ANZ Group Holdings' FY25 profit dips but dividend holds steady

ANZ Group Holdings' FY25 profit fell but dividends remained steady, with underlying performance flat excluding significant items.

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Key points

  • ANZ Group Holdings reported a 10% decrease in statutory profit to $5.89 billion for FY25, affected by significant items, but underlying cash profit remained stable at $6.90 billion.
  • The bank's robust capital position is reflected in its Common Equity Tier 1 ratio of 12%, and it proposed a partially franked total dividend of 166 cents with a 1.5% discount for dividend reinvestment.
  • ANZ is advancing its ANZ 2030 strategy to enhance productivity and market position, focusing on improving performance in Australia and leveraging its presence in Asia for long-term growth.

ANZ Group Holdings Ltd (ASX: ANZ) is in focus today after the banking group reported a statutory profit of $5.89 billion for FY25, down 10% from last year. Cash profit dropped 14% to $5.79 billion, but excluding $1.1 billion of significant items, underlying cash profit was in line with the prior year at $6.90 billion.

What did ANZ Group Holdings report?

  • Statutory profit for FY25: $5,891 million, down 10% on FY24
  • Cash profit: $5,787 million, down 14% on FY24
  • Cash profit excluding significant items: $6,896 million (flat on FY24)
  • Common Equity Tier 1 (CET1) ratio: 12.0%
  • Return on equity (RoE): 8.1%; Return on tangible equity: 8.8%
  • Total dividend: 166 cents per share, partially franked at 70%

What else do investors need to know?

ANZ's result was weighed down by significant items including an ASIC settlement and restructuring charges, which totalled $1.1 billion. Excluding these, operating income rose 7% to $22.2 billion and expenses rose 11%.

The bank proposed a final dividend of 83 cents per share, in line with the first half and partially franked at 70%. A 1.5% discount applies to dividend reinvestment plans. ANZ also ceased its remaining $800 million share buy-back and will return additional surplus capital to the bank.

What did ANZ Group Holdings management say?

ANZ Chief Executive Officer Nuno Matos said:

Today's results highlight three things. First, our franchise has a strong competitive position. We have two scale markets, Australia and New Zealand, two market leading positions, our Institutional and New Zealand businesses, and a well-diversified business benefitting from our strong presence in Asia, the fastest growing economic region in the world.

Second, we have a significant opportunity to improve our performance in Australia Retail and Business & Private Bank, while extending our leadership in Institutional and New Zealand.

Third, ANZ 2030 is the right strategy to capture these opportunities.

The results we have announced today demonstrate our franchise is strong, but action is needed. We are absolutely committed to executing ANZ 2030 and are on the right path. As we deliver our strategy, we will accelerate growth and outperform the market, while delivering more for our customers.

What's next for ANZ Group Holdings?

Looking ahead, ANZ is focused on progressing its ANZ 2030 strategy, including improving productivity, embedding its leadership team and culture reset, and further integrating Suncorp Bank. The group is also prioritising improvements in non-financial risk management.

With a robust capital position, the bank anticipates using its resources to drive further investment, especially to support business transformation and deliver long-term growth for shareholders.

ANZ Group Holdings share price snapshot

Over the past 12 months, ANZ shares have risen 15%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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