The macro numbers in ANZ's third-quarter trading update,  released on Friday, were mostly favourable for the bank.For the nine months to June 2010 net profit increased 26 per cent to $3.6 billion. Profit before provisions was up five per cent.Income was up nine per cent though income from Global Markets, which helped support the 2009 result, was down. Expenses were up thanks to the takeover of six RBS banking operations in Asia.  The provision charge fell 34 per cent to $1.44 billion.The bank may be worried that earlier efforts to control costs were not effective enough.Mike Smith, chief executive of ANZ, in prepared remarks said that "we need to accept that banks are facing permanently higher funding costs" and used this to emphasise the need to "drive productivity and innovation even harder". Smith did not spell out particular projects that were under way to secure this goal.Asset quality worsened for ANZ as it has for all banks, though the bank says most of this is, once again, related to its additional businesses in Asia.Impaired loans, worked out by ANZ using its preferred formulas, increased $22 million to $6.3 million over three months.The bank said new impaired loans came largely from the middle market and SME sectors.Another portfolio of loans reported under the standardised formula more than doubled to $460 million. Of this $132 million relates to a credit card portfolio in Taiwan.