ANZ climbs higher on back of 'nothing result'
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More news: ANZ's share price has climbed 2.15% to $37.59 at 1pm following a full-year result with no surprises.
"We think this is really a nothing result as we look forward to new CEO - Nuno Matos's - cost-out strategy then revenue uplift, the second of which looks much more aspirational," Jarden analysts noted in their first reaction.
"Underlying trends broadly consistent with what we have seen - ok volumes, reasonable NIM trends, low bad debts and enough CET1. We look forward now to execution."
Citi analysts said cost guidance of $11.5 billion for FY26, 3% lower than the previous year and below consensus, would be "well-received" by the market.
"Asset quality remains resilient with new impaired assets falling half on half and [non-performing loans] steady," analysts said.
"All up, we think the result will be well received with a strong balance sheet and incrementally better cost outlook off the FY25 base, with scope for positive revisions from costs and [bad and doubtful debts]."
What they said: Asked by analysts about where ANZ would find growth in the institutional bank going forward, Matos flagged his aspiration to be the "leading transactional bank" in the region – already being Australia's largest.
"I believe that we have a lot of room to grow. In terms of NIM, we see stability for the NIM long term, and in terms of opportunities, we have the ability to extend our leadership, both in Australia and New Zealand, on transactional banking, and to benefit significantly from the fact that we are exposed to Asia, which continues to be the growth engine of of the world," Matos said.
"Being also a customer oriented business, I believe it should be valued in a different way, versus a traditional lending business. This is a business that has been stable, has weathered fantastic interest rate contractions, rate reductions in the last two years, and I think is now fit for growth and is in a solid position."
ANZ cuts CEO and exec bonuses after regulatory failures
More news: ANZ has penalised former CEO Shayne Elliott as well as former and current executives, withholding their short term bonuses as a result of regulatory problems within its markets unit, and a host of issues relating to non-financial risk and its retail bank.
The bank said it had not granted short-term variable remuneration (STVR) to Elliott, and three former executives in ex-retail head Maile Carnegie, ex-technology exec Gerrard Florian and ex-strategy and transformation exec Anthony Strong – who all departed the bank following Nuno's appointment in May.
All current executives also had their short term bonuses withheld, with the exception of two execs in acting roles – interim retail head Bruce Rush ($229,000) and interim tech and group services executive Michael Bullock ($155,000) – as well as New Zealand head Antonia Watson ($692,000).
"Importantly, and as outlined at last year’s AGM, deferred remuneration means we can also hold executives to account when appropriate. This has been the case this year for our former CEO and the three Group Executives who left ANZ during the year, with the Board determining that some or all equity due to vest in November/December 2025 would be forfeited," chair Paul O'Sullivan said.
Current CEO Nuno Matos has voluntarily forgone his short term bonus as well.
"Given the circumstances, our new CEO also proposed to the Board that he is also not awarded STVR this year. This is despite these issues pre-dating Nuno’s arrival and his significant progress in remediating our approach to NFR. It is also a reflection of his commitment to leading by example and embedding a culture of accountability," O'Sullivan said.
ANZ posts 14% cash profit fall to $5.8b as redundancies, regulatory costs hit
The news: Australia and New Zealand Banking Corp has posted a 14% slump in full-year cash profit to $5.78 billion, hurt by redundancy costs, regulatory costs and other restructuring costs.
“Today’s results highlight three things,” CEO Nuno Matos said. “We have a significant opportunity to improve our performance in Australia Retail and Business & Private Bank, while extending our leadership in Institutional and New Zealand.”
The numbers: ANZ had previously flagged $1.1 billion of one-off costs which cut into its final profit figures. Without those, ANZ's cash profit would have been around $6.9 billion or roughly 3% higher than last year's result. Statutory net profit was 10% lower at $5.89 billion.
ANZ will pay 83 cents per share for the half, taking the final payout to $1.66 for the year, flat on the previous financial year.
Cash earnings per share were 194.7 cents, down 29.6 cents on last year. Cash return on equity fell 160 basis points to 8.1%. Common equity tier 1 capital fell to 12%.
Customer deposits grew by 5% to hit $748 billion while gross loans and advances were up 3% to $833 billion.
The context: The result, the first under new chief executive Nuno Matos, comes after the Group unveiled its new strategy last month. That has necessitated nearly 5,000 job cuts and a tech transformation as the new CEO tries to address long-running underperformance.
"While this has been a challenging year for ANZ, it has also been a year where we have set the bank on the path to long-term, sustained success," chair Paul O'Sullivan said.
Our journalists are working to update this briefing. We will publish more shortly.
The source: ASX
