The ANZ Group Holdings Ltd (ASX: ANZ) share price is under the spotlight after the ASX bank share reported its FY25 half-year result.
ANZ FY25 half-year result
Here are some highlights from the HY25 result to 31 March 2025 compared to the second half of FY24:
- Revenue increased 5% to $11 billion
- Expenses rose 4% to $5.74 billion
- Cash profit before credit impairment and tax up 6% to $5.25 billion
- Cash profit up 12% to $3.57 billion
- Statutory net profit jumped 16% to $3.64 billion
- Dividend per share flat at $0.83
ANZ reported that its overall credit impairment charges reduced by 57% to $145 million, which was a significant part of the company’s profit improvement. Total gross loans and advances increased by 2% to $824 billion, while customer deposits increased 6% to $756.6 billion.
ANZ said its Australian retail division delivered loan growth of 3%, which was the same speed of the overall loan system. It delivered customer deposit growth of 4% for the half. Individually assessed credit impairment loss rates remained “stable” at 3 basis points.
In the Australian commercial division, it reported deposit growth of 3%, while lending growth ended the FY25 first half growing at the pace of the overall loan system.
The institutional division experienced “strong growth”, with deposit and core lending growth of 4%.
New Zealand operations saw loan growth of 2% and customer deposit growth of 3%.
In the newly acquired Suncorp segment, it delivered net loan growth of 1% and customer deposit growth of 2%.
Net interest margin (NIM)
The NIM tells investors how much profit a bank is making on its lending, which includes both the loan rate and the rate of its costs (such as term deposits and savings accounts).
ANZ reported that its HY25 NIM reduced by 2 basis points (0.02%) to 1.56%, compared to 1.58% in the FY24 second half.
The banking NIM suffered a 6 basis point (0.06%) decline during the six months of HY25 to 2.38% as a result of deposit pricing, wholesale funding and the inclusion of Suncorp.
The ANZ dividend of $0.83 is partially franked at 70%, so the payout is not quite as tax-effective as other large dividend payers.
Final thoughts on the ANZ share price
The bank said it was going to adopt slightly more conservative capital settings amid the global uncertainty, including having the flexibility to adjust the pace of its remaining $800 million (of $2 billion) share buyback.
ANZ’s CEO Shayne Elliott is handing over to Nuno Matos, so it’ll be interesting to see how the bank performs under new leadership.
For me, ANZ shares would only be attractive as a longer-term investment if earnings can continue rising at a decent pace, which is impossible to know ahead of time. There are other ASX dividend shares I’d rather buy.
