ANZ cuts dividend as profit slumps 24.3 percent

A $717 million hit from writedowns and restructuring charges pushed cash profit for the six months to March 31 down from $3.676 billion a year ago, with an increased $918 million provision for bad debts also hitting the bottom line.

"ANZ has continued to see pockets of weakness associated with low commodity prices in the resources sector and in related industries," the bank said in a statement on Tuesday.

"Increased provision charges in the first half include charges related to a small number of Australian and multi-national resources related exposures."

Writing ahead of Tuesday's results, UBS analysts estimated ANZ's exposure to resource-related impaired assets at $688 million.

ANZ chief executive Shayne Elliott, reporting his first results since taking over from Mike Smith in January, said the $717 million cost of restructuring and consolidating would position the bank for stronger future profit growth.

"This result reflects a challenging period for banking and we have taken the opportunity to move decisively and adapt," Mr Elliott said.

"For the immediate future, we are in a period of consolidation, simplification and transition."

Cash return on equity slumped from 14.7 per cent to 9.7 per cent and ANZ cut the interim dividend six cents to 80 cents, fully franked.

ANZ'S FIRST-HALF SLUMP

* Cash profit down 24.3 per cent to $2.782b

* Net profit down 21.9 per cent to $2.738b

* Interim dividend down six cents to 80 cents, fully franked

AAP.