ANZ has posted a 5 per cent increase in cash profit to $6.52 billion for the full year ended 30 September 2022.
In an ASX listing on Thursday, the bank said its statutory profit after tax added 16 per cent on the previous year to reach $7.12 billion.
“This was a strong financial result with all divisions making a material contribution and demonstrating the benefits of a diversified portfolio,” said ANZ CEO Shayne Elliott.
Key highlights for the bank included restored momentum in Australian home loans, the bank’s numerous divestments, and growth of its digital bank ANZ Plus.
“We continued the systematic de-risking of the bank, highlighted by the sale of our margin lending business to Bendigo & Adelaide Bank and just last month we completed the formal separation of our wealth business to Insignia and Zurich,” said Mr Elliott.
“Combined with the exit of financial planning and advice, as well as the associated remediation being at the very final stage, we are the only major bank in Australia to have removed the risks associated with wealth management for shareholders.”
Revenue in the institutional business was up 2 per cent on the previous and 10 per cent on the previous half, which ANZ said was driven by customer demand and disciplined margin management despite market revenue being adversely impacted by external shocks.
ANZ’s Australia commercial business saw an 11 per cent lift in profit and a 10 per cent increase in revenue on the year prior with “good volume growth and disciplined margin management”.
The bank’s common equity tier 1 ratio remained at 12.3 per cent while cash return on equity was 10.4 per cent compared to 9.9 per cent in FY21.
A final dividend of 74 cents per share has been declared, which the ANZ board deemed appropriate and in line with its target dividend payout ratio of between 60 and 65 per cent.
On the outlook, Mr Elliot stated that the world is in a period of “significant uncertainty” as central banks struggle to control inflation amid persistent geopolitical uncertainty.
“There is uncertainty ahead, however, we have the business in good shape to withstand volatility,” Mr Elliot said.
“We also have a highly engaged workforce with a high-performance culture and I’m confident in our ability to continue to deliver for customers and shareholders,” he said.
Mr Elliot also touched on ANZ’s planned acquisition of Suncorp Bank, noting that it will “provide an important platform for growth, particularly in the fast-growing and rapidly diversifying Queensland economy”.
“Suncorp Bank is a well-run business that will see more than one million new retail customers join ANZ, sharing in the benefits of a wider range of products and services. It also means the Suncorp Group is able to focus on its core mission of being the best insurance company in Australia and New Zealand,” he said.
The acquisition, which is subject to government and regulatory approvals, will be partially funded by the bank’s successful $3.5 billion equity capital raising.
“This was the world’s largest equity raise this calendar year for an M&A transaction and was structured in a way to ensure all shareholders were treated equally,” Mr Elliott concluded.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.