ANZ has reported a statutory profit after tax of $2,943 million for the half-year ending March 31, 2021. This represents a 45% increase from the previous half, driven by a net credit provision release of $491 million. However, cash profit for continuing operations before credit impairments and tax was down by 10%, totaling $3,941 million.
The bank's Common Equity Tier 1 Ratio improved to 12.4%, with a cash return on equity rising to 9.7%. ANZ has proposed an interim dividend of 70 cents per share, fully franked.
Shayne Elliott, ANZ Chief Executive Officer, commented on the results: “Work done over the past five years to simplify our operations, strengthen our balance sheet and de-risk the Group helped us deliver a strong result this half.” He highlighted that all parts of the business performed well and noted cost reductions alongside increased investment in digital capabilities.
Elliott also mentioned that "Australia Retail & Commercial had another good half," becoming one of the top home lenders in the market. He acknowledged lower revenues in their Institutional business due to falling interest rates but praised their disciplined focus on credit management.
In New Zealand, ANZ experienced record lending growth combined with disciplined cost management. Elliott emphasized that improving credit conditions allowed for a significant release of provisions during this period.
ANZ’s capital position remains robust with a Common Equity Tier 1 Ratio at approximately 12.5% on a pro-forma basis. The bank continues its Dividend Reinvestment Plan without discounts and plans to neutralize any impact from shares allocated under this plan.
The total provision result included a collective provision release of $678 million and an individually assessed provision charge of $187 million. Despite uncertainties, these releases reflect an improving economic outlook and prudent customer behavior.
Operational highlights include advancements in digital channels and streamlined processes across various sectors such as Australia Retail & Commercial and New Zealand operations. ANZ also introduced new digital services like tracking cross-border payments via its platforms.
Elliott concluded by acknowledging ongoing challenges while expressing confidence in ANZ's financial strength: “ANZ is in a strong position both financially and operationally." He added that efforts to digitize core processes continue at pace with expected visibility towards year-end.
For further details or interviews with executives including Shayne Elliott, visit bluenotes.anz.com.