ANZ Group said its cash profit for the three months to December 31 rose to A$1.94 billion, an increase of 17% compared with the second-half FY25 quarterly average excluding significant items. The lender attributed the gain to a combination of lower costs, firmer revenue and higher cash returns on equity.
Statutory profit for the quarter was A$1.87 billion, the bank reported. On a capital basis, ANZ's common equity tier 1 (CET1) ratio - a closely watched gauge of capital and spare cash - was 12.15% at December 31, up from 12% at September 30.
ANZ said its shareholders' tangible equity return strengthened noticeably, rising by 1.73 percentage points to reach 11.7% for the period. The bank also highlighted the continued resilience of credit metrics, noting that portfolio losses remain low amid what it described as strong overall credit quality and customer resilience under relatively lower interest rates and unemployment.
Credit metrics reported by ANZ showed non-performing exposures at 0.78% and portfolio losses described as low. Those figures were presented by the bank alongside its profit and capital updates for the quarter. The bank did not provide additional new numerical detail beyond the results and ratios disclosed.
ANZ's announcement reiterated the drivers it singled out for the earnings improvement - lower operating costs, firmer revenue trends and improved cash returns on equity - without adding further forward guidance. The bank's balance-sheet capital position, as measured by CET1, moved higher over the quarter, while key credit indicators remained at low levels.
For currency context in reporting terms, the bank's results statement used an exchange rate of $1 = 1.4033 Australian dollars.
Key takeaways
- ANZ's cash profit for the quarter to Dec. 31 was A$1.94 billion, up 17% from the second-half FY25 quarterly average excluding significant items.
- Statutory profit for the period was A$1.87 billion and the CET1 ratio rose to 12.15% from 12% at Sept. 30.
- Return on shareholders' tangible equity increased by 1.73 percentage points to 11.7%; credit quality remained sound with non-performing exposures at 0.78%.
Context and implications
The results indicate improved profitability driven by expense control and stronger revenue performance, alongside incremental capital buffer expansion. Credit metrics reported as low provide further support to the bank's performance for the quarter, according to the information released.