ANZ Group (ANZ) H2 2025 earnings summary

Executive summary

• Statutory profit for FY25 was $5.9 billion, down 10% year-over-year, with cash profit at $5.8 billion, down 14%, mainly due to significant one-off items; adjusted cash profit was flat at $6.9 billion.

• Revenue grew 7% year-on-year to $22.2 billion, reflecting the first full year of Suncorp Bank earnings.

• The ANZ 2030 strategy is reaffirmed, focusing on customer-first initiatives, simplification, resilience, and technology investments.

• Suncorp Bank integration is progressing, with full migration targeted by June 2027 and synergy benefits expected to increase.

• Dividend per share remained steady at 166 cents (70% franked).

Financial highlights

• Revenue increased 7% year-over-year to $22.2 billion, while expenses rose 11% to $11.8 billion.

• Cash profit after tax was $5.8 billion, with a return on tangible equity of 10.5%.

• Pre-provision earnings reached $10.3 billion, up 2% year-on-year.

• Cost-to-income ratio increased to 53.4%, reflecting higher expenses and integration costs.

• Customer deposits grew 4% to $633 billion; net loans and advances rose 3% to $782 billion.

Outlook and guidance

• Targets ROTE of 12% by FY28 and 13% by FY30.

• Aims for cost-to-income ratio in the mid-40s percent by FY28, with $800 million gross cost savings in FY26 and $500 million Suncorp Bank synergies by FY29.

• Total costs are expected to decrease by approximately 3% in FY26 from the FY25 base of $11.85 billion, adjusted for significant items.

• Margins face headwinds from potential central bank rate reductions and competition, but proactive management and a replicating portfolio are expected to provide some tailwind.

• Revenue growth is expected to accelerate after 2027.