August 13, 2018 / 10:39 PM / 2 years ago

UPDATE 1-ANZ's impaired assets fall in third quarter

(Adds details on provision charge, background)

Aug 14 (Reuters) - Australia and New Zealand Banking Group on Tuesday said impaired assets fell 36 percent in the third quarter due to stricter credit controls.

Gross impaired assets over the quarter fell to A$1.88 billion ($1.37 billion) from A$2.95 billion a year ago, ANZ said.

The bank’s common equity tier 1 ratio was 11.07 percent at June 30, marginally higher from 11 percent at March 31, it said.

The Australian financial sector has been facing greater regulation and scrutiny following years of scandals and an ongoing public inquiry.

ANZ defines impaired assets as financial assets where doubt exists as to whether the full contractual amount will be received in a timely manner, or where concessionary terms have been provided because of financial difficulties of the customer.

In an attempt to build its mortgage books, ANZ reduced the variable mortgage rate by 34 basis points to 3.65 percent in May.

For the June quarter, total credit risk-weighted assets fell 0.6 percent from three months prior, while provision charge came in at A$121 million.

The bank did not disclose profit or revenue in its limited quarterly update after it decided to stop reporting quarterly earnings figures earlier this year. ($1 = 1.3755 Australian dollars) (Reporting by Susan Mathew in Bengaluru; Editing by Rosalba O’Brien)

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