(Reuters) – Australian lender ANZ Group reported lower-than-expected annual earnings on Friday as intense deposit and lending competition and rising costs impacted its margins.
Australian banks have been struggling to grow profit recently because of stubbornly high expenses and a fierce price war between lenders as borrowers look for a better deal on loans and their deposits.
The country’s fourth-largest lender by market value reported cash profit of A$6.73 billion ($4.49 billion) for the year ended Sept. 30, missing the Visible Alpha consensus of A$6.82 billion and below last year’s A$7.41 billion.
Net interest margin, a key measure of profitability, fell 13 basis points from last year to 1.57%.
It proposed a final dividend of 83 Australian cents apiece, compared with 94 Australian cents apiece handed out last year.
($1 = 1.4972 Australian dollars)
(Reporting by Sameer Manekar and Rishav Chatterjee in Bengaluru; Editing by Maju Samuel)
