ANZ Group Holdings Limited (ASX: ANZ) has reported a resilient performance for the half-year ended 31 March 2025, posting a statutory profit of $3.642 billion and a cash profit from continuing operations of $3.568 billion. In a period marked by economic uncertainty, inflationary pressures, and evolving market expectations, ANZ’s consistent execution and strategic discipline shine through.
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While market sentiment remains mixed, the bank’s strong capital position, growing digital presence, and focus on customer experience are key signals of long-term value.
Figure 1: Comment from the outgoing CEO of ANZ, Mr. Shayne Elliott
Solid Financial Performance in a Challenging Environment
ANZ’s half-year financials reveal a clear upward trajectory, with solid gains across key metrics compared to the previous half (2H24). Here’s a breakdown of the bank’s performance in greater detail.
Stronger Profit and Improved Margins
- Statutory Profit: $3,642 million (↑ 16% vs 2H24)
- Cash Profit: $3,568 million (↑ 12%)
- Revenue: $10,995 million (↑ 5%)
- Expenses: $5,742 million (↑ 4%)
- Cash Profit Before Credit Impairment & Tax: $5,253 million (↑ 6%)
ANZ achieved double-digit profit growth driven by higher revenue and careful expense management. Importantly, the increase in cash profit before credit impairment reflects operational efficiency gains.
Credit Charges Drop Sharply
- Credit Impairment Charges: $145 million (↓ 57%)
This significant reduction signals improved asset quality or lower provisioning needs, offering a buffer against future volatility.
Shareholder Metrics: Higher Earnings Per Share
- Return on Equity (ROE):2% (↑ 94 basis points)
- Earnings Per Share (Basic):1 cents (↑ 13%)
- Dividend per Share: 83 cents (unchanged)
While the dividend remains unchanged at 83 cents per share, shareholders saw improved returns through higher EPS and ROE—a sign of stronger capital productivity.
Capital and Liquidity Snapshot
- CET1 Capital Ratio (APRA Level 2):8% (↓ 0.4%)
- Gross Loans and Advances (End of Period): $824.0 billion (↑ 2%)
- Customer Deposits (End of Period): $756.6 billion (↑ 6%)
Though the CET1 ratio dipped slightly, ANZ’s capital position remains well above regulatory thresholds. The increase in loans and customer deposits signals continued trust from clients and a healthy balance sheet.
These results reflect ANZ’s disciplined approach to balance sheet management and risk. CEO Shayne Elliott emphasised the Group’s strong performance: “Our strong performance has again been driven by our continued momentum across each of our divisions, demonstrating the benefits of a stable, consistent strategy combined with sensible, targeted investment.”
Division-Wise Performance: Growth Across the Board
ANZ’s half-year results show solid performance across all major divisions, with a focus on balance sheet strength, digital expansion, and customer satisfaction.
Australia Retail
- Home loan growth held steady at 3%, while customer deposits grew 4%.
- The digital banking platform ANZ Plus hit a milestone of 1 million customers in March, surpassing $20 billion in deposits.
- Credit quality remained stable, with an individually assessed impairment loss rate of 3 basis points (bps).
Australia Commercial
- Achieved 3% growth in deposits and system-matching loan growth exiting the half.
- This segment contributed 22% of total Group revenue, accounting for customer revenues booked across divisions.
- Maintains strong asset quality, with 82% of exposures fully secured.
Institutional Banking
- Experienced 4% growth in both operational deposits and lending (FX-adjusted).
- Delivered its fifth consecutive half with Return on Equity (RoE) above 13%.
- Credit quality remains high, with 2 bps individually assessed loss rate and 78% of lending exposures rated investment grade.
New Zealand
- Saw moderate growth in lending (+2%) and deposits (+3%).
- Credit impairment loss rate improved, dropping 2 bps to 3 bps in the half.
Suncorp Bank
Though ANZ’s full integration of Suncorp Bank is ongoing, early signs are promising:
- Suncorp delivered strong regional performance, outperforming peers.
- ANZ noted faster-than-expected realization of cost synergies, boosting returns earlier than anticipated.
Credit Quality: Strong and Stable
ANZ reported a total credit impairment charge of $145 million for the half, a sharp decline of 57% from the prior period. This was made up of:
- A $14 million release in collectively assessed provisions (CP)
- A $159 million charge for individually assessed provisions (IP)
This reflects improving asset quality, with low levels of new impairment and a cautious but positive lending environment. Notably, foreign exchange impacts pushed the CP balance to $4.28 billion by March 31, 2025.
CEO Commentary: A Vision for Stability and Growth
Outgoing CEO Shayne Elliott delivered an optimistic but cautious outlook in his commentary, highlighting ANZ’s progress under his leadership and the strength of its strategic direction.
Key Themes from Elliott’s Remarks
- Strong business momentum: All divisions contributed to the Group’s performance, emphasizing the value of a balanced and diversified strategy.
- Digital transformation success: The success of ANZ Plus—with 1 million users and $20B in deposits—was celebrated as a major win, along with the broader digital rollout.
- Suncorp integration benefits: The addition of Suncorp Bank contributed positively to revenue and is already delivering cost synergies ahead of schedule.
- Credit discipline and balance sheet strength: Elliott noted that the bank has maintained low credit losses (just 4 bps) and is prepared to weather economic volatility thanks to strong capital, provisions, and liquidity.
- Positioned for future opportunities: He emphasized ANZ’s global reach and strength in institutional markets as strategic advantages in an environment of changing interest rates and capital flows.
“Our strong balance sheet… and low credit losses will allow us to navigate the uncertainty — and importantly continue to support our customers,” Elliott said.
Preparing for Leadership Transition
As Elliott steps down, incoming CEO Nuno Matos is set to take over a bank in a stable and growth-ready position. Elliott expressed confidence that ANZ is “a simpler, stronger and better bank” than it was a decade ago.
“It’s been a great honour to lead the bank for the last 10 years… and I wish Nuno the very best as he leads the next phase of ANZ’s journey,” he concluded.
Mixed Market Performance: Caution Despite Results
While ANZ’s underlying fundamentals remain strong, market reaction has been subdued.
Recent Stock Performance
- Current Share Price: $29.36
- Day’s Change: -2.07%
- Market Capitalisation: $89.08 billion
- 1-Week Performance: -1.66%
- 1-Month Performance: +9.45%
- Year-to-Date (2025): +2.89%
- 1-Year Performance: +0.84%
- 1-Year vs Sector: -16.89%
- 1-Year vs ASX 200: -4.16%
Despite a recent rally in April, the stock has underperformed the broader financial sector and the ASX 200 over the past year. This may reflect investor concerns over margin compression, regulatory changes, or the cooling property market.
Still, the strong dividend and capital position provide a solid buffer and offer reassurance to long-term investors.
Digital Growth: The ANZ Plus Effect
A highlight of ANZ’s strategic transformation has been its investment in digital capabilities. The ANZ Plus platform—designed for mobile-first banking—continues to gain traction, enabling customers to better manage savings, spending, and financial goals.
The digital shift is more than just customer-facing tools. ANZ is improving its internal processes through automation, AI-driven analytics, and cloud technology. These enhancements are aimed at reducing operational costs and improving risk detection.
CEO Elliott reaffirmed the importance of this strategy, stating, “Over this time we have focused our strategy, strengthened the balance sheet, tightened customer selection, delivered significant productivity benefits, improved capital efficiency, reduced risk intensity and made a material shift in our culture. In doing so, we returned about $48 billion to shareholders, while retaining sufficient capital to build a better bank for the long term.”
Looking Ahead: What to Expect in the Second Half
Strategic Priorities
- Simplification: Streamlining internal processes and Half business units
- Customer Focus: Enhancing experience through technology and better service delivery
- Capital Discipline: Maintaining strong capital levels and returning value to shareholders
- Growth Markets: Leveraging institutional banking strengths in Asia and the Pacific
While economic conditions remain uncertain, ANZ Half appears well-positioned to manage interest rate changes, geopolitical risks, and credit cycles. The Group’s strong capital base, conservative lending practices, and digital momentum offer a firm foundation for the second half of FY2025.
Final Thoughts
ANZ’s half-year results offer a picture of a bank that is steady, reliable, and forward-looking. With over $3.6 billion in statutory profit, a strong dividend, and clear digital Half strategy, ANZ has reinforced its position as a major force in Australian banking.
Although its share price hasn’t surged, the fundamentals tell a more optimistic story. For investors with a long-term horizon, ANZ’s blend of profitability, capital strength, and digital growth is hard to overlook.
In a world of uncertainty, ANZ is banking on stability—and for now, that looks like a smart move.
