Declares final dividend of 94 Australian cents per share
Miss compared to consensus estimates on core earnings
External environment will likely remain challenging CEO

Nov 13 Reuters Australia39;s fourthbiggest lender, ANZ, said on Monday surging demand for its institutional banking services propelled its annual profit to a record but an aggressive campaign to sell more mortgages flattened its margin, sending its shares lower.

As Australia39;s banks redirect focus away from their traditional earnings engine of mortgages, where interest rate increases have spurred competition, ANZ has benefited from an institutional payments platform that it says processes some of the world39;s biggest crossborder transactions.

That pushed net profit from the bank39;s institutional unit up 53 to overtake its retail unit, by dollar value, in the year to September, and helped the Melbournelisted company grow overall profit 14 to A7.4 billion 4.7 billion, just missing a Visible Alpha consensus forecast of A7.56 billion.

But analysts expressed concern about a fasterthanexpected narrowing of profit margin from the bank39;s retail unit, the only one of Australia39;s socalled big four lenders that has persisted with offering cash handouts to lure mortgage customers looking for a cheaper deal.

Even as ANZ39;s institutional division grew its net interest margin NIM the interest it collects on loans minus interest paid to depositholders the bank39;s overall NIM declined 10 basis points to…