ANZ has reported a significant rise in its statutory profit after tax for the year ending September 30, 2021. The bank announced a profit of $6,162 million, marking a 72% increase from the previous year. This growth is largely attributed to the partial reversal of credit provisions related to COVID-19.
The bank's cash profit from continuing operations before credit impairment and tax remained stable at $8,396 million compared to last year. ANZ also saw an improvement in its Common Equity Tier 1 Ratio, which increased to 12.3%, while cash return on equity rose to 9.9%.
Shayne Elliott, ANZ's Chief Executive Officer, highlighted the benefits of the bank's diversified portfolio during challenging times. "This year demonstrated the benefits of our diversified portfolio as we provided solid returns for shareholders while also successfully navigating the continuing impacts of COVID-19 on our customers and our people," he said.
In Australia, ANZ experienced growth in retail and commercial lending and customer deposits despite facing challenges in home loan processing. Elliott noted improvements being made in this area: "We have been working on a range of improvements and they are already having a positive impact on processing times."
New Zealand recorded one of its strongest years with an 11% increase in home loans. Elliott attributed this success to improved customer outcomes and past investments: "A focus on improving customer outcomes as well as realising the benefits of prior investments helped New Zealand deliver one of its strongest performances ever."
ANZ's institutional segment maintained consistent performance with sustainable returns exceeding group costs. "Institutional delivered another consistent performance," Elliott commented.
Despite benefiting from a more favorable credit environment, ANZ continues to exercise caution given future uncertainties. Elliott remarked that indicators such as past due payments performed better than expected: "We recognise the outlook remains somewhat uncertain and we have more than $4 billion of credit reserves should conditions deteriorate."
Capital management was also emphasized with a final dividend set at 72 cents per share, resulting in a total dividend for 2021 of 142 cents per share—a substantial increase from the previous year.
ANZ began a $1.5 billion share buyback program in August and plans to continue assessing optimal uses for surplus capital.
Looking ahead, ANZ is investing in digital offerings across various sectors including retail banking in Australia and New Zealand. The bank aims to enhance long-term customer growth through initiatives like ANZx.
Elliott concluded by acknowledging the contributions of ANZ employees: “Finally, I would also like to acknowledge our 40,000 people who have been unwavering in a challenging and at times confronting environment.”
Interviews with executives can be accessed at bluenotes.anz.com.