ANZ (ANZ) H2 2024 earnings summary

Executive summary

• Completed Suncorp Bank acquisition, accelerating synergy realization and adding scale to Australian Retail & Commercial; record Institutional result with 14% ROE; strong digital momentum in ANZ Plus platform.

• Sale of AmBank shares enabled a major share buyback, reducing share count by 30 million.

• Cash profit for FY24, excluding one-off accounting adjustments, was AUD 6.92 billion; statutory profit after tax was $6,535 million, down 8% year-over-year.

• ANZ Plus achieved 1% share of all Australian retail deposits, with customer growth of 84% and deposits up 70% to nearly $16 billion.

• Investments in technology platforms have positioned the bank for lower costs and faster innovation.

Financial highlights

• Revenue for FY24 was $20,809 million, down 2% year-over-year; cash profit before credit impairment and tax fell 7% to $10,068 million.

• Customer deposits increased 2% to $715.2 billion; gross loans and advances grew 4% to $807.1 billion.

• Shareholders received a total return of 27% for the year and 50% over two years; final dividend of AUD 0.83 per share, 70% franked.

• Suncorp Bank contributed $257 million income and $74 million cash profit for two months post-acquisition.

• Total dividend per share was 166 cents, up 4 cents from FY23.

Outlook and guidance

• Cost to serve expected to decline further as migration to Plus and Transactive accelerates from 2026, with material cost reductions from 2027.

• FY25 costs expected to rise modestly due to Suncorp integration and migration, with productivity focus continuing.

• Revenue growth in Australian retail remains challenged, but commercial and New Zealand divisions show growth opportunities.

• Regulatory capital changes expected from APRA, including AT1 phase-out by 2027; ongoing focus on capital and liquidity management.

• Leveraging generative AI to improve productivity and support.