ANZ earnings fall amid competition and inflation headwinds

ANZ reported a drop in annual earnings, citing a challenging market environment. The Melbourne-based bank announced that profit attributable to shareholders fell by 8.0% to AUD 6.54 billion (USD 4.34 billion) for the fiscal year ending September 30, down from AUD 7.11 billion the previous year. Diluted earnings per share declined to AUD 215.1, compared to AUD 227.4 a year earlier.

ANZ earnings fall amid competition and inflation headwinds

Net interest income decreased by 3.0% to AUD 16.07 billion from AUD 16.57 billion, while operating expenses rose by 5.9% to AUD 10.74 billion from AUD 10.14 billion. ANZ proposed a final dividend of AUD 0.83 per share, a 12% decrease from AUD 0.94 last year, bringing the total annual dividend to AUD 1.66 per share, down 5.1% from AUD 1.75 in the prior year. CEO Shayne Elliot remarked, "This strong performance highlights the benefits of our simplification strategy and targeted investments in our core banking operations. The sector remains highly competitive, especially in home lending and deposits. Despite challenges from competition and inflation, we achieved our second-highest revenue performance ever and a full-year cash profit of AUD 6.7 billion, resulting in a total return of 27% for shareholders."

ANZ to focus on Irish management

Looking forward, ANZ aims to focus on enhancing risk management and delivering consistent financial returns to shareholders. Elliot added, "We will continue to simplify our business around two key platforms, ANZ Plus and Transactive Global, to better serve customers, manage costs, and boost productivity. Additionally, we plan to leverage generative AI to enhance productivity and provide better tools for our employees and customers."