ANZ shares sell-off after flat cash profit of $3.6b
Adrian Black |
Shares in Australia’s fourth-largest bank have fallen after its first-half earnings missed investor expectations.
ANZ posted a cash profit of $3.6 billion, which was flat on the previous corresponding period, on the back of a five per cent jump in revenue to almost $11 billion.
Shares in the big four bank had fallen 2.1 per cent to $29.34 by mid-afternoon, as investors responded to the results by hitting the sell button.
Outgoing chief executive Shayne Elliott played up the result, which in percentage terms has topped its rivals Westpac and National Australia Bank.
“As I hand over to our incoming CEO Nuno Matos, the bank is well placed for the future,” he said on Thursday.
“Our strong balance sheet, along with our diversified portfolio, leaves the bank well placed to navigate ongoing volatility.”
The bank posted cash earnings per share of 120.1 cents, a 13 per cent improvement on the equivalent 2024 half and a 10.2 per cent return on equity as it announced an 83-cent dividend, 70 per cent franked.
ANZ’s results for the first time included the earnings of Suncorp Bank, which it bought in July.
ANZ said it now has more than one million customers, with deposits of more than $20 billion.
KPMG analysis of Australia’s major banks found they reported a combined profit after tax of $15.5 billion, up 3.5 per cent compared with the first half of 2024, and up 4.3 per cent on the previous half.
The results indicated the big four’s steady performance, KPMG Australia’s banking and capital markets head David Heathcote said.
“While profits and revenue continue to grow, the results demonstrate the challenge faced by the majors of ongoing competition amongst themselves and other lending institutions together with operating cost pressures,” he said.
The big four’s $22.7 billion in operating expenses had increased by 6.2 per cent compared with the first half of 2024 and 2.9 per cent compared with the second half, due mostly to personnel and technology expenses, KPMG said.
ANZ chief Mr Elliott stressed the “future of global conditions is uncertain and there will continue to be periods of increased volatility”.
His warning mimicked those made by the chief executives of Westpac and NAB earlier this week.
The uncertainty is being driven by the United States, after President Donald Trump imposed large tariffs on goods imports from countries around the world, including Australia, sparking threats of retaliation.
The unpredictable way the Trump administration is managing its punitive tariffs regime has sparked warnings by major American investment banks about a US and subsequent global recession.
Westpac on Monday posted a one per cent fall in first-half earnings to $3.3 billion. National Australia Bank delivered interim earnings of $3.6 billion, up one per cent, on Wednesday.
ANZ ‘s first-half dividend of 83 cents per share comes up against 76 cents for Westpac and 85 cents for NAB.
AAP
