 13% under the level in the first half of 2008, thanks in part to the expanded capital base.ANZ shares eased as trading went on and closed off 58c, or 2.6%, at & #36;24.20, & #160;helping take the whole market lower.The shares of rivals in the shape of the NAB and Westpac and the CBA and Macquarie, also dipped into the red yesterday.Macquarie reported its results this morning (see below).The market is now not as confident about interim results next week from the NAB and Westpac.The ANZ said & #160;statutory net earnings for the six months ending March 31 & #160;were & #36;1.92 billion, & #160;boosted by the & #36;290 million reduction in provisions for impaired loans and assets.Its preferred measurement, & #160;underlying profit, which excludes non-core businesses and operations either sold or shut down - produced a net profit of & #36;2.29 billionRevenue rose 10% to & #36;7.2 billion.Earnings were pushed up by the & #160;32% fall in & #160;bad debt charges and the & #160;ANZ's Australian division boosted & #160;profit by 33% to & #36;1.269 billion from the March half year of 2009, & #160;as the lower bad debts boosted contributions from its institutional and commercial businesses, while & #160;the wealth business was boosted by the full control of the ING joint venture in the half.But basic banking, lending to housing and business was flat and the & #160;intense competition for deposits trimmed returns and made life tougher.First-half cash earnings of & #36;2.37 billion were slightly ahead of analyst forecasts of & #160; & #36;2.26 billion (and compares with last year's & #160;first-half result of & #36;954 million).Profit at its Asia Pacific business dropped 27% to & #36;305 million after trading income & #160;fell.The & #160;institutional business profit rose 12% to & #36;818 million from a year earlier, mostly on higher loan rates. New Zealand saw & #160;profit fall 35% to & #36;171 million from a year earlier, although earnings were up on the September half year.And group & #160;net interest margin, the main indicator of how the bank is travelling, rose to 2.43% as the repricing of business loans was offset by higher funding costs, especially retail deposits.That was up from 2.36% in the September quarter and 2.22% in the March quarter of last year.The Australian net interest margin, the most important, was 2.64% in March from 2.56% in the September quarter and 2.45% in the March half year of 2009. & #160;  

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