Australia & New Zealand Banking Group Ltd. has reported that profits soared to 69 per cent as a number of its nonperforming loans dropped significantly.

The Melbourne-based ANZ Bank said its net income in the six months ended Sept. 30 climbed to A$2.58 billion ($2.5 billion) from A$1.53 billion in the year- earlier.

ANZ Bank is still on the expansion mode in Asia and is currently conducting a due diligence on the Korea Exchange Bank, which Citigroup Inc. has estimated to be at A$6.5 billion.

Sydney-based Capital Management Ltd. said in a Bloomberg report that the rising domestic business costs and engaging in higher growth markets would be beneficial to ANZ Bank as well.

The bank's shares have advanced 5.1 per cent this year among the six-member S&P/ASX 200 bank index, which has declined 6.1 percent.

KEB Stake

ANZ Bank CEO Michael Smith said in an interview today with reporters in Melbourne: "The due diligence goes on. It's not an easy process in somewhere like Korea. It's just progressing."

Mr. Smith refused to give the price as to which KEB's shareholder the Dallas-based Lone Star Funds is selling its stake.

When asked if an announcement will come in next few weeks, Smith said today "I think it's going to be a bit longer than that. It is still very speculative."