ANZ leaves final dividend flat as annual profit declines 10%

ANZ Group Holdings Ltd on Monday left its final dividend unchanged despite reporting a sharp drop in profit as costs climbed in financial year 2025.

The Melbourne, Australia-based bank said profit attributable to shareholders slumped 10% to AUD5.89 billion, approximately USD3.83 billion, in the financial year ended September 30 from AUD6.54 billion a year earlier.

Diluted earnings per share fell 8.6% to 196.5 Australian cents from 215.1c previously.

Net interest income increased 12% to AUD17.96 billion from AUD16.07 billion, while other operating income declined 5.6% to AUD4.23 billion from AUD4.48 billion.

ANZ left its final dividend unchanged at 83c per share, while the total dividend for the year remained at 166c per share.

Chief Executive Officer Nuno Matos commented: "Looking at our four main divisions, Institutional and New Zealand have performed consistently well, however Australia Retail and Business & Private Bank have underperformed. Despite growth in both assets and deposits, intense competition and a falling interest rate environment impacted margins."

According to CEO Matos, profit was impacted by significant items worth AUD1.1 billion, largely relating to long-standing regulatory investigations by the Australian Securities & Investments Commission, as well as the action taken to simplify the business including staff redundancies.

Operating expenses jumped 21% to AUD13.02 billion from AUD10.74 billion as credit impairment charges also increased by 8.6% to AUD441 million from AUD406 million.

ANZ finished the 2025 financial year with AUD1.297 trillion in total assets on its balance sheet, reflecting a 5.5% increase from AUD1.229 trillion at the end of the previous year.

"As we deliver our strategy, we will accelerate growth and outperform the market, while delivering more for our customers," CEO Matos added.