The ANZ Group has reported its 2022 half-year financial results, showcasing a disciplined execution of strategy across its diverse business portfolio. Chief Financial Officer Farhan Faruqui highlighted the company's achievements in a recent presentation in Sydney.
In Australia, ANZ's home loans sector returned to balance sheet growth after a challenging year. The institutional division experienced targeted volume growth and increased risk-adjusted lending margins. However, despite strong performance from the Markets customer franchise, total Markets revenue declined due to lower balance sheet trading income.
ANZ's New Zealand operations saw robust home loan growth and effective portfolio management. Investments were made in modernizing technology and data architecture to enhance productivity and market speed. "We have proven our ability to manage ‘run the bank’ costs well… which are flat again…despite heightened inflationary pressures," said Faruqui.
The Group Net Interest Margin (NIM) decreased by 6 basis points during the half-year period, attributed to competitive pricing in home loans within Australia and New Zealand. However, ANZ expects potential tailwinds from rising interest rates which could benefit their capital and replicated deposit portfolios.
In terms of expenses, ANZ maintained disciplined cost management with constant currency basis costs remaining flat despite inflationary pressures. The bank also continued investing heavily in technology simplification and growth initiatives.
Faruqui emphasized sustainability as both a responsibility and opportunity for ANZ: "We were the first Australian bank to join the Net-Zero Banking alliance." The institution aims for $50 billion in sustainability funding by 2025.
Looking ahead, ANZ plans further enhancements with its digital platform ANZ Plus and will continue focusing on growth strategies while maintaining discipline on risk management amid volatile conditions.