ANZ’s 2025 financial year result has been described as “somewhat messy” by Morgans research analyst Nathan Lead, citing significant items related to the new chief executive’s transformation program. ANZ, one of Australia’s largest banks, provides a range of banking and financial products and services to retail, commercial, and institutional customers. The company operates across Australia, New Zealand, and the Asia Pacific region.
According to Lead, excluding these one-off items, ANZ’s second-half profit fell by 7 per cent compared to the first half. This decline was attributed to a 3 per cent decrease in pre-provision profit and a doubling of credit impairment charges. Despite these challenges, the second-half dividend remained flat, as previously guided.
Lead identified several positive aspects within the results. These included a moderate decline in net interest margin, a stronger-than-expected CET1 capital position, and an anticipated cost base reduction to $11.49 billion in FY26, which is below market expectations. However, revenue growth of 2 per cent was weaker than anticipated, with contributions from other operating income being of lower quality, and seasonality impacting markets income.
Lead observed that the result reflects the ongoing challenges of transformation and strategic capital management as ANZ prepares for the 2026 financial year. The analyst’s assessment highlights the complexities the bank faces as it navigates its strategic objectives amidst a changing economic landscape.
