ANZ has reported a Statutory Profit after tax of $3.58 billion for the year ending September 30, 2020, representing a decline of 40% from the previous period. The Cash Profit from continuing operations stood at $3.76 billion, marking a decrease of 42%.
The downturn was largely attributed to credit impairment charges totaling $2.74 billion, which increased due to COVID-19 impacts and an impairment in Asian associates amounting to $815 million.
Despite these challenges, ANZ's Common Equity Tier 1 Capital Ratio remained robust at 11.3%, though Return on Equity fell to 6.2%. The bank proposed a fully-franked final dividend of 35 cents per share.
Shayne Elliott, ANZ Chief Executive, stated: “We could never have forecast 2020, a year that started with devastating bushfires in Australia and unwound with the waves of a pandemic that continues today." He added that the bank entered the year with strong financials and is committed to supporting customers through tough times.
Elliott highlighted growth in targeted home loan segments and an accelerated shift towards online banking as key achievements during this period. He noted: "In Australia, we achieved strong growth in our targeted home loan segments... Deposits remained strong."
Institutional performance was bolstered by market volatility leading to heightened activity in Markets sectors. Elliott emphasized ANZ’s readiness to assist customers as global economic conditions improve.
In New Zealand, where COVID-19 is contained, Elliott pointed out ANZ’s position for economic recovery despite revenue challenges from low interest rates and simplified fees.
Outgoing Chairman David Gonski remarked on maintaining capital strength without equity raises that could dilute shareholders' stakes: “The Board is pleased capital ratios are largely unchanged from a year ago."
ANZ has continued its Dividend Reinvestment Plan (DRP) and Bonus Option Plan (BOP) without discounts for the final dividend payment scheduled for December 16, 2020.
Regarding COVID-19 support measures, ANZ provided options for loan repayment deferrals up to six months for affected retail and commercial customers across Australia and New Zealand.
For credit quality management, total provision charges were reported at $1,064 million in the second half of the year following earlier provisions totaling $1,674 million.
Concluding his remarks on future outlooks amid uncertainty brought by past events over twelve months, Elliott expressed confidence: “ANZ has an experienced and stable management team... We are well placed to respond to opportunities emerging.”
The Group's Annual Report will be released on November 9th including KPMG's audit report detailing these unaudited financial results currently under review.