Cost cuts and a business expansion in Asia have proven to be an effective business strategy for the Australia and New Zealand Banking Group as third-quarter profit jumped 10 per cent from a year ago.

Australia's third-biggest lender by market value, based on an unaudited trading update Friday, reported net profit rose to A$4.5 billion (US$4.6 billion) in the nine months to June 30 compared from a year earlier.

"It looks good," market analyst Peter Esho, said in Bloomberg News. "They've maintained margins and the lending growth looks strong."

ANZ has the biggest Asian presence among Australia's top four banks. The bank noted margins at home had "recovered slightly" since end March and it is hopeful it will be able to meet a 20 per cent earnings target from Asia and overseas this fiscal year.

ANZ has stakes in China's Shanghai Rural Commercial Bank and the Bank of Tianjin at 20 per cent, in Malaysia's AmBank at 24 per cent and in Indonesia's PT Panin Bank at 39 per cent. It also maintains a 40 per cent hold in the Philippines' Metrobank Card and owns 18 per cent of Saigon Securities. Overall, ANZ has invested $9 billion of its capital in Asia.

"Essentially, there's been no surprises during the quarter," Mike Smith, chief executive, told analysts on Friday.

"And, perhaps, in the post-GFC (global financial crisis) environment that's really what investors and customers are looking for in a bank.

Shares of ANZ climbed 49 cents, or 2 per cent, at $24.39 at 1136 AEST.

"We have managed ongoing funding and competitive pressures well, with Group margins stable relative to the end of the first half," Mr Smith said.

"While the credit environment reflects the pressures in the broader economy there have been no developments which would lead us to alter our provision outlook," he added.

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