Retail deposit growth has driven a stronger funding position for ANZ, the bank has stated.

In a market update, ANZ has reported an unaudited underlying profit after tax of $4.2bn for the nine months to June, 16.1% above the previous corresponding period. The bank said it had also strengthened its funding position, with customer deposits increasingly driving its funding.

"Customer funding now represents 61% of ANZ's funding base, up from 50% in 2008," the bank said. "This structural improvement has reduced ANZ's reliance on both short-term and term wholesale funding."

ANZ said it saw retail deposits grow at 1.8 times system, and a 10.1% increase in overall deposits year-to-date. While deposit growth outstripped lending, the bank said its commercial loan book grew by 2.4% in the third quarter, and that mortgage lending volumes were "improving after a period of softness in the second quarter".