ANZ has reported a 16 per cent fall in first-half cash profit to $2.88 billion as it continues to cast off units and refocus on its domestic business.

Cash profit for the six months to March 31 fell largely because of a previously disclosed loss from two divested wealth businesses, but cash profit from continuing operations rose 4.1 per cent to $3.49 billion helped by a $76 million reduction in expenses.

Operating income from continuing operations dipped for a third straight half, slipping 1.7 per cent from the prior corresponding period to $9.81 billion.

Net interest margin - a key measure of profitability - dipped 0.05 percentage points over the half and 0.07 percentages over the year as the benefit of recent mortgage repricing faded.

Chief executive Shayne Elliott said the slimmed down bank was well positioned, with the lender expecting the difficult trading conditions it forecast two years ago to continue into the foreseeable future.

"We expect revenue growth for the second half of 2018 to continue to be constrained by intense competition as well as the impact of increased regulation," Mr Elliott said on Tuesday.

"Historically high levels of household debt and low wage growth will offset some of the positive impact of recent strong employment data, so consumers are likely to remain cautious."

ANZ had prepped the market for a report muddied by divestments and one-off costs, and Mr Elliott on Tuesday said it was a result of his efforts to simplify the lender's business.

"We think that the only way for us to win in the eyes of our customers is to do a few things and do them really well and be operationally excellent," Mr Elliott said.

"And in order to get there we need to sell some things, shrink some things, stop doing some things and that's where the moving parts come in."

The continuing operations numbers strip out the OnePath pensions and investments business sold to IOOF and life insurance business sold to Zurich.

Both deals are expected to close in the first half of the 2019 financial year.

At 1027 AEST, ANZ shares were up 3.5 cents, or 0.13 per cent, at $26.875.

ANZ H1 RESULTS

* Cash profit down 16pct to $2.876b

* Cash profit from continuing operations up 4.1pct to $3.493b

* Statutory profit up 14pct to $3.323b

* Interim dividend flat at 80 cents, fully franked