ANZ’s (NZX:ANZ) FY22 cash earnings jump 5% to AU$6.5B

Australia and New Zealand Banking Group (NZX: ANZ, ASX: ANZ) announced its full-year results till 30 September 2022 today (27 October 2022). It reported a 16% jump in its statutory profit after tax to AU$7,119 million. Cash earnings from continuing operations were at AU$6,515 million, up 5%, while its profit before credit impairment and tax was up 7% at AU$8,968 million.

As per the update, all metrics showed an improvement over previous year.

Shayne Elliott, ANZ's CEO, expressed happiness over the result and said that all divisions performed well. He said that the bank was able to restore momentum in the home loan segment in the Australian market. In New Zealand also, it maintained a lead in the key segments.

Key highlights of ANZ’s performance in FY22

• In FY22, ANZ started its partnership with Worldline, which will provide business customers with leading, point-of-sale, and online payment technology.
• ANZ is in the process of acquiring Suncorp Bank, subject to regulatory approvals. Once acquired, it will provide a platform for growth, particularly in Queensland.
• As per ANZ, Suncorp is a well-run business that will see one million retail customers join ANZ as it provides a wider range of products and services.
• As per the update, the acquisition will be partially funded by AU$3.5 billion equity capital raising. 

Divisional highlights

Australia

The release said that in Australian Retail, there was good momentum in the second half of the year. Profits were up 6%. 

In the commercial segment, profits increased by 11%, and revenue was up 10% with growth in volume. Net loans and advances grew in particular segments like agribusiness and health.

Further, in the institutional segment also, revenue was up 2% Y-o-Y driven by customer demand.

New Zealand

In New Zealand, ANZ kept up its lead in market share in key products. It reached the final stage of BS11, one of the largest compliance programs. 

Dividend

ANZ announced a final dividend of 74 cents per share (CPS), consistent with the stated dividend payout ratio of 60% and 65%. This brings the full-year dividend to 146 cps compared to 142 cps last year.

Outlook

For the future, the bank stated that it was a period of uncertainty globally with central banks trying to control inflation. The Russia-Ukraine war also continues to affect global economy. However, RBA data shows that balance sheets of average Australians and New Zealanders are sound, but with the cost of living rising, next few months could be testing, the update said.

Stock update

On 27 October 2022, the stock was trading down 3.74% to NZ$27.760, at the time of writing this article.