ANZ has reported an unaudited statutory profit of $1,327 million for the third quarter ending June 30, 2020. The bank also recorded an unaudited cash profit from continuing operations amounting to $1,498 million.
Following a previously deferred decision on interim dividends in April 2020, ANZ's Board has proposed a fully franked interim dividend of 25 cents per share.
ANZ Chief Executive Shayne Elliott commented on the performance amid challenging times: "Our performance during these difficult times demonstrates the strength of our portfolio as we balance the need to support customers and our staff through this global pandemic while also providing a fair return for shareholders."
He added that despite ongoing challenges, the company is well-positioned due to its quick response and adaptation to new conditions. "I’m proud of how our people have worked hard to not only support our customers but also the broader economy," Elliott stated.
The bank saw growth in home loans in Australia and strong deposit growth. Its markets business increased by 60% compared to the first half quarterly average due to strong customer flows and underlying volatility. Additionally, there was a reduction in risk-weighted assets from ANZ's International business.
Elliott noted efforts towards simplification with transactions such as selling UDC in New Zealand and off-site ATM fleet in Australia. He expressed confidence that regions like Australia and New Zealand are positioned for economic recovery: "There will be more challenges along the way, however I’m confident Australia, New Zealand and the key Asian countries where we operate are well placed to lead a global economic recovery."
On dividends and capital, ANZ announced plans for a fully-franked interim dividend payable on September 30, 2020. Chairman David Gonski emphasized balancing shareholder needs with economic uncertainties: “We know many of our shareholders rely on dividends.”
ANZ continues supporting customers affected by COVID-19 with packages allowing up to six-month loan repayment deferrals. As of July 31, ANZ had deferred around $31 billion worth of home loans in Australia.
The total provision charge for June was $500 million following $1,674 million at the first half. This includes individual provision charges and collective provision charges aimed at strengthening credit reserves.
An interview with CEO Shayne Elliott discussing this update is available at bluenotes.anz.com