ANZ Group Holdings Limited has announced a significant after-tax charge of $1.11 billion impacting its profit for the second half of 2025. The bank confirmed this charge arises from several exceptional items related to restructuring, regulatory settlements, impairments, and integration processes across its operations.
Restructuring Costs and Staff Redundancies
The largest component of this profit hit involves staff redundancies. ANZ revealed that 3,500 jobs will be cut as part of a major restructuring effort the bank disclosed in September. The bank stated, “The final 2H25 pre-tax charge was $585 million (after-tax: $414 million)”. This redundancy charge not only impacts statutory profit but also affects the cash profit, a core metric for the institution.
The pre-tax cost exceeds the bank’s initial estimate of $560 million, reaching $585 million in its final calculation. This decision aims to streamline operations and reduce overall workforce expenditure, reflecting broader efforts to improve efficiency.
ANZ reported the final 2H25 pre-tax charge was $585 million
Regulatory Settlements and ASIC Penalties
ANZ entered an agreement with the Australian Securities and Investments Commission (ASIC) to resolve outstanding matters involving its Australia Markets and Australia Retail businesses in September 2025. The settlement includes five separate regulatory investigations and a record penalty.
ANZ stated, “Under the agreement…the Group is subject to total penalties of $240 million”. Alongside the penalty, the bank recognised a pre-tax charge of $271 million (after-tax: $264 million) comprising the ASIC fines and associated costs.
According to the announcement, the charges result from “mishandling a AU$14 billion bond deal for the federal government and failing to respond to hundreds of notices about customer hardship”. Additional issues included false and misleading statements about savings interest rates and failing to pay those amounts to customers, contributing to the overall penalty.
Breakdown of ASIC $240M penalty
Integration Costs: Suncorp Bank Acquisition
The bank highlighted the costs linked to the accelerated migration of Suncorp Bank following its recently completed acquisition worth $4.9 billion. The statement declared, “The Group recognised a pre-tax charge of $97 million (after-tax: $68 million) relating to costs associated with existing contracts that extend beyond the revised migration date”.
This charge follows ANZ’s strategy to bring forward Suncorp Bank’s integration deadline by June 2027, positioning the bank for long-term value creation and operational simplicity. The goodwill adjustment associated with the acquisition increased by $141 million compared to previous disclosures.
ANZ recently completed the acquisition of Suncorp Bank, worth $4.9 billion
Impairment and Winding Down of Investments
ANZ took further action on its investment in PT Bank Pan Indonesia, booking a pre-tax and after-tax charge of $285 million for impairment after a comprehensive review. This impairment does not impact the bank’s CET1 capital ratio.
The bank will also book a $78 million after-tax charge for closing the Cashrewards business, which no longer fits its strategic priorities. This exit aligns with ANZ’s decision to refocus on its core operations in Australia and New Zealand while scaling back select international operations.
Capital Ratio Impact
The combined after-tax charges, goodwill adjustment, and other significant items will reduce ANZ’s common equity tier 1 (CET1) capital ratio by 19 basis points. The CET1 ratio is a key metric used to measure a bank’s financial strength, and this reduction signals the institution’s commitment to address risk and comply with regulatory standards.
Market Reaction
ANZ’s shares dipped slightly after the announcement, with market participants assessing the impact of the charges on the bank’s future performance. The S&P/ASX200 index rose by 0.4% on Friday, while ANZ’s shares fell 0.9%.
Nuno Matos, the new Chief Executive taking the helm in May, noted the bank’s continued strong performance in New Zealand and its institutional business. He commented in the announcement, “We’ve got a lot to do for our retail and commercial customers in Australia”. ANZ’s ongoing restructuring and focus on core operations reflect these priorities.
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Outlook and Strategic Direction
ANZ confirmed it will announce its full-year results on 10 November 2025. The bank is working to strengthen risk management, simplify its business structure, and deliver value for stakeholders across its markets. Matos stated recently that the bank targets a 12% return on tangible equity by 2028, aiming to improve on the previous year’s 10.3% figure and seeks a further rise to 13% by 2030.
ANZ continues to trim its Asian footprint, focusing resources on Australia and New Zealand, with select partnerships maintained in the region. The current strategic plan foregrounds cost reduction and operational agility to overcome challenges brought by regulatory scrutiny and global market pressures.
Conclusion
ANZ’s $1.11 billion after-tax profit hit represents a decisive step to resolve longstanding regulatory issues and advance the bank’s strategic objectives. The charges reflect a clear commitment to restructuring, compliance, and stakeholder transparency. The upcoming full-year results on 10 November will offer further insight into ANZ’s financial health and future direction.
