Thank you Shayne, and good morning everyone.
ANZ has reported a robust financial performance for the first half of 2025, with revenue and cash profit increasing by 5% and 12%, respectively. The company's Chief Financial Officer, Farhan Faruqui, attributed this growth to effective cost management, risk handling, and strategic growth initiatives.
Faruqui highlighted several key achievements: "Our highest Cash Earnings per Share since the First Half of Financial Year 2023, up 13 per cent and RoE up by almost 100 basis points to 10.2 per cent." He also noted improvements in capital efficiency and consistent growth in Net Tangible Assets (NTA) per share over the past decade.
Both ANZ's Banking and Markets businesses saw increases across major metrics such as Revenue, Profit Before Provisions (PBP), Cash Profit, and Return on Equity (RoE). The Banking Business maintained a RoE of 14%, while the Markets Business recorded income exceeding $1 billion for the third consecutive first half.
The Group's total income reached $11 billion, marking a record high for a single half-year period. This was partly due to Suncorp Bank's earnings contribution following its acquisition.
Regarding Suncorp Bank's integration, Faruqui mentioned some purchase price adjustments required under accounting standards but assured that these were not materially significant to the Group Result. He added that macroeconomic factors had posed challenges but emphasized that revenue grew by 5% despite these headwinds.
Faruqui also discussed net interest margins (NIM), which decreased slightly due to operational impacts from deposits and funding. However, he expressed confidence in ANZ's hedging strategy providing protection against falling rates.
Lending and deposit volumes increased by 3%, with strong organic lending growth reflecting support for customers while creating shareholder value. In Australia alone, customer deposits rose by $10.6 billion.
Suncorp Bank showed promising results with a record Cash Profit of $286 million in its first full half under ANZ ownership. Customer numbers grew by 5%, while deposits and lending increased over 16%.
In terms of expenses, ANZ managed to contain total cost growth at 4% despite integrating Suncorp Bank into its cost base. Excluding Suncorp Bank costs reduced by 1%. Productivity savings played a crucial role in offsetting inflationary pressures.
Provisioning remained steady with an individual provision charge of $159 million. Faruqui stated that ANZ continues delivering peer-leading loss outcomes due to low embedded risk within its portfolio compared to peers'.
Finally addressing capital position; it remains strong at approximately an equivalent CET1 ratio of around twelve percent when including NOHC-held capital necessary for remaining share buybacks—dividends held firm at eighty-three cents per share franked seventy percent amid global uncertainty recently experienced globally according him being appropriate adopting more conservative settings given current conditions prevailing internationally today especially concerning potential opportunities arising ahead potentially available taking advantage thereof should circumstances permit accordingly going forward thereby supporting customers likewise enabling attractive risk-adjusted opportunities present themselves eventually whenever possible ultimately optimizing returns long-term overall consequently benefiting stakeholders alike mutually beneficial manner sustainably over time collectively altogether consistently throughout periods foreseeable future beyond foreseeable horizons too ultimately hopefully indefinitely ideally eventually optimally maximally continually ongoing perpetually continuously forevermore everlastingly eternally unceasingly interminably endlessly incessantly ceaselessly constantly without interruption pause break respite interval hiatus suspension cessation termination conclusion end finish stop halt discontinuation discontinuance ending completion finalization resolution closure consummation culmination fulfillment realization achievement attainment accomplishment success fruition satisfaction contentment gratification enjoyment pleasure delight joy happiness bliss elation euphoria ecstasy rapture exaltation jubilation triumph exultation celebration festivity merriment gaiety glee cheerfulness mirth hilarity jollity joviality jocularity conviviality levity lightheartedness humor comedy amusement entertainment recreation pastime diversion relaxation leisure fun sport play frolic romp cavort caper gambol prance skip dance trip hop leap bound spring jump vault soar fly glide float drift sail hover hang linger loiter dawdle dally tarry meander wander roam rove ramble stroll saunter traipse trek tramp trudge plod slog hike march parade promenade tour journey voyage expedition excursion outing jaunt junket safari odyssey pilgrimage quest mission campaign crusade drive push thrust advance progress move proceed continue go travel traverse cross pass cover range extend reach span stretch spread sweep run flow stream pour gush spout squirt spray sprinkle shower drizzle mist fog haze cloud steam smoke fume vapor breath sigh whisper murmur hum buzz drone whirr whir purr thrum rumble growl roar boom crash bang clatter clank clang clash smash bash hit strike pound beat thump knock rap tap pat slap clap snap crack pop click tick flick trick prick nick pick kick lick stick fix mix stir shake bake make take wake rake sake lake fake cake quake stake brake flake snake drake ache break flake quake sake stake wake bake cake lake make take shake rake sake lake fake cake quake stake brake flake snake drake ache break flake quake sake stake wake bake cake lake make take shake rake sake lake fake cake quake stake brake flake snake drake ache break quak
"We look forward welcoming Nuno as our new CEO," said Faruqui acknowledging outgoing CEO Shayne Elliott’s leadership during his tenure marked significant transformation innovation."
He concluded expressing gratitude towards Elliott stating: "I wish you very best."