ANZ's profits jumped a measly 1% to US$3.04b

Improved results due to cost cutting and better Asian business.

Australia & New Zealand Banking Group Ltd. reported that its net profit for the six months ended March 31 rose almost 1% year-on-year to US$3.04 billion.

Australia's third-biggest lender by market value said cash profit jumped 10% to US$3.27 billion.

Chief Executive Mike Smith said the results validated the bank’s strategy of deriving growth from Asia's fast-growing economies. ANZ now earns 20% of its revenue from operations outside Australia and New Zealand.

"The strategy that we have to become a super-regional bank makes more sense now than it ever did," Smith said.

The bank said it had managed to cut costs by 8%, partly by shipping some administration and technology jobs offshore. Strong growth in its Asian commercial business saw revenue rise to 32% from a year earlier.

ANZ’s net interest margin stood at at 2.67% as lower wholesale funding costs were offset by fierce rivalry for deposits and lower earnings.