The ANZ Group Holdings Ltd (ASX: ANZ) share price is under the spotlight after reporting its FY25 result.
FY25 result
Here are some of the highlights from the report for the 12 months to September 2025:
- Operating income grew 5% to $21.9 billion
- Operating expenses soared 20% to $12.9 billion
- Pre-provision profit declined by 10% to $9 billion
- Provision charge up 9% to $441 million
- Cash profit dropped 14% to $5.8 billion
- Statutory net profit down 10% to $5.9 billion
- Underlying cash net profit flat at $6.9 billion
- Final dividend per share flat at $0.83
- Total dividend per share flat at $1.66
ANZ highlighted that excluding significant items totalling $1.1 billion that was announced on 31 October 2025, including ASIC settlement and restructuring charges, cash net profit was flat.
The bank’s net interest market (NIM) – how much profit it’s making on its borrowing in percentage terms – fell to 1.54% in the second half of FY25, down from 1.56% in the first half of FY25 and 1.58% in the second half of FY24.
ANZ highlighted the biggest change in its NIM was due to deposit pricing following RBA rate cuts. Home loan competition was also a (smaller) factor.
Its percentage of non-performing loans rose to 0.79% at September 2025, up from 0.78% at March 2025 and 0.72% at September 2024.
Outlook for the ANZ share price
The bank is going to work on a few initiatives to try to improve profitability in the coming years.
It has a new leadership team to embed the right culture to execute its strategy, It’s going to integrate the acquired Suncorp Bank faster to deliver value, it’s accelerating the delivery of the ANZ Plus digital front-end, it’s reducing duplication and simplifying the organisation (with 3,500 roles exiting the bank), and it’s enhancing its non-financial risk management to improve resilience.
The bank is targeting a cost-to-income ratio in the mid-40s percent by FY28 and sustained through to FY30, including estimated gross cost savings of $800 million to be delivered in FY26 and estimated Suncorp Bank synergies of $500 million with full run-rate synergies realised in FY29.
Banks are finding it hard to grow/maintain market share and it’s also challenging to maintain its profit margins. Costs will be a big focus over the rest of the decade.
I don’t think ANZ shares are an appealing buy at this valuation. If profit isn’t growing then the dividend can’t grow either, there are other ASX dividend shares as opportunities out there.
