ANZ boss Mike Smith has declared the bank is "firing on all cylinders" as strong demand for home loans and growth in its Asian business lifted it to a record $6.5 billion profit.
The bank's cash profit in the year to September 30 was up 11 per cent from the previous year, which Mr Smith attributed to the bank's long term growth strategy, especially its expansion into Asia.
"This result demonstrates that ANZ is firing on all cylinders," he told analysts on Tuesday.
"Importantly, the long term nature of what we are building at ANZ means there is still more gas in the tank."
Profit in ANZ's Asia focused International and Institutional Banking division grew by 15 per cent during the year, and Mr Smith said the region remained a crucial part of the bank's growth plans.
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"Asia is a key driver of global growth, its a key driver of Australia's growth and its a key driver of ANZ's growth now and in the future," he said.
The bank's focus over the next three years would be on lifting earnings and keeping costs under control, he said.
ANZ's net profit in the year to September, which includes one-off financial items, was $6.3 billion, up 11 per cent from the previous year.
Mr Smith rejected suggestions profits recorded by Australia's big four banks were too high.
"Without strong profitable banks in the economy you can't have a good, functioning, economy at all," he said.
"Having a strong and profitable banking system is one of the great advantages Australia has."
Profit in ANZ's Australian operations was up 11 per cent in the year, thanks in part to solid growth in home loans.
Morningstar analyst David Ellis said ANZ's financials had beaten expectations.
"The result was hard to fault with particularly strong performances from the Australian and New Zealand operations," he said.
ANZ will pay a final, fully-franked dividend of 91 cents, which takes its full year distribution to $1.64 per share, up from $1.45 last year.
Its shares climbed 39 cents, or 1.2 per cent, to a new record high of $33.63.
