ANZ Group (ASX: ANZ) 1H FY23 cash profit rises 23%; shares edge higher

Highlights:

• On Friday, ANZ Group Holdings Limited (ASX:ANZ) released its 1H FY23 results ended 31 March 2023.
• In the half-year, ANZ’s cash profit (from continuing operations) increased by 23% to AU$3,821 million from AU$3,113 million in pcp.
• For the interim period, ANZ’s board has announced a 100% franked AU 81 cps, payable on 3 July 2023.

Australia’s second-biggest bank by assets, ANZ Group Holdings Limited (ASX: ANZ), increased 0.213% and was trading at AU$23.150 on Friday, 5 May 2023, at 11:45 am AEST post it published its half-year results ended 31 March 2023.

Let’s get apprised of the ASX banking stock- ANZ in detail.

On Friday, the ASX200 bank stock, in its 1H FY23 results, noted cash profit (from continuing operations) increased by 23% to AU$3,821 million from AU$3,113 million in pcp. ANZ’s statutory operating income for the period rose by 6% to AU$10, 139 million compared to AU$9, 542 million in pcp. However, statutory profit after tax during the half year was 1% down to AU$3,547 million from 2H FY22. CET1 ratio rose 89 basis points to 13.2% from 12.3% in 2H FY22.

In the reported half-yearly period, ANZ’s net interest income grew 20% to AU$8,503 million from AU$7,100 million in pcp. Simultaneously, the bank’s NIM was boosted by 7 bps to 1.75% versus 1.58% in pcp.

For the half-year, ANZ’s board has announced a 100% franked AU 81 cps, payable on 3 July 2023. It goes ex-dividend on 15 May and has a record date of 16 May this year.

Commenting on the half-year results, ANZ’s CEO Shayne Elliott said that achievements in 1H FY23 consisted of forming a new non-operating holding company, concluding the single biggest regulatory program in their past (BS11), making further progress with their application to acquire Suncorp Bank, migrating their complete HR platform to the cloud, and moving further to reinforce their ecosystem strategy, including by increasing Cashrewards and investing in View Media Group.

He further added that Australia retail increased home loans quicker than the market while also steering good progress in deposits. The bank continued the rollout of ANZ Plus, which had AU$6 billion of deposits at April end from more than 250K consumers.

On the outlook front, ANZ’s CEO said that the upcoming six-month period will be more challenging than the previous one since competition in retail banking is as intense as it has ever been in the ANZ region. They understand that sustained higher inflation and interest rates generate additional difficulties for a few households and businesses throughout the economy. While the number of ANZ consumers in difficulty remains minimal, ANZ is all set to provide aid in this potentially difficult period.