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ANZ Profit Falls 14% on Restructuring Costs and Penalties, Dividend Held

Margin compression from cheaper mortgages after rate cuts compounded the earnings hit.

Overview

  • ANZ reported full-year cash profit of A$5.79 billion for the 12 months to September 30, down from A$6.73 billion a year earlier.
  • Significant post-tax items totaled A$1.11 billion, including A$414 million tied to 3,500 staff redundancies and about A$240 million in penalties linked to ASIC cases.
  • Operating costs rose roughly 20% and net interest margin slipped 2 basis points to 1.55% as mortgage competition intensified following three RBA cuts this year.
  • Australia Retail and Business & Private Bank underperformed, while Institutional and New Zealand delivered steadier results, with overall loan quality described as sound.
  • The final dividend was kept at 83 cents per share as management pressed on with the ANZ 2030 strategy, Suncorp Bank integration and a culture reset, while peer CBA reported quarterly growth in loans and deposits.