In a statement to the market, ANZ said its statutory net profit after tax for the first half of 2021 was $2.94 billion, up 45 per cent as it released $491 million of credit provisions.

However the bank’s cash profit before credit impairments and tax was $3.94 billion, down 10 per cent on the previous half.

ANZ chief executive Shayne Elliott said work done at the bank in recent years to “simplify our operations, strengthen our balance sheet and de-risk the group” had helped ANZ to deliver a strong result.

“Following the trends of the first quarter, all parts of our business performed well,” Mr Elliott said.

“Costs were down 2 per cent, and we also increased investment in new digital capability that will provide ongoing productivity improvements and better customer outcomes.”

Mr Elliott added that ANZ was still “well placed to continue to support the ongoing economic recovery and customers doing it tough” and had almost $4.3 billion in reserve if conditions deteriorated.

“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,” he said.

Mr Elliott said the bank will double its final dividends, paying shareholders 70cps, with the strong result underpinning higher dividend payments.

ANZ’s 70¢ first-half dividend represents a 180 per cent increase on the 25¢ paid in 2020 and higher than the market participated 63¢ dividend.

Mr Elliott said ANZ was now “the third largest home lender in the [Australian] market” after it made around 92,000 new home loans during the period.

While in New Zealand, the bank announced 42,000 new home loan accounts, maintaining its position as a sector leader.