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SYDNEY, April 30 (Reuters) - Australia and New ZealandBanking Group Ltd, the country's fourth-largest bank,on Tuesday reported a 10 percent rise in first-half cashearnings to A$3.18 billion and announced a forecast-bustingdividend.
The result was slightly ahead of analysts' expectations of aA$3.14 billion profit, according to Thomson Reuters StarMinedata, as the bank booked solid earnings in its international andinstitutional banking division and its Australian retail bankingunit.
The bank's shares are likely to receive a bounce from theannouncement of a A$0.73 dividend, an 11 percent rise on lastyear and above the $0.67-$0.72 consensus average forecast range.
The bank, which is trying to model itself on HSBC HoldingsPlc by turning into a regional Asian lender, said itintended to maintain a full year dividend payout in the range of65 percent to 70 percent of cash earnings.
Provisions for bad and doubtful debts dropped 13 percent toA$599 million.
"Provisions were slightly better than expectations and whilethe credit outlook remains stable we believe ongoing stress incertain parts of the economy warrants a cautious outlook," ANZChief Executive Mike Smith said in a statement.
Net interest margins, a key measure of core bank profits,were steady at 267 basis points.
Australia's "Big Four" banks - ANZ, National Australia BankLtd, Commonwealth Bank of Australia andWestpac Banking Corp - are expected to post combinedrecord cash profits of more than A$13 billion for the firsthalf, according to analysts.
It was the first time ANZ has focused on cash earnings,which excludes one-offs and non-cash accounting items, for thehalf-year.
