ANZ Group delivered a robust unaudited cash profit of A$1.94 billion for the December quarter, marking a 17% increase from the prior half's average when excluding significant items. The result was propelled by disciplined cost management, with expenses falling 8% during the period.
The bank's shares jumped 6.7% at the open in Sydney, trading at A$39.70. This performance contributed to a 0.4% gain for the S&P/ASX 200 index, pushing it closer to a record high as earnings reports dominated trading.
Under CEO Nuno Matos, ANZ has prioritized a productivity program aimed at simplifying operations. The bank's cost-to-income ratio dipped below 50%, while cash return on tangible equity rose 173 basis points to 11.7%. Revenue edged up 1%, supported by a 5% increase in markets income to A$557 million.
Key financial metrics showed improvement, with the group's net interest margin rising 2 basis points to 1.56%. Customer deposits grew by A$39 billion, and net loans and advances increased by A$8 billion. The common equity tier 1 ratio strengthened to 12.15%.
In contrast, wealth manager AMP tumbled 23.6% despite meeting profit estimates, as investor focus remained on fund inflows. The session highlighted market volatility, where minor misses were heavily punished.
ANZ's update arrives as larger peer Commonwealth Bank also reported strong results. The bank noted "ongoing global economic uncertainty" and is closely monitoring credit quality and costs amid competitive lending markets and a recent cash rate hike.
