ANZ Group Holdings reported a full-year cash profit of $7.6 billion, up 31% or 10% after excluding significant items, the bank said in its results announcement. Credit impairment provisions rose to $582m, an increase of $141m on the prior year, as some borrowers came under greater strain in the second half while interest rates and living costs stayed high.
The headline 31% profit increase reflects a low base in the prior year when one-off expenses reduced reported profitability. Cash profit on a per-share basis was 252.6 cents.
Balance sheet momentum built throughout the year and underpinned net interest income growth, while margins were helped by elevated interest rates, ANZ said. Operating income grew 1% on a comparable basis.
Chief executive Nuno Matos said the increase in cash profit and higher shareholder returns were driven by disciplined management of margins, capital and costs, combined with business growth. He said economies across ANZ's geographic footprint had remained relatively resilient and that the bank was prepared to assist customers as impairment charges rose, noting that the level of impairments remained low. Actual loan losses remained low despite the increase in credit provisions.
The CET1 ratio ended the year at 11.99%, including an 8 basis point impact from the ANZ Worldline Australia acquisition. Organic capital generation in the second half was 80 basis points, up from 71 basis points in the prior corresponding period.
Gross cost savings of $902m were achieved across the full year, above management's earlier expectations. ANZ said it expects total expenses in FY27 to remain flat against a pro forma FY26 cost base of $11.26 billion, according to the bank's CFO.
Shareholders received a full-year dividend of $1.66 per share, flat on the prior year. The final dividend was set at 83 cents per share, franked at 80%, compared with 75% franking in the first half. Suncorp Bank's integration into ANZ is on schedule, with completion expected by June 2027.
Official statements: ANZ
Reporting: The Nightly, The Motley Fool Australia
Written by Pick & Scroll News from the reporting and documents linked above.
