Overview
- ANZ reported full-year cash profit of A$5.79 billion for the year to September 30, down 14% and below a A$6.17 billion consensus estimate.
- The result included A$1.11 billion of significant items, featuring A$414 million for about 3,500 redundancies and a record A$264 million in penalties to settle regulatory cases.
- Operating income rose 5% while operating costs jumped 20%, and the net interest margin slipped 2 basis points to 1.55% as mortgage competition and rate cuts pressured pricing.
- Profits in Australian retail fell 35% and commercial banking declined 3%, with management highlighting underperformance in Australia versus steadier Institutional and New Zealand units.
- The bank held its final dividend at 83 cents per share, increased provisions for bad debts as individual impairments rose, and pressed on with Suncorp Bank integration and the ANZ 2030 plan.