ANZ Group Holdings Ltd.’s profit topped estimates in the first half of the year even as margin pressure curbed the bank’s retail and institutional divisions.

Cash profit was broadly flat at A$3.57 billion ($2.3 billion) in the six months ended March 31 from the previous year, according to a statement Thursday. That compared with the A$3.49 billion average estimate of analysts surveyed by Bloomberg.

Chief Executive Officer Shayne Elliott is due to step down and hand over the reins next week to Nuno Matos, the former HSBC Holdings Plc wealth chief. Australian banks are grappling with margin pressure amid expectations that interest rates will continue to decline this year.

“The bank is well placed for the future,” Elliott said in the statement.

Regulatory inquiries are among the challenges facing Matos as he moves into the top job two months earlier than planned. ANZ last month was slammed with an additional A$250 million capital requirement after an independent review unveiled weaknesses in the bank’s leadership and a string of bad behavior including alcohol and substance abuse.

Shortcomings in leadership and a problematic culture were among the root causes of risk management lapses at ANZ, according to the report, which centered on the markets division. The extra capital buffer imposed by the Australian Prudential Regulation Authority takes the total to A$1 billion.

“Work is underway to strengthen our non-financial risk management practices and risk culture” to meet APRA’s expectations, Elliott said.

ANZ said it had completed A$1.2 billion of the previously announced A$2 billion share buyback and has filed with the regulator to extend the buyback period for a further 12 months, citing increased uncertainty of global conditions. ANZ will adopt slightly more conservative capital settings, which include the flexibility to adjust the pace of the remaining buyback, it said.

The institutional unit saw cash profit drop 9% to A$1.38 billion from the prior year, while the metric for its retail division in Australia declined 11% to A$705 million.

“While initial interest rate relief was welcomed by retail and commercial customers, we know many continue to face challenges,” Elliott said. “Generally households remain remarkably robust and resilient.”