ANZ Group posted stronger cash earnings for the half-year to March 31, as a sustained program of cost reductions under its ongoing restructuring supported the Australian lender's bottom line.
Profit and income
Cash profit for the six months rose 6% year-on-year to A$3.78 billion. Compared with the prior six months, the figure increased by 70%. Operating income improved slightly to A$11.20 billion.
Expense savings and restructuring
Operating expenses were lower by about A$200 million compared with the same period a year earlier. Management attributed the reduction to measures implemented as part of a major restructuring led by CEO Nuno Matos. That program has included a reshuffle of senior management, additional cost-cutting initiatives, and the completion of the integration of Suncorp Bank.
Management commentary on geopolitical risk
Matos said the impact of the Middle East war on ANZ’s operations had been minimal so far. He cautioned, however, that much of the potential effect remains to be seen, and warned that a sustained interruption to oil flows could increase the chance that the crisis evolves from an inflation issue into a broader supply and growth problem.
Capital and shareholder returns
The bank announced an interim dividend of 83 cents per share. ANZ’s common equity Tier 1 ratio stood at 12.39% as of March 31, up 36 basis points from six months earlier.
The results reflect progress on restructuring goals and improved cost efficiency, while management continues to monitor external risks that could affect inflation, supply chains and economic growth.