ANZ Bank New Zealand Limited Analysis

Overview

Refer to www.anz.co.nz/about-us/media-centre/investor-information/ for ANZ Bank New Zealand Limited's (ANZB) disclosure statement and information on ANZB bonds and notes.

Performance

The following information was extracted from ANZ Group Holdings Limited's full year results, released 10 November 2025

ANZ New Zealand1 (ANZ NZ) today reported a cash2 net profit after tax (NPAT) of $2,369 million for the 12 months to 30 September 2025, up 4% on the prior year.

Statutory NPAT, was $2,532 million, increasing by 21% over the same period. The increase was largely driven by gains of $163 million from economic hedges, compared to losses of $195 million in the 12 months to 30 September 2024.

Key points:

All comparisons are against the 12 months to 30 September 2025 and on a cash basis unless noted otherwise

• Cash profit of $2,369 million, up 4%

• Statutory profit of $2,532 million, up 21% - increase driven by gains from economic hedges. ANZ NZ uses economic hedges to manage interest rate and foreign exchange risks. Gains and losses from these hedges reverse over time

• Revenue up 2% reflecting lending and deposit growth

• Expenses up 3% driven by inflationary impacts

• Credit impairment release of $25 million, compared to a charge of $44 million for FY24

• Customer deposits up 5% and gross loans and advances up 4%

• Funds under management up 6% to $41.9 billion

ANZ Bank New Zealand (ANZ Bank NZ) Chief Executive Officer Antonia Watson said banks were a reflection of the economies they operate in, and the result showed New Zealand was turning the corner.

“It has taken New Zealand longer than hoped to recover from the post-Covid rebalancing, but there are now signs the nation’s economy is finally picking up.

“Global uncertainty hasn’t helped but we expect lower inflation and falling interest rates to flow through and boost the recovery as we head into the new year.

“Confidence is returning, particularly in regional areas. However, Auckland and Wellington, because of the mix of their economies, will take longer to feel the improvement.”

With households and businesses strengthening their balance sheets, house prices stabilising, and interest rates significantly lower, Ms Watson said the stage was set for a cyclical recovery to complement New Zealand’s strong agriculture sector performance.

“If we don’t have any significant events, we expect the economy - driven by rural New Zealand - to be heading back to pre-Covid levels late in 2026, with the uplift when it comes likely to be broad-based.”

Like many businesses, ANZ Bank NZ’s costs rose faster than its earnings during the year, but the results demonstrated the bank remained well-managed, delivering a solid performance.