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Highlights:
- ANZ (ANZ) reports a 16% surge in statutory net profit for FY25's first half.
- Loan and deposit growth show continued positive momentum across divisions.
- Stable credit impairment charges enhance profitability despite slight decline in net interest margin.
ANZ Group Holdings Ltd (ASX:ANZ) recently shared its half-year results for FY25, showcasing a robust performance that has drawn attention from investors. With a 16% rise in statutory net profit, ANZ is positioning itself well in the competitive banking sector. Here’s an in-depth look at the bank’s performance, highlighting key areas for those tracking ASX dividend stocks and the broader ASX200 landscape.
Strong Revenue and Profit Growth
ANZ's revenue for the first half of FY25 rose by 5%, reaching $11 billion. Expenses increased by 4%, totalling $5.74 billion. However, the notable success came in the form of cash profit, which surged 12% to $3.57 billion. Cash profit before tax and credit impairment also climbed 6%, landing at $5.25 billion. This healthy profit growth was driven by a significant 57% reduction in credit impairment charges, totaling $145 million.
Diversified Growth Across Divisions
ANZ’s performance was supported by steady loan and deposit growth across its divisions. The Australian retail division showed a 3% increase in loans and a 4% growth in customer deposits, aligning with broader market trends. The Australian commercial division mirrored the retail division’s growth, while the institutional division exceeded expectations with a 4% rise in both deposits and core lending.
Meanwhile, ANZ’s New Zealand operations contributed modestly with 2% loan growth and a 3% rise in customer deposits. The recently acquired Suncorp division, though smaller in scale, achieved a 1% growth in loans and a 2% rise in deposits, helping diversify ANZ’s financial base.
Net Interest Margin and Dividend Insights
Despite the strong performance, ANZ saw a slight dip in its net interest margin (NIM), falling by 2 basis points to 1.56%. This decline was attributed to factors such as deposit pricing, wholesale funding, and the integration of Suncorp. Nevertheless, ANZ's NIM in the banking sector declined by 6 basis points to 2.38%, reflecting broader market conditions.
The bank’s dividend remains stable at $0.83 per share, providing investors with a steady payout. However, the dividend is partially franked at 70%, which may affect its tax efficiency compared to other large ASX dividend stocks.
For investors following the performance of the ASX200, ANZ’s solid results further reinforce its position within the index, offering potential opportunities for those seeking stability and consistent growth within the Australian banking sector.
ANZ’s impressive profit surge and growth across various divisions position it as a strong player in the ASX200. Investors looking at ASX dividend stocks should keep a close eye on ANZ’s performance, especially in the context of its sustainable profit improvement and diverse revenue streams.
