ANZ Group Holdings Limited delivered its strongest half-year revenue and profit to date, buoyed by the full contribution from Suncorp Bank and a robust capital position despite regulatory challenges.
- Record half-year revenue of $11 billion, up 5% from prior half
- Cash profit increased 12% to $3.57 billion
- First full half earnings contribution from acquired Suncorp Bank
- Entered enforceable undertaking with APRA, including $250 million operational risk capital overlay
- Digital platforms ANZ Plus and Transactive Global show strong customer growth and engagement
Strong Financial Performance and Strategic Growth
ANZ Group Holdings Limited has reported a record first half for the 2025 financial year, with revenue reaching $10.995 billion, a 5% increase over the previous half, and cash profit climbing 12% to $3.568 billion. This performance was underpinned by the first full half-year earnings contribution from Suncorp Bank, acquired in July 2024, which has added significant scale and diversification to ANZ’s Australian retail and commercial banking operations.
The bank's return on equity improved to 10.2%, with earnings per share rising 13% to 120.1 cents, reflecting both operational strength and effective capital management. The interim dividend was maintained at 83 cents per share, partially franked at 70%, signaling confidence in ongoing profitability and shareholder returns.
Regulatory Compliance and Risk Management
Amid these positive financial results, ANZ disclosed it entered into a court enforceable undertaking with the Australian Prudential Regulation Authority (APRA) concerning non-financial risk management and risk culture across the Group. This agreement includes an additional $250 million operational risk capital overlay, underscoring the bank’s commitment to strengthening its risk frameworks and embedding cultural improvements.
Despite this regulatory scrutiny, ANZ’s capital position remains robust, with an APRA Level 2 Common Equity Tier 1 (CET1) ratio of 11.8%, comfortably above APRA’s operating range. The bank continues to manage risk prudently, supported by disciplined cost control and a diversified loan portfolio with strong credit quality metrics.
Digital Innovation Driving Customer Engagement
ANZ’s digital platforms, notably ANZ Plus and ANZ Transactive Global, have demonstrated strong momentum. ANZ Plus surpassed one million customers, with deposits exceeding $21 billion, while Transactive Global continues to expand its institutional payments and cash management services, supporting increased transaction volumes and customer integration.
These platforms are central to ANZ’s strategy to deliver a resilient, low-cost, and agile banking experience, deepening customer engagement and enhancing financial wellbeing tools. The bank’s focus on digital innovation is also reflected in improved customer satisfaction scores and expanded product offerings, including flexible savings and home loan solutions.
Suncorp Bank Integration and Synergies
The integration of Suncorp Bank is progressing, with the acquisition contributing $1.646 billion in net profit after tax for the half year. Suncorp’s retail and commercial lending and deposit bases have grown, supporting ANZ’s funding and margin objectives. The bank is focused on delivering synergies and preparing for a future migration of systems, aiming to leverage combined capabilities to enhance competitive positioning in the Australian market.
Sustainability and ESG Commitments
ANZ continues to advance its environmental, social, and governance (ESG) agenda, reporting progress against ambitious climate-related targets and social financing commitments. The bank has facilitated over $21 billion in social and environmental activities since the target commenced, including investments in affordable housing and support for sustainable business practices. ANZ’s ESG disclosures highlight ongoing efforts to manage climate risks and support customers’ transition to low-carbon operations.
Bottom Line?
ANZ’s record half-year results and strategic initiatives position it well for future growth, but the APRA undertaking and integration challenges warrant close investor attention.
Questions in the middle?
- How will ANZ’s risk culture reforms under the APRA undertaking impact operational resilience?
- What are the timelines and expected costs for fully integrating Suncorp Bank’s systems?
- How will evolving capital requirements, including the phase-out of AT1 instruments, affect ANZ’s capital strategy?