sydneyaustralia and new zealand banking group ltd reported a 20 rise in interim profit as the lender increased its home loan processing times in australia grew its new zealand mortgage business and kept an eye on costs the australian lender on wednesday said its net profit rose to 353 billion australian dollars us251 billion in the six months through march looking ahead the economic environment is likely to be very different and we will continue to adjust our risk appetite business settings and investment priorities as required said chief executive shayne elliott the reserve bank of australia on tuesday raised its official cash rate to 035 from a recordlow 010 this was the first increase since november 2010 with the rba signaling more raises were likely in coming months which may have an impact on consumer confidence all major banks have now passed on the rba rate increase in full to variable rate mortgage customers cash earningsa measure closely tracked by analysts that strips out noncore items such as revenue hedges and treasury sharesrose by 4 to a311 billion when measured only using continuing operations anzs cash profit was also a311 billion anz said costs were tightly managed with run the bank expenses coming in flat for the half with investment focussed on operational resilience and new growth opportunities the bank declared a final dividend of a072 per share compared with a070 a year earlier consensus forecasts compiled by factset projected anzs firsthalf profit would be a296 billion with an interim dividend of a071 per share still anzs net interest marginthe difference between the interest income generated and the amount of interest paid out to lenderwas 158 compared to 163 a year ago australian bank nims have been under pressure amid the low interest rate environment which helped to drive a house price surge in australia this has spurred increased competition in the mortgage market between lenders while also seeing margins squeezed investments in our home loan processing capacity in australia drove positive balance sheet momentum while processing times are comparable to our major peers we are on target to grow in line with the australian major banks by the end of our financial year but will do so with an eye to our margin performance said mr elliott anzs common equity tier 1 capital ratioa key measure of a banks ability to withstand financial shockswas 115 but it was 81 basis points lower than the second half of the 2021 fiscal year due to an improvising risk profile anzs total credit provision result for the first half was a net release of a284 million an improving risk profile during the half drove the collective provision release and is a reflection of both observed portfolio strength and a recognition that some of the more acute risks from the pandemic are receding said anz