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SYDNEY, May 2 (Xinhua) -- The Australia and New Zealand (ANZ) Banking Group announced a 23 percent jump in profits for the first half on Tuesday.

Interim results released by the bank revealed that it had made 2.56 billion U.S. dollars in profits in the six months ending in March 2017 despite a 2 percent drop in interest income.

The results fall slightly short of market expectations of a cash profit of 2.63 billion U.S. dollars.

The bank has endeavoured to slash its lower-returning assets and cut costs since Shayne Elliott took over as Chief Executive Officer (CEO) in January 2016.

"The reshaping of our business over the past year has delivered strong outcomes for customers and shareholders, and has established a foundation for future growth and better returns," Elliott said in a statement from the bank's Melbourne headquarters on Tuesday.

"The environment for banking remains constrained with intense competition and pressure on margins, subdued lending growth, rapidly changing customer expectations and increasing regulation. The provision charge has improved and the outlook for the second half remains broadly neutral.

"I am really happy with the progress we have made."

ANZ was the first of three major Australian banks to deliver its results for the six months to March with the National Australia Bank (NAB) and Westpac due to follow.

The results supported Elliott's decision to withdraw from the bank's ambitious Asia strategy, which was led by his predecessor Mike Smith, to focus on more profitable local business.

In an indication that further job cuts were imminent, the bank said on Tuesday that it would seek to make its workforce more "agile" in an effort to "reduce waste and bureaucracy."