ANZ Banking (NZX:ANZ): What are its priorities for FY22?

Highlights

• ANZ announced a 72% rise in statutory profit after tax and provided solid returns to shareholders in FY21.
• ANZ’s NZ business fared strongly with a solid balance sheet momentum.
• The Group remains well positioned to respond to the COVID-19 impact.
  

Australia and New Zealand Banking Group Limited (NZX:ANZ) (ASX:ANZ) announced its full-year results on 28 October 2021. The Group reported a 72% rise in statutory profit after a tax of $6.16 billion and a flat cash profit from continuing operations at $8.39 billion for the year ended 30 September 2021 compared to previous year.

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ANZ provided solid returns and successfully steered through the continued impact of COVID-19 on customers. The Group’s capital management stayed a feature with Common Equity Tier 1 Ratio stood at 12.3%, remaining $6 billion above APRA’s undeniably strong target.

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ANZ also commenced a buyback of $1.5 billion shares on-market in August, reflecting its ability to support customers and return surplus capital in a prudent manner. ANZ also announced a final dividend of 72cps, taking the total dividend to 142cps for 2021.

ANZ benefitted from diversified portfolio

ANZ is making continued progress on its transformation. The Group has been investing in cloud migration, digitisation and group-wide automation to facilitate sustainable and low-cost customer growth.

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In Australia, ANZ is building growth-focused retail and small business schemes centred on providing powerful digital offerings that will enhance the financial health of customers and propel long-term revenue and customer growth. These investments are expected to become more visible in 2022.

The Group’s New Zealand business witnessed one of the strongest years with a focus on developing customer outcomes as well as realising advantages of prior investments.

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ANZ’s institutional business also reported consistent performance, suggesting advantages of a more diversified franchise. The business stands in a strong position to gain from structural tailwinds that may affect institutional banking.

ANZ has also been functioning in the sustainability business since it emerged and remains on target to provide $50 billion worth of sustainable finance solutions by 2025.

ANZ continues to invest in new projects at a record speed to create a stronger foundation for future growth. The Group benefitted from a more benign credit environment, indicators like 90+ days past due and deferrals fared better than expected and indicated sensible management over many years.

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On 28 October, ANZ ended the trading session at $29.72, down 0.9% from its previous close.

Outlook

As per ANZ Chief Executive Officer Shayne Elliot, the real impact of COVID-19 will not be understood fully until at least the end of 2022. However, the Group remains well placed to respond to the pandemic impact.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)