ANZ has posted a half-year cash profit of $3.5 billion, beating forecasts by about $3.4 billion.

Australia's third largest bank by market capitalisation lifted its cash profit by 11 per cent, saying it is “firing on all cylinders”.

The $3.5 billion figure compares to the $3.18 billion result in the same period last year

ANZ’s statutory net profit increased 15 per cent to $3.4 billion, leaping up from $2.9 billion a year ago.

ANZ chief executive Mike Smith says the numbers “demonstrate consistent progress with ANZ's long-term strategy to grow core franchises in Australia and New Zealand (and) to build a significant and profitable franchise in the Asia-Pacific.”

The bank says it now has the fastest growth in mortgage customers against the other three of the big four banks.

Profit at ANZ’s Australian division rose 5 per cent.

ANZ’s net interest margin - the balance between money lent and the cost of borrowing it - fell to 2.15 per cent from 2.24 per cent last year.

The bank says that while business customer confidence has not improved as it would have liked, profit from international and institutional activities in Asia, the Americas and Europe grew by 43 per cent.

ANZ’s cash payout to shareholders is up by 14 per cent, meaning each will see an interim dividend of 83 cents a share.