ANZ Group Holdings Limited Analysis

Overview

ANZ traces its origins to the Bank of Australasia, which opened its first office in Sydney in 1835 having been originally established in the United Kingdom by Royal Charter that year. The bank established a Melbourne office in 1838, where ANZ's world headquarters is located today at 833 Collins Street, Melbourne.

ANZ presently operates in more than 32 markets across Australia, New Zealand, Asia, Pacific, Europe, America and the Middle East. It provides a wide range of products and services, principally comprising banking, financial markets and other financial products and services for retail (personal and private bank) and business (small and medium business, corporate and institutional) customers. ANZ’s main business divisions comprise Australia Retail (servicing retail customers across Australia), Commercial (servicing business and private banking customers across Australia), Institutional (servicing global institutional and business customers across multiple markets) and New Zealand (servicing retail and commercial/business customers across New Zealand).

Performance

The following information was extracted from ANZ Group Holdings Limited's Annual Report, released 10 November 2025

Financial Performance:

ANZ today announced a Statutory Profit for the full year ended 30 September 2025 of $5,891 million, down 10% on the prior year, and a Cash Profit1 of $5,787 million. ANZ’s Common Equity Tier 1 Ratio was 12.0%, Cash Return on Equity 8.1% and Cash Return on Tangible Equity 8.8%

Cash profit attributable to shareholders of the Company decreased $938 million (14%) compared with 2024.

Net interest income increased $1,892 million (12%) driven by a $136.1 billion (13%) increase in average interest earning assets, partially offset by a 2 bps decrease in net interest margin. The increase in average interest earning assets was driven by the acquisition of Suncorp Bank, lending growth, higher Markets activities, and higher cash and liquid assets. The decrease of 2 bps was driven by unfavourable assets and deposit pricing, and unfavourable wholesale funding impact, partially offset by higher earnings on capital and replicating portfolio, and favourable impact from Suncorp Bank acquisition.

Other operating income decreased $802 million (17%) driven by a decrease of $454 million in the Markets business unit from lower trading gains across Rates, Credit and Commodities, a $285 million decrease from impairment of PT Bank Pan Indonesia Tbk (PT Panin), and a $72 million decrease in net fee and commission income mainly from the Institutional (excluding Markets business unit) division.

Operating expenses increased $2,139 million (20%) driven by the impact of Suncorp Bank acquisition, staff redundancies from operating model changes, ASIC settlement, Suncorp Bank accelerated migration, and Cashrewards goodwill impairment, partially offset by productivity initiatives.

Credit impairment increased $35 million (9%) driven by a $183 million increase in individually assessed credit impairment, partially offset by a $148 million decrease in collectively assessed credit impairment driven by the Suncorp Bank acquisition related collectively assessed credit impairment charge of $244 million in 2024, partially offset by the higher collectively assessed credit impairment charge in 2025.