ANZ has reported a strong financial performance for the 2022 fiscal year, as highlighted in Chief Financial Officer Farhan Faruqui's speaking notes. The results reflect the company's focus on simplifying its business and managing capital prudently despite operating in a volatile environment.
Faruqui noted that ANZ's cash profit before provisions increased by 7% for the year and 16% for the half-year. This allowed the bank to raise its dividend per share to 74 cents, even with an increased share count due to a capital raise in the fourth quarter. "Since the capital raise, we have delivered a TSR of 20%, demonstrating value for our shareholders," he stated.
The company also reported significant revenue growth, marking its first double-digit increase since 2009. "Revenue growth was driven 50% by volume or transaction-related uplift and 50% by margin benefits," Faruqui explained. Lending margins remained stable across divisions, contributing positively to risk-adjusted lending net interest margin (NIM).
Despite challenges such as inflationary pressures, ANZ maintained disciplined cost management. "We delivered another $260 million over the course of this year through sustainable productivity initiatives," said Faruqui.
Investment spending reached nearly $2.2 billion, focusing on growth and simplification within ANZ Plus and other strategic areas like sustainability and real-time payments. "Our efforts to build a simpler, better bank have positioned us to take advantage of opportunities in a rapidly changing banking landscape," Faruqui remarked.
The company also maintained strong portfolio quality with lower individual provision charges offset by writebacks and recoveries. Its collective provision balance stood at $3.85 billion, well above both base case modelled outcomes and conservative downside scenarios.
ANZ's capital position remains robust with an end-of-period CET1 ratio outcome of 12.3%. The announced acquisition of Suncorp Bank is expected to complete in late calendar year 2023 following successful equity raising efforts amid volatile market conditions.
In closing remarks, Faruqui expressed confidence in navigating future uncertainties while continuing investments towards building resilience within ANZ’s franchise: "We are confident in...strengthening our balance sheet...and managing our exposures conservatively."