Frustrated mortgage holders are being warned of higher interest rates and cost-of-living costs in the upcoming months, as the worst of the Iran war is yet to hit household budgets.

In its latest update to the market, ANZ said so far its customers had been able to pay their mortgages, but chief executive Nuno Matos says the war is translating into greater economic uncertainty.

He said that included lower national growth, higher inflation and interest rate hikes which will all challenge some customers.

“As Australia’s most international bank we have a front-row seat to global developments,” Mr Matos said.

“Much of the potential impact of this crisis remains ahead of us, but the longer the flow of oil is constrained, the greater the chance the crisis shifts from being primarily an inflation challenge, to much more of a supply and growth challenge.”

ANZ told the market it took a collective provision charge of $175m due to potential loan stress from the Middle East conflict.

Despite the fallout,ANZ has posted a half-year $3.65bn profit, up 9 per cent on the previous six months.

Delivering the results on Friday morning, the big four bank’s customer deposits grew 3 per cent in the six months to March 31 (up by $23bn), while the bank slashed operating expenses 22 per cent as it axes 3500 workers.

“We have refreshed our leadership team and commenced our cultural reset with new corporate values,” Mr Matos said.

“We have also made significant progress to reduce duplication and simplify the bank.”

With inflation and interest rates rising, Australians are shopping around for the best loan and deposit offerings.

“While lending volumes and deposits grew moderately, active margin management meant margins remained stable for the half amid intense competition,” Mr Matos said.

The bank’s $3.65bn statutory profit excludes significant items.

Mr Mantos said the bank was continuing to work through its ANZ 2030 strategy as it aims to be the best bank for customers and shareholders in the country over the next five years.

ANZ is posting a 14 per cent rise in cash profit (excluding significant items), and shareholders will get a 75 per cent franked 83 cent dividend, which has not increased.

ANZ announced 3500 job cuts in September that are taking until September of this year to be fully enacted.

The financial returns point to gains in most key measures; return on tangible equity and cost-to-income ratio all rose, and the 75 per cent-franked dividend is up on the 70 per cent-franked offering last time.

Mr Matos marks 12 months at the helm later this month in a tenure so far marked by mass job losses and cost cutting as well as overhauling the bank’s culture.

“As we progress this work, we continue to operate in an increasingly complex world,” Mr Matos said.

ANZ corporate customers had been “building capital and liquidity, maintaining flexibility and improving supply chain resilience”, Mr Matos, said while households entered the current financial shock with generally larger savings.

“In both Australia and New Zealand, households entered this period with generally strong balance sheets and high savings buffers,” Mr Matos said.

“We have not seen any material increase in new customers entering hardship or receiving assistance.

“However, we recognise that some individuals and businesses are navigating these challenging circumstances. We urge customers who may need assistance to contact us.”