ANZ shares drop on weaker full-year margins
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More news: Shares in ANZ were down 3.6% to $24.55 on Monday morning despite the bank reporting a 14% lift in full-year cash profit. Analysts from UBS and RBC said the lender's net interest margins, particularly for the second half of its fiscal year, were weaker than expected because of its aggressive growth in home lending.
ANZ posts 14% jump in full-year cash profit, ups dividend
The news: Banking major ANZ has reported a jump in full-year cash profit on the back of higher lending and deposit volumes and cost management.
The numbers: Australia's fourth-largest bank reported cash profit of $7.41 billion for the year to 30 September, up 14% from the year before, although statutory profit was nearly flat at $7.1 billion. Operating income was up 5% to $20.5 billion. The lender lifted its final dividend to 94 cents a share, from 74 cents a year ago.
The context: ANZ CEO Shayne Elliott said the second half delivered an outstanding revenue and profit result, demonstrating the benefits of the bank’s diversified franchise. “We continued to strengthen our balance sheet and closed the year with provisions for potential credit losses higher than prior to the pandemic, and with more capital than ever before,” he said in an announcement to the ASX. “This is critical as we enter a period of continued high-interest rates, rising costs and geopolitical tensions.”
The source: ASX announcement
