ANZ Group Holdings (ASX:ANZ) has released its full-year results for the financial year ending 30 September 2024, showcasing mixed performance metrics against the backdrop of its strategic acquisition of Suncorp Bank. The bank's statutory profit attributable to shareholders fell by 8% to $6.54bn. Its cash profit declined 9% to $6.73bn, which is lower than what some analysts were forecasting. This drop reflects the significant expenses linked to the Suncorp acquisition, which was finalised on 31 July 2024.
Earnings per share (EPS) also reflected the bank’s challenging year. Basic EPS for the full year dropped 8% to 217.9 cents, down from 237.1 cents in 2023. Diluted EPS followed suit, declining by 5% to 215.1 cents compared to 227.4 cents the previous year.
The Suncorp Bank acquisition impacted ANZ’s financials notably through a $244m after-tax credit impairment charge and a $25m after-tax accelerated software amortisation expense. These adjustments were recognised as part of aligning Suncorp’s assets and policies with ANZ's standards. Despite the immediate costs, the acquisition is claimed to strengthen ANZ’s retail and commercial banking capabilities, enhancing customer reach and geographic presence.
Revenue for ANZ held steady at $20.55bn, matching the previous year’s figure. The net interest margin (NIM) for the year slipped from 1.70% to 1.57%, indicating tighter financial conditions. Total operating expenses rose by 6% to $10.74bn, reflecting acquisition-related costs and general inflationary pressures.
Dividends remained a focal point for shareholder returns, with ANZ proposing a final dividend of 83 cents per share, partially franked at 70%, consistent with the interim payout earlier in the year. This brought the total dividend for the year to 166 cents, a modest reduction from the 175 cents distributed in 2023.
CEO Shayne Elliott underscored the importance of the Suncorp Bank integration, stating, “Our strategy is to improve the financial wellbeing and sustainability of customers through excellent services, tools, and insights.” The bank highlighted that the acquisition has already started delivering scale benefits, contributing to the growth in net loans and customer deposits.
ANZ also reported that total assets grew by 11% to $1.23tn, and customer deposits increased 12% to $715.2bn, bolstered by Suncorp’s inclusion.
