The ANZ Group Holdings Ltd (ASX: ANZ) share price is falling on Thursday morning.
At the time of writing, the banking giant's shares are down 2% to $29.38.
This follows the release of the company's half-year results before the market open.
ANZ share price is falling on results
For the six months ended 31 March, ANZ reported a 5% increase in revenue to $10,995 million and a 12% lift in cash profit to $3,568 million compared to the second half of FY 2024. The latter is a touch short of the $3,596 million that Macquarie Group Ltd (ASX: MQG) was forecasting.
A key driver of this growth was the acquisition of the Suncorp Bank business, which was completed at the end of July 2024.
Elsewhere, the Australia Retail business delivered at system home loan growth of 3% with customer deposits up 4% for the half. ANZ Plus welcomed its one millionth customer and crossed through $20 billion in deposits.
In Australia Commercial, ANZ delivered growth on both sides of the balance sheet with deposits up 3% for the half and lending exiting the half growing at system. Management notes that Australia Commercial contributed 22% of total group revenue, including customer revenue booked in other divisions.
The Institutional business recorded strong growth across both operational deposits and core lending (both up 4% fx adjusted). It also delivered a fifth consecutive half of 13%+ return on equity.
In New Zealand, the bank reported moderate growth on both sides of the balance sheet with lending up 2% and customer deposits up 3%. And Suncorp Bank balanced margin outcomes with moderate growth on both sides of the balance sheet (Net Loans up 1% and Customer Deposits up 2%) in the half.
Despite its strong profit growth, the ANZ board elected to keep its interim dividend steady at 83 cents per share. This dividend will be 70% franked and in line with consensus estimates.
Management commentary
ANZ's outgoing CEO, Shayne Elliott, was pleased with the half. He said:
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. We have delivered record half year revenues. This highlights both the strength of our franchise and the step change in our earnings from the inclusion of the first full half of Suncorp Bank's earnings.
As I hand over to our incoming CEO Nuno Matos, the bank is well placed for the future. Our strong balance sheet, along with our diversified portfolio, leave the bank well placed to navigate ongoing volatility.
No guidance was given for the second half.
