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Highlights
- ANZ (ANZ) delivers $3.57 billion cash profit, just above forecasts
- Margins remain tight despite strong lending and deposit growth
- Interim dividend holds steady at 83 cents per share
Australia and New Zealand Banking Group (ASX:ANZ) reported a half-year cash profit of $3.57 billion for the six months ending 31 March 2025, narrowly surpassing both last year’s $3.55 billion and analyst expectations. However, the market reaction was lukewarm, with shares slipping nearly 2% in early trading, reflecting investor concerns about ongoing margin pressure.
The banking giant's revenue rose to a record $11 billion, supported by higher lending activity and the integration of Suncorp Bank. This result places ANZ among the notable names in the current landscape of major ASX dividend stocks, a key area for income-focused portfolios. The interim dividend was held at 83 cents per share, matching both last year’s payout and broader market expectations.
Despite these solid topline figures, the underlying story reveals the challenges facing traditional lenders. ANZ’s net interest margin – a key profitability measure for banks – dipped slightly to 1.56% from 1.58% in the second half of the previous year. This drop reflects the continued impact of intense competition in the lending market and rising deposit costs.
The performance was supported by strong momentum across all core business units. Home loan volumes increased, and commercial and institutional divisions also contributed to the growth in both lending and deposits.
In a statement accompanying the results, outgoing CEO Shayne Elliott acknowledged the strength of the bank's balance sheet but noted that uncertainty remains in the global financial environment. He pointed to the potential for periods of increased market volatility ahead, but expressed confidence in ANZ’s ability to navigate changing conditions, thanks to its diversified portfolio and strong capital position.
The leadership baton now passes to incoming CEO Nuno Matos, who inherits a bank that is well-positioned, but operating in a more complex and competitive environment than ever. With ANZ being a key component of the broader ASX200, its performance offers insight into the overall health of the Australian banking sector and broader economy.
As part of the evolving landscape of ASX dividend stocks, ANZ remains a closely watched entity, especially for those tracking stable income-generating opportunities amid fluctuating market dynamics.
