Australia and New Zealand Banking Group (ANZ) reported a 14 per cent drop in cash profit, attributed to redundancy costs and legal penalties. However, the bank noted that underlying cash profit was stable compared to the prior year once these previously flagged expenses were excluded. ANZ cited pressure on margins due to intense competition within the retail banking sector as a contributing factor to the overall financial performance. ANZ is one of Australia’s largest banks, providing a range of financial services to retail, commercial, and institutional clients. It operates across Australia, New Zealand, and parts of Asia.
The reported cash profit of $5.8 billion was readjusted to $6.9 billion after accounting for the one-off costs. Prior to the official result, ANZ had indicated that its profit would be impacted by $1.1 billion, encompassing $414 million in redundancy costs related to the reduction of over three thousand staff, and $240 million allocated for legal penalties following settlements with the corporate regulator.
Despite the profit dip, ANZ has announced a final dividend of 83 cents per share, franked to 70 per cent. The bank’s management highlighted its strong capital position, allowing it to focus on key priorities such as improving productivity and investing in future growth initiatives.
Chief Executive Officer Nuno Matos stated that ANZ’s capital strength enables the company to address immediate priorities, including ensuring operational efficiency and making strategic investments for future expansion. The bank aims to improve fundamental aspects of its business while pursuing growth opportunities.
